Document:

exv10w2

 

EXHIBIT 10.2

INDUSTRIAL BUILDING LEASE

LANDLORD:

ARTHUR/BUSSE LIMITED PARTNERSHIP, an Illinois limited partnership, and

300 EAST TOUHY LIMITED PARTNERSHIP, an Illinois limited partnership

TENANT:

JOHN B. SANFILIPPO & SON, INC., a Delaware corporation

LEASED PREMISES:

16435 Interstate Highway 35 North, Selma, Texas 78154

 

 

INDUSTRIAL BUILDING LEASE

     THIS LEASE is made this 20th day of September, 2006, by and between ARTHUR/BUSSE
LIMITED PARTNERSHIP, an Illinois limited partnership, and 300 EAST TOUHY LIMITED PARTNERSHIP, an
Illinois limited partnership (collectively, “Landlord”), and JOHN B. SANFILIPPO & SON, INC., a
Delaware corporation (“Tenant”), who hereby mutually covenant and agree as follows:

ARTICLE I

GRANT, TERM, DEFINITIONS AND BASIC LEASE PROVISIONS

     Section 1.1 Grant. Landlord, for and in consideration of the rents herein reserved and of the
covenants and agreements herein contained on the part of Tenant to be performed, hereby leases to
Tenant, and Tenant hereby lets from Landlord, the real estate consisting of approximately 49.801
acres, commonly known as 16435 Interstate Highway 35 North, Selma, Guadalupe County, Texas, and
legally described on an exhibit which is attached hereto, identified as Exhibit A, together
with all improvements now located thereon (consisting of approximately 327,155 rentable square feet
in area), or to be located thereon during the term of this Lease, together with all appurtenances
belonging to or in any way pertaining to the said premises (such real estate, improvements and
appurtenances hereinafter sometimes jointly or severally, as the context requires, referred to as
“Leased Premises”).

     Section 1.2 Term. The term of this Lease shall commence on September 19, 2006 (hereinafter
sometimes referred to as “Commencement Date”), and shall end on September 18, 2016 unless sooner
terminated or extended as herein set forth.

     Section 1.3 Agent. As used in this Lease, the term “Agent” shall mean the agent of Landlord.
Until otherwise designated by notice in writing from Landlord, Agent shall be Mathias Valentine.
Tenant may rely upon any consent or approval given in writing by Agent or upon notice from Agent or
from the attorneys for Agent or Landlord.

     Section 1.4 Basic Lease Provisions. Annual Base Rent (See Section 4.1): From the
Commencement Date through the date which is the day immediately prior to the fifth (5th)
anniversary of the Commencement Date, $4.00 per rentable square foot of the Leased Premises per
year; thereafter, the amount per rentable square foot of the Leased Premises per year determined
pursuant to Section 4.3 below.

     (a) Payee (See Section 4.1): Arthur/Busse Limited Partnership — 65% and 300 East
Touhy Limited Partnership – 35%.

     (b) Payee’s Address (See Section 4.1 and Section 4.2): 2299 Busse Road, Elk
Grove Village, IL 60007.

     (c) Form of Insurance (See Article VI): The insurance specified in Section 6.2 shall
comply with the provisions of Section 6.3.

     (d) Tenant’s Address (for notices) (See Section 21.4):

 

 

John B. Sanfilippo & Son, Inc.

1703 North Randall Road

Elgin Illinois 60123

     (e) Landlord’s Address (for notices) (See Section 21.4): 2299 Busse Road, Elk Grove
Village, IL 60007.

     (f) Broker(s) (See Section 21.12): None.

ARTICLE II

POSSESSION

     Section 2.1 Possession. Tenant acknowledges that Tenant has been in possession of the Leased
Premises prior to the execution of this Lease, and Tenant accepts the Leased Premises in an “AS
IS-WHERE IS” condition and “WITH ALL FAULTS” as of the Commencement Date of this Lease.

ARTICLE III

PURPOSE

     Section 3.1 Purpose. The Leased Premises shall be used and occupied for any lawful purpose,
provided that no such use shall (a) violate any certificate of occupancy or law, ordinance or other
governmental regulation, or any covenants, conditions or restrictions of record, in effect from
time to time affecting the Leased Premises or the use thereof, (b) cause injury to the
improvements, (c) cause the value or usefulness of the Leased Premises or any part thereof to
diminish, (d) constitute a public or private nuisance or waste, (e) authorize Tenant to use, treat,
store or dispose of hazardous or toxic materials on the Leased Premises, or (f) render the
insurance on the Leased Premises void or the insurance risk more hazardous.

     Section 3.2 Prohibition of Use. If the use of the Leased Premises should at any time during
the Lease term be prohibited by law or ordinance or other governmental regulation, or prevented by
injunction, this Lease shall not be thereby terminated, nor shall Tenant be entitled by reason
thereof to surrender the Leased Premises or to any abatement or reduction in rent, nor shall the
respective obligations of the parties hereto be otherwise affected.

ARTICLE IV

RENT

     Section 4.1 Annual Base Rent. Beginning with the Commencement Date, Tenant shall pay Annual
Base Rent as set forth in Section 1.4(a) hereof payable monthly in monthly installments.
Annual Base Rent, additional rent and other charges payable hereunder (all of which are deemed to
be and are collectively referred to as “Rent”) shall be paid to or upon the order of Payee at the
Payee’s Address. Landlord shall have the right to change the Payee or the Payee’s Address by
giving written notice thereof to Tenant.

     Section 4.2 Penalty and Interest on Late Payments. Each and every installment of Rent which
shall not be paid within ten (10) business days after the date the same is due shall be subject to
an immediate late payment penalty equal to one percent (1%) of the amount of the

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installment past
due. In addition, each and every installment of Rent which shall not be paid when due shall bear
interest at a rate per annum equal to two percent (2%) in excess of the announced base rate of
interest of the Chicago branch of LaSalle Bank National Association in effect on the due date of
such payment, from the date which is five (5) business days after the date the same is payable
under the terms of this Lease until the same shall be paid.

     Section 4.3 Increases to Annual Gross Rent. Beginning on the fifth (5th) anniversary of the
Commencement Date, the Annual Base Rent shall increase by the CPI Factor (as hereinafter defined);
provided, however, in no event shall the Annual Base Rent exceed $4.80 per rentable square foot of
the Leased Premises per year. Landlord shall deliver to Tenant written notice setting forth the
amount of the Annual Base Rent and method of calculation at least thirty (30) days prior to the
fifth anniversary of the Commencement Date. For purposes of this Lease, “CPI Factor” shall mean a
fraction having as its numerator the CPI (as hereinafter defined) most recently announced for the
month of December, 2010 and as its denominator the CPI announced for the month of December, 2005.
For purposes of this Lease, “CPI” shall mean the Consumer Price Index for all Urban Consumer
(CPI-U), All Items, ___(1982 — 1984 equals 100), published by the United States Department of
Labor, Bureau of Labor Statistics. If such index is no longer published, the CPI shall mean a
comparable index selected by Landlord and approved by Tenant in its reasonable discretion.

ARTICLE V

IMPOSITIONS

     Section 5.1 Payment by Tenant. Tenant shall pay as additional rent for the Leased Premises,
all taxes and assessments, general and special, water rates and all other impositions, ordinary and
extraordinary, of every kind and nature whatsoever, which may be levied, assessed, charged or
imposed, and whether accrued prior to or during the term of the Lease, upon the Leased Premises,
or any part thereof, or upon any improvements at any time situated thereon, including without
limitation, any
assessment by any association of owners of property in the complex of which the Leased
Premises are a part (“Impositions”); provided, however, that Impositions levied against the Leased
Premises shall be prorated between Landlord and Tenant as of the expiration of the Lease term for
the last year of the Lease term (and Tenant’s share of said final year Impositions shall be paid by
Tenant upon such expiration based on Landlord’s reasonable estimate thereof, subject to reproration
upon actual receipt of final tax bills, invoices, etc.). Tenant may take the benefit of the
provisions of any statute or ordinance permitting any assessment to be paid over a period of years,
and Tenant shall be obligated to pay only those installments falling due during the term of this
Lease. Tenant acknowledges that Tenant assumes full responsibility for the prompt payment when due
of all taxes, assessments and other Impositions which have accrued prior to the Commencement Date,
and Tenant shall pay such taxes promptly when due.

     Section 5.2 Alternative Taxes. If at any time during the term of this Lease the method of
taxation prevailing at the commencement of the term hereof shall be altered so that any new tax,
assessment, levy, imposition or charge, or any part thereof, shall be measured by or be based in
whole or in part upon the Lease, or the Leased Premises, or the Annual Base Rent, additional rent
or other income therefrom and shall be imposed upon the Landlord, then all such taxes, assessments,
levies, impositions, or charges, or the part thereof, to the extent that they are

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so measured or
based, shall be deemed to be included within the term Impositions for the purposes hereof to the
extent that such Impositions would be payable if the Leased Premises were the only property of
Landlord subject to such Impositions, and Tenant shall pay and discharge the same as herein
provided in respect of the payment of Impositions. There shall be excluded from Impositions all
federal income taxes, state and local net income taxes, federal excess profit taxes, franchise,
capital stock and federal or state estate or inheritance taxes of Landlord.

     Section 5.3 Evidence of Payment. Tenant shall deliver to Landlord duplicate receipts and
cancelled checks, or photocopies thereof showing the payments of all Impositions, within thirty
(30) days after respective payments evidenced thereby.

     Section 5.4 Right to Contest. Tenant shall not be required to pay any Imposition or charge
upon or against the Leased Premises, or any part thereof, or the improvements at any time situated
thereon, so long as the Tenant shall, in good faith and with due diligence, contest the same or the
validity thereof by appropriate legal proceeding which shall have the effect of preventing the
collection of the Imposition or charge so contested. In the event Tenant contests any taxes levied
against the Leased Premises, Tenant, at Landlord’s option, shall post adequate security or bond
with Landlord in an amount to cover any payments contested and withheld by Tenant.

ARTICLE VI

RISK ALLOCATION AND INSURANCE

     Section 6.1 Allocation of Risks. The parties desire, to the extent permitted by law, to allocate certain risks of personal
injury, bodily injury or property damage, and risks of loss of real or personal property by reason
of fire, explosion or other casualty, and to provide for the responsibility for insuring those
risks. It is the intent of the parties that, to the extent any event is insured for or required
herein to be insured for, any loss, cost, damage or expense arising from such event, including,
without limitation, the expense of defense against claims or suits, be paid out of insurance,
without regard to the fault of Tenant, its officers, employees or agents (“Tenant Protected
Parties”), and without regard to the fault of Landlord, Agent, their respective partners,
shareholders, members, agents, directors, officers and employees (“Landlord Protected Parties”).
As between Landlord Protected Parties and Tenant Protected Parties, such risks are allocated as
follows:

     (a) Tenant shall bear the risk of bodily injury, personal injury or death, or damage to the
property, of third persons occasioned by events occurring on or about the Leased Premises,
regardless of the party at fault. Said risks shall be insured as provided in Section
6.2(a).

     (b) Subject to the terms and conditions of Section 9.1(a) below, Tenant shall bear the
risk of damage to the improvements on the Leased Premises and to Tenant’s contents, trade fixtures,
machinery, equipment, furniture and furnishings in the Leased Premises.

     Regardless of the limitations of the insurance coverages in effect during the term of this Lease,
Tenant agrees to pay, and to indemnify and defend Landlord against, all costs and expenses
(including reasonable attorney’s fees) incurred by or imposed upon Landlord by or in connection

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with any litigation to which Landlord becomes or is made a party concerning any claim for damages
of any kind or nature, including but not limited to bodily injury, personal injury or death, or
damage to the property, of third persons occasioned by events occurring on or about the Leased
Premises; provided, however, that the foregoing indemnity shall not apply to the extent such
liability arises in connection with the negligence or willful misconduct of Landlord or other fault
of Landlord. Regardless of the limitations of the insurance coverages in effect during the term of
this Lease, Landlord agrees to pay, and to indemnify, hold harmless and defend Tenant against, all
costs and expenses (including reasonable attorney’s fees) incurred by or imposed upon Tenant by or
in connection with any litigation to which Tenant becomes or is made a party concerning any claim
for damages of any kind or nature, including but not limited to bodily injury, personal injury or
death, or damage to the property, of third persons occasioned by events occurring on or about the
Leased Premises; for which the Landlord is the party at fault.

     Section 6.2 Tenant’s Insurance. Tenant shall procure and maintain policies of insurance, at
its own cost and expense, insuring:

     (a) The Landlord Protected Parties (as “additional insureds”), and Landlord’s mortgagee, if
any, of which Tenant is given written notice, and Tenant Protected Parties, from all claims,
demands or actions made by or on behalf of any person or persons, firm or corporation and arising
from, related to or connected with the Leased Premises, for bodily injury to or personal injury to
or death of any person, or more than one (1) person, or for damage to property in an amount of not
less than $2,000,000.00 combined single limit per occurrence/aggregate.
Said insurance shall be written on an “occurrence” basis and not on a “claims made” basis. If
at any time during the term of this Lease, Tenant owns or rents more than one location, the policy
shall contain an endorsement to the effect that the aggregate limit in the policy shall apply
separately to each location owned or rented by Tenant. Landlord shall have the right from time to
time during the term of the Lease, exercisable by giving written notice thereof to Tenant, to
require Tenant to increase such limit if, in Landlord’s reasonable judgment, the amount thereof is
insufficient to protect the Landlord Protected Parties and Tenant Protected Parties from judgments
which might result from such claims, demands or actions.

     (b) The improvements at any time situated upon the Leased Premises against loss or damage by
fire, lightning, wind storm, hail storm, aircraft, vehicles, smoke, explosion, riot or civil
commotion as provided by the Standard Fire and Extended Coverage Policy and all other risks of
direct physical loss as insured against under Special Form (“all risk” coverage). The insurance
coverage shall be for not less than 100% of the full replacement cost of such improvements with
agreed amount endorsement, and building ordinance coverage, all subject only to reasonable
deductibles. Landlord shall be named as the insured and, subject to Article VII below, all
proceeds of insurance shall be payable to Landlord. Said insurance shall contain an endorsement
waiving the insurer’s right of subrogation against any Landlord Protected Party or any Tenant
Protected Party, provided that such waiver of the right of subrogation shall not be operative in
any case where the effect thereof is to invalidate such insurance coverage or increase the cost
thereof (except that either party shall have the right, within thirty (30) days following written
notice, to pay such increased cost, thereby keeping such waiver in full force and effect).

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     (c) Flood or earthquake insurance whenever such protection is necessary and it is available at
commercially reasonable cost.

     (d) All contents and Tenant’s trade fixtures, machinery, equipment, furniture and furnishings
in the Leased Premises to the extent of at least ninety percent (90%) of their replacement cost
under Standard Fire and Extended Coverage Policy and all other risks of direct physical loss as
insured against under Special Form (“all risk” coverage). Said insurance shall contain an
endorsement waiving the insurer’s right of subrogation against any Landlord Protected Party,
provided that such waiver of the right of subrogation shall not be operative in any case where the
effect thereof is to invalidate such insurance coverage or increase the cost thereof

     Section 6.3 Form of Insurance. All of the aforesaid insurance shall be in responsible
companies. The insurance shall provide that it is not subject to cancellation or non-renewal
except after at least thirty (30) days prior written notice to Landlord. Certificates evidencing
the insurance required to be carried hereunder, together with satisfactory evidence of payment of
the premiums thereon, shall be deposited with Landlord at the Commencement Date and renewals
thereof not less than thirty (30) days prior to the end of the term of such coverage.

     Section 6.4 Fire Protection. Tenant shall conform with all applicable fire codes of any governmental authority, and with
the rules and regulations of Landlord’s fire underwriters and their fire protection engineers,
including, without limitation, the installation of adequate fire extinguishers. Notwithstanding
anything in this Lease to the contrary, so long as Tenant is the original named Tenant hereunder
(or an affiliate or subsidiary thereof), Tenant may self-insure any or all of its insurance
obligations under the Lease, provided that Tenant’s net worth remains equal to or greater than
ninety percent (90%) of Tenant’s net worth as of the date of this Lease during such periods of
self-insurance.

ARTICLE VII

DAMAGE OR DESTRUCTION

     Section 7.1 Tenant’s Obligation to Rebuild. Subject to the terms and conditions of
Section 9.1(a) below, in the event of damage to, or destruction of, any improvements on the
Leased Premises, or of the fixtures and equipment therein, by fire or other casualty, provided that
the Lease is not terminated pursuant to this Article VII, Tenant shall promptly, at its expense,
repair, restore or rebuild the same to the condition existing prior to the happening of such fire
or other casualty; provided, however, that if (i) such fire or other casualty occurs during the
last year of the term of this Lease (or during the last year of the term of any Extension Period),
or (ii) Lender (as hereinafter defined) fails to make insurance proceeds available for restoration
of the Leased Premises or Lender requires that the insurance proceeds payable by reason of fire or
other casualty be applied to the payment of the indebtedness, then Tenant shall have the right to
terminate this Lease, effective on the date of such damage or destruction, by giving written notice
thereof to Landlord within sixty (60) days after the event causing the damage or destruction. If
the casualty or the repair, restoration or rebuilding caused thereby shall render the Leased
Premises untenantable, the Tenant’s obligation to pay Rent shall continued unabated. To the extent
that the insurance provided to Landlord by Tenant includes a payment for loss of rental income as a
result of fire or other casualty, the Tenant shall receive credit against Rent for

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any such payment
made by the insurance company when such claim is paid by the insurance company. Landlord agrees to
diligently pursue and use commercially reasonable efforts to obtain payment of a claim for loss of
rental income.

