Document:

exv10w6

Exhibit 10.6

LOAN AGREEMENT

     This Agreement dated as of December 8, 2010, is between Bank of America, N.A. (the “Bank”) and
American Locker Group Incorporated, a Delaware corporation (“American Locker”), American Locker
Security Systems, Inc., a Delaware corporation (“Security Systems”), Security Manufacturing
Corporation, a Delaware corporation (“Security Manufacturing”) and Canadian Locker Company Limited,
a corporation incorporated under the federal laws of Canada (“Canadian Locker”) (American Locker,
Security Systems, Security Manufacturing and Canadian Locker, are sometimes referred to
collectively as the “Borrowers” and individually as the “Borrower”).

1. DEFINITIONS

In addition to the terms which are defined elsewhere in this Agreement, the following terms have
the meanings indicated for the purposes of this Agreement:

1.1 “Borrowing Base” means the sum of:

	(a)	 	80% of the balance due on Acceptable Receivables; and

	(b)	 	the lesser of (i) 50% of the value of Acceptable Inventory, or (ii) $1,000,000.00.

In determining the value of Acceptable Inventory to be included in the Borrowing Base, the Bank
will use the lowest of (i) the Borrower’s cost, (ii) the Borrower’s estimated market value, or
(iii) the Bank’s independent determination of the resale value of such inventory in such quantities
and on such terms as the Bank deems appropriate.

After calculating the Borrowing Base as provided above, the Bank may deduct such reserves as the
Bank may establish from time to time in its reasonable credit judgment, including, without
limitation, reserves for rent at leased locations subject to statutory or contractual landlord’s
liens, inventory shrinkage, dilution, customs charges, warehousemen’s or bailees’ charges,
liabilities to growers of agricultural products which are entitled to lien rights under the federal
Perishable Agricultural Commodities Act or any applicable state law, or the federal laws of Canada
or any applicable laws of any province or territory of Canada, and the amount of estimated maximum
exposure, as determined by the Bank from time to time, under any interest rate contracts which the
Borrower enters into with the Bank (including interest rate swaps, caps, floors, options thereon,
combinations thereof, or similar contracts).

1.2 “Acceptable Receivable” means an account receivable which satisfies the following
requirements:

	(a)	 	The account has resulted from the sale of goods by the Borrower in the ordinary course of the
Borrower’s business and without any further obligation on the part of the Borrower to service,
repair, or maintain any such goods sold other than pursuant to any applicable warranty.

	(b)	 	There are no conditions which must be satisfied before the Borrower is entitled to receive
payment of the account. Accounts arising from COD sales, consignments or guaranteed sales are
not acceptable.

	(c)	 	The debtor upon the account does not claim any defense to payment of the account, whether
well founded or otherwise.

	(d)	 	The account balance does not include the amount of any counterclaims or offsets which have
been or may be asserted against the Borrower by the account debtor (including offsets for any
“contra accounts” owed by the Borrower to the account debtor for goods purchased by the
Borrower or for services performed for the Borrower). To the extent any counterclaims,
offsets, or contra accounts exist in favor of the debtor, such amounts shall be deducted from
the account balance.

 

 

	(e)	 	The account represents a genuine obligation of the debtor for goods sold to and accepted by
the debtor. To the extent any credit balances exist in favor of the debtor, such credit
balances shall be deducted from the account balance.

	(f)	 	The account balance does not include the amount of any finance or service charges payable by
the account debtor. To the extent any finance charges or service charges are included, such
amounts shall be deducted from the account balance.

	(g)	 	The Borrower has sent an invoice to the debtor in the amount of the account.

	(h)	 	The Borrower is not prohibited by the laws of the state where the account debtor is located,
or if the account debtor is located in Canada, under the federal laws of Canada or the
applicable province or territory of Canada, from bringing an action in the courts of that
jurisdiction to enforce the debtor’s obligation to pay the account. The Borrower has taken
all appropriate actions to ensure access to the courts of the jurisdiction where the account
debtor is located, including, where necessary, the filing of a Notice of Business Activities
Report or other similar filing with the applicable agency or the qualification by the Borrower
as a foreign corporation authorized to transact business in such jurisdiction.

	(i)	 	The account is owned by the Borrower free of any title defects or any liens or interests of
others except the security interest in favor of the Bank.

	(j)	 	The debtor upon the account is not any of the following:

	 	(i)	 	An employee, affiliate, parent or subsidiary of the Borrower, or an entity
which has common officers or directors with the Borrower.
	 
	 	(ii)	 	The U.S. government or any agency or department of the U.S. government unless
the Bank agrees in writing to accept the obligation, the Borrower complies with the
procedures in the Federal Assignment of Claims Act of 1940 (41 U.S.C. §15) with respect
to the obligation, and the underlying contract expressly provides that neither the U.S.
government nor any agency or department thereof shall have the right of set-off against
the Borrower.
	 
	 	(iii)	 	Any nation (other than the United States), state, province, territory, county,
city, town or municipality.
	 
	 	(iv)	 	Any person or entity located in a foreign country (other than Canada) unless
the account is covered by foreign credit insurance acceptable to the Bank in its sole
discretion and the account is otherwise an Acceptable Receivable; and then only the
amount insured is eligible for inclusion in the Borrowing Base as an Acceptable
Receivable.

	(k)	 	The account is not in default. An account will be considered in default if any of the
following occur:

	 	(i)	 	the account is not paid within 90 days from its invoice date;
	 
	 	(ii)	 	the debtor obligated upon the account suspends business, makes a general
assignment for the benefit of creditors, or fails to pay its debts generally as they
come due; or
	 
	 	(iii)	 	any petition is filed by or against the debtor obligated upon the account
under any bankruptcy law or any other law or laws for the relief of debtors.

	(l)	 	The account is not the obligation of a debtor who is in default (as defined above) on 20% or
more of the accounts upon which such debtor is obligated.

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	(m)	 	The account does not arise from the sale of goods which remain in the Borrower’s possession
or under the Borrower’s control.

	(n)	 	The account is not evidenced by a promissory note or chattel paper, nor is the account debtor
obligated to the Borrower under any other obligation which is evidenced by a promissory note.

	(o)	 	The account is otherwise acceptable to the Bank.

In addition to the foregoing limitations, the dollar amount of accounts included as Acceptable
Receivables which are the obligations of a single debtor shall not exceed the concentration limit
established for that debtor. To the extent the total of such accounts exceeds a debtor’s
concentration limit, the amount of any such excess shall be excluded. The concentration limit for
each debtor shall be equal to 20% of the total amount of the Borrower’s total accounts receivable
at that time

1.3 “Acceptable Inventory” means inventory which satisfies the following requirements:

	(a)	 	The inventory is owned by the Borrower free of any title defects or any liens or interests of
others except the security interest in favor of the Bank. This does not prohibit any
statutory liens which may exist in favor of the growers of agricultural products which are
purchased by the Borrower.

	(b)	 	The inventory is located at locations which the Borrower has disclosed to the Bank and which
are acceptable to the Bank. If the inventory is covered by a negotiable document of title
(such as a warehouse receipt) that document must be delivered to the Bank. Inventory which is
in transit is not acceptable.

	(c)	 	The inventory is held for sale or use in the ordinary course of the Borrower’s business and
is of good and merchantable quality. Display items, work-in-process, parts, samples, and
packing and shipping materials are not acceptable. Inventory which is obsolete, unsalable,
damaged, defective, used, discontinued or slow-moving, or which has been returned by the
buyer, is not acceptable.

	(d)	 	The inventory is covered by insurance as required in the “Covenants” section of this
Agreement.

	(e)	 	The inventory has not been manufactured to the specifications of a particular account debtor.

	(f)	 	The inventory is not subject to any licensing agreements which would prohibit or restrict in
any way the ability of the Bank to sell the inventory to third parties.

	(g)	 	The inventory has been produced in compliance with the requirements of the U.S. Fair Labor
Standards Act (29 U.S.C. §§201 et seq.).

	(h)	 	The inventory is not placed on consignment.

	(i)	 	The inventory is otherwise acceptable to the Bank.

	1.4	 	“Credit Limit” means the amount of Two Million Five Hundred Thousand and No/100
($2,500,000.00).

2. FACILITY NO. 1: LINE OF CREDIT AMOUNT AND TERMS

2.1 Line of Credit Amount.

	(a)	 	During the availability period described below, the Bank will provide a line of credit to the
Borrower. The amount of the line of credit (the “Facility No. 1 Commitment”) is equal to the
lesser of (i) the Credit Limit or (ii) the Borrowing Base.

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	(b)	 	This is a revolving line of credit. During the availability period, the Borrower may repay
principal amounts and reborrow them.

	(c)	 	The Borrower agrees not to permit the principal balance outstanding to exceed the Facility
No. 1 Commitment. If the Borrower exceeds this limit, the Borrower will immediately pay the
excess to the Bank upon the Bank’s demand.

2.2 Availability Period. The line of credit is available between the date of this
Agreement and December 8, 2011, or such earlier date as the availability may terminate as provided
in this Agreement (the “Facility No. 1 Expiration Date”).

2.3 Conditions to Availability of Credit. In addition to the items required to be
delivered to the Bank under the paragraph entitled “Financial Information” in the “Covenants”
section of this Agreement, the Borrower will promptly deliver the following to the Bank at such
times as may be requested by the Bank:

	(a)	 	A borrowing certificate, in form and detail satisfactory to the Bank, setting forth the
Acceptable Receivables and the Acceptable Inventory on which the requested extension of credit
is to be based.

	(b)	 	Copies of the invoices or the record of invoices from the Borrower’s sales journal for such
Acceptable Receivables and a listing of the names and addresses of the debtors obligated
thereunder.

	(c)	 	Copies of the delivery receipts, purchase orders, shipping instructions, bills of lading and
other documentation pertaining to such Acceptable Receivables.

	(d)	 	Copies of the cash receipts journal pertaining to the borrowing certificate.

2.4 Repayment Terms.

	(a)	 	The Borrower will pay interest on January 8, 2011, and then on the same day of each month
thereafter until payment in full of any principal outstanding under this facility.

	(b)	 	The Borrower will repay in full any principal, interest or other charges outstanding under
this facility no later than the Facility No. 1 Expiration Date.

	(c)	 	The Borrower may prepay the loan in full or in part at any time. The prepayment will be
applied to the most remote payment of principal due under this Agreement.

2.5 Interest Rate.

	(a)	 	The interest rate is a rate per year equal to the lesser of (i) the maximum lawful rate of
interest permitted under applicable usury laws, now or hereafter enacted ( the “Maximum
Rate”), or (ii) the BBA LIBOR Rate (Adjusted Periodically) plus 3.75 percentage point(s).

	(b)	 	The interest rate will be adjusted on the 8th day of every month (the “Adjustment Date”) and
remain fixed until the next Adjustment Date. If the Adjustment Date in any particular month
would otherwise fall on a day that is not a banking day then, at the Bank’s option, the
Adjustment Date for that particular month will be the first banking day immediately following
thereafter.

	(c)	 	The BBA LIBOR Rate (Adjusted Periodically) is a rate of interest equal to the rate per annum
equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or
other commercially available source providing quotations of BBA LIBOR as selected by the Bank
from time to time) as determined for each Adjustment Date at approximately 11:00 a.m. London
time two (2) London Banking Days prior to the Adjustment Date, for U.S. Dollar deposits (for

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	 	 	delivery on the first day of such interest period) with a term of one month, as adjusted
from time to time in the Bank’s sole discretion for reserve requirements, deposit insurance
assessment rates and other regulatory costs. If such rate is not available at such time for
any reason, then the rate for that interest period will be determined by such alternate
method as reasonably selected by the Bank. A “London Banking Day” is a day on which banks
in London are open for business and dealing in offshore dollars.

	3.	 	FACILITY NO. 2: VARIABLE RATE TERM LOAN AMOUNT AND TERMS

3.1 Loan Amount. The Bank agrees to provide a term loan to the Borrower in the amount of
One Million and No/100 Dollars ($1,000,000.00) (the “Facility No. 2 Commitment”).

3.2 Availability Period. The loan is available in one disbursement from the Bank between
the date of this Agreement and December 15, 2010 unless the Borrower is in default.

3.3 Repayment Terms.

	(a)	 	The Borrower will pay interest on January 8, 2011, and then on the same day of each month
thereafter until payment in full of any principal outstanding under this facility.

	(b)	 	The Borrower will repay principal in equal installments of Sixteen Thousand Six Hundred Sixty
Six and 67/100 Dollars ($16,666.67) beginning on January 8, 2011, and on the same day of each
month thereafter, and ending on December 8, 2015 (the “Repayment Period”). In any event, on
the last day of the Repayment Period, the Borrower will repay the remaining principal balance
plus any interest then due.

	(c)	 	The Borrower may prepay the loan in full or in part at any time. The prepayment will be
applied to the most remote payment of principal due under this Agreement.

	3.4	 	Interest Rate.

	(a)	 	The interest rate is a rate per year equal to the lesser of (i) the maximum lawful rate of
interest permitted under applicable usury laws, now or hereafter enacted ( the “Maximum
Rate”), or (ii) the BBA LIBOR Rate (Adjusted Periodically) plus 3.75 percentage point(s).

	(b)	 	The interest rate will be adjusted on the 8th day of every month (the “Adjustment Date”) and
remain fixed until the next Adjustment Date. If the Adjustment Date in any particular month
would otherwise fall on a day that is not a banking day then, at the Bank’s option, the
Adjustment Date for that particular month will be the first banking day immediately following
thereafter.

	(c)	 	The BBA LIBOR Rate (Adjusted Periodically) is a rate of interest equal to the rate per annum
equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or
other commercially available source providing quotations of BBA LIBOR as selected by the Bank
from time to time) as determined for each Adjustment Date at approximately 11:00 a.m. London
time two (2) London Banking Days prior to the Adjustment Date, for U.S. Dollar deposits (for
delivery on the first day of such interest period) with a term of one month, as adjusted from
time to time in the Bank’s sole discretion for reserve requirements, deposit insurance
assessment rates and other regulatory costs. If such rate is not available at such time for
any reason, then the rate for that interest period will be determined by such alternate method
as reasonably selected by the Bank. A “London Banking Day” is a day on which banks in London
are open for business and dealing in offshore dollars.

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	4.	 	FEES AND EXPENSES

	4.1	 	Fees.

	(a)	 	Loan Fee. For Facility No. 1, the Borrower agrees to pay a loan fee in the amount of
Twelve Thousand Five Hundred and No/100 Dollars ($12,500.00). For Facility No. 2, the
Borrower agrees to pay a loan fee in the amount of Ten Thousand and No/100 Dollars
($10,000.00). These fees are due on the date of this Agreement.

	(b)	 	Waiver Fee. If the Bank, at its discretion, agrees to waive or amend any terms of
this Agreement, the Borrower will, at the Bank’s option, pay the Bank a fee for each waiver or
amendment in an amount advised by the Bank at the time the Borrower requests the waiver or
amendment. Nothing in this paragraph shall imply that the Bank is obligated to agree to any
waiver or amendment requested by the Borrower. The Bank may impose additional requirements as
a condition to any waiver or amendment.

	(c)	 	Late Fee. To the extent permitted by law, the Borrower agrees to pay a late fee in
an amount not to exceed four percent (4%) of any payment that is more than fifteen (15) days
late. The imposition and payment of a late fee shall not constitute a waiver of the Bank’s
rights with respect to the default.

4.2 Expenses. The Borrower agrees to immediately repay the Bank for expenses that include,
but are not limited to, filing, recording and search fees, appraisal fees, title report fees, and
documentation fees.

4.3 Reimbursement Costs.

	(a)	 	The Borrower agrees to reimburse the Bank for any expenses it incurs in the preparation of
this Agreement and any agreement or instrument required by this Agreement. Expenses include,
but are not limited to, reasonable attorneys’ fees, including any allocated costs of the
Bank’s in-house counsel to the extent permitted by applicable law.

	(b)	 	The Borrower agrees to reimburse the Bank for the cost of periodic field examinations of the
Borrower’s books, records and collateral, and appraisals of the collateral, at such intervals
as the Bank may reasonably require. The actions described in this paragraph may be performed
by employees of the Bank or by independent appraisers.

4.4 No Excess Fees.

Notwithstanding anything to the contrary in this Section 4, in no event shall any sum payable under
this Section 4 (to the extent, if any, constituting interest under applicable laws), together with
all other amounts constituting interest under applicable laws and payable in connection with the
credit evidenced hereby, exceed the amount of interest computed at the Maximum Rate.

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	5.	 	COLLATERAL

5.1 Personal Property. The personal property listed below now owned or owned in the future
by the parties listed below, will secure the Borrowers’ obligations to the Bank under this
Agreement. The collateral is further defined in security agreement(s) executed by the owners of
the collateral. In addition, all personal property collateral owned by the Borrowers securing this
Agreement shall also secure all other present and future obligations of the Borrowers to the Bank
(excluding any consumer credit covered by the federal Truth in Lending law, unless the Borrowers
have otherwise agreed in writing or received written notice thereof). All personal property
collateral securing any other present or future obligations of the Borrowers to the Bank shall also
secure this Agreement.

	(a)	 	Equipment and fixtures owned by each Borrower.
	 
	(b)	 	Inventory owned by each Borrower.
	 
	(c)	 	Receivables owned by each Borrower.
	 
	(d)	 	All instruments, notes, chattel paper, documents, certificates of deposit, securities and
investment property of every type owned by each Borrower.

	 	 	Regulation U of the Board of Governors of the Federal Reserve System places certain
restrictions on loans secured by margin stock (as defined in the Regulation). The Bank and
the Borrower shall comply with Regulation U. If any of the collateral is margin stock, the
Borrower shall provide to the Bank a Form U-1 Purpose Statement.

	(e)	 	Deposit accounts with the Bank owned by each Borrower.
	 
	(f)	 	Patents, trademarks and other general intangibles owned by each Borrower.

	(g)	 	All such other personal property owned by a Borrower in which any such Borrower shall have
granted the Bank a security interest, including, but not limited to, accounts, contract
rights, chattel paper, deposit accounts, letter of credit rights, and payment intangibles
owned by the Borrower.

	6.	 	  DISBURSEMENTS, PAYMENTS AND COSTS

	6.1	 	Disbursements and Payments.

	(a)	 	Each payment by the Borrower will be made in U.S. Dollars and immediately available funds by
debit to a deposit account, as described in this Agreement or otherwise authorized by the
Borrower. For payments not made by direct debit, payments will be made by mail to the address
shown on the Borrower’s statement or at one of the Bank’s banking centers in the United
States, or by such other method as may be permitted by the Bank.

	(b)	 	The Bank may honor instructions for advances or repayments given by the Borrower (if an
individual), or by any one of the individuals authorized to sign loan agreements on behalf of
the Borrower, or any other individual designated by any one of such authorized signers (each
an “Authorized Individual”).

	(c)	 	For any payment under this Agreement made by debit to a deposit account, the Borrower will
maintain sufficient immediately available funds in the deposit account to cover each debit.
If there are insufficient immediately available funds in the deposit account on the date the
Bank enters any such debit authorized by this Agreement, the Bank may reverse the debit.

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	(d)	 	Each disbursement by the Bank and each payment by the Borrower will be evidenced by records
kept by the Bank. In addition, the Bank may, at its discretion, require the Borrower to sign
one or more promissory notes.

	(e)	 	Prior to the date each payment of principal and interest and any fees from the Borrower
becomes due (the “Due Date”), the Bank will mail to the Borrower a statement of the amounts
that will be due on that Due Date (the “Billed Amount”). The calculations in the bill will be
made on the assumption that no new extensions of credit or payments will be made between the
date of the billing statement and the Due Date, and that there will be no changes in the
applicable interest rate. If the Billed Amount differs from the actual amount due on the Due
Date (the “Accrued Amount”), the discrepancy will be treated as follows:

	 	(i)	 	If the Billed Amount is less than the Accrued Amount, the Billed Amount for the
following Due Date will be increased by the amount of the discrepancy. The Borrower
will not be in default by reason of any such discrepancy.
	 
	 	(ii)	 	If the Billed Amount is more than the Accrued Amount, the Billed Amount for the
following Due Date will be decreased by the amount of the discrepancy.

	 	 	Regardless of any such discrepancy, interest will continue to accrue based on the actual
amount of principal outstanding without compounding. The Bank will not pay the Borrower
interest on any overpayment.

	6.2	 	Requests for Credit; Equal Access by all Borrowers. If there is more than one
Borrower, any Borrower (or a person or persons authorized by any one of the Borrowers), acting
alone, can borrow up to the full amount of credit provided under this Agreement. Each Borrower
will be liable for all extensions of credit made under this Agreement to any other Borrower.

	6.3	 	Telephone and Telefax Authorization.

	(a)	 	The Bank may honor telephone or telefax instructions for advances or repayments given, or
purported to be given, by any one of the Authorized Individuals.

	(b)	 	Advances will be deposited in and repayments will be withdrawn from account number
________owned by Security Systems, or such other accounts with the Bank as designated in
writing by the Borrowers.

	(c)	 	The Borrowers will indemnify and hold the Bank harmless from all liability, loss, and costs
in connection with any act resulting from telephone or telefax instructions the Bank
reasonably believes are made by any Authorized Individual. This paragraph will survive this
Agreement’s termination, and will benefit the Bank and its officers, employees, and agents.

	6.4	 	Direct Debit.

	(a)	 	The Borrowers agree that on the Due Date the Bank will debit the Billed Amount from deposit
account number ________ owned by Security Systems, or such other of the Borrowers’
accounts with the Bank as designated in writing by the Borrowers (the “Designated Account”).

	(b)	 	The Borrowers may terminate this direct debit arrangement at any time by sending written
notice to the Bank at the address specified at the end of this Agreement. If the Borrowers
terminate this arrangement, then the principal amount outstanding under this Agreement will at
the option of the Bank bear interest at a rate per annum which is the lesser of (i) the
Maximum Rate or (ii) 0.5 percentage point(s) higher than the rate of interest otherwise
provided under this Agreement.

6.5 Banking Days. Unless otherwise provided in this Agreement, a banking day is a day
other than a Saturday, Sunday or other day on which commercial banks are authorized to close, or
are in fact closed,

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in the state where the Bank’s lending office is located, and, if such day relates to amounts
bearing interest at an offshore rate (if any), means any such day on which dealings in dollar
deposits are conducted among banks in the offshore dollar interbank market. All payments and
disbursements which would be due on a day which is not a banking day will be due on the next
banking day. All payments received on a day which is not a banking day will be applied to the
credit on the next banking day.

6.6 Interest Calculation. Except as otherwise stated in this Agreement, all interest and
fees, if any, will be computed on the basis of a 360-day year and the actual number of days
elapsed. This results in more interest or a higher fee than if a 365-day year is used.
Installments of principal which are not paid when due under this Agreement shall continue to bear
interest until paid. For the purpose of the Interest Act (Canada) and disclosure thereunder to the
extent that it is applicable, whenever interest to be paid hereunder is to be calculated on the
basis of a 360-day year or any other period of time that is less than a calendar year, the yearly
rate of interest to which the rate determined pursuant to such calculation is equivalent is the
rate so determined multiplied by the actual number of days in the calendar year in which the same
is to be ascertained and divided by either 360 days or such other period of time, as the case may
be.

6.7 Default Rate. Upon the occurrence of any default or after maturity or after judgment
has been rendered on any obligation under this Agreement, all amounts outstanding under this
Agreement, including any interest, fees, or costs which are not paid when due, will at the option
of the Bank bear interest at a rate which is the lesser of (i) the Maximum Rate or (ii) 6.0
percentage point(s) higher than the rate of interest otherwise provided under this Agreement. This
may result in compounding of interest. This will not constitute a waiver of any default.

