Document:

exv10w1

 

EXHIBIT 10.1

OFFICE LEASE

1707 NORTH RANDALL ROAD

ELGIN, ILLINOIS

DATE: April 15, 2005

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TABLE OF CONTENTS

	 	 	 	 	 	 	 
	          Introductory Article	 	 	 	 
	ARTICLE 1
	 	DEMISED PREMISES; TERM	 	 	2	 
	ARTICLE 2
	 	RENT	 	 	3	 
	ARTICLE 3
	 	RENT ADJUSTMENTS	 	 	3	 
	ARTICLE 4
	 	USE	 	 	7	 
	ARTICLE 5
	 	SERVICES	 	 	9	 
	ARTICLE 6
	 	POSSESSION	 	 	12	 
	ARTICLE 7
	 	CONDITION OF PREMISES	 	 	12	 
	ARTICLE 8
	 	REPAIRS	 	 	13	 
	ARTICLE 9
	 	ALTERATIONS	 	 	13	 
	ARTICLE 10
	 	COVENANT AGAINST LIENS	 	 	15	 
	ARTICLE 11
	 	DAMAGE OR DESTRUCTION BY FIRE OR CASUALTY	 	 	15	 
	ARTICLE 12
	 	INSURANCE	 	 	16	 
	ARTICLE 13
	 	DELETED	 	 	18	 
	ARTICLE 14
	 	CONDEMNATION	 	 	18	 
	ARTICLE 15
	 	WAIVER OF CLAIMS	 	 	19	 
	ARTICLE 16
	 	NONWAIVER	 	 	19	 
	ARTICLE 17
	 	WAIVER OF NOTICE	 	 	20	 
	ARTICLE 18
	 	LANDLORD’S REMEDIES	 	 	20	 
	ARTICLE 19
	 	SURRENDER OF POSSESSION	 	 	21	 
	ARTICLE 20
	 	HOLDING OVER	 	 	23	 
	ARTICLE 21
	 	COSTS, EXPENSES AND ATTORNEYS’ FEES	 	 	23	 
	ARTICLE 22
	 	COMPLIANCE WITH LAWS	 	 	23	 
	ARTICLE 23
	 	CERTAIN RIGHTS RESERVED BY LANDLORD	 	 	23	 
	ARTICLE 24
	 	ESTOPPEL	 	 	25	 
	ARTICLE 25
	 	RULES AND REGULATIONS	 	 	26	 
	ARTICLE 26
	 	PARKING	 	 	26	 
	ARTICLE 27
	 	ASSIGNMENT AND SUBLETTING	 	 	27	 
	ARTICLE 28
	 	NOTICE	 	 	28	 
	ARTICLE 29
	 	DEFAULT UNDER OTHER LEASE	 	 	29	 
	ARTICLE 30
	 	CONVEYANCE BY LANDLORD	 	 	29	 
	ARTICLE 30
	 	SUBORDINATION OF LEASE	 	 	30	 
	ARTICLE 32
	 	BROKERS	 	 	30	 
	ARTICLE 33
	 	SIGNAGE	 	 	30	 
	ARTICLE 34
	 	MISCELLANEOUS	 	 	31	 
	ARTICLE 35
	 	EXCULPATION	 	 	33	 
	ARTICLE 36
	 	LATE PAYMENT	 	 	33	 
	ARTICLE 37
	 	COVENANT OF QUIET ENJOYMENT	 	 	34	 
	ARTICLE 38
	 	OPTIONS TO EXTEND	 	 	34	 

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	ARTICLE 39
	 	OPTIONS TO EXPAND AND REDUCE PREMISES	 	 	35	 

EXHIBITS

	 	 	 
	EXHIBIT A

	 	PLAN OF PREMISES
	 
	EXHIBIT B

	 	LEGAL DESCRIPTION OF PROPERTY
	 
	EXHIBIT C

	 	BUILDING RULES AND REGULATIONS

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OFFICE LEASE

     THIS OFFICE LEASE, made as of April15, 2005, between JOHN B. SANFILIPPO & SON, INC., a
Delaware corporation (“Landlord”) and PANASONIC CORPORATION OF NORTH AMERICA, a Delaware
corporation (“Tenant”).

     WITNESSETH THAT, in consideration of the covenants and agreements hereinafter set forth,
Landlord hereby lets to Tenant and Tenant hereby leases from Landlord the Premises described
herein, on the following terms and conditions contained in this Lease:

INTRODUCTORY ARTICLE:

BASIC LEASE PROVISIONS

AND ENUMERATION OF EXHIBITS

     A. Basic Lease Provisions. The provisions of this Introductory Article are intended to be in
outline form and are addressed in detail in other Articles of this Lease.

LEASE TERM (Also see Article 1): Thirty-six (36) months

COMMENCEMENT DATE (Also see Article 1): April 15, 2005

TERMINATION DATE (Also see Article 1): April 14, 2008

RENTABLE SQUARE FOOTAGE: 164,691 square feet (hereinafter referred to as the

“Premises” and depicted on Exhibit A)

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     RENT (Also see Article 2):

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Rate	 	 	Annualized	 	 	Monthly Installment	 
	Period	 	PSF	 	 	Rent	 	 	of Rent	 
	 
	Commencement Date -
	 	$	9.23	 	 	$	1,535,634.60	 	 	$	127,969.55	 
	Termination Date
	 	 	 	 	 	 	 	 	 	 	 	 

     (The rental amount set forth above shall be hereinafter referred to as “Rent”.)

     TENANT’S PROPORTIONATE SHARE (Also see Article 3): 41.47%

     ADDITIONAL BROKER (Also see Article 32): Paine Wetzel Associates, Inc.

     B. Enumeration of Exhibits. The following exhibits and schedules are attached hereto and
incorporated herein by this reference, as though set forth in full herein:

	 	 	 
	EXHIBIT A

	 	Plan of Premises.
	 
	 	 
	EXHIBIT B

	 	Legal Description of Property
	 
	 	 
	EXHIBIT C

	 	Rules and Regulations
	 
	 	 
	SCHEDULE I

	 	Removable Equipment

ARTICLE 1

DEMISED PREMISES; TERM

     Landlord does hereby demise and lease to Tenant, and Tenant hereby accepts, that certain space
as shown on the plan attached hereto and made a part hereof as Exhibit A, located on a portion of
the first and second floors and consisting of 164,691 rentable square feet (the “Premises”) in the
building known as 1707 North Randall Road (the “Building”), situated on certain property (including
all easements appurtenant thereto) in Elgin, Illinois (the “Property”) as described on Exhibit B
attached hereto for a term commencing on the 15th day of April, 2005 and ending on the
14th day of April, 2008 (the “Term”), unless sooner terminated or extended as provided
herein, subject to the terms, covenants, and agreements herein contained.

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ARTICLE 2

RENT

     Tenant shall pay to Landlord or Landlord’s agent at the office of Landlord or at such other
place as Landlord may from time to time designate, monthly Rent in the amount set forth in the
Introductory Article, payable in advance on the first day of each and every calendar month during
the Term. If the Term commences on a day other than the first day of a calendar month, or ends on
a day other than the last day of a calendar month, then the Rent for such fractional month shall be
prorated on the basis of 1/365th of the annual Rent for each day of such fractional month. Rent
shall be payable without any prior notice or demand therefor and without any deductions or set-offs
whatsoever, except as expressly set forth herein. The obligation for the timely and full payment
of Rent and additional Rent (defined herein) is independent of all the obligations of Landlord
under this Lease, and no offset, deduction or setoff shall be allowed or permitted unless otherwise
specifically provided for in this Lease.

ARTICLE 3

RENT ADJUSTMENTS

     Landlord and Tenant agree that the following rent adjustments described below shall be made
with respect to each calendar year of the Term after the Base Year commencing with the calendar
year 2008, or portion thereof, including the calendar year in which the Lease terminates. The Base
Year for purposes of calculating Tenant’s rent adjustments shall be the year 2007:

     (A) Tenant shall pay to Landlord as additional Rent an amount equal to Tenant’s Proportionate
Share of the amount of the increases in Ownership Taxes payable by Landlord for each calendar year
of the Term over the Base Year. Tenant’s Proportionate Share of such Ownership Taxes is agreed to
be as set forth in Introductory Article A, being the percentage calculated by dividing the rentable
area contained in the Premises (164,691) by the rentable area of the Building (397,085).

     Ownership Taxes shall mean all taxes and assessments of every kind and nature which Landlord
shall be obligated to pay with respect to any calendar year or portion thereof during the Term,
regardless of when such taxes or assessments are payable, because of or in any way connected with
the ownership, leasing, and operation of the Building and the Property subject to the following:

     (i) the amount of ad valorem real and personal property taxes against Landlord’s real
and personal property to be included in Ownership Taxes shall be the amount payable with
respect to such calendar year, notwithstanding that such taxes are payable in a later
calendar year. The amount of any tax refunds received by Landlord with respect to Ownership
Taxes payable hereunder shall be deducted from such Ownership Taxes regardless of when
received by Landlord, less the Landlord’s cost of obtaining any such reduction or refund;

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     (ii) the amount of special taxes and special assessments to be included shall be limited
to the amount of the installments (plus any interest, other than penalty interest, payable
thereon) of such special tax or special assessment payable during the calendar year in
respect of which Ownership Taxes are being determined;

     (iii) the amount of any tax or excise levied by the State of Illinois or the City of
Elgin, any political subdivision of either, or any other taxing body, on rents or other
income from the Property (or the value of the leases thereon) to be included shall not be
greater than the amount which would have been payable on account of such tax or excise by
Landlord during the calendar year in respect of which Ownership Taxes are being determined
had the income received by Landlord from the Building been the sole taxable income of
Landlord for such calendar year;

     (iv) there shall be excluded from Ownership Taxes all income, excess profits taxes,
franchise, capital stock, and inheritance or estate taxes; and

     (v) notwithstanding anything set forth herein to the contrary, in the event the Building
and a reasonable allocation of land value are not taxed separately and tax bills for
Ownership Taxes payable hereunder include such taxes for the entire Property, Ownership Taxes
payable with respect to the Premises shall be determined as hereinafter set forth. Such real
estate tax bill or bills for the entire Property as described above shall be allocated to the
Building and the existing warehouse/industrial building located on the Property (the
“Industrial Building”) per rentable square foot on the basis of the total rentable square
feet in the Industrial Building and double the total rentable square feet in the Building
(the “Property Allocation”). For example, if the Building had one hundred (100) rentable
square feet and the Industrial Building had two hundred (200) rentable square feet, each
would be allocated an equal one-half of such taxes. Tenant will then be obligated to pay
Tenant’s Proportionate Share of such Ownership Taxes allocated to the Building in accordance
with the other terms and provisions of this Section 3(A). In no event shall Tenant be
required to pay any part of real estate taxes and assessments imposed as a result of any
expansion by Landlord of the Building or the Industrial Building or the construction of new
improvements on the Property and any such taxes shall be excluded from any computation to be
made hereunder.

     (B) Tenant shall pay to Landlord as additional Rent an amount equal to Tenant’s Proportionate
Share of the amount of the increases in Operating Expenses for each calendar year of the Term after
the Base Year over the Base Year. Tenant’s Proportionate Share of such Operating Expenses is
agreed to be 41.47% (calculated as set forth in Article 3(A) herein).