     Section 7.2 Payment for Rebuilding. Provided that the insurer does not deny liability as to
the insureds, all sums arising by reason of loss under the insurance referred to in Section
6.2(b), shall, subject to reasonable conditions of Lender, be deposited with the Depositary (as
hereinafter defined) to be available to Tenant for the work. Tenant shall diligently pursue the
repair or rebuilding of the improvements in a good and workmanlike manner using only high quality
workers and materials. The Depositary shall pay out construction funds from time to time on the
written direction of the architect provided that the Depositary and Landlord shall first be
furnished with waivers of lien, contractors, and subcontractors sworn statements and other evidence
of cost and payments so that the Depositary can verify that the amounts disbursed from time to time
are represented by completed and in-place work, and that said work is free and clear of possible
mechanics liens. No payment made prior to the final completion of the work shall exceed ninety
percent (90%) of the value of the work completed and in place from time to time. Any deficiency to
complete the
work shall be paid into the Depositary by Tenant as and when due. Depositary, as used herein,
shall be a title company selected by Tenant.

     Section 7.3 Excess Receipts by Depositary. Any excess of money received from insurance
remaining with the Depositary after the repair or rebuilding of improvements, if there be no
default by Tenant in the performance of the Tenant’s covenants and agreements hereunder, shall be
paid to Tenant.

     Section 7.4 Failure to Rebuild. Subject to Tenant’s termination rights under Section
7.1, if Tenant shall not commence the repair or rebuilding of the improvements within a period
of ninety (90) days after damage or destruction by fire or otherwise (as the same may be extended
by times necessary to adjust the insurance claims or by any Force Majeure Event (as hereinafter
defined)), and prosecute the same thereafter with such dispatch as may be necessary to complete the
same within a reasonable period after said damage or destruction occurs, not to exceed three
hundred sixty-five (365) days after the date of commencement of such repair or rebuilding (as the
same may be extended by any Force Majeure Event provided that Tenant shall diligently pursue
completion of the restoration work), then Tenant shall be deemed in default under this Lease, and
in addition to all of its other remedies under Article 19.2, Landlord shall be paid and
retain the amount held by the Depositary which it can use, at its sole discretion.

ARTICLE VIII

CONDEMNATION

     Section 8.1 Taking of Whole. If the whole of the Leased Premises shall be taken or condemned
for a public or quasi-public use or purpose by a competent authority, or if such a portion of the
Leased Premises shall be so taken that as a result thereof the balance cannot be used for the same
purpose and with substantially the same utility to Tenant as immediately prior to such taking, or
if the taking is material and substantial and Tenant elects to terminate this Lease, which election
shall be made by giving written notice thereof to Landlord within thirty (30) days after delivery
of possession to the condemning authority, then in any of such events,

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the Lease shall terminate
upon delivery of possession to the condemning authority, and any award, compensation or damages
(hereinafter sometimes called the “Award”) shall be paid to and be the sole property of Landlord
and Tenant hereby assigns to Landlord all of Tenant’s right, title and interest in and to any and
all of the Award,. Tenant shall be entitled to any award for loss of or damage to Tenant’s trade
fixtures or removable personal property and to any award for relocation costs.

     Section 8.2 Partial Taking. If only a part of the Leased Premises shall be so taken or
condemned, but the Lease is not terminated pursuant to Section 8.1 hereof, Tenant, at its
sole cost and expense, shall repair and restore the Leased Premises and all improvements thereon,
provided, however, that Tenant shall have no obligation to repair or restore the Leased Premises or
any improvements located thereon if (i) Lender or Landlord fails to make any Award available for
restoration of the Leased
Premises or (ii) the cost of the restoration work exceeds the amount of any Award received for
the taking (and in such event the Lease shall terminate). If the Leased Premises is rendered
untenantable in whole or in part, an equitable abatement in Rent shall be allowed from the date of
the taking or condemnation. If the Lease is not terminated as provided in the first sentence of
this Section 8.2, Tenant shall promptly and diligently proceed to make a complete
architectural unit of the remainder of the improvements, complying with the procedure set forth in
Section 7.2. For such purpose, the amount of the Award relating to the improvements shall
be deposited with the Depositary (as defined in Section 7.3 hereof) which, subject to
reasonable conditions of Lender, shall disburse the Award to apply on the cost of said repairing or
restoration in accordance with the procedure set forth in Section 7.3.

ARTICLE IX

MAINTENANCE AND ALTERATIONS

     Section 9.1 Maintenance.

     (a) Subject to the terms of this Section 9.1(a) regarding repairs, replacements or
Alterations during the last twelve (12) months of the term of this Lease, Tenant shall keep and
maintain the entire exterior and interior of the Leased Premises, specifically including, without
limitation, the heating, ventilating and air conditioning equipment, walls (both interior and
exterior, the driveways, floors, parking area and the roof, in good condition and repair. As used
herein, each and every obligation of Tenant to keep, maintain and repair shall include, without
limitation, all ordinary and extraordinary structural and nonstructural repairs and replacements.
Tenant shall further keep and maintain the improvements at any time situated upon the Leased
Premises, the parking area and all sidewalks and areas adjacent thereto, safe, secure, clean and
sanitary (including without limitation, snow and ice clearance, landscaping, and necessary interior
painting), and in full compliance with all health, safety and police regulations in force. In the
event the Leased Premises are served or traversed by railroad switch or spur track, then Tenant,
notwithstanding the provision of any rail track agreements to the contrary, shall repair and
maintain, and remove snow from, or reimburse the railroad carrier for repairing, maintaining and/or
snow removal, as the case may be, the portion of the track and related facilities on or serving the
Leased Premises. Notwithstanding anything to the contrary set forth above, and provided that the
Tenant has not exercised its right to extend the then current Lease term pursuant to Article XX,
during the last year of the initial Lease term (or the last year of any Extension Term, if
applicable), in the event that the Landlord determines to make capital

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improvements or repairs to
the Leased Premises, or in the event there is a fire, casualty or destruction of capital
improvements due to eminent domain, then such capital improvements or repairs shall be made at the
sole cost of Landlord.

     Section 9.2 Alterations.

     (a) Subject to the last sentence of Section 9.1(a) regarding repairs, replacements or
Alterations during the last twelve (12) months of the term of this Lease, Tenant shall make all
alterations, additions and improvements (hereinafter “Alterations”) on the Leased Premises,
and on and to the improvements, parking areas, sidewalks, and equipment thereon, regardless of
whether such Alteration are required by any governmental authority or which may be made necessary
by the act or neglect of Tenant, its employees, agents or contractors, or any persons, firm or
corporation, claiming by, through or under Tenant.

     (b) All Alterations which Tenant performs shall be performed in a good and workmanlike manner,
and in substantial compliance with all applicable laws and ordinances. Upon Landlord’s request,
Tenant shall deliver to Landlord copies of any and all required permits. Upon completion of any
Alterations, Tenant shall provide Landlord with such documents as Landlord may require (including,
without limitation, sworn contractors’ statements and supporting lien waivers) evidencing payment
in full for such work, and upon Landlord’s request, “as built” working drawings.

     Section 9.3 Indemnity. Tenant will protect, indemnify and save harmless Landlord Protected
Parties (as defined in Section 6.1) from and against all liabilities, obligations, claims,
damages, penalties, causes of action, costs and expenses (including, without limitation, reasonable
attorneys’ fees and expenses) imposed upon or incurred by or asserted against Landlord by reason of
performance of any labor or services or the furnishing of any materials or other property in
respect of the Leased Premises or any part thereof by Tenant or anyone claiming by, through or
under Tenant, or their respective employees, agents or contractors. In case any action, suit or
proceeding is brought against Landlord by reason of any occurrence described in this Section
9.3, Tenant will, at Tenant’s expense, by counsel approved by Landlord, resist and defend such
action, suit or proceeding, or cause the same to be resisted and defended. The obligations of
Tenant under this Section 9.3 shall survive the expiration or earlier termination of this
Lease. At the request of Landlord, Tenant shall furnish and deposit bond or other security with
the title company of Landlord’s choosing to insure over any lien related to the liabilities
referenced in this Section 9.3 to the extent existing during the last year of the initial
term of this Lease, or during the last year of any Extension Term.

ARTICLE X

ASSIGNMENT AND SUBLETTING

     Section 10.1 Consent Required.

     (a) Except as set forth in Section 10.2 below, Tenant shall not, without Landlord’s
prior written consent, assign, convey or mortgage this Lease or any interest under it. If Tenant
proposes to assign the Lease and Landlord’s consent is required hereunder, Tenant shall deliver
written notice thereof to Landlord, together with a copy of the proposed assignment at least

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twenty
(20) days prior to the effective date of the proposed assignment. Any proposed assignment shall be
expressly subject to all of the terms, conditions and covenants of this Lease. Any proposed
assignment shall contain an express written assumption by assignee of all of Tenant’s obligations
under this Lease.

     Landlord’s consent to any assignment shall not unreasonably be withheld. No consent by
Landlord to any assignment shall be deemed to be a consent to any further assignment.

     Section 10.2 Permitted Transfers. Notwithstanding anything in this Article X to the
contrary, Tenant may, without Landlord’s consent, (x) assign this Lease to any entity resulting
from a merger or consolidation involving Tenant provided that such entity’s net worth is equal to
or greater than Tenant’s net worth as of the date of this Lease, or (y) assign this Lease to any
parent subsidiary or affiliate of Tenant provided that such subsidiary’s or affiliate’s net worth
is equal to or greater than Tenant’s net worth as of the date of this Lease, or (z) sublet all or
any portion of the Leased Premises to any third party, provided that the term of such sublease
shall not extend (including any options granted under such sublease) beyond the term of this Lease
(the term of this Lease shall not include any unexercised option term or terms). Tenant shall
promptly provide Landlord a copy of the documents evidencing any such assignment or sublease (or
any amendment of an existing sublease).

     Section 10.3 Other Transfer of Lease. Tenant shall not allow or permit any transfer of this
Lease, or any interest hereunder, by operation of law, or mortgage, pledge, encumber or permit a
lien on this Lease or any interest herein.

     Section 10.4 Service Contracts. Tenant shall have the right to enter into service contracts
concerning the maintenance of the Leased Premises provided that the term of any such contract shall
not extend (including any options granted under such service contract) beyond the term of this
Lease (the term of this Lease shall not include any unexercised option term or terms).

ARTICLE XI

LIENS AND ENCUMBRANCES

     Section 11.1 Encumbering Title. Tenant shall not do any act which shall in any way encumber
the title of Landlord in and to the Leased Premises, nor shall the interest or estate of Landlord
in the Leased Premises in any way be subject to any claim by way of lien or encumbrance, whether by
operation of law or virtue of any express or implied contract by Tenant. Any claim to, or lien
upon, the Leased Premises arising from any act or omission of Tenant shall accrue only against the
leasehold estate of Tenant and shall be subject and subordinate to the paramount title and rights
of Landlord in and to the Leased Premises.

     Section 11.2 Liens and Right to Contest. Tenant shall not permit the Leased Premises to
become subject to any mechanics’, laborers’ or materialmen’s lien on account of labor or material
furnished to Tenant or claimed to have been furnished to Tenant in connection with work of any
character performed or claimed to
have been performed on the Leased Premises by, or at the direction or sufferance of Tenant;
provided, however, that Tenant shall have the right to contest, in good faith and with reasonable
diligence, the validity of any such lien or claimed lien.

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At the request of Landlord, Tenant shall
furnish and deposit bond or other security with the title company of Landlord’s choosing to insure
over any lien related to the liabilities referenced in this Section 11.2 to the extent
existing during the last year of the initial term of this Lease, or during the last year of any
Extension Term.

ARTICLE XII

UTILITIES

     Section 12.1 Utilities. Tenant shall purchase all utility services, including but not limited
to fuel, water, sewerage and electricity, from the utility or municipality providing such service,
and shall pay for such services when such payments are due.

ARTICLE XIII

INTENTIONALLY DELETED

ARTICLE XIV

RIGHTS RESERVED TO LANDLORD

     Section 14.1 Rights Reserved to Landlord. Landlord, on behalf of itself and Agent reserves
the following rights to be exercised at Landlord’s election:

     (a) Upon forty-eight (48) hours’ prior notice to Tenant (except in the event of emergency), to
inspect the Leased Premises;

     (b) Upon forty-eight (48) hours’ prior notice to Tenant (except in the event of emergency), to
show the Leased Premises to prospective purchasers, mortgagees, or other persons having a
legitimate interest in viewing the same, and, at any time within nine (9) months prior to the
expiration of the Lease term to persons wishing to rent the Leased Premises;

     (c) During the last nine (9) months of the Lease term, to place and maintain the usual “For
Rent” sign in or on the Leased Premises; and

     (d) To place and maintain “For Sale” signs on the Leased Premises and on the exterior of the
building on the Leased Premises.

     Landlord may enter upon the Leased Premises for said purposes and may exercise any and all of
the foregoing rights hereby reserved; provided that such entry is made during normal business hours
unless an emergency exists and that Landlord does not unreasonably interfere with Tenant’s use and
enjoyment of the Leased Premises.

ARTICLE XV

QUIET ENJOYMENT

     Section 15.1 Quiet Enjoyment. So long as no Event of Default of Tenant has occurred, Tenant’s
quiet and peaceable enjoyment of the Leased Premises shall not be disturbed or interfered with by
Landlord or by any person claiming by, through or under Landlord.

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ARTICLE XVI

SUBORDINATION OR SUPERIORITY

     Section 16.1 Subordination or Superiority. If the mortgagee or trustee named in any first
mortgage or first trust deed now existing or hereafter made shall agree that, if it becomes the
owner of the Leased Premises by foreclosure or deed in lieu of foreclosure, it will recognize the
rights and interest of Tenant under the Lease and not disturb Tenant’s use and occupancy of the
Leased Premises if and so long as no Event of Default of Tenant has occurred (which agreement may,
at such mortgagee’s option, require attornment by Tenant), then all or a portion of the rights and
interests of Tenant under this Lease shall be subject and subordinate to such first mortgage or
first trust deed and to any and all advances to be made thereunder, and to the interest thereon,
and all renewals, replacements and extensions thereof. Any such mortgagee or trustee may elect
that, instead of making this Lease subject and subordinate to its first mortgage or first trust
deed, the rights and interest of Tenant under this Lease shall have priority over the lien of its
mortgage or trust deed. Tenant agrees that it will, within ten (10) business days after demand in
writing, execute and deliver whatever instruments may be required to the extent consistent with
this Article XVI, either to make the Lease subject and subordinate to such a mortgage or
trust deed, or to give the Lease priority over the lien of the mortgage or trust deed, whichever
alternative may be elected by the mortgagee or trustee. If Tenant fails to execute and deliver any
such instrument, Tenant does hereby make, constitute and irrevocably appoint Landlord as its
attorney in fact, in its name, place and stead so to do. Landlord represents and warrants that as
of the date hereof, Amalgamated Bank of Chicago (“Lender”) is the only party holding a deed of
trust on the property. Simultaneously with the execution hereof, Lender and Tenant shall enter
into a subordination, non-disturbance and attornment agreement substantially in the form of
Exhibit B.

ARTICLE XVII

SURRENDER

     Section 17.1 Surrender. Upon the expiration of the term of this Lease, or upon termination of
the Lease or of Tenant’s right to possession of the Leased Premises, Tenant will at once surrender
and deliver up the Leased Premises, together with all improvements thereon, to Landlord, broom
swept, in good condition and repair, reasonable wear and tear and damage by casualty or
condemnation excepted. Tenant shall deliver to Agent all keys to all doors therein. All
Alterations, temporary or permanent, made in or upon the Leased Premises by Tenant shall become
Landlord’s property
and shall remain upon the Leased Premises on any such termination without compensation,
allowance or credit to Tenant.

     Section 17.2 Removal of Tenant’s Property. Upon the termination of this Lease by lapse of
time, Tenant shall remove Tenant’s articles of personal property incident to Tenant’s business
(“Trade Fixtures”); provided, however, that Tenant shall repair any injury or damage to the Leased
Premises which may result from such removal, and shall restore the Leased Premises to the same
condition as prior to the installation thereof. If Tenant does not remove Tenant’s Trade Fixtures
from the Leased Premises prior to the expiration or earlier termination of the Lease term, Landlord
may, at its option, remove the same (and repair any damage occasioned thereby) and dispose thereof
or deliver the same to any other place of business of Tenant or warehouse the same, and Tenant
shall pay the reasonable out-of-pocket cost of such

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removal, repair, delivery and warehousing to
Landlord on demand or Landlord may treat such Trade Fixtures as having been conveyed to Landlord
with this Lease as a Bill of Sale, without further payment or credit by Landlord to Tenant.