6.8 Taxes. All payments by the Borrower to the Bank hereunder shall be made to the Bank in
full without set-off or counterclaim and free and clear of and exempt from and without deduction or
withholding for or on account of, any present or future taxes, levies, imposts, duties, or charges
of whatsoever nature imposed by any government or any political subdivision or taxing authority
thereof. The Borrower shall reimburse the Bank for any taxes imposed on or withheld from such
payments (other than taxes imposed on the Bank’s income, and franchise taxes imposed on the Bank,
by the jurisdiction under the laws of which the Bank is organized or any political subdivision
thereof).

6.9 Overdrafts. At the Bank’s sole option in each instance, the Bank may do one of the
following:

	(a)	 	The Bank may make advances under this Agreement to prevent or cover an overdraft on any
account of a Borrower with the Bank. Each such advance will accrue interest from the date of
the advance or the date on which the account is overdrawn, whichever occurs first, at the
interest rate described in this Agreement. The Bank may make such advances even if the
advances may cause any credit limit under this Agreement to be exceeded.

	(b)	 	The Bank may reduce the amount of credit otherwise available under this Agreement by the
amount of any overdraft on any account of the Borrower with the Bank.

This paragraph shall not be deemed to authorize the Borrower to create overdrafts on any of the
Borrower’s accounts with the Bank.

6.10 Payments in Kind. If the Bank requires delivery in kind of the proceeds of collection
of the Borrower’s accounts receivable, such proceeds shall be credited to interest, principal, and
other sums owed to the Bank under this Agreement in the order and proportion determined by the Bank
in its sole discretion. All such credits will be conditioned upon collection and any returned
items may, at the Bank’s option, be charged to the Borrower.

6.11 Judgment Currency. In the event of a judgment or order being rendered by any court or
tribunal for the payment of any amounts owing to the Bank under this Agreement or for the payment
of damages in respect of any breach of this Agreement or under or in respect of a judgment or order
of another court

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or tribunal for the payment of such amounts or damages, such judgment or order being expressed in a
currency (the ‘Judgment Currency”) other than the currency payable hereunder or thereunder (the
“Agreed Currency”), the party against whom the judgment or order is made shall indemnify and hold
the Bank harmless against any deficiency in terms of the Agreed Currency in the amounts received by
the Bank arising or resulting from any variation as between (a) the exchange rate at which the
Agreed Currency is converted into the Judgment Currency for the purposes of such judgment or order,
and (b) the exchange rate at which the Bank is able to purchase the Agreed Currency with the amount
of the Judgment Currency actually received by the Bank on the date of such receipt. The indemnity
in this Section shall constitute a separate and independent obligation from the other obligations
of the Borrower.

7. CONDITIONS

Before the Bank is required to extend any credit to the Borrower under this Agreement, it must
receive any documents and other items it may reasonably require, in form and content acceptable to
the Bank, including any items specifically listed below.

7.1 Authorizations. If the Borrower or any guarantor is anything other than a natural
person, evidence that the execution, delivery and performance by the Borrower and/or such guarantor
of this Agreement and any instrument or agreement required under this Agreement have been duly
authorized.

7.2 Governing Documents. If required by the Bank, a copy of the Borrower’s organizational
documents.

7.3 Security Agreements. Signed original security agreements covering the personal
property collateral which the Bank requires.

7.4 Perfection and Evidence of Priority. Evidence that the security interests and liens in
favor of the Bank are valid, enforceable, properly perfected in a manner acceptable to the Bank and
prior to all others’ rights and interests, except those the Bank consents to in writing. All title
documents for motor vehicles which are part of the collateral must show the Bank’s interest.

7.5 Payment of Fees. Payment of all fees and other amounts due and owing to the Bank,
including without limitation payment of all accrued and unpaid expenses incurred by the Bank as
required by the paragraph entitled “Reimbursement Costs.”

7.6 Repayment of Other Credit Agreement. Evidence that the existing financing agreements
with Crossroads Debt, LLC and with Gulf Coast Bank and Trust Company have been or will be repaid
and cancelled on or before the first disbursement under this Agreement.

7.7 Good Standing. Certificates of good standing for the Borrower from its state of
formation or jurisdiction of incorporation, and from any other state, province, territory, or other
jurisdiction in which the Borrower is required to qualify to conduct its business.

7.8 Landlord Agreement. For any personal property collateral located on real property
which is subject to a mortgage or deed of trust or which is not owned by the Borrower (or the
grantor of the security interest), an agreement from the owner of the real property and the holder
of any such mortgage or deed of trust.

7.9 Insurance. Evidence of insurance coverage, as required in the “Covenants” section of
this Agreement.

7.10 Appraisals. Appraisals prepared by appraisers acceptable to the Bank with respect to
the liquidation value of the Borrower’s inventory and equipment.

10

 

7.11 Environmental Information. A completed Bank form Environmental Questionnaire.

8. REPRESENTATIONS AND WARRANTIES

When the Borrower signs this Agreement, and until the Bank is repaid in full, the Borrower makes
the following representations and warranties. Each request for an extension of credit constitutes
a renewal of these representations and warranties as of the date of the request:

8.1 Formation. If the Borrower is anything other than a natural person, it is duly formed
and existing under the laws of the state, province, territory, or other jurisdiction where
organized.

8.2 Authorization. This Agreement, and any instrument or agreement required hereunder, are
within the Borrower’s powers, have been duly authorized, and do not conflict with any of its
organizational papers.

8.3 Enforceable Agreement. This Agreement is a legal, valid and binding agreement of the
Borrower, enforceable against the Borrower in accordance with its terms, and any instrument or
agreement required hereunder, when executed and delivered, will be similarly legal, valid, binding
and enforceable.

8.4 Good Standing. In each state, province, territory, or other jurisdiction in which the
Borrower does business, it is properly licensed, in good standing, and, where required, in
compliance with fictitious name statutes.

8.5 No Conflicts. This Agreement does not conflict with any law, agreement, or obligation
by which the Borrower is bound.

8.6 Financial Information. All financial and other information that has been or will be
supplied to the Bank is sufficiently complete to give the Bank accurate knowledge of the Borrower’s
(and any guarantor’s) financial condition, including all material contingent liabilities. Since
the date of the most recent financial statement provided to the Bank, there has been no material
adverse change in the business condition (financial or otherwise), operations, properties or
prospects of the Borrower (or any guarantor). If the Borrower is comprised of the trustees of a
trust, the foregoing representations shall also pertain to the trustor(s) of the trust.

8.7 Lawsuits. There is no lawsuit, tax claim or other dispute pending or threatened
against the Borrower which, if lost, would impair the Borrower’s financial condition or ability to
repay the loan, except as have been disclosed in writing to the Bank.

8.8 Collateral. All collateral required in this Agreement is owned by the grantor of the
security interest free of any title defects or any liens or interests of others, except those which
have been approved by the Bank in writing.

8.9 Permits, Franchises. The Borrower possesses all permits, memberships, franchises,
contracts and licenses required and all trademark rights, trade name rights, patent rights,
copyrights, and fictitious name rights necessary to enable it to conduct the business in which it
is now engaged.

8.10 Other Obligations. The Borrower is not in default on any obligation for borrowed
money, any purchase money obligation or any other material lease, commitment, contract, instrument
or obligation, except as have been disclosed in writing to the Bank.

8.11 Tax Matters. The Borrower has no knowledge of any pending assessments or adjustments
of its income tax for any year and all taxes due have been paid, except as have been disclosed in
writing to the Bank.

8.12 No Event of Default. There is no event which is, or with notice or lapse of time or
both would be,

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a default under this Agreement.

8.13 Insurance. The Borrower has obtained, and maintained in effect, the insurance
coverage required in the “Covenants” section of this Agreement.

8.14 Merchantable Inventory; Compliance with FLSA. All inventory which is included in the
Borrowing Base is of good and merchantable quality and free from defects, and has been produced in
compliance with the requirements of the U.S. Fair Labor Standards Act (29 U.S.C. §§201 et seq.)
(“FLSA”). If any inventory has been manufactured by third party contractors, the Borrower has
monitored the contractor’s operations for compliance with the FLSA, and, based upon that
monitoring, the Borrower has assured itself that the inventory has been produced in compliance with
the FLSA.

9. COVENANTS

The Borrower agrees, so long as credit is available under this Agreement and until the Bank is
repaid in full:

9.1 Use of Proceeds.

	(a)	 	To use the proceeds of Facility No. 1 only for working capital.

	(b)	 	The proceeds of the credit extended under this Loan Agreement may not be used directly or
indirectly to purchase or carry any “margin stock” as that term is defined in Regulation U of
the Board of Governors of the Federal Reserve System, or extend credit to or invest in other
parties for the purpose of purchasing or carrying any such “margin stock,” or to reduce or
retire any indebtedness incurred for such purpose.

9.2 Financial Information. To provide the following financial information and statements
in form and content acceptable to the Bank, and such additional information as requested by the
Bank from time to time. The Bank reserves the right, upon written notice to the Borrower, to
require the Borrower to deliver financial information and statements to the Bank more frequently
than otherwise provided below, and to use such additional information and statements to measure any
applicable financial covenants in this Agreement.

	(a)	 	Within 120 days of the fiscal year end, the annual financial statements of American Locker.
These financial statements must be audited (with an opinion satisfactory to the Bank) by a
Certified Public Accountant acceptable to the Bank. The statements shall be prepared on a
consolidated basis.

	(b)	 	Within 45 days of the period’s end (including the last period in each fiscal year), quarterly
financial statements of American Locker, certified and dated by an authorized financial
officer. These financial statements may be company-prepared. The statements shall be prepared
on a consolidated basis.

	(c)	 	Promptly, upon sending or receipt, copies of any management letters and correspondence
relating to management letters, sent or received by the Borrower to or from the Borrower’s
auditor. If no management letter is prepared, the Bank may, in its discretion, request a
letter from such auditor stating that no deficiencies were noted that would otherwise be
addressed in a management letter.

	(d)	 	Copies of the Form 10-K Annual Report, Form 10-Q Quarterly Report and Form 8-K Current Report
for American Locker within 45 days after the date of filing with the Securities and Exchange
Commission.

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	(e)	 	Within 45 days of the end of each fiscal year and within 45 days of the end of each quarter,
a compliance certificate of the Borrower, signed by an authorized financial officer and
setting forth (i) the information and computations (in sufficient detail) to establish
compliance with all financial covenants at the end of the period covered by the financial
statements then being furnished and (ii) whether there existed as of the date of such
financial statements and whether there exists as of the date of the certificate, any default
under this Agreement applicable to the party submitting the information and, if any such
default exists, specifying the nature thereof and the action the party is taking and proposes
to take with respect thereto.

	(f)	 	A detailed aging of the Borrower’s receivables by invoice or a summary aging by account
debtor, as specified by the Bank, within fifteen (15) days after the end of each month.

	(g)	 	Promptly upon the Bank’s request, such other books, records, statements, lists of property
and accounts, budgets, forecasts or reports as to the Borrower and as to each guarantor of the
Borrower’s obligations to the Bank as the Bank may request.

	(h)	 	A borrowing certificate setting forth the amount of Acceptable Receivables and Acceptable
Inventory as of the last day of each month within fifteen (15) days after month end and, upon
the Bank’s request, copies of the invoices or the record of invoices from the Borrower’s sales
journal for such Acceptable Receivables, copies of the delivery receipts, purchase orders,
shipping instructions, bills of lading and other documentation pertaining to such Acceptable
Receivables, and copies of the cash receipts journal pertaining to the borrowing certificate.

	(i)	 	A summary aging by vendor of accounts payable within fifteen (15) days after the end of each
month.

	(j)	 	If the Bank requires the Borrower to deliver the proceeds of accounts receivable to the Bank
upon collection by the Borrower, a schedule of the amounts so collected and delivered to the
Bank.

	(k)	 	An inventory listing within fifteen (15) days after the end of each month. The listing must
include a description of the inventory, its location and cost, and such other information as
the Bank may require.

	(l)	 	Promptly upon the Bank’s request, such other books, records, statements, lists of property
and accounts, budgets, forecasts or reports as to the Borrower and as to each guarantor of the
Borrower’s obligations to the Bank as the Bank may request.

9.3 Funded Debt to EBITDA Ratio. With respect to American Locker, to maintain on a
consolidated basis a ratio of Funded Debt to EBITDA not exceeding the ratios indicated for each
period specified below:

	 	 	 	 	 
	Period	 	Ratios
	From the date of this Agreement
through 3/31/2011
	 	 	4:1.0	 
	From 6/30/2011 and thereafter
	 	 	3.5:1.0	 

“Funded Debt” means all outstanding liabilities for borrowed money and other interest-bearing
liabilities, including current and long term debt, less the non-current portion of Subordinated
Liabilities.

“EBITDA” means net income, less income or plus loss from discontinued operations and extraordinary
items, plus income taxes, plus interest expense, plus depreciation, depletion, and amortization,
plus non-recurring and unreimbursed moving expenses up to a maximum of $300,000.00, and non-cash
stock compensation expense. This ratio will be calculated at the end of each reporting period for
which the

13

 

Bank requires financial statements, using the results of the twelve-month period ending with that
reporting period.

“Subordinated Liabilities” means liabilities subordinated to the Borrower’s obligations to the Bank
in a manner acceptable to the Bank in its sole discretion.

9.4 Basic Fixed Charge Coverage Ratio. With respect to American Locker, to maintain on a
consolidated basis a Basic Fixed Charge Coverage Ratio of at least 1.25:1.0.

“Basic Fixed Charge Coverage Ratio” means the ratio of (a) the sum of EBITDA plus lease expense and
cash paid for rent, minus cash paid for income tax, minus dividends, withdrawals, and other
distributions, to (b) the sum of interest expense, lease expense, cash paid for rent, the current
portion of long term debt and the current portion of capitalized lease obligations.

“EBITDA” means net income, less income or plus loss from discontinued operations and extraordinary
items, plus income taxes, plus interest expense, plus depreciation, depletion, and amortization,
plus non-recurring and unreimbursed moving expenses up to a maximum of $300,000.00, and non-cash
stock compensation expense.

This ratio will be calculated at the end of each reporting period for which the Bank requires
financial statements, using the results of the twelve-month period ending with that reporting
period. The current portion of long-term liabilities will be measured as of the date twelve (12)
months prior to the current financial statement.

9.5 Bank as Principal Depository. To maintain the Bank or one of its affiliates as its
principal depository bank, including for the maintenance of business, cash management, operating
and administrative deposit accounts.

9.6 Other Debts. Not to have outstanding or incur any direct or contingent liabilities or
lease obligations (other than those to the Bank), or become liable for the liabilities of others,
without the Bank’s written consent. This does not prohibit:

	(a)	 	Acquiring goods, supplies, or merchandise on normal trade credit.

	(b)	 	Endorsing negotiable instruments received in the usual course of business.

	(c)	 	Obtaining surety bonds in the usual course of business.

	(d)	 	Liabilities, lines of credit and leases in existence on the date of this Agreement disclosed
in writing to the Bank.

	(e)	 	Additional debts and lease obligations for business purposes which do not exceed a total
principal amount of One Hundred Thousand and No/100 Dollars ($100,000.00) outstanding at any
one time.

9.7 Other Liens. Not to create, assume, or allow any security interest or lien (including
judicial liens) on property the Borrower now or later owns, except:

	(a)	 	Liens and security interests in favor of the Bank.

	(b)	 	Liens for taxes not yet due.

	(c)	 	Liens outstanding on the date of this Agreement disclosed in writing to the Bank.

(d) Additional purchase money security interests in assets acquired after the date of this
Agreement.

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9.8 Maintenance of Assets.

	(a)	 	Not to sell, assign, lease, transfer or otherwise dispose of any part of the Borrower’s
business or the Borrower’s assets except in the ordinary course of the Borrower’s business.

	(b)	 	Not to sell, assign, lease, transfer or otherwise dispose of any assets for less than fair
market value, or enter into any agreement to do so.

	(c)	 	Not to enter into any sale and leaseback agreement covering any of its fixed assets.

	(d)	 	To maintain and preserve all rights, privileges, and franchises the Borrower now has.

	(e)	 	To make any repairs, renewals, or replacements to keep the Borrower’s properties in good
working condition.

9.9 Investments. Not to have any existing, or make any new, investments in any individual
or entity, or make any capital contributions or other transfers of assets to any individual or
entity, except for:

	(a)	 	Existing investments disclosed to the Bank in writing.

	(b)	 	Investments in the Borrower’s current subsidiaries.

	(c)	 	Investments in any of the following:

	 	(i)	 	certificates of deposit;
	 
	 	(ii)	 	U.S. treasury bills and other obligations of the federal government;
	 
	 	(iii)	 	readily marketable securities (including commercial paper, but excluding
restricted stock and stock subject to the provisions of Rule 144 of the Securities and
Exchange Commission).

9.10 Loans. Not to make any loans, advances or other extensions of credit to any
individual or entity, except for:

	(a)	 	Existing extensions of credit disclosed to the Bank in writing.

	(b)	 	Extensions of credit to the Borrower’s current subsidiaries.

	(c)	 	Extensions of credit in the nature of accounts receivable or notes receivable arising from
the sale or lease of goods or services in the ordinary course of business to non-affiliated
entities.

9.11 Change of Management. Not to make any substantial change in the present executive or
management personnel of the Borrower.

9.12 Change of Ownership. Not to cause, permit, or suffer any change in capital ownership
such that American Locker ceases to own and control, directly and indirectly, at least one hundred
percent (100%) of the capital ownership of Security Systems, Security Manufacturing and Canadian
Locker.

9.13 Additional Negative Covenants. Not to, without the Bank’s written consent:

	(a)	 	Enter into any consolidation, merger, amalgamation, or other combination, or become a partner
in a partnership, a member of a joint venture, or a member of a limited liability company.

	(b)	 	Acquire or purchase a business or its assets.

15

 

	(c)	 	Engage in any business activities substantially different from the Borrower’s present
business.

	(d)	 	Liquidate or dissolve the Borrower’s business.

	(e)	 	Voluntarily suspend its business for more than fifteen (15) days in any annual (90) day
period.

9.14 Notices to Bank. To promptly notify the Bank in writing of:

	(a)	 	Any lawsuit over Fifty Thousand and No/100 Dollars ($50,000.00) against the Borrower or any
Obligor.

	(b)	 	Any substantial dispute between any governmental authority and the Borrower or any Obligor.

	(c)	 	Any event of default under this Agreement, or any event which, with notice or lapse of time
or both, would constitute an event of default.

	(d)	 	Any material adverse change in the Borrower’s or any Obligor’s business condition (financial
or otherwise), operations, properties or prospects, or ability to repay the credit.

	(e)	 	Any change in the Borrower’s or any Obligor’s name, legal structure, principal residence (for
an individual), state, province, territory, or other jurisdiction of registration (for a
registered entity), place of business, or chief executive office if the Borrower or any
Obligor has more than one place of business.

	(f)	 	Any actual contingent liabilities of the Borrower or any Obligor, and any such contingent
liabilities which are reasonably foreseeable, where such liabilities are in excess of Fifty
Thousand and No/100 Dollars ($50,000.00) in the aggregate.

For purposes of this Agreement, “Obligor” shall mean any guarantor, any party pledging collateral
to the Bank, or, if the Borrower is comprised of the trustees of a trust, any trustor.

9.15 Insurance.

	(a)	 	General Business Insurance. To maintain insurance satisfactory to the Bank as to
amount, nature and carrier covering property damage (including loss of use and occupancy) to
any of the Borrower’s properties, business interruption insurance, public liability insurance
including coverage for contractual liability, product liability and workers’ compensation, and
any other insurance which is usual for the Borrower’s business. Each policy shall provide for
at least thirty (30) days prior notice to the Bank of any cancellation thereof.

	(b)	 	Insurance Covering Collateral. To maintain all risk property damage insurance
policies (including without limitation windstorm coverage, and hurricane coverage as
applicable) covering the tangible property comprising the collateral. Each insurance policy
must be for the full replacement cost of the collateral and include a replacement cost
endorsement. The insurance must be issued by an insurance company acceptable to the Bank and
must include a lender’s loss payable endorsement in favor of the Bank in a form acceptable to
the Bank.

	(c)	 	Evidence of Insurance. Upon the request of the Bank, to deliver to the Bank a copy
of each insurance policy, or, if permitted by the Bank, a certificate of insurance listing all
insurance in force.

9.16 Compliance with Laws. To comply with the laws (including any fictitious or trade name
statute), regulations, and orders of any government body with authority over the Borrower’s
business. The Bank shall have no obligation to make any advance to the Borrower except in
compliance with all applicable laws and regulations and the Borrower shall fully cooperate with the
Bank in complying with all such

16

 

applicable laws and regulations.

9.17 ERISA Plans. Promptly during each year, to pay and cause any subsidiaries to pay
contributions adequate to meet at least the minimum funding standards under ERISA with respect to
each and every Plan; file each annual report required to be filed pursuant to ERISA in connection
with each Plan for each year; and notify the Bank within ten (10) days of the occurrence of any
Reportable Event that might constitute grounds for termination of any capital Plan by the Pension
Benefit Guaranty Corporation or for the appointment by the appropriate United States District Court
of a trustee to administer any Plan. “ERISA” means the Employee Retirement Income Security Act of
1974, as amended from time to time. Capitalized terms in this paragraph shall have the meanings
defined within ERISA.

9.18 Canadian Pension Plans. Promptly during each year to make and cause any subsidiaries
to make all contributions required to be made to the appropriate funding agency in accordance with
all applicable laws and the terms of, and to fund in accordance with the terms of, each “pension
plan” or “plan” which is subject to the funding requirements of applicable pension benefits
legislation in any jurisdiction of Canada and is applicable to employees resident in Canada of the
Borrower, and each pension benefit plan or similar arrangement applicable to employees of the
Borrower (the “Canadian Pension Plan”).

9.19 Books and Records. To maintain adequate books and records.

9.20 Audits. To allow the Bank and its agents to inspect the Borrower’s properties and
examine, audit, and make copies of books and records at any reasonable time. If any of the
Borrower’s properties, books or records are in the possession of a third party, the Borrower
authorizes that third party to permit the Bank or its agents to have access to perform inspections
or audits and to respond to the Bank’s requests for information concerning such properties, books
and records.

9.21 Perfection of Liens. To help the Bank perfect and protect its security interests and
liens, and reimburse it for related costs it incurs to protect its security interests and liens.

9.22 Cooperation. To take any action reasonably requested by the Bank to carry out the
intent of this Agreement.

10. HAZARDOUS SUBSTANCES

10.1 Indemnity Regarding Hazardous Substances.

The Borrower will indemnify and hold harmless the Bank from any loss or liability the Bank incurs
in connection with or as a result of this Agreement, which directly or indirectly arises out of the
use, generation, manufacture, production, storage, release, threatened release, discharge, disposal
or presence of a hazardous substance. This indemnity will apply whether the hazardous substance is
on, under or about the Borrower’s property or operations or property leased to the Borrower. The
indemnity includes but is not limited to attorneys’ fees (including the reasonable estimate of the
allocated cost of in-house counsel and staff). The indemnity extends to the Bank, its parent,
subsidiaries and all of their directors, officers, employees, agents, successors, attorneys and
assigns.

10.2 Compliance Regarding Hazardous Substances.

The Borrower represents and warrants that the Borrower has complied with all current and future
laws, regulations and ordinances or other requirements of any governmental authority relating to or
imposing liability or standards of conduct concerning protection of health or the environment or
hazardous substances.

17

 

10.3 Notices Regarding Hazardous Substances.

Until full repayment of the loan, the Borrower will promptly notify the Bank in writing of any
threatened or pending investigation of the Borrower or its operations by any governmental agency
under any current or future law, regulation or ordinance pertaining to any hazardous substance.