     Operating Expenses shall mean all reasonable and customary expenses, incurred or paid on
behalf of Landlord for the ownership, management, operation, maintenance and repair of, and
necessary replacements in, the Building and the Property which, in accordance with generally
accepted accounting practice as applied to the operation and maintenance of office buildings, are
properly chargeable to the ownership, management, operation, maintenance and repair of, and
necessary replacements in, the Building. Operating Expenses include, without limitation and except

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as limited elsewhere in this Article, management fees, landscaping, the cost of up to two (2)
window washings in any year, scavenger service, maintenance or repair of the roof, façade, parking
lot, walkways, detention areas and of any heating, ventilation and air conditioning equipment and
other Building systems and improvements, non-capital expenditures required under any governmental
law or regulation, installation, maintenance and repair of fire safety systems, including sprinkler
and smoke detection systems, wages and benefits of janitors, cleaning personnel, engineers and
other employees (including the amount of any social security taxes, unemployment insurance
contributions and “fringe benefits”), insurance premiums, fuel costs and utility costs, legal and
accounting expenses, and amortization of the costs of any capital improvement to the Property not
excluded as set forth below, with interest at two percent (2%) over the corporate base rate of
interest from time to time published by Bank One, Illinois, N.A. on the unamortized amount of such
costs. All such capital costs shall be amortized over the shortest of (i) the reasonable life of
the capital improvement items, (ii) if applicable, the economic payback period of the items, with
the reasonable life/economic payback period and amortization schedule being determined in
accordance with sound management accounting principles or (iii) the remaining Term of the Lease.
To the extent any item of expense is incurred with respect to the entire Property, such expense
shall be allocated to the Building and the Industrial Building in accordance with the Property
Allocation, provided, however, no item of expense shall be included in Operating Expenses if it is
incurred solely with respect to the Industrial Building or other improvements on the Property other
than the Building. Notwithstanding the foregoing, Operating Expenses shall not include:

	 	(i)  	costs of alterations of tenant spaces or space occupied by Landlord or its affiliates;
	 
	 	(ii)  	depreciation, interest and principal payments on mortgages, and other
debt costs, and rental payments under any superior, underlying or ground lease, if
any;
	 
	 	(iii)  	costs of capital improvements, except for such costs including interest
thereon, as set forth above, where (a) the purpose of such capital improvements is
to reduce Operating Expenses, or (b) such capital improvement is required due to any
rule, regulation, ordinance or statute of any applicable governmental body not in
effect as of the date hereof;
	 
	 	(iv)  	real estate brokers’ leasing commissions or compensation;
	 
	 	(v)  	payments to affiliates of the Landlord for goods and/or services in
excess of what would be paid to non-affiliated parties for such goods and/or
services in an arm’s length transaction;
	 
	 	(vi)  	costs of other services or work performed for the singular benefit of
another tenant or occupant;
	 
	 	(vii)  	legal, space planning, construction, building permit and code compliance
fees and costs and other expenses incurred in procuring tenants for the Building,
preparing space for occupancy or renewing or amending leases with existing tenants
or occupants of the Building;

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	 	(viii)  	costs of advertising and public relations and promotional costs and attorneys’ fees
associated with the leasing of the Building;
	 
	 	(ix)  	any costs, fines or penalties incurred due to the violation by Landlord
of any governmental rule or authority (and not caused by Tenant), any negligence of
Landlord or its agents or any default by Landlord hereunder;
	 
	 	(x)  	any expense for which Landlord is entitled to receive reimbursement
from insurance, condemnation awards, other tenants or any other source;
	 
	 	(xi)  	costs incurred in connection with the sale, financing, refinancing,
mortgaging, or other change of ownership of the Building;
	 
	 	(xii)  	costs, fines, interest, penalties, legal fees or costs of litigation
incurred due to the late payment of taxes, utility bills and other costs incurred as
a result of Landlord’s failure to make such payments when due, so long as Tenant has
been timely in the payment of its bills to Landlord;
	 
	 	(xiii)  	salaries and wages and other benefits paid to or on behalf of employees above the
level of Property Manager;
	 
	 	(xiv)  	legal and other expenses incurred in administering or enforcing leases
with third parties;
	 
	 	(xv)  	cost of window washing in excess of two (2) times per year;
	 
	 	(xvi)  	costs of electricity used by other tenants or occupants of the Building;
and
	 
	 	(xvii)  	costs of repair to and replacement of the Building required because of any casualty
damage or eminent domain.

     (C) In order to provide for payments on account of Ownership Taxes and Operating Expenses
payable for each calendar year during the Term of this Lease commencing with the calendar year
2008, Tenant agrees, at Landlord’s request, to pay, as additional Rent, Tenant’s Proportionate
Share of Ownership Taxes and Operating Expenses due for any such calendar year, as reasonably
estimated by Landlord and set forth in a reasonably detailed budget delivered no later than
November 30 of the prior calendar year, in twelve (12) monthly installments, each in an amount
equal to 1/12th of Tenant’s Proportionate Share commencing on the first day of the succeeding
January, commencing January 1, 2008. If, for whatever reason, the detailed budget for any given
year beginning 2009 is not forthcoming, Tenant shall continue to pay under the previous year’s
budget until such time as the applicable budget has been prepared and delivered to Tenant. If, as
finally determined in the succeeding calendar year at the time of delivery of the annual statements
provided for in subparagraph (D) hereof, Tenant’s Proportionate Share of Operating Expenses or
Ownership Taxes shall be greater than or be less than the aggregate of all installments so paid
on

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account to the Landlord (and which
are applicable to such calendar year) prior to receipt of an invoice from Landlord, then
Tenant within thirty (30) days of such invoice shall pay to Landlord the amount of such
underpayment, or the Landlord shall credit Tenant for the amount of such overpayment, or, in the
case of the last calendar year, pay to Tenant the amount of such overpayment within thirty (30)
days, as the case may be.

     (D) Landlord shall deliver to Tenant within ninety (90) days after the close of each
applicable calendar year (including the calendar year in which this Lease terminates), a statement
containing the amount of the Operating Expenses for such calendar year. Landlord shall deliver to
Tenant within ten (10) days after Landlord’s receipt for the final bill for Ownership Taxes for the
prior calendar year (including the year in which the Lease terminates) a statement containing
Ownership Taxes for such calendar year. Failure or delay in delivering any such statement or
invoice, or failure or delay in computing the Rent adjustments pursuant to this Article 3, shall
not be deemed a waiver by Landlord of its right to deliver such items nor shall any such failure or
delay be deemed a release of Tenant’s obligations with respect to any such statement or invoice, or
constitute a default hereunder. All Rent adjustments payable hereunder shall be made without any
deductions or set-offs whatsoever except as expressly set forth herein.

     (E) The obligation of the Tenant with respect to the payment of Rent and Rent adjustments due
hereunder and the obligation of Landlord with respect to the determination of Rent adjustments and
refund of overpayments thereof shall survive the expiration or termination of this Lease. Any
payment, refund, or credit made pursuant to this Article shall be made without prejudice to any
right of the Landlord to correct any items as billed pursuant to the provisions hereof. In the
event that this Lease shall have been in effect for less than the full calendar year immediately
preceding Tenant’s receipt of the invoices provided for in subparagraphs (C) and (D) hereof, the
Rent adjustment shall be pro rata. In no event shall any Rent adjustment result in a decrease in
the Rent payable hereunder.

     (F) Landlord shall maintain books and records showing Ownership Taxes and Operating Expenses
in accordance with generally accepted accounting principles as applied to the real estate industry,
which are consistently applied (including, without limitation, as to categories of expenses
incurred in the Base Year), and its customary management practices. Tenant or its representative
shall have the right to examine Landlord’s books and records showing Ownership Taxes and Operating
Expenses upon reasonable prior notice provided to Landlord, during Landlord’s normal business hours
at Landlord’s normal place of business at any time within ninety (90) days following the furnishing
by Landlord to Tenant of Landlord’s statement provided for in Section 3(D) above. Unless, within
ninety (90) days of receipt of any such Landlord’s statement, Tenant shall provide Landlord with
notice of its intention to inspect Landlord’s books and records pursuant to this Section and
provide Landlord with a written statement of its objection to any item in such Landlord’s
statement, Landlord’s statement shall be considered as final and conclusively binding on Tenant.

ARTICLE 4

USE

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     (A) Tenant may use and occupy the Premises for general office use and equipment and appliance
repair and testing and any other similar lawful purposes, provided, however, such equipment and
appliance repair shall be conducted only on the first floor of the Building and such equipment and
appliances shall be delivered to the Building only by Tenant’s employees or commercial delivery
service through the existing docks servicing the Building. Tenant may also use the Premises for
any other similar lawful purposes to those stated above with the prior written approval of
Landlord. Tenant shall not use or permit upon the Premises any retail sales or retail warranty
service operation or anything that will invalidate any policies of insurance now or hereafter
carried on the Building, materially impair the value of the Building and Premises or any part
thereof or materially increase the dangers, or pose unreasonable risk of harm, to third parties (on
or off of the Premises) arising from activities thereon. Tenant will pay all extra insurance
premiums which may be caused by the use which Tenant shall make of the Premises. Tenant will not
in any manner deface or injure the Building or any part thereof or overload the floors of the
Premises. Tenant will not do anything or permit anything to be done upon the Premises in any way
tending to create a public or private nuisance, or tending to disturb any other tenant in the
Building or the occupants of neighboring property or tending to injure the reputation of the
Building or commit waste thereon. Tenant will promptly and fully comply with all governmental,
health and police requirements and regulations respecting its use of the Premises. Tenant will not
use the Premises for lodging or sleeping purposes or for any immoral or illegal purposes. Tenant
shall not conduct nor permit to be conducted on the Premises any business which is contrary to any
of the laws of the United States of America or of the State of Illinois or which is contrary to the
ordinances of the City of Elgin. Tenant shall not at any time manufacture, sell, or give away, and
shall not at any time permit the manufacture, sale, or gift of any spirituous, fermented,
intoxicating or alcoholic liquors or controlled substances on the Premises, except that the
foregoing shall not be deemed to prohibit the occasional use of alcoholic beverages for
entertainment purposes, so long as Tenant has in full force and effect (and delivered to Landlord a
certificate of insurance therefor) a policy of host liquor liability or dram-shop insurance in form
and amounts at all times reasonably satisfactory to Landlord. Tenant shall not at any time sell,
purchase or give away, or permit the sale, purchase or gift of, food in any form on the Premises,
except for coffee service and vending machines for its employees or as otherwise permitted by rules
and regulations. The foregoing use prohibitions shall be deemed to apply to any subtenant or
assignee of Tenant without requirement of further or additional notice.

     (B) Tenant agrees that it will not use, handle, generate, treat, store or dispose of, or
permit the handling, generation, treatment, storage or disposal of any Hazardous Materials in, on,
under, around or above the Premises now or at any future time during the Term of the Lease in
violation of applicable laws and will indemnify, defend and save Landlord harmless from any and all
actions, proceedings, claims, costs, expenses and losses of any kind, including, but not limited
to, those arising from injury to any person, including death, damage to or loss of use or value of
real or personal property, and costs of investigation and cleanup arising as a result of the use of
Hazardous Materials on the Premises by Tenant or its subtenants and assigns during the Term hereof.
The term “Hazardous Materials”, when used herein, shall include, but shall not be limited to, any
substances, materials or wastes to the extent quantities thereof are regulated by the City of Elgin
or any other local governmental authority, the State of Illinois, or the United States of America
because of toxic, flammable, explosive, corrosive, reactive, radioactive or other properties that
may be hazardous to human health or the environment, including asbestos and including any materials
or substances that

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are listed in the United States Department of Transportation Hazardous Materials Table, as
amended, 49 C.F.R. 172.101, or in the Comprehensive Environmental Response, Compensation and
Liability Act, as amended, 42 U.S.C. subsections 9601 et seq., or the Resources Conservation and
Recovery Act, as amended, 42 U.S.C. subsections 6901 et seq., or any other applicable governmental
regulation imposing liability or standards of conduct concerning any hazardous, toxic or dangerous
substances, waste or material, now or hereafter in effect. Tenant does hereby indemnify, defend
and hold harmless the Landlord and its agents and their respective officers, directors,
beneficiaries, shareholders, partners, agents and employees and Landlord’s lender or lenders
holding a mortgage on the Property from all fines, suits, procedures, claims and actions of every
kind, and all costs associated therewith (including reasonable attorneys’ and consultants’ fees)
arising by, through or under Tenant, its agents, subtenants, assigns, employees, contractors,
servants and invitees and out of or in any way connected with any deposit, spill, discharge or
other release of Hazardous Materials that occurs during the Term of this Lease, at or from the
Premises, or which arises at any time from Tenant’s use or occupancy of the Premises, or from
Tenant’s failure to provide all information, make all submissions, and take all steps required by
all applicable governmental authorities. Landlord agrees and acknowledges that the foregoing
indemnity by Tenant does not apply to any liability arising from the acts or omissions of Landlord
or other Tenants or occupants of the Building or the agents or employees of any of the foregoing.
Tenant’s obligations and liabilities under this paragraph shall survive the expiration of the Term
of this Lease. Tenant acknowledges that it has had ample opportunity to inspect the Premises and
perform any environmental assessments it considers appropriate to determine the environmental
condition of the Premises, that Tenant has not relied on any representation of the Landlord
regarding such condition, and that Tenant has consulted its own experts and independently satisfied
itself regarding the environmental condition of the Premises.