     Section 17.3 Holding Over. Tenant shall have no right to occupy the Leased Premises or any
portion thereof after the expiration of the Lease or after termination of the Lease or of Tenant’s
right to possession pursuant to Section 19.0 hereof. In the event Tenant or any party
claiming by, through or under Tenant holds over, Tenant shall pay, as liquidated damages, monthly
rent at a rate equal to 150% the rate of the Annual Base Rent payable by Tenant hereunder
immediately prior to the expiration or other termination of the Lease or of Tenant’s right to
possession.

ARTICLE XVIII

ENVIRONMENTAL CONDITIONS

     Section 18.1 Defined Terms.

     (a) “Hazardous Material” shall include but shall not be limited to any substance, material, or
waste that is regulated by any federal, state, or local governmental authority because of toxic,
flammable, explosive, corrosive, reactive, radioactive or other properties that may be hazardous to
human health or the environment, including without limitation asbestos and asbestos containing
materials, radon, petroleum and petroleum products, urea formaldehyde foam insulation, methane,
lead based paint, polychlorinated biphenyl compounds, hydrocarbons or like substances and their
additives or constituents, pesticides, agricultural chemicals, and any other special, toxic, or
hazardous substances, materials, or wastes of any kind, including without limitation those now or
hereafter defined, determined, or identified as “hazardous substances,” “hazardous materials,”
“toxic substances,” or “hazardous wastes” in any Environmental Law.

     (b) “Environmental Law” shall mean any federal, state, or local law, statute, ordinance, code,
rule, regulation, policy, common law, license, authorization, decision, order, or injunction
applicable to the Leased Premises which pertains to health, safety, any Hazardous
Material, or the environment (including, but not limited to, ground, air, water, or noise
pollution or contamination, and underground or aboveground tanks) together with all rules,
regulations, orders, and decrees now or hereafter promulgated under any of the foregoing, as any of
the foregoing now exist or may be changed or amended or come into effect in the future.

     (c) “Environmental Claim” shall mean and include any demand, notice of violation, inquiry,
cause of action, proceeding, or suit for damages (including reasonable attorneys’, consultants’,
and experts’ fees, costs or expenses), losses, injuries to person or property, damages to natural
resources, fines, penalties, interest, cost recovery, compensation, or contribution resulting from
or in any way arising in connection with any Hazardous Material in violation of any Environmental
Law.

     (d) “Pre-Existing Condition” shall mean the presence of any Hazardous Material on the Leased
Premises, to the extent such Hazardous Material was not introduced onto the Leased Premises after
the Commencement Date.

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     (e) “Environmental Condition” shall mean (i) the presence on the Leased Premises of one or
more underground storage tanks or (ii) the existence of any Hazardous Material on the Leased
Premises, including a Pre-Existing Condition, in violation of or requiring cleanup under any
Environmental Law in concentrations or at levels exceeding applicable federal, state, or local
standards for soil, groundwater, or waste, either of which subjects a party to liability for any
Environmental Claim.

     (f) “Environmental Remediation” shall mean any investigation, cleanup, removal, containment,
remediation, or other action relating to an Environmental Condition (i) required pursuant to any
Environmental Law, or (ii) necessary to prevent a party from incurring, or relieve a party from,
loss of any kind as a result of an Environmental Claim.

     (g) “Landlord Group” any or all of Landlord’s agents, employees, representatives, contractors,
workmen, mechanics, suppliers, customers, guests, licensees, invitees, assignees and all of their
respective successors and assigns or any party claiming by, through or under any of them.

     (h) “Remediating Party” shall mean the party which has elected (or is deemed to have elected)
to perform any Environmental Remediation.

     (i) “Tenant Group” any or all of Tenant’s agents, employees, representatives, contractors,
workmen, mechanics, suppliers, customers, guests, licensees, invitees, sublessees, assignees and
all of their respective successors and assigns or any party claiming by, through or under any of
them.

     Section 18.2 Tenant’s Covenants with Respect to Environmental Matters. During the Term,
Tenant, at its sole cost and expense, shall:

     (a) materially comply with all Environmental Laws relating to the use and operation of the
Leased Premises;

     (b) keep the Leased Premises free of any Hazardous Material, provided, however, minor
quantities of Hazardous Materials may be used or stored in the Premises for cleaning purposes only
or in connection with the normal course of operation of Tenant’s business on the Leased Premises,
so long as such quantities and the use thereof is done in accordance with all Environmental Laws;

     (c) upon the discovery of an Environmental Condition:

	 	1.	 	promptly, but not later than five (5) business days after the
discovery of the Environmental Condition, notify Landlord of the Environmental
Condition;
	 
	 	2.	 	prior to commencement of any Environmental Remediation, submit
a proposed scope of work for the Environmental Remediation, together with a
timetable and a cost estimate, to Landlord for review and approval;

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	 	3.	 	after obtaining Landlord’s approval, which shall not be
unreasonably withheld, conditioned or delayed, diligently perform the approved
Environmental Remediation;
	 
	 	4.	 	submit to Landlord in a timely manner for Landlord’s reasonable
review and comment the documentation and information required by Sections
18.6 and 18.7 of this Lease relating to each phase of the
Environmental Remediation, and pay all reasonable costs of Landlord described
in Section 18.7(c);
	 
	 	5.	 	comply with applicable release reporting requirements under
Environmental Law and provide Landlord with any information reasonably
necessary for Landlord to comply with Environmental Law; and
	 
	 	6.	 	to the extent applicable, obtain a so called “no further
remediation letter” or other acknowledgment from the federal, state, or local
governmental agency with jurisdiction over the Environmental Condition that the
Leased Premises have been fully remediated without reliance on institutional
controls (including but not limited to deed restrictions) or engineered
barriers;

     (d) not install or operate any above or below ground tank, sump, pit, pond, lagoon, or other
storage or treatment vessel or device in used in connection with Hazardous Materials on the Leased
Premises without first obtaining Landlord’s prior written consent, which consent shall not be
unreasonably withheld, conditioned or delayed;

     (e) not handle, use, generate, treat, dispose of, or permit the use, handling, generation,
treatment, storage, or disposal of any Hazardous Material (except as provided in Section
18.2(b) above) in, on, under, around, or above the Leased Premises at any time during the Term;

     (f) not use any above ground tank (including barrels and drums), of any size within or without
the Leased Premises, except (i) in compliance with all Environmental Laws, and (ii) if, reasonably
required by Landlord, secondary containment is provided. .

     Section 18.3 Pre-Existing Conditions. To the extent required by Environmental Law, Tenant acknowledges that Tenant is fully
responsible to remediate any and all Pre-Existing Condition, regardless of whether such
Environmental Condition is known or unknown as of the Commencement Date.

     Section 18.4 Rights of Inspection. In addition to Landlord’s other rights of entry, access
and inspection contained in this Lease, Landlord and its agents and representatives shall have,
upon reasonable prior notice given to Tenant and at reasonable hours, a right of entry and access
to the Leased Premises for the purposes of (i) inspecting the documentation relating to Hazardous
Materials or environmental matters maintained by Tenant or any occupant of the Leased Premises;
(ii) ascertaining the nature of the activities being conducted on the Leased Premises and
investigating whether Tenant is in compliance with its obligations under Article XVIII of this
Lease; (iii) determining the type, kind, and quantity of all products, materials, and substances
brought onto the Leased Premises, or made or produced thereon, and (iv) performing such
environmental investigations and assessments as Landlord may reasonably desire to perform. The
investigation and assessments may also include reasonable subsurface or other

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invasive
investigation of the Leased Premises, including, but not limited to, soil borings and sampling of
site soil and ground or surface water for laboratory analysis, as may be reasonably recommended by
the Landlord’s consultant as part of its inspection of the Leased Premises or based upon such other
reasonable evidence of Environmental Conditions warranting such subsurface or other invasive
investigation. Tenant will cooperate with Landlord and Landlord’s consultants and will supply,
promptly upon request, any information reasonably requested to facilitate the completion of the
environmental assessments and investigations. Landlord and its agents and representatives shall
have the right to take samples in quantities sufficient for analysis of all products, materials,
and substances present on the Leased Premises and shall also have the right to conduct other tests
and studies as may be reasonably determined by Landlord to be appropriate in order to investigate
whether Tenant is in compliance with its obligations under Article XVIII.

     Section 18.5 Copies of Notices. During the Term, Tenant shall promptly provide Landlord with
copies of all summons, citations, directives, information inquiries or requests, notices of
potential responsibility, notices of violation or deficiency, orders or decrees, Environmental
Claims, complaints, investigations, judgments, letters, notices of environmental liens or response
actions in progress, and other communications, written or oral, actual or threatened, received by
Tenant or any occupant of the Leased Premises, from any federal, state, or local agency or
authority, or any other entity or individual (including both governmental and non governmental
entities and individuals), concerning (a) any actual or alleged release of any Hazardous Material
on, to, or from the Leased Premises; (b) any actual or alleged violation of or responsibility
under Environmental Laws; or (c) any actual or alleged liability under any theory of common law
tort or toxic tort, including without limitation, negligence, trespass, nuisance, strict liability,
or ultrahazardous activity.

     Section 18.6 Tests and Reports. Upon written request by Landlord, Tenant shall provide
Landlord, at Tenant’s expense, with (i) copies of all environmental reports and tests prepared or
obtained by or for Tenant or any
occupant of the Leased Premises; (ii) copies of transportation and disposal contracts (and
related manifests, schedules, reports, and other information) entered into or obtained by Tenant
with respect to any Hazardous Material; (iii) copies of any permits issued to Tenant under
Environmental Laws with respect to the Leased Premises; (iv) prior to filing, copies of any and all
reports, notifications, and other filings to be made by Tenant or any occupant of the Leased
Premises to any federal, state, or local environmental authorities or agencies, and after filing,
copies of such filings; and (v) any other relevant documents and information with respect to
environmental matters relating to the Leased Premises. Tenant shall be obligated to provide such
documentation only to the extent that the documentation is within Tenant’s possession or control.

     Section 18.7 Indemnification. Tenant shall reimburse, defend with counsel reasonably chosen
by Landlord, indemnify, and hold Landlord and any other Indemnified Party free and harmless from
and against any and all Environmental Claims, response costs, losses, liabilities, damages, costs,
and expenses, including without limitation loss of rental income, loss due to business
interruption, and reasonable attorneys’ and consultants’ fees, costs and expenses arising out of or
in any way connected with any or all of the following:

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     (a) any Hazardous Material (other than a Pre Existing Condition) which is or was actually or
allegedly generated, stored, treated, released, disposed of, or otherwise located on or at the
Leased Premises as a result of the act or omission of Tenant or any member of the Tenant Group
(regardless of the location at which such Hazardous Material is now or may in the future be located
or disposed of), including, but not limited to any and all (i) liabilities under any common law
theory of tort, nuisance, strict liability, ultrahazardous activity, negligence, or otherwise based
upon, resulting from or in connection with any Hazardous Material; (ii) obligations to take
response, cleanup, or corrective action pursuant to any Environmental Laws; and (iii) the costs and
expenses of investigation or remediation in connection with the decontamination, removal,
transportation, incineration, or disposal of any of the foregoing in accordance with Environmental
Law; and

     (b) any actual or alleged illness, disability, injury, or death of any person, in any manner
arising out of or allegedly arising out of exposure to any Hazardous Material or other substances
or conditions present at the Leased Premises as a result of the act or omission of Tenant or any
member of the Tenant Group (including, but not limited to, ownership, operation, and disposal of
any equipment which generates, creates, or uses electromagnetic files, x rays, other forms of
radiation and radioactive materials), regardless of when any such illness, disability, injury, or
death shall have occurred or been incurred or manifested itself; and

     (c) any failure by Tenant to comply with any obligation under this Article XVIII
relating to an Environmental Condition for which Tenant is Remediating Party;

     (d) the imposition of any lien for damages caused by, or the recovery of any costs for, the
remediation or cleanup of any Hazardous Material as a result of the act or omission of Tenant or
any member of the Tenant Group;

     (e) costs of removal of any and all Hazardous Materials from all or any portion of the Leased
Premises, which Hazardous Materials came to be present at the Leased Premises as a result of the
act or omission of Tenant or any member of the Tenant Group;

The obligations of Tenant under Section 18.7 shall survive any termination or expiration
of this Lease. Notwithstanding anything herein to the contrary, Tenant shall not be liable for,
and shall have no obligations to indemnify, Landlord or the Landlord Group for Landlord’s or the
Landlord Group’s negligence or willful misconduct.

     Section 18.8 No Liability of Landlord. Except as provided in Section 18.7, Landlord
shall not have any liability to Tenant or any of its employees, agents, shareholders, officers or
directors, or any other persons as a result of any Hazardous Material now or hereafter located on
the Leased Premises.

ARTICLE XIX

REMEDIES

     Section 19.1 Defaults. Tenant agrees that any one or more of the following events shall be
considered Events of Default as said term is used herein:

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     (a) Tenant shall be adjudged an involuntary bankrupt, or a decree or order approving, as
properly filed, a petition or answer filed against Tenant asking reorganization of Tenant under the
Federal bankruptcy laws as now or hereafter amended, or under the laws of any state, shall be
entered, and any such decree or judgment or order shall not have been vacated or set aside within
ninety (90) days from the date of the entry or granting thereof; or

     (b) Tenant shall file or admit the jurisdiction of the court and the material allegations
contained in any petition in bankruptcy or any petition pursuant or purporting to be pursuant to
the Federal bankruptcy laws as now or hereafter amended, or Tenant shall institute any proceeding
or shall give its consent to the institution of any proceedings for any relief of Tenant under any
bankruptcy or insolvency laws or any laws relating to the relief of debtors, readjustment of
indebtedness, reorganization, arrangements, composition or extension; or

     (c) Tenant shall make any assignment for the benefit of creditors or shall apply for or
consent to the appointment of a receiver for Tenant or any of the property of Tenant; or

(d) The Leased Premises are levied upon by any revenue officer or similar officer; or

     (e) A decree or order appointing a receiver of the property of Tenant shall be made and such
decree or order shall not have been vacated or set aside within ninety (90) days from the date of
entry or granting thereof; or

     (f) Tenant shall abandon the Leased Premises and fail to pay Rent as required hereunder; or

     (g) Tenant shall default in any payment of Rent or in any other payment required to be made by
Tenant hereunder or shall default under Section 6.2 hereof, and any such default shall
continue for five (5) business days after notice thereof in writing to Tenant; or

     (h) Subject to the terms of Section 19.3 below, Tenant shall default in keeping,
observing or performing any of the other covenants or agreements herein contained to be kept,
observed and performed by Tenant, and such default shall continue for thirty (30) days after notice
thereof in writing to Tenant or shall exist at the expiration of the Lease term.

     Section 19.2 Remedies. Upon the occurrence of any one or more Events of Default, Landlord may
at its election terminate this Lease or terminate Tenant’s right to possession only, without
terminating the Lease. Upon termination of the Lease, or upon any termination of Tenant’s right to
possession without termination of the Lease, Tenant shall surrender possession and vacate the
Leased Premises immediately, and deliver possession thereof to Landlord, and hereby grants to
Landlord the full and free right, without demand or notice of any kind to Tenant (except as
hereinabove expressly provided for), to enter into and upon the Leased Premises in such event with
process of law and to repossess the Leased Premises as Landlord’s former estate and to expel or
remove Tenant and any others who may be occupying or within the Leased Premises without being
deemed in any manner guilty of trespass, eviction, or forcible entry or detainer, without incurring
any liability for any damage resulting therefrom and without relinquishing Landlord’s rights to
Rent or any other right given to Landlord hereunder or by operation of law. Upon termination of
the Lease, Landlord shall be entitled to recover as damages all Rent and other sums due and payable
by Tenant on the date of termination, plus (a)

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an amount equal to the value of the Rent and other
sums provided herein to be paid by Tenant for the residue of the stated term hereof, less the fair
rental value of the Leased Premises for the residue of the stated term (taking into account the
time and expenses reasonably necessary to obtain a replacement tenant or tenants, including
expenses hereinafter described relating to recovery of the Leased Premises, preparation for
reletting and for reletting itself), and (b) the cost of performing any other covenants to be
performed by Tenant. If Landlord elects to terminate Tenant’s right to possession only without
terminating the Lease, Landlord may, at Landlord’s option, enter into the Leased Premises, remove
Tenant’s signs and other evidences of tenancy, and take and hold possession thereof as hereinafter
provided, without such entry and possession terminating the Lease or releasing Tenant, in whole or
in part, from Tenant’s obligations to pay the Rent and other sums provided herein to be paid by
Tenant for the full term or from any other of its obligations under this Lease. Landlord may relet
all or any part of the Leased Premises for such Rent and upon such terms as shall be satisfactory
to Landlord (including the right to relet the Leased Premises as a part of a larger area, and the
right to change the character or use made of the Leased Premises). For the purpose of such
reletting, Landlord may decorate or make any repairs, changes, alterations or additions in or to
the Leased Premises that may be reasonably necessary. If Landlord does not relet the Leased
Premises, Tenant shall pay to Landlord on demand damages equal to the amount of the Rent, and other
sums provided herein to be paid by Tenant for the remainder of the Lease term. If the Leased
Premises are relet and a sufficient sum shall not be realized from such reletting after paying all
of the expenses of such decorations, repairs, changes, alterations, additions, the expenses of such
reletting and the collection of the Rent accruing therefrom (including, but not by way of
limitation, attorneys’ fees and brokers’ commissions), to satisfy the
Rent and other sums herein provided to be paid for the remainder of the Lease term, Tenant
shall pay to Landlord on demand any deficiency and Tenant agrees that Landlord may file suit to
recover any Rent or other sums falling due under the terms of this Section from time to time.
Landlord shall use reasonable efforts to mitigate its damages arising out of Tenant’s default.