10.4 Site Visits, Observations and Testing.

The Bank and its agents and representatives will have the right at any reasonable time, after
giving reasonable notice to the Borrower, to enter and visit any locations where the collateral
securing this Agreement (the “Collateral”) is located for the purposes of observing the Collateral,
taking and removing environmental samples, and conducting tests. The Borrower shall reimburse the
Bank on demand for the costs of any such environmental investigation and testing. The Bank will
make reasonable efforts during any site visit, observation or testing conducted pursuant this
paragraph to avoid interfering with the Borrower’s use of the Collateral. The Bank is under no
duty to observe the Collateral or to conduct tests, and any such acts by the Bank will be solely
for the purposes of protecting the Bank’s security and preserving the Bank’s rights under this
Agreement. No site visit, observation or testing or any report or findings made as a result
thereof (“Environmental Report”) (i) will result in a waiver of any default of the Borrower; (ii)
impose any liability on the Bank; or (iii) be a representation or warranty of any kind regarding
the Collateral (including its condition or value or compliance with any laws) or the Environmental
Report (including its accuracy or completeness). In the event the Bank has a duty or obligation
under applicable laws, regulations or other requirements to disclose an Environmental Report to the
Borrower or any other party, the Borrower authorizes the Bank to make such a disclosure. The Bank
may also disclose an Environmental Report to any regulatory authority, and to any other parties as
necessary or appropriate in the Bank’s judgment. The Borrower further understands and agrees that
any Environmental Report or other information regarding a site visit, observation or testing that
is disclosed to the Borrower by the Bank or its agents and representatives is to be evaluated
(including any reporting or other disclosure obligations of the Borrower) by the Borrower without
advice or assistance from the Bank.

10.5 Definition of Hazardous Substances.

“Hazardous substances” means any substance, material or waste that is or becomes designated or
regulated as “toxic,” “hazardous,” “pollutant,” or “contaminant” or a similar designation or
regulation under any current or future federal, state, provincial, territorial, or local law
(whether under common law, statute, regulation or otherwise) or judicial or administrative
interpretation of such, including without limitation petroleum or natural gas.

10.6 Continuing Obligation.

The Borrower’s obligations to the Bank under this Article, except the obligation to give notices to
the Bank, shall survive termination of this Agreement and repayment of the Borrower’s obligations
to the Bank under this Agreement.

11. DEFAULT AND REMEDIES

If any of the following events of default occurs, the Bank may do one or more of the following:
declare the Borrower in default, stop making any additional credit available to the Borrower, and
require the Borrower to repay its entire debt immediately and without prior notice. If an event
which, with notice or the passage of time, will constitute an event of default has occurred and is
continuing, the Bank has no obligation to make advances or extend additional credit under this
Agreement. In addition, if any event of default occurs, the Bank shall have all rights, powers and
remedies available under any instruments and agreements required by or executed in connection with
this Agreement, as well as all rights and remedies available at law or in equity. If an event of
default occurs under the paragraph entitled “Bankruptcy,” below, with respect to the Borrower, then
the entire debt outstanding under this Agreement will automatically be due immediately.

18

 

11.1 Failure to Pay. The Borrower fails to make a payment under this Agreement when due.

11.2 Other Bank Agreements. Any default occurs under any other agreement the Borrower (or
any Obligor) or any of the Borrower’s related entities or affiliates has with the Bank or any
affiliate of the Bank. If, in the Bank’s opinion, the breach is capable of being remedied, the
breach will not be considered an event of default under this Agreement unless the default remains
uncured for a period of ten (10) days following the occurrence thereof.

11.3 Cross-default. Any default occurs under any agreement in connection with any credit
the Borrower (or any Obligor) or any of the Borrower’s related entities or affiliates has obtained
from anyone else or which the Borrower (or any Obligor) or any of the Borrower’s related entities
or affiliates has guaranteed if the default is not cured within ten (10) days following the
occurrence thereof.

11.4 False Information. The Borrower or any Obligor has given the Bank false or misleading
information or representations.

11.5 Bankruptcy. The Borrower, any Obligor, or any general partner of the Borrower or of
any Obligor files a bankruptcy petition, a bankruptcy petition is filed against any of the
foregoing parties, or the Borrower, any Obligor, or any general partner of the Borrower or of any
Obligor makes a general assignment for the benefit of creditors. The default will be deemed cured
if any bankruptcy petition filed against the Borrower, any Obligor, or any general partner of the
Borrower or of any Obligor is dismissed within a period of forty-five (45) days after the filing;
provided, however, that such cure opportunity will be terminated upon the entry of an order for
relief in any bankruptcy case arising from such a petition.

11.6 Receivers. A receiver, receiver-manager, or similar official is appointed for a
substantial portion of the Borrower’s or any Obligor’s business, or the business is terminated, or,
if any Obligor is anything other than a natural person, such Obligor is liquidated or dissolved.

11.7 Lien Priority. The Bank fails to have an enforceable first lien (except for any prior
liens to which the Bank has consented in writing) on or security interest in any property given as
security for this Agreement (or any guaranty).

11.8 Lawsuits. Any lawsuit or lawsuits are filed on behalf of one or more trade creditors
against the Borrower or any Obligor in an aggregate amount of Fifty Thousand and No/100 Dollars
($50,000.00) or more in excess of any insurance coverage.

11.9 Judgments. Any judgments or arbitration awards are entered against the Borrower or
any Obligor, or the Borrower or any Obligor enters into any settlement agreements with respect to
any litigation or arbitration, in an aggregate amount of Two Hundred Fifty Thousand and No/100
Dollars ($250,000.00) or more in excess of any insurance coverage.

11.10 Death. If the Borrower or any Obligor is a natural person, the Borrower or such
Obligor dies or becomes legally incompetent; if the Borrower or any Obligor is a trust, a trustor
dies or becomes legally incompetent; if the Borrower or any Obligor is a partnership, any general
partner dies or becomes legally incompetent.

11.11 Material Adverse Change. A material adverse change occurs, or is reasonably likely
to occur, in the Borrower’s (or any Obligor’s) business condition (financial or otherwise),
operations, properties or prospects, or ability to repay the credit; or the Bank determines that it
is insecure for any other reason.

11.12 Government Action. Any government authority takes action that the Bank believes
materially adversely affects the Borrower’s or any Obligor’s financial condition or ability to
repay.

11.13 Default under Related Documents. Any default occurs under any guaranty,
subordination agreement, security agreement, deed of trust, mortgage, or other document required by
or delivered in

19

 

connection with this Agreement or any such document is no longer in effect, or any guarantor
purports to revoke or disavow the guaranty.

11.14 ERISA Plans.

Any one or more of the following events occurs with respect to a Plan of the Borrower subject to
Title IV of ERISA, provided such event or events could reasonably be expected, in the judgment of
the Bank, to subject the Borrower to any tax, penalty or liability (or any combination of the
foregoing) which, in the aggregate, could have a material adverse effect on the financial condition
of the Borrower:

	(a)	 	A reportable event shall occur under Section 4043(c) of ERISA with respect to a Plan.

	(b)	 	Any Plan termination (or commencement of proceedings to terminate a Plan) or the full or
partial withdrawal from a Plan by the Borrower or any ERISA Affiliate.

11.15 Canadian Pension Plans. Any one or more of the following events occurs with respect
to a Canadian Pension Plan of the Borrower, provided such event or events could reasonably be
expected in the judgment of the Bank, to subject the Borrower to any tax, penalty, or liability (or
any combination of the foregoing) which, in the aggregate, could have a material adverse effect on
the financial condition of the Borrower:

	(a)	 	A contribution failure shall occur with respect to any Canadian Pension Plan sufficient to
give rise to a lien or charge under any applicable pension benefits laws of any jurisdiction.

	(b)	 	A condition exists or an event or transaction occurs with respect to any Canadian Pension
Plan which might result in the incurrence by the Borrower of any fine or penalty in excess of
$100,000.

	(c)	 	A condition exists or an event or transaction occurs with respect to any Canadian Pension
Plan that has resulted or could reasonably be expected to result in any Pension Plan having
its registration revoked or refused for the purposes of any applicable pension benefits or tax
laws or being placed under the administration of any relevant pension benefits regulatory
authority or being required to pay any taxes or penalties under any applicable pension
benefits or tax laws.

11.16 Other Breach Under Agreement. A default occurs under any other term or condition of
this Agreement not specifically referred to in this Article. This includes any failure or
anticipated failure by the Borrower (or any other party named in the Covenants section) to comply
with any financial covenants set forth in this Agreement, whether such failure is evidenced by
financial statements delivered to the Bank or is otherwise known to the Borrower or the Bank.

12. ENFORCING THIS AGREEMENT; MISCELLANEOUS

12.1 GAAP. Except as otherwise stated in this Agreement, all financial information
provided to the Bank and all financial covenants will be made under generally accepted accounting
principles, consistently applied.

12.2 Governing Law.

This Agreement is governed by and shall be interpreted according to federal law and the laws of
Texas. If state or local law and federal law are inconsistent, or if state or local law is
preempted by federal law, federal law governs. If the Bank has greater rights or remedies under
federal law, whether as a national bank or otherwise, this paragraph shall not be deemed to deprive
the Bank of such rights and remedies as may be available under federal law. It is the intention of
the parties to comply with applicable usury laws. The parties agree that the total amount of
interest contracted for, charged, collected or received by

20

 

the Bank under this Agreement shall not exceed the Maximum Rate. To the extent, if any, that
Chapter 303 of the Texas Finance Code (the “Code”) is relevant to the Bank for purposes of
determining the Maximum Rate, the parties elect to determine the Maximum Rate under the Code
pursuant to the “weekly ceiling” from time to time in effect, as referred to and defined in §
303.001-303.016 of the Code; subject, however, to any right the Bank subsequently may have under
applicable law to change the method of determining the Maximum Rate. Notwithstanding any contrary
provisions contained herein, (a) the Maximum Rate shall be calculated on the basis of the actual
number of days elapsed over a year of 365 or 366 days, as the case may be; (b) in determining
whether the interest hereunder exceeds interest at the Maximum Rate, the total amount of interest
shall be spread throughout the entire term of this Agreement until its payment in full; (c) if at
any time the interest rate chargeable under this Agreement would exceed the Maximum Rate, thereby
causing the interest payable under this Agreement to be limited to the Maximum Rate, then any
subsequent reductions in the interest rate(s) shall not reduce the rate of interest charged under
this Agreement below the Maximum Rate until the total amount of interest accrued from and after the
date of this Agreement equals the amount of interest which would have accrued if the interest
rate(s) had at all times been in effect; (d) if the Bank ever charges or receives anything of value
which is deemed to be interest under applicable Texas law, and if the occurrence of any event,
including acceleration of maturity of obligations owing to the Bank, should cause such interest to
exceed the maximum lawful amount, any amount which exceeds interest at the Maximum Rate shall be
applied to the reduction of the unpaid principal balance under this Agreement or any other
indebtedness owed to the Bank by the Borrower, and if this Agreement and such other indebtedness
are paid in full, any remaining excess shall be paid to the Borrower; and (e) Chapter 346 of the
Code shall not be applicable to this Agreement or the indebtedness outstanding hereunder.

12.3 Successors and Assigns. This Agreement is binding on the Borrower’s and the Bank’s
successors and assignees. The Borrower agrees that it may not assign this Agreement without the
Bank’s prior consent. The Bank may sell participations in or assign this loan, and may exchange
information about the Borrower (including, without limitation, any information regarding any
hazardous substances) with actual or potential participants or. If a participation is sold or the
loan is assigned, the purchaser will have the right of set-off against the Borrower.

12.4 Dispute Resolution Provision.

This paragraph, including the subparagraphs below, is referred to as the “Dispute Resolution
Provision.” This Dispute Resolution Provision is a material inducement for the parties entering
into this agreement.

	(a)	 	This Dispute Resolution Provision concerns the resolution of any controversies or claims
between the parties, whether arising in contract, tort or by statute, including but not
limited to controversies or claims that arise out of or relate to: (i) this agreement
(including any renewals, extensions or modifications); or (ii) any document related to this
agreement (collectively a “Claim”). For the purposes of this Dispute Resolution Provision
only, the term “parties” shall include any parent corporation, subsidiary or affiliate of the
Bank involved in the servicing, management or administration of any obligation described or
evidenced by this agreement.

	(b)	 	At the request of any party to this agreement, any Claim shall be resolved by binding
arbitration in accordance with the Federal Arbitration Act (Title 9, U.S. Code) (the “Act”).
The Act will apply even though this agreement provides that it is governed by the law of a
specified state.

	(c)	 	Arbitration proceedings will be determined in accordance with the Act, the then-current rules
and procedures for the arbitration of financial services disputes of the American Arbitration
Association or any successor thereof (“AAA”), and the terms of this Dispute Resolution
Provision. In the event of any inconsistency, the terms of this Dispute Resolution Provision
shall control. If AAA is unwilling or unable to (i) serve as the provider of arbitration or
(ii) enforce any provision of this arbitration clause, the Bank may designate another
arbitration organization with similar procedures to serve as the provider of arbitration.

21

 

	(d)	 	The arbitration shall be administered by AAA and conducted, unless otherwise required by law,
in any U.S. state where real or tangible personal property collateral for this credit is
located or if there is no such collateral, in the state specified in the governing law section
of this agreement. All Claims shall be determined by one arbitrator; however, if Claims
exceed Five Million Dollars ($5,000,000), upon the request of any party, the Claims shall be
decided by three arbitrators. All arbitration hearings shall commence within ninety (90) days
of the demand for arbitration and close within ninety (90) days of commencement and the award
of the arbitrator(s) shall be issued within thirty (30) days of the close of the hearing.
However, the arbitrator(s), upon a showing of good cause, may extend the commencement of the
hearing for up to an additional sixty (60) days. The arbitrator(s) shall provide a concise
written statement of reasons for the award. The arbitration award may be submitted to any
court having jurisdiction to be confirmed and have judgment entered and enforced.

	(e)	 	The arbitrator(s) will give effect to statutes of limitation in determining any Claim and
shall dismiss the arbitration if the Claim is barred under the applicable statutes of
limitation. For purposes of the application of any statutes of limitation, the service on AAA
under applicable AAA rules of a notice of Claim is the equivalent of the filing of a lawsuit.
Any dispute concerning this arbitration provision or whether a Claim is arbitrable shall be
determined by the arbitrator(s), except as set forth at subparagraph (h) of this Dispute
Resolution Provision. The arbitrator(s) shall have the power to award legal fees pursuant to
the terms of this agreement.

	(f)	 	This paragraph does not limit the right of any party to: (i) exercise self-help remedies,
such as but not limited to, setoff; (ii) initiate judicial or non-judicial foreclosure against
any real or personal property collateral; (iii) exercise any judicial or power of sale rights,
or (iv) act in a court of law to obtain an interim remedy, such as but not limited to,
injunctive relief, writ of possession or appointment of a receiver, or additional or
supplementary remedies.

	(g)	 	The filing of a court action is not intended to constitute a waiver of the right of any
party, including the suing party, thereafter to require submittal of the Claim to arbitration.

	(h)	 	Any arbitration or court trial (whether before a judge or jury) of any Claim will take place
on an individual basis without resort to any form of class or representative action (the
“Class Action Waiver”). The Class Action Waiver precludes any party from participating in or
being represented in any class or representative action regarding a Claim. Regardless of
anything else in this Dispute Resolution Provision, the validity and effect of the Class
Action Waiver may be determined only by a court and not by an arbitrator. The parties to this
agreement acknowledge that the Class Action Waiver is material and essential to the
arbitration of any disputes between the parties and is nonseverable from the agreement to
arbitrate Claims. If the Class Action Waiver is limited, voided or found unenforceable, then
the parties’ agreement to arbitrate shall be null and void with respect to such proceeding,
subject to the right to appeal the limitation or invalidation of the Class Action Waiver. The
Parties acknowledge and agree that under no circumstances will a class action be arbitrated.

	(i)	 	By agreeing to binding arbitration, the parties irrevocably and voluntarily waive any right
they may have to a trial by jury in respect of any Claim. Furthermore, without intending in
any way to limit this agreement to arbitrate, to the extent any Claim is not arbitrated, the
parties irrevocably and voluntarily waive any right they may have to a trial by jury in
respect of such Claim. This waiver of jury trial shall remain in effect even if the Class
Action Waiver is limited, voided or found unenforceable. WHETHER THE CLAIM IS DECIDED BY
ARBITRATION OR BY TRIAL BY A JUDGE, THE PARTIES AGREE AND UNDERSTAND THAT THE EFFECT OF THIS
AGREEMENT IS THAT THEY ARE GIVING UP THE RIGHT TO TRIAL BY JURY TO THE EXTENT PERMITTED BY
LAW.

22

 

12.5 Severability; Waivers. If any part of this Agreement is not enforceable, the rest of
the Agreement may be enforced. The Bank retains all rights, even if it makes a loan after default.
If the Bank waives a default, it may enforce a later default. Any consent or waiver under this
Agreement must be in writing.

12.6 Attorneys’ Fees. The Borrower shall reimburse the Bank for any reasonable costs and
attorneys’ fees incurred by the Bank in connection with the enforcement or preservation of any
rights or remedies under this Agreement and any other documents executed in connection with this
Agreement, and in connection with any amendment, waiver, “workout” or restructuring under this
Agreement. In the event of a lawsuit or arbitration proceeding, the prevailing party is entitled
to recover costs and reasonable attorneys’ fees incurred in connection with the lawsuit or
arbitration proceeding, as determined by the court or arbitrator. In the event that any case is
commenced by or against the Borrower under the Bankruptcy Code (Title 11, United States Code), the
Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada), or any
similar or successor statute, the Bank is entitled to recover costs and reasonable attorneys’ fees
incurred by the Bank related to the preservation, protection, or enforcement of any rights of the
Bank in such a case. As used in this paragraph, “attorneys’ fees” includes the allocated costs of
the Bank’s in-house counsel.

12.7 Joint and Several Liability.

	(a)	 	Each Borrower agrees that it is jointly and severally liable to the Bank for the payment of
all obligations arising under this Agreement, and that such liability is independent of the
obligations of the other Borrower(s). Each obligation, promise, covenant, representation and
warranty in this Agreement shall be deemed to have been made by, and be binding upon, each
Borrower, unless this Agreement expressly provides otherwise. The Bank may bring an action
against any Borrower, whether an action is brought against the other Borrower(s).

	(b)	 	Each Borrower agrees that any release which may be given by the Bank to the other Borrower(s)
or any guarantor will not release such Borrower from its obligations under this Agreement.

	(c)	 	Each Borrower waives any right to assert against the Bank any defense, setoff, counterclaim,
or claims which such Borrower may have against the other Borrower(s) or any other party liable
to the Bank for the obligations of the Borrowers under this Agreement.

	(d)	 	Each Borrower waives any defense by reason of any other Borrower’s or any other person’s
defense, disability, or release from liability. The Bank can exercise its rights against each
Borrower even if any other Borrower or any other person no longer is liable because of a
statute of limitations or for other reasons.

	(e)	 	Each Borrower agrees that it is solely responsible for keeping itself informed as to the
financial condition of the other Borrower(s) and of all circumstances which bear upon the risk
of nonpayment. Each Borrower waives any right it may have to require the Bank to disclose to
such Borrower any information which the Bank may now or hereafter acquire concerning the
financial condition of the other Borrower(s).

	(f)	 	Each Borrower waives all rights to notices of default or nonperformance by any other Borrower
under this Agreement. Each Borrower further waives all rights to notices of the existence or
the creation of new indebtedness by any other Borrower and all rights to any other notices to
any party liable on any of the credit extended under this Agreement.

	(g)	 	The Borrowers represent and warrant to the Bank that each will derive benefit, directly and
indirectly, from the collective administration and availability of credit under this
Agreement. The Borrowers agree that the Bank will not be required to inquire as to the
disposition by any Borrower of funds disbursed in accordance with the terms of this Agreement.

23

 

	(h)	 	Until all obligations of the Borrowers to the Bank under this Agreement have been paid in
full and any commitments of the Bank or facilities provided by the Bank under this Agreement
have been terminated, each Borrower (a) waives any right of subrogation, reimbursement,
indemnification and contribution (contractual, statutory or otherwise), including without
limitation, any claim or right of subrogation under the Bankruptcy Code (Title 11, United
States Code), the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement
Act (Canada), or any successor statute, which such Borrower may now or hereafter have against
any other Borrower with respect to the indebtedness incurred under this Agreement; (b) waives
any right to enforce any remedy which the Bank now has or may hereafter have against any other
Borrower, and waives any benefit of, and any right to participate in, any security now or
hereafter held by the Bank.

	(i)	 	Each Borrower waives any right to require the Bank to proceed against any other Borrower or
any other person; proceed against or exhaust any security; or pursue any other remedy.
Further, each Borrower consents to the taking of, or failure to take, any action which might
in any manner or to any extent vary the risks of the Borrower under this Agreement or which,
but for this provision, might operate as a discharge of the Borrower.

12.8 Individual Liability. If the Borrower is a natural person, the Bank may proceed
against the Borrower’s business and non-business property in enforcing this and other agreements
relating to this loan. If the Borrower is a partnership, the Bank may proceed against the business
and non-business property of each general partner of the Borrower in enforcing this and other
agreements relating to this loan.

12.9 Set-Off.

	(a)	 	In addition to any rights and remedies of the Bank provided by law, upon the occurrence and
during the continuance of any event of default under this Agreement, the Bank is authorized,
at any time, to set off and apply any and all Deposits of the Borrower or any Obligor held by
the Bank against any and all Obligations owing to the Bank. The set-off may be made
irrespective of whether or not the Bank shall have made demand under this Agreement or any
guaranty, and although such Obligations may be contingent or unmatured or denominated in a
currency different from that of the applicable Deposits.

	(b)	 	The set-off may be made without prior notice to the Borrower or any other party, any such
notice being waived by the Borrower (on its own behalf and on behalf of each Obligor) to the
fullest extent permitted by law. The Bank agrees promptly to notify the Borrower after any
such set-off and application; provided, however, that the failure to give such
notice shall not affect the validity of such set-off and application.

	(c)	 	For the purposes of this paragraph, “Deposits” means any deposits (general or special, time
or demand, provisional or final, individual or joint) and any instruments owned by the
Borrower or any Obligor which come into the possession or custody or under the control of the
Bank. “Obligations” means all obligations, now or hereafter existing, of the Borrower to the
Bank under this Agreement and under any other agreement or instrument executed in connection
with this Agreement, and the obligations to the Bank of any Obligor.

12.10 One Agreement. This Agreement and any related security or other agreements required
by this Agreement, collectively:

	(a)	 	represent the sum of the understandings and agreements between the Bank and the Borrower
concerning this credit;

	(b)	 	replace any prior oral or written agreements between the Bank and the Borrower concerning
this credit; and

24

 

	(c)	 	are intended by the Bank and the Borrower as the final, complete and exclusive statement of
the terms agreed to by them.

In the event of any conflict between this Agreement and any other agreements required by this
Agreement, this Agreement will prevail. Any reference in any related document to a “promissory
note” or a “note” executed by the Borrower and dated as of the date of this Agreement shall be
deemed to refer to this Agreement, as now in effect or as hereafter amended, renewed, or restated.

12.11 Indemnification. The Borrower will indemnify and hold the Bank harmless from any
loss, liability, damages, judgments, and costs of any kind relating to or arising directly or
indirectly out of (a) this Agreement or any document required hereunder, (b) any credit extended or
committed by the Bank to the Borrower hereunder, (c) any claim, whether well-founded or otherwise,
that there has been a failure to comply with any law regulating the Borrower’s sales or leases to
or performance of services for debtors obligated upon the Borrower’s accounts receivable and
disclosures in connection therewith, and (d) any litigation or proceeding related to or arising out
of this Agreement, any such document, any such credit, or any such claim. This indemnity includes
but is not limited to attorneys’ fees (including the allocated cost of in-house counsel). This
indemnity extends to the Bank, its parent, subsidiaries and all of their directors, officers,
employees, agents, successors, attorneys, and assigns. This indemnity will survive repayment of
the Borrower’s obligations to the Bank. All sums due to the Bank hereunder shall be obligations of
the Borrower, due and payable immediately without demand.

