Document:

EX-10.1

 

Exhibit 10.1

AGREEMENT OF SALE

BETWEEN

BREEZE-EASTERN CORPORATION

AND

BED BATH & BEYOND INC.

DATED: NOVEMBER 28, 2007

 

 

Table of Contents

	 	 	 	 	 	 	 
	1.	 	Sale and the Property
	 	 	3	 
	2.	 	Purchase Price
	 	 	4	 
	4.	 	Entry on the Property
	 	 	10	 
	5.	 	Title Insurance
	 	 	12	 
	6.	 	No Representations by the Seller as to the Property
	 	 	14	 
	7.	 	Seller’s Interim Operating Covenants
	 	 	15	 
	8.	 	Closing Prorations
	 	 	16	 
	9.	 	Documents to be Delivered by Seller at Closing
	 	 	17	 
	10.	 	Documents to be Delivered by Buyer at Closing
	 	 	18	 
	11.	 	The Closing
	 	 	18	 
	12.	 	Condemnation or Eminent Domain
	 	 	19	 
	13.	 	Risk of Loss From Casualty
	 	 	19	 
	14.	 	Real Estate Commissions
	 	 	19	 
	15.	 	Default and Remedies
	 	 	20	 
	16.	 	Representations of the Seller
	 	 	20	 
	17.	 	Representations of Buyer
	 	 	23	 
	18.	 	Notices
	 	 	24	 
	19.	 	Timing
	 	 	25	 
	20.	 	Entire Agreement
	 	 	25	 
	21.	 	Counterparts
	 	 	25	 
	22.	 	Purchase Price Not To Be Prorated
	 	 	25	 
	23.	 	Acceptance by Buyer
	 	 	25	 
	24.	 	No Survival
	 	 	25	 
	25.	 	Assignment and Recordation
	 	 	26	 
	26.	 	Further Assurances
	 	 	26	 
	27.	 	Confidentiality
	 	 	26	 
	28.	 	Press Releases
	 	 	26	 
	29.	 	Escrow Agent
	 	 	27	 
	30.	 	Miscellaneous
	 	 	28	 
	31.	 	Tax Free Exchange
	 	 	30	 

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AGREEMENT OF SALE

     THIS AGREEMENT OF SALE (the “Agreement”) is entered into as of this 28th day of
November, 2007 (the “Effective Date”), by and between BED BATH & BEYOND INC., a New York
corporation (the “Buyer”) with an address at 650 Liberty Avenue, Union, NJ 07083 and BREEZE-EASTERN
CORPORATION, a Delaware corporation (“Seller”) formerly named TransTechnology Corporation and
successor by merger with Breeze Corporations, Inc. with an address at 700 Liberty Avenue, Union, NJ
07083-8198.

WITNESSETH:

     WHEREAS, the Seller as successor by merger owns that certain property located in the Township
of Union, Union County, New Jersey; known as Lot 1.01 in Block 3505 on the Tax Map of the Township
of Union, NJ and known as 700 Liberty Avenue, Union, NJ 07083, and

     WHEREAS, the Seller desires to transfer such property to the Buyer, and the Buyer desires to
purchase the property on terms hereinafter provided.

     NOW, THEREFORE, in consideration of the covenants and mutual promises contained herein and
other good and valuable consideration (the receipt and sufficiency of which are hereby
acknowledged), the Seller and the Buyer hereby agree as follows:

     1. Sale and the Property

          (a) For convenience, selected definitions used in this Agreement are indexed in Schedule 1
attached hereto.

          (b) Buyer agrees to purchase and Seller agrees to sell on the terms set forth in this
Agreement that certain real property known as Lot 1.01, Block 3505, Township of Union, Union
County, NJ, more particularly described on Exhibit A, attached hereto (hereinafter the “Land”).
The Land shall include all rights, privileges, tenements, hereditaments, rights of way, easements,
appendages and appurtenances of such and all right, title and interest of Seller now owned and
hereafter acquired, in and to any land lying in the bed of any street, road or avenue, open or
proposed, in front of and adjoining the Land, to the center line thereof and all right, title and
interest, if any, of Seller to all ways, water courses, easements, and other rights, liberties, and
privileges of whatever kind or character, the reversion and remainders, and all the estate, right,
title, interest, possession, claims and demands whatsoever, at law or equity, of Seller, in and to
all buildings, structures, fixtures and improvements located thereon, including without limitation,
the building of approximately 176,600 square feet on the Land (the “Improvements”), and in and to
all of the foregoing of any or every part thereof;

          (c) Seller has attached a list of all its service contracts, utility agreements, maintenance
agreements, lease brokerage agreements and other contracts or agreements in effect with respect to
the Property (as hereinafter defined) on Exhibit B, attached hereto (collectively, the “Contracts”)
which Contracts are handled as provided in the Lease; and

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          (d) All personal property used in connection with the operation and maintenance of the
Improvements listed on Exhibit C, attached hereto (the “Personal Property”). The Land, the
Improvements, the Contracts and Personal Property are collectively hereinafter referred to as the
“Property”.

     2. Purchase Price.

          (a) The purchase price of the Property, as increased or decreased by the prorations and
adjustments as herein provided, shall be TEN MILLION FIVE HUNDRED THOUSAND DOLLARS ($10,500 000.00)
(the “Purchase Price”) and shall be payable as follows:

	 	 	 	 	 
	               (i)   On the execution of this Agreement by wire transfer, (the “Deposit”) to the Attorney Trust Account
of Marcus, Brody, Ford, Kessler & Sahner, LLC (the
“Escrow Agent”), which will be held until closing of title
in accordance with Section 29 hereof in the amount of:	 	$	1,000,000	 
	 
	 	 	 	 
	               (ii)   At closing, the balance by wire transfer of immediately available funds by 12 noon on the date of closing:	 	$	9,500,000	 
	 
	 	 	 
	Total:
	 	$	10,5000,000	 

          (b) At Closing, hereinafter defined, the Seller and Buyer shall execute and deliver a lease
agreement (the “Lease”) with Seller as Tenant and Buyer as Landlord for the Property in the form of
Exhibit D, attached hereto.

     3. Contingencies.

          (a) Due Diligence Period.

               (i) Buyer shall have sixty (60) days from the Effective Date (the “Due Diligence Period”) in
which to do any and all inspections of the Property including, but not limited to, any surveys,
engineering and environmental studies and tests at the Property, subject to entering into a form of
access agreement similar in form and substance to Exhibit F, attached hereto, and subject to the
requirements of Section 4 of this Agreement. In addition, within ten (10) days of execution of
this Agreement, Seller shall make available to Buyer or its agents, at Seller’s offices at the
Property, complete copies of all material documents and information relating to the Property, its
use, ownership, condition and operation, including, without limitation, the following documents
(collectively, the “Seller Documents”): title documents (such as deeds, title policies and
surveys), topographical and engineering studies, contracts or other agreements, as built drawings,
governmental approvals, and any reports, filings, maps, drawings, surveys, data, forms,
applications, workplans, correspondence, notices, orders, permits, approvals, and other documents
in Seller’s possession or control (including in the possession or control of Seller’s counsel,
engineer or consultant) relating to the Property (or operation thereof), including, without
limitation, those material documents and information relating to any condition involving Hazardous
Substances on, under, emanating from or, to the extent known by Seller, emanating to the Property
that requires investigation and/or remediation (an “Environmental Condition”) or Seller’s
compliance or non-

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compliance with Environmental Laws (collectively, the “Environmental Documents”). The Seller
Documents shall not include the records of the operating business of the Seller that is conducted
at the Property or any documents protected by attorney-client privilege. Seller shall make copies,
up to 250 pages, of any documents requested by Buyer or its agents and if the amount requested
exceeds that page limit, Buyer shall reimburse Seller for any excess copying costs incurred by
Seller or engage a commercial copying service that Buyer shall pay. Buyer shall have until 4:00
PM. on the sixtieth (60th) day following the Effective Date (the “Due Diligence Termination Date”)
to terminate this Agreement if Buyer determines in its sole, absolute and unreviewable discretion,
and for any or no reason, that the Property is not fit for Buyer’s intended use, and provided
further that Buyer delivers a notice of termination to the Seller, in which event the Escrow Agent
shall return the Deposit to the Buyer with the accrued interest thereon, and neither party shall
have any further liability to the other, except for those matters expressly surviving termination.
Such notice of termination shall not contain any reason or basis for Buyer’s decision, but merely
state that Buyer has elected to terminate this Agreement. If Buyer gives the notice of termination
on or before the Due Diligence Termination Date, solely if Seller requests in writing, Buyer shall
promptly thereafter provide Seller with copies of all its inspections studies and reports, but
excluding all proprietary information of Buyer. Except in accordance with Section 4 (c) of this
Agreement, barring such a request by the Seller, Buyer shall not disclose to Seller, Seller’s
counsel or representatives or to any other person or entity the results of the inspections, studies
and reports. If Buyer fails to deliver a notice of termination within such period, the Deposit
shall not be returned to Buyer pursuant to this Section 3(a), but shall be dealt with in accordance
with the other provisions of this Agreement. Notwithstanding the preceding sentence, to the extent
that there is any material adverse change to the physical condition or Environmental Condition of
the Property that results in a Material Adverse Effect, defined below, on the Property after the
Due Diligence Period caused by any party (other than Buyer or Buyer’s agents) and excluding an
event that is a casualty or condemnation event, Buyer shall have the same right to inspect said
condition and terminate this Agreement within ten (10) days of Buyer’s actual notice of such event
as it did in the initial Due Diligence Period.

               (ii) Except for the representations or warranties expressly set forth herein or in the Closing
Documents, Seller does not make any warranty or representation with respect to the accuracy,
completeness, conclusions or statements expressed in any due diligence materials regarding the
Property or matters affecting the Property furnished or made available to Buyer by Seller or any
other party. Buyer hereby waives any and all claims against Seller or any party that prepared or
furnished any due diligence materials arising out of the accuracy, completeness, conclusions or
statements expressed in such due diligence materials furnished by Seller or any other party,
(provided the foregoing shall not limit claims Buyer may have against Seller for fraud and
misrepresentations or breaches of warranties expressly set forth herein or in the Closing
Documents). Buyer acknowledges that Seller has not made nor will make nor will be alleged to have
made any verbal or written representations, warranties, promises or guaranties whatsoever to Buyer,
whether express or implied, regarding the feasibility or likelihood of success should Buyer seek to
obtain any licenses, permits, certificates, approvals, development rights, authorizations,
variances or consents that Buyer might seek. The provisions of this Section 3(a)(ii) shall survive
the Closing or termination of this Agreement indefinitely.

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 (b) ISRA and  Environmental Allocation Issues.

               (i) Prior to Closing, Seller shall, at its sole cost and expense, comply with the requirements
of the New Jersey Industrial Site Recovery Act, N.J.S.A. 13:1K-6 et seq., and the
accompanying regulations, as amended from time to time (“ISRA”) and use reasonable efforts to
complete ISRA compliance prior to Closing by obtaining from the New Jersey Department of
Environmental Protection (the “NJDEP”) and delivering to Buyer a No Further Action Letter (a “NFA”)
for the Property without regard to Seller’s Capped Aggregate Exposure, defined below.

               (ii) If Seller has not obtained the NFA prior to the scheduled Closing Date, Seller may
adjourn the scheduled Closing Date for up to sixty (60) days during which time Seller shall
diligently pursue the NFA, or obtain a Remediation Agreement to permit the Closing to proceed. If
Closing occurs pursuant to a Remediation Agreement, Closing shall not occur until Seller has posted
financial assurances, if any, required by NJDEP, which shall not be in the form of a self
guarantee. Seller shall satisfy and maintain the financial assurance requirements as may be
required by the NJDEP pursuant to ISRA. Seller shall, at its expense as provided therein, promptly
make all submissions and provide all information to the NJDEP and diligently conduct any
investigation or remediation of the Property to comply with ISRA.

               (iii) Attached hereto as Exhibit E is an NFA received by Seller dated June 30, 2004 (the “2004
NFA”) with respect to this Property and an adjacent property. The deed notice referenced in the
2004 NFA does not encumber the Property, but encumbers property which Seller conveyed in 2004 and
no longer uses or occupies. The Seller already has engaged the consultant who worked on the 2004
NFA to prepare a Preliminary Assessment necessary to apply for an NFA for this transaction.

               (iv) After the Effective Date, Seller shall promptly provide to Buyer all future reports,
filings, maps, drawings, surveys, data, forms, applications, workplans, permits, notices, orders,
correspondence and other documents relating to ISRA, the Environmental Condition of the Property,
and Seller’s compliance or non-compliance with Environmental Laws received from or submitted to
NJDEP or other governmental authority having jurisdiction over the Property.

               (v) Buyer agrees that Seller may complete ISRA remedial requirements, if any are required, at
the Property to any minimal level acceptable to the NJDEP (“NJDEP Acceptable Standard”) so long as
such level does not have a Material Adverse Effect. Buyer further agrees to the placement of a cap
or imposition of a deed notice, classification exception area or well restriction area (the
“Permissible Institutional Controls” and the “Permissible Engineering Controls”) so long as same
does not have a Material Adverse Effect, as part of Seller’s efforts to satisfy remedial
requirements with respect to the Property. Except for the first maintenance, repair and reporting
requirement, if any, which may exist with respect to any Permissible Institutional and Permissible
Engineering Controls insofar as they concern contaminated soils at the Property which shall be
performed by Seller, at Seller’s sole cost and expense, Buyer agrees, at its sole cost and expense,
to fulfill any and all subsequent maintenance, repair and reporting requirements, if any, which may
exist with respect to any Permissible Institutional and Permissible Engineering Controls insofar as
they concern contaminated soils at the Property and to transfer this obligation to anyone who buys
the Property from Buyer or, as applicable, Buyer’s business. Seller agrees, at its sole cost and
expense, to fulfill any and all

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ongoing maintenance, repair and reporting requirements, if any, which may exist with respect
to any Permissible Institutional and Permissible Engineering Controls insofar as they concern
contaminated groundwater at the Property and to transfer this obligation to anyone who buys
Seller’s business. Buyer will provide and will assure that all of its successors provide
reasonable access to the Property for Seller and its successors to fulfill this obligation. Except
as provided above with respect to a Material Adverse Effect, Buyer agrees that (a) it will not
argue with NJDEP that the Property should be remediated to a level beyond the NJDEP Acceptable
Standard, and that (b) absent Seller’s consent, which will not be unreasonably conditioned, delayed
or withheld, Buyer will not communicate with the NJDEP in connection with Seller’s remedial
requirements pursuant to ISRA. In the event that such communications occur, Seller will be
permitted to participate in and have input toward those communications. Seller shall provide Buyer
with reasonable notice (at least five (5) business days) of all meetings and conference calls with
NJDEP and give Buyer a meaningful opportunity to participate in such meetings and calls as an
observer. After Closing, at no material cost to Buyer and in a reasonable and timely fashion,
except as provided above with respect to a Material Adverse Effect, Buyer shall execute and deliver
any documents, deed notices or agreements with the NJDEP necessary for obtaining a NFA and shall
otherwise cooperate with Seller. Seller shall promptly and diligently conduct the investigation
and remediation of the Property in accordance with ISRA, and shall make commercially reasonable
efforts not to interfere with Buyer’s use and occupancy of the Property. Subject to the foregoing,
Buyer may proceed with its ownership and/or development of the Property; provided however,
construction at certain portions of the Property may require Buyer to comply at an increased cost
with specific requirements of a deed notice and applicable NJDEP regulations and health and safety
laws due to remediation to NJDEP Acceptable Standards (“Increased Environmental Construction
Costs”). Any Increased Environmental Construction Costs will be allocated in accordance with the
terms of (vi) below.

     For purposes of this Agreement, the term “Material Adverse Effect” shall mean an effect or
condition that will materially and adversely affect Buyer’s ability to construct or utilize the
Property for its general office and warehousing use consistent with the manner in which Buyer
currently utilizes 650 Liberty Avenue, Union, New Jersey.

     Subject only to the allocation mechanism set forth in (vi) below, Buyer may remediate the
Property beyond the NJDEP Acceptable Standard (“Buyer’s Preferred Standard”). If Buyer chooses to
remediate the Property to Buyer’s Preferred Standard, then , in its discretion, Buyer may either
(a) assume all of Seller’s investigatory and remedial obligations, as applicable, pursuant to ISRA
and indemnify and hold Seller harmless from any claims or damages arising out of Buyer’s
assumption of these ISRA obligations, or (b) undertake these additional investigatory or remedial
measures after Seller has obtained an NFA either for a particular area of environmental concern at
the Property or for the entire Property. If Buyer selects option (a) then Seller and Buyer shall
request blind estimates from each of their respective environmental consultants for Seller to
complete all of the remaining work then required to reach NJDEP Acceptable Standards. If the blind
estimates are within $100,000 of each other, they will be combined and averaged and Seller shall
pay said amount to the Buyer for Buyer to use to complete the investigation and remediation of the
Property to Buyer’s Preferred Standard, with Buyer bearing all costs incurred in excess of this
amount. In the event the two blind estimates are not within $100,000 of each other, Seller and
Buyer will select a mutually agreeable third

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environmental consultant and request an estimate from this third consultant (without providing the
third consultant with either of the initial blind estimates). Both Seller and Buyer agree to
accept this third estimate as binding provided it does not exceed the higher of the two initial
blind estimates by more than $200,000 or fall below the lower of the two initial blind estimates by
more than $200,000. Seller and Buyer shall bear their own fees in connection with obtaining the
initial blind estimates from their respective consultants and shall share equally (50/50) the fees
incurred in obtaining the third estimate, if necessary.

     The parties agree that they shall execute at Closing two memoranda in substantially the form
attached hereto as Exhibit J-1 and J-2 (the “Memoranda”) and that said Memoranda shall run with the
land and be recorded in the office of the Union County Clerk to put such successors and or assigns
on notice of certain rights and obligations contained herein.

               (vi) For purposes of this Agreement, the term “Known Environmental Conditions” shall mean all
Environmental Conditions, excluding Increased Environmental Construction Costs, disclosed in the
Environmental Documents or all Environmental Conditions about which Buyer obtains actual Knowledge
of during the Due Diligence Period. For purposes of this Agreement, “Unknown Environmental
Conditions” shall mean all other Environmental Conditions, excluding Increased Environmental
Construction Costs, that exist at the Property as of the Closing Date. Seller and Buyer have
agreed that Seller’s capped aggregate obligation (the “Seller’s Capped Aggregate Exposure”) to
Buyer for Unknown Environmental Conditions and Increased Environmental Construction Costs, shall be
$250,000 and the parties agree to the following process and allocation of Seller’s maximum
liability in connection with Known Environmental Conditions, Unknown Environmental Conditions and
Increased Environmental Construction Costs:

	 	a.	 	Prior to Closing, Buyer shall obtain a
Pollution Legal Liability Policy (“PLLP”) providing coverage for all
Unknown Environmental Conditions, with a deductible of $50,000,
policy limits of $1,000,000, a premium of not more than $45,000 and
a term of 5 years beginning at the time of Closing.
	 
	 	b.	 	Seller shall pay the insurance premium
for the PLLP or give Buyer a credit at closing for the cost of the
premium up to, but not exceeding, $45,000.
	 
	 	c.	 	Buyer shall ensure that the PLLP names
Seller as an additional named insured and that the insurer waives
all subrogation rights against Seller.
	 
	 	d.	 	In the event a post-Closing Claim arises
concerning a Known Environmental Condition, Buyer will be solely
responsible for addressing and paying for that Claim, without
recourse either to Seller or to the PLLP.
	 
	 	e.	 	In the event a post-Closing Claim arises
concerning an Unknown Environmental Condition, Seller’s Capped
Aggregate Exposure, for Unknown Environmental Conditions, shall be
paid as follows: Seller shall be responsible for the initial
$50,000 deductible incurred by Buyer (for attorney’s fees,
consulting fees, investigatory and 

8

 

	 	 	 	remedial costs, or any other reasonable associated costs, hereinafter
“Coverage Costs”) in addressing that Claim. Thereafter, both Buyer
and Seller shall look to the PLLP for coverage up to $1,000,000. If
coverage is denied or exhausted, Seller’s remaining obligation to
Buyer of up to $200,000 of the Seller’s Capped Aggregate Exposure
shall be due and payable by Seller to Buyer. Thereafter, Buyer shall
be solely responsible to pay for and respond to the Claim without
recourse against Seller. Buyer agrees to utilize commercially
reasonable efforts to obtain coverage, however, Buyer has no
obligation to initiate and prosecute litigation against the insurer
in the event of a denial of a claim or assertion of exhaustion of
limits. Nothing in this Agreement precludes Seller from initiating
and prosecuting such litigation against the insurer.
	 
	 	f.	 	In the event a post-Closing Claim arises
concerning Increased Environmental Construction Costs then Seller
shall reimburse Buyer up to, but not exceeding, Seller’s Capped
Aggregate Exposure in connection with these Increased Environmental
Construction Costs, minus any amount already reimbursed to Buyer by
Seller for one or more Claims already made by Buyer which are
subject either to this subsection or subsection (e) or (g).
	 
	 	g.	 	In the event Buyer decides to renew the
PLLP after the initial 5 year term, all of the terms and conditions
set forth in a,c,d,e and f, above, shall continue to apply. Buyer
shall, however, pay the entire premium for the renewal policy. 5
years after Closing, the maximum exposure to Seller on any Claims
arising in connection with Unknown Environmental Conditions and
Increased Environmental Construction Costs is any balance of
Seller’s Capped Aggregate Exposure of $250,000, not previously paid
in connection with one or more prior Claims made pursuant to
subsections (e) and (f) above. In the event that Buyer does not
renew the PLLP, then Seller will be responsible for any balance of
Seller’s Capped Aggregate Exposure of $250,000 not previously paid
in connection with one or more prior Claims made pursuant to
subsections (e) and (f) above

               (vii) Buyer acknowledges that after Closing the Property may be subject to regulatory
requirements by Seller pursuant to ISRA if a Remediation Agreement is the necessary method of
satisfying ISRA for Closing, and Buyer agrees to grant access to Seller after Closing as is
necessary to complete that process. For purposes of this Section 3(b)(vi), Seller and Seller’s
representatives shall have access to the Property in accordance with an access agreement to be
signed by the parties, which shall be in the form and shall contain the terms set forth on Exhibit
F attached hereto (the “Access Agreement”). Subject to (v) above, after Closing, Buyer shall not
take any action, including, without limitation, any construction activity that materially
interferes with or prohibits the achievement of ISRA compliance.

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               (viii) If, despite Seller’s diligent efforts as provided under this Agreement, Seller has not
obtained a NFA or a Remediation Agreement after adjourning the scheduled Closing Date for up to
sixty (60) days, then either Seller or Buyer may terminate the Agreement by notice to the other.

          (c) This purchase is subject to Buyer obtaining commitments for and formal approvals of
economic incentives from the State of New Jersey, Union Township, Union County, and other
governmental entities, that are acceptable to Buyer. Buyer agrees to either waive this condition
or terminate this Agreement prior to the expiration of the Due Diligence Period and Buyer’s failure
to give written notice to Seller prior to the expiration of the Due Diligence Period shall
constitute a waiver of this contingency for obtaining such financing commitments. Further, the
failure of any commitments to fund at or before Closing shall not be grounds for Buyer to terminate
this Agreement, to be relieved of its obligations hereunder or to adjourn the Closing.

          (d) The rights and obligations in this Section shall survive closing and delivery of the Deed
and shall be binding on and inure to the benefit of the corporate successors of Buyer and Seller
and successors in title of Buyer.

     4. Entry on the Property.

          (a) At least three (3) business days prior to the Buyer or any of its contractors entering the
Property, the Buyer shall provide Seller with the following:

               (i) a list of the contractors that will enter the Property;

               (ii) certificate(s) of insurance showing that Buyer has in place prior to entry upon the
Property commercial general liability insurance, and, if necessary, commercial umbrella insurance,
covering Buyer, Seller and the Property on an occurrence, as opposed to claims made, basis and
providing for a combined single limit for bodily injury and property damage of not less than Five
Million Dollars ($5,000,000) per occurrence issued by companies and in form and substance
reasonably satisfactory to Seller (“Buyer’s Liability Insurance”). All of Buyer’s Liability
Insurance shall be primary and not contributing with any insurance maintained by Seller. Seller
shall be named as an additional insured under all of Buyer’s liability insurance and Seller shall
be given written notice at least thirty (30) days prior to cancellation, material amendment or
reduction of any such coverage. The aforesaid insurance shall be maintained for at least one (1)
year after the Buyer’s entry upon the Property for the purposes contemplated by
this Section 4;

               (iii) a current policy endorsement evidencing that Buyer’s contractors have liability
insurance and workmen’s compensation insurance in satisfactory coverage amounts; naming Seller as
an additional insured prior to entering onto the Property; and

               (iv) provided Seller consents to invasive testing, a current policy endorsement evidencing
that any contractor that intends to conduct invasive testing of the Property carries contractor’s
pollution liability insurance of not less than One Million Dollars ($1,000,000) per occurrence
naming Seller as an additional insured.