     Section 19.3 Tenant’s Opportunity to Cure. If Tenant defaults under Section 19.1(h),
and such default cannot with due diligence be cured within a period of thirty (30) days, and if
notice thereof in writing shall have been given to Tenant, and if Tenant, prior to the expiration
of thirty (30) days from and after the giving of such notice, commences to eliminate the cause of
such default and proceeds diligently and with reasonable dispatch to take all steps and do all work
required to cure such default and does so cure such default, then an Event of Default shall not be
deemed to have occurred; provided, however, that Tenant’s right to cure hereunder shall not extend
beyond the expiration of the Lease term, and provided further that the curing of any default in
such manner shall not be construed to limit or restrict Landlord’s remedies for any other default
which becomes an Event of Default.

     Section 19.4 Landlord’s Right to Cure. Landlord may, but shall not be obligated to, cure any
default by Tenant (specifically including, but not by way of limitation, Tenant’s failure to obtain
insurance, make repairs, or satisfy lien claims); and whenever Landlord so elects, all reasonable
out-of-pocket costs and expenses paid by Landlord in curing such default, including without
limitation reasonable attorneys’ fees, shall be so much additional rent due on the next rent date
after such payment.

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     Section 19.5 Remedies Cumulative. No remedy herein or otherwise conferred upon or reserved to
Landlord shall be considered to exclude or suspend any other remedy but the same shall be
cumulative and shall be in addition to every other remedy given hereunder, or now or hereafter
existing at law or in equity or by statute, and every power and remedy given by this Lease to
Landlord may be exercised from time to time and so often as occasion may arise or as may be deemed
expedient

     Section 19.6 No Waiver. No delay or omission of Landlord to exercise any right or power
arising from any default shall impair any such right or power or be construed to be a waiver of any
such default or any acquiescence therein. No waiver of any breach of any of the covenants of this
Lease shall be construed, taken or held to be a waiver of any other breach, or as a waiver,
acquiescence in or consent to any further or succeeding breach of the same covenant. The
acceptance by Landlord of any payment of Rent after the termination by Landlord of this Lease or of
Tenant’s right to possession hereunder shall not, in the absence of agreement in writing to the
contrary by Landlord, be deemed to restore this Lease or Tenant’s right to possession hereunder, as
the case may be, but shall be construed as a payment on account, and not in satisfaction of damages
due from Tenant to Landlord.

ARTICLE XX

OPTION TO EXTEND

     Section 20.1 Option to Extend. Provided Tenant shall timely and faithfully perform all of its
obligations under this Lease during the original term (and any extended option term, if
applicable), Tenant shall have the right, exercisable by giving written notice thereof to Landlord
not less than nine (9) months prior to the expiration of the original term of this Lease or the
then current Extension Term (as hereinafter defined), to extend the term of this Lease for three
(3) consecutive additional terms of five (5) years (each, as “Extension Term” and collectively the
“Extension Terms”) each upon all of the terms, covenants and conditions contained in this Lease,
except that Annual Base Rent during any such extended term shall be equal to the Prevailing Market
Rate (as hereinafter defined) effective as of the commencement date of the applicable Extension
Term. Promptly after determination of the Prevailing Market Rent for the applicable Extension
Term, Landlord shall prepare a mutually acceptable amendment to lease setting forth the Prevailing
Market Rent and the parties shall execute the same. All references to “term” of this Lease shall
be deemed to include any applicable Extension Terms and the Expiration Date shall be deemed to mean
the expiration date of the applicable Extension Term.

     Section 20.2 Prevailing Market Rate.

     “Prevailing Market Rate” shall mean the annual market rental rate for space in comparable
buildings in Selma, Texas, comparable to the extent practicable in size, condition, age, class,
location and use to the Leased Premises and for a term of not less than five (5) years with tenants
with credit similar to Tenant (adjusted using market rates to take into account that no rental
increases shall occur during the five (5) year term of the extension, no concessions, inducements,
landlord work, brokerage commission, allowances and other incentives) provided in leases executed
during the twelve (12) month period prior to the date of Landlord’s written notice to Tenant of
Landlord’s determination of the Prevailing Market Rate. Landlord will deliver written notice to
Tenant of its determination of the Prevailing Market Rate no later than

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thirty (30) days after
Landlord receives Tenant’s notice of exercise of its option to extend for the applicable Extension
Term. If Tenant believes that the Prevailing Market Rate quoted by Landlord is not consistent
herewith, Tenant shall so notify Landlord within ten (10) days after receipt of Landlord’s written
notice of the Prevailing Market Rate, and Landlord and Tenant shall commence negotiations as of the
date Tenant delivers such notice to attempt to agree upon the Prevailing Market Rate. If Landlord
and Tenant are unable to reach agreement on the Prevailing Market Rate within thirty (30) days
after the date of Landlord’s determination, Tenant may elect, by written notice to Landlord given
within five (5) business days after the expiration of such 30-day period, to require that the
disagreement be resolved by arbitration in the manner set forth herein. If Tenant does not provide
such notice within the aforementioned five (5) business day period, Tenant will be deemed to have
revoked and waived its option to extend the Term under this Article XX for the applicable
Extension Term. If Tenant timely requests arbitration of the dispute, Landlord and Tenant shall
then undertake arbitration and shall separately engage a licensed commercial real estate broker to
determine the Prevailing Market
Rate as defined herein. Within ten (10) business days after the real estate brokers has been
selected, they shall simultaneously submit a market analysis which sets forth their opinion of the
Prevailing Market Rate. If such opinions conclude a Prevailing Market Rate within 2% of each
other, then the mean of the two opinions shall establish the Prevailing Market Rate for the option
term. In the event, however, that the two opinions are not within 2% of each other, the two chosen
realtors will appoint a third qualified commercial real estate broker, who shall within ten
business days after his appointment provide an opinion totally independent of the opinions provided
by the original two real estate brokers. The third real estate broker’s opinion shall be compared
to the other two opinions previously provided, and the Prevailing Market Rate will be set by:

	 	i.	 	comparing the opinions of the first two real
estate brokers with the opinion of the third real estate broker;
	 
	 	ii.	 	the opinion of the first two real estate
brokers which is closest to the opinion of the third commercial real
estate broker will be used, and the Prevailing Market Rate shall be set
as the mean of such closest earlier opinion with the third opinion.

For example, if the first real estate broker’s opinion was that the Leased Premises should rent for
$5.00 per square foot, and the second real estate broker’s opinion was that the Leased Premises
should rent for $5.50 per square foot, a difference of 10% would exist, and a third real estate
broker would be chosen. If the third real estate broker concluded that the fair rental should be
$5.30 per square foot, the Prevailing Market Rate would be thereby established to be $5.50. If
the third real estate broker is exactly in between the opinions of the first two realtors, then the
Prevailing Market Rate shall equal the opinion of the third real estate broker. Any real estate
broker appointed hereunder shall be a licensed Illinois real estate broker with not less than ten
(10) years of experience in leasing comparable space, shall be independent of Tenant, Landlord and
any other real estate broker theretofore appointed with respect to such determination of the
Prevailing Market Rate shall not have represented Tenant or Landlord or an Affiliate of Landlord in
connection with this Lease, and shall not be a client of Tenant or a tenant of Landlord. Each
party shall pay one-half (1/2) of the fees and costs of the third real estate broker appointed as

22

 

aforesaid. Each party may submit to the real estate brokers, with a copy to the other party, such
materials as may be relevant to determining the Prevailing Market Rate. Subject to the terms of
this Article XX, such arbitration proceedings shall be conducted in accordance with the
Commercial Arbitration Rules of the American Arbitration Association, and any final determination
of the Prevailing Market Rate in such arbitration shall be final and binding on the parties.
Notwithstanding anything contained above to the contrary, the Prevailing Market Rate shall never be
reduced from the rental rate in effect prior to the extension.

ARTICLE XXI

MISCELLANEOUS

     Section 21.1 Estoppel Certificates. Tenant and Landlord shall each at any time and from time to time upon not less than ten
(10) business days prior written request from the other party, execute, acknowledge and deliver to
the requesting party, in a form reasonably satisfactory to the requesting party, a written
statement certifying (if true) that Tenant has accepted the Leased Premises, that this Lease is
unmodified and in full force and effect (or, if there have been modifications, that the same is in
full force and effect as modified and stating the modifications), that, to the party’s knowledge,
neither Landlord or Tenant is not in default hereunder, the date to which Rent has been paid in
advance, if any, and such other accurate certifications as may reasonably be required by Landlord
or Tenant. Tenant shall also, upon written request, give copies to any mortgagee of Landlord of
all notices by Tenant to Landlord and a reasonable opportunity for such mortgagee to cure any
default of Landlord (not to exceed ninety (90) days in any event).

     Section 21.2 Amendments Must Be in Writing. None of the covenants, terms or conditions of
this Lease, to be kept and performed by either party, shall in any manner be altered, waived,
modified, changed or abandoned except by a written instrument, duly signed and delivered by the
other party.

     Section 21.3 Notices. All notices to or demands upon Landlord or Tenant desired or required
to be given under any of the provisions hereof shall be in writing. Any notices or demands from
Landlord to Tenant shall be deemed to have been duly and sufficiently given when received or
refused, if sent by United States registered or certified mail in an envelope properly stamped and
addressed, or if sent by courier service, with receipt, to Tenant at Tenant’s Address or at such
other street address as Tenant may theretofore have designated by written notice to Landlord, and
any notices or demands from Tenant to Landlord shall be deemed to have been duly and sufficiently
given when received or refused, if sent by United States registered or certified mail in an
envelope properly stamped and addressed, or if sent by courier service, with receipt, to Landlord
at Landlord’s Address or at such other street address or to such other agent as Landlord or Agent
may theretofore have designated by written notice to Tenant, with a copy to any first mortgagee of
the Leased Premises, the identity and address of which Tenant shall have received written notice.

     Section 21.4 Short Form Lease. This Lease shall not be recorded, but the parties agree, at
the request of either of them, to execute a Short Form Lease for recording, containing the names of
the parties, the legal description and the term of the Lease.

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     Section 21.5 Time of Essence. Time is of the essence of this Lease, and all provisions herein
relating thereto shall be strictly construed.

     Section 21.6 Relationship of Parties. Nothing contained herein shall be deemed or construed by the parties hereto, or by any
third party, as creating the relationship of principal and agent or of partnership, or of joint
venture, by the parties hereto, it being understood and agreed that no provision contained in this
Lease nor any acts of the parties hereto shall be deemed to create any relationship other than the
relationship of landlord and tenant.

     Section 21.7 Captions. The captions of this Lease are for convenience only and are not to be
construed as part of this Lease and shall not be construed as defining or limiting in any way the
scope and intent of the provisions hereof.

     Section 21.8 Severability. If any term or provision of this Lease shall to any extent be held
invalid or unenforceable, the remaining terms and provisions of this Lease shall not be affected
thereby, but each term and provision of this Lease shall be valid and be enforced to the fullest
extent permitted by law.

     Section 21.9 Law Applicable. This Lease shall be construed and enforced in accordance with
the laws of the state where the Leased Premises are located.

     Section 21.10 Covenants Binding on Successors. All of the covenants, agreements, conditions
and undertakings contained in this Lease shall extend and inure to and be binding upon the heirs,
executors, administrators, successors and assigns of the respective parties hereto, the same as if
they were in every case specifically named, and wherever in this Lease reference is made to either
of the parties hereto, it shall be held to include and apply to, wherever applicable, the heirs,
executors, administrators, successors and assigns of such party. Nothing herein contained shall be
construed to grant or confer upon any person or persons, firm, corporation or governmental
authority, other than the parties hereto, their heirs, executors, administrators, successors and
assigns, any right, claim or privilege by virtue of any covenant, agreement, condition or
undertaking in this Lease contained.

     Section 21.11 Brokerage. Tenant and Landlord each represent and warrant to the other party
that they have had no dealings with any broker or agent in connection with this Lease. Tenant and
Landlord each covenant to pay, hold harmless, indemnify and defend the other party from and against
any and all costs, expenses or liability (including, without limitation, reasonable attorney’s
incurred by the other party) for any compensation, commissions and charges claimed by any broker
or agent with respect to this Lease or the negotiation thereof.

     Section 21.12 Landlord Means Owners. The term “Landlord” as used in this Lease, so far as covenants or obligations on the part
of the Landlord are concerned, shall be limited to mean and include only the owner or owners at the
time in question of the fee of the Leased Premises, and in the event of any transfer or transfers
of the title to such fee, Landlord herein named (and in case of any subsequent transfer or
conveyances, the then grantor) shall be automatically freed and relieved, from and after the date
of such transfer or conveyance, of all liability as respects the performance of any covenants or
obligations on the part of Landlord contained in this Lease thereafter to be performed; provided
that any funds in the hands of such

24

 

Landlord or the then grantor at the time of such transfer, in
which Tenant has an interest, shall be turned over to the grantee, and any amount then due and
payable to Tenant by Landlord or the then grantor under any provisions of this Lease shall be paid
to Tenant

     Section 21.13 Signs. Tenant may install exterior signs on or about the Leased Premises
without Landlord’s prior written approval, provided such signs comply with all applicable laws and
ordinances.

     Section 21.14 Force Majeure. Neither Landlord nor Tenant shall be deemed in default with
respect to any of the terms, covenants and conditions of this Lease on Landlord’s or Tenant’s part
to be performed, other than the failure to make any payment of money due hereunder and within the
reasonable control of the paying party, if such party’s failure to timely perform same is due in
whole or in part to any strike, lockout, labor trouble (whether legal or illegal), civil disorder,
failure of power, restrictive governmental laws and regulations, riots, insurrections, war,
shortages, accidents, casualties, acts of God, acts caused directly by the other party hereto or
such party’s agents, employees and invitees, or any other cause beyond the reasonable control of
Landlord or Tenant, as applicable (each, a “Force Majeure Event”).

     Section 21.15 Attorneys’ Fees. In the event of any litigation between Landlord and Tenant
with respect to this Lease, the non-prevailing party in such litigation shall pay the reasonable
attorneys’ fees and court costs and expenses of the prevailing party.

     Section 21.16 Execution of Lease. The submission of this document for examination and
negotiation does not constitute an offer to lease, or a reservation of, or option for, the Leased
Premises and this document shall become effective and binding only upon the execution and delivery
hereof by Tenant and by Landlord. All negotiations, considerations, representations and
understandings between Landlord and Tenant are incorporated herein.

ARTICLE XXII

RIGHT OF FIRST REFUSAL

     Section 22.1 Right of First Refusal. From and after the Commencement Date and during the term of this Lease (including any
Extension Terms), Tenant shall have the right of first refusal (the “ROFR”) and Landlord shall not
sell, transfer or otherwise dispose of all or part of Landlord’s interest in the Leased Premises
until and unless Landlord shall have (a) obtained a bona fide offer therefor from an unrelated and
independent third party (“Offeror”) (as evidenced by a signed Letter of Intent between Landlord and
said Offeror) ; (b) given notice to Tenant (the “Notice”), which Notice shall contain a copy of the
Letter of Intent which includes the following information: (i) the name of the Offeror, (ii) the
address of the Offeror, and (iii) the material terms and conditions of such bona fide offer; and
(c) offered to sell, transfer or otherwise disposal of such interest to Tenant at the same price
and, except as hereinafter provided, subject to same material terms and conditions contained in
said Letter of Intent. If Tenant shall either give notice of rejection of said offer or fail to
give notice of acceptance of the same within thirty (30) days after the date of receipt of the
Notice, Landlord’s interest in the Leased Premises may, during the one hundred eighty (180) days
thereafter, be sold, transferred or otherwise disposed of to the original offer or at the same
price and upon the same material terms and conditions contained in said bona fide offer as
disclosed in writing to Tenant. In the event Tenant rejects

25

 

said offer or fails to accept the
same, this Lease and all of its terms and conditions shall nevertheless remain in full force and
effect and Landlord and any purchaser or purchasers of the Leased Premises shall be bound thereby.
Any sale or transfer of Landlord’s interest in the Leased Premises shall be expressly made subject
to all of the terms, covenants and conditions of this Lease. Failure of Tenant to exercise this
ROFR on one or more occasions shall not affect Tenant’s right to exercise it on any subsequent
occasion. Any sale or transfer of the Leased Premises, or any part thereof, other than in strict
compliance with the terms of this Article XXII shall be absolutely null and void and of no
effect as to Tenant, and Tenant shall be entitled to purchase the Leased Premises from the
purchaser upon the same terms and conditions and at the same price specified in said bona fide
offer, provided Tenant notifies Landlord of its election thirty (30) days after receipt of Notice
which complies with the requirements hereof. In the event Tenant exercises its ROFR then Tenant
and Landlord shall negotiate in good faith to finalize a Purchase Agreement which includes all
material terms of the Letter of Intent (notwithstanding the terms of the Letter of Intent, the
Purchase Agreement shall provide that: (a) Landlord shall convey title by general warranty deed;
and (b) title to the Leased Premises shall be free and clear of any liens and encumbrances except
the lien for current Taxes which are not delinquent at the time of closing and such other
exceptions to title as have been agreed to in writing by Tenant and those set forth in Section
23.5. This Section shall not apply to transfer of the Leased Premises upon foreclosure of a
feehold mortgage or by deed in lieu of foreclosure of a feehold mortgage, and shall be null and
void upon the transfer of the Leased Premises upon foreclosure of a feehold mortgage or transfer of
the Leased Premises by deed in lieu of foreclosure of a feehold mortgage. If there is a foreclosure
or deed in lieu of foreclosure of a feehold mortgage, the transferee shall not be bound by any
rights of Tenant which might have accrued under this Article XXII prior to the foreclosure
or deed in lieu of foreclosure.