12.12 Notices. Unless otherwise provided in this Agreement or in another agreement between
the Bank and the Borrower, all notices required under this Agreement shall be personally delivered
or sent by first class mail, postage prepaid, or by overnight courier, to the addresses on the
signature page of this Agreement, or sent by facsimile to the fax numbers listed on the signature
page, or to such other addresses as the Bank and the Borrower may specify from time to time in
writing. Notices and other communications shall be effective (i) if mailed, upon the earlier of
receipt or five (5) days after deposit in the U.S. mail, first class, postage prepaid, or seven (7)
days after deposit in mail in Canada, first class, postage prepaid, (ii) if telecopied, when
transmitted, or (iii) if hand-delivered, by courier or otherwise (including telegram, lettergram or
mailgram), when delivered.

12.13 Headings. Article and paragraph headings are for reference only and shall not affect
the interpretation or meaning of any provisions of this Agreement.

12.14 Counterparts. This Agreement may be executed in as many counterparts as necessary or
convenient, and by the different parties on separate counterparts each of which, when so executed,
shall be deemed an original but all such counterparts shall constitute but one and the same
agreement.

12.15 Borrower Information; Reporting to Credit Bureaus. The Borrower authorizes the Bank
at any time to verify or check any information given by the Borrower to the Bank, check the
Borrower’s credit references, verify employment, and obtain credit reports. The Borrower agrees
that the Bank shall have the right at all times to disclose and report to credit reporting agencies
and credit rating agencies such information pertaining to the Borrower and/or all guarantors as is
consistent with the Bank’s policies and practices from time to time in effect.

12.16 Disposition of Schedules and Reports. The Bank will not be obligated to return any
schedules, invoices, statements, budgets, forecasts, reports or other papers delivered by the
Borrower. The Bank will destroy or otherwise dispose of such materials at such time as the Bank,
in its discretion, deems appropriate.

12.17 Returned Merchandise. Until the Bank exercises its rights to collect the accounts
receivable as provided under any security agreement required under this Agreement, the Borrower may
continue its present policies for returned merchandise and adjustments. Credit adjustments with
respect to returned merchandise shall be made immediately upon receipt of the merchandise by the
Borrower or upon such other disposition of the merchandise by the debtor in accordance with the
Borrower’s instructions. If a credit adjustment is made with respect to any Acceptable Receivable,
the amount of such adjustment

25

 

shall no longer be included in the amount of such Acceptable Receivable in computing the Borrowing
Base.

12.18 Verification of Receivables. The Bank may at any time, either orally or in writing,
request confirmation from any debtor of the current amount and status of the accounts receivable
upon which such debtor is obligated.

12.19 Waiver of Confidentiality. The Borrower authorizes the Bank to discuss the
Borrower’s financial affairs and business operations with any accountants, auditors, business
consultants, or other professional advisors employed by the Borrower, and authorizes such parties
to disclose to the Bank such financial and business information or reports (including management
letters) concerning the Borrower as the Bank may request.

12.20 Document Receipt Cut-Off Date. Unless this Agreement and any documents required by
this Agreement have been signed and returned to the Bank within ten (10) days after the date of
this Agreement (the “Document Receipt Cut-Off Date”), the Bank shall have the right to notify the
Borrower in writing that the Bank’s commitment to extend credit under this Agreement has expired.
If the executed Agreement and accompanying loan documents are received after the Document Receipt
Cut-Off Date, the Bank shall have a reasonable period of time after receipt of the executed
Agreement and accompanying loan documents to provide such notice.

12.21 Notice of Final Agreement.

THIS WRITTEN LOAN AGREEMENT AND THE LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

This Agreement is executed as of the date stated at the top of the first page.

	 	 	 	 	 	 	 	 	 

	Bank of America, N.A.	 	American Locker Group Incorporated	 	 
	 
	 	 	 	 	 	 	 	 
	By

	 	/s/ Tye McClure
 

	 	By
	 	/s/ Paul Zaidins
 

	 	 
	Typed Name: Tye McClure	 	Typed Name: Paul Zaidins	 	 
	Title: Vice President	 	Title: President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 	 	 
	Address where notices to

the Bank are to be sent:	 	Address where notices to

the Borrower are to be sent:	 	 
	 
	 	 	 	 	 	 	 	 
	500 West 7th Street, 2nd Floor 

Fort Worth, Texas 76102

Facsimile: 1-800-210-1068	 	815 S. Main Street

Grapevine, Texas 76051

Telephone: 817-722-0131

Facsimile: 817-722-0100	 	 

[Remainder of Page Intentionally Left Blank; Signatures Continue on Following Page]

26

 

	 	 	 	 	 	 	 

	 

	 	American Locker Security Systems, Inc.
	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Paul Zaidins
	 	 
	 	 	Typed Name: Paul Zaidins	 	 
	 	 	Title: President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Address where notices to

the Borrower are to be sent:	 	 
	 
	 	 	 	 	 	 
	 	 	815 S. Main Street

Grapevine, Texas 76051

Telephone: 817-722-0131

Facsimile: 817-722-0100	 	 
	 
	 	 	 	 	 	 
	 

	 	Security Manufacturing Corporation
	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Paul Zaidins
	 	 
	 	 	Typed Name: Paul Zaidins	 	 
	 	 	Title: President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Address where notices to

the Borrower are to be sent:	 	 
	 
	 	 	 	 	 	 
	 	 	815 S. Main Street

Grapevine, Texas 76051

Telephone: 817-722-0131

Facsimile: 817-722-0100	 	 
	 
	 	 	 	 	 	 
	 

	 	Canadian Locker Company Limited
	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Paul Zaidins
	 	 
	 	 	Typed Name: Paul Zaidins	 	 
	 	 	Title: President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	Address where notices to

the Borrower are to be sent:	 	 
	 
	 	 	 	 	 	 
	 	 	815 S. Main Street

Grapevine, Texas 76051

Telephone: 817-722-0131

Facsimile: 817-722-0100	 	 

Federal law requires Bank of America, N.A. (the “Bank”) to provide the following notice. The notice
is not part of the foregoing agreement or instrument and may not be altered. Please read the
notice carefully.

          USA PATRIOT ACT NOTICE

27

 

Federal law requires all financial institutions to obtain, verify and record information that
identifies each person who opens an account or obtains a loan. The Bank will ask for the
Borrower’s legal name, address, tax ID number or social security number and other identifying
information. The Bank may also ask for additional information or documentation or take other
actions reasonably necessary to verify the identity of the Borrower, guarantors or other related
persons.

28exv10w7

EXHIBIT 10.7

LEASE AGREEMENT

[TEXAS]

This Lease Agreement (this “Lease”) is made and entered into by and between BV DFWA I, LP,
a Texas limited partnership (“Landlord”) and AMERICAN LOCKER GROUP, INC., a Delaware
corporation (“Tenant”);

     1. Premises and Term. In consideration of the obligation of Tenant to pay Rent as
provided in this Lease, and in consideration of the other terms, provisions, and covenants of this
Lease, Landlord leases to Tenant, and Tenant leases from Landlord premises delineated on
Exhibit A attached hereto and incorporated herein (the “Premises”) in the building
(the “Building”) located on the real property described on Exhibit B attached
hereto and incorporated herein (the “Land”) in Dallas County, Texas, more particularly
described as follows:

	 	 	Approximately 100,500 square feet of space within a building of 401,797 square feet situated
on a 23.103 acre tract of land situated in the Heirs of Joel Wilson Survey, Abstract No.
1555, the S.A. & M.G.R.R. Survey, Abstract No. 1439, the Singleton Thompson Survey, Abstract
No. 1733, and the William Russell survey, Abstract 1728, Dallas County, Texas, said tract
being a portion of that certain tract of land known as Dallas Fort Worth International
Airport, with said building being commonly known as 2701 Regent Boulevard, DFW Airport,
Texas

To have and to hold the Premises, subject to the terms and provisions of this Lease, for a term
(the “Term”) commencing on January 1, 2011 (the “Commencement Date”), and ending
ninety-one (91) full calendar months thereafter. Landlord shall have Substantially Completed
Landlord’s Work prior to the Commencement Date, subject to any Tenant Delay Day. Landlord’s
non-delivery of possession of the Premises to Tenant on the Commencement Date will not affect this
Lease or the obligations of Tenant under this Lease. However, unless caused by a Tenant Delay Day,
the Commencement Date will be delayed until possession of the Premises is delivered to Tenant and
the Term will be extended for a period equal to the delay in delivery of possession of the Premises
to Tenant. If delivery of possession of the Premises to Tenant is delayed, Landlord and Tenant
shall, upon such delivery, execute an amendment to this Lease setting forth the revised
Commencement Date and expiration date of the Term. Tenant shall have the right to occupy the
Premises beginning upon execution of this Lease and continuing until the Commencement Date (the
“Early Occupancy Period”) in order to set up equipment, racking, network cabling, security
systems, office furniture and any other items in order to ready the Premises for Tenant’s use
thereof, subject to all applicable requirements, restrictions and approvals of DFW Airport. During
such Early Occupancy Period, Tenant shall not be required to pay Rent (as hereinafter defined) but
shall be otherwise subject to all of the provisions of this Lease. By taking possession of the
Premises, Tenant shall be deemed to have acknowledged that it has inspected the Premises and
accepts the Premises in their then present condition, and as suitable for the purpose for which the
Premises are leased. Tenant further acknowledges that Landlord has made no representations as to
the repair or condition of the Premises, nor promises to alter, remodel, or improve the Premises,
except those expressly set forth in this Lease. Additionally, subject to the terms of this Lease
and Landlord’s rules and regulations therefor, Tenant and its employees, agents, and invitees shall
have the non-exclusive use of all common areas and all easements and appurtenances which benefit
the Land and including walkways, landscaping, rights of way, and other improvements benefiting the
Building in each case to the extent designated by Landlord from time to time for the common use of
all tenants of the Building.

     2. Rent.

          2.1. As used in this Lease, “Rent” means “Base Rent” (defined in Section 2.2)
and “Additional Rent” (defined in Section 3). In the event Tenant fails to pay any
installment of Rent hereunder within ten (10) days of the due date of when such installment is due,
Tenant shall be obligated to pay to Landlord (without the necessity of a demand therefor by
Landlord) a late charge in an amount equal to ten percent (10%) of such installment; provided,
however, that Tenant may pay Rent later than such ten (10) day grace period up to two (2) times per
calendar year before such late charge shall be applied. The late charge is in addition to all of
Landlord’s other rights and remedies hereunder or at law and shall not be construed as liquidated
damages or as limiting Landlord’s remedies in any manner.

          2.2. Tenant agrees to pay to Landlord rent for the Premises, without deduction, set off, or
abatement, for the Term, in the following monthly amounts (the “Base Rent”):

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	1
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

	 	 	 	 	 
	LEASE PERIOD	 	MONTHLY BASE RENT
	January 1, 2011 through July 31, 2011
	 	$	0.00	 
	August 1, 2011 through July 31, 2012
	 	$	8,375.00	 
	August 1, 2012 through January 31, 2014
	 	$	16,750.00	 
	February 1, 2014 through January 31, 2017
	 	$	25,125.00	 
	February 1, 2017 through July 31, 2018
	 	$	27,218.75	 

The initial monthly installment of Base Rent is due and payable upon execution of this Lease and
will be applied to the first calendar month of the Term; subsequent monthly installments of Base
Rent are due and payable in advance without demand on or before the first day of each succeeding
calendar month during the Term. If the Commencement Date occurs on a date other than the first day
of a calendar month, there shall be due and payable on the Commencement Date an additional amount
equal to that portion of the Base Rent (prorated on a daily basis) attributable to the number of
days from the Commencement Date to the end of the calendar month during which the Commencement Date
falls.

          2.3. Landlord hereby grants Tenant use of the Premises free of Base Rent for the seven (7)
full calendar month(s) of the Term from January 1, 2011 through July 31, 2011 (the “Free Rent
Period”). The total value of the free rent granted to Tenant is $58,625.00. Except for the
non-payment of Base Rent specified above, Tenant shall, throughout the Free Rent Period, be
obligated to make all other payments which Tenant is obligated to make pursuant to the terms of the
Lease and shall be subject to all the covenants and conditions of the Lease.

          2.4. If any check tendered to Landlord by Tenant under this Lease is dishonored for any reason
caused by Tenant, Tenant shall pay to Landlord an amount equal to the amount Landlord has been
required to pay to its bank as a result of such dishonor. If any two or more Rent payments by
check are dishonored or returned unpaid, thereafter Landlord may, at Landlord’s sole option, upon
written notice to Tenant, require that all future payments of Rent for the remaining Term must be
made by cash, certified check, cashier’s check, official bank check, money order, or automatic
electronic funds transfer (“Good Funds”). Any acceptance by Landlord of a payment for Rent
by Tenant’s personal or corporate check thereafter will not be construed as a waiver of Landlord’s
right to insist upon payment by Good Funds as set forth herein.

     3. Tenant’s Obligation to Pay Reimbursable Expenses as Additional Rent. In addition
to the Base Rent payable under Section 2.2, Tenant shall pay to Landlord as Additional Rent the
Reimbursable Expenses (as herein defined), as adjusted from time to time, as set forth in Section
3. For purposes of this Lease, the following terms shall have the herein indicated meanings:

          3.1. “Reimbursable Expenses” means “Tenant’s Share” of “Taxes” and
“Operating Costs” (as all such terms are herein defined).

          3.2. The term “Tenant’s Share” means a fraction (expressed as a percentage to two
decimal places), the numerator of which is the floor area (in square feet) of the Premises and the
denominator of which is the aggregate leaseable floor area (in square feet) in all buildings
(including the Building) now or hereafter situated on the Land as of the first day of January for
the relevant calendar year. Landlord and Tenant hereby stipulate that Tenant’s Share is
25.01 % as of the Commencement Date.

          3.3. “Operating Costs” means, for each calendar year (or portion thereof) during the
Term, the aggregate of all costs, expenses, and liabilities of every kind or nature paid or
incurred by Landlord in connection with the ownership, operation and maintenance of the
“Project” (being the Building and Land, together with driveways, parking facilities,
loading dock areas, roadways and any other similar improvements and easements associated with the
foregoing or operation thereof) including but not limited to the following costs determined in
accordance with generally accepted accounting principles consistently applied. (A) property
management fees (not to exceed 5% of the gross rent received from the Project) and expenses that
are directly related to the Project; (B) all supplies and materials directly used in the operation,
maintenance, repair, replacement, and security of the Project; (C) the actual cost of all utilities
(including fuel, gas, electricity, water, sewer, and other services) for the common areas and other
non-tenant areas of the Project (e.g., mechanical, electrical and telecommunications rooms) as
reasonably determined by Landlord; (D) repairs, replacements, and general maintenance of the
Project including but not limited to paving and parking areas, roads, roof repairs (Landlord is
responsible for replacement of the roof as provided in Section 7), alleys and driveways, trash
collection, sweeping and removal of trash for the common areas, mowing and snow removal,
landscaping and exterior painting, the cost of maintaining utility lines, fire

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	2
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

sprinklers and fire protection systems, exterior lighting, and mechanical and plumbing systems
serving the Project and, to the extent the following items serve more than one tenant in the
Project, dock doors, drains and sump pumps; (E) service, maintenance and management contracts for
the operation, maintenance, management, repair, replacement, and security of the Project (including
but not limited to alarm service, window cleaning, and elevator maintenance); (F) costs of
professional services rendered for the general benefit of the Project; (G) environmental insurance
or environmental management fees; (H) the cost of any insurance deductibles for insurance required
to be maintained by Landlord; (I) insurance expenses; and (J) costs for improvements made to the
Project which, although capital in nature, are expected to reduce the normal operating costs
(including but not limited to all utility costs) of the Project, as amortized using a commercially
reasonable interest rate over the time period reasonably estimated by Landlord to recover the costs
thereof taking into consideration the anticipated cost savings, as determined by Landlord using its
good faith, commercially reasonable judgment, as well as capital improvements made in order to
comply with any Law hereafter promulgated by any governmental authority or any new interpretations
of any Law hereafter rendered with respect to any existing Law, as amortized using a commercially
reasonable interest rate over the useful economic life of such improvements as determined by
Landlord in its reasonable discretion. As used in this Lease, the term “Laws” refers to
any federal, state, and local laws, ordinances, rules and regulations, court orders, governmental
directives, governmental orders and all interpretations of the foregoing, and all restrictive
covenants affecting this Lease or the Project. The preceding notwithstanding, for purposes of
determining Tenant’s share of Operating Costs, Controllable Operating Costs (defined below) for any
calendar year will be deemed not to increase over the amount of Controllable Operating Costs during
the previous year by more than eight percent (8%) per year on a cumulative basis, compounded
annually. The term “Controllable Operating Costs” means all Operating Costs except costs
and expenses for taxes, insurance, utilities, costs to Landlord resulting from compliance with
Laws, and any increases in service contract fees and expenses resulting from government-mandated
wage increases. The term “Non-Controllable Operating Costs” means all Operating Costs
other than Controllable Operating Costs. There is no cap on Non-Controllable Operating Costs.

Operating Costs shall not include costs for (i) capital improvements made to the Project, other
than capital improvements described in Section 3.3(J) and except for items which are generally
considered maintenance and repair items, such as painting of common areas, and the like; (ii)
repair, replacements and general maintenance paid by proceeds of insurance or by Tenant or other
third parties; (iii) interest, amortization or other payments on loans to Landlord; (iv)
depreciation; (v) leasing commissions; (vi) legal expenses for services, other than those that
directly benefit all Project tenants generally (e.g., tax disputes); provided, however, explicitly
excluding legal fees incurred by Landlord to enforce obligations of other tenants of the Project;
(vii) Taxes; (viii) renovating or otherwise improving space for occupants of the Project or vacant
space in the Project.; (ix) the cost of any expense to Landlord in curing a default under any
ground lease or lease to other tenants of the Project; or (x) the costs and expenses incurred by
Landlord directly resulting from the negligence or willful misconduct of Landlord or its agents.

          3.4. “Taxes” means all taxes, assessments, and governmental charges or fees whether
federal, state, county or municipal, and whether they be by taxing districts or authorities
presently taxing or by others, subsequently created or otherwise, and any other taxes and
assessments (including but not limited to non-governmental assessments for common charges under a
restrictive covenant or other private agreement that are not treated as part of Operating Costs)
now or hereafter attributable to the Project (or its operation), excluding, however, penalties and
interest thereon and federal and state taxes on income (if the present method of taxation changes
so that in lieu of or in addition to the whole or any part of any Taxes, there is levied on
Landlord a capital tax directly on the rents received therefrom or a margin tax, franchise tax,
assessment, or charge based, in whole or in part, upon such rents for the Project, then all such
taxes, assessments, or charges, or the part thereof so based, shall be deemed to be included within
the term “Taxes” for purposes hereof). Taxes shall include the costs of consultants retained in an
effort to lower Taxes and all costs incurred in disputing any taxes or in seeking to lower the tax
valuation of the Project. For property tax purposes, Tenant waives all rights to protest or appeal
the appraised value of the Premises, as well as the Project, and all rights to receive notices of
reappraisement, as set forth in Sections 41.413 and 42.015 of the Texas Tax Code. If applicable,
Landlord may, in its sole discretion, allocate in a reasonable manner the values of multiple
properties carried by taxing authorities on a single tax account.

          3.5. Landlord may make a good faith estimate of Tenant’s Share of Reimbursable Expenses to be
due by Tenant for any calendar year or part thereof during the Term. During each calendar year or
partial calendar year of the Term, Tenant shall pay to Landlord, in advance concurrently with each
monthly installment of Base Rent, an amount equal to the estimated Tenant’s Share of Reimbursable
Expenses for such calendar year or part thereof divided by the number of months therein. During
the first year of the Term, Tenant shall pay to Landlord the sum of $9,213.00 per month in advance,
as Landlord’s initial estimate of Tenant’s Share of Reimbursable Expenses, which amount includes
$9,213.00 per month as

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	3
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

Landlord’s estimate of Tenant’s Share of Operating Costs and $0.00 per month as Landlord’s
estimate of Tenant’s Share of Taxes. From time to time, Landlord may estimate and re-estimate the
amount of Tenant’s Share of Reimbursable Expenses to be due by Tenant and deliver a copy of the
estimate or re-estimate to Tenant. Thereafter, the monthly installments of Tenant’s Share of
Reimbursable Expenses payable by Tenant shall be appropriately adjusted in accordance with the
estimations so that, by the end of the calendar year in question, Tenant shall have paid all of
Tenant’s Share of Reimbursable Expenses as estimated by Landlord. Any amounts paid based on such
an estimate shall be subject to adjustment as herein provided when actual Reimbursable Expenses are
available for each calendar year.

          3.6. By April 1 of each calendar year, or as soon thereafter as practicable, Landlord shall
furnish to Tenant a statement of Reimbursable Expenses for the previous year (the “Reimbursable
Expenses Statement”). If Tenant’s estimated payments of Operating Costs or Taxes under this
Section 3 for the year covered by the Reimbursable Expenses Statement exceed Tenant’s Share of such
items as indicated in the Reimbursable Expenses Statement, then Landlord shall promptly reimburse
Tenant for such excess, or in Landlord’s election, credit such amount against rent; likewise, if
Tenant’s estimated payments of Operating Costs or Taxes under this Section 3 for such year are less
than Tenant’s Share of such items as indicated in the Reimbursable Expenses and Tax Statement, then
Tenant shall promptly pay Landlord such deficiency.

          3.7. Landlord’s books and records with regard to Reimbursable Expenses are available for
inspection by Tenant at Landlord’s offices during Landlord’s regular business hours. Tenant or
auditors selected by Tenant and reasonably approved by Landlord in writing, shall have the right,
within ninety (90) days of receiving the Reimbursable Expenses Statement, to inspect and audit such
records at Landlord’s offices during Landlord’s regular business hours. If the audit is conducted
by a firm retained on a contingency fee basis, the firm shall be reputable and approved in writing
by both Tenant and Landlord (which approval shall not be unreasonably withheld, conditioned or
delayed). If such audit reveals that an error was made in the Reimbursable Expenses previously
charged to Tenant, then Landlord shall refund to Tenant any overpayment of any such costs, or
Tenant shall pay to Landlord any underpayment of any such costs, as the case may be, within thirty
(30) days after notification thereof. If such audit reveals overpayment by Tenant of more than
five percent (5%) from Tenant’s payment of Reimbursable Expenses, Landlord shall reimburse Tenant
for the actual cost of such audit, in all other cases Tenant shall bear all costs and expenses
incurred in connection with such audit.

     4. Deposit. Upon execution of this Lease, Tenant shall pay to Landlord the sum of
$36,431.75 (the “Security Deposit”), which sum shall be held by Landlord, without
obligation for interest, as security for the performance of Tenant’s covenants and obligations
under this Lease, it being expressly understood and agreed that the Security Deposit is not an
advance rental deposit or a measure of Landlord’s damages in case of Tenant’s default. Upon the
occurrence of any “Event of Default,” as herein defined, by Tenant beyond any applicable
cure period, Landlord may, from time to time, without prejudice to any other remedy provided herein
or provided by law, use the Security Deposit to make good any arrears of Rent and any other damage,
injury, expense, or liability caused by the event of default; and Tenant shall pay to Landlord on
demand the amount so applied in order to restore the Security Deposit to its original amount. If
no Event of Default has occurred and is continuing, Landlord will refund to Tenant any remaining
balance of the Security Deposit within forty-five (45) days after the expiration of the Term.
Notwithstanding anything contained in this Lease to the contrary, all amounts payable by Tenant to
or on behalf of Landlord under this Lease, whether or not expressly denominated as Rent, shall
constitute Rent for the purposes of this Lease and for purposes of section 502(b)(6) (or comparable
provision of any future bankruptcy law) of the Federal Bankruptcy Code, 11 U.S.C. Sections 101 et
seq. (the “Bankruptcy Code”).