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          (b) Notwithstanding the foregoing, Seller’s prior written consent shall be required for any
investigations which involve invasive or destructive testing of the Property (or any portion
thereof and including, without limitation, any boring of the Property in connection with an
environmental audit or otherwise) or any alteration of the Property (or any portion thereof), but
such consent shall not be unreasonably conditioned, delayed or withheld. In the event Seller does
provide its consent to any such invasive testing or alteration, Buyer shall promptly restore the
Property to its condition immediately prior to, as applicable, such test or alteration. Buyer
shall (i) accept ownership control over, as generator, and properly remove, at its sole cost and
expense, all soil, groundwater, development water, drilling cuttings, or other material generated
during the testing (ii) have the sole responsibility for the proper handling, storage or disposal
of such waste in accordance with the applicable environmental laws, (iii) fully comply with all
laws, rules and regulations applicable to the Property and/or the inspections and all other
activities undertaken in connection therewith, (iv) use commercially reasonable efforts to minimize
interference with the use or occupancy of the Property (or any portion thereof) by Seller (or any
of their respective agents, representatives, guests, invitees, contractors, or employees), and (v)
permit Seller to have a representative present during all inspections undertaken hereunder at
Seller’s sole cost and expense. Except for damages, claims, actions or demands resulting from the
acts or omissions of Seller or its agents or from existing Environmental Conditions which shall
remain the responsibility of Seller, Buyer shall be responsible for any and all damages, claims,
actions or demands made by any party to the extent resulting from the negligent acts or omissions
of the Buyer or its agents on the Property during any inspections and Buyer shall indemnify, hold
harmless and defend the Seller against all such liabilities, costs, and expenses (including
reasonable attorney’s fees) incurred by Seller in or in connection with each such claim or action
or proceeding brought to the extent resulting from negligent acts or omissions of the Buyer or its
agents on the Property during any inspections. In the event Buyer has obtained Seller’s consent
for any invasive or destructive investigations and Buyer and its agents perform the investigations
in conformance with the procedures outlined in the scope of work approved by Seller and utilizing
generally accepted scientific methods, then Buyer and its agents shall be deemed not to have
performed those investigations negligently. The indemnification obligations herein are not intended
to be limited by Seller’s remedies under Section 15(b), and Seller shall have all remedies with
regard to such indemnification obligations of Buyer.

          (c) Subject to subsection 4(d) hereof, Buyer agrees that, in making any inspections of, or
conducting any testing of, on or under the Property Buyer or its agents will not reveal to Seller,
Seller’s counsel or representatives or any other person or entity the results of its inspections or
tests, excepting only Buyer’s attorneys, consultants and lenders retained to assist Buyer in this
transaction, as well as the insurer referenced in Paragraph 3(b)(vi). Buyer shall require those
excepted third-parties to comply with the provisions of this Section. In the event Buyer believes
it has a legal obligation to reveal any of these results to a governmental agency, it will contact
Seller’s legal counsel orally and, without revealing the specific underlying facts, provide the
statutory or regulatory citation upon which it bases its belief. Unless Seller’s counsel agrees
that Buyer has such a legal obligation, Buyer shall not make any such disclosure. If a third-party
serves a subpoena or court order on Buyer to obtain copies of the results, Buyer shall immediately
notify Seller and, at no material cost to Buyer, assist Seller in moving to quash the subpoena or
reverse the court order. In the event that Seller is unsuccessful in its efforts to quash the
subpoena or reverse the court order and Seller has exhausted its appeal rights or failed to

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obtain a stay, Buyer shall be free to disclose the results in accordance with the mandatory
terms of the subpoena or court order. Seller shall indemnify the Buyer from and against any and
all claims resulting from, arising out of or in connection with any damages Buyer sustains if it
was, in fact, legally obligated pursuant to statute, regulation or court order to reveal results to
a governmental agency or third-party, but Seller’s counsel declined to permit that disclosure.
Buyer shall indemnify the Seller from and against any and all claims resulting from, arising out of
or in connection with Buyer’s or its agents’ or representatives’ intentional breach of the
obligations under this Section. In the event Seller asserts a claim for breach of contract under
this Section or for indemnification, the limit of Buyer’s liability is $250,000.

          (d) Within seven (7) days of receipt by Buyer of a written request from Seller, Buyer shall
provide to Seller copies of all studies, reports, and inspections relating to the Property, but not
proprietary information of Buyer.

          (e) If this Agreement is terminated by either party pursuant to the terms of this Agreement,
then upon Seller’s request, Buyer shall return to Seller all due diligence materials delivered by
Seller (or its agents) to Buyer and/or Buyer’s officers, employees or other persons acting for or
on behalf of Buyer, or to any of its attorneys, agents, or representatives (collectively, the
“Receiving Party Representatives”) (the “Information”). All of the Information shall be deemed
confidential for three (3) years unless this sale is completed at which time the confidentiality
obligation with respect to the Information shall terminate. Buyer acknowledges and agrees that the
Information is subject to the confidentiality provisions of Section 27 for the three (3) year
period. Buyer shall indemnify the Released Parties (as hereinafter defined) from and against any
and all Claims (as hereinafter defined) resulting from, arising out of or in connection with
Buyer’s and/or the Receiving Party Representatives’ breach of its obligations under this Section.

          (f) The provisions of this Section 4 shall survive the termination of this Agreement
indefinitely except with respect to confidentiality obligations with respect to the Information
which shall expire upon the Closing of the sale or three (3) years after termination of this
Agreement.

     5. Title Insurance.

          (a) Promptly, after receipt of a fully executed copy of this Agreement, Buyer shall order from
a national title insurance company a title commitment (“Title Commitment”) for an owner’s title
insurance policy. If and when closing occurs, Buyer will pay the premium for the owner’s title
insurance policy. Subject to the terms of this Agreement (including, without limitation, the Due
Diligence Period), Title to the Property conveyed shall be subject to the following:

               (i) such state of facts as a survey of the property may show;

               (ii) zoning regulations, and municipal building restrictions, and all other laws, ordinances,
regulations and restrictions of any duly constituted public authority enacted prior to the closing
date;

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               (iii) the lien of current taxes not due and payable;

               (iv) standard exceptions set forth in the form of title insurance policy of the title
insurance company selected by the Buyer; and

               (v) the list of exceptions (“Permitted Exceptions”) set forth on Exhibit G, attached hereto.

          (b) Seller shall have no obligation to bring any action or proceeding or otherwise to incur
any expense or liability (contingent or otherwise) to remedy any objection to title raised by Buyer
except for mortgage liens, judgment liens, tax liens and any other lien or encumbrance that can be
cleared, terminated or released by the payment of a fixed sum of money or any other encumbrance
that is placed on the Property after the Effective Date hereof. Except as provided above, if
Seller is unable to convey title in accordance with this Agreement or does not elect to remedy any
objection, Buyer may elect either to (i) accept such title as Seller is able to convey on the
Closing Date, without any reduction of the Purchase Price or any credit or allowance on account
thereof or any other claim against Seller, or (ii) terminate this Agreement, in which case the
Escrow Agent shall return the Deposit to the Buyer with the accrued interest thereon, and neither
party shall have any further liability to the other except for those matters that expressly survive
the termination. Such election shall be made by Buyer within three (3) Business Days of written
notice by Seller to Buyer to the effect that Seller is unable to convey title in accordance with
this Agreement and does not elect to remedy an objection. It is the intention of the parties that
if Seller is unable or unwilling to cure any title objection (except for those which Seller is
obligated to remedy as noted above) that the Buyer shall not have the remedies set forth in Section
15(a) but solely those set forth herein.

          (c) Even if it is not obligated to do so, Seller shall have the right to remedy any objection
provided that it notifies Buyer of its desire to remedy the objection, within 3 days of receiving
notice thereof, and diligently undertakes to attempt to remedy same. For the purpose of remedying
objections which cannot be remedied by the payment of money or bonding, Seller shall have the right
to one or more adjournments of the Closing Date for an aggregate period not to exceed sixty (60)
days. If Seller fails to remedy the objections prior to the date which is ten (10) days before the
adjourned closing date, Seller shall be deemed to have elected not to remedy the objections and
Buyer may avail itself of the options in subparagraph 5(b) above.

          (d) If, at the Closing Date, there are any other liens, taxes or encumbrances which Seller is
obligated to pay and discharge, Seller may use any portion of the balance of the Purchase Price to
satisfy the same, provided Seller shall simultaneously either deliver to Buyer at Closing, title
instruments in recordable form and sufficient to satisfy such liens and encumbrances of record,
together with the cost of recording and filing said instruments; or, provided that Seller has made
arrangements with the Buyer’s title company, Seller may deposit with the title company sufficient
monies, or provide a pay off letter from institutional lenders, acceptable to and required by the
title company to insure the obtaining and recording of such satisfactions and the issuance of title
insurance to Buyer free of any such liens and encumbrances. The existence of any taxes or other
liens or encumbrances shall not be deemed objections to title if Seller shall comply with the
foregoing requirements.

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     6. Representations by the Seller as to the Property.

          (a) Except as otherwise specifically provided herein, Buyer acknowledges and confirms that the
Buyer is not relying on any representation or inducement which was or may have been made or implied
by the Seller or any other party acting on behalf of the Seller with respect to the Property or any
circumstances or conditions affecting the Property. Seller shall have no liability or obligation,
before or after closing with respect to any matter, including, but not limited to, (i) expenses,
operation, income-producing potential, zoning, soil, physical and environmental condition, gross
and rentable square footage of the buildings permitted to be developed on the Property, access,
egress, fitness for any specific use, merchantability, or the lie and topography, of the Property
or violations affecting the Property, (ii) any patent or latent defect in or about the Property, or
in any fixture or personal property situated on the Property, (iii) any laws, ordinances or
governmental regulations or requirements pertaining to the Property or this transaction or the use
of the Property contemplated by Buyer, (iv) the existence, location or availability of utility
lines for water, sewer, drainage, electricity or any other utility, (v) any requisite approvals or
commitments for Buyer’s contemplated use, occupancy or financing, or (vi) any other matter
affecting or relating to the Property, including the state of title, all of the foregoing except as
specifically set forth in this Agreement. The Buyer has and will be given ample opportunity to
investigate the Property and the circumstances and conditions affecting the Property, to its full
satisfaction. Subject to Seller’s obligation to obtain the NFA, the Buyer is purchasing the
Property “AS IS”.

          (b) Seller is not liable under, or bound in any manner by, any express or implied warranty,
guaranty, promise, statement, representation or information pertaining to the Property, made or
furnished by any broker, attorney, agent, employee, servant or other person representing or
purporting to represent Seller, except to the extent, if any, such warranty, guarantee, promise,
statement, representation or information is specifically and fully set forth in this Agreement.

          (c) All understandings and agreements heretofore between the parties hereto are merged in this
Agreement and the Closing Documents, which alone completely express their agreement, and this
Agreement is entered into after full investigation, neither party relying upon any statement or
representation made by the other not embodied in this Agreement. Buyer expressly acknowledges that
Seller has neither undertaken, nor has any duty of, disclosure to Buyer with respect to the
Property or anything related thereto or to this transaction, except as expressly set forth in this
Agreement.

          (d) Without modifying other specific indemnification obligations which appear in this
Agreement, and expressly subject to the allocation mechanism and aggregate cap set forth in
Paragraph 3(b)(vi) of this Agreement, Seller covenants and agrees to, and where applicable does,
release, defend (with counsel reasonably acceptable to Buyer), indemnify and hold harmless Buyer
and each other Indemnified Party from and against any Claims arising in connection with any Unknown
Environmental Conditions or Increased Environmental Construction Costs related to any Hazardous
Substances that may have been placed, located, released on or at the Property during the ownership
and operation of the Property by Seller prior to the Closing Date or emanated onto the Property
from an off-site source formerly owned or operated by Seller, except to the extent same was placed
or released on or at the Property by Buyer or Buyer’s agents or with the prior written consent of
Buyer and except to the extent it emanated onto the Property from an off-site source never owned or
operated by Seller.

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Buyer and its successors and assigns covenant and agree to, and where applicable do, release,
defend (with counsel reasonably acceptable to Seller), indemnify and hold harmless Seller and each
other Indemnified Party from and against any Claims related to Hazardous Substances that may have
been placed, located, released on or at the Property during the ownership and operation of the
Property by Buyer subsequent to the Closing Date except as provided in the Lease and except to the
extent it emanated onto the Property from an off-site source, unless it emanated onto the Property
from an off-site source formerly owned or operated by Buyer. For purposes of this Agreement, (i)
“Hazardous Substance(s)” means any “hazardous substance”, “hazardous waste”, “toxic substance”
“pollutant” or “contaminant” as such terms are defined in any of the Environmental Laws, friable
asbestos, polychlorinated biphenyls, urea formaldehyde foam, radon and petroleum products, (ii)
“Environmental Laws(s)” means any federal, state and local laws, ordinances, rules and regulations
related to the protection of the environment, health or safety, including, without limitation, the
Comprehensive Environmental Response, Compensation, and Liability Act (“CERCLA”), 42 U.S.C. §9601,
et seq.; the Resource Conservation and Recovery Act (“RCRA”), 42 U.S. C.§6901, et seq.; the
Industrial Site Recovery Act (“ISRA”), N.J.S.A. 13:1K-6, et seq.; the Spill Compensation and
Control Act (“Spill Act”), N.J.S.A. 58:10-23.11, et seq.; the Underground Storage of Hazardous
Substances Act, N.J.S.A. 58:10A21, et seq.; the Hazardous Discharge Site Remediation Act.
(“HDSRA”), N.J.S.A 58:10B-1, et seq.; and the Solid Waste Management Act, N.J.S.A. 13:1E-1, et
seq.; (iii) “Indemnified Parties” means any Buyer or Seller, its affiliates or their affiliates or
any direct or indirect partner, member, trustee, beneficiary, director, shareholder, controlling
person, affiliate, officer, attorney, employee, agent, contractor, tenant, representative or broker
of any of the foregoing, and any of their respective heirs, successors, personal representatives,
devisees, donees and assigns (each an “Indemnified Party” and collectively, “Indemnified Parties”);
(iv) “Claims” means any and all suits, actions, proceedings, investigations, demands, claims,
liabilities, obligations, fines, penalties, liens, judgments, losses, injuries, damages, settlement
expenses or costs of whatever kind or nature, whether direct or indirect, known or unknown,
contingent or otherwise (including any action or proceeding brought or threatened or ordered by any
governmental authority), including, without limitation, attorneys’ and experts’ fees and expenses,
and investigation and remediation costs that may arise on account of or in any way be connected
with the Property or any portion thereof.

          (e) The Buyer acknowledges and confirms that Buyer’s obligations hereunder are not subject to
any contingencies or condition for financing, approvals, environmental compliance or any other
contingencies or conditions, except as may be expressly set forth in this Agreement (including,
without limitation, the Due Diligence Period).

     7. Seller’s Interim Operating Covenants.

          (a) Operations. Seller agrees to continue to operate, manage and maintain the Property through
the Closing Date in the ordinary course of Seller’s business and substantially in accordance with
Seller’s present practice, subject to ordinary wear and tear and further subject to this Section 7.

          (b) Maintain Insurance. Seller covenants to keep, at its sole cost and expense, until the
earlier of the Closing or the termination of this Agreement, the Property insured as currently
insured by Seller, against fire and other hazards covered by extended

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coverage endorsement and, as currently insured by Seller, comprehensive general liability
insurance against claims for bodily injury, death and property damage occurring in, on or about the
Property.

          (c) Contracts. Prior to Closing, Seller may extend, renew, replace or modify any Contract or
enter into any new Contract if the terms thereof are commercially reasonable and competitive and
the term thereof is cancelable on or prior to Closing by Buyer, without premium or penalty.

          (d) Leases. The Seller agrees not to enter into any lease or occupancy agreement without the
prior consent of the Buyer, which may be withheld in its sole and absolute discretion.

          (e) Violations. If any violation of law is cited by a governmental authority with respect to
the Property, the Seller shall commence to cure such violation and complete the cure before or
after Closing (but not later than the expiration date of the Lease except if Buyer’s renovations
will remedy the alleged violations related to the sprinkler system in the administration portion of
the building, Seller need not upgrade the sprinkler system in such area) at the cost and expense of
the Seller.

          (f) Encumbrances. Seller will not encumber the Property in any manner whatsoever, and will
promptly comply with all obligations, if any, of the owner under any agreement affecting the
Property, and notify Buyer of any material default under any said agreement(s) or any event which,
with the passage of time or the giving of notice, or both, would constitute a material default
under the agreement(s).

          (g) Alterations. Seller will not make any material alteration to the Property.

     8. Closing Prorations. The following items will be prorated as of 12:01 a.m. on the Closing
Date:

          (a) Operating Expenses. No adjustment for operating expense items shall be made as Seller
shall be responsible for such costs under the Lease.

          (b) Other items. Buyer shall be credited with interest accrued on the Deposit which shall be paid
to the Seller. Buyer shall pay for the recording fee for the deed and the Seller shall pay for the
New Jersey Realty Transfer Tax on the deed by giving the Buyer a credit for such amount on the
closing statement. If there is any applicable commercial Mansion Tax , such tax on the Deed shall
be paid by Buyer. The parties agree to readjust the closing prorations should any error or
mistake be discovered within six (6) months of closing for those items adjusted at closing. Each
party shall pay its own costs and expenses in connection with the transactions contemplated hereby,
including the fees and expenses of its attorneys, accountants, consultants and engineers. In
addition (but subject to the provisions of Section 5 hereof), Buyer shall pay (i) all of the escrow
fees, if any, charged by its title company; (ii) all expenses (at regular rates) of or related to
the issuance of owner’s title insurance policies (including, without limitation, the premiums for ALTA standard coverage Owner’s form of

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title insurance), and any endorsements, extended coverage and affirmative insurance to Buyer’s
or Buyer’s lender’s policies of title insurance and any co-insurance or reinsurance costs, (iii)
all expenses of or related to the issuance of obtaining lender’s title insurance policies and any
endorsements, extended coverage and affirmative insurance to lender’s policies of title insurance,
(iv) all city and state charges required to be paid to record documents in the Union County Clerk’s
Office (the “Recorder’s Office”) except for the New Jersey Realty Transfer Tax which will be paid
by Seller giving Buyer a credit against the Purchase Price, (v) the cost of any new survey or any
update of the Survey, (vi) all expenses of any financing of the Property, and (vii) all due
diligence expenses and charges for any engineering reports, appraisals, or environmental reports
obtained by, or on behalf of, Buyer, in connection with the transactions contemplated herein.

          (c) Assessments. If, on the Closing Date, the Property or any part thereof shall be or shall
have been affected by assessments, confirmed or not, whether payable in annual installments or lump
sum, then for the purposes of this Agreement all such assessments, including the balance of the
unpaid installments of any such assessments, including those which are to become due and payable
after the Closing Date, shall be deemed to be due and payable and to be liens upon the Property
affected thereby and shall be paid and discharged by Seller on the Closing Date by credit to Buyer
as shall be calculated.

          (d) Survival. The obligations in this Section shall survive closing of title and delivery of
the deed.

     9. Documents to be Delivered by Seller at Closing. At the closing, the Seller shall deliver
to the Buyer the following documents (the “Closing Documents”):

          (a) A bargain and sale deed with covenants against grantor’s acts duly executed by the Seller
in form for recordation;

          (b) Affidavit of Consideration for Use by Seller;

          (c) Seller’s Residency Certification Exemption-GIT/REP 3;

          (d) An affidavit of title, duly executed by the Seller in the form attached as Exhibit H;

          (e) A non-foreign person affidavit;

          (f) A closing statement showing the applicable closing adjustments, duly executed by the
Seller;

          (g) A post-closing adjustments letter whereby the parties agree to re-adjust the prorations
should any error or mistake be discovered within six (6) months of closing;

          (h) Resolution of the Seller as to the authority of the person signing the Deed;

          (i) The NFA or Remediation Agreement;

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          (j) The Lease signed by Seller;

          (k) The Access Agreement, if required by Seller;

          (l) A Certificate of Occupancy, Code Compliance Certificate and\or smoke detector certificate
or the like issued by the Township of Union required upon the sale of a commercial property, if
applicable;

          (m) A duly executed certification of Seller that all representations and warranties of Seller
included herein are true and correct as of the day of Closing; and

          (n) Such other documents as may be reasonably required by the Buyer’s title insurance company
in order to insure title subject only to the items in Section 5(a) above, or reasonably requested
by the Buyer to consummate the transaction contemplated hereunder.

     10. Documents to be Delivered by Buyer at Closing. At closing, the Buyer shall deliver to the
Seller:

          (a) Purchase Price, after adjustments, shall be delivered to the Seller or to an intermediary,
as provided below, if Seller elects to do a tax free exchange;

          (b) An Affidavit of Consideration for Use by Buyer;

          (c) A closing statement showing the applicable closing adjustments, duly executed by the
Buyer;

          (d) A post-closing adjustments letter whereby the parties agree to re-adjust the prorations
should any error or mistake be discovered within six (6) months of closing;

          (e) The Lease signed by Buyer;

          (f) A duly executed certification of Buyer that all representations and warranties of Buyer
included herein are true and correct as of the day of Closing;

          (g) The Access Agreement, if required by Seller;

          (h) The PLLP referenced in Paragraph 3(b)(vi); and

          (i) Such other documents as may be reasonably required by Seller or required by this
Agreement.

     11. The Closing. The Closing (“Closing”) shall occur at the New Jersey office of the Buyer’s
counsel on or before January 31, 2008 (“Closing” or “Closing Date”). In the event Closing has not
occurred on or before the Closing Date set in the preceding sentence, either party may unilaterally
establish a Time of the essence closing date upon ten (10) Business Days notice to the other party.
Notwithstanding the foregoing, Seller may adjourn the initially scheduled Closing Date to cure
title objections (Sec. 5(c)) or to complete ISRA compliance (Sec. 3(b)(i)) or to obtain a
Remediation Agreement (Sec. 3(b)(ii))as provided herein.

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     12. Condemnation or Eminent Domain. If a condemnation (or eminent domain) proceeding is
instituted against the entire Property or any substantial portion thereof, prior to closing, the
Buyer may terminate this Agreement on written notice to the other party given within ten (10) days
of Buyer’s receipt of notice such event. If the Buyer terminates the Agreement, the Escrow Agent
shall return the Deposit to the Buyer with the accrued interest thereon, and neither party shall
have any further liability to the other , except for those matters that expressly survive the
termination. If the Buyer does not terminate this Agreement within such ten (10) day period, this
Agreement shall continue to be effective, and the Seller shall assign to the Buyer at closing all
of the Seller’s right to receive any award for such condemnation as a result of such taking,
together with all of the Seller’s rights to litigate such claim and to negotiate a settlement with
the condemning authority. A substantial portion of the Property involved in the condemnation or
taking by eminent domain means not less than fifteen (15%) percent of the land area of the
Property, or ten (10%) of the square foot area of building or which materially interferes with
access or egress to the Property or the remaining parking spaces that can be created on the
Property are less than the number required by the applicable ordinance for the size of the office
building that Buyer contemplates at the Property.

     13. Risk of Loss From Casualty. If the Property suffers damage as a result of any casualty
prior to the Closing Date and can be restored to its pre-casualty state for Five Hundred Thousand
Dollars ($500,000) or less and within six (6) months of the casualty, then Closing shall proceed
and Seller shall restore the Property prior to or after Closing during the term of the Lease. If
the cost of repair exceeds Five Hundred Thousand Dollars ($500,000) or will take more than six (6)
months to restore in the reasonable judgment of Seller, Buyer may elect within ten (10) days of
notice from Seller to Buyer of such casualty to terminate this Agreement, in which case the Escrow
Agent shall return the Deposit to the Buyer with the accrued interest thereon, and neither party
shall have any further liability to the other, except for those matters that expressly survive the
termination. If Buyer fails to terminate this Agreement in such ten (10) day period after receipt
of notice from Seller of the casualty, then the Closing shall proceed and Seller shall either
restore the Property prior to or after Closing during the term of the Lease and Seller shall retain
all insurance proceeds for use in the restoration. In all instances, there shall be no adjustment
of the Purchase Price due to any casualty or loss.

     14. Real Estate Commissions. Buyer warrants that it has not dealt with a real estate broker
for the purposes of selling the Property except for GVA Williams of New Jersey (referred to as the
“Broker”) and agrees to indemnify, defend, and hold harmless Seller from all claims and costs
incurred by Seller as a result of anyone’s claiming by or through Buyer any fee, commission or
compensation on account of this Agreement except for the Broker. Seller warrants that it has not
dealt with a real estate broker, except the Broker and agrees to indemnify, defend, and hold
harmless Buyer from all claims and costs incurred by Buyer as a result of anyone’s claiming by or
through Seller any fee, commission or compensation on account of this Agreement. Seller agrees to
pay the Broker under terms set forth in a separate agreement between Broker and Seller.

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     15. Default and Remedies.