     Section 22.2 Good Faith Negotiation. In the event Tenant exercises its ROFR under Section
22.1 but fails to negotiate in good faith to enter into and close on a purchase agreement which
includes the material terms of the Letter of Intent, then notwithstanding anything contained in
this Article XXII to the contrary, Tenant’s ROFR under Section 22.1 shall be
forever terminated.

ARTICLE XXIII

PURCHASE OPTION

     In consideration of and as an inducement to Tenant to enter into this Lease, Landlord hereby
grants to Tenant the option to purchase the Leased Premises (the “Option”) on and subject to the
following terms and conditions:

     Section 23.1 Term. The term of the Option shall commence on the fifth (5th) anniversary of
the Commencement Date and shall continue and is irrevocable during the remainder of the term and
all Extension Terms of the Lease, subject to the terms of Section 23.4.

     Section 23.2 Purchase Price of the Leased Premises. The full purchase price of the Leased
Premises shall be the greater of: (i) $14,300,000.00 and (ii) ninety-five percent (95%) of the
“fair market value” of the Leased Premises (subject to an increase to one hundred percent (100%) of
the “fair market value” of the Leased Premises in accordance with the terms of Section
23.4), which amount shall be payable upon Closing (as hereinafter defined) if Tenant elects to
exercise the Option.

26

 

     Section 23.3 Definition of Fair Market Value. For purposes of this Article XXIII, the
term “fair market value” shall mean the following: the appraised value of the entire Leased
Premises (i.e. land and all improvements) based on a “willing seller/willing purchaser” standard
minus the appraised value of the improvements on the Leased Premises paid for by Tenant based on a
“willing seller/willing purchaser” standard. The fair market value shall be determined by an
appraiser chosen by the Landlord and Tenant within ten (10) days after Tenant’s notice of its
intent to exercise the Option. In the event the Landlord and Tenant cannot agree on an appraiser
within ten (10) days after Tenant’s notice of its intent to exercise the Option, within five (5)
days thereafter, Tenant shall choose one appraiser, and Landlord shall choose another appraiser.
These two appraisers shall choose a third appraiser within an additional ten (10) day period. All
three appraisers shall simultaneously submit their written appraisal within twenty (20) days after
the appointment of the third appraiser. The two appraisals closest in price shall be averaged to
determine the fair market value for purposes of this Section 23.4. For example, if the
three appraisals came in at the following values: $15.0 million; $17.0 million; and $18.0 million,
the fair market value would equal $17.5 million. In the event the three appraisals were spread
equally apart, then the average of all three appraisals would be used to establish value. For
example, if the three appraisals came in at the following values: $15.0 million; $16.0 million;
and $17.0 million, the fair market value would equal $16.0.

     Section 23.4 Exercise of Option. Provided Tenant shall not then be in default, Tenant may
exercise the Option by giving Landlord written notice thereof anytime during the initial term of
this Lease or during the term of any Extension Period. Notwithstanding the foregoing or anything
to the contrary in this Lease, in the event that, during the last year of the initial term of this
Lease or during the last year of the
term of any Extension Period, Tenant receives a Notice from Landlord which triggers Tenant’s
ROFR under Article XXII of this Lease (such period referred to as the “Option Freeze
Period”), the ROFR shall supersede the Option and the Option may not be exercised by Tenant. If
(i) Tenant refuses or fails to exercise an ROFR received during the Option Freeze Period and (ii)
the sale of the Leased Premises to the Offeror referenced in the Notice is consummated in
accordance with the requirements of Section 22.1, then this Lease and all of its terms and
conditions (including the ROFR and the Option) shall nevertheless remain in full force and effect
and Landlord and any purchaser or purchasers of the Leased Premises shall be bound thereby, with
the exception that the Option may be exercised by Tenant only during the last year of the initial
term of this Lease or during the last year of any Extension Period and at a purchase price of one
hundred percent (100%) of the “fair market value” of the Leased Premises. If (i) Tenant refuses or
fails to exercise an ROFR received during the Option Freeze Period and (ii) the sale of the Leased
Premises to the Offeror referenced in the Notice is not consummated, then Tenant’s right to
exercise the Option shall be reinstated and all of other terms and conditions (including the ROFR)
of the Lease shall remain in full force and effect.

     Section 23.5 Closing and Possession. The Closing shall occur at the office of the title
company located in Chicago, Illinois, on a date designated by Tenant but the Closing shall occur
within the later of (x) sixty (60) days after the date of Tenant’s notice that it is exercising the
Option and (y) forty-five (45) days after the establishment of the purchase price pursuant to
Section 23.2.

27

 

     Section 23.6 Condition of Title. Landlord shall convey title to the Leased Premises by
warranty deed, free and clear of all liens, encumbrances, mortgages, easements, conditions,
reservations and restrictions except: (1) those easements, conditions, reservations and
restrictions existing on the effective date of this Lease; (2) those easements, conditions,
reservations and restrictions imposed upon the Leased Premises with Tenant’s consent during the
term of this Lease; (3) liens for Taxes not yet due and payable; (4) this Lease (and any and all
subleases granted by Tenant); (5) that certain lease with Dynapac USA Inc. if not previously
terminated; (6) those exceptions to title which have been agreed to in writing by Tenant (7) any
title exceptions arising by reason of acts of the Purchaser. Landlord, at Tenant’s expense, shall
furnish Tenant a policy of title insurance written by a title insurer acceptable to Tenant insuring
the title to the Leased Premises, including all easements, free and clear of all defects except
those specifically mentioned herein.

     Section 23.7 Assignment of Option. An assignment of the Lease shall constitute an assignment
of this Option. Tenant may not retain this Option in the event it assigns this Lease, but such
assignee shall be entitled to exercise such Option.

[SIGNATURE PAGE FOLLOWS]

28

 

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

	 	 	 	 	 	 	 
	 	 	LANDLORD:	 	ARTHUR/BUSSE LIMITED PARTNERSHIP, an Illinois limited partnership
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/S/ Mathias A. Valentine
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Mathias Valentine
	 

	 	 	 	Its:
	 	Vice President, Arthur/Busse Properties, Inc., an
Illinois Corporation, as General Partner
	 
	 	 	 	 	 	 
	 	 	 	 	300 EAST TOUHY LIMITED PARTNERSHIP, an Illinois limited partnership
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/S/ Mathias A. Valentine
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Mathias Valentine
	 

	 	 	 	Its:
	 	Vice President, Touhy Properties, Inc., an Illinois Corporation,
as General Partner
	 
	 	 	 	 	 	 
	 	 	TENANT:	 	JOHN B. SANFILIPPO & SON, INC., a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/S/ William R. Pokrajac
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	William R. Pokrajac
	 

	 	 	 	Its:
	 	V.P. of Finance

 

 

EXHIBIT A

LEGAL DESCRIPTION

ALL OF THAT CERTAIN PARCEL OR TRACT OF LAND OUT OF THE TOREBIA HERRERA SURVEY NO. 68, CITY OF
SELMA, GUADALUPE COUNTY, TEXAS; BEING ALL OF LOT 1, BLOCK 1, MARK INDUSTRIES, A SUBDIVISION AS
RECORDED IN VOLUME 4, PAGE 237 OF THE PLAT RECORDS OF GUADALUPE COUNTY, TEXAS AND A PORTION OF A
102.00-ACRE TRACT AS CONVEYED TO MARK INDUSTRIES BY DEEDS RECORDED IN VOLUME 627, PAGE 44 OF THE
DEED RECORDS OF GUADALUPE COUNTY, TEXAS AND VOLUME 318, PAGE 152 OF THE DEED RECORDED OF COMAL
COUNTY, TEXAS; AND BEING MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS AS FOLLOWS:

BEGINNING at a 1/2” iron rod found on the northwest right-of-way line of Interstate Highway 35 at
the most southerly east corner of the above described Lot 1, said iron rod found also being the
most southerly corner of a 3.00-acre tract as conveyed to Ditch Witch Company of Central Texas,
Inc. by deed recorded in Volume 569, Page 288 of the Deed Records of Guadalupe County, Texas, for
the most southerly east corner and POINT OF BEGINNING of the herein described tract;

THENCE, with the northwest right-of-way line of Interstate Highway 35, the following two (2)
courses:

     1) S 60°19’41” W a distance of 263.22 feet to a concrete right-of-way monument found at an
angle point; and

     2) S 56°54’24” W a distance of 21.51 feet to a 1/2” iron rod set with cap stamped TERRA FIRMA
at the most easterly corner of a 5.789-acre tract for the most southerly corner of this tract;

THENCE, with the northeast line of said 5.789-acre tract, N 29°25’33” W a distance of 671.55 feet
to a 1/2” iron rod set with cap stamped TERRA FIRMA for an inside corner of this tract;

THENCE with the northwest line of said 5.789-acre tract along a chain link fence, S 60°13’17” W a
distance of 370.00 feet to a 1/2” iron rod set with cap stamped TERRA FIRMA at a fence corner post
on the northeast line of Lot 3, Block 1, Olympia Business Park, Unit-1, a subdivision as recorded
in Volume 4, Page 234 of the Plat Records of Guadalupe County, Texas for an outside corner of this
tract;

THENCE, with the northeast line of said Olympia Business Park, Unit-1, a 1.9513-acre tract as
conveyed to Snap-On Tools Corporation by deed recorded in Volume 713, Page 667 of the Official
Records of Guadalupe County, Texas and the remaining portion of a 88.238-acre tract as conveyed to
H.B. Zachry Properties, Inc. by deed recorded in Volume 482, Page 806 of the Deed Records of
Guadalupe County, Texas along a chain link fence, N 29°31’21” W a distance of 1144.91 feet to a
1/2” iron rod found at the most easterly corner of Lot 5, Block 1 of Olympia

 

 

Business Park Unit-5, a subdivision as recorded in Volume 5, Page 123-A of the Plat Records of
Guadalupe County, Texas for the most westerly corner of this tract;

THENCE, with a chain link fence, N 60°10’08” E, pass a point at the most westerly corner of said
Lot 1, Block 1, Mark Industries at 508.88 feet, and continuing on with the northwest line of said
Lot 1, Block 1, Mark Industries for a total distance of 1371.62 feet to a 1/2” iron rod at the most
southerly corner of a 6.225-acre tract as conveyed to Johanna A. and Alfred A. Wiley by deed
recorded in Volume 204, Page 846 of the Deed Records of Comal County, Texas;

THENCE, with the northwest line of said Lot 1, Block 1, Mark Industries, the following two (2)
courses:

     1) N 60°22’01” E a distance of 175.16 feet to a 1/2” iron rod set at an angle point; and

     2) N 60°13’17” E a distance of 179.36 feet to a 1/2” iron rod found for the most northerly
corner of this tract;

THENCE, with a northeast line of said Lot 1, Block 1, Mark Industries, the following three (3)
courses:

     1) S 29°49’35” E a distance of 562.30 feet to a 1/2” iron rod set at an angle point;

     2) S 30°04’01” E a distance of 466.93 feet to 1/2” iron rod found at an angle point; and

     3) S 28°52’38” E a distance of 123.35 feet to a 1/2” iron rod found at the most northerly
corner of a 2.7769-acre tract as conveyed to Jeanne E. and Paul H. King by deed recorded in Volume
903, Page 969 of the Deed Records of Guadalupe County, Texas, for the most easterly corner of this
tract;

THENCE, with the northwest line of said King 2.7769-acre tract and the northwest line of a
2.716-acre tract as conveyed to Paul King by deed recorded in Volume 531, Page 510 of the Deed
Records of Guadalupe County, Texas along a chain link fence, S 60°05’20” W a distance of 359.77
feet to a 1/2” iron rod found at the most westerly corner of said King 2.716-acre tract, said iron
rod found also being the most northerly corner of a 4.954-acre tract as conveyed to Beryl E.
Cudworth by deed recorded in Volume 418, Page 240 of the Deed Records of Guadalupe County, Texas;

THENCE, with the northwest line of said Cudworth 4.954-acre tract along a chain link fence, S
60°13’47” W a distance of 323.65 feet to a 1/2” iron rod found at the most westerly corner of said
Cudworth 4.954-acre tract, said iron rod found also being on the northeast line of a 3.339-acre
tract as conveyed to G.R.P. Properties, Inc. by deed recorded in Volume 712, Page 259 of the Deed
Records of Guadalupe County, Texas, for an outside corner of this tract;

31

 

THENCE, with the northeast line of said G.R.P. Properties 3.339-acre tract along a chain link
fence, N 30°05’07” W a distance of 25.03 feet to a 1/2” iron rod found for an inside corner of this
tract;

THENCE, with the northwest line of said G.R.P. Properties, Inc. 3.339-acre tract along a chain link
fence, S 60°10’03” W a distance of 208.99 feet to a 1/2” iron rod found at the most westerly corner
of said G.R.P. Properties, Inc. 3.339-acre tract, said iron rod found also being the most northerly
corner of said Ditch Witch Company of Central Texas, Inc. 3.00-acre tract;

THENCE, with the northwest line of said Ditch Witch Company of Central Texas, Inc. 3.00-acre tract
along a chain link fence, S 59°22’30” W a distance of 189.55 feet to a 1/2” iron rod set for an
inside corner of this tract;

THENCE, with the southwest line of said Ditch Witch Company of Central Texas, Inc. 3.00-acre tract
along a chain link fence, S 29°49’14” E a distance of 685.19 feet to the POINT OF BEGINNING, and
containing 49.801 acres of land, more or less.

Together with an Ingress and Egress Easement as described in the Deeds recorded in Volume 622, Page
610 and in Volume 627, Page 44 of the Deed Records of Guadalupe County, Texas.

32

 

EXHIBIT B

Form of Subordination, Non-Disturbance and Attornment Agreement

SUBORDINATION, NONDISTURBANCE AND ATTORNMENT AGREEMENT

     THIS SUBORDINATION, NONDISTURBANCE AND ATTORNMENTS AGREEMENT is made and entered into as of
the ___ day of ___, ___, by and
between ___ (“Lender”)
and JOHN B. SANFILIPPO & SON, INC., a Delaware corporation (“Tenant”).

RECITALS

     A. Lender
has agreed to make a loan (the “Loan”) to ___ (“Landlord”)
to be secured by a Deed of Trust, Assignment of Rents and Leases and Security Agreement (the “Deed
of Trust”) on certain real property consisting of approximately 49.801 acres together with all
improvements now located thereon (consisting of approximately 327,155 rentable square feet in area)
and located at 16435 Interstate Highway 35 North, Selma, Texas (the “Property”), which property is
more particularly described on attached Exhibit A. The parties acknowledge that the Deed
of Trust is being recorded concurrently with the recording of this instrument, or, if recording
information is hereafter inserted in this sentence, that the Deed of Trust was recorded in Volume
___, Page ___, of the Public Records of Guadalupe County, Texas on ___.
(The parties hereby authorize the title company to insert the appropriate Deed of Trust recording
information when available.)

     B. ___
(“Tenant”), and Landlord have entered into an Industrial Building
Lease dated ___, 2006 (the “Lease”), with respect to the Property (the “Leased
Premises”).

     C. Lender needs assurances from Tenant in order to make the Loan. Tenant is willing to give
those assurances if Lender will agree not to disturb Tenant’s possession of the Leased Premises so
long as Tenant is not in default under the Lease beyond any applicable notice and cure periods.
Tenant also understands that, in making the Loan, Lender will rely on the assurances and statements
made in this agreement.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:

     1. Subordination. Subject to the terms of Section 2 hereof, Tenant agrees
that the Lease, and the rights of Tenant in, to and under the Lease and the Property, are hereby
unconditionally subordinated, and shall remain in all respects and for all purposes unconditionally
subordinate, to the lien of the Deed of Trust and its terms, and to any and all renewals,
modifications and extensions of the Deed of Trust, and any and all other instruments held by Lender
as security for the Loan.