     5. Disclaimer of Warranties. By execution of this Lease, Tenant acknowledges and
agrees that except as expressly set forth in this Lease, neither Landlord nor any officer, partner,
agent, employee, or representative of Landlord makes or has made any warranties or representations
of any kind or character, express or implied, with respect to the Premises, the Building or the
Project, or any portion thereof, its physical condition, income to be derived therefrom, or
expenses to be incurred with respect thereto, its fitness or suitability for any particular use, or
any other matter or thing relating to or affecting the same. There are no oral agreements,
warranties, or representations collateral to or affecting the Premises, the Building or the
Project, or any portion thereof, except as may be otherwise expressly set forth in this Lease.
Landlord and Tenant each hereby agrees that the Premises are leased in their AS IS, WHERE IS
condition with any and all latent or patent defects. Tenant, by execution of this Lease, expressly
agrees that Landlord has not made and does not make any warranties with respect to the Premises
upon which an action under the Texas Deceptive Trade Practices Act could be based.

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	4
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

     6. Use. The Premises shall be used, to the extent permitted by applicable Law, only
for general office purposes and to the extent applicable, for receiving, storing, shipping and
selling (other than retail) products, materials and merchandise manufactured, made and/or
distributed by Tenant and for such other lawful purposes as may be incidental thereto (the
“Permitted Use”). Tenant shall continuously occupy and use the Premises only for the
Permitted Use and shall comply with all Laws relating to this Lease and/or the use, condition,
access to, and occupancy of the Premises or any portion of the Project and will not commit waste,
overload the Building’s Structure or the Building’s Systems or subject the Premises to use that
would damage the Premises. As used herein, the term “Building’s Structure” means the
Building’s exterior walls, roof, footings, foundations, structural portions of load-bearing walls,
structural floors and subfloors, and structural columns and beams; “Building’s Systems”
means the Building’s life-safety, plumbing, electrical and mechanical systems. Notwithstanding
anything in this Lease to the contrary, as between Landlord and Tenant, (a) after the Commencement
Date, Tenant shall bear the risk of complying with Title III of the Americans With Disabilities Act
of 1990, any state laws governing handicapped access or architectural barriers, and all rules,
regulations, and guidelines promulgated under such laws, as amended from time to time (the
“Disabilities Acts”) in the Premises, and (b) Landlord shall bear the risk of complying
with the Disabilities Acts in the common areas of the Building, other than compliance that is
necessitated by the use of the Premises for other than the Permitted Use or as a result of any
alterations or additions, including but not limited to any initial tenant improvement work, made by
or on behalf of Tenant, any assignee claiming by, through or under Tenant, any subtenant claiming
by, through or under Tenant; and any of their respective agents, contractors, employees, licensees,
guests and invitees (“Tenant Part[ies]”) (which risk and responsibility shall be borne by
Tenant). The Premises shall not be used for any use which is disreputable, creates extraordinary
fire hazards, or results in an increased rate of insurance on the Building, or for the storage of
any Hazardous Materials (except as provided in Section 17 hereof). Tenant shall not install within
the Premises nor use in the Premises any equipment or fixtures which might be reasonably expected
due to excess weight, vibration or any other characteristic, to damage the Premises or the
Building. Outside storage is prohibited without Landlord’s prior written consent. If, because of
a Tenant Party’s acts or because Tenant vacates the Premises, the rate of insurance on the Building
or its contents increases, then such acts shall be an Event of Default, Tenant shall pay to
Landlord the amount of such increase on demand, and acceptance of such payment shall not waive any
of Landlord’s other rights. Tenant shall conduct its business and control each other Tenant Party
so as not to create any nuisance (including but not limited to emission of odors, fumes or excess
noise) or unreasonably interfere with other tenants or Landlord in its management of the Building.
Notwithstanding anything in this Lease to the contrary, Landlord acknowledges that Tenant’s
Permitted Use includes the production and distribution of lockers and other incidental items, and
Landlord agrees that, as of the Commencement Date of this Lease, such use does not create a
nuisance, create an extraordinary fire hazard, or increase the rate of insurance on the Building.

     7. Landlord’s Maintenance Obligations. This Lease is intended to be a net lease;
accordingly, Landlord’s maintenance obligations (at its sole cost and expense) are limited to the
replacement of the Building’s Structure. Landlord shall not be responsible for (a) any such work
until Tenant notifies Landlord of the need therefor in writing or (b) alterations to the Building’s
Structure required by applicable Law because of Tenant’s use of the Premises (which alterations
shall be made by Tenant at its sole cost and expense). The Building’s Structure does not include
windows, glass or plate glass, doors or overhead doors, special fronts, or office entries, dock
bumpers, dock plates or levelers, loading areas and docks, and loading dock equipment, all of which
shall be maintained by Tenant, unless such damage is solely caused by latent defects of the
Building’s Structure or the gross negligence or willful misconduct of Landlord or Landlord’s
agents. Landlord’s liability for any defects, repairs, replacement or maintenance for which
Landlord is specifically responsible for under this Lease shall be limited to the cost of
performing the work. Additionally, Landlord shall maintain automatic fire sprinkler system, the
parking areas, and other common areas of the Building, including driveways, alleys, landscape and
grounds surrounding the Premises and utility lines in a good condition, consistent with the
operation of a bulk warehouse/industrial or service center facility, including maintenance, repair,
and replacement of the exterior of the Building (including but not limited to painting),
landscaping, sprinkler systems, and any items normally associated with the foregoing. All costs in
performing the work described in the foregoing sentence shall be included in Operating Costs.
Tenant shall promptly notify Landlord in writing of any work required to be performed under this
Section 7, and Landlord shall not be responsible for performing such work until Tenant delivers to
Landlord such notice. Notwithstanding anything to the contrary contained herein, Landlord shall,
in its sole and absolute discretion, determine the appropriate remedial action required of it to
satisfy its maintenance obligations hereunder (e.g., Landlord shall, in its sole and absolute
discretion, determine whether, and to the extent, repairs or replacements are the appropriate
remedial action). Notwithstanding anything in this Section 7 to the contrary, if Landlord fails to
make any repairs or to perform any maintenance required of Landlord hereunder to the roof of the
building over the Premises, and (i) such failure shall persist for thirty (30) days after written
notice of the need for such repairs or maintenance is given to Landlord, and (ii) unless Landlord
has commenced such repairs or maintenance during such period and is

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	5
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

diligently pursuing the same, and (iii) such failure creates a risk of bodily injury or
property damage, then Tenant may (but shall not be required to) following a second notice (which
notice shall have a heading in at least 12-point type, bold and all caps “FAILURE TO RESPOND SHALL
RESULT IN TENANT EXERCISING SELF-HELP RIGHTS”) and Landlord’s failure to commence repairs within
five (5) business days after receipt of such second notice, cause Landlord’s roofing contractor to
perform such repairs or maintenance in accordance with the provisions of this Lease governing
Tenant’s repairs and alterations and Landlord shall reimburse Tenant for all reasonable costs and
expenses therefor within thirty (30) days after presentation of appropriate invoices and back-up
documentation; provided, however, that the self-help rights of Tenant set forth in this Section 7
shall only apply to any entity or individual who succeeds to the rights of BV DFWA I, LP in and to
this Lease and shall in no way be deemed to apply to BV DFWA I, LP or its affiliates.

     8. Insurance and Taxes.

          8.1. Subject to Tenant’s obligation to pay to Landlord Tenant’s Share of the Reimbursable
Expenses, Landlord covenants and agrees to maintain standard fire and extended coverage insurance
covering the Building (exclusive of any of Tenant’s fixtures, furnishings, and equipment attached
thereto or located thereon) in an amount not less than the replacement cost thereof.

          8.2. Subject to Tenant’s obligation to pay to Landlord Tenant’s Share of the Reimbursable
Expenses, Landlord agrees to pay before they become delinquent all Taxes; provided, however,
Landlord may (in its own name or in the name of both Landlord and Tenant as Landlord may deem
appropriate) dispute and contest the same, and in such case such disputed item need not be paid
until finally adjudged to be valid and any right to appeal has lapsed. At the conclusion of such
contest, Landlord shall pay the items contested to the extent that they are held valid, together
with all items, court costs, interest, and penalties relating thereto. If the Taxes levied against
the Premises are increased as a result of any alterations, additions, or improvements made by
Tenant or by Landlord at the request of Tenant, Tenant shall pay to Landlord upon demand, as
Additional Rent, the amount of the increase and continue to pay the increase during the Term.

     9. Improvements; Alterations; Tenant’s Maintenance and Repair Obligations.

          9.1. Improvements; Alterations; Signs. Improvements to the Premises shall be
installed at Tenant’s expense only in accordance with plans and specifications which have been
previously submitted to and approved in writing by Landlord. Landlord shall not unreasonably
withhold, condition or delay such approval. Tenant shall not paint or install lighting or
decorations, signs, window or door lettering, or advertising media of any type visible from the
exterior of the Premises without the prior written consent of Landlord, which consent shall not be
unreasonably withheld, conditioned, or delayed. Tenant shall have no right to install signs upon
the exterior of the Building or elsewhere at the Project except as approved in writing by Landlord
in its reasonable discretion. All signs must be constructed and affixed in compliance with Laws.
All alterations, additions, and improvements shall be constructed, maintained, and used by Tenant,
at its risk and expense, in accordance with all Laws; Landlord’s consent to or approval of any
alterations, additions or improvements (or the plans therefor) shall not constitute a
representation or warranty by Landlord, nor Landlord’s acceptance, that the same comply with sound
architectural and/or engineering practices or with all applicable Laws, and Tenant shall be solely
responsible for ensuring all such compliance. Notwithstanding anything herein to the contrary,
Tenant shall be permitted to make additions, alterations and improvements to the Premises without
Landlord’s consent provided that the cost of such additions, alterations and improvements do not
exceed $25,000 and shall not affect or alter the structural integrity of the Premises.

          9.2. Repairs; Maintenance. Tenant shall maintain the Premises in a clean, safe, and
operable condition, and shall not permit or allow to remain any waste or damage to any portion of
the Premises. Additionally, Tenant, at its sole expense, shall repair, replace and maintain in
good condition and in accordance with all Laws and the equipment manufacturer’s suggested service
programs, all portions of the Premises, Tenant’s Off-Premises Equipment and all areas, improvements
and systems exclusively serving the Premises including but not limited to loading docks, sump
pumps, dock wells, dock equipment and loading areas, dock doors, dock seals, overhead doors, dock
levelers and similar leveling equipment, plumbing, water, and sewer lines up to points of common
connection within the Premises, entries, doors, ceilings, windows, interior walls, and the interior
side of demising walls, and heating, ventilation and air conditioning systems, and other building
and mechanical systems exclusively serving the Premises. Such repair and replacements include
capital expenditures and repairs whose benefit may extend beyond the Term. The term “Tenant’s
Off-Premises Equipment” means any of Tenant’s equipment or other property that may be located
on or about the Project (other than inside the

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	6
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

Premises). Landlord may perform Tenant’s maintenance obligations at Tenant’s cost. Tenant
shall repair or replace, subject to Landlord’s direction and supervision, any damage to the
Building caused by a Tenant Party. If Tenant fails to make such repairs or replacements within 30
days after the occurrence of such damage, then Landlord may make the same at Tenant’s cost. If any
such damage occurs outside of the Premises, then Landlord may elect to repair such damage at
Tenant’s expense, rather than having Tenant repair such damage. The cost of all maintenance,
repair or replacement work performed by Landlord under this Section 9 shall be paid by Tenant to
Landlord within 30 days after Landlord has invoiced Tenant therefor. Notwithstanding anything to
the contrary contained in this Lease, Landlord shall deliver the heating, ventilation and air
conditioning systems that serve the Premises in good working order and condition as of the
Commencement Date, and shall warranty such items for the first twelve (12) months of the Term;
provided, however, Tenant’s sole remedy for any breach of the above warranty shall be that
Landlord, for the first twelve (12) months of the Term only, at its sole cost and expense, will
make all necessary repairs, replacements, and corrections of any nature or description to such
systems without limitation unless said repairs, replacements or corrections are due to Tenant’s
failure to cause routine maintenance to be performed thereon as required in this Section 9.2.
During the 13th through 36th months of the Term, Tenant shall repair the
heating, ventilation and air conditioning units serving the Premises (“HVAC”) to the extent
such maintenance and repair costs do not exceed $1,000.00 per unit per year at any one time. Any
repairs required for the HVAC in excess of $1,000.00 per unit per year at any one time during said
period shall be the responsibility of Landlord, unless such repairs are directly attributable to
the negligence or misconduct of Tenant or if Tenant fails to maintain a service contract on the
HVAC units. Landlord shall only be responsible for payment above said $1,000.00 per unit per year
cap. During the period from the 37th month through the end of the Term, Tenant shall be
solely responsible for the HVAC and Landlord shall have no obligation during said period.
Landlord’s obligation with regard to this Section 9.2 shall become null and void as it pertains to
any replacement unit during the Term.

          9.3. Performance of Work. All work described in this Section 9 shall be performed
only by Landlord or by contractors and subcontractors approved in writing by Landlord, which shall
not be unreasonably withheld, conditioned, or delayed. Tenant shall cause all contractors and
subcontractors to procure and maintain insurance coverage naming Landlord, Landlord’s property
management company and Landlord’s asset management company as additional insureds against such
risks, in such amounts, and with such companies as Landlord may reasonably require. Tenant shall
provide Landlord with the identities, mailing addresses and telephone numbers of all persons
performing work or supplying materials prior to beginning such construction and Landlord may post
on and about the Premises notices of non-responsibility pursuant to applicable Laws. All such work
shall be performed in accordance with all Laws and in a good and workmanlike manner so as not to
damage the Building (including but not limited to the Premises, the Building’s Structure and the
Building’s Systems). All such work which may affect the Building’s Structure or the Building’s
Systems must be approved by the Building’s engineer of record, if any, at Tenant’s expense and, at
Landlord’s election, must be performed by Landlord’s usual contractor for such work. All work
affecting the roof of the Building must be performed by Landlord’s roofing contractor, and no such
work will be permitted if it would void or reduce the warranty on the roof; provided, however, that
Landlord acknowledges that Tenant shall have the right to install a powder coating line in the
Premises that will require access to natural gas and roof penetration(s).

          9.4. Mechanic’s Liens. All work performed, materials furnished, or obligations
incurred by or at the request of a Tenant Party shall be deemed authorized and ordered by Tenant
only, and Tenant shall not permit any mechanic’s liens to be filed against the Premises or the
Project in connection therewith. Upon completion of any such work, Tenant shall deliver to
Landlord final lien waivers from all contractors, subcontractors and materialmen who performed such
work. If such a lien is filed, then Tenant shall, within ten days after Landlord has delivered
notice of the filing thereof to Tenant (or such earlier time period as may be necessary to prevent
the forfeiture of the Premises, the Project or any interest of Landlord therein or the imposition
of a civil or criminal fine with respect thereto), either (1) pay the amount of the lien and cause
the lien to be released of record, or (2) diligently contest such lien and deliver to Landlord a
bond or other security reasonably satisfactory to Landlord. If Tenant fails to timely take either
such action, then Landlord may pay the lien claim, and any amounts so paid, including but not
limited to expenses and interest, shall be paid by Tenant to Landlord within ten days after
Landlord has invoiced Tenant therefor. Landlord and Tenant acknowledge and agree that their
relationship is and shall be solely that of “landlord-tenant” (thereby excluding a relationship of
“owner-contractor,” “owner-agent” or other similar relationships). Accordingly, all materialmen,
contractors, artisans, mechanics, laborers and any other persons now or hereafter contracting with
Tenant, any contractor or subcontractor of Tenant or any other Tenant Party for the furnishing of
any labor, services, materials, supplies or equipment with respect to any portion of the Premises,
at any time from the date hereof until the end of the Term, are hereby charged with notice that
they look exclusively to Tenant to obtain payment for same. Nothing herein shall be deemed a
consent by Landlord to any liens being placed upon the Premises, the Project or

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	7
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

Landlord’s interest therein due to any work performed by or for Tenant or deemed to give any
contractor or subcontractor or materialman any right or interest in any funds held by Landlord to
reimburse Tenant for any portion of the cost of such work. Tenant shall defend, indemnify and hold
harmless Landlord and its agents and representatives from and against all claims, demands, causes
of action, suits, judgments, damages and expenses (including but not limited to attorneys’ fees) in
any way arising from or relating to the failure by any Tenant Party to pay for any work performed,
materials furnished, or obligations incurred by or at the request of a Tenant Party. This
indemnity provision shall survive termination or expiration of this Lease.

          9.5. Janitorial Services. Tenant, at its sole expense, shall provide its own
janitorial services to the Premises and shall maintain the Premises in a clean and safe condition.
Tenant shall procure adequate dumpsters and/or other trash and garbage receptacles for the Premises
and shall store all trash and garbage within such receptacles in the area designated from time to
time by Landlord and shall, at its sole expense, arrange for the regular pickup of such trash and
garbage at times, and pursuant to reasonable regulations, established by Landlord from time to
time.

     10. Inspection. Landlord and Landlord’s agents and representatives shall have the
right to enter and inspect the Premises upon reasonable notice and during reasonable business
hours, other than in the case of an emergency when no notice shall be required, for the purpose of
(i) ascertaining the condition of the Premises, (ii) in order to make such repairs as may be
required to be made by Landlord under the terms of this Lease and (iii) for the purpose of showing
the Premises and the Building to prospective purchasers. During the period that is six (6) months
prior to the end of the Term hereof, Landlord and Landlord’s agents and representatives shall have
the right to enter the Premises at any time upon reasonable notice and during reasonable business
hours for the purpose of showing the Premises to prospective tenants and shall have the right to
erect on the Premises a sign indicating that the Premises are for sale or lease.

     11. Utilities. Landlord agrees to provide such water, electricity, telephone, and
other utility service connections into the Premises as may be presently in place. Tenant shall pay
all charges incurred for any utility services used on or from the Premises and any maintenance
charges for utilities, shall be responsible for any costs associated in any manner with any
additional utility connections to the Premises which Tenant may require, and shall furnish all
electric light bulbs and tubes. Such payments shall be made directly to the supplier of any
utility separately metered (or submetered) to the Premises, or to Landlord if any such utilities
are not separately submetered or metered. Landlord shall calculate the cost of Tenant’s portion of
any such utilities on such equitable basis as may be determined by Landlord with respect to any
such utilities. Tenant shall pay to Landlord within 30 days after receipt of an invoice therefor,
the cost of such service, based on rates charged by the utility company furnishing such service,
including but not limited to all fuel adjustment charges, demand charges and taxes. Unless
otherwise required by law, Landlord is the party entitled to designate non-electric utility and
telecommunication service providers to the Building. Landlord shall in no event be liable for any
interruption or failure of utility or telecommunication services on the Premises, except if such
failure or interruption is caused by the gross negligence or willful misconduct of Landlord or its
agents.

     12. Assignment and Subletting. Tenant shall not, without the prior written consent of
Landlord, (a) assign, transfer, or encumber this Lease or any estate or interest herein, whether
directly or by operation of law, (b) permit any other entity to become Tenant hereunder by merger,
consolidation, or other reorganization, (c) if Tenant is an entity other than a corporation whose
stock is publicly traded, permit the transfer of an ownership interest in Tenant so as to result in
a change in the current control of Tenant, (d) sublet any portion of the Premises, (e) grant any
license, concession, or other right of occupancy of any portion of the Premises, or (f) permit the
use of the Premises by any parties other than Tenant (any of the events listed in Section 12(a)
through 12(f) being a “Transfer”). Landlord agrees that it will not unreasonably withhold,
condition or delay such consent; however, in determining whether or not to grant its consent,
Landlord shall be entitled to take into consideration factors such as Landlord’s desired tenant
mix, the reputation and net worth of the proposed transferee, the then current market conditions,
and the compliance of the proposed transferee with the regulations of the Office of Foreign Asset
Control (“OFAC”) of the Department of the Treasury (including but not limited to those
named on OFAC’s Specially Designated Nationals and Blocked Persons List) and any statute, executive
order (including but not limited to the September 24, 2001, Executive Order Blocking Property and
Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support Terrorism), or
other governmental action relating thereto. Tenant shall provide Landlord with a written
description of all terms and conditions of the proposed Transfer, copies of the proposed
documentation, and the following information about the proposed transferee: name and address of the
proposed transferee and any entities and persons who own, control or direct the proposed
transferee; reasonably satisfactory information about its business and business history; its
proposed use of the Premises; banking, financial, and other credit information; and general
references

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
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sufficient to enable Landlord to determine the proposed transferee’s creditworthiness and
character. Tenant shall reimburse Landlord immediately upon request for its reasonable attorneys’
fees incurred in connection with considering any request for consent to a Transfer. No Transfer
shall release Tenant from its obligations under this Lease, but rather Tenant and its transferee
shall be jointly and severally liable therefor. Landlord’s consent to any Transfer shall not waive
Landlord’s rights as to any subsequent Transfers. Tenant shall pay to Landlord, immediately upon
receipt thereof, the excess of (1) all compensation received by Tenant for a Transfer less the
costs reasonably incurred by Tenant with unaffiliated third parties (i.e., brokerage commissions
and tenant finish work) in connection with such Transfer (such costs shall be amortized on a
straight-line basis over the term of the Transfer in question) over (2) the Rent allocable to the
portion of the Premises covered thereby. Notwithstanding the foregoing, however, Landlord
acknowledges and agrees that, without the consent of Landlord, Tenant may assign or sublease its
interest under this Lease to (i) an entity controlled by, controlling, or under common control with
Tenant or (ii) an entity acquiring or succeeding to substantially all of the business of Tenant by
merger, spin-off, reorganization, consolidation, acquisition or otherwise (provided any such
successor entity shall have a net worth equal to or greater than the net worth of Tenant at the
time of the date of execution of this Lease or at the time of such assignment, whichever is
greater)(all of the foregoing, a “Permitted Transfer”), subject to the following conditions
precedent: (a) Tenant shall not be in default under this Lease beyond any applicable notice and
cure period provided for in this Lease; (b) a fully executed copy of an assignment or sublease,
including the assumption of this Lease by the assignee or acceptance of the sublease by sublessee,
in form reasonably acceptable to Landlord, and such other information regarding the assignment or
sublease as Landlord may reasonably request, shall have been delivered to Landlord; (c) the
Premises shall continue to be operated solely for the use specified in Section 6 of this Lease or
other use acceptable to Landlord in its sole discretion; (d) Tenant shall pay all costs reasonably
incurred by Landlord in connection with such assignment or subletting, including without
limitation, reasonably attorneys’ fees; and (e) Tenant acknowledges (and, at Landlord’s request, at
the time of such assignment or subletting shall confirm) that in each instance Tenant shall remain
liable for performance of the terms and conditions of this Lease despite such assignment or
subletting.

     13. Fire and Casualty Damage.

          13.1. If the Premises should be damaged or destroyed by fire, tornado, or other casualty,
Tenant shall give immediate written notice thereof to Landlord.

          13.2. If the Premises or the Building should be totally destroyed by fire, tornado, or other
casualty, or if either should be so damaged that rebuilding or repairs cannot be completed within
200 days after the date upon which Landlord is notified by Tenant of such damage, this Lease shall
terminate and the Rent shall be abated during the unexpired portion of this Lease, effective upon
the date of the occurrence of such damage.