ARTICLE 5

SERVICES

     Landlord shall provide, except as otherwise provided herein and subject to applicable
government codes, rules, regulations, and guidelines applicable thereto, and further subject to
Landlord’s inability to provide due to circumstances beyond Landlord’s reasonable control whether
mandatory or voluntary, the following services:

     (A) Air-cooling and heat to provide a temperature condition consistent with office
buildings in the northwest suburban Chicago area, daily from 7:00 A.M. to 6:00 P.M. (Saturdays to
1:00 P.M.), Sundays and holidays excepted. Whenever heat-generating machines or equipment
installed by Tenant affect the temperature otherwise maintained by Landlord in the Premises,
Landlord shall be relieved of responsibility for maintaining the air conditioning standards
applicable to the Building, and in such event Tenant shall (1) discontinue use of such
heat-generating machines or equipment, or (2) install supplementary air conditioning units in the
Premises, the cost, installation, operation and maintenance of which shall be paid by Tenant.
Tenant agrees that at all times it will cooperate with Landlord and abide by all reasonable
regulations and requirements which Landlord may prescribe for the proper functioning of the
ventilating and air conditioning systems.

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     (B) Water for drinking, lavatory and toilet purposes drawn through fixtures installed by the
Landlord, or by Tenant with Landlord’s written consent, from regular Building supply at the
prevailing temperature. Tenant shall pay Landlord at rates fixed by Landlord for water furnished
for any other purpose. Tenant shall not waste or permit the waste of water.

     (C) Janitor service in and about the Premises, Saturdays, Sundays and holidays excepted.
Tenant shall not provide any janitor services without Landlord’s written consent and then only
subject to supervision of Landlord and at Tenant’s sole responsibility and by a janitor, contractor
or employees at all times reasonably satisfactory to Landlord, but not as agent or servant of
Landlord.

     (D) Adequate operatorless passenger elevator service at all times and freight elevator service
subject to reasonable scheduling by Landlord.

     (E) Electrical service to the Premises. Tenant agrees that if it purchases any lamps, bulbs,
ballasts and starters used in the Premises from anyone other than Landlord, all such items shall be
of the same type as those used in the Building. Landlord agrees that it shall provide Tenant use
of the existing supplemental electrical generator serving the Building reasonably adequate to
operate life safety systems such as, but not limited to, emergency lighting and security/fire
prevention controls, in the event standard electrical service to the Building becomes unavailable,
but Tenant acknowledges and agrees that Landlord shall not be responsible for repairing, replacing
or installing any new generator equipment except to the extent required to comply with any
applicable ordinances, codes or government regulations.

     (F) Security service including, without limitation, manned security desk in the Building from
6:30 am. to 6:30 p.m. Monday through Saturday, with key card or similar secured entry system at all
other times, with Tenant being responsible for the cost of any keys or identification cards
necessary for Tenant’s use of such system in excess of four hundred fifty (450) keys or cards
(including the keys or cards furnished to Tenant pursuant to the Lease of the Industrial Building
by and between Landlord and Tenant).

     (G) Access to (1) the rooftop of the Building and such other parts thereof as may be necessary
for the installation and use, at Tenant’s sole cost and expense, of a satellite dish and/or antenna
at locations to be agreed upon by the parties, such agreement not to be unreasonably withheld,
delayed or conditioned, (2) the Property and the Building as may be necessary for the installation
of a cable communications distribution system, at Tenant’s sole cost and expense, at locations to
be agreed upon by the parties, such agreement not to be unreasonably withheld, delayed or
conditioned, and (3) cabling and conduit and rooftop satellite dishes and antennae now or hereafter
installed as may be reasonably necessary in connection with Tenant’s use and occupancy of the
Premises, including, without limitation, such reasonable access to all of the foregoing as may be
necessary for the repair, maintenance or replacement thereof by Tenant or its agents. Tenant
hereby indemnifies and holds Landlord harmless for any and all work conducted pursuant to this
subparagraph (G) and agrees to promptly repair the Building to the extent it is damaged by any such
work. Tenant shall provide to Landlord the names of the contractors that it employs to conduct
such work and shall provide any other information reasonably requested by Landlord including, but
not limited to, insurance from the contractors naming Landlord as additional insured

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     (H) Life safety systems, telecommunications equipment and cabling, and natural gas
distribution system, all as currently installed on the Building and the Property or upgraded by
Landlord.

     (I) Such additional services on such terms and conditions as may be mutually agreed upon by
Landlord and Tenant.

     So long as Landlord or any other entity operates a cafeteria, health club, conference center,
central mail/package receiving room or other similar amenity in the Building for use by employees
of Landlord or any affiliate of Landlord or other tenants of the Building, Landlord agrees that
Tenant’s employees shall have full access to such facilities and, if a cost is charged therefor, at
the lowest cost offered to any other users thereof. In the event Landlord elects not to operate a
cafeteria in the Building, Landlord agrees that Tenant may operate a cafeteria at Tenant’s sole
cost and expense and at no additional rent in such location as it is currently located pursuant to
an agreement reasonably acceptable to Landlord. If Tenant operates the cafeteria in the Building,
Tenant agrees that Landlord’s employees or any other tenant of the Building shall have full access
to such facilities and, if a cost is charged therefor, at the lowest cost offered to any other
users thereof.

     Tenant agrees that neither Landlord nor any company, firm, or individual operating,
maintaining, repairing, managing or supervising the plant or facilities furnishing any of the above
services, nor any of their respective agents or employees shall be liable to Tenant, or any of
Tenant’s subtenants, assigns, employees, agents, customers or invitees or anyone claiming through,
by or under Tenant, for any damages, injuries, losses, expenses, claims or causes of action,
because of any interruption, diminution, delay or discontinuance at any time for any reason in the
furnishing of any of the above services, except solely if caused by the gross negligence or
recklessness of Landlord or its agents; nor shall any such interruption, diminution, delay or
discontinuance relieve Tenant from full performance of Tenant’s obligations under this Lease.
Notwithstanding the foregoing, in the event that any interruption or discontinuance is caused by
the gross negligence or recklessness of Landlord or its agents and such interruption or
discontinuance continues beyond ten (10) consecutive business days in the Premises, or any portion
thereof, and on account of such interruption or disturbance the Premises becomes substantially
untenantable, Rent and additional charges shall abate proportionately for so long as Tenant remains
unable to conduct its business in the Premises or such portion thereof. Landlord agrees to use
reasonable efforts to restore any such interrupted or discontinued service as soon as reasonably
practicable. Landlord shall not be responsible for any interruption or discontinuance described
above caused by third parties (other than its agents as set forth above) or by an act of God.

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ARTICLE 6

POSSESSION

     Landlord shall deliver possession of the Premises on the Commencement Date. If Tenant shall
enter possession of all or any part of the Premises prior to the date fixed above for the first day
of the Term, all of the covenants and conditions of this Lease shall be binding upon the parties
hereto in respect of such possession the same as if the first day of the Term had been fixed as of
the date when Tenant entered such possession except that Tenant shall not pay Rent for the period
prior to the first day of the Term of this Lease.

ARTICLE 7

CONDITION OF PREMISES

     Tenant’s taking possession of any portion of the Premises shall be conclusive evidence as
against Tenant that such portion of the Premises were in good order and satisfactory condition when
the Tenant took possession. Tenant acknowledges that it owned the Building prior to the
commencement of the Term of this Lease, that Tenant has had ample opportunity to inspect the
Premises and perform any inspections or assessments it considers appropriate to determine the
condition of the Premises, that Tenant has not relied on any representation of Landlord regarding
such condition, that Tenant has consulted its own experts and independently satisfied itself
regarding the condition of the Premises, and that Tenant has accepted the Premises “ AS-IS,
WHERE-IS” with all faults. No promise of the Landlord to alter, remodel, repair or improve the
Premises or the Building and no representations respecting the condition of the Premises or the
Building have been made by Landlord to Tenant.

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ARTICLE 8

REPAIRS

     Except as may otherwise be provided in Article 11 of this Lease, and subject to the provisions
of Article 9 of this Lease, Tenant shall, at its sole cost and expense, keep the Premises in good
order, repair and tenantable condition at all times during the Term, ordinary wear and tear
excepted, provided, however, that Tenant shall not be required to repair or replace broken or
damaged exterior window glass unless such replacement or repair is necessitated by the act, failure
to act, or neglect of Tenant, its subtenants, assigns, servants, employees, agents, invitees or
guests. If Tenant does not make such repairs and replacements as described above within a
reasonable time, Landlord may, but need not, make such repairs and replacements and the costs paid
or incurred by Landlord for such repairs and replacements (including Landlord’s overhead and
profit, and the cost of general conditions) shall be deemed additional Rent reserved under this
Lease due and payable within thirty (30) days after Tenant’s receipt of an itemized invoice and
supporting documentation. Landlord may, but shall not be required so to do, enter the Premises at
all reasonable times upon prior written notice to Tenant (except in the event of any emergency) to
make any repairs, alterations, improvements or additions, including, but not limited to, ducts and
all other facilities for heating and air conditioning service, as Landlord shall desire or deem
necessary for the safety, maintenance, repair, preservation or improvement of the Building, or as
Landlord may be required or requested to do by the City of Elgin or by the order or decree of any
court or by any other proper authority.

     In the event Landlord or its agents or contractors shall elect or be required to make repairs,
alterations, improvements or additions to the Premises or the Building, Landlord shall be allowed
to take into and upon the Premises all material that may be required to make such repairs,
alterations, improvements or additions and, during the continuance of any of said work, to
temporarily close doors, entryways, public space and corridors in the Building and to interrupt or
temporarily suspend any services and facilities without being deemed or held guilty of an eviction
of Tenant or for damages to Tenant’s property, business or person, and the Rent reserved herein
shall in no way abate while said repairs, alterations, improvements or additions are being made,
and Tenant shall not be entitled to maintain any set-off or counterclaim for damages of any kind
against Landlord by reason thereof. Landlord may, at its option, make all such repairs,
alterations, improvements or additions in and about the Building and the Premises during ordinary
business hours, but if Tenant desires to have the same done at any other time, Tenant shall pay for
all overtime and additional expenses resulting therefrom. Landlord agrees to use all reasonable
efforts to minimize any interference with Tenant’s business operations in the Premises and shall
remain liable for its or its agents’ gross negligence.

ARTICLE 9

ALTERATIONS

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     Tenant shall not, without the prior written consent of Landlord in each instance obtained,
which consent shall not be unreasonably withheld, delayed or conditioned, make any repairs,
replacements, alterations, improvements or additions to the Premises, provided, however, no such
consent shall be required with respect to cosmetic alterations or any separate security system for
the Premises installed by Tenant, in which case Tenant shall deliver to Landlord all system codes,
contact information for the applicable security company, and a copy of any keys to such system. In
the event Tenant desires to make any alterations, improvements or additions pursuant to this
Article 9, or any repairs or replacements pursuant to Article 8 of this Lease, Tenant shall prior
to commencing any such work:

     (a) In the event such work is structural or affects mechanical systems, submit to
Landlord for review plans and specifications showing such work in reasonable detail;

     (b) Furnish Landlord with the names and addresses of all contractors and copies of all
contracts with such contractors;

     (c) Furnish commercially reasonable certificates of insurance from all contractors
performing such work evidencing commercial general liability, automobile liability,
employer’s liability and worker’s compensation insurance, the last in statutory amounts; and

     (d) Provide Landlord with copies of all necessary permits evidencing compliance with
all ordinances and regulations of the City of Elgin or any department or agency thereof, and
with the requirements of all statutes and regulations of the State of Illinois or any
department or agency thereof.

     Tenant hereby agrees to protect, defend, indemnify and hold Landlord, the Building and the
Property harmless from and against any and all liabilities of every kind and description which may
arise out of or in connection with such repairs, replacements, alterations, improvements or
additions by Tenant or any subtenant or assign of Tenant.

     Upon completing any of such repairs, replacements, alterations, improvements or additions,
Tenant shall furnish Landlord with contractors’ affidavits, sworn statements, full and final
waivers of lien and receipted bills covering all labor and material expended and used and, in the
event such work is structural or affects mechanical systems or is of a type for which such plans
and specifications are customarily prepared, two (2) sets of final as-built plans and
specifications. All repairs, replacements, alterations, improvements and additions shall comply
with all reasonable insurance requirements and with all ordinances and regulations of the City of
Elgin or any department or agency thereof and with the requirements of all statutes and regulations
of the State of Illinois or of any department or agency thereof. All repairs, replacements,
alterations, improvements and additions shall be constructed in a good and workmanlike manner and
only good grades of material shall be used.