 

 

     2. Tenant Not To Be Disturbed. Lender agrees that, so long as Tenant is not in
default under the Lease (beyond any notice and cure period given Tenant by the terms of the Lease):

          a. Tenant’s possession of the Leased Premises shall not be disturbed by Lender in any
foreclosure or other proceedings brought to enforce the Deed of Trust; and

          b. Lender will not join Tenant as a party defendant in any action or proceeding foreclosing
the Deed of Trust unless such joinder is necessary to foreclose the Deed of Trust, and then only
for such purposes and not for the purpose of terminating the Lease.

     3. Tenant To Attorn To Lender. In the event that Lender shall acquire the Premises
upon foreclosure, or by deed in lieu of foreclosure, or by any other means:

          a. The Lease shall continue in full force and effect and Tenant shall be deemed to have made a
full and complete attornment to Lender as the landlord under the Lease so as to establish direct
privity between the Lender and Tenant; and

          b. All rights and obligations of Tenant under the Lease shall continue in full force and
effect and be enforceable by and against Tenant respectively with the same force and effect as if
the Lease had originally been made and entered into directly by and between Lender as the landlord
thereunder, and Tenant; and

          c. Lender shall recognize and accept the rights of Tenant and shall thereafter assume the
obligations of Landlord under the Lease

          If Lender becomes the owner of the Property, its liability and any recourse to it under the
Lease will be limited to Lender’s interest in the Property, and if Lender thereafter sells or
otherwise transfers its interest in the Property, Lender shall have no liability with respect to
obligations of the lessor under the Lease which arise following the sale or other transfer of the
Property by Lender

     4. Third-Party Owner. If someone acquires the Property through Lender, whether at a
trustee or foreclosure sale or otherwise, that person shall have the same rights to continue the
Lease as Lender and Tenant would have under this agreement.

     5. Covenants of Tenant. Tenant covenants as follows:

          a. Tenant shall pay to Lender all rent and other payments otherwise payable to Landlord under
the Lease upon written demand from Lender and notice thereof by Lender to Landlord.

          b. Tenant shall notify Lender if Landlord is in default under the Lease and will give Lender
the same period of time after receipt of such notice as set forth in the Lease with respect to
Landlord in which to cure the default, extended by such additional time as may be reasonable under
the circumstances so long as the Lender commences such cure within said period and diligently
pursues a cure, before Tenant invokes any of its remedies under the Lease.

34

 

     6. Assignment of Lease. Tenant understands that Landlord’s interest in the Lease has
been assigned to Lender in connection with the Loan. Until Lender becomes owner of the Property or
assumes or takes over the Lease or the operation of the Property, however, Lender assumes no duty,
liability or obligation to Tenant under the Lease.

     7. Costs and Attorneys Fees. In the event of any claim or dispute arising out of this
agreement, the party that substantially prevails shall be awarded, in addition to all other relief,
all reasonably attorneys’ fees and other costs and expenses incurred in connection with the claim
or dispute, including without limitation those fees, costs and expenses incurred before, during or
after suit, in any arbitration, in any appeal, in any proceedings under any present or future
bankruptcy act or state receivership, and in any post-judgment proceedings.

     8. Notices. Any notices under this agreement shall be sent by certified mail or by a
reputable overnight courier (e.g., Federal Express). Any notice sent to Lender or Tenant shall be
sent to Lender and Tenant at the address set forth below their respective signatures hereon. Each
mailed notice shall be deemed given three (3) days after its postmark when sent by certified mail,
or one (1) day after depositing with an overnight courier. Any party may change its address by
notice to the other party.

     9. Successors and Assigns. This agreement shall be binding upon and shall inure to
the benefit of the parties and their heirs, administrators, representatives, successors, and
assigns. Without limiting the generality of the foregoing, this agreement shall inure to the
benefit of Lender, its affiliates, successors and/or assigns.

     10. Miscellaneous. This agreement may not be modified except in writing executed by
the parties or their successors in interest. This agreement is governed by and is to be construed
in accordance with the law of the state in which the Property is located. This agreement may be
executed in counterparts, in which case all originals together shall constitute a single
instrument.

[signature page follows]

35

 

     IN WITNESS WHEREOF, this Subordination, Attornment and Non-Disturbance Agreement has been
signed and sealed on the day and year first above set fort

	 	 	 	 	 	 	 	 	 
	 	 	“LENDER”:
	 
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	BY:
	 	 	 	 	 	(SEAL)
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	ATTEST:
	 	 	 	 	 	(SEAL)
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	“TENANT”:
	 
	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	BY:
	 	 	 	 	 	(SEAL)
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	ATTEST:
	 	 	 	 	 	(SEAL)
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

 

 

	 	 	 	 	 
	STATE OF                     

	)	 	 	 
	 

	) SS:	 
	COUNTY OF                     

	)	 	 	 

     THE undersigned, a Notary Public in and for the County and State aforesaid, does hereby
certify that                                         , personally known to me to be the
                                         of                     , a                  
   
,
appeared before me this day in person and acknowledged under oath that in such capacity he signed
and delivered the said instrument pursuant to authority duly given to him by said corporation.

     GIVEN under my hand and seal this                  
    day of                                      
   , 200___.

	 	 	 
	My Commission Expires:                                         

	 	                                                            
	 

	 	                Notary Public

	 	 	 	 	 
	STATE OF                     

	 	)	 	 
	 

	 	) SS:

	COUNTY OF                     

	 	)	 	 

     THE undersigned, a Notary Public in and for the County and State aforesaid, does hereby
certify that                                         , personally known to me to be the
                                         of                     , a                     
,
appeared before me this day in person and acknowledged under oath that in such capacity he signed
and delivered the said instrument pursuant to authority duly given to him by said corporation.

     GIVEN under my hand and seal this                      day of               
                         
 , 200___.

	 	 	 
	My Commission Expires:                                         

	 	                                                            
	 

	 	                Notary Public

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	INDUSTRIAL BUILDING LEASE	 	 	2	 
	Article I GRANT, TERM, DEFINITIONS AND BASIC LEASE PROVISIONS	 	 	2	 
	     Section 1.1
	 	Grant	 	 	2	 
	     Section 1.2
	 	Term	 	 	2	 
	     Section 1.3
	 	Agent	 	 	2	 
	     Section 1.4
	 	Basic Lease Provisions	 	 	2	 
	Article II POSSESSION	 	 	3	 
	     Section 2.1
	 	Possession	 	 	3	 
	Article III PURPOSE	 	 	3	 
	     Section 3.1
	 	Purpose	 	 	3	 
	     Section 3.2
	 	Prohibition of Use	 	 	3	 
	Article IV RENT	 	 	3	 
	     Section 4.1
	 	Annual Base Rent	 	 	3	 
	     Section 4.2
	 	Penalty and Interest on Late Payments	 	 	3	 
	     Section 4.3
	 	Increases to Annual Gross Rent	 	 	4	 
	Article V IMPOSITIONS	 	 	4	 
	     Section 5.1
	 	Payment by Tenant	 	 	4	 
	     Section 5.2
	 	Alternative Taxes	 	 	4	 
	     Section 5.3
	 	Evidence of Payment	 	 	5	 
	     Section 5.4
	 	Right to Contest	 	 	5	 
	Article VI RISK ALLOCATION AND INSURANCE	 	 	5	 
	     Section 6.1
	 	Allocation of Risks	 	 	5	 
	     Section 6.2
	 	Tenant’s Insurance	 	 	6	 
	     Section 6.3
	 	Form of Insurance	 	 	7	 
	     Section 6.4
	 	Fire Protection	 	 	7	 
	Article VII DAMAGE OR DESTRUCTION	 	 	7	 
	     Section 7.1
	 	Tenant’s Obligation to Rebuild	 	 	7	 
	     Section 7.2
	 	Payment for Rebuilding	 	 	8	 
	     Section 7.3
	 	Excess Receipts by Depositary	 	 	8	 
	     Section 7.4
	 	Failure to Rebuild	 	 	8	 
	Article VIII CONDEMNATION	 	 	8	 
	     Section 8.1
	 	Taking of Whole	 	 	8	 
	     Section 8.2
	 	Partial Taking	 	 	9	 
	Article IX MAINTENANCE AND ALTERATIONS	 	 	9	 
	     Section 9.1
	 	Maintenance	 	 	9	 
	     Section 9.2
	 	Alterations	 	 	10	 
	     Section 9.3
	 	Indemnity	 	 	10	 
	Article X ASSIGNMENT AND SUBLETTING	 	 	10	 
	     Section 10.1
	 	Consent Required	 	 	10	 
	     Section 10.2
	 	Permitted Transfers	 	 	11	 
	     Section 10.3
	 	Other Transfer of Lease	 	 	11	 
	     Section 10.4
	 	Service Contracts	 	 	11	 
	Article XI LIENS AND ENCUMBRANCES	 	 	11	 

 

 

	 	 	 	 	 	 	 
	     Section 11.1
	 	Encumbering Title	 	 	11	 
	     Section 11.2
	 	Liens and Right to Contest	 	 	11	 
	Article XII UTILITIES	 	 	12	 
	     Section 12.1
	 	Utilities	 	 	12	 
	Article XIII intentionally deleted	 	 	12	 
	Article XIV RIGHTS RESERVED TO LANDLORD	 	 	12	 
	     Section 14.1
	 	Rights Reserved to Landlord	 	 	12	 
	Article XV QUIET ENJOYMENT	 	 	12	 
	     Section 15.1
	 	Quiet Enjoyment	 	 	12	 
	Article XVI SUBORDINATION OR SUPERIORITY	 	 	13	 
	     Section 16.1
	 	Subordination or Superiority	 	 	13	 
	Article XVII SURRENDER	 	 	13	 
	     Section 17.1
	 	Surrender	 	 	13	 
	     Section 17.2
	 	Removal of Tenant’s Property	 	 	13	 
	     Section 17.3
	 	Holding Over	 	 	14	 
	Article XVIII ENVIRONMENTAL CONDITIONS	 	 	14	 
	     Section 18.1
	 	Defined Terms	 	 	14	 
	     Section 18.2
	 	Tenant's Covenants with Respect to Environmental Matters	 	 	15	 
	     Section 18.3
	 	Pre-Existing Conditions	 	 	16	 
	     Section 18.4
	 	Rights of Inspection	 	 	16	 
	     Section 18.5
	 	Copies of Notices	 	 	17	 
	     Section 18.6
	 	Tests and Reports	 	 	17	 
	     Section 18.7
	 	Indemnification	 	 	17	 
	     Section 18.8
	 	No Liability of Landlord	 	 	18	 
	Article XIX REMEDIES	 	 	18	 
	     Section 19.1
	 	Defaults	 	 	18	 
	     Section 19.2
	 	Remedies	 	 	19	 
	     Section 19.3
	 	Tenant’s Opportunity to Cure	 	 	20	 
	     Section 19.4
	 	Landlord’s Right to Cure	 	 	20	 
	     Section 19.5
	 	Remedies Cumulative	 	 	21	 
	     Section 19.6
	 	No Waiver	 	 	21	 
	Article XX OPTION TO EXTEND	 	 	21	 
	     Section 20.1
	 	Option to Extend	 	 	21	 
	     Section 20.2
	 	Prevailing Market Rate	 	 	21	 
	Article XXI MISCELLANEOUS	 	 	23	 
	     Section 21.1
	 	Estoppel Certificates	 	 	23	 
	     Section 21.2
	 	Amendments Must Be in Writing	 	 	23	 
	     Section 21.3
	 	Notices	 	 	23	 
	     Section 21.4
	 	Short Form Lease	 	 	23	 
	     Section 21.5
	 	Time of Essence	 	 	24	 
	     Section 21.6
	 	Relationship of Parties	 	 	24	 
	     Section 21.7
	 	Captions	 	 	24	 
	     Section 21.8
	 	Severability	 	 	24	 
	     Section 21.9
	 	Law Applicable	 	 	24	 
	     Section 21.10
	 	Covenants Binding on Successors	 	 	24	 
	     Section 21.11
	 	Brokerage	 	 	24	 

39

 

	 	 	 	 	 	 	 
	     Section 21.12
	 	Landlord Means Owners	 	 	24	 
	     Section 21.13
	 	Signs	 	 	25	 
	     Section 21.14
	 	Force Majeure	 	 	25	 
	     Section 21.15
	 	Attorneys’ Fees	 	 	25	 
	     Section 21.16
	 	Execution of Lease	 	 	25	 
	Article XXII RIGHT OF FIRST REFUSAL	 	 	25	 
	     Section 22.1
	 	Right of First Refusal	 	 	25	 
	     Section 22.2
	 	Good Faith Negotiation	 	 	26	 
	Article XXIII PURCHASE OPTION	 	 	26	 
	     Section 23.1
	 	Term	 	 	26	 
	     Section 23.2
	 	Purchase Price of the Leased Premises	 	 	26	 
	     Section 23.3
	 	Definition of Fair Market Value	 	 	27	 
	     Section 23.4
	 	Exercise of Option	 	 	27	 
	     Section 23.5
	 	Closing and Possession	 	 	27	 
	     Section 23.6
	 	Condition of Title	 	 	28	 
	     Section 23.7
	 	Assignment of Option	 	 	28	 

Exhibits:

Exhibit A — Legal Description

Exhibit B — Form of Subordination, Non-Disturbance and Attornment Agreement

40exv4w2

 

Exhibit 4.2

EXECUTION

SUBSCRIPTION AGREEMENT

     THIS SUBSCRIPTION AGREEMENT is made effective this 17th day of November, 2005, by and between
US BioEnergy Corporation, a South Dakota corporation (the “Company”) and CHS Inc., a Minnesota
corporation (“CHS”).

WITNESSETH:

     In consideration of the mutual promises contained here, and other good and valuable
consideration, the Company and CHS hereby agree as follows:

     1. Purchase and Delivery. Subject to the terms and conditions of this Agreement, the
Company sells to CHS and CHS purchases from the Company as of the Closing Date (as defined below)
35,000,000 shares of Class A Common Stock, $.01 par value of the Company (the “Class A Stock”) at a
purchase price of $1.00 per share for an aggregate purchase price of $35,000,000.

     2. Closing.

     (a) Closing Date. The closing of the transactions contemplated by this Agreement (the
“Closing”) shall take place at the offices of Lindquist & Vennum, 80 South Eighth Street, Suite
4200, Minneapolis, Minnesota 55402 or at such other place as may be mutually acceptable to the
parties. The Closing shall occur as of 12:01 a.m. on the date of this Agreement or such other
different time or day as may be mutually acceptable to CHS and the Company (the “Closing Date”).

     (b) Closing Procedures. At the Closing, the Company will deliver to CHS a certificate
representing the Class A Stock purchased by CHS dated the Closing Date and registered in the name
of CHS. At the Closing, CHS shall deliver the aggregate price for the Class A Stock stated in
Section 1 by wire transfer on the Closing Date to an account designated by the Company.

     3. Certain Representations of CHS. In order to induce the Company to sell the Class A
Stock to CHS, CHS hereby represents and warrants to the Company as of the Closing Date as follows:

     (a) Securities Representations.

          (i) Information About the Company. CHS has received and fully reviewed the Amended
and Restated Confidential Private Placement Memorandum dated May 31, 2005, including all appendices
or exhibits thereto (the “Memorandum”). CHS acknowledges and understands that the Memorandum
speaks only as of May 31, 2005 and does not contain all of the information that the Company would
be obligated to include in a registration statement filed with the Securities and Exchange
Commission (the “Commission”). CHS has had an opportunity to obtain, and has received, from the
Company such additional information regarding the terms and conditions of the sale of securities by
this Agreement as it deemed necessary. CHS has had an opportunity to ask such questions of, and
receive answers from, the Company regarding the terms and conditions of the sale of securities by
this Agreement to the extent deemed necessary by CHS. CHS believes it has sufficient knowledge
about the business, management and financial affairs of the Company and the terms and conditions of
the purchase of the Class A Stock contemplated hereby. Without limiting the generality of the
foregoing, CHS understands that the Company is a recently formed development stage company with
virtually no operating history, has incurred a substantial loss since its inception and may
continue to lose money and will be required to obtain substantial additional debt financing before
it can begin construction on and operation of any of its proposed ethanol plants.

 

 

EXECUTION

          (ii) High Degree of Risk. CHS acknowledges that an investment in the Class A Stock
involves a high degree of risk, including, but not limited to, the risk that CHS may receive no
return on its investment in the Class A Stock and the risk that CHS may of lose its entire
investment in the Company. CHS is able to bear the economic risk of investment in the Class A
Stock, including the total loss of such investment.