          13.3. If the Premises or the Building should be damaged by fire, tornado, or other casualty,
but only to such extent that rebuilding or repairs can be completed within 200 days after the date
upon which Landlord is notified by Tenant of such damage, this Lease shall not terminate, but
Landlord shall, at its sole cost and expense, proceed with reasonable diligence to rebuild and
repair such Building to substantially the condition in which it existed prior to such damage,
except that (i) Landlord shall not be required to so rebuild or repair if less than twelve (12)
months remain in the Term hereof after the expiration of such 200-day period, (ii) Landlord shall
not be required to rebuild, repair, or replace any part of the partitions, fixtures, and other
improvements which may have been placed on the Premises by Tenant, and (iii) so long as Landlord
has complied with the provisions hereof relating to insurance coverage, Landlord shall not be
obligated to expend any funds in excess of available insurance proceeds attributable to such damage
in rebuilding the Premises. If the Premises are untenantable in whole or in part following such
damage, the Rent payable hereunder during the period the Premises are untenantable shall be reduced
to such extent as may be fair and reasonable under all of the circumstances. In the event that
Landlord should fail to complete such repairs and rebuilding within 200 days after the date upon
which Landlord is notified by Tenant of such damage, Tenant may, at its option, terminate this
Lease by delivering written notice of termination to Landlord within thirty (30) days after the
expiration of such 200-day period, as Tenant’s exclusive remedy, whereupon all rights and
obligations hereunder shall cease and terminate.

          13.4. Notwithstanding anything herein to the contrary, in the event the holder of any
indebtedness secured by a mortgage or deed of trust covering the Premises requires that the
insurance proceeds be applied to such indebtedness, then Landlord shall have the right to terminate
this Lease by delivering written notice of termination to Tenant, whereupon all rights and
obligations hereunder shall cease as of the date of the occurrence of such damage.

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	9
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

          13.5. Any insurance which may be carried by Landlord or Tenant against loss or damage to the
buildings and other improvements situated on the Premises shall be for the sole benefit of the
party carrying such insurance and under its sole control.

     14. Insurance; Waivers; Subrogation; Indemnity.

          14.1. Tenant’s Insurance. Effective as of the Commencement Date, and continuing
throughout the Term, Tenant shall maintain the following insurance policies: (1) commercial general
liability insurance in amounts of $2,000,000 per occurrence or, following the expiration of the
initial Term, such other amounts as Landlord may from time to time reasonably require, insuring
Tenant, Landlord, Landlord’s property management company, Landlord’s asset management company (if
any) and, if requested in writing by Landlord, Landlord’s agents, Landlord’s mortgagee and their
respective Affiliates against all liability for injury to or death of a person or persons or damage
to property arising from the use and occupancy of the Premises, (2) All Risk/Special Form Property
insurance covering the full value of Tenant’s property and improvements, and other property
(including property of others) in the Premises or the Project (including but not limited to
Tenant’s Off-Premises Equipment), (3) contractual liability insurance sufficient to cover Tenant’s
indemnity obligations hereunder (but only if such contractual liability insurance is not already
included in Tenant’s commercial general liability insurance policy), and (4) worker’s compensation
insurance, to the extent required by applicable Laws. The term “Affiliate” means any
person or entity which, directly or indirectly, through one or more intermediaries, controls is
controlled by, or is under common control with the party in question. Tenant’s insurance shall
provide primary coverage to Landlord when any policy issued to Landlord provides duplicate or
similar coverage, and in such circumstance Landlord’s policy will be excess over Tenant’s policy.
Tenant shall furnish to Landlord certificates of such insurance and such other evidence
satisfactory to Landlord of the maintenance of all insurance coverages required hereunder at least
ten days prior to the earlier of the Commencement Date or the date Tenant enters or occupies the
Premises, and at least 15 days prior to each renewal of said insurance, and Tenant shall obtain a
written obligation on the part of each insurance company to notify Landlord at least 30 days before
cancellation or a material change of any such insurance policies. All such insurance policies
shall be in form, and issued by companies with a Best’s rating of A-IX or better, reasonably
satisfactory to Landlord. If Tenant fails to comply with the foregoing insurance requirements or
to deliver to Landlord the certificates or evidence of coverage required herein, Landlord, in
addition to any other remedy available pursuant to this Lease or otherwise, may, but shall not be
obligated to, obtain such insurance and Tenant shall pay to Landlord on demand the premium costs
thereof, plus an administrative fee of 10% of such cost.

          14.2. No Subrogation; Waiver of Property Claims. Landlord and Tenant each waives any
claim it might have against the other for any damage to or theft, destruction, loss, or loss of use
of any property, to the extent the same is recovered under any insurance policy of the types
described in this Section 14 that covers the Project, the Premises, Landlord’s or Tenant’s
fixtures, personal property, leasehold improvements, or business, or is required to be insured
against under the terms hereof, regardless of whether the negligence of the other party caused such
Loss (defined below). Additionally, Tenant waives any claim it may have against Landlord for any
Loss to the extent such Loss is caused by a terrorist act. Each party shall cause its insurance
carrier to endorse all applicable policies waiving the carrier’s rights of recovery under
subrogation or otherwise against the other party. Notwithstanding any provision in this Lease to
the contrary, Landlord, its agents, employees and contractors shall not be liable to Tenant or to
any party claiming by, through or under Tenant for (and Tenant hereby releases Landlord and its
servants, agents, contractors, employees and invitees from any claim or responsibility for) any
damage to or destruction, loss, or loss of use, or theft of any property of any Tenant Party
located in or about the Project, caused by casualty, theft, fire, third parties or any other matter
or cause, regardless of whether the negligence of any party caused such loss in whole or in part.
Tenant acknowledges that Landlord shall not carry insurance on, and shall not be responsible for
damage to, any property of any Tenant Party located in or about the Project.

          14.3. Indemnity. Subject to Section 14.2, Tenant shall defend, indemnify, and hold
harmless Landlord (including without limitation all its affiliates, subsidiaries and associated
companies, successors and assigns) and its representatives and agents from and against all claims,
demands, liabilities, causes of action, suits, judgments, damages, and expenses (including but not
limited to reasonable attorneys’ fees) arising from any injury to or death of any person or the
damage to or theft, destruction, loss or loss of use of, any property or inconvenience (a
“Loss”) (1) occurring in or on the Project (other than within the Premises) to the extent
caused by the negligence or willful misconduct of any Tenant Party, (2) occurring in the Premises,
or (3) arising out of the use of the Premises or the installation, operation, maintenance, repair
or removal of any property of any Tenant Party located in or about the Project, including but not
limited to Tenant’s Off-Premises Equipment. It being agreed that clauses (2) and (3) of this
indemnity are intended to indemnify Landlord and

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
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	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

its agents against the consequences of their own negligence or fault, even when Landlord or
its agents are jointly, comparatively, contributively, or concurrently negligent with Tenant, and
even though any such claim, cause of action or suit is based upon or alleged to be based upon the
strict liability of Landlord or its agents; however, such indemnity shall not apply to the gross
negligence or willful misconduct of Landlord and its agents. The indemnities set forth in this
Lease shall survive termination or expiration of this Lease and shall not terminate or be waived,
diminished or affected in any manner by any abatement or apportionment of Rent under any provision
of this Lease. If any proceeding is filed for which indemnity is required hereunder, the
indemnifying party agrees, upon request therefor, to defend the indemnified party in such
proceeding at its sole cost utilizing counsel satisfactory to the indemnified party.

     15. Condemnation.

          15.1. If the whole or any substantial part of the Premises or the Building or Land upon which
the Premises are located should be taken for any public or quasi-public use under governmental law,
ordinance, or regulation, or by right of eminent domain, or conveyed in lieu thereof (a
“Taking”), this Lease shall terminate and the Rent shall be abated during the unexpired
portion of this Lease, effective as of the date of such Taking. For the purposes hereof
“substantial part of the Premises” shall be deemed to mean such portion of the Premises the loss of
which would, in Landlord’s reasonable opinion, materially lessen the usefulness of the Premises to
Tenant for the purposes for which Tenant is then using the Premises.

          15.2. If less than a substantial part of the Premises or the Building or Land upon which the
Premises becomes subject to a permanent Taking, this Lease shall not terminate, but the Rent
payable hereunder during the unexpired portion of this Lease shall be reduced on a reasonable basis
as to the portion of the Premises rendered untenantable by the Taking.

          15.3. In the event of any such Taking, Landlord shall receive the entire award or other
compensation for the Land, Building and other improvements taken; however, Tenant may separately
pursue a claim (provided it will not reduce Landlord’s award) against the condemnor for the value
of Tenant’s personal property which Tenant is entitled to remove under this Lease, moving costs,
loss of business and other claims it may have.

     16. Holding Over. Should Tenant, or any of its successors in interest, hold over the
Premises, or any part thereof, after the expiration of the Term, as the Term may be renewed or
extended, unless otherwise agreed in writing, such holding over shall constitute and be construed
as creating a month-to-month tenancy only, terminable at the will of Landlord, at a rental equal to
the then current rental for the first thirty (30) days after the expiration of the Term, and
thereafter the greater of (a) the then fair market rental value of the Premises or (b) the total
rental payable for the last month of the Term plus fifty percent (50%) of such amount, payable in
full on the first day on which Tenant holds over and on the first day of each month thereafter
during such holdover period. The inclusion of the preceding sentence shall not be construed as
Landlord’s permission for Tenant to hold over. In addition, Tenant shall protect, defend,
indemnify and hold Landlord harmless from all loss, costs (including but not limited to reasonable
attorney’s fees) and liability resulting from such holdover, including but not limited to any
claims made by any succeeding tenant founded upon Tenant’s failure to vacate the Premises upon
expiration of the Term, as it may be renewed or extended, and any lost profits to Landlord
resulting therefrom.

     17. Environmental Requirements.

          17.1. Prohibition against Hazardous Materials. Except for Hazardous Materials
contained in products used by Tenant in de minimis quantities for ordinary cleaning and office
purposes, and those materials expressly permitted in accordance with Exhibit H attached
hereto and made a part hereof (the “Permitted Materials”), Tenant shall not, nor shall it
permit or cause any party to, bring any Hazardous Materials upon the Premises or in the Project or
transport, store, use, generate, manufacture, dispose, or release any Hazardous Materials on or
from the Premises or the Project without Landlord’s prior written consent. Tenant, at its sole
cost and expense, shall operate its business in the Premises in strict compliance with all
Environmental Requirements and all requirements of this Lease. Tenant shall complete and certify
to disclosure statements as requested by Landlord from time to time relating to Tenant’s
transportation, storage, use, generation, manufacture, or release of Hazardous Materials on the
Premises or in the Project. Tenant shall promptly notify Landlord of any spill, release, discharge
or disposal of Hazardous Materials at, on, under or from the Premises or Property in violation of
any Environmental Requirements, and Tenant shall promptly deliver to Landlord a copy of any notice
of violation relating to the Premises or the Project of any Environmental Requirement.

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	11
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

          17.2. Environmental Requirements. The term “Environmental Requirements” means
all Laws regulating or relating to health, safety, or environmental conditions at, on, in, under,
or about the Premises or the Project or the environment or natural resources, including but not
limited to the following: the Comprehensive Environmental Response, Compensation and Liability
Act; the Resource Conservation and Recovery Act; the Clean Air Act; the Clean Water Act; the Toxic
Substances Control Act and all state and local counterparts thereto, and any common or civil law
obligations including but not limited to nuisance or trespass, and any other requirements of
Section 22 and Exhibit C of this Lease. The term “Hazardous Materials” means and
includes any substance, material, waste, pollutant, or contaminant that is or could be regulated
under any Environmental Requirement or that may adversely affect human health or the environment,
including but not limited to any solid or hazardous waste, hazardous substance, asbestos, petroleum
(including but not limited to crude oil or any fraction thereof, natural gas, synthetic gas,
polychlorinated biphenyls (PCBs), and radioactive material). For purposes of Environmental
Requirements, to the extent authorized by law, Tenant is and shall be deemed to be the responsible
party, including but not limited to the “owner” and “operator” of Tenant’s “facility” and the
“owner” of all Hazardous Materials brought on the Premises or the Project by a Tenant Party and the
wastes, by-products, or residues generated, resulting, or produced therefrom.

          17.3. Removal of Hazardous Materials. Tenant, at its sole cost and expense, shall
remove all Hazardous Materials stored, disposed of or otherwise released by a Tenant Party onto or
from the Premises or the Project, in a manner and to a level satisfactory to Landlord in its sole
discretion, but in no event to a level and in a manner less than that which complies with all
Environmental Requirements and does not limit any future uses of the Premises or the Project or
require the recording of any deed restriction or notice regarding the Premises or the Project.
Tenant shall perform such work at any time during the period of this Lease upon written request by
Landlord or, in the absence of a specific request by Landlord, before Tenant’s right to possession
of the Premises terminates or expires. If Tenant fails to perform such work within the time period
specified by Landlord or before Tenant’s right to possession terminates or expires (whichever is
earlier), Landlord may at its discretion, and without waiving any other remedy available under this
Lease (including without limitation Section 19.3) or at law or equity (including but not limited to
an action to compel Tenant to perform such work), perform such work at Tenant’s cost. Tenant shall
pay all costs incurred by Landlord in performing such work within ten days after Landlord’s request
therefor. Such work performed by Landlord is on behalf of Tenant and Tenant remains the owner,
generator, operator, transporter, and/or arranger of the Hazardous Materials for purposes of
Environmental Requirements. Tenant agrees not to enter into any agreement with any person,
including but not limited to any governmental authority, regarding the removal of Hazardous
Materials that have been disposed of or otherwise released onto or from the Premises or the Project
without the written approval of the Landlord.

          17.4. Indemnity.

               17.4.1. Tenant’s Indemnity. Tenant shall indemnify, defend, and hold Landlord
(including without limitation all its affiliates, subsidiaries and associated companies, successors
and assigns) harmless from and against any and all losses (including but not limited to diminution
in value of the Premises or the Project and loss of rental income from the Project), liabilities
(INCLUDING BUT NOT LIMITED TO ANY STRICT LIABILITY), claims, demands, actions, suits, damages
(including but not limited to punitive damages), expenses (including but not limited to
remediation, removal, repair, corrective action, or cleanup expenses), and costs (including but not
limited to actual attorneys’ fees, consultant fees or expert fees and removal or management of any
asbestos brought into the Premises or the Project or disturbed in breach of the requirements of
this Section 17, regardless of whether such removal or management is required by Law) which are
brought or recoverable against, or suffered or incurred by Landlord as a result of any release of
Hazardous Materials or any breach of the requirements under this Section 17 by a Tenant Party
regardless of whether Tenant had knowledge of such noncompliance. The obligations of Tenant under
this Section 17 shall survive any expiration or termination of this Lease.

          17.5. Inspections and Tests. Landlord shall have access to, and a right to perform
inspections and tests of, the Premises to determine Tenant’s compliance with Environmental
Requirements, its obligations under this Section 17, or the environmental condition of the
Premises. Access shall be granted to Landlord upon Landlord’s prior notice to Tenant and at such
times so as to minimize, so far as may be reasonable under the circumstances, any disturbance to
Tenant’s operations. Such inspections and tests shall be conducted at Landlord’s expense, unless
such inspections or tests reveal that Tenant has not complied with any Environmental Requirement,
in which case Tenant shall reimburse Landlord for the reasonable cost of such inspection and tests.
Landlord’s receipt of or satisfaction with any environmental assessment in no way waives any
rights that Landlord holds against Tenant. Tenant shall promptly notify Landlord of any
communication or report that Tenant makes to any governmental authority regarding any possible
violation of Environmental Requirements or

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	12
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

release or threat of release of any Hazardous Materials onto or from the Premises or the
Project. Tenant shall, within five days of receipt thereof, provide Landlord with a copy of any
documents or correspondence received from any governmental agency or other party relating to a
possible violation of Environmental Requirements or claim or liability associated with the release
or threat of release of any Hazardous Materials onto or from the Premises or the Project. Upon
request, Tenant shall provide Landlord with an inventory of Hazardous Materials located at, on or
in the Premises and copies of any Material Safety Data Sheet in Tenant’s possession required by any
Environmental Requirement or related to any Hazardous Material.

          17.6. Tenant’s Financial Assurance in the Event of a Breach. In addition to all other
rights and remedies available to Landlord under this Lease or otherwise, Landlord may, in the event
of a breach of the requirements of this Section 17 that is not cured within 30 days following
notice of such breach by Landlord, require Tenant to provide financial assurance (such as
insurance, escrow of funds or third party guarantee) in an amount and form satisfactory to
Landlord. The requirements of this Section 17 are in addition to and not in lieu of any other
provision in this Lease. Tenant’s obligations under this Section 17 shall also apply to the areas
where Tenant’s Off-Premises Equipment is located.

     18. Events of Default. Each of the following events shall be deemed to be an
“Event of Default” by Tenant under this Lease:

          18.1. The failure of Tenant to pay any installment of Rent payable under this Lease, or
failure to perform or discharge any other obligation or liability of Tenant under this Lease
requiring the payment of money, within ten (10) days after such payment is due.

          18.2. Tenant’s becoming insolvent or making a transfer in fraud of creditors or an assignment
for the benefit of creditors.

          18.3. The filing by Tenant of a petition under any section or chapter of the Bankruptcy Code
or under any present or future bankruptcy, insolvency, or similar law or statute of the United
States or any state thereof heretofore or hereinafter enacted; or the filing of such a petition
against Tenant involuntarily if such petition is not withdrawn or otherwise removed within sixty
(60) days of its being filed; or the adjudication of Tenant as bankrupt or insolvent in proceedings
filed against Tenant thereunder.

          18.4. The appointment of a receiver, trustee, or custodian for, or the taking possession by
such a receiver, trustee, or custodian of, all or substantially all of the assets of Tenant.

          18.5. Abandonment or vacation by Tenant of any substantial portion of the Premises, but only
if Tenant has stopped paying Rent, or is otherwise not in compliance with the terms of the Lease.

          18.6. Failure by Tenant to procure, maintain and deliver to Landlord evidence of the insurance
policies and coverages required by Section 14.1 of this Lease.

          18.7. Failure by Tenant to pay and release of record or diligently contest and bond around any
mechanic’s lien filed against the Premises or the Project for any work performed, materials
furnished or obligation incurred by or at the request of Tenant within the time and manner required
by Section 9.4.

          18.8. Failure by Tenant to comply with any term, provision, or covenant of this Lease or to
discharge any obligation or liability under this Lease not involving the payment of money, and the
failure to cure any such failure within thirty (30) days after written notice thereof to Tenant,
provided that if such default is not susceptible to cure within thirty (30) days, Tenant shall be
deemed to have cured such default if Tenant has commenced efforts to cure such default within such
thirty (30) day period and diligently pursues and completes such curative actions within a
reasonably prompt period of time thereafter.

     19. Remedies. Upon any Event of Default, Landlord may, in addition to all other
rights and remedies afforded Landlord hereunder or by law or equity, take any one or more of the
following actions:

					
	 	 	 	 	 
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          19.1. Termination of Lease. Terminate this Lease by giving Tenant written notice
thereof, in which event Tenant shall pay to Landlord the sum of (1) all Rent accrued hereunder
through the date of termination, (2) all amounts due under Section 19.3, and (3) an amount equal to
(A) the total Rent that Tenant would have been required to pay for the remainder of the Term
discounted to present value at a per annum rate equal to the “Prime Rate” as published on
the date this Lease is terminated by The Wall Street Journal, Southwest Edition, in its listing of
“Money Rates” minus one percent, minus (B) the then present fair rental value of the
Premises for such period, similarly discounted;

          19.2. Termination of Possession. Terminate Tenant’s right to possess the Premises
without terminating this Lease by giving written notice thereof to Tenant, in which event Tenant
shall pay to Landlord (1) all Rent and other amounts accrued hereunder to the date of termination
of possession, (2) all amounts due from time to time under Section 19.1, and (3) all Rent and other
net sums required hereunder to be paid by Tenant during the remainder of the Term, diminished by
any net sums thereafter received by Landlord through reletting the Premises during such period,
after deducting all costs incurred by Landlord in reletting the Premises. Landlord shall not be
obligated to relet the Premises before leasing other portions of the Building. Landlord shall not
be liable for, nor shall Tenant’s obligations hereunder be diminished because of, Landlord’s
failure to relet the Premises or to collect rent due for such reletting. Tenant shall not be
entitled to the excess of any consideration obtained by reletting over the Rent due hereunder.
Reentry by Landlord in the Premises shall not affect Tenant’s obligations hereunder for the
unexpired Term; rather, Landlord may, from time to time, bring an action against Tenant to collect
amounts due by Tenant, without the necessity of Landlord’s waiting until the expiration of the
Term. Unless Landlord delivers written notice to Tenant expressly stating that it has elected to
terminate this Lease, all actions taken by Landlord to dispossess or exclude Tenant from the
Premises shall be deemed to be taken under this Section 19.2. If Landlord elects to proceed under
this Section 19.2, it may at any time elect to terminate this Lease under Section 19.1;

          19.3. Perform Acts on Behalf of Tenant. Perform any act Tenant is obligated to
perform under the terms of this Lease (and enter upon the Premises in connection therewith if
necessary) in Tenant’s name and on Tenant’s behalf, without being liable for any claim for damages
therefor, and Tenant shall reimburse Landlord on demand for any expenses which Landlord may incur
in thus effecting compliance with Tenant’s obligations under this Lease (including, but not limited
to, collection costs and legal expenses), an administrative fee equal to 15% of such expenses, plus
interest on such expenses and fees at the Default Rate;

          19.4. Suspension of Services. Suspend any services required to be provided by
Landlord hereunder without being liable for any claim for damages therefor; or

          19.5. Alteration of Locks. Additionally, with or without notice, and to the extent
permitted by Law, Landlord may alter locks or other security devices at the Premises to deprive
Tenant of access thereto, and Landlord shall not be required to provide a new key or right of
access to Tenant.

     20. Payment by Tenant; Non-Waiver; Cumulative Remedies.

          20.1. Payment by Tenant. Upon any Event of Default, Tenant shall pay to Landlord all
costs incurred by Landlord (including but not limited to court costs and reasonable attorneys’ fees
and expenses) in (1) obtaining possession of the Premises, (2) removing and storing Tenant’s or any
other occupant’s property, (3) repairing or restoring the Premises to the condition in which Tenant
accepted the Premises, (4) if Tenant is dispossessed of the Premises and this Lease is not
terminated, reletting all or any part of the Premises (including brokerage commissions, cost of
tenant finish work, and other costs incidental to such reletting), (5) performing Tenant’s
obligations which Tenant failed to perform, and (6) enforcing, or advising Landlord of, its rights,
remedies, and recourses arising out of the default. To the full extent permitted by law, Landlord
and Tenant agree the federal and state courts of the state in which the Premises are located shall
have exclusive jurisdiction over any matter relating to or arising from this Lease and the parties’
rights and obligations under this Lease.

          20.2. No Waiver. Landlord’s acceptance of Rent following an Event of Default shall
not waive Landlord’s rights regarding such Event of Default. No waiver by Landlord of any
violation or breach of any of the terms contained herein shall waive Landlord’s rights regarding
any future violation of such term. Landlord’s acceptance of any partial payment of Rent shall not
waive Landlord’s rights with regard to the remaining portion of the Rent that is due, regardless of
any endorsement or other statement on any instrument delivered in payment of Rent or any writing
delivered in

					
	 	 	 	 	 
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connection therewith; accordingly, Landlord’s acceptance of a partial payment of Rent shall
not constitute an accord and satisfaction of the full amount of the Rent that is due.

          20.3. Cumulative Remedies. Any and all remedies set forth in this Lease: (1) shall
be in addition to any and all other remedies Landlord may have at law or in equity, (2) shall be
cumulative, and (3) may be pursued successively or concurrently as Landlord may elect. The
exercise of any remedy by Landlord shall not be deemed an election of remedies or preclude Landlord
from exercising any other remedies in the future. Additionally, Tenant shall defend, indemnify and
hold harmless Landlord, Landlord’s Mortgagee and their respective representatives and agents from
and against all claims, demands, liabilities, causes of action, suits, judgments, damages and
expenses (including but not limited to reasonable attorneys’ fees) arising from Tenant’s failure to
perform its obligations under this Lease.