     Landlord agrees to inform Tenant at the time any such alterations are approved or, if such
approval is not required, upon the request of Tenant, if such alterations will be required to be

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removed upon expiration or early termination hereof. All alterations, improvements, additions,
repairs, or replacements, whether temporary or permanent in character, including, without
limitation, wall coverings, carpeting and other floor coverings, special lighting installations,
built-in or attached shelving, cabinetry, and mirrors, made by Landlord or Tenant in or upon the
Premises and not required to the removed as aforesaid shall become Landlord’s property and shall
remain upon the Premises at the termination of this Lease by lapse of time or otherwise without
compensation to Tenant (excepting only Tenant’s movable office furniture, trade fixtures, office
equipment and the equipment listed on Schedule I attached hereto).

ARTICLE 10

COVENANT AGAINST LIENS

     Nothing contained in this Lease shall authorize or empower Tenant to do any act which shall in
any way encumber Landlord’s title to the Building, Property or Premises, nor in any way subject
Landlord’s title to any claims by way of lien or encumbrance whether claimed by operation of law or
by virtue of any expressed or implied contract of Tenant, and any claim to a lien upon the
Building, Property or Premises arising from any act or omission of Tenant shall attach only against
Tenant’s interest and shall in all respects be subordinate to Landlord’s title to the Building,
Property and Premises. If Tenant has not removed or bonded over any such lien or encumbrance
within thirty (30) days after written notice to Tenant by Landlord, Landlord may, but shall not be
obligated to, pay the amount necessary to remove such lien or encumbrance, without being
responsible for making any investigation as to the validity or accuracy thereof, and the amount so
paid, together with all costs and expenses (including attorneys’ fees) incurred by Landlord in
connection therewith, shall be deemed additional Rent reserved under this Lease due and payable
within thirty (30) days after Tenant’s receipt of notice of such payment by Landlord and supporting
documentation.

ARTICLE 11

DAMAGE OR DESTRUCTION BY FIRE OR CASUALTY

     (A) If the Premises or any part of the Building shall be damaged by fire or other casualty and
if such damage does not render all or a substantial portion of the Premises or the Building
untenantable, then, except as expressly hereinafter set forth, Landlord shall proceed to repair and
restore the same to its prior existing condition with reasonable promptness, subject to reasonable
delays for insurance adjustments and delays caused by matters beyond Landlord’s control. If any
such damage renders all or a substantial portion of the Premises or the Building untenantable,
Landlord shall, with reasonable promptness after the occurrence of such damage and in good faith,
estimate the length of time that will be required to substantially complete the repair and
restoration of such damage and shall by notice advise Tenant of such estimate. If it is so
estimated that the amount of time required to substantially complete such repair and restoration
will exceed one hundred eighty (180) days from the date such damage occurred, then Tenant shall
have the right to terminate this Lease as of the date of such damage upon giving notice to Landlord
at any time within twenty (20) days after Landlord gives Tenant the notice containing said
estimate. Unless this Lease

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is terminated
as provided in the preceding sentence, except as expressly hereinafter set forth, Landlord
shall proceed with reasonable promptness and all due diligence to repair and restore the Premises,
subject to reasonable delays for insurance adjustments and delays caused by matters beyond
Landlord’s control, and also subject to zoning laws and building codes then in effect. Landlord
shall have no liability to Tenant, and Tenant shall not be entitled to terminate this Lease (except
as herein provided) if such repairs and restoration are not in fact completed within the time
period estimated by Landlord, as aforesaid, or within said one hundred eighty (180) days, so long
as Landlord shall proceed with reasonable promptness and due diligence to complete the same. In
addition to the foregoing, Landlord shall have the right to terminate this Lease if a material
casualty damages the Premises during the last twelve (12) months of the Term, as it may have been
extended, by delivering notice thereof to Tenant within ten (10) days after such casualty,
provided, however, in any such event, Tenant shall have the right, in addition to the rights of
Tenant under Section 38 below, to elect to extend the Term, or any extension thereof, for the next
available Initial Extension Term or the Final Extension Term by delivering written notice of such
election to Landlord within twenty (20) days after receipt of Landlord’s notice of termination as
described in this sentence, in which event said notice shall be of no force and effect and Landlord
shall restore the Premises as set forth herein. Notwithstanding anything to the contrary herein set
forth, Tenant shall also have the right to complete the restoration of the Premises or to terminate
this Lease in the event the Premises are not substantially restored within two hundred ten (210)
days after the date of casualty, except that Tenant shall not have the right to terminate this
Lease pursuant to this Article 11 if the damage or destruction was caused by the intentional or
negligent act of Tenant, its subtenants, assigns, agents or employees. In the event Tenant elects
to complete the restoration of the Premises as set forth above, Landlord agrees to make available
to Tenant all insurance proceeds payable in connection therewith.

     (B) In the event any such fire or casualty damage not caused by the intentional or negligent
act of Tenant, its agents or employees, renders the Premises substantially untenantable and Tenant
is not occupying the Premises and if this Lease shall not be terminated pursuant to the foregoing
provisions of this Article 11 by reason of such damage, then Rent shall abate during the period
beginning with the date of such damage and ending with the date when Landlord substantially
completes its repair and restoration work. Such abatement shall be in an amount bearing the same
ratio to the total amount of Rent for such period as the portion of the Premises being repaired and
restored by Landlord and not heretofore delivered to Tenant from time to time bears to the entire
Premises. In the event of termination of this Lease pursuant to this Article 11, Rent shall be
apportioned on a per diem basis and be paid to the date of such fire or other casualty.

     (C) In the event of any such fire or other casualty, and if this Lease is not terminated pursuant
to the foregoing provisions of this Lease, Tenant shall repair and restore any portion of
alterations, additions or improvements made by or on behalf of Tenant in the Premises.

ARTICLE 12

INSURANCE

     In consideration of the leasing of the Premises at the rental stated in Article 2, Landlord
and Tenant agree to provide insurance and allocate the risk of loss as follows:

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          (a) Tenant, at its sole cost and expense but for the mutual benefit of Landlord and Tenant
(when used in this Article the term “Landlord” shall include Landlord and its officers, agents,
servants and employees, lenders holding a mortgage on the Property and, if Landlord is succeeded by
a land trust, its beneficiaries, and the term “Tenant” shall include Tenant and its officers,
agents, servants and employees), shall purchase and keep and maintain in force and effect during
the Term hereof, insurance under policies issued by insurers of recognized responsibility on its
trade fixtures, merchandise, inventory, contents, furniture, equipment or other personal property
located in the Premises protecting Landlord and Tenant from damage or other loss caused by fire or
other casualty including, but not limited to, vandalism and malicious mischief, perils covered by
all risk and extended coverage, theft, sprinkler leakage, water damage (however caused), explosion,
malfunction or failure of heating and cooling or other apparatus, and other similar risks in
amounts not less than the full insurable replacement value of such property. Such insurance shall
provide that it is specific and not contributory and shall name the Landlord as an additional
insured party and shall contain a replacement cost endorsement. Tenant shall deliver certificates
of insurance evidencing such coverage upon execution hereof and thereafter not less than twenty
(20) days prior to the expiration date of any such policy.

          (b) During the term of this Lease or any renewal thereof, Tenant shall obtain and promptly pay
all premiums for Commercial General Liability Insurance with broad form extended coverage including
Contractual Liability Insurance with respect to and against claims occurring upon in or about the
Premises and the business operated by Tenant and any subtenant in the Premises with a minimum
coverage of a combined single limit of $2,000,000.00, and all such policies and renewals thereof
shall name the Landlord and the Tenant as insureds. All policies of insurance shall provide that
the insurer shall endeavor to deliver to Landlord prior written notice of cancellation of said
policies. On or before the Commencement Date of the term of this Lease, and thereafter not less
than twenty (20) days prior to the expiration dates of said policy or policies, Tenant shall
provide certificates of insurance evidencing coverages required by this Lease.

     All the insurance required under this Lease shall be issued by insurance companies authorized
to do business in the State of Illinois with a financial rating of at least a A+ as rated in the
most recent edition of Best’s Insurance Reports and in business for the past five years.

     Landlord agrees to purchase and keep in force and effect insurance on the Building against
fire and such other risks as may be included in extended coverage insurance from time-to-time in
the amount of the full insurable value of the Building including, without limitation, non-trade
fixtures, wall and floor coverings, lighting fixtures and built-in cabinets and bookshelves. Such
policies shall contain a replacement cost endorsement and a clause pursuant to which the insurance
carriers waive all rights of subrogation against the Tenant with respect to losses payable under
such policies, except for the amount of any deductible under such policies.

     By this section, Landlord and Tenant intend that the risk of loss or damage as described above
be borne by responsible insurance carriers to the extent above provided, and Landlord and Tenant
hereby release each other and agree to look solely to, and to seek recovery only from, their
respective insurance carriers in the event of a loss of a type described above to the extent that
such

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coverage is
agreed to be provided hereunder. For this purpose, any applicable deductible amount shall be
treated as though it were recoverable under such policies. Landlord and Tenant agree that
applicable portions of all monies collected from such insurance shall be used toward the full
compliance of the obligations of Landlord and Tenant under this Lease in connection with damage
resulting from fire or other casualty.

ARTICLE 13

INTENTIONALLY DELETED

ARTICLE 14

CONDEMNATION

     If the whole or any material part of the Building or Property, other than a part which does
not interfere with the maintenance or operation thereof, shall be taken or condemned by any
competent authority for any public or quasi-public use or purpose or if any adjacent property or
street shall be condemned or improved in such manner as to require the use of any part of the
Premises or of the Building, other than a part which does not interfere with the maintenance or
operation thereof, or a conveyance is made in lieu of such a taking, the Term, at the option of
Landlord, shall end upon the date when the possession of the part so taken shall be vested in such
authority. If the whole or any part of the Premises shall be taken or condemned by any competent
authority for any public or quasi-public use or purpose or a conveyance is made in lieu of such a
taking, the Term, at the option of Tenant, shall end upon the date when the possession of the part
so taken shall be vested in such authority. Landlord shall be entitled to receive the entire award
including all income, rents, any interest thereon and any other compensation for any taking or
conveyance without any payment to Tenant, the Tenant hereby assigning to the Landlord the Tenant’s
interest therein, if any, excluding any award Tenant shall be entitled to claim, prove and receive
as a separate award in the condemnation proceeding for its relocation, leasehold improvements or
trade fixtures. Current Rent shall be apportioned as of the date of vesting in such authority.

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ARTICLE 15

WAIVER OF CLAIMS

     Tenant agrees that, to the extent not expressly prohibited by law, Landlord and its lenders,
officers, agents, servants and employees shall not be liable for (nor shall Rent abate as a result
of) any direct or consequential damage (including damage claimed for actual or constructive
eviction) either to person or property sustained by Tenant, its subtenants, assigns, officers,
servants, employees, agents, invitees or guests due to the Building or any part thereof or any
appurtenances thereof becoming out of repair, or due to the happening of any accident in or about
said Building, or due to any act or neglect of any tenant or occupant of said Building or of any
other person. This provision shall apply particularly (but not exclusively) to damage caused by
water, snow, frost, steam, sewage, gas, electricity, sewer gas or odors or by the bursting, leaking
or dripping of pipes, faucets and plumbing fixtures and windows, and shall apply without
distinction as to the person whose act or neglect was responsible for the damage and whether the
damage was due to any of the causes specifically enumerated above or to some other cause of an
entirely different kind. Tenant further agrees that all of Tenant’s personal property in the
Premises or the Building shall be at the risk of Tenant only and that Landlord shall not be liable
for any loss or damage thereto or theft thereof. Notwithstanding the foregoing, Landlord shall not
hereby be exculpated from any liability arising from its or its agents’ gross negligence.

ARTICLE 16

NONWAIVER

     No waiver of any condition expressed in this Lease shall be implied by any neglect of Landlord
to enforce any remedy on account of the violation of such condition if such violation be continued
or repeated subsequently, and no express waiver shall affect any condition other than the one
specified in such waiver and that one only for the time and in the manner specifically stated. No
receipt of moneys by Landlord from Tenant after the termination in any way of the Term or of
Tenant’s right of possession hereunder or after the giving of any notice shall reinstate, continue
or extend the Term or affect any notice given to Tenant prior to the receipt of such moneys, it
being agreed that after the service of notice or the commencement of a suit or after final judgment
for possession of the Premises Landlord may receive and collect any Rent or other sums due, and
such payment shall not waive or affect said notice, suit or judgment.