          (a) In the event of a breach of this Agreement by Seller prior to Closing, Buyer shall have an
election of the remedies of (i) specific performance or (ii) receiving the return of its Deposit
with accrued interest, but Buyer shall not have the remedy of compensatory, punitive or any other
damages which Buyer expressly waives and agrees Buyer shall not be entitled to receive in any
action or proceeding. Provided however, the obligations of Seller and the remedies of Buyer under
Section 5(b) relating to curing title defaults shall not be modified by this Section.
Notwithstanding the foregoing, if Seller is unwilling or unable to cure any title objection, then
Buyer shall only have the remedies set forth in Section 5(b). Notwithstanding the foregoing, Buyer
shall not be limited by the remedies herein for Seller’s breach of its obligations under Sections 8
and 14.

          (b) In the event of a breach of this Agreement by Buyer prior to Closing, Seller’s sole remedy
shall be to retain the Deposit with accrued interest, not as a penalty, but as liquidated damages,
that the parties agree is a fair calculation of the Seller’s damages which damages would be very
expensive to establish. It shall be a breach of this Agreement and an automatic default by the
Buyer if its check for the Deposit is not honored. Notwithstanding the foregoing, Seller shall not
be limited by the remedies herein for Buyer’s breach of its obligation under Sections 8 and 14.

          (c) If Buyer closes the transactions contemplated by this Agreement and, after the Closing
Date, Buyer discovers a breach of any of Seller’s representations, warranties, covenants or
indemnities hereunder or under any certificates and other documents executed at, or in connection
with, the Closing, Buyer shall have the right, (until the applicable Lease Survival Date or
Agreement Survival Date, if any, with respect to the representations in Section 16(a)) to sue
Seller for actual direct damages incurred by Buyer as a result of such breach or breaches.
However, no claim against Seller for any breach of a representation, covenant, condition or
indemnity may be made by Buyer unless the claims, individually or in the aggregate, shall be in
excess of Twenty Five Thousand Dollars ($25,000) (the “Minimum Amount”) after taking into account
all prior claims and only to the extent such claims are in excess of the Minimum Amount.
Notwithstanding anything contained herein to the contrary, if Buyer had actual knowledge of a
default by Seller on the Closing Date and Buyer elects to close the transaction contemplated
herein, Buyer shall be deemed to have irrevocably waived such default and Seller shall not have any
liability with respect to such default.

     16. Representations of the Seller.

          (a) Seller represents and warrants that:

               (i) Seller is a corporation duly organized, validly existing and in good standing under the
laws of the State of Delaware, is authorized to do business in the State of New Jersey, and has
full power and authority to execute and deliver this Agreement and all other documents now or
hereafter to be executed and delivered by it pursuant to this Agreement (the “Seller’s Documents”)
and to perform all obligations arising under this Agreement and the Seller’s Documents.

20

 

               (ii) This Agreement constitutes, and the Seller’s Documents will each constitute, the legal,
valid and binding obligations of Seller, enforceable against Seller in accordance with their
respective terms, subject to bankruptcy, reorganization and other similar laws affecting the
enforcement of creditors’ rights generally and except as may be limited by general equitable
principles.

               (iii) Neither Seller nor any person or entity owning or controlling any interest in Seller is
acting, directly or indirectly, for or on behalf of any person, entity, group or nation named by
the United States Treasury Department Office of Foreign Assets Control (OFAC) as a ‘Specifically
Designated National and Blocked Person,’ or for or on behalf of any person, entity, group or nation
designated in Presidential Executive Order 13224 as a person who commits, threatens to commit, or
supports terrorism.

               (iv) This Agreement and the Seller’s Documents do not and will not contravene any provision of
the organizational documents of Seller, any judgment, order, decree, writ or injunction, or any
provision of any existing law or regulation to which Seller is a party or by which Seller is bound.
The execution and delivery of this Agreement by Seller and the consummation by Seller of the
transactions contemplated hereby do not and will not require (except to the extent, if any, set
forth herein or in the documents listed in the Exhibits attached hereto) any consent by any third
party (including, without limitation, the consent of any direct or indirect owner of Seller) or
such consent has, as of the Effective Date, been obtained by Seller.

               (v) Except as set forth on Exhibit B, Seller has not entered into any service contracts for
the Property that will be binding on Buyer and/or the Property after the Closing.

               (vi) There are no pending actions, suits, arbitrations, claims or proceedings at law or in
equity affecting the Property or Seller which would have a Material Adverse Effect on the Property
or Seller’s ability to perform under this Agreement and Seller has not received any written notices
of any such threatened or contemplated actions, suits, arbitrations, claims or proceedings at law
or in equity which claims would not be fully covered by insurance (subject to deductibles).

               (vii) Except for the agreement for real estate services between the Seller and GVA Williams
dated December 1, 2006, there are no leasing commission agreements entered into by Seller and in
effect as of the Effective Date.

               (viii) To Seller’s Knowledge, other than the ISRA review triggered by the signing of this
Agreement and those exceptions on Exhibit I attached hereto, there is no pending or threatened
proceeding or inquiry by any governmental agency with respect to the production, disposal or
storage at the Property of any Hazardous Substances.

               (ix) To Seller’s Knowledge, Seller has made available all Seller Documents (including, without
limitation, the Environmental Documents) to Buyer and Seller has no Knowledge of any Environmental
Conditions or non-compliance with Environmental Laws with regard to the Property other than as
disclosed in the Environmental Documents.

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               (x) The Seller has not received any written notice of any violation or alleged violation of
any legal requirement affecting the Property, including, without limitation, any violation or
alleged violation of any local, state or federal environmental, zoning, handicap, health, safety,
or fire law, ordinance, code, regulation, rule or order, and specifically including, without
limitation, variances or special permits affecting the Property except for the exceptions on
Exhibit I.

               (xi) The Seller has not received any notice of any pending or threatened litigation, claim or
governmental proceeding (including, without limitation, condemnation or eminent domain proceeding,
special assessment, rezoning or moratorium) affecting the Seller’s ability to perform under this
Agreement or the Property and has no knowledge that such litigation, claim or proceeding exists.

               (xii) There are no contracts, agreements or understandings, oral or written, including any
leases or license agreements that Seller has with any person, entity or governmental authority
affecting the Property or under which Buyer will be obligated to pay any sums from and after the
Closing, other than the Contracts.

               (xiii) Seller has not filed and is not aware of any application, submission or request for any
zoning, site plan approval, variance, waiver, license, sewer permit, building permit or other
governmental or quasi-governmental approval from any governmental authority or utility company in
connection with the development and/or use of the Property which is now pending.

               (xiv) The Property is owned by Seller subject to the Permitted Exceptions and mortgage lien
that secure Seller’s credit facilities which mortgages will be discharged of record at Closing.

               (xv) There are no parties in possession of any portion of the Property (other than Seller) as
trespassers or otherwise except for customer representatives who will vacate at the end of the term
of the Lease.

               (xvi) The sale of the Property does not represent substantially all the assets of the Seller.

          (b) Notwithstanding anything herein to the contrary, Seller shall have no liability to Buyer
for a breach of any representation or warranty hereunder, if the breach in question is based on a
condition, state of facts or other matter which was actually known by Buyer or disclosed in writing
to Buyer on or prior to the Effective Date, Seller shall be deemed to have not made any
representation or warranty, and Seller shall have no obligation or liability to Buyer with respect
to the inaccuracy or breach of any representation or warranty of Seller hereunder, to the extent
such inaccuracy or breach (i) is actually known by Buyer or included in the information or any due
diligence materials furnished or made available to Buyer by Seller or any other party
(collectively, the “Specified Documents”), (ii) becomes actually known to Buyer prior to the
Closing Date and Buyer does not prior to the Closing Date, provide written notice thereof to
Seller, or (iii) arises from the act or omission of Buyer or was consented to by Buyer in writing.

22

 

          (c) If, as of the Closing Date, any agreement affecting the Property is not in effect or a
party to any agreement with respect to the Property is in default (except for Seller), such fact
shall not, in any way, relieve Buyer of its obligation to purchase the Property or entitle Buyer to
a reduction in the Purchase Price.

          (d) To the extent the Specified Documents contain provisions inconsistent with or different
from the representations and warranties made in Section 16(a) or Buyer has actual knowledge of such
inconsistency or difference, then such representations and warranties shall be deemed modified to
conform them to the provisions of the Specified Documents or to such different or inconsistent
facts known to Buyer.

          (e) Seller’s representations and warranties under Section 16 shall be true and correct as of
the Effective Date, shall be true and correct and deemed repeated as of Closing. The
representations in Section 16(a)(v), (vi), (vii), (viii), (ix), (x), (xii) and (xv) of this
Agreement shall survive the Closing and delivery of the Deed for one (1) year after the termination
of the Lease and surrender of the Property to Buyer (the “Lease Survival Date”). All other
representations and warranties of Seller in Section 16 shall survive for one (1) year from the date
of Closing and delivery of the Deed (the “Agreement Survival Date.”).

     17. Representations of Buyer. Buyer represents and warrants to Seller that:

          (a) Buyer is a corporation duly organized, validly existing and in good standing under the
laws of the State of New York. At the Closing Date, Buyer will be authorized to do business in the
State of New Jersey. Buyer has full power and authority to execute and deliver this Agreement and
all other documents now or hereafter to be executed and delivered by it pursuant to this Agreement
(the “Buyer’s Documents”) and to perform all obligations arising under this Agreement and the
Buyer’s Documents. This Agreement constitutes, and the Buyer’s Documents will each constitute, the
legal, valid and binding obligations of Buyer, enforceable against Buyer in accordance with their
respective terms, covenants and conditions, subject to bankruptcy, reorganization and other similar
laws affecting the enforcement of creditors’ rights generally, and except as may be limited by
general equitable principles. The execution and delivery of this Agreement and the Buyer’s
Documents, and the performance by Buyer of its obligations hereunder and thereunder, have been duly
authorized and/or approved by all requisite persons and entities (each of whom was itself duly
authorized to grant such authorization and/or or approval).

          (b) Neither Buyer nor any person or entity owning or controlling any interest in Buyer is
acting, directly or indirectly, for or on behalf of any person, entity, group or nation named by
the United States Treasury Department Office of Foreign Assets Control (OFAC) as a ‘Specifically
Designated National and Blocked Person,’ or for or on behalf of any person, entity, group or nation
designated in Presidential Executive Order 13224 as a person who commits, threatens to commit, or
supports terrorism.

          (c) This Agreement and the Buyer’s Documents do not and will not contravene any provision of
the organizational documents of Buyer, any judgment, order, decree, writ or injunction, or any
provision of any existing law or regulation to which Buyer is a party or is bound. The execution
and delivery of this Agreement by Buyer and the consummation by

23

 

Buyer of the transactions contemplated hereby do not and will not require (except to the
extent, specifically set forth herein) any consent by any third party (including, without
limitation, the consent of any direct or indirect owner of Buyer) that has not been obtained on or
before the date of this Agreement.

          (d) No litigation, or governmental or agency proceeding or investigation is pending or
threatened against Buyer which would materially impair or adversely affect Buyer’s ability to
perform its obligations under this Agreement and/or consummate the transactions contemplated
herein.

          (e) Buyer has the financial wherewithal to perform its obligations hereunder.

     18. Notices. All communications under this Agreement shall be in writing, and shall be deemed
to be sufficiently given and delivered by the party or its legal counsel on the date presented (by
Federal Express or other nationally recognized courier) and a receipt is given or on the fourth (4)
day after having been mailed by certified mail, return receipt requested, to a party or its legal
counsel set forth below at the following addresses, or to such other address as such party may
designate to the other party in writing;

(a) To the Seller:

Gerald C. Harvey, Esq.

Executive VP, General Counsel and Secretary

Breeze-Eastern Corporation

700 Liberty Avenue

Union, NJ 07083-8198

(908) 624-4205

Fax: (908) 686-6537

Email: gharvey@breeze-eastern.com

with copies to Seller’s counsel and as Escrow Agent:

Ira B Marcus, Esq.

Marcus, Brody, Ford, Kessler & Sahner, L.L.C.

5 Becker Farm Road

Roseland, New Jersey 07068

973-232-0603

Fax 973-994-2767

Email: ibmarcus@marcusbrodylaw.com

(b) To the Buyer:

Allan N. Rauch, Esq.

c/o Bed Bath & Beyond Inc.

650 Liberty Avenue,

Union, New Jersey 07083

(908) 688-0888

Fax (908) 688-8385

Email: allan.rauch@bedbath.com

24

 

With copies to Buyer’s counsel:

Nicholas Racioppi, Jr., Esq.

Riker, Danzig, Scherer, Hyland & Perretti, LLP

One Speedwell Avenue

Headquarters Plaza

Morristown, New Jersey 07962

973-451-8492

Fax 973-451-8608

Email: nracioppi@riker.com

The facsimile numbers and email addresses are listed above for the convenience of the parties as
such methods of communication are not adequate notice under this Agreement. Written notices by any
party may be given by counsel for a party to the counsel for the other party and such notices shall
constitute validly given notices under this Agreement if given by the methods set forth above.

     19. Timing. If any date herein shall fall on a Saturday, Sunday, or national holiday
(“Non-business Day”), the date shall automatically be advanced to the first business weekday
thereafter; but if that day is a Non-business Day, then the date shall be the next business day.

     20. Entire Agreement. This Agreement, Schedule 1 and the exhibits attached hereto constitute
the entire agreement between the parties and supersede all other negotiations, understandings, and
representations made by and between the parties and their agents, servants, and employees.

     21. Counterparts. This Agreement may be executed in multiple counterparts, each of which
shall be deemed an original but all of which shall constitute one and the same instrument.

     22. Purchase Price Not To Be Prorated. It is mutually agreed and understood by the parties to
this Agreement that any reference herein as to the acreage of the underlying land owned by the
Seller are approximations only, and in the event that a survey or other measurement should reveal
that such land is more or less than stated herein, there shall be no apportionment or proration of
the Purchase Price herein set forth.

     23. Acceptance by Buyer. Except as expressly provided herein or in a document delivered at
Closing, the acceptance of the deed by Buyer shall be deemed to be a full performance and discharge
of every agreement and obligation of Seller to be performed pursuant to the provisions of this
Agreement.

     24. No Survival. Except as otherwise provided herein for post closing adjustments,
indemnification under the inspection and brokerage provisions and other matters specifically

25

 

stated, none of the provisions of this Agreement shall survive the delivery of the deed and
closing of title.

     25. Assignment and Recordation.

          (a) The Buyer may not assign this Agreement without the prior written consent of the Seller,
other than to an entity that controls, is controlled by, or is under common control with Buyer (or
its affiliate) in which event Buyer shall not need Seller’s consent. However, Buyer shall provide
Seller with a copy of an assignment and assumption agreement within five (5) days of such
assignment and no assignment shall relieve the original Buyer from its obligations to Seller
hereunder. In the event Buyer attempts to transfer or assign this Agreement except as specifically
permitted herein, such event shall constitute Buyer’s default hereunder and Seller shall have the
option to terminate this Agreement. Buyer shall not be permitted to record this Agreement or any
memorandum hereof prior to Closing, but shall be permitted to file a notice of settlement as
provided below. In the event such Agreement or any memorandum is recorded in violation hereof,
such event shall constitute Buyer’s default hereunder for which Seller may terminate this Agreement
and Buyer shall be liable to Seller for any costs and expenses, including Seller’s attorney’s fees,
to quiet title or discharge such recorded agreement or a memorandum of this Agreement. Seller may
assign this Agreement to a qualified exchange agent in order to effectuate a tax free exchange as
provided for in Section 31 hereof.

          (b) The foregoing does not prohibit the Buyer from filing with the Union County Clerk a Notice
of Settlement prior to the Closing Date.

     26. Further Assurances. From time to time at the request of either Seller or Buyer (whether
before or after Closing), the other party shall execute, acknowledge and deliver such other and
further documents as the requesting party may reasonably request to better effectuate the
provisions of this Agreement.

     27. Confidentiality. Buyer agrees that (i) the existence and subject matter of this Agreement
and all of the terms hereof and (ii) any and all materials and information provided by Seller to
Buyer, including, without limitation, the Specified Information, shall be kept strictly
confidential in accordance with the terms hereof (except as required by law or on the written
advice by corporate counsel). Without in any way limiting the foregoing, Buyer expressly agrees
not to have any discussions regarding, or share any information relating to, this Agreement or the
terms hereof, with any party except as otherwise specifically permitted under this Agreement.

     28. Press Releases. Except to the extent required by law regulation or rule of an applicable
stock exchange, Seller and Buyer each agree that it will not issue any press release, advertisement
or other public communication with respect to this Agreement or the transactions contemplated
hereby without the prior written consent of the other party hereto, which consent may be withheld
in each party’s sole and absolute discretion. If Seller or Buyer is required by law, regulation or
rule of an applicable stock exchange to issue such a press release or other public communication,
at least one (1) Business Days prior to the issuance of the same such party shall deliver a copy of
the proposed press release or other public communication to the other party hereto for its review
and approval (which approval shall not be

26

 

unreasonably withheld, conditioned or delayed). Notwithstanding the foregoing, Seller and
Buyer may make an announcement to, and otherwise communicate with, their respective direct and
indirect investors, employees, owners, legal counsel, accountants and lenders regarding this
Agreement and/or the transactions contemplated herein, without the consent of the other Party.

     29. Escrow Agent.

          (a) The parties acknowledge that the Escrow Agent is counsel to the Seller, and agrees that
the Escrow Agent may serve as its counsel notwithstanding its position as Escrow Agent under this
Agreement. The Buyer, after consultation with its counsel, expressly waives any right to object to
the Escrow Agent representing the Seller and agrees that the Escrow Agent may do so if any
litigation or other proceeding occurs between the Buyer and Seller. The Escrow Agent shall have no
liability to either Buyer or Seller so long as it acts without gross negligence nor willfully
violates the terms of this Agreement as Escrow Agent. Except as provided below, the Escrow Agent
shall only disburse the funds in escrow with the prior written approval of the parties to this
Agreement, and, if no agreement is reached, the Escrow Agent may deposit the funds in a court of
competent jurisdiction seeking the court to resolve such dispute.

          (b) The Escrow Agent will deliver the Deposit and any interest thereon to Seller or to Buyer,
as the case may be, under the following conditions:

               (i) To the Buyer if Buyer terminates on or prior to the Due Diligence Termination Date;

               (ii) To Seller at the Closing;

               (iii) To Seller upon receipt of written demand therefor (“Seller’s Demand for Deposit”)
stating that Buyer has defaulted in the performance of Buyer’s obligation to close under this
Agreement and the facts and circumstances underlying such default; provided, however, that the
Escrow Agent shall not honor such demand until more than ten (10) days after the Escrow Agent shall
have sent a copy of such demand to the Buyer in accordance with the provisions of Section 18, nor
thereafter if the Escrow Agent shall have received a “Notice of Objection” (as such term is defined
in (c) below) from Buyer within such ten (10) day period; or

               (iv) To Buyer upon receipt of written demand therefor (“Buyer’s Demand for Deposit”) stating
that this Agreement has been terminated in accordance with the provisions hereof, or that Seller
has defaulted in the performance of any of Seller’s obligations under this Agreement, and the facts
and circumstances underlying the same; provided, however, that the Escrow Agent shall not honor
such demand until more than ten (10) days after the Escrow Agent shall have sent a copy of such
demand to Seller in accordance with the provisions of Section 18, nor thereafter, if the Escrow
Agent shall have received a Notice of Objection from Seller within such ten (10) day period.

          (c) Within two (2) business days of the receipt by the Escrow Agent of a Seller’s Demand for
Deposit or a Buyer’s Demand for Deposit, the Escrow Agent shall send a copy thereof to the other
party by certified mail, return receipt requested, and otherwise as provided in Section 18 of this
Agreement. The other party shall have the right to object to the

27

 

delivery of the Deposit by sending written notice (the “Notice of Objection”) of such
objection to the Escrow Agent by certified mail, return receipt requested, and otherwise as
provided in Section 18 of this Agreement which Notice of Objection shall be deemed null and void
and ineffective if such Notice of Objection is not received by the Escrow Agent within the time
periods prescribed herein. Such notice shall set forth the basis for objecting to the delivery of
the Deposit. Upon receipt of a Notice of Objection, the Escrow Agent shall promptly send a copy
thereto to the party who sent the written demand.

          (d) In the event the Escrow Agent shall have received the Notice of Objection within the time
periods described herein, the Escrow Agent shall continue to hold the Deposit until (i) the Escrow
Agent receives written notice from Seller and Buyer directing the disbursement of the Deposit, in
which case the Escrow Agent shall then disburse the Deposit in accordance with such direction, or
(ii) in the event of litigation between Seller and Buyer, the Escrow Agent shall deliver the
Deposit to the clerk of the court in which said litigation is pending, or (iii) the Escrow Agent
shall take such affirmative steps as the Escrow Agent may, at the Escrow Agent’s option, elect in
order to terminate the Escrow Agent’s duties including, but not limited to, depositing the Deposit
in any court which the Escrow Agent shall select in New Jersey, and commencing an action for
interpleader, the costs of the Escrow Agent thereof to be borne by whichever of Seller or Buyer is
the losing party.

          (e) It is agreed that the duties of the Escrow Agent are only as herein specifically provided,
and subject to the provisions of this Agreement, are purely ministerial in nature, and that the
Escrow Agent shall incur no liability whatever except for willful misconduct or gross negligence,
as long as the Escrow Agent has acted in good faith. The Seller and Buyer each release the Escrow
Agent from any act done or omitted to be done by the Escrow Agent in good faith in the performance
of its duties hereunder.

          (f) The Escrow Agent is acting as a stakeholder only with respect to the Deposit. Upon making
delivery of the Deposit in the manner herein provided, the Escrow Agent shall have no further
liability hereunder.

          (g) The Escrow Agent has executed this Agreement in order to confirm that the Escrow Agent is
holding and will hold the Deposit in escrow in an interest bearing account, pursuant to the
provisions hereof, in a money market account at Union Center National Bank. Buyer shall sign a
form W-9 with its employer identification number upon signing this Agreement or other written
authorization for the Escrow Agent to open that account with the employer identification number of
the Buyer that such bank may require. If the Buyer fails to deliver the form W-9 or written
authorization, then the Escrow Agent may hold the Deposit in a non-interest bearing attorney trust
account until such W-9 or written authorization is delivered containing the employer identification
number of the Buyer.

     30. Miscellaneous.

          (a) Governing Law. This Agreement shall be construed, interpreted and enforced in
accordance with the laws of the State of New Jersey applicable to contracts negotiated, executed
and to be performed wholly within such State. ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST SELLER
OR BUYER ARISING OUT OF OR

28

 

RELATING TO THIS AGREEMENT MAY AT SELLER’S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT
HAVING JURISDICTION IN UNION COUNTY, NEW JERSEY, AND BUYER WAIVES ANY OBJECTIONS WHICH IT MAY NOW
OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR
PROCEEDING, AND BUYER HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF ANY SUCH COURT IN
ANY SUIT, ACTION OR PROCEEDING. IN ANY SUCH SUIT, ACTION OR PROCEEDING THE PARTIES TO THIS
AGREEMENT WAIVE PERSONAL SERVICE OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS AND AGREE THAT SERVICE
THEREOF MAY BE MADE AS PROVIDED IN SECTION 18 ABOVE. Each party hereto acknowledges that it was
represented by counsel in connection with this Agreement and the transactions contemplated herein,
that it and its counsel reviewed and participated in the preparation and negotiation of this
Agreement and the documents and instruments to be delivered hereunder, and that any rule of
construction to the effect that ambiguities are to be resolved against the drafting party shall not
be employed in the interpretation of this Agreement or the documents and instruments to be
delivered hereunder.

          (b) For the purposes of this Agreement, “Knowledge” with respect to Seller shall mean matters
as to which the Executive Officers of Seller (Robert L. G. White, Joseph F. Spanier and Gerald C.
Harvey) have actual, present and personal knowledge without any independent investigation or any
duty or responsibility to make any inquiry, review or investigation. Seller represents that the
foregoing individuals have primary responsibility for the Property within the Seller, and therefore
are the individuals within the Seller with relevant knowledge about the Property. For the purposes
of this Agreement, “Knowledge” with respect to Buyer shall mean matters as to which the following
executives of Buyer, Allen Rauch and Seth Geldzahler, have actual, present and personal knowledge
without any independent investigation or any duty or responsibility to make any inquiry, review or
investigation. Buyer represents that the foregoing individuals have primary responsibility for the
acquisition of the Property within the Buyer, and therefore are the individuals within the Buyer
with relevant knowledge about the Property. Actual knowledge shall not be deemed to exist merely
by assertion by Buyer or Seller of a claim that any of the foregoing persons should have known of
such facts or circumstances, if such person did not have actual knowledge thereof. None of the
individuals listed in this Section 30(b) shall have any personal liability under this Agreement.

          (c) No provision of this Agreement may be changed or waived orally, but only by an instrument
in writing signed by the party to be charged therewith.