          (iii) No Market for Class A Stock; Restrictions on Transfer. CHS acknowledges that
(A) there are substantial restrictions on the transfer of the Class A Stock, both under the
Securities Act of 1933, as amended (the “Act”) and applicable state securities laws (the “State
Laws”); (B) there is not currently, and it is unlikely that in the future there will exist, a
public market for the Class A Stock; and (C) accordingly, for the above and other reasons, CHS may
not be able to liquidate an investment in the Class A Stock for an indefinite period. CHS realizes
that the Class A Stock has not been registered for sale under the Act or State Laws. CHS
acknowledges and agrees that the Class A Stock may be resold only pursuant to registration under
the Act and the State Laws, or an opinion of counsel acceptable to the Company that such
registration is not required.

          (iv) Suitability. CHS believes that an investment in the Class A Stock is suitable
for CHS based upon CHS’s investment objectives and financial needs, and CHS has adequate means for
providing for its current financial needs and particular contingencies and has no need for
liquidity of investment with respect to the Class A Stock. CHS has such knowledge and experience
in financial and business matters that it is capable of evaluating the merits and risks of an
investment in the Class A Stock and CHS has obtained, to the extent CHS deems necessary, its own
professional advice with respect to the risks inherent in an investment in the Class A Stock, and
the suitability of an investment in the Class A Stock in light of CHS’s financial condition and
investment needs.

          (v) Investment Intent. CHS has been advised that the Class A Stock is not being
registered under the Act or the State Laws and is being offered and sold pursuant to exemptions
from such laws and that the Company’s reliance upon such exemptions is predicated in part on CHS’s
representations as contained herein. CHS is purchasing the Class A Stock for its own account for
investment and without the intention of reselling or redistributing the same. CHS has made no
agreement with any other party regarding the sale, transfer, assignment, pledge or hypothecation of
the Class A Stock and CHS’s financial condition is such that it is not likely that it will be
necessary to dispose of any of the Class A Stock in the foreseeable future. CHS is aware that, in
the view of the Commission, the purchase of the Class A Stock with an intent to resell by reason of
any foreseeable specific contingency or anticipated change in market values, or any change in the
condition of the Company, or in connection with a contemplated liquidation or settlement of any
loan obtained for the acquisition of the Class A Stock and for which the Class A Stock was pledged
as security, would represent an intent inconsistent with the representations set forth above. CHS
further represents and agrees that if, contrary to the foregoing stated intentions, CHS should
later desire to dispose of or transfer any of the Class A Stock in any it will not do so without
first obtaining (A) the opinion of counsel satisfactory to the Company that such proposed
disposition or transfer lawfully may be made without the registration of the Class A Stock pursuant
to the Act and the State Laws, or (B) such registration (it being expressly understood that the
Company shall not have any obligation to register such Class A Stock for such purpose).

          (vi) No General Solicitation. CHS has not received any general solicitation or
general advertising (including communications published in any newspaper, magazine or other
broadcast) in connection with its purchase of the Class A Stock. CHS has not engaged in any public
solicitation or advertisement with respect to the Class A Stock. To the extent that CHS received
information from Roland “Ron” J. Fagen, Gordon W. Ommen, Steven P. Myers, O. Wayne Mitchell, Brian
Thome, Chad D. Hatch, Jill L. Wilts or Jennifer A. Johnson acting as officers of the Company, CHS
acknowledges that such individuals are acting strictly in their capacity as officers of the
Company, and not as employees or

2

 

EXECUTION

agents of Capitaline Advisors, LLC, Global Ethanol, Inc., Fagen, Inc., US Bio Resource Group,
LLC or any other entity.

          (vii) Domicile. CHS is duly organized under the laws of, and is in good standing in,
the state of Minnesota. CHS has its principal office within the state of Minnesota.

          (viii) Qualification as an Accredited Investor. CHS is an “accredited investor” as
that term is defined by Rule 501 under the Act. CHS was not organized for the specific purpose of
acquiring the Class A Stock.

     (b) Brokers or Finders. The Company has not, and will not, incur, directly or
indirectly, as a result of any action taken by CHS, any liability for brokerage or finders’ fees or
agents’ commissions or any similar charges in connection with this Agreement.

     (c) Tax Liability. CHS has reviewed with CHS’s own tax advisors the tax consequences
of an investment in the Class A Stock and the transactions contemplated by this Agreement, and has
and will rely solely on such advisors and not on any statements or representations of the Company
or any of its agents. CHS understands that CHS (and not the Company) shall be responsible for
CHS’s own tax liability that may arise as a result of its investment in the Class A Stock or the
transactions contemplated by this Agreement.

     (d) Dilution. CHS acknowledges that the offering price per share materially exceeds
amounts paid by some prior purchasers of the Company’s securities and that CHS will experience
substantial dilution in the per share book net tangible book value of the Class A Stock.

     (e) Counsel. CHS acknowledges that Lindquist & Vennum P.L.L.P. is legal counsel to
the Company, whose interests are in conflict with those of CHS, and that Lindquist & Vennum
P.L.L.P., as counsel for the Company, does not represent CHS or CHS’s interests in connection with
the purchase of the Class A Stock, and that CHS has had timely opportunity to have CHS’s own legal
counsel advise CHS regarding the purchase of the Class A Stock.

     (f) Due Authorization. This Agreement has been duly authorized by all necessary
action on the part of CHS, has been duly executed by an authorized officer or representative of
CHS, and is a legal, valid, and binding obligation of CHS enforceable in accordance with its terms.
The execution and delivery of this Agreement and the consummation of the transactions contemplated
hereby do not and will not violate or conflict with the articles of incorporation or by-laws of CHS
or violate any legal requirement or order applicable to CHS.

     4. Lock-Up. CHS agrees that, if requested by the Company or the managing underwriter
of any initial public offering by the Company of the Class A Stock or other securities of the
Company pursuant to a registration statement filed with the Commission under the Act (an “IPO”),
CHS shall not sell publicly or otherwise transfer or dispose of any securities of the Company held
by CHS for a specified period of time (not to exceed 180 days) following the effective date of such
registration statement (the “IPO Date”). CHS shall execute such lock-up agreements as the Company
or the managing underwriter may reasonably require in connection with this Section 4.

     5. Restrictive Legend. CHS also acknowledges and agrees that the Company shall place
a restrictive legend on any certificate representing any of the Class A Stock containing
substantially the following language:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND HAVE NOT

3

 

EXECUTION

BEEN REGISTERED UNDER ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, OR
TRANSFERRED IN THE ABSENCE OF EITHER AN EFFECTIVE REGISTRATION UNDER THE SECURITIES ACT OF
1933, AS AMENDED, AND UNDER APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND UNDER APPLICABLE STATE SECURITIES LAWS.

     CHS agrees that, to enforce the above legend, the Company may place a stop transfer order with
its registrar and transfer agent covering all certificates representing any of the Class A Stock.

     6. Non-Solicitation. Notwithstanding Section 8(b), as long as CHS (a) has the right
to appoint at least one director to the Board of Directors of the Company (the “Board”) and (b) CHS
beneficially owns less than 30% of the outstanding voting securities of the Company, CHS will not,
without the prior approval of the Board, directly or indirectly, initiate, propose, make or
participate in any solicitation of proxies (other than granting its proxy) to vote, or seek to
influence any person with respect to for any candidate for election to the Board; provided
that CHS shall not be prohibited from voting any Class A Stock owned by it for any candidate
for election to the Board.

     7. Certain Representations of the Company. In order to induce CHS to purchase the
Class A Stock from the Company, the Company hereby represents and warrants to CHS as of the Closing
Date follows:

     (a) Capitalization. The authorized shares of capital stock of the Company consist of
475,000,000 shares, of which there are authorized 400,000,000 shares Class A Stock, 25,000,000
shares of Class B Common Stock, $0.01 par value per share (the “Class B Stock”) and 50,000,000
shares of Preferred Stock, $0.01 par value per share (the “Preferred Stock”). There are 88,360,500
shares of Class A Stock, no shares of Class B Stock and no shares of Preferred Stock issued and
outstanding. Attached to this Agreement at Schedule 7(a) is a true and accurate list of all
of the owners of shares of capital stock, or rights to acquire shares of capital stock, of the
Company and the number of shares owned or which each person may acquire. Except as stated above or
in Schedule 7(a), there is no capital stock, nor rights to acquire capital stock of the
Company authorized or issued and outstanding.

     (b) Status of Capital Stock. All of the issued and outstanding Class A Stock of the
Company has been duly and validly authorized and issued and is fully paid and non-assessable, and
has not been issued in violation of any preemptive or similar rights of any stockholder or any
applicable securities law. There are no preemptive or similar rights in respect of any capital
stock of the Company.

     (c) Organization and Authority. The Company is a corporation duly organized, validly
existing and in good standing under the laws of South Dakota and has all requisite corporate power
and authority to own, lease and operate its properties and to conduct its business as currently
conducted. The Company and of its subsidiaries is in good standing in each jurisdiction shown in
Schedule 7(c), and neither the Company nor any subsidiary is required to qualify to do
business as a foreign corporation in any other jurisdiction in which the failure to so qualify
would have a material adverse effect. For purposes of this Agreement, “subsidiary” includes any
corporation, partnership, limited liability company, joint venture, association or other
unincorporated organization or entity, in which the Company owns, directly or indirectly, 50% of
the outstanding voting power or equity interest therein.

     (d) Due Authorization. The Company has all requisite power and authority under
applicable law to execute and deliver this Agreement and to perform the transactions contemplated
hereby. Other than the approval of the Company’s Board of Directors, which approval has been
obtained, no other approval of any kind is necessary under applicable law for the execution,
delivery and performance of this

4

 

EXECUTION

Agreement. This Agreement constitutes a legal, valid and binding obligation of the Company,
enforceable in accordance with its terms, subject to general limitations on the availability of
equitable remedies and the effect of bankruptcy, insolvency, reorganization and other laws of
general application affecting the enforcement of creditors’ rights.

     (e) No Violation. The execution and delivery of this Agreement and the consummation
of the transactions contemplated hereby do not and will not violate or conflict with the articles
of incorporation or by-laws of the Company or any subsidiary, or violate any legal requirement or
order applicable to the Company or any subsidiary. The execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby do not and will not require any
third-party action with respect to the Company or any subsidiary under, or conflict with or
constitute a default under, or result in the acceleration or right of acceleration of any
obligations, or any termination or right of termination under, as of the date hereof or as of the
Closing Date, any contract. The execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby do not and will not result in the creation or imposition of
any material lien, claim, charge, restriction, equity or encumbrance of any kind upon or give any
person any interest or right in or with respect to any of the properties, assets, business or
contracts of the Company or any subsidiary, or to any of the Class A Stock.

     8. Covenants of the Company.

     (a) Financial Information. The Company shall deliver to CHS: (i) on or before 30 days
following the end of each month, unaudited financial statements for the month then-ended and (ii)
on or before 120 days following the Company’s fiscal year end, audited financial statements of the
Company and its subsidiaries for the fiscal year then-ended, including a consolidated balance
sheet, consolidated statement of earnings, consolidated statement of capital and consolidated
statement of cash flow. The obligations of the Company pursuant to this paragraph will terminate
immediately upon the IPO Date.

     (b) Appointments.

     (i) Appointment of Directors; Committee Members and Managers. For so long as
CHS beneficially owns (A) at least 15% but less than 25% of the outstanding Class A Stock,
CHS shall have the right to appoint one director to serve on the Board of Directors of the
Company (the “Board”); (B) at least 25% of the outstanding Class A Stock, CHS shall have the
right to appoint two directors to serve on the Board; and (C) at least 15% of the
outstanding Class A Stock, CHS shall have the right to appoint one person CHS has also
appointed to serve as a director of the Board to serve as a member on the Executive
Committee to the Board (the “Executive Committee”) and as a member of the Board of Managers
of each of US Bio Albert City, LLC, Superior Corn Products, LLC and United Bio Energy, LLC
(collectively, the “Boards of Managers”).

     (ii) Termination of Right. The appointment rights granted by Section 8(b)(i)
shall terminate upon, and all persons appointed by CHS pursuant to Section 8(b)(i) shall
serve until, the first meeting of stockholders of the Company following the IPO Date;
provided that the Company shall have no obligation to nominate a person appointed by
CHS for election as a director of the Company at the first meeting of stockholders of the
Company following the IPO Date.

     (iii) Rights With Respect to Appointments; Cooperation. So long as CHS is
entitled to appoint a director, committee member or manager pursuant to Section 8(b)(i), (A)
any vacancy on the Board, Executive Committee or Boards of Managers created by the
resignation, removal, incapacity or death of any person appointed by CHS shall be filled by
CHS; (B) the Company shall promptly take any and all actions in its power necessary to cause
the election, appointment

5

 

EXECUTION

or removal, as directed by CHS, of any person appointed by CHS to the Board, the
Executive Committee or the Boards of Managers, as the case may be; and (C) the Company shall
use its best efforts to cause the person(s) appointed by CHS to be elected as a director of
the Company at any and all meetings of stockholders at which directors are required to be
elected under South Dakota law and shall use its best efforts to cause the person appointed
by CHS to be elected as a member of the Executive Committee and the Boards of Managers.

     (iv) Status of Appointees. The persons appointed by CHS pursuant to Section
8(b)(i) shall have the same powers, privileges, rights and immunities as other members of
the Board, the Executive Committee or the Boards of Managers, as the case may be.

     (v) Initial Board Appointees. The parties agree that CHS beneficially owns
28.37% of the outstanding Class A Stock immediately as of the Closing Date after giving
effect to the transactions contemplated by this Agreement. As of the Closing Date and
pursuant to its rights under Section 8(b)(i), the two directors appointed by CHS to the
Board shall initially be Dennis Wendland and Donald Olson and, of these two directors,
Dennis Wendland shall initially be appointed to the Executive Committee and the Boards of
Managers.

     (c) Delivery of Proxies. The Company shall cause a proxy in the form attached hereto
as Schedule 8(c) to be delivered as of the Closing Date by the following stockholders of
the Company: US Bio Resource Group, LLC and Fagen Management, LLC. In addition, the Company shall
cause a proxy in the form attached hereto as Schedule 8(c) to be delivered as of the
Closing Date by the following holders of options to purchase Class A stock of the Company:
Capitaline Advisors, LLC and Global Ethanol, Inc.

     9. Miscellaneous.

     (a) Survival of Representations and Warranties; Indemnification. The parties agree
that the agreements, representations and warranties of each party shall survive and remain in full
force and effect after the execution of this Agreement and after payment for and delivery of the
Class A Stock. Each party agrees to indemnify and hold harmless the other party from and against
any and all loss, damage or liability due to, or arising out of, a breach of any agreement,
representation or warranty of this Agreement by such party.

     (b) No Assignment; Binding Effect. Neither this Agreement, nor any interest herein,
shall be assignable by either party without prior written consent of the other. The provisions of
this Agreement shall be binding upon and inure to the benefit of the parties hereto, and their
respective successors and assigns.

     (c) Choice of Law. This Agreement shall be construed and interpreted in accordance
with South Dakota law, without regard to its choice of law or conflicts of law provisions.

     (d) Notices. All notices, requests, consents and other communications required or
permitted hereunder shall be in writing and shall be delivered, personally, by facsimile, by
overnight courier or mailed first-class postage prepaid, registered or certified mail,

6

 

EXECUTION

	 	 	 	 	 	 	 
	if to CHS:

	 	CHS Inc.
	 	with copy to:
	 	Lisa A. Zell, Esq.
	 

	 	5500 Cenex Drive
	 	 	 	CHS Inc.
	 

	 	Inver Grove Heights, MN 55077
	 	 	 	5500 Cenex Drive
	 

	 	Facsimile: 651-355-4905
	 	 	 	Inver Grove Heights, MN 55077
	 

	 	Attn: Jay Debertin
	 	 	 	Facsimile: (651) 355-4554
	 
	 	 	 	 	 	 
	if to the Company:

	 	US BioEnergy Corporation
	 	with copy to:
	 	April Hamlin, Esq.
	 

	 	111 Main Avenue Suite 200
	 	 	 	Lindquist & Vennum P.L.L.P.
	 

	 	Brookings, SD 57006
	 	 	 	4200 IDS Center
	 

	 	Facsimile: (605) 696-3153
	 	 	 	80 South 8th Street
	 

	 	Attn: Gordon Ommen
	 	 	 	Minneapolis, MN 55402
	 

	 	 	 	 	 	Facsimile: (612) 371-3207

and such notices and other communications shall for all purposes of this Agreement be treated as
being effective or having been given (i) upon personal delivery to the party to be notified, (ii)
when sent by confirmed telex or facsimile if sent during normal business hours of the recipient, if
not, then on the next business day; (iii) five days after having been sent by registered or
certified mail, return receipt requested, postage prepaid; or (iv) one day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with written verification of
receipt.

     (e) Counterparts. This Agreement may be executed concurrently in two or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

7

 

EXECUTION

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	US BIOENERGY CORPORATION

 	 
	 	By:  	/s/ GORDON OMMEN
 	 
	 	 	Its: President 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	CHS INC.

 	 
	 	By:  	/s/ JAY D. DEBERTIN
 	 
	 	 	Its: Executive V.P. and C.O.O. 	 
	 	 	 	 