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ARTICLE 17

WAIVER OF NOTICE

     Except as provided in Article 18 hereof, Tenant hereby expressly waives the service of any
notice of intention to terminate this Lease or to re-enter the Premises and waives the service of
any demand for payment of Rent or for possession and waives the service of any other notice or
demand prescribed by any statute or other law.

ARTICLE 18

LANDLORD’S REMEDIES

     If (a) default shall be made in the payment of the Rent or any installment thereof or in the
payment of any other sum required to be paid by Tenant under this Lease, or under the terms of any
other agreement between Landlord and Tenant, and such default shall continue for ten (10) days
after written notice to Tenant, or (b) if default shall be made in the full and prompt performance
of any of the other covenants or conditions which Tenant is required to observe and perform and
such default shall continue for thirty (30) days after written notice to Tenant or, if such default
is not susceptible of cure within thirty (30) days, within such additional period as may be
reasonable so long as Tenant is engaged in the diligent cure thereof, or (c) if the interest of
Tenant in this Lease shall be levied on under execution or other legal process, or (d) if any
petition shall be filed by or against Tenant to declare Tenant a bankrupt or to delay, reduce or
modify Tenant’s debts or obligations, and, if filed against Tenant, is not dismissed within sixty
(60) days, or (e) if any petition shall be filed or other action taken to reorganize or modify
Tenant’s capital structure, if Tenant be a corporation or other entity, or (f) if Tenant be
declared insolvent according to law or if any assignment of Tenant’s property shall be made for the
benefit of creditors, or (g) if a receiver or trustee is appointed for Tenant or its property, then
Landlord may treat the occurrence of any one or more of the foregoing events as a breach of this
Lease, and thereupon at its option may, without notice or demand of any kind to Tenant or any other
person, but subject to the duty to mitigate its damages stated below, have any one or more of the
following described remedies in addition to all other rights and remedies provided at law or in
equity:

     (i) Landlord may terminate this Lease and the Term created hereby, in which event
Landlord may forthwith repossess the Premises and be entitled to recover forthwith as damages
a sum of money equal to the present value of the Rent provided to be paid by Tenant for the
balance of the stated Term of the Lease, less the fair rental value of the Premises for said
period, and any other sum of money and damages owed by Tenant to Landlord.

     (ii) Landlord may terminate Tenant’s right of possession and may repossess the Premises
by forcible entry and detainer suit or otherwise, without demand or notice of any kind to
Tenant and without terminating this Lease, in which event Landlord shall use its reasonable
efforts to relet the Premises, for such amount of rent and upon such terms as shall be
reasonably satisfactory to Landlord (including the right to relet the Premises for a lease

20

 

term which is greater or lesser than that remaining under the Term of this Lease and the
right to relet the Premises as a part of a larger area and the right to change the character
or use made of the Premises). For the purpose of such reletting, Landlord is authorized to
decorate or to make any repairs, changes, alterations or additions in or to the Premises that
may be reasonably necessary. Landlord’s duty to mitigate its damages under this subparagraph
(ii) shall be limited to a duty to attempt to relet the Premises by listing the Premises for
lease with Grubb & Ellis (or similar type of commercial real estate broker familiar with
similar properties in the area) pursuant to an agreement that imposes usual and customary
marketing obligations on the listing broker within fifteen (15) days of Landlord’s actual
knowledge of the Tenant’s default hereunder, and to continue to list the Premises for lease
for a period of one hundred twenty (120) days thereafter. Failure of Landlord to lease the
Premises prior to any other vacant space in the Building shall not be deemed a failure to
mitigate under this subparagraph (ii). If (A) Landlord shall fail to relet the Premises
within said one hundred twenty (120) day period or (B) the Premises are relet and a
sufficient sum shall not be realized from such reletting after paying the expenses of the
collection of the Rent to satisfy the Rent provided for in this Lease to be paid, then Tenant
shall pay to Landlord as damages a sum equal to the amount of the Rent accrued and unpaid
from the date of default until expiration of the Term or any Extension Term then in effect
under the Lease, or, if the Premises have been relet, Tenant shall satisfy and pay any such
deficiency upon demand therefor from time to time, and Tenant agrees that Landlord may file
suit to recover any sums falling due under the terms of this paragraph and any other sums due
under this Lease from time to time and that no suit or recovery of any portion due Landlord
hereunder shall be any defense to any subsequent action brought for any amount not
theretofore reduced to judgment in favor of Landlord.

     In the case of such termination of the Lease or Tenant’s right of possession, Tenant shall
indemnify Landlord against all reasonable costs and expenses incurred in collecting amounts due
from Tenant under this Lease (including reasonable attorneys’ fees, litigation expenses and the
like) and recovering possession of the Premises.

     Tenant hereby waives trial by jury in any action or proceeding brought by, through or under
Landlord, under or in connection with this Lease.

     Tenant hereby agrees that to the extent any of the foregoing notice periods provided for in
this Article 18 and elsewhere in this Lease are greater than the notice periods required under the
statutes of the State of Illinois, such greater notice periods as are provided for herein shall
substitute for any such statutory notice periods, and any notices given pursuant to the terms
hereof shall be deemed the notice required by any such statutes.

ARTICLE 19

SURRENDER OF POSSESSION

     (A) On or before the date this Lease and the Term hereby created terminates, or on or before
the date Tenant’s right of possession terminates, whether by lapse of time or at the option of
Landlord pursuant to the terms and provisions of this Lease, Tenant shall:

21

 

     (i) restore the Premises to reasonably good condition (except as otherwise provided in
Article 11 of this Lease), ordinary wear and tear excepted, and remove those alterations,
improvements or additions installed during the Term, whether installed by Landlord or Tenant,
if such removal is required pursuant to Article 9 above;

     (ii) remove from the Premises and the Building all of Tenant’s personal property; and

     (iii) surrender possession of the Premises to Landlord in a clean condition free of all
rubbish and debris.

     (B) If Tenant shall fail or refuse to deliver the Premises in the above-described condition on
or before the above-specified date, Landlord may enter into and upon the Premises and put the
Premises in such condition and recover from Tenant Landlord’s cost of so doing. If Tenant shall
fail or refuse to comply with Tenant’s duty to remove all personal property from the Premises and
the Building on or before the above-specified date, the parties hereto agree and stipulate that
Landlord may enter into and upon the Premises and may, at its election:

     (i) treat such failure or refusal as an offer by Tenant to transfer title to such
personal property to Landlord, in which event title thereto shall thereupon pass under this
Lease as a bill of sale to and vest in Landlord absolutely without any cost either by
set-off, credit allowance or otherwise, and Landlord may retain, remove, sell, donate,
destroy, store, discard, or otherwise dispose of all or any part of said personal property in
any manner that Landlord shall choose;

     (ii) treat such failure or refusal as conclusive evidence, on which Landlord or any
third party shall be entitled absolutely to rely and act, that Tenant has forever abandoned
such personal property, and without accepting title thereto, Landlord may, at Tenant’s
expense, remove, store, destroy, discard or otherwise dispose of all or any part thereof in
any manner that Landlord shall choose without incurring liability to Tenant or to any other
person. In no event shall Landlord ever become or accept or be charged with the duties of a
bailee (either voluntary or involuntary) of any personal property, and the failure of Tenant
to remove all personal property from the Premises and the Building shall forever bar Tenant
from bringing any action or from asserting any liability against Landlord with respect to any
such property which Tenant fails to remove. If Tenant shall fail or refuse to surrender
possession of the Premises to Landlord on or before the above-specified date, Landlord may
forthwith re-enter
the Premises and repossess itself thereof as of its former estate and remove all persons and
effects therefrom, using such force as may be necessary, without being guilty of any manner
of trespass or forcible entry or detainer.

22

 

ARTICLE 20

HOLDING OVER

     Tenant shall pay to Landlord one hundred fifty percent (150%) of the Rent then applicable for
each month or portion thereof Tenant shall retain possession of the Premises or any part thereof
after the termination of this Lease as Landlord’s sole damages remedy. The provisions of this
Article shall not operate as a waiver by Landlord of any right of re-entry hereinbefore provided.

ARTICLE 21

COSTS, EXPENSES AND ATTORNEYS’ FEES

     In case Landlord shall, without fault on its part, be made a party to any litigation commenced
by or against Tenant, then Tenant shall pay all reasonable costs, expenses and attorneys’ fees
incurred or paid by Landlord in connection with such litigation. Tenant shall also pay all
reasonable costs, expenses and attorneys’ fees that may be incurred or paid by Landlord in
enforcing any of Tenant’s covenants and agreements in this Lease. In case Tenant shall, without
fault on its part, be made a party to any litigation commenced by or against Landlord, then
Landlord shall pay all reasonable costs, expenses and attorneys’ fees incurred or paid by Tenant in
connection with such litigation. Landlord shall also pay all reasonable costs, expenses and
attorneys’ fees that may be incurred or paid by Tenant in enforcing any of Landlord’s covenants and
agreements in this Lease.

ARTICLE 22

COMPLIANCE WITH LAWS

     Tenant and Landlord shall operate the Premises and Building respectively in compliance with
all applicable federal, state, and municipal laws, ordinances and regulations and shall not
knowingly, directly or indirectly, make any use of the Premises or Building which is prohibited by
any such laws, ordinances or regulations.

ARTICLE 23

CERTAIN RIGHTS RESERVED BY LANDLORD

     Landlord shall have the following rights, exercisable without notice, except as set forth
below, and without liability to Tenant for damage or injury to property, person or business and
without effecting an eviction, constructive or actual, or disturbance of Tenant’s use or possession
or giving rise to any claim for set-off or abatement of Rent, except that Landlord shall remain
liable for its and its agents’ gross negligence:

23

 

     (a) To name the Building and to change the Building’s name or street address.

     (b) Subject to and without limitation of Article 33, to install, affix and maintain any
and all signs on the exterior and interior of the Building.

     (c) To designate and approve, prior to installation, all types of window shades,
blinds, drapes, and other similar equipment, and to control all internal lighting that may
be visible from the exterior of the Building.

     (d) On reasonable prior notice to Tenant, to show the Premises to (i) prospective
tenants at reasonable hours during the last twelve (12) months of the Term and, if vacated
during such period to decorate, remodel, repair or otherwise prepare the Premises for
re-occupancy without affecting Tenant’s obligation to pay Rent, and (ii) others having a
legitimate interest at any time during the Term of this Lease.

     (e) To retain at all times, and to use in appropriate instances, keys and combinations
to all doors into the Premises. No locks or combinations shall be changed without the prior
written consent of Landlord.

     (f) To decorate or to make repairs and/or replacement of windows, Building
façade or any components of the Building envelope or other Building systems (in Landlord’s
sole discretion) or any other repairs, alterations, additions, or improvements, whether
structural or otherwise, in and about the Building, or any part thereof, and for such
purposes to enter upon the Premises at reasonable times with prior written notice to Tenant,
and, during the continuance of any of said work, to temporarily close doors, entryways,
public space and corridors in the Building and to interrupt or temporarily suspend Building
services and facilities, all without abatement of Rent or affecting any of Tenant’s
obligations hereunder, so long as the Premises are reasonably accessible and useable.

     (g) To have and retain a paramount title to the Premises free and clear of any act of
Tenant purporting to burden or encumber it.

     (h) To grant to anyone the exclusive right to conduct any business or render any
service in or to the Building, provided such exclusive right shall not operate to exclude
Tenant from the use expressly permitted herein.

     (i) To approve the weight, size and location of safes, filing systems and other heavy
equipment and bulky articles in and about the Premises and the Building (so as not to
overload the floors of the Premises), and to require all such items and furniture and
similar items to be moved into and out of the Building and Premises only at such times and
in such manner as Landlord shall direct in writing. Any damages done to the Building or
Premises or to other tenants in the Building by taking in or putting out safes, furniture
and other items, or from overloading the floor in any way, shall be paid by Tenant.
Furniture, boxes, merchandise or other bulky articles shall be transported within the
Building only upon or by vehicles equipped with rubber tires and shall be carried only in
the freight elevators and at

24

 

such times as the management of the Building shall require.
Movements of Tenant’s property into or out of the Building and within the Building are
entirely at the risk and responsibility of Tenant.