     21. Mortgages/Ground Lease. Tenant accepts this Lease subject and subordinate to any
and all mortgages and/or deeds of trust now or at any time hereafter constituting a lien or charge
upon the Premises or the improvements situated thereon or any portion thereof; provided, however,
that upon Tenant’s written request, Landlord shall use commercially reasonable efforts to obtain
for the benefit of Tenant a non-disturbance agreement on Landlord’s Lender’s standard form.
Notwithstanding the foregoing, the subordination of this Lease to future mortgages shall be subject
to Tenant’s receipt of a non-disturbance agreement reasonably acceptable to Tenant which provides
in substance that so long as Tenant is not in default under the Lease past applicable cure periods,
its use and occupancy of the Premises shall not be disturbed notwithstanding any default of
Landlord under such mortgage. Subject to the foregoing, Tenant shall at any time hereafter on
demand execute any instruments, releases or other documents which may be required by any mortgagee
for the purpose of subjecting and subordinating this Lease to the lien of any such mortgage.
Tenant acknowledges that this Lease is subject and subordinate to the Lease Agreement dated May 27,
2004 (the “Ground Lease”). Tenant accepts this Lease subject to all of the terms and
conditions of the Ground Lease and covenants that it will do no act or thing which would constitute
a violation of the provisions of the Ground Lease attached hereto as Exhibit G with respect
to the Premises or the use thereof. The effectiveness of this Lease is conditioned upon Landlord’s
receipt of any required consents under the Ground Lease. Landlord and Tenant shall use
commercially reasonable efforts to obtain from the prime landlord under the Ground Lease and have
delivered to Tenant a non-disturbance agreement in the form of such prime landlord under the Ground
Lease. If Landlord fails to obtain any required consents under the Ground Lease, Landlord shall
refund to Tenant any prepaid rent and Security Deposit paid by Tenant to Landlord.

     22. Rules and Regulations. Tenant shall comply with the rules and regulations of the
Project which are attached hereto as Exhibit C, as amended from time to time by Landlord.
Tenant shall be responsible for the compliance with such rules and regulations by each Tenant
Party.

     23. Personal Property Taxes. Tenant shall be liable for all taxes levied or assessed
against personal property, furniture, or fixtures placed by Tenant in the Premises or in or on the
Building or Project.

     24. Notices. Each provision of this instrument or of any applicable governmental
laws, ordinances, regulations, and other requirements with reference to the sending, mailing, or
delivery of any notice or the making of any payment by Landlord to Tenant or with reference to the
sending, mailing, or delivery of any notice or the making of any payment by Tenant to Landlord
shall be deemed to be complied with when and if the following steps are taken:

          24.1. All Rent and other payments required to be made by Tenant to Landlord hereunder shall be
payable to Landlord at the address for payment of Rent hereinbelow set forth or at such other
address as Landlord may specify from time to time by written notice delivered in accordance
herewith.

          24.2. All payments required to be made by Landlord to Tenant hereunder shall be payable to
Tenant at the address hereinbelow set forth, or at such other address as Tenant may specify from
time to time by written notice delivered in accordance herewith.

          24.3. Any notice or document required or permitted to be delivered hereunder (collectively
called “Notices”) must be in writing to be effective. Any Notice, other than a payment,
which shall be deemed received only when actually received, that is addressed to the party for whom
it is intended at its address specified for the receipt of Notices (which is currently the address
set forth below) will be deemed to have been given or made, whether actually received or not, on
the second Business Day after the date it is deposited in the United States mail, postage prepaid,
certified, return receipt

					
	 	 	 	 	 
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requested. Any party may change its address for the receipt of Notices by Notice in
accordance with this Section 24. Notices given otherwise than in accordance with this Section 24,
including but not limited to Notices given by facsimile or e-mail, will be effective upon receipt.
The current addresses of the parties for Notices are as follows:

	 	 	 

	LANDLORD: Address for Payment of Rent:

	 	BV DFWA I, LP

c/o Bank of America

P.O. Box 840583

Dallas, Texas 75284-0583
	 
	 	 
	          Address for Notices and All
Other Correspondence:

	 	Industrial Properties Corporation

16479 Dallas Parkway, Suite 500

Addison, Texas 75001

Attention: Lee Halford, Jr.

Telephone: 972-447-2500

Telecopy: 972-447-2659
	 
	 	 
	TENANT:

	 	American Locker Group, Inc.

2701 Regent Boulevard, Suite 200

DFW Airport, Texas 75261

Attention: Paul Zaidins

Telephone: 817-722-0131

Telecopy: 817-722-0100
	 
	 	 
	ADDITIONAL NOTICE ADDRESS:

	 	Hallett & Perrin, P.C.

2001 Bryan Street, Suite 3900

Dallas, Texas 75093

Attention: Michael Franklin

Telephone: 214-922-4173

Telecopy: 214-922-4170

If and when included within the term “Landlord,” as used in this instrument, there are more
than one person, firm, or corporation, all shall jointly arrange among themselves for their joint
execution of a notice specifying an individual at a specific address for the receipt of notices and
payments to Landlord; if and when included within the term “Tenant,” as used in this
instrument, there are more than one person, firm, or corporation, all shall jointly arrange among
themselves for their joint execution of a notice specifying an individual at a specific address for
the receipt of notices and payments to Tenant. All parties included within the terms “Landlord”
and “Tenant,” respectively, shall be bound by notices given in accordance with the provisions of
this Section 24 to the same effect as if each had received such notice.

     25. Miscellaneous.

          25.1. Gender. Words of any gender used in this Lease shall be held and construed to
include any other gender, and words in the singular number shall be held to include the plural and
vice versa, unless the context otherwise requires.

          25.2. Successors and Assigns. The terms, provisions, covenants, and conditions
contained in this Lease shall apply to, inure to the benefit of, and be binding upon, the parties
hereto and upon their respective heirs, legal representatives, successors, and permitted assigns,
except as otherwise herein expressly provided.

          25.3. Captions. The captions are inserted in this Lease for convenience only and in
no way define, limit, or describe the scope or intent of this Lease, or any provision hereof, nor
in any way affect the interpretation of this Lease.

					
	 	 	 	 	 
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          25.4. Estoppel Certificates. Tenant agrees, within ten (10) days after request of
Landlord, to deliver to Landlord, or Landlord’s designee, an estoppel certificate stating that this
Lease is in full force and effect, the date to which Rent has been paid, the unexpired Term, and
such other matters pertaining to this Lease as may be reasonably requested by Landlord. Landlord
agrees, within thirty (30) days after request of Tenant, which request shall not occur more than
twice annually, to deliver to Tenant, or Tenant’s designee, an estoppel certificate on Landlord’s
form stating that this Lease is in full force and effect, the date to which Rent has been paid, and
the unexpired Term.

          25.5. Financial Statements. No more than once annually, within ten (10) business days
after written request from Landlord, Tenant shall deliver to Landlord such financial statements as
are reasonably required by Landlord to verify the net worth of Tenant, or any assignee, subtenant,
or guarantor of Tenant. In addition, Tenant shall deliver to any lender designated by Landlord any
financial statements required by the lender to facilitate the financing or refinancing of the
Building and Land. Tenant represents and warrants to Landlord that each financial statement is a
true, complete, and accurate statement as of the date of the statement. All financial statements
will be confidential and will be used only for the purposes set forth in this Lease.

          25.6. Written Modifications. This Lease may not be altered, changed, or amended
except by an instrument in writing executed by Landlord and Tenant.

          25.7. Entire Agreement. This instrument, including all Exhibits and Riders which are
attached hereto, constitutes the entire agreement between Landlord and Tenant. No prior written or
prior or contemporaneous oral statements, promises, or representations shall be binding.

          25.8. Severability. If any provision of this Lease shall ever be held to be invalid
or unenforceable, such invalidity or unenforceability shall not affect any other provisions of the
Lease, but such other provisions shall continue in full force and effect.

          25.9. Governing Law. This Lease shall be construed and enforced in accordance with
the laws of the state in which the Premises are located.

          25.10. Interpretation. The parties acknowledge that each party and its counsel has
reviewed and had the opportunity to negotiate revisions to this Lease, and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the drafting party shall
not be employed in the interpretation of this Lease or any amendments, annexes, or exhibits hereto.

          25.11. Time is of the Essence. It is expressly agreed by the parties hereto that time
is of the essence with respect to this Lease.

          25.12. Landlord’s Default. In the event of any act or omission by Landlord which
would give Tenant the right to damages from Landlord or the right to terminate this Lease by reason
of a constructive or actual eviction from all or part of the Premises or otherwise, Tenant shall
not sue for such damages or exercise any such right to terminate until (a) it shall have given
written notice of such act or omission to Landlord and provided that a non-disturbance agreement
has been executed by Landlord’s lender, to the holder(s) of the indebtedness or other obligations
secured by any mortgage or deed of trust affecting the Premises, and (b) thirty (30) days shall
have elapsed following the giving of such notice, and during which time Landlord and such holder(s)
or either of them, their agents, or employees, shall be entitled to enter upon the Premises and do
therein whatever may be necessary to remedy such act or omission.

          25.13. Landlord Transfer. Landlord may transfer any portion of the Project and any of
its rights under this Lease. If Landlord assigns its rights under this Lease, then Landlord shall
thereby be released from any further obligations hereunder arising after the date of transfer,
provided that the assignee assumes in writing Landlord’s obligations hereunder arising from and
after the transfer date.

          25.14. Landlord’s Liability. The liability of Landlord (and its partners,
shareholders or members) to Tenant (or any person or entity claiming by, through or under Tenant)
for any default by Landlord under the terms of this Lease or any matter relating to or arising out
of the occupancy or use of the Premises and/or other areas of the Building shall be limited to
Tenant’s actual direct, but not consequential, damages therefor and shall be recoverable only from
the interest of

					
	 	 	 	 	 
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Landlord in the Building, and Landlord (and its partners, shareholders or members) shall not
be personally liable for any deficiency. The provisions of this Section shall survive any
expiration or termination of this Lease. Additionally, Tenant hereby waives its statutory lien
under Section 91.004 of the Texas Property Code.

          25.15. Force Majeure. Other than for Tenant’s obligations under this Lease that can
be performed by the payment of money (e.g., payment of Rent and maintenance of insurance), whenever
a period of time is herein prescribed for action to be taken by either party hereto, such party
shall not be liable or responsible for, and there shall be excluded from the computation of any
such period of time, any delays due to strikes, riots, acts of God, shortages of labor or
materials, war, terrorist acts or activities, governmental laws, regulations, or restrictions, or
any other causes of any kind whatsoever which are beyond the control of such party.

          25.16. Brokerage. Neither Landlord nor Tenant has dealt with any broker or agent in
connection with the negotiation or execution of this Lease, other than NAI Robert Lynn Company
(“Landlord’s Broker”), whose commission shall be paid by Landlord pursuant to a separate
written agreement and Transwestern (“Tenant’s Broker”), whose commission shall be paid by
Landlord’s Broker pursuant to a separate written agreement. Tenant and Landlord shall each
indemnify the other against all costs, expenses, attorneys’ fees, liens and other liability for
commissions or other compensation claimed by any other broker or agent claiming the same by,
through, or under the indemnifying party.

          25.17. Waiver of Jury Trial. TO THE MAXIMUM EXTENT PERMITTED BY LAW, LANDLORD AND
TENANT EACH WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY LITIGATION OR TO HAVE A JURY PARTICIPATE IN
RESOLVING ANY DISPUTE ARISING OUT OF OR WITH RESPECT TO THIS LEASE OR ANY OTHER INSTRUMENT,
DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED
HERETO.

          25.18. Water or Mold Notification. To the extent Tenant or its agents or employees
discover any water leakage, water damage or mold in or about the Premises or Project, Tenant shall
promptly notify Landlord thereof in writing.

          25.19. Joint and Several Liability. If Tenant is comprised of more than one party,
each such party shall be jointly and severally liable for Tenant’s obligations under this Lease.
All unperformed obligations of Tenant hereunder not fully performed at the end of the Term shall
survive the end of the Term, including but not limited to payment obligations with respect to Rent
and all obligations concerning the condition and repair of the Premises.

          25.20. Telecommunications. Tenant and its telecommunications companies, including but
not limited to local exchange telecommunications companies and alternative access vendor services
companies, shall have no right of access to and within the Building, for the installation and
operation of telecommunications systems, including voice, video, data, Internet, and any other
services provided over wire, fiber optic, microwave, wireless, and any other transmission systems
(“Telecommunications Services”), for part or all of Tenant’s telecommunications from the
Building to any other location without Landlord’s prior written consent. All providers of
Telecommunications Services shall be required to comply with the rules and regulations of the
Building, applicable Laws and Landlord’s policies and practices for the Building. Tenant
acknowledges that Landlord shall not be required to provide or arrange for any Telecommunications
Services and that Landlord shall have no liability to any Tenant Party in connection with the
installation, operation or maintenance of Telecommunications Services or any equipment or
facilities relating thereto. Tenant, at its cost and for its own account, shall be solely
responsible for obtaining all Telecommunications Services.

          25.21. Confidentiality. Tenant acknowledges that the terms and conditions of this
Lease are to remain confidential for Landlord’s benefit, and may not be disclosed by Tenant to
anyone, by any manner or means, directly or indirectly, without Landlord’s prior written consent;
however, Tenant may disclose the terms and conditions of this Lease to its attorneys, accountants,
employees and existing or prospective financial partners provided same are advised by Tenant of the
confidential nature of such terms and conditions and agree to maintain the confidentiality thereof
(in each case, prior to disclosure) and Tenant may disclose the terms and conditions of this Lease
to the extent that such disclosure is required from a publicly-traded company by any governmental
authority, including but not limited to the SEC, or required by any applicable Laws. Tenant shall
be liable for any disclosures made in violation of this Section by Tenant or by any entity or
individual to whom the terms of and conditions of this Lease were disclosed or made available by
Tenant. The consent by Landlord to any disclosures shall not be deemed to be a waiver on the part
of Landlord of any prohibition against any future disclosure.

					
	 	 	 	 	 
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          25.22. Security Service. Tenant acknowledges and agrees that, while Landlord may (but
shall not be obligated to) patrol the Building, Landlord is not providing any security services
with respect to the Premises or Tenant’s Off-Premises Equipment and that Landlord shall not be
liable to Tenant for, and Tenant waives any claim against Landlord with respect to, any loss by
theft or any other damage suffered or incurred by Tenant in connection with any unauthorized entry
into the Premises or any area where Tenant’s Off-Premises Equipment is located or any other breach
of security with respect to the Premises or Tenant’s Off-Premises Equipment.

          25.23. Prohibited Persons and Transactions. Tenant represents and warrants to
Landlord that Tenant is currently in compliance with and shall at all times during the Term
(including any extension thereof) remain in compliance with the regulations of OFAC of the
Department of the Treasury (including but not limited to those named on OFAC’s Specially Designated
Nationals and Blocked Persons List) and any statute, executive order (including but not limited to
the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions with Persons
Who Commit, Threaten to Commit or Support Terrorism), or other governmental action relating
thereto.

          25.24. Determination of Charges. Landlord and Tenant agree that each provision of
this Lease for determining charges and amounts payable by Tenant (including but not limited to
provisions regarding Additional Rent and Tenant’s Proportionate Share of Taxes and Operating Costs)
is commercially reasonable and, as to each such charge or amount, constitutes a statement of the
amount of the charge or a method by which the charge is to be computed for purposes of Section
93.012 of the Texas Property Code.

          25.25. Quiet Enjoyment. Provided Tenant has performed all of its obligations
hereunder, Tenant shall peaceably and quietly hold and enjoy the Premises for the Term, without
hindrance from Landlord or any party claiming by, through, or under Landlord, but not otherwise,
subject to the terms and conditions of this Lease.

          25.26. Recording. Tenant shall not record this Lease or any memorandum of this Lease
without the prior written consent of Landlord, which consent may be withheld or denied in the sole
and absolute discretion of Landlord, and any recordation by Tenant shall be a material breach of
this Lease. Tenant grants to Landlord a power of attorney to execute and record a release
releasing any such recorded instrument of record that was recorded without the prior written
consent of Landlord.

          25.27. Subordination of Landlord’s Lien. Landlord shall be entitled to any available
statutory lien or security interest in any personal property or trade fixtures of Tenant located on
the Premises. Notwithstanding the foregoing, upon Tenant’s request, Landlord shall subordinate its
security interest and landlord’s lien to the security interest of Tenant’s supplier or
institutional financial source by executing and delivering Landlord’s then-current form of
Subordination of Landlord’s Lien.

     26. Surrender of Premises. No act by Landlord shall be deemed an acceptance of a
surrender of the Premises, and no agreement to accept a surrender of the Premises shall be valid
unless it is in writing and signed by Landlord. At the expiration or termination of this Lease,
Tenant shall deliver to Landlord the Premises with all improvements located therein in good repair
and condition, free of Hazardous Materials placed on the Premises during the Term, broom-clean
condition, reasonable wear and tear excepted, and shall deliver to Landlord all keys to the
Premises. Provided that Tenant has performed all of its obligations hereunder, Tenant may remove
all unattached trade fixtures, furniture, and personal property placed in the Premises or elsewhere
in the Building by Tenant (but Tenant may not remove any such item which was paid for, in whole or
in part, by Landlord or any wiring or cabling unless Landlord requires such removal).
Additionally, at Landlord’s option, Tenant shall remove such alterations, additions, improvements,
trade fixtures, personal property, equipment, wiring, conduits, cabling, and furniture (including
but not limited to Tenant’s Off-Premises Equipment) as Landlord may request together with all signs
affixed by Tenant to the exterior of the Building or elsewhere at the Project (as well as lettering
installed by Tenant on sign panels installed by Landlord); however, Tenant shall not be required to
remove any addition or improvement to the Premises or the Project if Landlord has specifically
agreed in writing that the improvement or addition in question need not be removed. Tenant shall
repair all damage caused by such removal. All items not so removed shall, at Landlord’s option, be
deemed to have been abandoned by Tenant and may be appropriated, sold, stored, destroyed, or
otherwise disposed of by Landlord without notice to Tenant and without any obligation to account
for such items. The provisions of this Section 26 shall survive the end of the Term.

					
	 	 	 	 	 
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     27. Parking. Tenant shall have the non-exclusive right, in common with other tenants
of the Building to use such parking spaces associated with the Building as are allocated to Tenant
by Landlord, which shall consist of a minimum of one hundred (100) parking spaces. Landlord shall
use its reasonable discretion in allocating parking spaces to the tenants of the Building, taking
into consideration all factors Landlord deems relevant, including but not limited to the density
and type (e.g., office or industrial) of use conducted by the tenants of the Building in their
respective premises. Landlord reserves the right to initiate steps to control the parking
utilization through gates, access cards, hang-tags or other means as appropriate. Initially,
Tenant shall have the non-exclusive right to use those vehicular parking spaces circled on
Exhibit E hereto. Parking spaces will be available to Tenant without charge during the
initial Term. Landlord shall not be responsible for enforcing Tenant’s parking rights against
third parties.

     28. List of Exhibits. All exhibits and attachments attached hereto are incorporated
herein by this reference.

Exhibit A — Outline of Premises

Exhibit B — Description of the Land

Exhibit C — Building Rules and Regulations

Exhibit D — Tenant Finish-Work: Work of Limited Scope

Exhibit E — Parking

Exhibit F — Option to Extend

Exhibit G — Ground Lease

Exhibit H — Permitted Materials

[SIGNATURE PAGE FOLLOWS]

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	20
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

     EXECUTED the 16th day of November, 2010.

	 	 	 	 	 	 	 	 	 

	LANDLORD:	 	BV DFWA I, LP,

a Texas limited partnership
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	CH REALTY III/DFE INDUSTRIAL HOLDINGS GP, L.L.C., a Delaware
limited liability company, in its capacity as general partner
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	CH REALTY INVESTORS III, L.P., a Delaware limited
partnership, in its capacity as sole member and manager
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	MF FUNDING, INC., a Delaware corporation, in its capacity as
general partner

	 	 	 	 	 	 	 

	 

	 	By:
	 	/s/ Lee Halford, Jr.
 

Lee Halford, Jr.
	 	 
	 

	 	 	 	Printed Name	 	 
	 

	 	Its:
	 	Vice President
 

Title
	 	 

	 	 	 	 	 	 	 

	TENANT:	 	AMERICAN LOCKER GROUP, INC.,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Paul M Zaidins
 

Paul M Zaidins
	 	 
	 

	 	 	 	Printed Name	 	 
	 

	 	Its:
	 	President
 

Title
	 	 

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	21
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

EXHIBIT A

PREMISES

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	22
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

EXHIBIT B

LAND

BEING a 23.103 acre tract of land situated in the Heirs of Joel Wilson Survey, Abstract No.
1555, the S.A. & M.G.R.R. Survey, Abstract No. 1439, the Singleton Thompson Survey, Abstract No.
1733, and the William Russell Survey, Abstract 1728, Dallas County, Texas, said tract being a
portion of that certain tract of land known as Dallas Fort Worth International Airport, comprised
in part by the following tracts of land: A 72.668 acre tract of land, known as Tract No. 1,
described in a Deed from Samuel Darnell Deroulac, Devisee Under the Will of Maymie Darnell Lammers
to the City of Dallas, as recorded in Volume 69098, Page 1727 of the Deed Records of Dallas
County, Texas, (DRDCT): A 25.33 acre tract of land, described in a Deed from Ed E. Sammons and
wife, Bonnie P. Sammons to the City of Dallas, as recorded in Volume 69060, Page 1955, DRDCT: A
40.96 acre tract of land, described in Deed from George Andrew Dimsdale, Individually and as
Trustee for the use and benefit of Todd A. Dimsdale, Steven P. Dimsdale, Amy Jo Dimsdale and Sam
W. Dimsdale under the terms of a Trust Agreement
dated January 6th, 1970, to the City of Dallas, as recorded in Volume 70063, Page 1133, DRDCT: a
8.08 acre tract
of land, described in a Deed from Bryan Thomas Snowden and wife, Margie Louise Snowden to the
City of Dallas, as recorded in Volume 69092, Page 1614 of DRDCT: A 5.162 acre tract, described in
a Deed from Glynn S. Butler and wife, M. Janice Butler to the City of Dallas, as recorded in
Volume 69153, Page 1879, DRDCT: said 23.103 tract of land being more particularly described as
follows:

BEGINNING
at a 5/8 inch iron rod capped “DFW Boundary” set (DFW Surface 88 Coordinate — Northing
1,029,727.6477, Easting 421,208.6371) for the Southeast corner of the herein described tract, said
corner being on the North right-of-way (ROW) line of Regent Boulevard a 120 foot ROW, and the same
being a point on a non-tangent curve to the left, from which the point of intersection of the
extended centerline of Trade Avenue and the Northerly right-of-way line of Regent Boulevard bears
South 56 degrees 28 minutes 31 seconds East a distance of 160.49 feet;

THENCE, Northwesterly, along and with the Northerly right-of-way line of said Regent Boulevard
and said curve to the left, having a radius of 2060.50 feet, a central angle of 09 degrees 27
minutes 47 seconds, a long chord that bears North 63 degrees 00 minutes 32 seconds West, 339.93
feet, an arc distance of 340.32 feet to a 5/8 inch iron rod capped “DFW Boundary” set (DFW
Surface 88 Coordinate — Northing 1,029,881.9269, Easting 420,905.7300) for point of tangency;

THENCE North 67 degrees 44 minutes 26 seconds West, continuing along and with the Northerly
right-of-way line of said Regent Boulevard, a distance of 1028.24 feet to a 5/8 inch iron rod set
(DFW Surface 88 Coordinate Northing 1,030,271.4244, Easting
419,954.1172) for the Southwest corner
of the herein described tract;

THENCE North 22 degrees 13 minutes 53 seconds East, leaving the Northerly right-of-way line of
said Regent Boulevard, a distance of 735.23 feet to a 5/8 inch iron rod capped “DFW Boundary” set
(DFW Surface 88 Coordinate — Northing 1,030,951.9977, Easting 420,232.2900) for the Northwest
corner of the herein described tract, the same being the Southerly R.O.W. line of a Railroad Drill
Tract 30 foot R.O.W. as described in a Resolution by Dallas/Fort Worth Regional Airport Board,
Resolution No. 79-031 dated 8th day April, 1981;

THENCE South 67 degrees 40 minutes 25 seconds East, along and with the said South right of way
line of said Drill Track, a distance of 1215.92 feet to a 5/8 inch iron rod capped “DFW Boundary”
set (DFW Surface 88 Coordinate -Northing 1,030,490.0895, Easting 421,357.0616) for the point of
curvature of a curve to the right;

THENCE Southeasterly, continuing along and with said Drill Track right of way, along and with said
curve to the right, having a radius of 748.94 feet, a central angle of 11 degrees 38 minutes 23 seconds, a
long chord that bears South 61 degrees 51 minutes 13 seconds East, 151.89 feet, an arc distance
of 152.15 feet to a 5/8 inch iron rod capped “DFW Boundary” set (DFW Surface 88 Coordinate
Northing 1,030,418.4409, Easting 421,490.9871) for Northeast corner of the herein described tract;

THENCE South 22 degrees 13 minutes 53 seconds West, a distance of 746.27 feet to the Point of
Beginning, Containing 23.103 acres of land, more or less.