8

 

EXECUTION

	 	 	 	 	 

Schedules to Subscription Agreement between US BioEnergy Corporation and CHS Inc.

1

 

EXECUTION

Schedule 7(a) – Capitalization

US BioEnergy Corporation Class A Common Stock Ledger

	 	 	 	 	 	 	 	 	 
	Cert.	 	 	 	 
	No.	 	Name of Shareholders	 	Number of Shares
	 	26	 	 	Charles or Peggy Armbruster
	 	 	50,000	 
	 	27	 	 	K. Mitchell Bane
	 	 	50,000	 
	 	28	 	 	Earl T. or Mary H. Barks
	 	 	50,000	 
	 	29	 	 	Kevin L. Brodbeck
	 	 	50,000	 
	 	30	 	 	Larry D. Brodbeck or Marie A. Brodbeck
	 	 	50,000	 
	 	31	 	 	Tim or Tammy Brodbeck
	 	 	50,000	 
	 	32	 	 	Car Farms
	 	 	50,000	 
	 	33	 	 	Gerald and
Patricia Clark
	 	 	50,000	 
	 	35	 	 	Doug D. or Susan L. Flessner
	 	 	50,000	 
	 	36	 	 	Brian and Becky Haskin
	 	 	100,000	 
	 	37	 	 	Robert M. Lund
	 	 	50,000	 
	 	38	 	 	Main Crop Ins.
	 	 	50,000	 
	 	39	 	 	Phil and Jane McClelland
	 	 	100,000	 
	 	40	 	 	MCM Holding Co., LLC
	 	 	100,000	 
	 	41	 	 	Schlicht Farms
	 	 	50,000	 
	 	42	 	 	Trustee of the Living Trust of Stephen J. Spitzley dated April 16, 1997
	 	 	50,000	 
	 	43	 	 	Timothy A. Spitzley or Emmy Jo Spitzley
	 	 	50,000	 
	 	44	 	 	Frank Stoick
	 	 	50,000	 
	 	45	 	 	Robert D. Zeeb
	 	 	50,000	 
	 	46	 	 	James E. Zook Living Trust
	 	 	50,000	 
	 	47	 	 	Kevin L. Brodbeck
	 	 	100,000	 
	 	48	 	 	Timothy A. Brodbeck
	 	 	100,000	 
	 	49	 	 	James E. Zook Living Trust
	 	 	100,000	 
	 	50	 	 	Fagen Management, LLC
	 	 	2,000,000	 
	 	51	 	 	David J. Vander Griend
	 	 	1,650,000	 
	 	52	 	 	Jeffrey Roskam
	 	 	1,050,000	 
	 	53	 	 	Randall Ives
	 	 	300,000	 
	 	54	 	 	Larry D. Brodbeck and Marie A. Brodbeck
	 	 	94,000	 
	 	55	 	 	Tim A. Brodbeck and Tammara Jo Brodbeck
	 	 	100,000	 
	 	56	 	 	Kevin L. Brodbeck
	 	 	100,000	 
	 	57	 	 	US Bio Resource Group, LLC
	 	 	14,537,877	 
	 	60	 	 	US Bio Resource Group, LLC
	 	 	4,462,123	 
	 	61	 	 	US Bio Resource Group, LLC
	 	 	6,000,000	 
	 	62	 	 	Jerry and Linda Collison
	 	 	50,000	 
	 	63	 	 	Nathan W. Anderson
	 	 	100,000	 
	 	64	 	 	Steve A. Christensen
	 	 	7,500	 
	 	65	 	 	Nancy C. Crabtree
	 	 	50,000	 
	 	66	 	 	Michelle Davis
	 	 	5,000	 
	 	67	 	 	Christopher Demitras
	 	 	5,000	 
	 	68	 	 	David E. Dykstra
	 	 	50,000	 
	 	69	 	 	Chad Haselhorst
	 	 	32,500	 
	 	70	 	 	Richard Kranick
	 	 	15,000	 
	 	71	 	 	Gregory P. Krissek
	 	 	5,000	 
	 	72	 	 	Kristi Lee
	 	 	15,000	 
	 	73	 	 	Michael F. Malecha
	 	 	5,000	 
	 	74	 	 	Anita L. Mead
	 	 	5,000	 
	 	75	 	 	Joshua L. Morrill
	 	 	21,500	 
	 	76	 	 	W. Craig Palmer
	 	 	10,000	 
	 	77	 	 	John F. Van Meter
	 	 	5,000	 
	 	 	 	 	Albert City Elevator
	 	 	2,000,000	 
	 	 	 	 	Paul Cherniawski
	 	 	100,000	 
	 	 	 	 	Mark S. Hop
	 	 	50,000	 
	 	 	 	 	John and Judith Locke
	 	 	75,000	 
	 	 	 	 	Gordon L. Walkington and Jane L. Walkington
	 	 	400,000	 
	 	 	 	 	Thomas M. Simon and Germaine I. Simon
	 	 	75,000	 
	 	 	 	 	Edward D. Pylman
	 	 	50,000	 
	 	 	 	 	Earl T. or Mary H. Barks
	 	 	100,000	 
	 	 	 	 	Richard T. Cramer and Judy A. Cramer
	 	 	50,000	 
	 	 	 	 	Ronald L. Spitzley
	 	 	50,000	 
	 	 	 	 	Alvin R. Spitzley or Rosemary K. Spitzley
	 	 	50,000	 
	 	 	 	 	Arnold Morren
	 	 	100,000	 
	 	 	 	 	Bruce Pline and Irene Pline
	 	 	50,000	 
	 	 	 	 	Stephen J. Spitzley and Vikki E. Spitzley
	 	 	50,000	 
	 	 	 	 	Thomas M. Parker and Susanne K. Parker
	 	 	50,000	 
	 	 	 	 	Jay Barnhart and Robin Barnhart
	 	 	50,000	 
	 	 	 	 	Dale J. Wawersik
	 	 	100,000	 
	 	 	 	 	MCM Holding Co., LLC
	 	 	400,000	 
	 	 	 	 	James E. Voisinet
	 	 	50,000	 
	 	 	 	 	Jack E.Shattuck
	 	 	100,000	 
	 	 	 	 	George M. Young and Elizabeth P. Young
	 	 	100,000	 
	 	 	 	 	Kent J. Haase and Lisa M. Haase
	 	 	100,000	 
	 	 	 	 	William Boehme
	 	 	500,000	 
	 	 	 	 	Douglas D. and Susan L. Flessner
	 	 	50,000	 
	 	 	 	 	Brady Hill Farms, LLC
	 	 	50,000	 
	 	 	 	 	Marlene K. and Carroll H. Wamhoff
	 	 	50,000	 
	 	 	 	 	Wesley DeMots
	 	 	100,000	 
	 	 	 	 	Dave Crumbaugh
	 	 	125,000	 
	 	 	 	 	Todd or Diane Olson
	 	 	125,000	 
	 	 	 	 	Brian Haskin and Rebecca L. Haskin
	 	 	50,000	 
	 	 	 	 	Timothy A. Spitzley and Emmy Jo Spitzley
	 	 	50,000	 
	 	 	 	 	Warren Eicher and Sylvia Eicher
	 	 	150,000	 
	 	 	 	 	Steven L. Snortum and Jeri J. Bundy Snortum
	 	 	75,000	 
	 	 	 	 	Kevin L. Brodbeck
	 	 	175,000	 
	 	 	 	 	Timmerman Farms, LLC
	 	 	100,000	 
	 	 	 	 	Larry D. Brodbeck and Marie A. Brodbeck
	 	 	100,000	 
	 	 	 	 	Roger L. Lerg and Kimberlee M. Lerg
	 	 	50,000	 
	 	 	 	 	Patrick J. Feldpausch
	 	 	50,000	 
	 	 	 	 	Mary Genevieve Read
	 	 	50,000	 
	 	 	 	 	John R. Howell Irrevocable Trust
	 	 	500,000	 
	 	 	 	 	Dennis Ackerman
	 	 	100,000	 
	 	 	 	 	Robert Lund
	 	 	200,000	 
	 	 	 	 	Global Ethanol, Inc.
	 	 	7,950,000	 
	 	 	 	 	Daniel Robert Riker
	 	 	50,000	 
	 	 	 	 	Capitaline Renewable Energy II, LP
	 	 	27,500,000	 
	 	 	 	 	Michael Day
	 	 	50,000	 
	 	 	 	 	Jim or Dorothy Morgan
	 	 	5,000,000	 
	 	 	 	 	Dave and
Wendy Timmerman
	 	 	100,000	 
	 	 	 	 	Thompson & Co. FBO Kevin Brodbeck IRA
	 	 	75,000	 
	 	 	 	 	Debra Lynn Windemuller
	 	 	50,000	 
	 	 	 	 	Ellis W. Day
	 	 	50,000	 
	 	 	 	 	Thompson & Co. FBO Larry E. Neil IRA
	 	 	100,000	 
	 	 	 	 	Tri-Co Services, Incorporated
	 	 	50,000	 
	 	 	 	 	US Agri-Energy, LLC
	 	 	8,410,000	 
	 	 	 	 	Frank A. and Sharol L. Stoick
	 	 	50,000	 
	Total:	 	 
	 	 	88,360,500	 

2

 

EXECUTION

Schedule 7(c) – Organization

	 	 	 
	Entity Name	 	State(s) of Good Standing
	 
	 	 
	US BioEnergy Corporation
	 	South Dakota
	 
	 	Iowa 
	US Bio Albert City, LLC
	 	Iowa
	 
	 	 
	Superior Corn Products, LLC
	 	Michigan
	 
	 	 
	United Bio Energy, LLC
	 	Kansas
	 
	 	 
	UBE Fuels, LLC
	 	Kansas
	 
	 	Arizona
	 
	 	California
	 
	 	Colorado
	 
	 	Connecticut
	 
	 	Florida
	 
	 	Georgia
	 
	 	Illinois
	 
	 	Indiana
	 
	 	Iowa
	 
	 	Kansas
	 
	 	Kentucky
	 
	 	Maryland
	 
	 	Michigan
	 
	 	Minnesota
	 
	 	Missouri
	 
	 	Montana
	 
	 	Nebraska
	 
	 	Nevada
	 
	 	New Jersey
	 
	 	New Mexico
	 
	 	New York
	 
	 	North Carolina
	 
	 	North Dakota
	 
	 	Ohio
	 
	 	Oklahoma
	 
	 	Oregon
	 
	 	Pennsylvania
	 
	 	South Dakota
	 
	 	Tennessee
	 
	 	Texas
	 
	 	Utah
	 
	 	Virginia
	 
	 	Washington
	 
	 	West Virginia
	 
	 	Wisconsin
	 
	 	 
	UBE Grain, LLC
	 	Kansas

1

 

EXECUTION

	 	 	 
	Entity Name	 	State(s) of Good Standing
	 
	 	 
	 
	 	Iowa
	 
	 	South Dakota
	 
	 	 
	UBE Ingredients, LLC
	 	Kansas
	 
	 	Alabama
	 
	 	Arizona
	 
	 	Arkansas
	 
	 	California
	 
	 	Colorado
	 
	 	Connecticut
	 
	 	Delaware
	 
	 	Georgia
	 
	 	Idaho
	 
	 	Illinois
	 
	 	Indiana
	 
	 	Iowa
	 
	 	Maine
	 
	 	Massachusetts
	 
	 	Michigan
	 
	 	Minnesota
	 
	 	Mississippi
	 
	 	Missouri
	 
	 	Nebraska
	 
	 	New Hampshire
	 
	 	New Jersey
	 
	 	New Mexico
	 
	 	New York
	 
	 	North Carolina
	 
	 	North Dakota
	 
	 	Oklahoma
	 
	 	Oregon
	 
	 	Pennsylvania
	 
	 	South Carolina
	 
	 	South Dakota
	 
	 	Texas
	 
	 	Utah
	 
	 	Vermont
	 
	 	Virginia
	 
	 	Washington
	 
	 	Wisconsin
	 
	 	 
	UBE Management, LLC
	 	Kansas
	 
	 	Nebraska
	 
	 	Iowa
	 
	 	South Dakota
	 
	 	 
	UBE Trading, LLC
	 	Kansas

2

 

Schedule 8(c) – Form of Proxy

IRREVOCABLE PROXY

          WHEREAS, the undersigned is executing this Irrevocable Proxy in connection with that certain
Subscription Agreement dated as of the date below (the “Subscription Agreement”) between US
BioEnergy Corporation (the “Company”) and CHS Inc. (“CHS”).

          The undersigned hereby irrevocably constitutes and appoints Jay Debertin or John Schmitz, or
either of them, with full power of substitution and revocation, the undersigned’s true and lawful
agent, attorney and proxy, for the undersigned and in the undersigned’s name, place and stead, to
vote, or otherwise give consent with respect to, all voting securities of the Company held by the
undersigned at any and all meetings, regular or special, of holders of voting securities of the
Company or any adjournment(s) or postponements) thereof, giving and granting to each of said
attorney all the powers the undersigned would possess if personally present at such meeting:

	 	(a)	 	for the election to the Board of Directors of the Company of such persons as CHS is
entitled to appoint pursuant to the terms of Section 8 of the Subscription Agreement (each, an
“Appointee”)
until the undersigned shall receive a notice from the Company and CHS that such appointment
right has been terminated;
	 
	 	(b)	 	once elected, for the presence at all times on the Board of Directors of the
Company of each
Appointee until the undersigned shall receive a notice from the Company and CHS that
such
appointment right has been terminated.

          The undersigned agrees that the undersigned shall not transfer any voting securities held by
the undersigned unless such transferee agrees to be bound by the provisions of this proxy.

          By executing mis proxy, the undersigned hereby revoke all proxies heretofore made by the
undersigned with respect to the subject matter contained herein. The undersigned acknowledge that
this proxy is coupled with an interest in the common stock of the Company and is irrevocable by the
undersigned until the undersigned shall receive a notice from the Company and CHS of termination of
this proxy.

Dated: November 17, 2005.

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	Signature	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Print Name	 	 

1

 

Exhibit 7(a)

US BioEnergy Corporation

Outstanding Options Granted to Purchase Class A Common Stock

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Shares of
	 	 	 	 	 	 	Class A
	 	 	Grant	 	Common
	Holder	 	Date	 	Stock
	Chad D. Hatch
	 	 	1/28/2005	 	 	 	30,000	 
	 
	 	 	 	 	 	 	 	 
	O. Wayne Mitchell
	 	 	1/28/2005	 	 	 	30,000	 
	 
	 	 	 	 	 	 	 	 
	Steven P. Myers
	 	 	1/28/2005	 	 	 	30,000	 
	 
	 	 	 	 	 	 	 	 
	Roland “Ron” J. Fagen
	 	 	1/28/2005	 	 	 	30,000	 
	 
	 	 	 	 	 	 	 	 
	Jennifer A. Johnson
	 	 	1/28/2005	 	 	 	30,000	 
	 
	 	 	 	 	 	 	 	 
	Gordon W. Ommen
	 	 	1/28/2005	 	 	 	30,000	 
	 
	 	 	 	 	 	 	 	 
	Brian Thome
	 	 	1/28/2005	 	 	 	30,000	 
	 
	 	 	 	 	 	 	 	 
	Jill L. Wilts
	 	 	1/28/2005	 	 	 	30,000	 
	 
	 	 	 	 	 	 	 	 
	Jeff Roskam
	 	 	5/10/2005	 	 	 	50,000	 
	 
	 	 	 	 	 	 	 	 
	Mike Malecha
	 	 	5/10/2005	 	 	 	25,000	 
	 
	 	 	 	 	 	 	 	 
	Randy Ives
	 	 	5/10/2005	 	 	 	25,000	 
	 
	 	 	 	 	 	 	 	 
	Jerry Byrnes
	 	 	5/10/2005	 	 	 	25,000	 
	 
	 	 	 	 	 	 	 	 
	David Dykstra
	 	 	5/10/2005	 	 	 	20,000	 
	 
	 	 	 	 	 	 	 	 
	Greg Krissek
	 	 	5/10/2005	 	 	 	20,000	 
	 
	 	 	 	 	 	 	 	 
	Ron Hansen
	 	 	5/10/2005	 	 	 	10,000	 
	 
	 	 	 	 	 	 	 	 
	Anita Mead
	 	 	5/10/2005	 	 	 	10,000	 
	 
	 	 	 	 	 	 	 	 
	Kristi Lee
	 	 	9/26/2005	 	 	 	15,000	 
	 
	 	 	 	 	 	 	 	 
	Virg Garbers
	 	 	10/11/2005	 	 	 	15,000	 
	 
	 	 	 	 	 	 	 	 
	Capitaline Advisors, LLC
	 	 	11/17/2005	 	 	 	3,250,000	 
	 
	 	 	 	 	 	 	 	 
	Global Ethanol, Inc.
	 	 	11/17/2005	 	 	 	3,250,000	 
	 
	 	 	 	 	 	 	 	 
	Total:
	 	 	 	 	 	 	6,955,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]