     (j) To have access for the Landlord and other tenants of the Building to any mail
chutes located on the Premises according to the rules of the United States Postal Service.

     (k) To change the arrangement or location of entrances, passageways, doors and
doorways, corridors, stairs, toilets and other public service portions of the Building not
contained within the Premises or any part thereof.

     (l) To close the Building after regular working hours and on Saturdays, Sundays and
legal holidays subject, however, to Tenant’s right to admittance, under such reasonable
regulations as Landlord may prescribe from time to time, which may include by way of example
but not of limitation, that persons entering or leaving the Building identify themselves to
Building personnel by registration or otherwise and that said persons establish their right
to enter or leave the Building.

     Landlord may enter upon the Premises and may exercise any or all of the foregoing rights
hereby reserved without being deemed guilty of an eviction or disturbance of Tenant’s use or
possession and without being liable in any manner to Tenant, except to the extent of any liability
arising from Landlord’s or its agents’ gross negligence.

ARTICLE 24

ESTOPPEL

     Tenant agrees that from time to time upon not less than ten (10) business days’ prior request
by Landlord, Tenant or Tenant’s duly authorized representative having knowledge of the following
facts shall deliver to Landlord a statement in writing certifying (a) that this Lease is unmodified
and in full force and effect (or if there have been modifications that the Lease as modified is in
full force and effect); (b) the dates to which the Rent and other charges have been paid; (c) that
neither Landlord, to the Tenant’s knowledge, nor Tenant is in default under any provision of this
Lease, or, if in default, the nature thereof in detail; (d) that there are no offsets or defenses
to the payment of Rent, additional charges or any other sums payable under this Lease or, if there
are any such offsets or defenses, specifying such in detail; and (e) such further factual matters
as may be reasonably requested by Landlord.

25

 

ARTICLE 25

RULES AND REGULATIONS

     Tenant agrees to observe the reservations to Landlord in Article 23 hereof and agrees, for
itself, its employees, agents, servants, clients, customers, invitees, licensees and guests to
observe and comply at all times with the rules and regulations set forth in Exhibit B attached
hereto and made a part hereof, and with such reasonable modifications thereof and additions thereto
as Landlord may from time-to-time make for the Building, and that failure to observe and comply
with such reservations, rules and regulations shall constitute a default under this Lease.

     Landlord reserves the right to make such other and further reasonable rules and regulations as
in Landlord’s judgment may from time to time be needful for the safety, care and cleanliness of the
Building and Premises and for the preservation of good order therein. Nothing in this Lease
contained shall be construed to impose upon Landlord any duty or obligation to enforce any such
rules and regulations, or the terms, covenants and conditions of any other lease against any other
tenant or any other persons, provided, however, that Landlord shall elect to enforce or not enforce
such rules and regulations on a uniform basis, and Landlord shall not be liable to Tenant for
violation of any such rules and regulations, or terms, covenants and conditions by any other
tenant, its employees, agents, invitees, or by any other person.

ARTICLE 26

PARKING

     Landlord agrees to provide Tenant with reasonably sufficient parking spaces, including,
without limitation, handicapped parking spaces, for Tenant’s employees, agents and invitees which
shall in no event be less than the number of parking spaces required with respect to the Premises
under applicable zoning ordinances. In addition, Tenant’s invitees shall have the right to use up
to 50 parking spaces in the parking area currently labeled as visitor parking. In addition to the
foregoing, in the event Tenant exercises any right to expand the Premises under Section 39(A)
below, Landlord agrees to make available to Tenant hereunder an additional number of parking spaces
as are required with respect to the expanded Premises under applicable zoning ordinances.

26

 

ARTICLE 27

ASSIGNMENT AND SUBLETTING

     Tenant shall not, without the prior written consent of Landlord, which consent shall not be
unreasonably withheld, delayed or conditioned, (i) assign, convey, mortgage, pledge or otherwise
transfer this Lease, or any part thereof, or any interest hereunder; (ii) permit any assignment of
this Lease, or any part thereof, by operation of law; (iii) sublet the Premises or any part
thereof; or (iv) permit the use of the Premises, or any part thereof, by any parties other than
Tenant, its agents and employees, provided, however, Tenant may assign this Lease in whole or in
part to, sublet the Premises in whole or in part to and/or permit the use of the Premises in whole
or in part by any affiliate of Tenant or any entity which provides services to employees of Tenant
without the consent of Landlord.

     In the event Landlord’s consent is required hereunder, Tenant shall proceed as set forth in
this paragraph. Tenant shall, by notice in writing, advise Landlord of its intention from, on and
after a stated date (which shall not be less than thirty (30) days after date of Tenant’s notice),
to assign this Lease, or any part thereof, or to sublet any part or all of the Premises for the
balance or any part of the Term. Tenant’s notice shall include all of the terms of the proposed
assignment or sublease (whether contained in such assignment or sublease or in separate
agreements). Tenant’s notice shall state the name and address of the proposed assignee or
subtenant and a true and complete copy of the proposed assignment or sublease and any and all other
agreements relating thereto shall be delivered to Landlord with Tenant’s notice, accompanied by the
financial statements for any proposed assignee. Landlord shall have thirty (30) days after receipt
of all such information to approve or disapprove of such assignee, and shall notify Tenant of its
approval or disapproval within such thirty (30) days.

     Any subletting or assignment hereunder shall not release or discharge Tenant of or from any
liability, whether past, present or future, under this Lease, and Tenant shall continue fully
liable thereunder. Any subtenant or assignee shall agree to comply with and be bound by all of the
terms, covenants, conditions, provisions, rules and regulations and agreements of this Lease to the
extent of
the space sublet or assigned, and Tenant shall deliver to Landlord promptly after execution,
an executed copy of each such sublease or assignment and an agreement of compliance by each such
subtenant or assignee. Any sale, assignment, mortgage, transfer, or subletting of this Lease which
is not in compliance with the provisions of this Article shall be of no effect and void.

     Notwithstanding anything to the contrary contained herein, Landlord may withhold
consent to a sublease or assignment unless Landlord is provided with waivers from any brokers
involved in such subleasing or assignment of all lien rights of any such brokers under Illinois
law, including but not limited to the Commercial Real Estate Broker Lien Act. Landlord also may
withhold consent to a sublease or assignment if the proposed assignee or sublessee or its business
is subject to compliance with additional requirements of any law (including related regulations)
beyond those requirements which are applicable to Tenant on or prior to the said assignment or
sublease unless the proposed assignee or sublessee shall:

27

 

     (a) first deliver plans and specifications for complying with such additional
requirements and obtain Landlord’s consent thereto, and

     (b) comply with all Landlord’s reasonable conditions therefor or contained in such consent.

ARTICLE 28

NOTICE

     All notices, demands, approvals and consents which may or are required to be given by one
party to the other under this Lease shall be in writing and shall be delivered personally or by a
nationally-recognized air courier service or mailed by United States certified or registered mail,
postage prepaid, (a) if for the Tenant addressed to:

William H. Kopp

Panasonic Corporation of North America 
One Panasonic Way

Panazip: 3D-9

Secaucus, New Jersey 07094

     with copies to:

General Counsel

Panasonic Corporation of North America

One Panasonic Way

Panazip: 3B-6

Secaucus, New Jersey 07094

     And

Steven N. Zaris

McCarthy Duffy

180 North LaSalle Street

Suite 1400

Chicago, Illinois 60601

     or (b) if for the landlord addressed to:

Michael A. Valentine

John B. Sanfilippo & Son, Inc.

2299 Busse Road

Elk Grove Village, Illinois 60007

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     with a copy to:

Jeffrey J. Stahl, Esq.

Paul G. Hull, Esq.

Stahl Cowen Crowley, LLC

55 West Monroe Street, Suite 500

Chicago, IL 60603

or at such other place as Landlord or Tenant may from time to time designate by notice to the
other. Notices shall be deemed given upon receipt of delivery or refusal of such receipt.

ARTICLE 29

DEFAULT UNDER OTHER LEASE

     Any default under this Lease shall automatically constitute a default under any other lease
made by Tenant, or any of its assignees, affiliates, subtenants of any other space within the
Building or on any other part of the Property, including, but not limited to, the lease of the
Industrial Building, without requirement of further notice under any such other lease. If the term
of any other lease made by Tenant for any premises in the Building or under any other lease
affecting the Property shall be terminated after the making of this Lease because of any default by
Tenant under such other lease, Landlord, at its option, may terminate this Lease by written notice
to Tenant.

ARTICLE 30

CONVEYANCE BY LANDLORD

     In case Landlord or any successor owner of the Property or the Building shall convey or
otherwise dispose of any portion thereof to another person, such other person shall in its own name
thereupon be and become Landlord hereunder and shall assume fully in writing and be liable
upon all liabilities and obligations of this Lease to be performed by Landlord which first arise
after the date of conveyance, and such original Landlord or successor owner shall, from and after
the date of conveyance, be free of all liabilities and obligations not then incurred.

29

 

ARTICLE 31

SUBORDINATION OF LEASE

     The rights of the Tenant under this Lease shall be and are subject and subordinate at all
times to all ground leases and underlying leases, if any, now or hereafter in force against the
Property, and to the lien of any mortgages or deeds of trust now or hereafter in force against such
leases, the Property or the Building, or all of them, and to all advances made or hereafter to be
made upon the security thereof, and to all renewals, modifications, amendments, consolidations,
replacements and extensions thereof, provided that the holders thereof agree to recognize Tenant’s
rights hereunder so long as Tenant is not in default. This Article is self-operative and no
further instrument of subordination shall be required. Any mortgagee or beneficiary under a deed
of trust may, however, elect to have this Lease be superior to its mortgage or deed of trust. At
Landlord’s request, Tenant shall execute a document in recordable form confirming that this Lease
is subordinate (or at the mortgagee’s or beneficiary’s election, superior) to any mortgage or deed
of trust, subject to a non-disturbance provision as described above. Tenant, at the option of any
mortgagee or beneficiary under a deed of trust, agrees to attorn to such mortgagee or beneficiary
in the event of a foreclosure sale or deed in lieu thereof.

ARTICLE 32

BROKERS

     Tenant represents and warrants to Landlord that neither it nor its officers or agents nor
anyone acting on its behalf has dealt with any real estate broker other than Paine Wetzel
Associates, Inc. in the negotiation or making of this Lease, and Tenant agrees to indemnify and
hold harmless Landlord from the claim or claims of Paine Wetzel Associates, Inc., or any other
broker or brokers claiming to have interested Tenant in the Building or Premises or claiming to
have caused Tenant to enter into this Lease. Landlord represents and warrants to Tenant that
neither it nor its officers or agents nor anyone acting on its behalf has dealt with any real
estate broker other than Grubb & Ellis, Inc. in the negotiation or making of this Lease, and
Landlord agrees to indemnify and hold harmless Tenant from the claim or claims of Grubb & Ellis,
Inc., or any other broker or brokers claiming to have caused Landlord to enter into this Lease.

ARTICLE 33

SIGNAGE

     Tenant shall have the right to maintain all building and monument signs identifying Tenant as
currently installed during the Term and any extensions thereof until such time as Landlord delivers
written notice to Tenant that Landlord desires to install its signage upon the Building, which
notice shall be accompanied by Landlord’s signage plan indicating the locations and design of
Landlord’s

30

 

building and monument signage and which notice shall further indicate to the Tenant the
signage that must be removed from the Building and Property. Without limitation of Tenant’s
signage rights as hereinafter set forth, Tenant shall remove all of the signage designated by the
Landlord for removal within sixty (60) days of delivery to Tenant of the foregoing notice. Should
Tenant fail to remove any such signage, Landlord may, but shall not be obligated to, remove such
signage at Tenant’s cost and expense, which cost shall be due and payable to Landlord within thirty
(30) days after notice. Upon installation of Landlord’s signage, Tenant shall be permitted to
install an amount of building and monument signage that is proportionate to Tenant’s Proportionate
Share as of the commencement of the Term of the this Lease, in such locations as are reasonably
acceptable to Landlord and Tenant and permitted under applicable governmental code, law or
ordinance, including without limitation, signage reasonably visible from I-90. All signage
installation by Tenant shall be at its sole cost and expense. In the event Tenant desires
additional building or monument signage and additional signage is not permitted under applicable
ordinances of the City of Elgin, Tenant shall have the right, at its sole cost and expense, to seek
a variation or other necessary approval under applicable law so as to erect such signage. Landlord
agrees to cooperate with Tenant in obtaining any such approval. Tenant’s proportionate share of
signage shall not be expanded if Tenant exercises its right to lease any Expansion Space hereunder.
Tenant shall be solely responsible for the cost of and performance of all maintenance repair and
replacement of its signage during the Term (as may be extended hereunder).