          (d) As used herein, the term “including” shall be deemed to mean “including without
limitation”.

          (e) This Agreement shall not be considered in force, binding or in effect in any manner or to
any extent until and unless duly executed and delivered by Buyer and Seller. Seller at all times
prior to such execution and delivery by Buyer and Seller (and at all times subsequent to any
default or breach by Buyer), shall be free to negotiate for the sale of the Property to any other
prospective buyer or for any other disposition of any interest in the Property without prior notice
to Buyer.

29

 

          (f) No person or entity other than a party to this Agreement or a legal representative,
successor in interest or permitted assign or a party hereto shall be entitled to rely on this
Agreement or in the performance of Buyer or Seller hereunder, and this Agreement is not made for
the benefit of any person or entity not a party hereto and no such person or entity shall be
entitled to assert a claim arising out of or in connection with this Agreement.

          (g) A Business Day shall mean a weekday on which the banks are open for business in New
Jersey. If any date herein shall fall on a Saturday, Sunday, or national holiday (“Non-business
Day”), the date shall automatically be advanced to the first weekday thereafter; but if that day is
a Non-business Day, then the date shall be the next Business Day.

     31. Tax Free Exchange. The Seller and the Buyer may conduct a tax free exchange of the
Property and use the proceeds of this sale to acquire, directly or through an exchange agent,
another real property. Each party agrees to cooperate with the exchanging party provided that
Buyer shall not be required to take title to any other property, the exchanging party shall
indemnify, hold harmless and defend the other party from all claims or losses to such party
resulting from its participation in the tax free exchange, and the exchange shall be at no material
out of pocket cost to the non-exchanging party.

     32. Attorneys’ Fees.

     In the event that any action or proceeding is commenced to obtain a declaration of rights
hereunder, to enforce any provision hereof, or to seek rescission of this Agreement for breach or
default contemplated herein, whether legal or equitable, the prevailing party in such action shall
be entitled to recover, in addition to all other relief to which it may be entitled therein, its
reasonable attorneys’ fees and all other out-of-pocket litigation costs (including, but not limited
to filing fees, expert reports and testimony, court costs and other usual costs of litigation of
this type) incurred as a result of such litigation. All indemnities provided for herein shall
include, but not be limited to, the obligation to pay costs of defense in the form of reasonable
attorneys’ fees, and all other out-of-pocket litigation costs (including, but not limited to filing
fees, expert reports and testimony, court costs and other usual costs of litigation of this type)
incurred as a result of such litigation.

[the balance of this page is left intentionally blank — signature page follows]

30

 

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

	 	 	 	 	 	 	 
	 	 	BUYER:

BED BATH & BEYOND INC.
  
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SELLER:

BREEZE-EASTERN CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Solely for purposes to agreeing to the terms of Section 29, the Escrow Agent joins in this
Agreement.

	 	 	 	 
	 

	 	ESCROW AGENT:

Marcus, Brody, Ford, Kessler & Sahner, L.L.C.	 
	 
	 	 	 
	 

	 	 	 
	 

	 	IRA B MARCUS, ESQ.	 

31

 

EXHIBITS

	 	 	 	 	 
	Schedule 1

	 	 	 	Defined Terms
	 
	 	 	 	 
	Exhibit A

	 	—
	 	Legal Description
	 
	 	 	 	 
	Exhibit B

	 	—
	 	Contracts
	 
	 	 	 	 
	Exhibit C

	 	—
	 	Personal Property List
	 
	 	 	 	 
	Exhibit D

	 	—
	 	Lease
	 
	 	 	 	 
	Exhibit E

	 	—
	 	2004 NFA
	 
	 	 	 	 
	Exhibit F

	 	 	 	Access Agreement
	 
	 	 	 	 
	Exhibit G

	 	—
	 	Permitted Title Exceptions
	 
	 	 	 	 
	Exhibit H

	 	—
	 	Affidavit of Title
	 
	 	 	 	 
	Exhibit I

	 	—
	 	Exceptions to Representations
	 
	 	 	 	 
	Exhibit J

	 	 	 	Form of Memorandum

32

 

Schedule 1

	 	 	 	 	 
	Defined Term	 	Section No.
	Land
	 	1(b)
	Improvements
	 	1(b)
	Contracts
	 	1(c)
	Personal Property
	 	1(d)
	Property
	 	1(d)
	Purchase Price
	 	2(a)
	Deposit
	 	2(a)(i)
	Escrow Agent
	 	2(a)(i)
	Lease
	 	2(b)
	Due Diligence Period
	 	3(a)(i)
	Due Diligence Termination Date
	 	3(a)(i)
	ISRA
	 	3(b)(i)
	NJDEP
	 	3(b)(i)
	NFA
	 	3(b)(i)
	2004 NFA
	 	3(b)(iii)
	Access Agreement
	 	3(b)(vi)
	Buyer’s Liability Insurance
	 	4(a)(ii)
	Receiving Party Representatives
	 	4(e)
	Information
	 	4(e)
	Title Commitment
	 	5(a)
	Released Party and Released Parties
	 	6(d)
	Claims
	 	6(d)
	Hazardous Substance(s)
	 	6(d)
	Environmental Law(s)
	 	6(d)
	Recorder’s Office
	 	8(b)
	Proration Time
	 	8(c)
	Closing
	 	11
	Closing Date
	 	11
	Broker
	 	14
	Post-Closing Damage Cap
	 	15(c)
	Minimum Amount
	 	15(c)
	Seller’s Documents
	 	16(a)(i)
	Specified Documents
	 	16(b)
	Buyer’s Documents
	 	17(a)
	Non-business Day
	 	19
	Seller’s Demand for Deposit
	 	29(b)(iii)
	Buyer’s Demand for Deposit
	 	29(b)(iv)
	Notice of Objection
	 	29(c)
	Knowledge
	 	30(b)

33

 

Exhibit A

Legal Description

BEING further described in accordance with the Final Subdivision Plan for Autumn Ridge prepared by
Decker and Coriell, Inc., as follows:

Beginning at a point on the westerly line of Liberty Avenue (60’ wide) said point being one hundred
and thirteen hundredths (100.13’) feet measured southerly along said line from its intersection
with the southerly line of Hickory Road (50’ wide); thence

	1.	 	Along the westerly line of Liberty Avenue South forty seven degrees forty six minutes thirty
seconds West (S 47 46’ 30” W) a distance of four hundred twenty nine and sixty
four hundredths (429,64’) feet to a point on the dividing line of Lot 1 Block 3503 and Lot 1 Block 200; thence
	 
	2.	 	Along said line north forty seven degrees seven minutes West (N 47 07’ W) a distance of eight
hundred fifty eight and eighty three hundredths (858,83’) feet to a point; thence
	 
	3.	 	Through Lot 1 Block 3503 and forming a new line North forty two degrees fifty three minutes
East (N 42 53’ E) a distance of five hundred two and thirty five hundredths (502,35’) feet to a
point on the rear line of lots fronting on Hickory Road; thence
	 
	4.	 	Along said line south forty two degrees twenty two minutes thirty seconds East (S 42 22’ 30” E)
a distance of eight hundred ninety eight and fifty four hundredths
(898.54’___ feet to the place of
beginning.

Together with the benefits and burdens of Declaration of Easement, Covenants and Restriction set
forth in Deed Book 5255, page 199.

FOR INFORMATIONAL PURPOSES ONLY:

“In compliance with Chapter 157, Laws of 1977, premises herein is Lot 1.01 in Block 3503 on the Tax
Map of the Township of Union, County of Union, State of New Jersey.”

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Exhibit B

Existing Contracts

	1.	 	A.D.T. (building alarm)
	 
	2.	 	Approved Fire Protection (fire protection systems)
	 
	3.	 	Brooksite Contractors (snow plowing services)
	 
	4.	 	Correct Temp (HVAC computer controls)
	 
	5.	 	Hatch Mott McDonald (sampling reporting and water flow meter calibration for
the Joint Meeting of Essex and Union County)
	 
	6.	 	Jersey National Cleaning Service (office cleaning)
	 
	7.	 	M.C.M. Mechanical Corp (HVAC units for office area)
	 
	8.	 	Newark Carting (dumpster service)
	 
	9.	 	OTIS  Elevator (elevator maintenance)
	 
	10.	 	Philip Services (waste pickup.)
	 
	11.	 	Western Pest Service (pest control)

35

 

Exhibit C

Personal Property List

     NONE

36

 

Exhibit D

37

 

Exhibit E

2004 NFA

38

 

					
	James E. McGreevey

	 	Department of Environmental Protection
	 	Bradley M. Campbell
	Governor

	 	Bureau of Northern Case Management
	 	Commissioner
	 

	 	P.O. Box 432	 	 
	 

	 	Trenton. NJ 08625-0432	 	 
	 

	 	(609) 777-0899	 	 
	 

	 	www.state.nj.us/dep/srp	 	 

	 	 	 
	 
	 	(SEAL)     
          
          

	Mr. Art Zottola
	 	 
	TransTechnology Corporation

	 	JUN 30 2004
	700 Liberty Avenue
	 	 
	Union, NJ 07083
	 	 

	 	 	 
	RE:

	 	No Further Action Letter and
Covenant Not to Sue — Entire Site, Restricted Use
	 

	 	TransTechnology Corporation
	 

	 	Block: 3503 Lot: 1.01 & 1.02
	 

	 	700 Liberty Avenue
	 

	 	Union Township, Union County
	 

	 	ISRA Case # E98070
	 

	 	Preferred ID: 013853
	 

	 	KCSL # NJD002136901
	 

	 	ISRA Transaction: Sale of Property

Dear Mr. Zottola:

Pursuant to N.J.S.A. 58:10B-13.1
and N.J.A.C. 7:26C, the New Jersey Department of
Environmental Protection (Department) makes a determination that no further action
is necessary for the remediation of the site specifically referenced above,
except as noted below, so long as Trans Technology did not withhold any
information from the Department. This action is based upon information in the
Department’s case file and Trans Technology’s Negative Declaration affidavit
dated June 18, 2004. In issuing this No Further Action Determination and Covenant
Not to Sue, the Department has relied upon the certified representations and
information provided to the Department.

By issuance of this No Further Action Determination, the Department acknowledges
the completion of a Preliminary Assessment, Site Investigation, Remedial
Investigation and at-peril Remedial Actions pursuant to the Technical Requirements
for Site Remediation (N.J.A.C. 7:26E) for the entire site.

NO FURTHER ACTION CONDITIONS

As a condition of this No Further Action Determination pursuant to N.J.S.A.
58:10B-12o, Trans Technology and any other person who was liable for the cleanup
and removal costs, and remains liable pursuant to the Spill Act, shall inform the
Department in writing within 14 calendar days whenever its name or address
changes. Any notices submitted pursuant to this paragraph shall reference the
above case numbers and shall be sent to: Director, Division of Remediation
Management and Response, P.O. Box 28, Trenton, N.J. 08625.

Trans Technology as well as each subsequent owner, lessee and operator (collectively Successors)
shall comply with each of the following:

39

 

Trans Technology

ISRA Case #98070

Page 2 of 4

Pursuant to N.J.S.A. 58:10B-13a, Trans Technology and the Successors shall ensure that the Deed
Notice filed on April 30, 2204 with the County Clerk of Union County is complied with, including
maintenance of applicable engineering controls. The deed notice can
be found at Inst# 137388, pages
DB5427-0807 through DB5427-0832.

Pursuant to N.J.S.A. 58:10B-13.I and N.J.A.C. 7:26E-8, Trans Technology and the Successors shall
conduct monitoring for compliance and effectiveness of the institutional and engineering
control(s) specified in this document and submit written certification to the Department every two
(2) years that the institutional and engineering control(s) are being properly maintained and
continue to be protective of public health and safety and the
environment. Any such certification
shall include the information relied upon to determine that no changes have occurred.

Pursuant to N.J.S.A. 58:4A, Trans Technology shall properly seal all monitoring wells installed as
part of a remediation that will no longer be used for ground water monitoring. A certified and
licensed well driller shall seal the wells in accordance with the requirements of N.J.A.C.
7:9D-3.1 (et seq.). The well abandonment forms shall be completed and submitted to the Bureau of
Water Allocation. Please call (609) 984-6831 for forms and information.

COVENANT NOT TO SUE

The Department issues this Covenant Not to Sue (Covenant) pursuant to N.J.S.A. 58:10B-13.l. That
statute requires a Covenant not to sue with each no further action letter. However, in accordance
with N.J.S.A. 58:10B-13.1, nothing in this Covenant shall benefit any person who is liable,
pursuant to the Spill Compensation and Control Act (Spill Act), N.J.S.A. 58:10-23.11, for cleanup
and removal costs and the Department makes no representation by the issuance of this Covenant,
either express or implied, as to the Spill Act liability of any person.

The Department covenants, except as provided in the preceding paragraph, that it will not bring
any civil action against:

     (a) the person who undertook the remediation;

     (b) subsequent owners of the subject property;

     (c) subsequent lessees of the subject property; and

     (d) subsequent operators at the subject property;

for the purposes of requiring remediation to address contamination, which existed prior to the
June 18,2004 Affidavit of Mr. Gerald C. Harvey, Vice President, Secretary and General Counsel for
Trans Technology Corporation, for the real property at the industrial establishment identified
above, payment of compensation for damages to, or loss of, natural resources, or payment of
cleanup and removal costs for such additional remediation.

The person who undertook the remedial action, and each subsequent owner, lessee and operator,
during that person’s ownership, tenancy or operation, shall maintain all applicable engineering
and institutional controls and conduct periodic compliance monitoring in the manner the Department
requires.

Any person who benefits from
this Covenant may be barred from making a claim against the Spill
Compensation Fund, N.J.S.A. 58:10-23,1li, and the Sanitary Landfill
Facility Contingency Fund,
N.J.S.A. 13: 1E-105, for any costs or damages relating to the remediation covered by this Covenant.
All other claims against these funds will be controlled by the corresponding statutes and their
implementing regulations.

40

 

Trans Technology

ISRA Case #98070

Page 3 of 4

Pursuant to N.J.S.A. 58:10B-13.1d, this Covenant does not relieve any person from the obligation to
comply in the future with laws and regulations. The Department reserves its right to take all
appropriate enforcement for any failure to do so.

The
Department may revoke this Covenant at any time after providing notice upon its determination
that;

	 	a)	 	any person with the legal obligation to comply with any condition in this No Further
Action Determination has failed to do so;
	 
	 	b)	 	any person with the legal obligation to maintain or monitor any engineering or
institutional control has failed to do so; or
	 
	 	c)	 	any person with the legal obligation to submit, on a biennial basis, a certification
that the engineering and institutional controls are being properly maintained and continue
to be protective of the public health and safety and of the environment has failed to do
so.

This Covenant, which the Department has executed in duplicate, shall take effect immediately once
the person who undertook the remediation has signed and dated the Covenant in the lines supplied
below and the Department has received one copy of this document bearing original signatures of the
Department and the person who undertook the remediation.

	 	 	 	 	 	 	 
	 	 	Trans Technology
Corporation.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Mr. Gerald C. Harvey	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:
	 	/s/ Mr. Gerald C. Harvey	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Vice President, Secretary & General Counsel	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated:
	 	 8/2/07	 	 
	 
	 	 	 	 	 	 
	 	 	NEW JERSEY
DEPARTMENT OF	 	 
	 	 	ENVIRONMENTAL PROTECTION	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Name:
	 	Stephen E. Maybury	 	 
	 
	 	 	 	 	 	 
	 

	 	Signature:
	 	/s/ Stephen E. Maybury	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Chief, Bureau of Northern Case Management	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated:
	 	6/30/07	 	 

41

 

Trans Technology

ISRA Case #98070

Page 4 of 4

Please be advised that samples collected from an off-site “drainage way” detected levels of select
base neutral compounds and nickel above the most stringent soil cleanup criteria. However, based on
the fact that this area receives runoff from other off-site
properties and the adjacent railroad
line, no further investigation under this ISRA case is required. Therefore, the presence of this
contamination has been referred to the Bureau of Risk Management, Initial Notice and Case
Assignment for review and further action.

Please be advised that in accordance with the “Department Oversight of the Remediation of
Contaminated Sites” (N.J.A.C. 7:26C), Trans Technology is required to reimburse the Department for
oversight of the remediation. The Department will be issuing a bill within the next four months.

Thank you for your attention to these matters. If you have any questions, please contact Bryan
Moore, Case Manager at 609-984-4077.

Sincerely,

/s/ Stephen E. Maybury,

Stephen E. Maybury, Chief

Bureau of Northern Case Management

	 	 	 
	c:

	 	Martha Donvan, Norris McLaughlin & Marcus
	 

	 	Erin Palko/kathleen Stetser, Roux Assoc.
	 

	 	Dennis V. SanFilippo, Township of Union Dept of Health
	 

	 	Honorable Anthony Terrezza, Mayor, City of Union
	 

	 	Stephen Maybury, NJDEP/BNCM
	 

	 	Rob Hoch, NJDEP/BOMM
	 

	 	Mark Pedersen, NJDEP/BRMINCA
	 

	 	Anne Kadziunas, NJDEP/BRMINCA
	 

	 	NJDEP-Bureau of Water Allocation
	 

	 	John Defina, NJDEP/BISPS

42

 

Exhibit F

Access Agreement

ENVIRONMENTAL ACCESS AGREEMENT

     ACCESS AGREEMENT made as of the ___day of                     , 2007, between BREEZE-EASTERN
CORPORATION (“Licensee”) and BED BATH & BEYOND, INC. (Licensor”).

RECITALS

     A. The Licensor has expressed an interest in purchasing the real property owned by the
Licensee and commonly known as 700 Liberty Avenue, Union, NJ (the “Property”) and has executed and
delivered an Agreement of Sale dated ___, 2007 with respect thereto. All defined terms in the
Agreement of Sale are incorporated herein.

     B. After the sale, the Licensee will be leasing the Property for a period of time and will
have access to the Property during the term of the Lease referred to in the Agreement of Sale,
but after the end of the Lease, the Licensee may require access to the Property for purposes of
conducting certain environmental investigation and remediation.

     C. Licensor desires to grant such access so that Licensee may comply with its contractual
and legal obligations.

     THEREFORE, for the purpose set forth above and in consideration of the recitals and mutual
promises herein contained, Licensee and Licensor agree as follows:

     1. LICENSE

          1.1 Grant. Licensor, on behalf of itself, its divisions, subsidiaries and affiliates,
hereby grants to Licensee, its employees, agents, contractors, sub-contractors,

43

 

employees, invitees, and licensees (collectively “agents or sub-contractors”) a license to
enter upon and use the Property, subject to all the terms and conditions set forth herein.

          1.2 Limitation of Purpose. Licensee may enter upon and use the Property solely for
the purpose of performing such environmental sampling, tests, borings, surveys, engineering
studies, soil studies, general inspections and/or any other studies, tests, excavations or cleanup
operations as Licensee may reasonably deem necessary or advisable to obtain a site wide No Further
Action Letter and Covenant Not To Sue (“NFA”) (“Licensee’s Work”) for the Property.

          1.3. Effective Date. The provisions of this Access Agreement shall apply effective the
date of termination of the Lease for the Property between Licensor and Licensee contemplated by the
Agreement of Sale.

     2. DURATION AND TERMINATION

          2.1 This Agreement shall continue until terminated by either Licensor, Licensee, or upon
issuance of the NFA by NJDEP.

     3. ADDITIONAL CONDITIONS AND TERMS

          3.1 Prior to any entry upon the Property by Licensee, its agents or subcontractors, as defined
in paragraph 1.1 above, Licensee will:

      
         (a) Provide Licensor with no less than three (3) business days prior written notice in order
to be accompanied by a representative or representatives of Licensor during all entries upon the
Property; and

      
         (b) Provide Licensor with evidence of liability insurance coverage from a nationally
recognized insurance company licensed to do business in New Jersey, in the amounts, term and with
the coverage required of Licensor under the Agreement of Sale, Section 4 (a) inspections.

44

 

          3.2 Licensee agrees to indemnify, defend (with counsel reasonably approved by Licensor) and
hold Licensor, its directors, officers, shareholders, employees, representatives, agents and
subagents harmless from and against any and all damages or injury to persons or property and any
actions, liabilities, losses, claims, damages, suits, proceedings, costs and expenses (including
reasonable attorneys fees and costs, including attorneys fees and costs incurred in enforcing this
indemnity) incurred, directly or indirectly, by Licensor, its directors, officers, shareholders,
employees, representatives, agents and subagents arising from, out of, or incident to the acts or
omissions of Licensee or its agents or subcontractors in any way related to their entry onto the
Property and the performance of any inspections, investigations, examinations or surveys of, at, on
or about the Property, either prior to, on, or after the date hereof. The provisions of this
paragraph will survive any closing of title or any termination or cancellation of this Agreement.

          3.3 Licensee shall promptly restore the Property to its condition immediately prior to
Licensee’s Work. Licensee shall (i) accept ownership control over, as generator, and properly
remove, at its sole cost and expense, all soil, groundwater, development water, drilling cuttings,
or other material generated during Licensee’s Work (ii) have the sole responsibility for the proper
handling, storage or disposal of such waste in accordance with the applicable environmental laws,
(iii) fully comply with all laws, rules and regulations applicable to the Property and/or
Licensee’s Work and all other activities undertaken in connection therewith, (iv) use commercially
reasonable efforts to minimize interference with the use or occupancy of the Property (or any
portion thereof) by Licensor (or any of its respective agents, representatives, guests, invitees,
contractors, or employees), and (v)

45

 

permit Licensor to have a representative present during all inspections undertaken hereunder
at Licensor’s sole cost and expense.

     4. GENERAL TERMS

          4.1 Governing Law. This Access Agreement shall be governed by and construed in
accordance with the laws of the State of New Jersey.

     4.2 Entire Agreement. This Access Agreement, the Lease and the Agreement of Sale
dated the date hereof contains the entire agreement between the parties concerning its subject
matter, and supersedes and replaces all prior agreements and understandings with respect to
Licensee’s access to the Property.

          4.3 Representations/Warranties. No representations or warranties are made or have
been relied upon by either party other than those expressly set forth herein.

          4.4 Amendment. No agent, employee, or other representative of either party is
empowered to alter or amend any of the terms of this Access Agreement, unless such alteration
and/or amendment is in writing and has been signed by an authorized representative of each of the
parties. This provision cannot be orally waived.

          4.5 Paragraph Headings. The paragraph headings appearing herein are for the
convenience of the parties and are not to be used or construed so as to modify the terms and
conditions of this Agreement in any fashion.

          4.6 Successors, Assigns, etc. Anything to the contrary notwithstanding, the terms and
conditions of this Access Agreement and the rights and obligations created as a result thereof,
shall be binding upon and/or inure to the benefit of, the parties hereto, their officers,
directors, agents, employees, their respective successors, assigns, designees and contractors.

46

 

    
      4.7 Third Parties. This Access Agreement shall not inure to the benefit of any third
party not a party to this Agreement.

  
   4.8 Notice. Any and all notices permitted or required to be given hereunder, must
be in writing by certified mail return receipt requested or by a recognized overnight mail
courier for Licensee to Breeze-Eastern Corporation, 700 Liberty Avenue, Union, New Jersey,
Attention: Gerald C. Harvey, Esq., and for Licensor to,
            
           
             
            
             
              
     . The parties may change such addresses upon notice
to the other.

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

	 	 	 	 	 	 	 
	 	 	LICENSEE:	 	 
	 
	 	 	 	 	 	 
	 	 	BREEZE-EASTERN CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

     Gerald C. Harvey
	 	 
	 

	 	 	 	     Executive Vice President, General Counsel and	 	 
	 

	 	 	 	     Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	LICENSOR:	 	 
	 
	 	 	 	 	 	 
	 	 	BED BATH & BEYOND, INC	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 

47

 

Exhibit G

Permitted Title Exceptions

	1.	 	Lien of unpaid taxes for year 2007. Subject to possible additional taxes assessed or levied
under R.S. 54:4-63-1 et seq. Subsequent taxes not yet due and payable.
	 
	2.	 	Easement to New York and New Jersey Telephone Company as set forth in Deed Book 472, page
552.
	 
	3.	 	Restrictions as set forth in Deed Book 1211, page 322, as modified by Deed Book 1843, page
379.
	 
	4.	 	Easement to Public Service Electric and Gas Company as set forth in Deed Book 2796, page 1,
and as shown on survey made by International Land Service, Inc., by Daniel E. Parker, NJPLS,
dated July 5, 2002.
	 
	5.	 	Restrictions as set forth in Deed Book 5214, page 0024.
	 
	6.	 	Declaration of Easement, Covenants and Restriction set forth in Deed Book 5255, page 199 and
as shown on survey made by International Land Service, Inc., by Daniel E. Parker, NJPLS, dated
July 5, 2002.
	 
	7.	 	Subject terms, conditions and agreements set forth in Resolution N0. 2001-226 recorded in
Deed Book 5255, page 223, and as shown on survey made by International Land Service, Inc., by
Daniel E. Parker, NJPLS, dated July 5, 2002.
	 