23

 

EXHIBIT C

BUILDING RULES AND REGULATIONS

     1. The following rules and regulations shall apply to the Premises, the Building, the parking
areas associated therewith, and the appurtenances thereto:

     2. Sidewalks, doorways, vestibules, halls, stairways, loading dock areas and associated
overhead doors, and other similar areas (each, to the extent applicable to the Project) shall not
be obstructed by tenants or used by any tenant for purposes other than ingress and egress to and
from their respective leased premises and for going from one to another part of the Building.

     3. Plumbing (including but not limited to outside drains and sump pumps), fixtures and
appliances shall be used only for the purposes for which designed, and no sweepings, rubbish, rags
or other unsuitable material shall be thrown or deposited therein. Damage resulting to any such
fixtures or appliances from misuse by a tenant or its agents, employees or invitees, shall be paid
by such tenant.

     4. No signs, advertisements or notices shall be painted or affixed on or to any windows or
doors or other part of the Building visible from the exterior of the Premises without the prior
written consent of Landlord. Except as consented to in writing by Landlord or in accordance with
Tenant’s building standard improvements, no draperies, curtains, blinds, shades, screens or other
devices shall be hung at or used in connection with any window or exterior door or doors of the
Premises. No awning shall be permitted on any part of the Premises. Tenant shall not place
anything against or near glass partitions or doors, or windows which might appear unsightly from
outside the Premises.

     5. Landlord may prescribe weight limitations and determine the locations for safes and other
heavy equipment or items, which shall in all cases be placed in the Building so as to distribute
weight in a manner acceptable to Landlord which may include the use of such supporting devices as
Landlord may require. All damages to the Building caused by the installation or removal of any
property of a tenant, or done by a tenant’s property while in the Building, shall be repaired at
the expense of such tenant.

     6. Tenant shall not make or permit any vibration or improper, objectionable or unpleasant
noises or odors in the Building or otherwise interfere in any way with other tenants or persons
having business with them. Notwithstanding the foregoing, the regular noise and vibration
associated with the punch presses, turret punch presses and air compressor are permitted by
Landlord. Tenant shall not introduce, disturb or release asbestos or PCB’s into or from the
Premises.

     7. Tenant shall not keep in the Building any flammable or explosive fluid or substance.
Tenant shall not install or operate any steam or gas engine or boiler, or other mechanical
apparatus in the Premises without the prior written consent of Landlord. The use of oil, gas or
inflammable liquids for heating, lighting or any other purpose is expressly prohibited. Explosives
or other articles deemed extra hazardous shall not be brought into the Building. Notwithstanding
the foregoing, the natural gas fired dry/cure oven, wash line heater and parts cleaning tank are
permitted by Landlord so long as Tenant’s use of such items otherwise complies with the terms and
conditions of this Lease.

     8. Landlord will not be responsible for lost or stolen personal property, money or jewelry
from tenant’s leased premises or public or common areas regardless of whether such loss occurs when
the area is locked against entry or not.

     9. Tenant shall not conduct any activity on or about the Premises or Building which will draw
pickets, demonstrators, or the like.

     10. All vehicles are to be currently licensed, in good operating condition, parked for
business purposes having to do with Tenant’s business operated in the Premises, parked within
designated parking spaces, one vehicle to each space. No vehicle shall be parked as a “billboard”
vehicle in the parking lot. Any vehicle parked improperly may be towed away. Tenant, Tenant’s
agents, employees, vendors and customers who do not operate or park their vehicles as required
shall subject the vehicle to being towed at the expense of the owner or driver.

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	24
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

     11. No tenant may enter into phone rooms, electrical rooms, mechanical rooms, or other service
areas of the Building unless accompanied by Landlord or the Building manager.

     12. No birds or animals (other than seeing-eye dogs) shall be brought into or kept in, on or
about any tenant’s premises. No portion of any tenant’s premises may at any time be used or
occupied as sleeping or lodging quarters.

     13. Unless otherwise agreed in writing by Landlord, each tenant must contract for the removal
of trash and other debris from its premises and provide a dumpster or other suitable trash
receptacle adjacent to its premises for removal of trash; no trash or other debris may be left
outside any tenant’s receptacle.

     14. Tenant shall not permit storage outside the Premises or dumping of waste or refuse or
permit any harmful materials to be placed in any drainage system or sanitary system in or about the
Premises.

     15. Tenant shall not install or operate on the Premises any machinery or mechanical devices of
a nature not directly related to Tenant’s ordinary use of the Premises.

     16. Tenant will not permit any Tenant Party to bring onto the Project any handgun, firearm or
other weapons of any kind, illegal drugs or, unless expressly permitted by Landlord in writing,
alcoholic beverages.

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	25
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

EXHIBIT D

TENANT FINISH-WORK: WORK OF LIMITED SCOPE (NO PLANS)

(Landlord Performs the Work)

     1. Acceptance of Premises. Except as set forth in this Exhibit, Tenant accepts the
Premises in their “AS-IS” condition on the date that this Lease is entered into; provided, however,
that Landlord shall ensure that as of the Commencement Date, and for a period of thirty (30) days
thereafter, all systems, including electrical, plumbing, overhead doors, dock equipment, fire
protection sprinklers, exhaust fans, skylights, and windows are in good working condition, and the
walls, windows, skylights, exterior doors and roof are all weather tight or will be made so by
Landlord, at Landlord’s sole cost and expense, without offset against any allowance.

     2. Scope of Work. Landlord, at its sole cost and expense, shall perform the following
work in the Premises (the “Work”):

	 	X	 	 Repaint the existing painted walls in the Premises with Building-standard paint in
Tenant’s choice of color in Building-standard quantities.
	 
	 	X	 	 Install Building-standard carpet in the Premises in Tenant’s choice of color.
	 
	 	X	 	 Other (specify):

	 	•	 	Replace fifteen (15) interior office doors with Building standard units.
	 
	 	•	 	Provide and install four (4) CFM roof mounted ventilation fans.
	 
	 	•	 	Provide and install approximately 150 T-5 joist mounted warehouse lights.
	 
	 	•	 	Provide and install one (1) Rite-Hite, model HVLSC, 4-blade, 24’ diameter warehouse fan.
	 
	 	•	 	Provide and install two (2) 6’ X 8’ dock levelers; capacity 15,000 lbs., manually operated.

Within three business days after the date of this Lease, Tenant shall select all Building-standard
materials to be incorporated into the Work and give written notice of such selection to Landlord.

     3. Construction Allowance. Landlord shall provide to Tenant a construction allowance
not to exceed $11,000.00 (the “Construction Allowance”) to be applied toward additional
work in the Premises not covered in the Work above. The Construction Allowance shall not be
disbursed to Tenant in cash, but shall be applied by Landlord to the payment of the additional
work, if, as, and when the of the additional work is actually incurred and paid by Landlord. The
Construction Allowance must be used (that is, the Work must be fully complete and the Construction
Allowance disbursed) within six months following the date that Work commences or shall be deemed
forfeited with no further obligation by Landlord with respect thereto, time being of the essence
with respect thereto.

     4. Definitions. As used herein, a “Tenant Delay Day” means each day of delay
in the performance of the Work that occurs (a) because Tenant fails to timely select Landlord’s
standard finish-out materials to be incorporated into the Work (and notify Landlord thereof) or
fails to timely furnish any other information or deliver or approve any required documents (whether
preliminary, interim revisions or final), pricing estimates, construction bids, and the like, (b)
because of any change requested by Tenant to the Work or to any design or space plans, (c) because
Tenant fails to attend any meeting with Landlord, any design professional, or any contractor, or
their respective employees or representatives, as may be required or scheduled hereunder or
otherwise necessary in connection with the preparation or completion of any construction documents,
or in connection with the performance of the Work, (d) because of any specification by Tenant of
materials or installations in addition to or other than Landlord’s standard finish-out materials,
or (e) because a Tenant Party otherwise delays completion of the Work. As used herein
“Substantial Completion,” “Substantially Completed,” and any derivations thereof
mean the Work in the Premises is substantially completed (as reasonably determined by Landlord) in

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	26
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

substantial accordance with this Exhibit. Substantial Completion shall have occurred even
though minor details of construction, decoration, landscaping and mechanical adjustments remain to
be completed by Landlord.

     5. Warranties. LANDLORD MAKES NO EXPRESS OR IMPLIED WARRANTIES IN CONNECTION WITH ANY
WORK TO BE PERFORMED BY LANDLORD IN THE PREMISES EXCEPT AS EXPRESSLY STATED IN THIS EXHIBIT.
Landlord will perform the work in a good and workmanlike manner and will, upon Tenant’s written
request, assign to Tenant (at no cost or expense to Landlord) any and all warranties Landlord
receives from manufacturers and suppliers for equipment and other personalty installed pursuant
hereto.

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	27
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

EXHIBIT E

PARKING

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	28
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

EXHIBIT F

OPTION TO EXTEND

1. Provided that Tenant is not in default under the terms of this Lease, either at the time of its
exercise of the option herein provided or at the end of the Term provided in the Lease (or the end
of the then current option period, if applicable), Tenant shall have two (2) consecutive options to
extend this Lease for a period of five (5) years at the end of the primary term of the Lease. Each
such option must be exercised by Tenant giving Landlord written Notice in accordance with the
notice provisions of the Lease of its intention to exercise such option not less than 180 nor more
than 270 days prior to the end of the primary term, or the previous option period, as the case may
be.

2. For each option period exercised by Tenant in accordance herewith, the Lease shall be deemed
extended and shall be continued in full force and effect with respect to every applicable term and
condition contained therein, except that the Base Rent payable with respect to the Premises for
such option period shall be as follows:

The Base Rent for the renewal term shall be based on the then prevailing rental
rates for properties of equivalent quality, size, utility and location, with the
length of the Term, the amount of any potential tenant improvement allowance
required to be expended by Landlord, and credit standing of the Tenant, to be taken
into account.

Upon notification from Tenant of the exercise of this renewal option, Landlord
shall, within fifteen (15) days thereafter, notify Tenant in writing of the proposed
Base Rent for the renewal term; Tenant shall, within fifteen (15) days following
receipt of same, notify Landlord in writing of the acceptance or rejection of the
proposed Base Rent.

3. In the event Tenant fails to exercise any option within the time and in the manner provided
herein, such option, and all subsequent options, shall be deemed waived by Tenant and shall not be
exercisable thereafter.

4. The option provided herein is for the sole benefit of Tenant (or any Affiliate of Tenant) and
may not be exercised by any subtenant or assignee of Tenant, regardless of whether Landlord has
consented to or approved such subletting or assignment. As used herein, the term “Affiliate” shall
mean any entity that is controlled by, controlling, or under common control with, Tenant.

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	29
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

EXHIBIT G

[GROUND LEASE]

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	30
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

EXHIBIT H

PERMITTED MATERIALS

The following materials may be brought and used in the Premises (but not to exceed the following
amounts), so long as (i) the materials are stored and used in accordance with all applicable Laws
and Environmental Requirements; (ii) Tenant does not transfer materials from container to
container; (iii) secondary containment is placed beneath any equipment using hydraulic oil or any
other equipment that is observed by Landlord or its agents to be leaking; (iv) chemical containers
that are fifty-five (55) gallons in size or larger used during production shall have secondary
containment; (v) there is no exterior product or large metal scrap storage in or around the
Premises; and (vi) Tenant notifies the applicable fire department of the storage of the following
materials:

CHEMICALS — GRAPEVINE

	 	 	 
	DESCRIPTION	 	YEARLY QTY
	CAL SOLVE 2365

	 	20 GAL
	CAL CLEAN 836

	 	20 GAL
	SODA ASH

	 	20 GAL
	72778 DEFOAMER

	 	360 GAL
	90517 FINAL RINSE

	 	30 GAL
	11817 COATER

	 	600 GAL
	70818 CLEANER BOOSTER

	 	600 GAL
	POLY-CUT COOLANT

	 	330 GAL
	DIESEL

	 	10 GAL
	MEK

	 	10 GAL
	TOUCH UP LIQUID PAINT — 10 OZ CAN

	 	50 EA
	TAPMATIC CUTTING FLUID

	 	16 OZ
	MD-20 CLEANING AGENT

	 	25 GAL
	SAE 80W90 EP GEAR LUBE

	 	5 GAL
	PUPLE LUBRICANT FOR SS

	 	5 GAL
	ONE GREASE — 12 OZ TUBE

	 	30 EA
	3M BRAND LIQUID STAINLESS STEEL CLEANER & POLISH — 10 OZ CAN

	 	20 EA

CHEMICAL — LOCK SHOP

	 	 	 	 	 
	MANUFACTURER	 	DESCRIPTION	 	QTY PER YEAR
	ENSIGN PRODUCTS

	 	318 VERSATOIL
	 	2 GAL.
	FUCHS LUBRITECH

	 	AIR LUBE 10W/NR
	 	10 GAL.
	MIDCO PRODUCTS

	 	PRO MAGIC FOAMING COOLING COIL CLEANER
	 	6 OZ.
	CRC INDUSTRIES

	 	DRY GLIDE #03044
	 	10 OZ.
	UNITED REFINING CO.

	 	GASOLINE, REGULAR UNLEADED
	 	50 GAL.
	BIDALL

	 	HAND CREAM BARRIER
	 	13 OZ.
	KENSOL

	 	KX OXIDE RESISTOR
	 	6 OZ.

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	31
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

	 	 	 	 	 
	MANUFACTURER	 	DESCRIPTION	 	QTY PER YEAR
	KENDALL

	 	HYKEN 052 10W-20 TRACTOR TRANSMISSION/HYD. FLUID
	 	1 QT.
	KINZUA

	 	KE-416 INSECT SPRAY
	 	32 OZ.
	KINZUA

	 	KE-3026-B ANTI-SEIZE
	 	4 OZ.
	KINZUA

	 	KE-107C GREEN APPLE AIR FRESHENER
	 	28 OZ.
	LPS LABORATORIES

	 	TAPMATIC CUTTING FLUID
	 	16 OZ.
	HYDRO-BLAST

	 	MD-20 CLEANING AGENT
	 	25 LBS.
	MOBILE LUBE

	 	SAE 80W90 EP GEAR LUBE
	 	1 QT.
	MAGNAFLUX

	 	SURFACE CONDITIONER #3132-T
	 	2 OZ.
	MOBILE OIL CO.

	 	MOBILE GEAR 627 SPINDLE OIL
	 	5 QT.
	MOBILE OIL CO.

	 	PRG-540-130 HYDRAULIC OIL
	 	4 OZ.
	RAMSEY GROUP

	 	NEUTRA-CLEAN   BATTERY CLEANER   &   NEUTRALIZER
	 	1 QT.
	BOSTIK

	 	NEVER-SEIZE REGULAR GRADE
	 	2 OZ.
	NIAGARA LUBRICANT

	 	0560 UNIVERSAL TRACTOR FLUID
	 	.5 GAL.
	OATEY

	 	50/50 SOLID WIRE SOLDER
	 	.25 LBS.
	SLICK 50

	 	ONE LUBE #43604128 AEROSOL
	 	36 OZ.
	MARTIN  SENOUR PAINTS

	 	QUICK DRY ALKYD ENAMEL DRESDEN BLUE
	 	1 OZ.
	MARTIN  SENOUR PAINTS

	 	QUICK DRY ALKYD ENAMEL POSTAL GRAY
	 	1 OZ.
	MARTIN  SENOUR PAINTS

	 	QUICK DRY ALKYD ENAMEL MARINE BLUE
	 	1 OZ.
	MARTIN  SENOUR PAINTS

	 	QUICK DRY ALKYD ENAMEL SMOKE GRAY
	 	1 OZ.
	MARTIN  SENOUR PAINTS

	 	QUICK DRY ALKYD ENAMEL SAND
	 	1 OZ.
	MARTIN  SENOUR PAINTS

	 	QUICK DRY ALKYD ENAMEL BLACK
	 	1 OZ.
	MARTIN  SENOUR PAINTS

	 	QUICK DRY ALKYD ENAMEL REGALIA BLUE
	 	1 OZ.
	MARTIN  SENOUR PAINTS

	 	QUICK DRY ALKYD ENAMEL CRIMSON RED
	 	1 OZ.
	MARTIN  SENOUR PAINTS

	 	QUICK DRY ALKYD ENAMEL CADET BLUE
	 	1 OZ.
	MARTIN  SENOUR PAINTS

	 	QUICK DRY ALKYD ENAMEL DESERT SAND
	 	1 OZ.
	RAABE CORPORATION

	 	CHROME YELLOW TOUCH UP BOTTLE
	 	1 OZ.
	RAABE CORPORATION

	 	SUNSET ORANGE TOUCH UP BOTTLE
	 	1 OZ.
	RAABE CORPORATION

	 	SLATE TOUCH UP BOTTLE
	 	1 OZ.
	RAABE CORPORATION

	 	COCOA TOUCH UP BOTTLE
	 	1 OZ.
	RAABE CORPORATION

	 	SANDALWOOD TOUCH UP BOTTLE
	 	1 OZ.
	RAABE CORPORATION

	 	ANTIQUE GOLD TOUCH UP BOTTLE
	 	1 OZ.
	RAABE CORPORATION

	 	M10909AC ANTIQUE GOLD SPRAY PAINT
	 	24 OZ.
	RAABE CORPORATION

	 	M10910AC SLATE GRAY SPRAY PAINT
	 	24 OZ.
	RAABE CORPORATION

	 	COCOA SPRAY PAINT
	 	12 OZ.
	RAABE CORPORATION

	 	M10911AC SMOKE GRAY SPRAY PAINT
	 	12 OZ.
	RAABE CORPORATION

	 	96130004 DARK GREEN SPRAY PAINT
	 	12 OZ.

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	32
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

	 	 	 	 	 
	MANUFACTURER	 	DESCRIPTION	 	QTY PER YEAR
	RAABE CORPORATION

	 	M10902AC CHROME YELLOW SPRAY PAINT
	 	12 OZ.
	CUSTOM FINISHES INC.

	 	CF-2003 LEMON SPRAY PAINT
	 	12 OZ.
	CUSTOM FINISHES INC.

	 	CF-1176 CRIMSON RED SPRAY PAINT
	 	12 OZ.
	CUSTOM FINISHES INC.

	 	CF-1238 DESERT TAN SPRAY PAINT
	 	12 OZ.
	CUSTOM FINISHES INC.

	 	CF-1224 TROPIC SAND SPRAY PAINT
	 	12 OZ.
	CUSTOM FINISHES INC.

	 	CF-1223 NBU GRAY SPRAY PAINT
	 	12 OZ.
	CUSTOM FINISHES INC.

	 	CF-1175 SANDALWOOD SPRAY PAINT
	 	12 OZ.
	RELTON CORPORATION

	 	RAPID TAP
	 	16 OZ.
	APPLIED RESEARCH

	 	SUPERBRUTE INDUSTRIAL CLEANER & DEGREASER
	 	10 GAL.
	KINZUA

	 	KE-2021 SKIN SHIELD CREAM
	 	14 OZ.
	BAUSCH & LOMB INC.

	 	SIGHT SAVERS ANTI-FOG LIQUID W/O SILICONE
	 	6 OZ.
	SLICK 50

	 	ONE LUBE PETROLEUM OIL
	 	1 QT.
	MASTER CHEMICAL CORP.

	 	TRIM MICROSOL 185
	 	25 GAL.
	MASTER CHEMICAL CORP.

	 	TRIM WHAMEX
	 	5 GAL.
	MASTER CHEMICAL CORP.

	 	TRIM RP-08F
	 	.5 GAL.
	STECO CORP.

	 	TAP MAGIC PROTAP CUTTING FLUID
	 	.5 GAL.
	TRICO MFG. CORP.

	 	TRI-COOL
	 	6 OZ.
	ITW FLUID PRODUCTS GROUP

	 	DYKEM RED LAYOUT FLUID
	 	2 OZ.
	ITW FLUID PRODUCTS GROUP

	 	DYKEM BLUE LAYOUT FLUID
	 	6 OZ.
	WD40 COMPANY

	 	WD40 SPRAY CAN
	 	16 OZ.
	XCELPLUS INTERNATIONAL INC.

	 	MFL-ALL PURPOSE ANTI-WEAR / ANTI- CORROSION LUBRICANT
	 	5 GAL.
	DOW CORNING CORP.

	 	Z MOLY — POWDER
	 	3 OZ.
	BLACKHAWK AUTOMOTIVE INC.

	 	SILVER SOLDER
	 	.5 LBS.
	ANCHOR CHEMICAL CORP.

	 	ANCHORLUBE G-771
	 	2 OZ.
	DYKEM COMPANY

	 	DYKEM SPRAY
	 	12 OZ.
	NIAGARA LUBRICANT

	 	MULTI-PURPOSE AUTOMATIC TRANSMISSION FLUID
	 	.5 GAL.
	JNJ INDUSTRIES INC.

	 	GLOBALTECH ISOPROPYL ALCOHOL, 99%
	 	5 GAL.
	SUPERIOR GRAPHITE CO.

	 	NATURAL GRAPHITE
	 	4 OZ.
	PETROLON INC.

	 	ONE GREASE
	 	.5 QTS.
	3M

	 	3M BRAND LIQUID STAINLESS STEEL CLEANER & POLISH
	 	.5 QTS.
	ARMOR ALL PRODUCTS CORP.

	 	#7 CHROME POLISH
	 	2 OZ.
	EXXON MOBIL CORP.

	 	MOBIL 1 SYNTHETIC GREASE
	 	6 OZ.
	RIDGID TOOL CO.

	 	RIDGID PREMIUM DARK THREAD CUTTING OIL
	 	.5 QT.
	BOSTIK INC.

	 	RED BEARING LUBRICANT
	 	5 OZ.
	TURTLE WAX, INC.

	 	TURTLE WAX CHROME POLISH
	 	6 OZ.
	EXXON MOBIL CORP.

	 	MOBILUX EP 1 (ARO GREASE #33153)
	 	6 OZ.

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	33
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas	 	 	 	 

 

 

	 	 	 	 	 
	MANUFACTURER	 	DESCRIPTION	 	QTY PER YEAR
	AMREP INC.

	 	MISTY BARRIER CREAM
	 	18 OZ.
	LPS LABORATORIES

	 	LPS BELT DRESSING
	 	12 OZ.
	PROCTOR & GAMBLE

	 	CASCADE AUTOMATIC DISHWASHING DETERGENT
	 	150 OZ.
	D. A. STUART CO.

	 	DRAWSOL WM 4470
	 	1 GAL.

					
	 	 	 	 	 
	Texas Industrial Lease — American Locker Group, Inc.
	 	34
	 	 
	2701 Regent, Suite 200, DFW Airport, Texas

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00186-of-00352.parquet"}]]