ARTICLE 34

MISCELLANEOUS

     Landlord and Tenant further covenant with each other that:

     (a) All rights and remedies of Landlord under this Lease shall be cumulative and none
shall exclude any other rights and remedies allowed by law.

     (b) All payments becoming due under this Lease or under any work order or other
agreement relating to the Premises shall be considered as rent, and if unpaid when due shall
bear interest from such date until paid at the rate of two percent (2%) per annum in excess
of the corporate base rate in effect from time to time at Bank One, Illinois, N.A. (unless a
lesser rate shall then be the maximum rate permissible by law with respect thereto, in which
event such lesser rate shall be charged).

     (c) The word “Tenant” wherever used herein shall be construed to mean Tenants in all
cases where there is more than one Tenant, and the necessary grammatical changes
required to make the provisions hereof apply either to corporations or individuals, men
or women, shall in all cases be assumed as though in each case fully expressed.

     (d) Each of the provisions of this Lease shall extend to and shall, as the case may
require, bind or inure to the benefit, not only of Landlord and of Tenant, but also of their
re-

31

 

spective heirs, legal representatives, successors and assigns, provided this clause shall
not permit any assignment contrary to the provisions of Article 27 hereof.

     (e) All of the representations and obligations of Landlord are contained herein, and no
modification, waiver or amendment of this Lease or of any of its conditions or provisions
shall be binding upon the Landlord unless in writing signed by Landlord or by a duly
authorized agent of Landlord empowered by a written authority signed by Landlord.

     (f) Submission of this instrument for examination shall not bind Landlord in any
manner, and no lease or obligation on Landlord shall arise until this instrument is signed
and delivered by Landlord and Tenant.

     (g) No rights to light or air over any property, whether belonging to Landlord or any
other person, are granted to Tenant by this Lease.

     (h) Sectional headings in this Lease are solely for convenience of reference and shall
not in any way limit or amplify the terms and provisions hereof.

     (i) The laws of the State of Illinois shall govern the validity, performance and
enforcement of this Lease. The invalidity or unenforceability of any provision of this
Lease shall not offset or impair any other provision. If any provision of this Lease is
capable of two constructions, one of which would render the provision invalid and the other
of which would make the provision valid, then the provision shall have the meaning which
renders it valid.

     (j) Landlord’s title is and always shall be paramount to the title of Tenant. Nothing
herein contained shall empower Tenant to commit or engage in any act which can, shall or may
encumber the title of Landlord.

     (k) Neither this Lease, nor any memorandum, affidavit or other writing with respect
thereto, shall be recorded by Tenant or by anyone acting through, under or on behalf of
Tenant, and the recording thereof in violation of this provision shall make this Lease null
and void at Landlord’s election.

     (l) Nothing contained in this Lease shall be deemed or construed by the parties hereto
or by any third party to create the relationship of principal and agent, partnership, joint
venture or any association between Landlord and Tenant, it being expressly understood and
agreed that neither the method of computation of Rent nor any act of the parties hereto
shall be deemed to create any relationship between Landlord and Tenant other than the
relationship of landlord and tenant.

     (m) Landlord shall have the right to apply payments received from Tenant pursuant to
this Lease (regardless of Tenant’s designation of such payments) to satisfy any obligations
of Tenant hereunder, in such order and amounts, as Landlord in its sole discretion, may
elect.

32

 

     (n) All indemnities, covenants and agreements of Tenant contained herein which inure to
the benefit of Landlord shall be construed to also inure to the benefit of Landlord’s
partners, officers, agents and employees.

     (o) If Landlord or Tenant fails to perform any of its obligations hereunder, and such
failure is due in whole or in part to any strike, lockout, labor trouble, civil disorder,
failure of power, restrictive governmental laws and regulations, riots, insurrections, war,
fuel shortages, accidents, casualties, acts of God, acts caused directly or indirectly by
the other party hereto (or its agents, employees, contractors, licensees or invitees) or any
other cause beyond the reasonable control of Landlord or Tenant, as the case may be, then
such party shall not be deemed in default under this Lease as a result of such failure and
the time for performance by it provided for herein shall be extended by the period of delay
resulting from such cause.

     (p) Landlord and Tenant each shall and hereby does waive trial by jury in any action,
proceeding or counterclaim brought by Landlord against Tenant or by Tenant against Landlord
on any matters whatsoever arising out of or in any way connected with this Lease, the
relationship of Landlord and Tenant, Tenant’s use or occupancy of the Premises or any claim
of injury or damage.

     (q) Landlord agrees that no consent of Landlord required under this Lease or the rules
and regulations now or hereafter applicable to Tenant shall be unreasonably withheld,
delayed or conditioned.

ARTICLE 35

EXCULPATION

     Any obligation of Landlord, or its agent, under or with respect to this Lease or the Building
shall be enforceable only against and payable out of Landlord’s interest in the Building and
Property, and Tenant hereby agrees that neither Tenant nor any other person shall have or may
assert any right, recourse or remedy to or against Landlord or its agent or any assets of Landlord,
except to the extent of their respective interests in the Building and the Property; and no
officer, shareholder, director, employee, partner, trustee or beneficiary of Landlord or its agent
assumes or shall have any personal liability of any kind whatsoever hereunder.

ARTICLE 36

LATE PAYMENT

     Tenant hereby acknowledges that late payment by Tenant to Landlord of Rent and other sums due
hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact number of
which will be extremely difficult to ascertain. Such costs include, but are not limited to
processing
and accounting charges, and late charges which may be imposed on Landlord by the terms of any
mortgage or deed of trust covering the Premises. Accordingly, if any installment of Rent or any
other sum due from Tenant hereunder shall not be received by Landlord or Landlord’s designee within
ten (10) days after such amount shall be due, Tenant shall pay to Landlord a monthly late

33

 

charge
equal to five percent (5%) of such overdue amount or the maximum allowed by Law, whichever is less.
The parties hereby agree that such late charge represents a fair and reasonable estimate of the
costs Landlord will incur by reason of late payment by Tenant. Acceptance of such late charge by
Landlord shall in no event constitute waiver of Tenant’s default with respect to such overdue
amount, nor prevent Landlord from exercising any of the other rights and remedies granted
hereunder.

ARTICLE 37

COVENANT OF QUIET ENJOYMENT

     Landlord agrees that Tenant, on paying the Rent, additional charges and other payments herein
reserved and on keeping, observing and performing all of the other terms, covenants, conditions,
provisions and agreements herein contained on the part of Tenant to be kept, observed and
performed, shall, during the Term of this Lease, peaceably and quietly have, hold and enjoy the
Premises subject to the terms, covenants, conditions, provisions and agreements hereof, free from
hindrance by Landlord or any other person claiming by, through, or under Landlord.

ARTICLE 38

OPTIONS TO EXTEND

     (A) Landlord grants to Tenant the right and option to extend the Term of this Lease for the
first or both of two (2) consecutive terms of one (1) year each (each an “Initial Extension Term”
and collectively the “Initial Extension Terms”). The option to renew for an Initial Extension Term
must be exercised by Tenant no later than six (6) months prior to the termination of the Term or
the first Initial Extension Term, as applicable, by giving Landlord written notice thereof. The
extension of the Term during the Initial Extension Terms shall be subject to all terms and
conditions of this Lease except that the Rent shall be based on $12.60 per rentable square foot and
this Section 38(A) shall not be applicable to the Initial Extension Terms.

     (B) Landlord grants to Tenant the further right and option to extend the Term of this Lease,
as extended through the second Initial Extension Term, for an additional term of five (5) years
(the “Final Extension Term”) commencing after the second Initial Extension Term. The option to
renew for the Final Extension Term must be exercised by Tenant no later than six (6) months prior
to the termination of the second Initial Extension Term by giving Landlord written notice thereof,
subject to Section 39(A) below. The extension of the Term during the Final Extension Term shall
be subject to all terms and conditions of this Lease, except that the Rent shall be as set forth
hereinbelow and this Section 38(B) shall not be applicable to the Final Extension Term. Tenant
shall pay Rent during the Final Extension Term as follows:

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	 	 	Rate	 
	Period	 	PSF	 
	Month 1-12
	 	$	12.92	 
	Month 13-24
	 	$	13.24	 
	Month 25-36
	 	$	13.57	 
	Month 37-48
	 	$	13.91	 
	Month 49-60
	 	$	14.26	 

ARTICLE 39

OPTIONS TO EXPAND AND REDUCE PREMISES

     (A) Landlord grants to Tenant, subject to Section 30(B) below, the right and option from time
to time, subject to the limitation set forth below, through the sixth (6th) month of the
second Initial Extension Term to expand the Premises to include increments of 25,000 rentable
square feet as designated by Tenant (each increment an “Expansion Space”) for the remainder of the
Term, as extended, as set forth herein. Tenant shall be allowed to exercise the foregoing right to
lease increments of Expansion Space up to five (5) times. Each Expansion Space located on a floor
of the Building on which Tenant then leases space shall be contiguous to said space and shall be
subject to availability based on use by Landlord or any other tenant of Landlord, but in no event
shall any Expansion Space be located on the fourth (4th) floor of the Building. This
option to expand the Premises from time to time to include an Expansion Space must be exercised by
Tenant by giving Landlord at least ninety (90) days prior written notice thereof. The expansion of
the Premises shall be subject to all terms and conditions of this Lease, including, without
limitation, the payment of Rent and Rent adjustments as set forth herein. From and after the
effective date of the exercise by Tenant of its right to lease an Expansion Space as set forth
above, the Premises shall be deemed to include such Expansion Space for all purposes under this
Lease, including, without limitation, Article 3, and Tenant’s Proportionate Share shall be adjusted
accordingly. Notwithstanding anything to the contrary set forth herein, in the event Tenant elects
to lease an Expansion Space during the first six (6) months of the second Initial Extension Term,
said election shall automatically be deemed an election to further extend the Term for the Final
Extension Term in accordance with Section 38 (B) above.

     (B) Landlord grants to Tenant the right and option to reduce the Premises by increments of
50,000 useable square feet (each a “Reduction Space”) effective as of the commencement of either or
both of the Initial Extension Terms and/or the Final Extension Term as set forth herein. Such
election shall be exercised only once prior to each Initial Extension Term. Each reduction
hereunder involving a Reduction Space which is less than all of the space Tenant then leases on a
floor of the Building shall not result in the Premises including spaces on a single floor which are
not contiguous to each other. This option to reduce the Premises must be exercised by Tenant by
giving Landlord written notice thereof at least ninety (90) days prior to the expiration of the
Term or the first or second Initial Extension Term, as applicable. From and after the effective
date of each exercise by
Tenant of its right to reduce the Premises as set forth above, the Premises shall be deemed not to
include such Reduction Space, and Tenant’s Proportionate Share shall be adjusted accordingly.
Notwithstanding anything to the contrary set forth herein, (i) in the event Tenant elects to reduce
the Premises hereunder, Tenant shall thereafter have no further right to expand the Premises as set
forth in Section 39(A) above, and (ii) in the event Tenant elects to reduce the Premises such that
Tenant