	8.	 	The fire lane and such easements as may be shown on a survey of the Land.

48

 

EXHIBIT H

AFFIDAVIT OF TITLE

	 	 	 	 	 	 	 	 	 
	STATE OF NEW JERSEY

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	SS:	 	 
	COUNTY OF  
               
              
          

	 	 	)	 	 	 	 	 

1. Officers. We are officers of Breeze-Eastern Corporation, formerly named TransTechnology
Corporation, a corporation of the State of Delaware, qualified to do business in the State of
New Jersey. The corporation will be called the “Corporation” and sometimes simply “it” or
“its.” The Executive Vice President, Chief Financial Officer and Treasurer is Joseph F.
Spanier, who has a business address at 700 Liberty Avenue, Union, New Jersey 07083. The
Executive Vice President, General Counsel and Secretary is Gerald C. Harvey, who has a business
address at 700 Liberty Avenue, Union, New Jersey 07083. We are fully familiar with the business
of the Corporation. We are citizens of the United States and are at least 18 years old.

2. Representations. The statements contained in this Affidavit are true to the best of our
knowledge, information and belief.

3. Corporate Authority. The Corporation is the only owner of property located at 700 Liberty
Avenue, Union Township, New Jersey, as more fully described in Commitment No.  
               
   ,
called the “Property.” This Property is to be sold by the Corporation to Bed Bath & Beyond Inc.
(“Buyer”). This action, and the making of this Affidavit of Title, have been duly authorized by
a proper resolution of the Board of Directors of the Corporation. A copy of this resolution is
attached as Exhibit A and made a part of this Affidavit. The Corporation is legally
authorized to transact business in New Jersey. It has paid all state franchise taxes presently
due. Its charter, franchise and corporate powers in its state of incorporation have never been
suspended or revoked. It is not restrained from doing business nor has any legal action been
taken for that purpose. The Corporation changed its name effective October 12, 2006 from
TransTechnology Corporation to Breeze-Eastern Corporation pursuant to action authorized by its
stockholders and its Board of Directors. During the past five years, it has not used any other
name, other than the “doing business as” names Breeze-Eastern, and Breeze-Eastern, a division of
TransTechnology Corporation.

4. Approval by Shareholders. Shareholder approval is not required.

5. Ownership and Possession. It or its predecessors in interest have owned this Property since
July 31, 1952. Since then no one has questioned its right to possession or ownership. The
Corporation has sole possession of this Property. There are no tenants or other occupants of
this Property. Except for its agreement with Bed Bath & Beyond Inc., the

49

 

 Buyer, it has not signed any contracts to sell this Property. It has not given anyone else any
rights concerning the purchase or lease of this Property.

6. Improvements. No additions, alterations or improvements are now in progress or have been
made or worked on within the past four months. It currently holds all necessary permits and
necessary certificates of occupancy. All charges for municipal improvements such as sewers,
sidewalks, curbs or similar improvements benefiting this Property have been paid in full. No
building, addition, extension or alteration on this Property has been made or worked on within
the past fourth months. The Corporation is not aware that anyone has filed or intends to file a
mechanic’s lien, Notice of Unpaid Balance and Right to File a Lien Claim, construction lien or
building contract relating to this Property. No one has notified it that money is due and owing
for construction or repair work on this Property.

7. Liens or Encumbrances. It has not allowed any interest (legal rights) to be created which
affect its ownership or use of this Property. No other persons have legal rights in this
Property, except the rights of utility companies to use this Property along the road or for the
purpose of serving this Property. The Corporation does not have any pending lawsuits or
judgments against it or other legal obligations which may be enforced against this Property. It
does not owe any disability, unemployment, corporate franchise, social security, municipal or
alcoholic beverage tax payments. Except for Wells Fargo FootHill, Inc., as agent (whose lien
shall be released contemporaneous with the effective delivery of this Affidavit), no one has any
security interest in any fixtures on this Property. No bankruptcy or insolvency proceedings
have been started by or against it, nor has it ever been declared bankrupt. All liens (legal
claims, such as judgments) listed on the attached judgment or lien search are not against the
Corporation, but against others with similar names. [Attach search results, if any.]

8. We have been advised that recognizance and/or abstracts or recognizance of bail are not being
indexed among the records of the Union County Clerk/Register’s office and that the Title
Company, Buyer(s) and/or Mortgagee will rely on the truthfulness of this statement. The
undersigned hereby certify that there are no recognizance filed against the undersigned as
either principal or surety on the property which is the subject of this transaction. There are
no unpaid fines or surcharges levied against us by the New Jersey Motor Vehicle Commission.

9. Exceptions. The following is a complete list of exceptions to any of the above statements.
This includes all liens or mortgages which are not being paid as a result of this transaction.

Matters shown on the survey of the Property prepared by
International Land Services, Inc. by Daniel E. Parker, NJPLS, dated
July 5, 2002,and in the pro-forma title policies issued by

50

 

   
                
 Title Insurance Company of New Jersey, Title Nos.
               
              
           .

10. Reliance. The Corporation makes this Affidavit in order to induce the Buyer to accept
title. It is aware that the Buyer and its title insurance company will rely on the statements
made in this Affidavit and on its truthfulness.

	 	 	 	 	 	 	 	 	 
	Signed and sworn to before me on	 	 	 	BREEZE-EASTERN CORPORATION	 	 
	
             
     
     
     
     
     
     
     

   .
	 	 	 	 	 	 
	 	

	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 
	A Notary Public of New Jersey

	 	 	 	 	 	JOSEPH F. SPANIER
Executive Vice President, Chief Financial	 	 
	 

	 	 	 	 	 	Officer and Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	GERALD C. HARVEY	 	 
	 

	 	 	 	 	 	Executive Vice President, General Counsel and	 	 
	 

	 	 	 	 	 	Secretary	 	 

51

 

EXHIBIT I

EXCEPTIONS TO REPRESENTATIONS

	1.	 	A representative of the Occupational Safety and Health Administration (OSHA)
is currently undertaking an inspection of the Seller’s business operations at 700
Liberty Avenue, Union, NJ. No report or other action has been issued by OSHA to date.
	 
	2.	 	Union Township Bureau of Fire Prevention notification of violations #1949/A
dated October 4, 2007, a copy of which is attached hereto.

52

 

	 	 	 
	BUREAU OF PREVENTION
	 	 
	 
	 	 
	FIRE HEADQUARTERS

	 	INSPECTION/VIOLATION# 1949/A
	One Bond Drive
	 	 
	Union, New Jersey 07083-8344

	 	DATE OF NOTICE October 4, 2007
	
(908) 851-5434           
          Fax (908) 851-5423
	 	 
	 

	 	PAGE 1 OF 2

	 	 	 
	LOCATION OF BUILDING 700 Liberty Avenue

	 	INCIDENT # N/A
	 
	 	 
	TENANT Breeze Eastern

	 	DATE OF ORIGINAL INSPECTION October 3, 2007
	 
	 	 
	OWNER OR AGENT Trans Technology Corp.

	 	TYPE OF BUSINESS      
             
            
          
	 
	 	 
	ADDRESS OF OWNER Same

	 	TELEPHONE NO. 908-686-4000
	 
	 	 
	TELEPHONE NO. 908-686-4000

	 	REGISTRATION NO. 2019-68887-001-01

You are hereby notified the following violations of the fire prevention code exist at the above
property. Failure to correct fire violations listed below will result in a penalty being assessed
in accordance with N.J.A.C. 5:70-2.12 et seq.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	NO.	 	CODE SELECTION	 	VIOLATION	 	#1	 	#2	 	#3	 	ABATE BY
	1

	 	5:70-3. l(a)5

F-506.1

F-504.1

NFPA 25
	 	Repair deficiencies in sprinkler system at per report by
MCM Mechanical Corp. License #POO267, dated
July 24, 2007.
	 	 	 	 	 	 	 	11-4-07
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	2

	 	5:70-4.7(h)
	 	As per Retrofit Code, all areas of Building shall be
covered with automatic sprinkler systems due to
Windowless Basement. Areas: Offices in Warehouse,
Offices in Main Building, Storage Areas in Warehouse
and Offices in Basement.
	 	 	 	 	 	 	 	11-4-07
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	3

	 	5:70-3.2(a)6

F-610.2

	 	All exit signs/emergency lights shall be in proper
working order including battery back-up. Area: Cafeteria, Engineering.
	 	 	 	 	 	 	 	11-4-07
	 

	 	F-611.1

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	4

	 	5:70-3.1 (a)5

F-512.2
	 	Have 6 month test performed on Kitchen Hood
Extinguishing System.
	 	 	 	 	 	 	 	11-4-07
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	5

	 	5:70-3. l(a)5

F-512.1

F-512.2
	 	Repair deficiencies in Kitchen Hood Extinguishing
System as per report by Approved Fire Protection,
dated March 23, 2007.
	 	 	 	 	 	 	 	11-4-07

			
	 	 	 
	A-ABATED- VIOLATIONS CORRECTED
	 	U - UNABATED - VIOLATIONS NOT CORRECTED

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Reinspection

	 	Date
	 	 	 	Reinspection
	 	Date
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	Reinspection

	 	Date
	 	 	 	Reinspection
	 	Date

N.J.A.C. 5:70-2.13 Fire Department
Costs — When an owner has been given notice of the existence of a
violation of this code and has not abated the violation, he shall be liable to a penalty in the
amount of the actual cost to the fire department of suppressing any fire directly or indirectly
resulting from the violation.

See reverse side of this form for information concerning your administrative appeal rights, the
procedure for requesting an extension of time in which to comply and a description of authorized
penalties.

	 	 	 	 	 
	 	 	 
	 	/s/ Tom Wolansky
 	 
	 	INSPECTOR TOM WOLANSKY 	 
	 	 	 
	 

53

 

VIOLATION CONTINUATION REPORT

	 	 	 
	 

	 	VIOLATION # 1949/A
	 
	 	 
	 

	 	DATE OF NOTICE October 4, 2007
	 
	 	 
	 

	 	PAGE 2 OF 2
	 
	 	 
	 

	 	LOCATION 700 Liberty Avenue

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	CODE	 	 	 	 	 	 	 	 	 	 
	NO.	 	SELECTION	 	VIOLATION	 	#1	 	#2	 	#3	 	ABATE BY
	6

	 	5:70-3.1(a)3

F-309.2
	 	Have Kitchen Hood professionally cleaned of all
grease deposits from hood, through flue, to roof.
	 	 	 	 	 	 	 	11-4-07
	 

	 	F-309.2.1	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	7

	 	5:70-3.1(a)3

F-310.6
	 	All loose hanging electrical wires shall be removed
or capped off and placed in Junction Boxes with covers.
	 	 	 	 	 	 	 	11-4-07
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	8

	 	5:70-3.l(a)3

F-319.1
	 	All Equipment Room Doors shall be placarded with
signs indication what utilities are behind them.
	 	 	 	 	 	 	 	11-4-07
	 

	 	 	 	Area: 2nd Floor HVAC Room.	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	9

	 	5:70-3. l(a)6

F-608.1
	 	Repair Exit Hardware and locks in Plating Room.
	 	 	 	 	 	 	 	11-4-07

54

 

ADMINISTRATIVE APPEAL RIGHTS

YOU MAY
CONTEST THESE ORDERS at an Administrative Hearing. The request for a
hearing must be made in 

Writing within 15 days after the receipt of this order and addressed to:

	 	 	 
	Construction board of Appeals

	 	Bureau of Fire Prevention
	1976 Morris Avenue

	 	One Bond Drive
	Union New Jersey 07083

	 	Union, New Jersey 07083

     In accordance with the rules promulgated under the Administrative Procedure act
(NJ.S.A.52:148-1 et seq. and 52:14F-1et seq.), an appeal request must sufficiently identify the
decision or action you wish to appeal and the specific reasons forming the basis for you dispute,
in order that a decision may be made as to whether your appeal constitutes a contested case.
Proper appeals forms may be obtained at the Municipal Construction Official’s office.

     
You are advised that only matters deemed to be CONTESTED CASES, as defined by the
Administrative Procedures Act, will be scheduled for a Hearing. If a Hearing is scheduled, you
will be notified in advance of the time and place.

     At a Hearing, a corporation may be represented only by a licensed attorney.

EXTENSIONS

     If a specified time has been give to abate a violation. YOU MAY REQUEST AN EXTENSION OF
TIME by submitting a written request to the Bureau of Fire Prevention. To be considered, the
request my be made before the compliance date specified and must set forth the work
accomplished, the work remaining, the reason why an extension of time is necessary and the dale
by which all work will be completed.

     TAKE
NOTICE THAT, pursuant to N.J.A.C. 5:70-2.10(d), an application for an extension
constitutes an admission that the violation notice is factually and procedurally correct and
that the violations do or did exist.

PENALTIES

     Violation
of the Code is punishable boy monetary penalties of not more than $5,000 per day
for each violation. Each day a violation continues is an additional, separate violation, except
while an appeal is pending. Specific penalties are as follows:

	 	a.	 	Failure to install required protection equipment after having been given
written notice of the requirement to do so - a maximum of $1,000 per violation per
day.
	 
	 	b.	 	Failure to abate any violation after having been given notice of
violation — a maximum of $500 per violation per day.
	 
	 	c.	 	Storage of any material in violation of this Code or the conduct of any
process in violation of the Code - a maximum of $500 per violation per day that this
violation continues.
	 
	 	d.	 	Blocking, locking or obstructing required exits.

	 	I.	 	In a place of public assembly — a maximum of $5,000 per occurrence.

	 
	 	II.	 	In any other place — a maximum of $1,000 per occurrence.

	 	e.	 	Disabling or vandalizing any fire suppression or alarm device or system.

	 	I.	 	In a place of public assembly — a maximum of $5,000 per occurrence.

	 
	 	II.	 	In any other place — a maximum of $1,000 per occurrence.

	 	f.	 	Failure to obey a notice of imminent hazard and order to vacate — a
maximum of $5,000 per day the failure continues.
	 
	 	g.	 	Failure to obey an order to close for a fixed period of time issued
pursuant to this subsection — a maximum of $5,000 per day the failure continues.
	 
	 	h.	 	Obstructing the entry of an authorized inspector into a premise — a maximum of $500
for each occurrence.
	 
	 	i.	 	Any willfully false application for a permit or registration — a
maximum of $1,000 for each occurrence.
	 
	 	j.	 	Any other act or omission prohibited by the Act or the Regulations but not enumerated in this subsection-a maximum of $5,000 per violation per day.

     
Claims arising out of penalty assessments can be compromised or settled if It shall be likely
to result in compliance. Moreover, no such disposition can be finalized while the violation
continues to exist.

     Any penalties assessed are in addition to others previously assessed. Penalties must be paid
in full within 30 days after an order to pay. If full payment is not made within 30 days, the
matter will be referred to the legal Department for summary collection pursuant to the Penalty
Enforcement Law (N.J.S.A, 2A:58-1 et seq.)

NOTICE

     If you require guidance or advice concerning your legal rights, obligations or the course of
action you should follow, consult your own advisor.

55

 

EXHIBIT J-1

MEMORANDUM OF AGREEMENT

     THIS MEMORANDUM OF AGREEMENT is made as of the                      day of                     , 2008 by and between
BREEZE-EASTERN CORPORATION, a Delaware corporation (“Seller”) formerly named TransTechnology
Corporation and successor by merger with Breeze Corporations, Inc., having an address at 700
Liberty Avenue, Union, NJ 07083-8198 and BED BATH & BEYOND INC., a New York corporation (“Buyer”),
having an address at 650 Liberty Avenue, Union, NJ 07083.

     1. By Agreement of Sale dated November ___, 2007(the “Agreement”), Seller agreed to sell and
Buyer agreed to purchase certain lands and premises located in the Township of Union, Union County,
New Jersey, including the land described in Schedule A annexed hereto (the “Land”). The Agreement
was filed as an exhibit to the Seller’s filing with the Securities and Exchange Commission Form 8-K
dated                     , 2007.

     2. Seller may be obligated to remediate certain environmental conditions on the Land and Buyer
has agreed to allow Seller access to the Land in order to do so, all in accordance with the
particular provisions of the Agreement.

     3. Reference is hereby made to the Agreement for a definitive description of Seller’s access
rights.

     4. Nothing contained herein is intended to amend or vary the rights and obligations of the
parties pursuant to the terms of the Agreement.

     5. Since Seller’s access rights as set forth in the Agreement shall run with the Land and bind
and inure to the benefit of Buyer’s successors in title, this Memorandum is being executed and
recorded in order to give notice of the Agreement to such successors in title.

56

 

     6. Upon seller’s receipt of the No Further Action letter described in Section ___of the Lease
attached to the Agreement, this Memorandum shall be null and void and may be discharged of record
unilaterally by Seller, Buyer or their respective successors or assigns.]

     IN WITNESS WHEREOF, this Closing Memorandum has been signed, sealed and delivered by the
parties as of the date first above written.

	 	 	 	 	 
	 	BREEZE-EASTERN CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BED BATH & BEYOND INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

57

 

EXHIBIT J-2

     THIS MEMORANDUM OF AGREEMENT is made as of the                      day of                     , 2008 by and between
BREEZE-EASTERN CORPORATION, a Delaware corporation (“Seller”) formerly named TransTechnology
Corporation and successor by merger with Breeze Corporations, Inc., having an address at 700
Liberty Avenue, Union, NJ 07083-8198 and BED BATH & BEYOND INC., a New York corporation (“Buyer”),
having an address at 650 Liberty Avenue, Union, NJ 07083.

     1. By Agreement of Sale dated November ___, 2007(the “Agreement”), Seller agreed to sell and
Buyer agreed to purchase certain lands and premises located in the Township of Union, Union County,
New Jersey, including the land described in Schedule A annexed hereto (the “Land”). The Agreement
was filed as an exhibit to the Seller’s filing with the Securities and Exchange Commission Form 8-K
dated                     , 2007.

     2. The Agreement provides, in certain circumstances, for a capped aggregate limitation on the
liability of the Seller for environmental conditions, which capped aggregate limitation of
liability of Seller will apply to all future owners with respect to any claim against the Seller.

     3. Reference is hereby made to the Agreement for a definitive description of Seller’s
limitation of liability.

     4. Nothing contained herein is intended to amend or vary the rights and obligations of the
parties pursuant to the terms of the Agreement.

58

 

     5. Since Seller’s limitations of liability as set forth in the Agreement shall run with the
Land and bind Buyer’s successors in title, this Memorandum is being executed and recorded in order
to give notice of such limitations included in the Agreement to such successors in title.

     IN WITNESS WHEREOF, this Closing Memorandum has been signed, sealed and delivered by the
parties as of the date first above written.

	 	 	 	 	 
	 	BREEZE-EASTERN CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BED BATH & BEYOND INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[After the Effective Date of the Agreement, the parties may discuss a mutually acceptable
revision to this Memorandum that shall maintain the limitation of liability notice concept,
but attempt to avoid referring to the Agreement .]

59EX-10.2

 

Exhibit 10.2

NET LEASE AGREEMENT

Between

BED BATH & BEYOND INC.

as Landlord

and

BREEZE-EASTERN CORPORATION

as Tenant

Dated as of January _, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Article 1.
	 	BASIC LEASE PROVISIONS	 	 	1	 
	Article 2.
	 	LEASE	 	 	3	 
	Article 3.
	 	TERM	 	 	3	 
	Article 4.
	 	NET RENT	 	 	4	 
	Article 5.
	 	REAL ESTATE TAXES	 	 	5	 
	Article 6.
	 	INSURANCE	 	 	6	 
	Article 7.
	 	ELECTRIC, WATER AND SEWER FEES	 	 	7	 
	Article 8.
	 	CARE, MAINTENANCE AND ALTERATIONS OF PREMISES	 	 	8	 
	Article 9.
	 	REPAIR AND MAINTENANCE	 	 	9	 
	Article 10.
	 	ASSIGNMENT AND SUBLETTING	 	 	10	 
	Article 11.
	 	COMPLIANCE WITH LAWS, RULES AND REGULATIONS	 	 	12	 
	Article 12.
	 	PERMITTED USE AND ENVIRONMENTAL MATTERS	 	 	12	 
	Article 13.
	 	DAMAGE AND DESTRUCTION	 	 	18	 
	Article 14.
	 	EMINENT DOMAIN	 	 	19	 
	Article 15.
	 	INSOLVENCY OF TENANT	 	 	19	 
	Article 16.
	 	LANDLORD’S REMEDIES ON DEFAULT	 	 	19	 
	Article 17.
	 	DEFICIENCY	 	 	20	 
	Article 18.
	 	ATTORNMENT	 	 	20	 
	Article 19.
	 	RIGHT TO CURE TENANT’S BREACH	 	 	21	 
	Article 20.
	 	CONSTRUCTION LIENS	 	 	21	 
	Article 21.
	 	RIGHT TO INSPECT AND REPAIR	 	 	21	 
	Article 22.
	 	INTERRUPTION OF SERVICES OR USE	 	 	21	 
	Article 23.
	 	ESTOPPEL	 	 	21	 
	Article 24.
	 	HOLDOVER TENANCY	 	 	22	 
	Article 25.
	 	RIGHT TO SHOW PREMISES	 	 	22	 
	Article 26.
	 	LATE CHARGE	 	 	22	 
	Article 27.
	 	NO OTHER REPRESENTATIONS	 	 	22	 
	Article 28.
	 	QUIET ENJOYMENT	 	 	22	 
	Article 29.
	 	INDEMNITY	 	 	23	 
	Article 30.
	 	ARTICLE HEADINGS	 	 	23	 
	Article 31.
	 	APPLICABILITY TO HEIRS AND ASSIGNS	 	 	23	 
	Article 32.
	 	WAIVER OF TRIAL BY JURY	 	 	23	 
	Article 33.
	 	LANDLORD’S LIABILITY FOR LOSS OF PROPERTY	 	 	23	 
	Article 34.
	 	PARTIAL INVALIDITY	 	 	23	 
	Article 35.
	 	BROKER	 	 	23	 
	Article 36.
	 	PERSONAL LIABILITY	 	 	24	 
	Article 37.
	 	FORCE MAJEURE	 	 	24	 
	Article 38.
	 	NOTICES	 	 	24	 
	Article 39.
	 	NO WAIVER	 	 	25	 
	Article 40.
	 	WRITING REQUIRED	 	 	25	 
	Article 41.
	 	COMPLETE AGREEMENT	 	 	25	 
	Article 42.
	 	SIGNS	 	 	25	 
	Article 43.
	 	NO RECORDATION	 	 	25	 
	Article 44.
	 	VALIDITY	 	 	25	 
	Article 45.
	 	MISCELLANEOUS	 	 	26	 

2

 

THIS NET LEASE AGREEMENT, made as of January ___, 2008 between
BED BATH & BEYOND INC., a New York corporation having its principal place of business at 650
Liberty Avenue, Union, NJ 07083
(referred to as “Landlord”)

And

BREEZE-EASTERN CORPORATION, with an address at 700 Liberty Avenue, Union, New Jersey
07083-8198

(referred to as “Tenant”).

WITNESSETH:

     Landlord, for and in consideration of the rents, covenants and agreements hereinafter reserved
and contained on the part of Tenant to be paid, kept and performed, does hereby lease to Tenant,
and Tenant does hereby hire from Landlord, the entire premises including the land (the “Land”) as
more particularly described on Exhibit A attached hereto and made a part hereof, and building,
together with all fixtures, equipment, improvements and installations attached thereto and
improvements erected thereon (the “Building”) known as 700 Liberty Avenue, Union Township, Union
County, New Jersey and a tax map reference of Lot 1.01, Block 3505 on the tax map of Union
Township, together with all other improvements now or hereafter located thereon, and the parking
areas immediately adjacent to the Building with unimpeded ingress and egress to the Building and
parking areas, together with all and singular the appurtenances, rights, privileges and easements
in anywise pertaining thereto; and together with all the right, title and interest, if any, of
Landlord in and to any adjoining sidewalk, and in and to any adjoining street or alley to the
center line thereon upon and subject to those terms, covenants and conditions herein, together with
the right to use all appurtenances, rights, privileges and easements now or hereafter benefiting
the Land or the land upon which the Building is situated. All of the aforementioned Land,
Building, improvements, rights and easements are hereinafter collectively called the “Premises”.

     The use and occupancy by Tenant of the Premises are subject to (a) all zoning ordinances and
regulations now or hereafter in force of any public authority or governmental agency or department
having jurisdiction, and (b) all existing encumbrances, conditions, rights, covenants, restrictions
and rights of way affecting the Premises or the land upon which the Premises is situated.

     To have and to hold the Premises for the term and at the rents and upon the terms, covenants
and conditions hereinafter provided:

     Article 1. BASIC LEASE PROVISIONS. As further supplemented in the balance of this Lease and
the preamble to this Lease, this Article 1 sets forth the basic terms of the Lease and, where
appropriate, defines certain terms used in this Lease.

 

 

          (a) Premises: subject to the provisions of Article 2, the Premises consists of the Land and
Building located at 700 Liberty Avenue, Union Township, Union County, New Jersey.

          (b) Tenant’s Address: 700 Liberty Avenue, Union, New Jersey.

          (c) Landlord’s Address (for notices): 650 Liberty Avenue, Union, New Jersey 07083.

          (d) Lease Term: Twenty-four months.

          (e) Commencement Date: The date hereof.

          (f) Expiration Date: The last day of the twenty-fourth (24th) full calendar month after the
Commencement Date.

          (g) Net Rent: As provided in Article 4.

          (h) Payee of Rent: Landlord.

          (i) Address for Payment of Rent: 650 Liberty Avenue, Union, New Jersey 07083, Attention: Jeff
Cohen.

          (j) Description of Premises: the Land and Buildings at the Premises containing about 176,600
gross square feet of space consisting of a two story office building (the “Office Building”) and a
one story assembly plant and warehouse (the “Assembly Plant”.)

          (k) Security Deposit: NONE.

          (l) Tenant’s Use (set forth with specificity): assembly, warehousing and administrative
offices in connection aircraft hoists, parts and related products and all lawful uses ancillary
thereto.

          (m) Broker: None.

          (n) Tenant’s North American Industry Classification System Code (NAICS Code): 336413.

          (o) Payable upon execution:

               (i) First Month’s Net Monthly Rent of $81,824.67.

               (ii)Security Deposit in the amount of $NONE.

          (p) Landlord’s Work. None.

2

 

          (q) Tenant’s Work: None.

     Article 2. LEASE.

          (a) Landlord, for and in consideration of the rents herein reserved and of the covenants and
agreements herein contained on the part of the Tenant to be performed, hereby leases to the Tenant,
and the Tenant accepts from the Landlord, the Premises.

          (b) Tenant and Landlord acknowledge and agree that, (i) on or before the one (1) year
anniversary of the Commencement Date, Tenant shall vacate and surrender to Landlord approximately
ten thousand (10,000) contiguous square feet of floor area in the rear of the Assembly Plant and
parking spaces for sixty (60) cars in the parking lot located at the Premises (the “Surrender
Space”); (ii) Landlord and Tenant shall work together in good faith to mutually agree upon the
space to be so vacated and surrendered by Tenant and the effective date of the surrender, and (iii)
as of the date Tenant vacates and surrenders the Surrender Space to Landlord (the “Surrender
Date”), the Premises shall no longer include the Surrender Space. Such Surrender Space shall have
its own entrance from the parking area and Landlord will be responsible for the costs and expenses
of a demising wall and all improvements in the Surrender Space. As of the Surrender Date, the Net
Rent payable by Tenant hereunder shall be reduced (using the per square foot annual rate in Article
4(a)) to reflect the Surrender Space is no longer occupied by the Tenant and, subject to Landlord’s
architect certifying the actual gross square footage of the Surrender Space, Tenant’s Additional
Rent and other financial adjustments including Landlord’s pro rata share of the Real Estate Taxes,
insurance and common area maintenance costs shall be equitably determined. The Landlord shall
reimburse (or give Tenant a credit) or pay directly its pro rata share of Real Estate Taxes,
insurance, costs for maintenance and repair of the common areas of the Premises and for all utility
costs for the Surrender Space. Common area maintenance and repair costs shall include all
maintenance and repair of the parking lot, exterior of the Assembly Plant, Assembly Plant roof,
snow plowing, landscaping and similar items. Landlord will carry insurance on its contents and
leasehold improvements in the Surrender Space. Any Real Estate Taxes resulting form an additional
tax assessment due to the construction of the Surrender Space shall be allocated entirely to the
Landlord.

     Article 3. TERM.

          (a) A period of time commencing as of the Commencement Date, and unless sooner terminated as
herein provided, ending at noon on Expiration Date. Tenant shall have the right at any time
following the twelve (12) month anniversary of the Commencement Date to terminate this Lease (the
“Early Termination Option”). The Early Termination Option shall be exercisable by Tenant giving
Landlord at least sixty (60) days’ notice of its intent to terminate this Lease as of the date
specified in said notice. In the event Tenant elects to exercise the Early Termination Option,
this Lease shall terminate on the date set forth in Tenant’s notice to Landlord as if such date
were the Expiration Date hereunder and thereafter neither party shall have any further obligation
or liability to the other except to the extent such obligation or liability would survive the
Expiration Date originally set forth herein, including, but not limited to, those obligations and
liabilities of Tenant set forth in Article 12.

          (b) Tenant has certain service contracts in place which are listed on Exhibit C attached
hereto. Seller will terminate all such service contracts unless Landlord elects to assume

3

 

one or more of such contracts by giving written notice to the Tenant at least forty five (45)
days prior to the Expiration Date or earlier expiration if Tenant exercises the early termination
option (the “Early Expiration Date.”) If Landlord so elects, on or prior to the Expiration Date or
Early Expiration Date the Tenant will assign and Landlord will assume those service contracts that
Landlord has elected to assume. Any service contracts that Landlord does not elect to assume will
be terminated by Tenant at Tenant’s cost and expense, if any. Notwithstanding the foregoing, the
Tenant retains the right to terminate any service contract on Exhibit C if Tenant decides the
vendor is no longer performing satisfactorily or the cost is more than available elsewhere for
comparable services. To the extent Tenant is required to have a service contract by the terms of
this Lease, any terminated service contract will be replaced by a new vendor selected by Tenant.

     Article 4. NET RENT.

          (a) The Tenant shall pay to the Landlord at the Landlord’s Address (or at such other place as
the Landlord may designate in writing from time to time), without offset or deduction, beginning on
the date hereof and, thereafter, on the first day of each and every calendar month during the Lease
Term, the sum of Eighty One Thousand Eight Hundred Twenty Four and 67/100 DOLLARS ($81,824.67) (the
“Monthly Net Rent”) which is calculated on the basis of $5.56 per square foot per annum. The
Monthly Net Rent is referred to as “Net Rent” herein. If the Term commences or ends during the
middle of a calendar month, the Monthly Net Rent for such partial monthly period shall be adjusted
on a per diem basis by dividing the Monthly Net Rent by the number of days in the month and
multiplying the result by the number of days that the Tenant has occupancy of the Premises during
such month. Landlord and Tenant acknowledge and agree that Tenant shall have no obligation to pay
Net Rent on any portion of the Premises that have been surrendered to Landlord pursuant to the
provisions of Article 2, therefore, the Net Rent payable with respect to any month during the Term
following the date Tenant vacates and surrenders the Surrender Space to Landlord will be calculated
based on the actual square footage of the Building occupied by Tenant as of the first day of such
month.

          (b) All charges, costs and sums required to be paid by Tenant to Landlord or third parties for
the benefit of the Premises under this Lease in addition to Net Rent shall be deemed “Additional
Rent,” and Net Rent and Additional Rent shall hereinafter collectively be referred to as “Rent.”
Tenant’s covenant to pay Rent shall be independent of every other covenant in this Lease.

          (c) Monthly Net Rent and any Additional Rent due the Landlord are payable on the first day of
every calendar month in advance without notice, demand, setoff, counterclaim or deduction of any
kind except as provided in this Lease. Additional Rent payable to third parties for the benefit of
the Premises is due when such obligation is payable to such third party without the benefit of any
grace period or late period.

          (d) This is intended to be a “triple net lease” with the Net Rent payable to the Landlord, and
the Tenant is also obligated to pay Real Estate Taxes (hereinafter defined) as hereinafter
provided, and all charges and expenses incurred for the maintenance, and repair of the
non-structural portions of the Premises, insurance, operating expenses for utilities, services,
trash

4

 

removal, and all other costs of operating the Premises as specified elsewhere in this Lease
which costs shall be paid directly by Tenant or as Additional Rent excluding only the mortgage
debts, land lease rents or other encumbrances on the Premises created by the Landlord. Subject to
the specific provisions set forth in Article 8, it is the intention of the parties that the Tenant
shall pay all the foregoing costs, expenses, repairs, maintenance, and operating costs during the
term hereof no matter when such costs and expenses are incurred during the Term except for such
costs and expenses which are expressly the obligation of the Landlord under this Lease. If
Landlord pays any of such expenses, the Landlord shall bill Tenant for such expenses and Tenant
shall pay Landlord such expenses as Additional Rent.

          (e) For all Additional Rent expenses, other than Real Estate Taxes (hereinafter defined) on
the Premises, the Landlord agrees that the Tenant may pay such expenses directly to the vendor
providing such services so long as Tenant is not in default under this Lease, Tenant provides
evidence of payment of any expenses if Landlord requests evidence of payment and Tenant shall
promptly provide to Landlord duplicate copies of the service contract on the heating and air
conditioning systems and sprinkler inspection agreement upon Landlord’s written request. All
Additional Rent which is not due and payable on a monthly basis during the Term, unless otherwise
specified herein, shall be due and payable, (i) if payable to a third party, within the time
permitted for payment without interest, penalty or default, (ii) if payable to Landlord without
specific payment terms set forth herein, within twenty (20) days of delivery by Landlord to Tenant
of notice to pay the same, and (iii) if payable to Landlord in a specific time or manner set forth
herein, in accordance therewith.

     Article 5. REAL ESTATE TAXES.

          (a) As Additional Rent, Tenant shall reimburse Landlord the amount of the Real Estate Taxes
applicable to the Premises during the term of this Lease. As used herein Real Estate Taxes shall
mean the taxes and assessments now or hereafter imposed upon the Premises. If, due to a change in
the method of taxation or assessment, any franchise, income, profit or other tax, however
designated, shall be substituted by the applicable taxing authority in whole or in part, for the
Real Estate Taxes now or hereafter imposed on the Premises, such franchise, income, profit or other
tax shall be deemed to be included in the term “Real Estate Taxes” to the extent of such
substitution.

          (b) Landlord shall provide Tenant with a copy of each invoice for Real Estate Taxes received
by Landlord within thirty (30) days after Landlord receives same. Tenant shall pay to Landlord the
amount of each payment of Real Estate Taxes no less than thirty (30) days before the due date for
same. If Tenant shall pay such payment of Real Estate Taxes to Landlord at least thirty (30) days
in advance of the due date of any payment, then Landlord shall make the payment of Real Estate
Taxes before any interest or penalty is imposed for late payment and shall, upon receipt of proof
of payment, provide Tenant with a copy of same. If Landlord shall not receive a payment of Real
Estate Taxes at least thirty (30) days before its due date, then, in addition to the other rights
and remedies available to Landlord as a result of such failure, Landlord shall have the right to
either (A) delay the payment of such Real Estate Taxes until the later of such payment due date set
forth above or ten (10) days following the payment of such amounts to Landlord by Tenant (and if
such payment is made by check, the date of collection of same) in which event, all interest and
penalties imposed

5

 

shall be paid by Tenant as Additional Rent hereunder; or (B) pay such Real Estate Taxes from
Landlord’s own funds.

          (c) If the Premises are assessed for any special assessments beneficial to the Tenant, Tenant
shall pay all installments due during the Term of the Lease. Tenant shall pay directly all
personal property taxes, water and sewer rents, and other governmental charges relating to Tenant’s
use of the Premises, which may be assessed, levied, confirmed, imposed upon, or grow or become due
and payable at any time during the term of this Lease (all such real estate taxes, assessments and
personal property taxes, water and sewer rents, and other government charges which are payable by
Tenant during the term of this Lease being deemed “Additional Rent”).

          (d) If Landlord shall receive any real estate tax refund or reimbursement of Real Estate Taxes
or a sum in lieu thereof (“Tax Refund”) with respect to any year or portion thereof of which falls
within the Term, then out of any balance remaining of the Tax Refund, after deducting Landlord’s
expenses in obtaining the same being the actual expenses for legal fees and experts, Landlord shall
pay to Tenant an amount equal to such Tax Refund (apportioned if such refund is for a calendar year
a portion of which falls outside the Term); provided that in no event shall Tenant be entitled to
receive more than the payments by Tenant for such calendar year or period.

          (e) Nothing herein contained shall require Tenant to pay state or federal income taxes
assessed against Landlord, state or federal capital levy, estate, succession, inheritance or
transfer taxes of Landlord.

     Article 6. INSURANCE.

          (a) Tenant shall continue to maintain on the Premises, together with its own policy of general
liability insurance, the insurance coverage set forth on Exhibit B attached hereto. Such policy
shall provide that it shall not be cancelable except on thirty (30) days prior written notice to
the Landlord. The Landlord and its mortgagee (provided Landlord has provided to the Tenant prior
written notice of the name of the mortgagee) shall be named additional insured under the liability
policy. All such insurance shall be written by a good and solvent insurance carrier authorized to
do business in the State of New Jersey.

          (b) Tenant’s personal property and fixtures and any other items which Tenant may bring to the
Premises or which may be under Tenant’s care, custody and control which may be subject to any claim
for damages or destruction due to Landlord’s negligence shall be fully insured by a policy of
insurance covering all risks which policy, if available from such insurer, shall specifically
provide for a waiver of subrogation against the Landlord without regard to whether or not same
shall cost an additional premium and notwithstanding anything to the contrary contained in this
Lease. Prior to the Commencement Date Tenant shall deliver to Landlord each policy or a
certificate evidencing such policies of insurance required to be maintained by Tenant pursuant to
the terms of this Lease. At least thirty (30) days prior to the expiration or termination date of
any such policy, the Tenant shall deliver a renewal or replacement policy with proof of the payment
of the premium therefore. Such policy shall provide that it shall not be cancelable except on
thirty (30) days prior written notice to the Landlord.

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          (c) Should Tenant fail to maintain all insurance required, or fail to name the Landlord or its
mortgagee as an additional named insured under the liability policy, then Tenant shall be in
default hereunder and shall be deemed to have breached its covenants as set forth herein.

          (d) Neither Landlord nor Tenant shall be liable to the other or to any insurance company
insuring the other party (by way of subrogation or otherwise) for any loss or damage to any
structure, building or other tangible property, or any resulting loss of income, even though such
damage or loss might have been occasioned by the negligence of Landlord or Tenant or any of their
agents or employees, if any such loss or damage is required to be covered by insurance (as set
forth herein) benefiting the party suffering such loss or damage. To the extent that Landlord and
Tenant have separate insurance policies, Landlord and Tenant shall each procure an appropriate
clause in, or endorsement to, each of their insurance policies pursuant to which each insurance
company waives it right of subrogation. Each insurance policy required to be maintained under this
Lease shall state that with respect to the interest of Landlord the insurance maintained pursuant
to each such policy shall not be invalidated by any action or inaction of Tenant and shall insure
Landlord regardless of any breach or violation of any warranties, declarations, conditions or
exclusions by Tenant.

          (e) Each insurance policy required to be maintained under this Lease shall state that all
provisions of each such insurance policy, except for the limits of liability, shall operate in the
same manner as if a separate policy had been issued to each person or entity insured there under.

          (f) Each insurance policy required to be maintained under this Lease shall state that the
insurance provided thereunder is primary insurance without any right of contribution from any other
insurance which may be carried by or for the benefit of Landlord.

          (g) Each insurance policy required to be maintained under this Lease shall recognize the
indemnification set forth in Article 29 of this Lease.

     Article 7. ELECTRIC, WATER AND SEWER FEES.

          (a) Tenant shall pay for the costs of all electricity, gas, water, sewer and other utilities
directly to the provider of such utilities to the Premises and the Building, interior and exterior.
Any such items which are liens on the Premises shall be paid promptly and before any interest or
penalties are due.

          (b) In the event that any tax is imposed upon Landlord with respect to electric energy
furnished to the Premises by any federal, state, county or municipal authority, Tenant shall pay to
Landlord, on demand, such taxes so assessed against the Premises.

          (c) Landlord shall not be liable in any way to Tenant for any loss, damage or expense which
the Tenant may sustain or incur if either the quantity or character of electric service or other
utilities furnished to the Premises is changed or is no longer available or suitable for Tenant’s
requirements.

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     Article 8. CARE, MAINTENANCE AND ALTERATIONS OF PREMISES.

          (a) The Tenant shall commit no act of waste and shall maintain and take good care of the
Premises and the fixtures and appurtenances therein at Tenant’s sole cost and expense and shall, in
the use and occupancy of the Premises, conform to and comply with all laws, orders and regulations
of the Federal, State and municipal governments. All of the aforesaid maintenance and repairs
shall be consistent in quality with the condition of the Premises on the Commencement Date and in
conformity with all fire and casualty insurance rating services and according to all applicable
building codes and regulations. Further, in light of the Landlord’s plans to significantly
renovate the Building upon termination of the Lease and short term nature of the Lease, Tenant need
not make any repairs that are not essential to its continued use and occupancy of the Premises,
except to the extent required pursuant to the provisions of Article 11 below.

          (b) Not later than the last day of the Term, the Tenant shall remove all of the Tenant’s
personal property and fixtures, including, but not limited to all cranes, lifts and shelving
systems (the “Personal Property”). Tenant shall use commercially reasonable efforts not to cause
any damage to the Premises by reason of Tenant’s removal of such fixtures, alterations,
improvements and Personal Property and shall repair any injury to the building systems and
structure done by or in connection with the installation or removal of said Tenant’s Personal
Property, alterations, fixtures, personalty or improvements excluding any components or fixtures to
be replaced by Landlord in its renovation of the Premises. Except as may be specifically provided
herein, Tenant need not repair or fill any cracks nor pits in the floors left after the removal of
its Personal Property or otherwise remedy any defect or condition in the Premises. Any Personal
Property not removed by Tenant as required herein shall be deemed abandoned thirty (30) days after
the expiration or earlier termination of the Lease, and may be stored, removed and disposed of by
Landlord in its sole discretion, and Tenant waives all claims against Landlord for any damages
resulting from Landlord’s retention or disposal of same. Tenant shall be entitled to no payment or
offset for the value of any abandoned property (even if sold by Landlord) and Tenant shall pay on
demand all costs incurred by Landlord in connection with such removal, disposal or storage. No
retention, disposal or sale of such abandoned property shall limit remedies otherwise available to
Landlord hereunder for a breach of this Agreement by Tenant. The provisions of this subparagraph,
shall be considered an express agreement in lieu of the provisions of N.J.S.A. 2A:18-72 et seq. and
shall in all cases govern the Landlord’s right to dispose of any Tenant’s Personal Property left in
the Premises as provided herein. All obligations of Tenant hereunder not fully performed as of the
termination or expiration of the Lease shall survive such termination or expiration, until they are
performed.

          (c) Tenant shall not, without first obtaining the written consent of the Landlord (which
consent shall be in Landlord’s sole and absolute discretion), make any alterations or improvements
in, to or about the Premises.

          (d) Tenant, at its expense, and with diligence and dispatch, shall procure the cancellation or
discharge of all notices of violation arising from or otherwise connected with Tenant’s
installation of any work performed by Tenant in the Premises (“Tenant’s Work”) that are issued by
any public authority having or asserting jurisdiction. Tenant shall defend, indemnify and save
harmless Landlord against any and all construction and other liens filed in

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connection with Tenant’s installation of the Tenant’s Work, including the liens of any
security interest in, conditional sales of, or chattel mortgages upon, any material, fixtures or
articles so installed in and constituting part of the Premises and, against all costs, expenses and
liabilities incurred in connection with any such lien, security interest, conditional sale or
chattel mortgage or any action or proceeding brought thereon. Tenant, at its expense, shall
procure the satisfaction or discharge of all such liens within thirty (30) days after Landlord
makes written demand therefor. However, nothing herein contained shall prevent Tenant from
contesting, in good faith and at its own expense, any such notice of violation, provided such liens
are bonded to the satisfaction of the Landlord and its mortgage lender.

          (e) All of Tenant’s Work shall be removed from the Premises by Tenant at the end of the term,
unless otherwise agreed to in writing by Landlord. The provisions of this Article shall survive
any termination of this Lease.

     Article 9. REPAIR AND MAINTENANCE.

          (a) As Additional Rent, Tenant shall furnish and pay for, maintain and repair the following
services: heat, ventilation and air conditioning in the Building for which the Tenant shall obtain
a service contract from a reputable contractor and deliver a copy thereof to Landlord; all plumbing
and electrical fixtures; water for ordinary drinking and lavatory purposes, janitorial services;
security services, removal of any of Tenant’s rubbish; light bulbs and ballasts and to repair of
any interior of the Building and its decorations, floor and wall coverings, ceilings, lighting
fixtures or other work within the Premises, exterminate all areas of the Premises; and snow
removal, parking lot and landscaping of the exterior portion of the Premises. Notwithstanding the
foregoing, subject to the provisions of Article 11, since Landlord intends to significantly
renovate the Building and this is a short term Lease, the Tenant need not repair or maintain any
systems or items that are not essential for its continued use and occupancy of the Premises (unless
necessary to prevent waste to the Premises), and/or may affect a temporary repair of such systems
or items provided further that for all mechanical systems and items that are less than five (5)
years old, the Tenant shall maintain and repairs such systems and items in accordance with the
manufacturer’s standards and specifications or customary industry standards.

          (b) Landlord shall not be responsible for any defect in workmanship or other problem that
arises with respect to the Premises or installation of the Tenant’s Work by Tenant or Tenant’s
contractors. Further, Landlord shall not be responsible to the Tenant for any condition in or
about the Premises or the Building that is caused by any act or neglect of the Tenant or any agent,
customer, invitee or licensee of the Tenant, and where any repair is made necessary by any such act
or neglect, the Tenant shall pay directly for such repair.

          (c) The Landlord shall be responsible for the repair of the roof, floors (but not floor
coverings), structural elements and parking lot not caused by neglectful maintenance or intentional
conduct of the Tenant or its employees or invitees or damaged or required to be replaced by reason
of Tenant’s compliance with its environmental obligations pursuant to this Lease Agreement. Any
replacements or costs of a capital nature under generally accepted accounting principles
consistently applied (referred to as “Capital Replacements”), including, but not limited to:

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               (i) rentals and other related expenses incurred in leasing capital items such as air
conditioning systems, elevators or other equipment that would not be considered normal maintenance,
repair, management or operation expenses;

               (ii) alterations to and replacements of capital items such as the roof, structural components,
sprinklers and the parking lot; or

               (iii) costs of equipment, tools and/or improvements not normally expensed in one year,

               (iv) roof and roofing, including flashing, gutters, downspouts, eaves and the like;

               (v) alterations to and replacements of capital items such as the structural components (i.e.
exterior and load-bearing walls), and the parking lot;

               (vi) mechanical and electrical services incorporated in or beneath the structure of the
Building including, without limitation, the HVAC system (excluding routine maintenance and repair
which is the obligation of Tenant); and

               (vii) parking lots, driveways, sidewalks and walkways (excluding the obligation to keep same
free from snow, ice and debris which are obligations of Tenant hereunder)

shall be paid for by Landlord, but since this is a short term Lease and Landlord plans to
substantially renovate the Premises at the end of the term, Landlord may elect not to repair or
replace any of the Capital Replacements in which event Tenant may elect either to (i) pay for a
temporary repair to such Capital Replacement, or (ii) terminate this Lease by giving thirty (30)
days written notice of termination (or such termination notice may be effective earlier if the
Premises cannot be used by Tenant for its business due to the need for such Capital Replacement),
whereupon this Lease shall terminate as if such date were the Expiration Date hereunder and
thereafter neither party shall have any further obligation or liability to the other except to the
extent such obligation or liability would survive the Expiration Date originally set forth herein,
including, but not limited to, those obligations and liabilities of Tenant set forth in Article 12.
Provided however, if the Tenant advises the Landlord in writing that such Capital Replacement is
not essential for its continued use and occupancy, then Tenant may continue to occupy the Premises
and need not reimburse the Landlord as provided herein. If Landlord’s election to not make such
Capital Replacements will materially impair the use and enjoyment of only a portion of the
Premises, the Tenant may elect to surrender such portion to the Landlord and the Net Rent, Real
Estate Taxes and other financial obligations of the Tenant and Landlord shall be equitably adjusted
as if such portion of the Premises were the Surrender Space.

     Article 10. ASSIGNMENT AND SUBLETTING.

          (a) Notwithstanding any other provisions of this Lease to the contrary, the Tenant covenants
and agrees that it will not assign any of its rights under this Lease, delegate any of

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its duties hereunder nor sublet the whole or any part of the Premises; allow any transfer
thereof or any lien upon Tenant’s interest by operation of law; sublet the Premises or any part
thereof; or permit the occupancy of the Premises or any part thereof by anyone other than Tenant
without, in each instance, having first received the express written consent of the Landlord (which
consent with respect to a requested assignment or subleasing may be withheld, delayed or
conditioned in the Landlord’s sole discretion). In the event that Tenant hereunder is a
corporation, limited liability company or other legal entity, then any change in the ownership of
the majority of the outstanding capital stock or beneficial ownership of the Tenant or any merger
or consolidation or transfer of substantially all the assets of the Tenant, shall be deemed an
assignment of this Lease. Any such request shall set forth, in detail reasonably satisfactory to
the Landlord, the identification of the proposed assignee or subtenant, its financial condition and
the terms on which the proposed assignment or subletting is to be made, including (without
limitation) the rent and any other consideration to be paid in respect thereto. Notwithstanding
the foregoing, however, Tenant may assign this Lease or participate in a transaction that is deemed
to be an assignment of this Lease with at least twenty (20) days’ prior written notice to the
Landlord (and without Landlord’s prior written consent) to any entity which is directly or
indirectly controlled by or under common control with Tenant or to any entity which shall acquire
all or substantially all of the stock or assets of Tenant, or participate in a merger or
consolidation or a transaction where the majority of the beneficial interests are transferred,
provided that the net worth of the assignee (or deemed assignee) is equal or greater than the net
worth of the Tenant at the Commencement Date of this Lease and provided that the Tenant provides to
the Landlord at least thirty (30) days prior to the effective date of such assignment in form
satisfactory to Landlord a written agreement whereby such assignee assumes all the obligations
under this Lease, agrees to bound by its terms, provides the evidence of its net worth and the
insurance required hereunder with respect to the assignee or deemed assignee. Any and every such
assignment, delegation, sublet, mortgage, transfer, lien or occupancy is expressly subject to the
further requirements and limits provided in Article 12 below.

          (b) It shall be a condition of the validity of any such consented-to assignment or
consented-to subletting that the assignee or subtenant agrees directly with the Landlord, in form
satisfactory to the Landlord, to be bound by all the obligations of the Tenant hereunder, including
(without limitation) the obligation to pay Net Rent, Additional Rent and other amounts provided
under this Lease and the covenant against assignment or subletting; provided, however, the
acceptance by Landlord of any Rent from any subtenant or assignee or the failure of Landlord to
insist upon a strict performance of any of the terms, conditions and covenants herein from any
assignee or subtenant shall not release Tenant herein, from any and all of the obligations herein
during and for the entire Term of this Lease.

          (c) In the event the Tenant requests that the Landlord consents to an assignment or
subleasing, then the Tenant shall provide the Landlord with a copy of the proposed sublease or
assignment documents,

          (d) Unless otherwise agreed to in writing by Landlord, no assignment or subletting by Tenant
shall reduce, diminish, or otherwise affect the liability of Tenant hereunder and the Tenant named
herein shall remain fully liable for the obligations of the Tenant hereunder, including (without
limitation) the obligation to pay Net Rent, Additional Rent and other amounts provided under this
Lease.

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     Article 11. COMPLIANCE WITH LAWS, RULES AND REGULATIONS.

          (a) Tenant shall promptly, at its own cost and expense, comply with all laws, ordinances,
rules, regulations, requirements and directives of any federal, state, county and municipal
governments or public authorities and of all their departments, bureaus and subdivisions,
applicable to and affecting the Premises, its use and occupancy, and with all orders, regulations,
requirements, rating clauses and reasonable directives of the Board of Fire Underwriters or similar
authority which promulgates fire safety codes, or of any fire insurance rating company and of any
insurance companies which have issued or are about to issue policies of insurance covering the
Premises and its contents, for the prevention of fire or other casualty damage or injury.
Compliance with laws includes all existing and future laws that come into existence and may be
applicable to the Premises.

          (b) Tenant covenants that Tenant shall not do or permit any act or thing to be done in or to
the Premises which is contrary to the Certificate of Occupancy that has been issued with respect to
the Premises or is hereafter issued, or which may, in law, constitute a nuisance, public or
private, or which will invalidate or be in conflict with public liability, fire or other policies
of insurance at any time carried by or for the benefit of Tenant or Landlord with respect to the
Premises or which shall or might subject Landlord to any liability or responsibility to any person
or for property damage. Tenant acknowledges again that it is accepting the Premises “as is” and
will be responsible for compliance with all applicable laws with respect thereto in connection with
its or its subtenants’ operations at the Premises, excluding, from and after the Surrender Date,
the Surrender Space.

          (c) Landlord covenants and agrees that it shall, at all times during the Term and at its sole
cost and expense, promptly comply with all laws, ordinances, rules, regulations, requirements and
directives of any federal, state, county and municipal governments or public authorities and all of
their departments, bureaus and subdivisions, which may in any way be applicable to and affecting
the Premises, except to the extent such compliance is required to be assumed by Tenant as provided
in this Lease.

     Article 12. PERMITTED USE AND ENVIRONMENTAL MATTERS.

          (a) Definitions:

               (i) The term “Hazardous Materials” as used in this Lease shall include, without limitation,
gasoline, petroleum products, explosives, radioactive materials, hazardous materials, hazardous
wastes, hazardous or toxic substances, polychlorinated biphenyls, or related similar materials,
asbestos or any material containing asbestos, or any other substance or material as may be defined
as a hazardous or toxic substance by any Environmental Laws and, shall include “Extraordinary
Hazardous Material” as such term is defined in the Superfund Amendments and Reauthorization Act of
1986 (“SARA”), Public Law No. 99499, 100 Stat. 1613) and/or all such materials as are or may be
listed on and described by the NJDEP’s lists of hazardous substances and/or extremely hazardous
substances.

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               (ii) The term “Environmental Laws” as used in this Lease shall mean, without limitation, and
as in the future be amended (i) the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended, 42 U.S.C. 9601 et seq. (“CERCLA”); (ii) the
Industrial Site Recovery Act, N.J.S.A. 13:1K-6 et seq. (and including the
Hazardous Discharge Site Remediation Site Act, N.J.S.A. 58:10B-1 et seq.)
(collectively “ISRA”); (iii) the New Jersey Spill Compensation and Control Act, as amended,
N.J.S.A. 58:10-23.11 et seq. (“Spill Act”); (iv) the Solid Waste Management
Act, N.J.S.A. 13:1E-1 et seq. (“SWMA”); (v) the Resource Conservation and
Recovery Act, as amended, 42 U.S.C. 6901 et seq. (“RCRA”); (vi) the Occupational
Safety and Health Act of 1970, as amended, 29 U.S.C. § 651 et seq. (“OSHA”); (vii)
the New Jersey Underground Storage of Hazardous Substances Act, as amended, N.J.S.A.
58:10A-21 et seq. (the “Tank Act”); (viii) the New Jersey Water Pollution Control
Act, as amended, N.J.S.A. 58:10A-1 et seq. (“WPCA”); (ix) the New Jersey
Air Pollution Control Act, as amended, N.J.S.A. 26:2C-1 et seq.
(“APCA”), (x) all regulations and rules promulgated pursuant to the aforesaid statutes; and
(xi) any and all present and future guidance, orders, directives, and other laws, applicable to the
Premises, that may provide authority to require the remediation of environmental contamination of
the Premises.

               (iii) The term “Hazardous Discharge” as used in this Lease shall mean any event during the
Term of this Lease at the Premises, involving an emission, spill, release or discharge into or upon
(i) the air, (ii) soils or any improvements located thereon, (iii) surface water or ground water,
or (iv) the sewer, septic system or waste treatment, storage or disposal system servicing the
Premises, of any Hazardous Material, which event is not expressly permitted to occur in accordance
with Environmental Law.

               (iv) The term “Environmental Complaint” as used in this Lease shall mean any complaint, order,
directive, claim, citation or notice by any Governmental Authority (as hereafter defined) or any
other person or entity with respect to (a) a Hazardous Discharge, (b) noise or odor emissions, (c)
solid or liquid waste, or Hazardous Material, disposal, (d) the use, generation, storage,
transportation or disposal of Hazardous Materials or (e) or other environmental, health or safety
matters, as to which any of the foregoing apply to or by reason of, or affect, Tenant, the
Premises, any improvements located thereon, or the use thereof, or the business or operations
therein conducted by the Tenant during the Term of the Lease.

               (v) The term “Governmental Authority” as used in this Lease shall mean any and every federal,
state, county or municipal government, or any department, agency, bureau or other similar type body
obtaining authority therefrom or created pursuant to any applicable Law, and includes without
limitation NJDEP and the United States Environmental Protection Agency (“USEPA”).

               (vi) The term “Occupant” as used in this Lease shall mean the Tenant or any agent, permitted
subtenant, licensee, customer or invitee of Tenant.

          (b) In the event of Tenant’s failure to comply in full with the provisions of this Article
within a reasonable period of time following notice to Tenant of such failure by Landlord or any
Governmental Authority, Landlord may, at its option, perform any and all of Tenant’s

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obligations as aforesaid, and Landlord may enter onto the Premises and/or take any actions as
it deems necessary or advisable to remediate, remove, resolve or minimize the impact of, or
otherwise deal with, any Hazardous Discharge or Environmental Complaint upon Landlord’s receipt of
any notice from any person or entity asserting the happening of a Hazardous Discharge or an
Environmental Complaint on or pertaining to the Premises. All costs and expenses incurred by
Landlord in exercise of this self-help right shall be deemed to be Additional Rent payable on
demand.

          (c) Tenant agrees that Tenant’s use of the Premises shall be strictly limited to the use set
forth in Article 1(l) for Tenant’s business and Tenant shall at no time use the Premises for any
other use and shall not generate, manufacture, refine, transport, treat, store, handle, dispose,
transfer, produce, process or in any manner deal with any “Hazardous Materials” in violation of
applicable Environmental Laws. In no event shall the Tenant install any underground or above
ground storage tanks for any Hazardous Materials or other substances. Tenant covenants that the
NAICS Code in Article 1(n) is accurate with respect to the Tenant and Tenant agrees that it will
not change it NAICS Code nor conduct operations at the Premises that are not consistent with such
NAICS Code without notifying Landlord at least thirty (30) days prior to such event.

          (d) Compliance with ISRA/Environmental Laws.

               Tenant’s Compliance/Tenant Triggers ISRA

               (i) If Tenant believes that ISRA is not applicable to its operations at the Premises during
the Term of this Lease for any such event or transaction that otherwise would require submission of
a General Information Notice, then the Tenant shall, at Tenant’s sole cost and expense, seek and
obtain a Letter of Non-Applicability or De Minimis Quantity Exemption or other exemption as may
then be available under ISRA from NJDEP (an “ISRA Exemption”).

               (ii) If Tenant is unable to obtain an ISRA Exemption for any such transaction or event by
Tenant, its assignees or subtenants, including any closing, terminating or transferring of
ownership of or operations at the Premises, then Tenant shall be obligated to comply with ISRA.
Except as expressly set forth herein, the provisions of the Agreement of Sale Between Tenant (there
Seller) and Landlord (there Buyer) shall govern the scope and extent of Tenant’s and Landlord’s
respective duties, obligations, and alternatives in connection with that required ISRA compliance.

               (iii) Tenant shall, at Tenant’s own expense, subject to the provisions herein, make all
submissions to, provide all information to, and comply with all the requirements of, the NJDEP
under and with respect to ISRA. Sixty (60) days prior to the occurrence of any event or
circumstance obligating Tenant to comply with ISRA (or as soon thereafter as Tenant learns of such
event), Tenant shall promptly, diligently and in good faith pursue issuance by NJDEP of a No
Further Action letter with a covenant not to sue consistent with Tenant’s obligations under this
Lease (an “ISRA NFA”) for the Premises, including, subject to the provisions of Section 12(d)(vii),
the Surrender Space. As to such event or circumstance, and except as set forth in Section
12(d)(vii), Tenant will be solely liable to comply with ISRA by reason of same, and otherwise
satisfy all obligations, duties and liabilities arising from same, at Tenant’s sole cost and
expense without recourse to Landlord.

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               (iv) Subject to Tenant’s obligation to commence and diligently proceed with ISRA compliance
sixty (60) days prior to the occurrence of an event giving rise to such compliance requirement,
Tenant’s obligation to comply with ISRA may be satisfied prior to the expiration or after the
termination of this Lease; provided that to the extent any part of the Premises is not useable by
Landlord upon expiration of the Term for Landlord’s intended purpose of general office or warehouse
use, Tenant shall be deemed a holdover and shall pay rent with respect to such unusable portion in
accordance with Article 24 of this Lease.

               (v) Tenant’s obligations with respect to ISRA, and all other applicable Environmental Laws
shall be to proceed diligently and shall continue until NJDEP determines that ISRA and/or such
applicable Environmental Laws has or have been fully complied with and until all remediation
required of Tenant, whether under ISRA, those Environmental Laws and/or under other provisions of
this Lease has or have been fully implemented and completed.

               (vi) Subject to Section 12(d)(vii), Tenant shall complete ISRA remedial requirements arising
out of Hazardous Discharges occurring at the Premises during the Term of the Lease (or after the
Term of the Lease if caused by Tenant or Tenant’s agents), if any are required, at the Premises to
an unrestricted use standard and no Engineering or Institutional Controls (as defined at N.J.A.C.
7:26E-1.8) shall be permitted in connection with such remediation. This obligation applies only to
the specific Hazardous Materials spilled or discharged (i) by Tenant or its assignees or subtenants
or a third-party, other than the Landlord or its agents, at the Premises during the Term of the
Lease, or (ii) by Tenant or its agents after the Term of the Lease. Otherwise, in accordance with
the Agreement of Sale, Tenant is permitted to utilize Permissible Institutional Controls and
Permissible Engineering Controls as those terms are defined in the Agreement of Sale.

               Landlord’s Compliance/Landlord Triggers ISRA

               (vii) In the event Landlord triggers obligations arising under Environmental Laws, including
ISRA, without material cost to Tenant, Tenant shall assist Landlord by providing and reasonably
executing any documents, to the extent consistent with this Lease, including but not limited to any
notices, applications, filings, affidavits, certifications, permit submissions, remedial action
work plan(s), or other supporting documents, all as may be necessary or advisable for Landlord to
comply with Environmental Laws or otherwise satisfy Landlord’s obligations pursuant to this Lease,
including obtaining an ISRA NFA. It is Landlord’s obligation to file all forms and pay all filing
fees associated with obtaining the ISRA NFA and complying with Environmental Laws. Notwithstanding
the above, however, in the event any investigatory or remedial activities are necessitated due to
Hazardous Discharges at the Premises (i) during the Term of this Lease which are caused by Tenant
or its assignees or subtenants or a third-party, other than the Landlord or its agents, or (ii)
after the Term of this Lease which are caused by Tenant or its agents, then Tenant shall be
responsible to undertake and to pay for those investigatory and remedial activities. If Landlord
is responsible for those Hazardous Discharges, however, then Landlord shall be responsible to
undertake and to pay for those investigatory and remedial activities.

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               (viii) Landlord shall promptly provide to Tenant true, accurate and complete copies of any and
all documents, including without limitation, reports, submissions, applications, notices, orders,
directives, findings and correspondence made by Landlord to, or received from, any Governmental
Authority concerning any Hazardous Discharge or Environmental Complaint during the Term of this
Lease. Landlord shall also promptly provide to Tenant true and complete copies of all
investigation, sampling and test results and/or data, including maps, diagrams, charts and
summaries pertaining to same as prepared by or for Landlord.

               (ix) Landlord has provided Tenant with access to the Premises to satisfy Tenant’s obligations
pursuant to this Article 12 after the end of the Lease Term pursuant to an Environmental Access
Agreement dated the same date as this Lease between Landlord and Tenant.

          (e) Tenant’s Covenants.

               (i) Tenant covenants that the Premises shall not be used to generate, manufacture, refine,
transport, treat, store, handle, dispose, transfer, produce, process or in any manner deal with
Hazardous Materials in violation of applicable Environmental Laws, and Tenant shall not cause or
permit, as a result of any intentional or unintentional act or omission on the part of Tenant or
any Occupant (as hereinafter defined), a Hazardous Discharge. Tenant shall comply with, and ensure
compliance by all Occupants, if any, with all applicable Environmental Laws with respect to any
Hazardous Materials.

               (ii) If Tenant receives any notice of the happening of a Hazardous Discharge or an
Environmental Complaint during or after the Term of this Lease (until Tenant obtains the ISRA NFA
or ISRA Exemption), then Tenant shall give immediate oral and written notice of same to
Landlord, detailing all relevant facts and circumstances and if such Discharge or Complaint relates
to an event or Discharge that occurred (i) during the Term of this Lease and was caused by Tenant
or its agent or a third-party, other than the Landlord or its agents, or (ii) after the Term of
this Lease and was caused by Tenant or its agent, then Tenant shall initiate and complete all steps
and actions necessary or advisable to cleanup, remove, restore, resolve and minimize the impacts of
the Hazardous Discharge or Environmental Complaint at or from the Premises in accordance with
Section 12(d) hereof.

               (iii) Tenant shall promptly provide to Landlord true, accurate and complete copies of any and
all documents, including without limitation, reports, submissions, applications, notices, orders,
directives, findings and correspondence made by Tenant to, or received from, any Governmental
Authority concerning any Hazardous Discharge or Environmental Complaint. Tenant shall also
promptly provide to Landlord true and complete copies of all investigation, sampling and test
results and/or data, including maps, diagrams, charts and summaries pertaining to same as prepared
by or for Tenant.

          (f) The Tenant shall indemnify, defend and hold harmless the Landlord and its affiliates and
their respective directors, shareholders, officers, employees, agents, consultants,
attorneys-in-fact and other representatives (collectively, “Landlord’s Indemnitees”) and each

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mortgagee of the Premises from and against any and all liabilities, damages, suits, fines,
claims, losses, judgments, causes of action, costs and expenses (including reasonable fees and
expenses of counsel, including those incurred to successfully enforce this provision) of any kind
which may be incurred by the Landlord, Landlord’s Indemnitees or any such mortgagee or threatened
against the Landlord, Landlord’s Indemnitees or such mortgagee, arising out of or in any way
connected with (a) any breach by Tenant of the undertakings set forth in this Article 12, (b) any
Hazardous Discharge at or from the Premises (i) due to acts or omissions of Tenant or its agents or
a third-party, other than the Landlord or its agents, during the Term of this Lease or (ii) due to
acts or omissions of Tenant or its agents after the Term of this Lease, and (c) any Environmental
Complaint at or by reason of the Premises (i) due to acts or omissions of Tenant or its agents, or
a third-party, other than the Landlord or its agents, during the Term of this Lease, or (iii) due
to acts or omissions of Tenant or its agents after the Term of this Lease. Provided such indemnity
shall not apply in any instances that a Hazardous Discharge or Environmental Complaint was due to
the acts or omissions of the Landlord, Landlord’s Indemnitees, or Landlord’s invitees at the
Premises. Tenant’s agreement to indemnify shall survive any and every assignment, delegation,
sublet, mortgage, transfer, lien or occupancy subject to the requirements of Article 10, expiration
or sooner termination of this Lease.

          (g) The Landlord shall indemnify, defend and hold harmless the Tenant and its affiliates and
their respective directors, shareholders, officers, employees, agents, consultants,
attorneys-in-fact and other representatives (collectively, “Tenant’s Indemnitees”) from and against
any and all liabilities, damages, suits, fines, claims, losses, judgments, causes of action, costs
and expenses (including reasonable fees and expenses of counsel, including those incurred to
successfully enforce this provision) of any kind which may be incurred by the Tenant, Tenant’s
Indemnitees arising out of or in any way connected with (a) any breach by Landlord of its
representations as set forth in this Article 12, and (b) any Hazardous Discharge at or from the
Premises due to acts or omissions of Landlord or its agents including, but not limited to, from the
Surrender Space (c) from a Hazardous Discharge at the Premises after the term of this Lease, and
(d) any Environmental Complaint at or by reason of the Premises due to acts or omissions of
Landlord or its agents, provided such indemnity shall not apply in any instances that a Hazardous
Discharge or Environmental Complaint was due to the acts or omissions of the Tenant, Tenant’s
Indemnitees, or invitees at the Premises. Landlord’s agreement to indemnify shall survive any and
every assignment, delegation, sublet, transfer, lien or occupancy subject to the requirements of
Article 10, expiration or sooner termination of this Lease.

          (h) Tenant shall promptly notify Landlord of any liens threatened or attached against the
Premises pursuant to the Spill Act or any other Environmental Law. In the event that such a lien
is filed against the Premises as a result of the act or omission of Tenant or any agent or invitee
thereof, Tenant shall, within thirty (30) days from the date that the lien is placed against the
Premises, and at any rate prior to the date any Governmental Authority commences proceedings to
sell the Premises pursuant to the lien, either: (1) pay the claim and remove the lien from the
Premises; or (2) deliver to Landlord either (i) a bond in an amount and with a surety satisfactory
to Landlord, (ii) a cash deposit in the amount of the lien plus any interest that may accrue
thereon, or (iii) other security satisfactory to Landlord in an amount sufficient to satisfy or
discharge the claim out of which the lien arises.

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          (i) The provisions of this Article shall survive any and every assignment, delegation, sublet,
mortgage, transfer, lien or occupancy subject to the requirements of Article 10, as well as the
expiration or earlier termination of this Lease.

     Article 13. DAMAGE AND DESTRUCTION. If the Premises is damaged or destroyed by reason of fire
or any other cause to such extent that the cost of restoration, as reasonably estimated by the
Landlord on the basis of a report by an architect or engineer designated by the Landlord, will
equal or exceed twenty-five percent (25%) of the replacement value of the Premises (exclusive of
foundations) just prior to the occurrence of the damage, then either party may, no later than the
ninetieth (90th) day following such damage or destruction, give the other party a notice of
election to terminate this Lease. In the event of such election, Tenant shall immediately initiate
ISRA compliance consistent with this Lease, including for any Hazardous Discharge resulting from
such casualty, and this Lease shall be deemed to terminate on the sixtieth (60th) day after the
giving of said notice, and the Tenant shall surrender possession of the Premises upon such
termination, and the Net Rent, and any Additional Rent, shall be apportioned as of the date of said
surrender, and any Net Rent or Additional Rent already paid by the Tenant for any period beyond
said date shall be returned to the Tenant. Absent such an election to terminate this Lease, the
Tenant shall remediate any Hazardous Discharge to the extent such casualty caused such Hazardous
Discharge and otherwise Landlord shall restore the damage with reasonable promptness, subject to
Force Majeure (as such term is defined herein) and subject to the Landlord receiving sufficient
insurance proceeds to accomplish the restoration. The Landlord need not restore any Personal
Property, fixture or improvement owned by the Tenant and the Landlord need not restore the Premises
or Building unless it has adequate insurance proceeds available to do so after any mortgagee
deducts therefrom any amount due to it. In case of any damage that renders the Premises unusable
in whole or in part, there shall be an appropriate abatement in Net Rent and Additional Rent
payable hereunder, for the period for which the Premises or portion thereof are unusable to the
extent Landlord receives any rent interruption insurance in lieu thereof. All Additional Rent
obligations of the Tenant shall likewise continue except to the extent Landlord receives any rent
interruption insurance in lieu thereof. Notwithstanding anything contained herein to the contrary,
since this is a short term Lease and Landlord plans to substantially renovate the Premises at the
end of the term, Landlord may elect not to repair or restore the Premises in which event Tenant may
give thirty (30) days written notice of termination (or such termination notice may be effective
earlier if the Premises cannot be used by Tenant for its business due to the need for such repair
or restoration or Tenant may pay for a temporary repair to such damaged), whereupon this Lease
shall terminate as if such date were the Expiration Date hereunder and thereafter neither party
shall have any further obligation or liability to the other except to the extent such obligation or
liability would survive the Expiration Date originally set forth herein, including, but not limited
to, those obligations and liabilities of Tenant set forth in Article 12. Provided however, if the
Tenant advises the Landlord in writing that such repair or restoration is not essential for its
continued use and occupancy, then Tenant may continue to occupy the Premises and the Net Rent, Real
Estate Taxes and other financial obligations of Tenant and Landlord will be equitably adjusted as
if the portion of the Premises that Landlord has elected not to restore and as a result thereof is
no longer usable by the Tenant were the Surrender Space.

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     Article 14. EMINENT DOMAIN.

          (a) If the Tenant’s use of the Premises is substantially impaired, in the reasonable judgment
of Tenant, due to the taking by eminent domain of all or more than twenty five percent (25%) of
the Building (or conveyance in lieu of taking), this Lease shall terminate on the date when title
vests pursuant to such taking or conveyance. The Net Rent, and any Additional Rent, shall be
apportioned as of said termination date, any Net Rent or Additional Rent already paid by the Tenant
for any period beyond said date shall be returned to the Tenant and the security deposit, if any,
to the extent not applied by Landlord in accordance with the provisions of this Lease, shall be
returned to Tenant without interest. The Tenant shall not be entitled to any part of the award
for such taking or any payment in lieu thereof, but the Tenant may file a separate claim for moving
and relocation expenses, provided the same shall in no way affect or diminish the Landlord’s award.
Upon termination of the Lease, Tenant shall immediately initiate ISRA compliance consistent with
this Lease, if any, as required.

          (b) In the event of a temporary condemnation or taking that renders part or all of the
Premises unusable by the Tenant, the Net Rent and Additional Rent shall be equitably abated in the
reasonable judgment of the Landlord during the pendency of such temporary condemnation or taking
and any claim for compensation from the condemnation or taking authority shall belong solely to the
Landlord except for Tenant’s temporary moving and relocation costs; however, but upon the cessation
of such temporary taking or condemnation, the terms and conditions of the Lease shall be apply for
the balance of the term.

     Article 15. INSOLVENCY OF TENANT. The (a) appointment of a receiver to take possession of all
or substantially all of the assets of the Tenant which appointment is not stayed or vacated in
thirty (30) days, or (b) general assignment by the Tenant for the benefit of creditors, or (c) the
initiation of a proceeding by or against the Tenant under any bankruptcy or insolvency law not
vacated or stayed in thirty (30) days, or (d) the Tenant’s inability or failure to pay its
creditors on a timely basis, shall constitute a default of this Lease by the Tenant, and the
Landlord may terminate this Lease forthwith, and upon notice of such termination Tenant’s right to
possession of the Premises shall cease, and the Tenant shall then quit and surrender the Premises
to the Landlord, but the Tenant shall remain liable as provided in this Lease.

     Article 16. LANDLORD’S REMEDIES ON DEFAULT. If Tenant (a) defaults in any payment of Net
Rent, Additional Rent or other amounts due hereunder for ten (10) days or more, or (b) defaults in
the due keeping, observance or performance of any covenant, agreement, term, provision or condition
of Article 6 and such default is not remedied by Tenant within 48 hours after Landlord gives to
Tenant a notice specifying the same or more, or (c) defaults in the performance of any of the other
covenants and conditions hereof following not less than thirty (30) days notice of default and the
opportunity to cure (or if such default cannot be cured within such thirty (30) day period, if
Tenant fails to continue to diligently prosecute such cure), or (d) permits the Premises to become
deserted, abandoned or vacated for more than thirty (30) days without notifying the Landlord at
least thirty (30) days prior thereto reconfirming Tenant’s obligation to pay all Rent and
Additional Rent hereunder and provide security service for the Premises during the vacancy, then
the Landlord shall have the right of re-entry and this Lease shall, at the option of the Landlord,
terminate on fifteen (15) days notice, and the Tenant’s right to possession of the Premises shall
cease, and the Tenant shall then immediately quit and surrender the Premises to the Landlord, but
the Tenant shall remain liable notwithstanding such termination for all Net Rent, Additional Rent

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and all other sums due hereunder and for the observance and performance of any and all
covenants, agreements, terms, provisions and conditions set forth in Article 12. If this Lease
shall have so terminated, the Landlord may at any time thereafter resume possession of the Premises
by any lawful means and remove the Tenant and any other occupants and their effects, at Tenant’s
expense. In addition to any amount or Net or Additional Rent, the Tenant shall also pay to the
Landlord as Additional Rent all of Landlord’s reasonable legal fees and costs in enforcing the
Landlord’s rights under this Lease.

     Article 17. DEFICIENCY.

          (a) In any case where the Landlord has recovered (or has a right pursuant to the terms of this
Lease to recover) possession of the Premises by reason of the Tenant’s default, the Landlord may,
at the Landlord’s option but without any obligation to do so, occupy the Premises or cause the
Premises to be redecorated, altered, divided, consolidated with other adjoining Premises, or
otherwise change or prepare for reletting, and may relet the Premises or any part thereof as agent
of the Tenant or otherwise, for a term or terms to expire prior to, at the same time as, or
subsequent to, the original expiration date of the Term of this Lease, at the Landlord’s option,
and receive the rent therefore. Rent so received shall be applied first to the payment of such
reasonable expenses as Landlord may have incurred in connection with the recovery of possession,
redecorating, altering, dividing, consolidating with other adjoining Premises, or otherwise
changing or preparing for reletting, and the reletting, including brokerage and attorneys’ fees,
and then to the payment of damages in amounts equal to the rent hereunder and to the costs and
expenses of performance of the other covenants of the Tenant as herein provided.  The Tenant
agrees, in any such case, whether or not the Landlord has relet, to pay to the Landlord damages
equal to the Net and Additional Rent and other sums herein agreed to be paid by the Tenant, less
the net proceeds of the reletting, if any, as ascertained from time to time; and the same shall be
payable by the Tenant at the time and in the manner specified above. The Tenant shall not be
entitled to any surplus accruing as a result of any such reletting.  In reletting the Premises as
aforesaid, the Landlord may grant reasonable rent concessions, and the Tenant shall not be credited
therewith.  No such reletting shall constitute a surrender and acceptance or be deemed evidence
thereof. 

          (b) Tenant hereby waives all rights of redemption to which the Tenant might be entitled by any
law now or hereafter in force.

          (c) Landlord’s remedies hereunder are in addition to any remedy allowed by law. Tenant agrees
to pay, as Additional Rent, all reasonable attorneys’ fees and disbursements, and other expenses
incurred by the Landlord in enforcing any of the obligations under this Lease, this covenant to
survive the expiration or sooner termination of this Lease.

     Article 18. ATTORNMENT.

     Upon execution hereof and thereafter Landlord agrees to obtain from its current or any future
mortgagee or ground lessor a subordination, non-disturbance and attornment agreement in writing
providing in substance that so long as Tenant shall have entered into possession and occupancy of
the Premises and commenced payment of Rent hereunder, and so long as Tenant is not in default in
its obligations for the payment of Rent and in the performance of other terms, covenants and
conditions to be performed on its part under the Lease, Tenant’s possession of the

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Premises will not be disturbed during the Term hereof, notwithstanding the foreclosure of any such
mortgage or termination of such land lease, and Tenant will not be named as a party defendant in
any foreclosure or other proceedings brought for the recovery of possession except as required by
law.

     Article 19. RIGHT TO CURE TENANT’S BREACH. If the Tenant breaches any covenant or condition
of this Lease and such breach is not cured in the applicable cure period, the Landlord may, on
reasonable notice to the Tenant (except that no notice need be given in case of emergency), cure
such breach at the expense of the Tenant and the reasonable amount of all expenses, including
attorneys’ fees and expenses, incurred by the Landlord in so doing (whether paid by the Landlord or
not) shall be deemed Additional Rent payable on demand.  In addition, the Tenant shall pay to the
Landlord as Additional Rent an administrative fee of ten percent (10%) of the amount Landlord
advanced. In no way whatsoever shall the Landlord be obligated to effect such cure.

     Article 20. CONSTRUCTION LIENS. The Tenant shall, within thirty (30) days after it becomes
aware thereof, discharge or satisfy by bonding or otherwise any construction lien for materials or
labor claimed to have been furnished to the Premises on the Tenant’s behalf.

     Article 21. RIGHT TO INSPECT AND REPAIR. The Landlord may enter the Premises (but shall not
be obligated to do so) at all reasonable times on reasonable advance notice to the Tenant (except
that no notice need be given in case of emergency) for the purposes of inspection, or the making of
such repairs, replacements or additions, in, to, on and about the Premises and Building, as are
necessary or desirable.  Provided that the Landlord shall have acted reasonably as contemplated
herein, Landlord shall not be liable for any interruption of the Tenant’s business as a result of
the making of any such repair, replacement or addition that is necessary, and in all events
Landlord shall use commercially reasonable efforts to minimize the interruption of Tenant’s
business.

     Article 22. INTERRUPTION OF SERVICES OR USE. Interruption or curtailment of any service
maintained in the Building or use of the Premises shall not entitle the Tenant to any claim against
the Landlord or to any abatement in rent, and shall not constitute a constructive or partial
eviction except if caused by the gross negligence or willful misconduct of the Landlord.

     Article 23. ESTOPPEL. Each party shall, from time to time, on not less than fifteen (15) days
prior written request by the other party, execute, acknowledge and deliver to the requesting party
a written statement certifying on a form provided by the requesting party that the Lease is
unmodified and in full force and effect, or that the Lease is in full force and effect as modified
and listing the instruments of modification; the dates to which the rents and charges have been
paid; whether or not the party is in default hereunder, and, if so, specifying the nature of such
default; and, to the best of the party’s knowledge, whether or not other party is in default
hereunder, and if so, specifying the nature of the default and such other matters that the
requesting party may reasonably require. It is intended that any such statement delivered pursuant
to this Article may be relied on by a prospective purchaser of the requesting party’s interest or a
lender or mortgagee of the requesting party’s interest or assignee of any mortgagee of the
requesting party’s interest.

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     Article 24. HOLDOVER TENANCY. Unless agreed to otherwise by the parties in a writing signed
by both parties, if the Tenant holds possession of the Premises after the expiration of the Term
(and, unless the Landlord has agreed in writing to permit the Tenant to remain in possession
thereafter), Tenant shall become a Tenant from month-to-month under the provisions herein provided.
During the first three (3) calendar months of any such month to month tenancy the Monthly Net Rent
payable hereunder shall be equal to one hundred seventy-five percent (175%) of the Monthly Net Rent
installment and the Additional Rent (which includes all operating expenses, taxes, insurance and
other costs of the Premises) payable immediately prior to the end of the Term, and thereafter the
Monthly Net Rent installment and the Additional Rent shall be equal to two hundred percent (200%)
of said amount, which amounts shall be payable in advance on the first day of each month or part
thereof that the Tenant remains in occupancy and without the requirement for demand or notice by
the Landlord to the Tenant demanding delivery of possession of the Premises. All other terms and
conditions of this Lease shall apply during any such month to month holdover tenancy. Tenant
agrees to indemnify and save Landlord harmless from and against all claims, losses, damages,
liabilities, costs and expenses (including, without limitation, reasonable attorneys’ fees and
disbursements) resulting from delay by Tenant in surrendering the Premises, including, without
limitation, any claims, losses, damages, liabilities, costs and expenses incurred in connection
with contractors and subcontractors hired to perform Landlord’s renovation of the Building for its
intended use. Nothing herein contained shall be deemed to permit Tenant to retain possession of
the Premises after the Expiration Date or to limit in any manner Landlord’s right to regain
possession of the Premises through summary proceeding or otherwise, and no acceptance by Landlord
of payments from Tenant after the Expiration Date shall be deemed to be other than on account of
the amount to be paid by Tenant in accordance with the provisions of this Article 24.

     Article 25. RIGHT TO SHOW PREMISES. The Landlord may show the Premises to prospective
purchasers, mortgagees and tenants, during normal business hours on reasonable advance, written
notice to the Tenant.

     Article 26. LATE CHARGE. If any Net Rent, Additional Rent or other amount payable by the
Tenant to the Landlord hereunder is not paid within seven (7) days of the date due (which seven (7)
day period is inclusive of any applicable notice/cure period), the Tenant shall pay to the Landlord
(as Additional Rent) a late fee of two percent (2%) of the late payment, and, if such payment is
not paid within thirty (30) days of its due date, interest thereon at the rate of six percent (6%)
per annum (but not more than the highest legal rate permissible), from such the due date day until
the same is paid in full.

     Article 27. NO OTHER REPRESENTATIONS. No representations or promise shall be binding on
either party hereto except representations and promises contained in this Lease or in some future
writing signed by the party making such representation(s) or promise(s).

     Article 28. QUIET ENJOYMENT. The Landlord covenants that if, and so long as, the Tenant pays
the Net Rent and any Additional Rent as herein provided, and performs the other covenants required
to be performed by the Tenant hereunder, the Landlord shall do nothing to affect the Tenant’s right
peaceably and quietly to have, hold and enjoy the Premises for the term herein mentioned, subject
to the provisions of this Lease.

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     Article 29. INDEMNITY. The Tenant shall indemnify and save harmless and defend the Landlord
and its agents and Landlord’s Indemnitees against and from (i) any and all claims arising from (x)
the conduct by the Tenant, or any agent, customer, invitee or licensee of the Tenant or any other
party that comes on the Premises during the Term of this Lease (“Tenant Invitee”), of any business
in or about the Premises or any negligent or otherwise wrongful act of any of them and (y) any act
or thing whatsoever done by Tenant or any Tenant Invitee, or any condition created in or about the
Premises, during the Term of this Lease by Tenant or a Tenant Invitee, and (ii) all costs, expenses
and liabilities incurred in or in connection with each such claim or action or proceeding brought
thereon.  In case any action or proceeding be brought against the Landlord or Landlord’s
Indemnitees by reason of any such claim, the Tenant, upon notice from the Landlord or Landlord’s
Indemnitees, shall resist and defend such action or proceeding with counsel satisfactory to the
Landlord and such Landlord’s Indemnitees involved in such matter. The forgoing indemnity shall not
apply to any events caused by the gross negligence or willful misconduct of the Landlord.

     Article 30. ARTICLE HEADINGS. The Article headings in this Lease and position of its
provisions are intended for convenience only and shall not be taken into consideration in any
construction or interpretation of this Lease or any of its provisions.

     Article 31. APPLICABILITY TO HEIRS AND ASSIGNS. The provisions of this Lease shall apply to,
bind and inure to the benefit of the Landlord and the Tenant, and their respective heirs,
successors, legal representatives to except that no violation of the provisions of Article 10 shall
operate to vest any rights in any successor, assignee or legal representative of Tenant.

     Article 32. WAIVER OF TRIAL BY JURY. The parties hereby waive trial by jury in any action or
proceeding brought in connection with this Lease or the Premises.

     Article 33. LANDLORD’S LIABILITY FOR LOSS OF PROPERTY. The Landlord shall not be liable for
any loss of Tenant’s Property from any cause whatsoever, including but not limited to theft or
burglary from the Premises, and Tenant agrees to make no claim against the Landlord for any such
loss at any time, unless such loss is due to Landlord’s gross negligence or willful misconduct.

     Article 34. PARTIAL INVALIDITY. If any of the provisions of this Lease, or the application
thereof to any person or circumstance, shall to any extent be invalid or unenforceable, the
remainder of this Lease, or the application of such provision or provisions to persons or
circumstances other than those as to whom or which it is held invalid or unenforceable, shall not
be affected thereby, and every provision of this Lease shall be valid and enforceable to the
fullest extent allowed by law.

     Article 35. BROKER. The Landlord and the Tenant represent and warrant to each other that no
broker represented it in connection with this Lease. Each party agrees to indemnify and hold the
other harmless from the payment of any brokerage commission and from any claim advanced by the
other party or by any third party in breach of such representation hereunder, including any
expenses, costs of suit and attorneys’ fees incurred by the non-breaching party in

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connection therewith. Tenant acknowledges that this Lease is being entered into by Landlord
with Tenant as an accommodation to Tenant pursuant to Agreement of Sale between Tenant as Seller
and Landlord as Buyer dated November___, 2007. Accordingly, Tenant agrees to indemnify and hold
Seller harmless from the payment of any brokerage commission and from any claim advanced by GVA
Williams in connection with this Lease. This Article 35 shall survive the expiration or sooner
termination of the Term.

     Article 36. PERSONAL LIABILITY. All obligations of Landlord under this Lease will be deemed
binding upon Landlord only during the period of its ownership of the Premises and not thereafter.
The term “Landlord” in this Lease shall mean only the owner, for the time being of the Premises,
and in the event of the transfer by such owner of its interest in the Premises, such owner shall
thereupon be released and discharged from all obligations of Landlord thereafter accruing (but not
from defaults accruing during such Landlord’s ownership), but such obligations shall be binding
during the Lease Term upon each new owner for the duration of such owner’s ownership. Landlord
shall provide written notice to the Tenant of any such transfer within ten (10) days thereof.
Tenant acknowledges and agrees that neither Landlord, nor any shareholder, officer, director,
partner (general or limited), limited liability company member, tenant-in-common, venturer,
trustee, trust beneficiary, grantor, trustee-grantor, or other individual or entity having an
interest in Landlord shall have any personal liability for the performance of any of the terms,
covenants, or conditions to be performed by Landlord under this Lease; rather, Tenant agrees to
look solely to Landlord’s interest in the Premises and in no event shall any personal liability be
asserted against such current Landlord in connection with this Lease nor shall any recourse be had
to any other property or assets of such current Landlord.

     Article 37. FORCE MAJEURE. As used in this Lease, the term “Force Majeure” shall mean and
include those situations beyond the Landlord’s or Tenant’s control, including by way of example and
not by way of limitation, acts of God; accidents; strikes; shortages of labor, supplies or
materials; inclement weather; or, where applicable, the passage of time while waiting for an
adjustment of insurance proceeds governmental action, or lack thereof, or due to shortages of or
unavailability of materials and/or supplies, labor disputes, strikes, slow downs, job actions,
picketing, secondary boycotts, fire or other casualty, delays in transportation, acts of declared
or undeclared war, public disorder, riot or civil commotion, or due to any other cause beyond the
reasonable control of Landlord. Landlord shall in any or all such events be excused from its
obligation to perform and comply with such provisions of this Lease for a period of time
commensurate with any delay so caused, without any liability to the Tenant therefor whatsoever, and
all time periods provided for herein for performance of any such obligations shall be extended for
a period of time commensurate with any such delay, provided that nothing herein shall be deemed or
construed to limit the Tenant’s right to terminate this Lease as provided in Article 3 above.

     Article 38. NOTICES. Any notice by either party to the other must be in writing and shall be
deemed to have been duly given if delivered personally or sent by hand delivery, certified mail,
return receipt requested, postage prepaid, or by a national courier service that obtains a
signature on delivery, addressed, if to the Tenant, at the Premises; if to the Landlord, at the
Landlord’s Address as set forth above; or, to either, at such other address as the Tenant or the
Landlord may designate to the other in writing. Notice shall be deemed to have been duly given, if

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delivered personally or by courier, on delivery thereof, and if mailed, upon the second (2nd)
business day after the mailing thereof.

     Article 39. NO WAIVER. Waiver by the Landlord of any breach by the Tenant of any covenant or
condition herein contained, or failure by the Landlord to exercise any right or remedy in respect
of any such breach, shall not constitute a waiver or relinquishment for the future of such covenant
or condition or of any subsequent breach thereof, or bar any right or remedy of the Landlord in
respect of any subsequent breach, nor shall the receipt by the Landlord of any rents or any portion
thereof (regardless of any endorsement on any check or any statement in any letter accompanying any
payment or rent) operate as an accord or satisfaction; or as a waiver of the right of the Landlord
to enforce the payment of rents previously due or any other covenant of this Lease; or as a bar to
the termination of this Lease or the recovery of the Premises by any lawful means. No payment by
Tenant or receipt by Landlord of a lesser amount than the monthly Net Rent and Additional Rent
herein stipulated shall be deemed to be other than on account of the earliest Net Rent or
Additional Rent, nor shall any endorsement or statement on any check or any letter accompanying any
check or payment as rent be deemed an accord and satisfaction, and Landlord may accept such check
or payment without prejudice to Landlord’s right to recover the balance of such rent or pursue any
other remedy in this Lease or at law provided.

     Article 40. WRITING REQUIRED. No provision of this Lease may be changed or waived orally, but
only by an instrument in writing signed by the party to be charged therewith. This Lease may be
executed in counterparts and each such counterpart, when so executed by each party hereto, shall
constitute but one instrument and agreement and shall be enforceable against the party whose
signature is set thereon.

     Article 41. COMPLETE AGREEMENT. This Lease contains the entire agreement of the parties
hereto with respect to the leasing of the Premises by the Landlord to the Tenant and supersedes
completely all prior agreements and understandings, whether written or oral, and all
contemporaneous oral agreements and understandings with respect to the leasing of the Premises by
the Landlord to the Tenant.

     Article 42. SIGNS. The Tenant may place signs upon, in or about the Premises or any part
thereof. Signs shall at all times conform with all municipal ordinances or other laws and
regulations applicable thereto at Tenant’s expense, and Tenant shall obtain any required permits or
licenses for the installation of such signs at Tenant’s expense.

     Article 43. NO RECORDATION. Tenant shall not record this Lease or any short form Memorandum
thereof. Any such recordation by Tenant in violation of this prohibition shall be a default
hereunder and Landlord, among Landlord’s rights upon default, may execute and record in Tenant’s
name, place and stead, an instrument adequate and sufficient to discharge such document from the
public records, and for such purposes, Tenant hereby grants an irrevocable power of attorney to
Landlord.

     Article 44. VALIDITY. Tenant represents and warrants to Landlord that this Lease is valid,
enforceable and binding upon Tenant, that no consent(s) are necessary to render this Lease

25

 

valid, enforceable and binding and that the person whose signature is set forth below is
authorized to execute and deliver this Lease on behalf of Tenant.

     Article 45. MISCELLANEOUS.

          (a) Without incurring any liability to Tenant, Landlord may permit access to the Premises and
open the same, whether or not Tenant shall be present, upon demand of any receiver, trustee,
assignee for the benefit of creditors, sheriff, marshal or court officer entitled to, or reasonably
purporting to be entitled to, such access for the purpose of taking possession of, or removing,
Tenant’s property or for any other lawful purpose (but this provision and any action by Landlord
hereunder shall not be deemed a recognition by Landlord that the person or official making such
demand has any right or interest in or to this Lease, or in or to the Premises), or upon demand of
any representative of the fire, policy, building, sanitation or other department of the city, state
or federal governments.

          (b) The terms “person” and “persons” as used in this Lease, shall be deemed to include natural
persons, firms, corporations, associations and any other private or public entities.

          (c) No receipt of moneys by Landlord from Tenant, after any reentry or after the cancellation
or termination of this Lease in any lawful manner, shall reinstate the Lease; and after the service
of notice to terminate this Lease, or after the commencement of any action, proceeding or other
remedy, Landlord may demand, receive and collect any monies due, and apply them on account of
Tenant’s obligations under this Lease but without affecting such notice, action, proceeding or
remedy, except that if a money judgment is being sought in any such action or proceeding, the
amount of such judgment shall be reduced by such payment.

          (d) If Tenant is in arrears in the payment of Net Rent or Additional Rent, Tenant waives its
right, if any, to designate the items in arrears against which any payments made by Tenant are to
be credited and Landlord may apply any of such payments to any such items in arrears as Landlord,
in its sole discretion, shall determine, irrespective of any designation or request by Tenant as to
the items against which such payments shall be credited.

          (e) Tenant agrees to provide for use by Landlord and its mortgagee or prospective mortgagee or
purchaser, its annual report on Form 10-K as filed with the Securities and Exchange Commission.

          (f) Neither Tenant nor Landlord, nor any person who owns a controlling interest in or
otherwise controls Tenant or Landlord, is (i) listed on the Specially Designated Nationals and
Blocked Persons List or any other similar list maintained by the Office of Foreign Assets Control,
Department of the Treasury, pursuant to any authorizing statute, Executive Order or regulation,
(ii) a “specially designated global terrorist” or other person listed in Appendix A to Chapter V of
31 C.F.R., as the same has been from time to time updated and amended, or (iii) a person either (A)
included within the term “designated national” as defined in the Cuban Assets Control Regulations,
31 C.F.R. Part 515 or (B) designated under Sections 1(a), 1(b), 1(c) or 1(d) of Executive Order No.
13224, 66 Fed. Reg. 49079 (published September 25, 2001) or a person

26

 

similarly designated under any related enabling legislation or any other similar Executive
Orders.

[Signatures appear on the next page; balance of this page left intentionally blank]

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     IN WITNESS WHEREOF the parties have caused this Lease Agreement to be executed by their duly
authorized representatives as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	LANDLORD:	 	 
	 	 	 	 	BED BATH & BEYOND INC.	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	TENANT:	 	 
	WITNESS:	 	 	 	BREEZE-EASTERN CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 
	 	 	 	 

	 	 

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EXHIBIT A

LEGAL DESCRIPTION

BEING
further described in accordance with the Final Subdivision Plan for Autumn Ridge prepared by
Decker and Coriell, Inc., as follows:

Beginning at a point on the westerly line of Liberty Avenue (60’ wide) said point being one hundred
and thirteen hundredths (100.13’) feet measured southerly along said line from its intersection
with the southerly line of Hickory Road (50’ wide); thence

	1.	 	Along the westerly line of Liberty Avenue South forty seven degrees forty six minutes thirty
seconds West (S 47 46’ 30” W) a distance of four hundred twenty nine and sixty four hundredths
(429.64’) feet to a point on the dividing line of Lot 1 Block 3503 and Lot 1 Block 200; thence
	 
	2.	 	Along said line north forty seven degrees seven minutes West (N 47 07’ W) a distance of
eight hundred fifty eight and eighty three hundredths (858.83’) feet to a point; thence
	 
	3.	 	Through Lot 1 Block 3503 and forming a new line North forty two degrees fifty three minutes
East (N 42 53’ E) a distance of five hundred two and thirty five hundredths (502.35’) feet to
a point on the rear line of lots fronting on Hickory Road; thence
	 
	4.	 	Along said line south forty two degrees twenty two minutes thirty seconds East (S 42 22’ 30”
E) a distance of eight hundred ninety eight and fifty four hundredths
(898.54’___ feet to the
place of beginning.

Together with the benefits and burdens of Declaration of Easement, Covenants and Restriction set
forth in Deed Book 5255, page 199.

FOR INFORMATIONAL PURPOSES ONLY:

“In compliance with Chapter 157, Laws of 1977, premises herein is Lot 1.01 in Block 3503 on the Tax
Map of
the Township of Union, County of Union, State of New Jersey.”

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EXHIBIT B

TENANT’S INSURANCE COVERAGE

Provided by Tenant to Landlord.

30

 

EXHIBIT C

SERVICE CONTRACTS

31

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