35

 

then leases less than 120,000 useable square feet hereunder, Rent shall be readjusted and
determined as set forth hereinbelow. Within fifteen (15) days after Tenant’s election to exercise
the option to reduce the Premises which has the effect of reducing it below 120,000 useable square
feet, Landlord and Tenant shall attempt to agree upon the fair market rental value of the Premises
which shall constitute the Rent after the effective date thereof. If Landlord and Tenant cannot
agree upon such fair market rental value of the reduced Premises, then within fifteen (15) days
from the expiration of such fifteen (15) day period, Landlord and Tenant shall each select and
notify the other of the name of an “Evaluator,” who, for purposes of this Lease, shall be an
independent and impartial real estate appraiser reasonably acceptable to both parties and not
previously retained by either party, having more than ten (10) years experience in the leasing and
valuation of properties of the character and in the same general area as the Building and shall
also be qualified as an M.A.I. appraiser. Each Evaluator shall promptly proceed (i.e., within
fifteen (15) days after their selection by each party) to make a separate determination of the fair
market rental value of the reduced Premises for the remaining Term, as theretofore extended, taking
into account the rental value of similarly situated properties in the same general area as the
Premises and used for similar purposes, and each shall deliver to both Landlord and Tenant a copy
of its determination, each of which shall include therein all factors considered in reaching the
aforesaid fair market rental value. In analyzing said fair market rental value of the Premises, if
the higher of the determinations of the two Evaluators is not more than five percent (5%) greater
than the lower of the determinations, the parties agree that the average of the two determinations
shall be considered as the fair market rental value of the Premises and shall be conclusive and
binding upon Landlord and Tenant. If the higher of the said determinations is more than five
percent (5%) greater than the lower of the determinations, and Landlord and Tenant cannot, within
fifteen (15) days after their receipt of such determinations, agree upon the fair market rental
value of the Premises, then the two Evaluators shall promptly proceed to select a third Evaluator,
who shall determine which of the two fair market rental values submitted by the other two
Evaluators more accurately reflects the fair market rental value of the Premises and shall deliver
to both Landlord and Tenant a copy of such determination within fifteen (15) days after his or her
appointment as the third Evaluator. The parties agree that the third Evaluator’s determination as
aforesaid shall be considered as the fair market rental value of the reduced Premises, which shall
be conclusive and binding upon Landlord and Tenant. If the original two Evaluators shall fail to
agree upon the selection of a third Evaluator, the same shall be designated by the president of the
Chicago Board of Realtors, or any successor organization thereto. Landlord and Tenant shall each
pay the cost of their own Evaluator and shall share equally the fees of the third Evaluator, if
any. In the event Rent for the reduced Premises is not determined as of the effective date of the
reduction, Tenant shall continue paying the Rent in effect as of said date on a per square foot
basis until the Rent is determined as herein set forth; thereupon, Rent shall be adjusted, as
appropriate, beginning with the effective date of the reduction, and Tenant shall pay to Landlord
or Landlord shall pay to Tenant any amount thereof within ten (10) days after such determination as
necessary to reflect said determination.

36

 

     IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date first
set forth above.

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

	 	Name:
	 	/s/ JEFFREY T. SANFILIPPO
	

	 	 	 	 
	

	 	 	 	Jeffrey T. Sanfilippo, Executive Vice President
	 
	 	 	 	 
	 	 	TENANT:
	 
	 	 	 	 
	 	 	PANASONIC CORPORATION OF NORTH AMERICA, a Delaware

corporation
	 
	 	 	 	 
	

	 	Name:
	 	/s/ FUJIO TSUJI
	

	 	 	 	 
	

	 	 	 	Fujio Tsuji, Executive Vice President and

Chief Financial Officer

37

 

EXHIBIT A

PLAN OF PREMISES

 

 

 

 

 

 

EXHIBIT B

LEGAL DESCRIPTION

PARCEL ONE:

LOT 1 OF TEEPLE’S SUBDIVISION, BEING A SUBDIVISON OF PART OF THE NORTHWEST
QUARTER OF SECTION 32, TOWNSHIP 42 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING
TO THE PLAT THEREOF RECORDED JULY 14, 1972 AS DOCUMENT NO. 1232690 IN THE TOWNSHIP OF DUNDEE, KANE
COUNTY, ILLINOIS.

PARCEL TWO:

THAT PART OF THE NORTHWEST 1/4 OF SECTION 32, TOWNSHIP 42 NORTH, RANGE 8 EAST OF THE THIRD
PRINCIPAL MERIDIAN, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID NORTHWEST 1/4;
THENCE NORTH 01 DEGREES, 52 MINUTES, 53 SECONDS EAST, ALONG THE WEST LINE OF SAID NORTHWEST 1/4, A
DISTANCE OF 888.16 FEET TO THE NORTHWEST CORNER, AS MONUMENTED, OF TEEPLE’S SUBDIVISION, BEING A
SUBDIVISION OF PART OF THE NORTHWEST 1/4 OF SECTION 32, TOWNSHIP AND RANGE AFORESAID, FOR THE POINT
OF BEGINNING; THENCE SOUTH 88 DEGREES, 15 MINUTES, 29 SECONDS EAST, ALONG THE NORTH LINE, AS
MONUMENTED, AND THE EASTERLY EXTENSION OF SAID NORTH LINE OF
TEEPLE’S SUBDIVISION, A DISTANCE OF 467.60 FEET; THENCE NORTH 01 DEGREES, 52
MINUTES, 53 SECONDS EAST, PARALLEL WITH THE SAID WEST LINE OF THE NORTHWEST 1/4, A DISTANCE OF
466.69 FEET; THENCE NORTH 88 DEGREES, 15 MINUTES, 29 SECONDS WEST, PARALLEL WITH THE SAID NORTH
LINE, AS MONUMENTED, OF SAID TEEPLE’S SUBDIVISION, A DISTANCE OF 467.60 FEET TO THE AFORESAID WEST
LINE OF THE NORTHWEST 1/4; THENCE SOUTH 01 DEGREES, 52 MINUTES, 53 SECONDS WEST, ALONG SAID WEST
LINE, A DISTANCE OF 466.69 FEET TO THE POINT OF BEGINNING, BEING SITUATED IN DUNDEE TOWNSHIP, KANE
COUNTY, ILLINOIS, LESS AND EXCEPT THAT PART CONVEYED BY DEED RECORDED JULY 20, 1989 AS DOCUMENT
1985603 TO THE ILLINOIS STATE TOLL HIGHWAY AUTHORITY DESCRIBED AS FOLLOWS: COMMENCING AT THE
SOUTHWEST CORNER OF SAID NORTHWEST 1/4 OF SECTION 32; THENCE NORTHERLY ALONG THE WEST LINE OF SAID
NORTHWEST 1/4 OF SECTION 32, A DISTANCE OF 536.65 FEET PER PLAT DATED JUNE 20, 1988 (DISTANCE
RECORDED ON PLAT NO. 1232690 DATED JUNE 15, 1972, BEING 533.50 FEET) TO A POINT; THENCE CONTINUING
NORTHERLY ALONG SAID WEST LINE OF THE NORTHWEST 1/4 OF SECTION 32, A DISTANCE OF 351.51 FEET PER
PLAT DATED JUNE 20, 1988 (DISTANCE RECORDED ON PLAT NO. 1232690 DATED JUNE 15, 1972, BEING 351.00
FEET) TO A POINT OF BEGINNING; THENCE NORTHERLY ALONG THE LAST DESCRIBED LINE EXTENDED, A DISTANCE
OF 466.69 FEET TO A POINT; THENCE EASTERLY ALONG A LINE FORMING AN ANGLE OF 89 DEGREES, 51 MINUTES,
38 SECONDS TO THE RIGHT OF THE LAST DESCRIBED LINE EXTENDED, A DISTANCE OF 333.54 FEET TO A POINT;
THENCE SOUTHWESTERLY ALONG A LINE FORMING AN ANGLE OF 168 DEGREES, 06 MINUTES, 48 SECONDS TO THE
RIGHT OF THE LAST DESCRIBED LINE EXTENDED, A DISTANCE OF 249.10 FEET TO A POINT; THENCE CONTINUING
SOUTHWESTERLY ALONG A LINE FORMING AN ANGLE OF 23 DEGREES, 25 MINUTES, 33 SECONDS TO THE LEFT OF
THE LAST DESCRIBED LINE EXTENDED, A DISTANCE OF 48.10 FEET TO A POINT; THENCE SOUTHERLY ALONG A
LINE FORMING AN ANGLE OF 54 DEGREES, 32 MINUTES, 52 SECONDS TO THE LEFT OF THE LAST DESCRIBED LINE
EXTENDED, A DISTANCE OF 387.58 FEET TO A POINT; THENCE WESTERLY ALONG A LINE FORMING AN ANGLE OF 89
DEGREES, 51 MINUTES, 37 SECONDS TO THE RIGHT OF THE LAST DESCRIBED LINE EXTENDED, A DISTANCE OF
50.72 FEET TO THE POINT OF BEGINNING; EXCEPTING THEREOF, THE RIGHT OF WAY OF THE EXISTING PUBLIC
ROAD.

PARCEL THREE:

THE SOUTH 300 FEET OF THE EAST 475 FEET OF THE NORTHWEST 1/4 OF SECTION 32,
TOWNSHIP 42 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, (EXCEPT PART DEDICATED TO CITY OF
ELGIN BY PLAT RECORDED NOV. 27, 1989 AS DOCUMENT 2010689) IN THE TOWNSHIP OF DUNDEE, KANE COUNTY,
ILLINOIS.

 

 

PARCEL FOUR:

THE NORTHWEST 1/4 OF SECTION 32, TOWNSHIP 42 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN,
(EXCEPTING THEREFROM: THE NORTH 1/2 OF THE NORTHWEST 1/4 OF SAID NORTHWEST 1/4, AND EXCEPT THE
SOUTH 300.00 FEET OF THE EAST 475.00 FEET OF SAID NORTHWEST 1/4, AND EXCEPT TEEPLE’S SUBDIVISION
AND A FIVE ACRE PARCEL, DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID NORTHWEST
1/4; THENCE NORTH 01 DEGREES, 52 MINUTES, 53 SECONDS EAST, ALONG THE WEST LINE OF SAID NORTHWEST
1/4, A
DISTANCE OF 536.65 FEET TO THE SOUTH LINE, AS MONUMENTED, OF SAID TEEPLE’S
SUBDIVISION FOR THE POINT OF BEGINNING; THENCE SOUTH 88 DEGREES, 10 MINUTES, 19 SECONDS EAST, ALONG
SAID SOUTH LINE, A DISTANCE OF 237.29 FEET TO THE SOUTHEAST CORNER, AS MONUMENTED OF SAID TEEPLE’S
SUBDIVISION; THENCE NORTH 01 DEGREES, 46 MINUTES, 35 SECONDS EAST, ALONG THE EAST LINE, AS
MONUMENTED, OF SAID TEEPLE’S SUBDIVISION, A DISTANCE OF 351.86 FEET TO THE NORTHEAST CORNER, AS
MONUMENTED, OF SAID TEEPLE’S SUBDIVISION; THENCE SOUTH 88 DEGREES, 15 MINUTES, 29 SECONDS EAST,
ALONG THE EASTERLY EXTENSION OF THE NORTHERLY LINE, AS MONUMENTED, OF SAID TEEPLE’S
SUBDIVISION, A DISTANCE OF 230.95 FEET; THENCE NORTH 01 DEGREES, 52 MINUTES, 53 SECONDS EAST,
PARALLEL WITH THE SAID WEST LINE OF THE NORTHWEST 1/4, A DISTANCE OF 466.69 FEET; THENCE NORTH 88
DEGREES, 15 MINUTES, 29 SECONDS WEST, PARALLEL WITH THE NORTH LINE, AS MONUMENTED, OF SAID TEEPLE’S
SUBDIVISION, A DISTANCE OF 467.60 FEET TO THE SAID WEST LINE OF THE NORTHWEST 1/4; THENCE SOUTH 01
DEGREES, 52 MINUTES, 53 SECONDS WEST, ALONG SAID WEST LINE, A DISTANCE OF 818.20 FEET TO THE POINT
OF BEGINNING, AND EXCEPT THAT PART LYING NORTHERLY AND NORTHEASTERLY OF THE SOUTHWESTERLY LINE OF
THE ILLINOIS STATE TOLL HIGHWAY COMMISSION PARCEL NO. N-4D-57, DESCRIBED AS FOLLOWS: COMMENCING AT
THE SOUTHEAST CORNER OF SAID NORTHWEST 1/4; THENCE NORTH 01 DEGREES, 51 MINUTES, 04 SECONDS EAST,
ALONG THE EAST LINE OF SAID NORTHWEST 1/4, A DISTANCE OF 616.24 FEET FOR THE POINT OF BEGINNING AND
BEING ON THE SOUTHWESTERLY LINE, AS MONUMENTED, OF SAID PARCEL NO. N-4D-57; THENCE CONTINUING ALONG
THE LAST DESCRIBED COURSE, A DISTANCE OF 346.02 FEET TO THE NORTHEASTERLY LINE,
AS MONUMENTED, OF SAID PARCEL NO. N-4D-57; THENCE NORTH 58 DEGREES, 15 MINUTES, 38 SECONDS WEST,
ALONG SAID NORTHEASTERLY LINE, A DISTANCE OF 2052.26 FEET TO THE SOUTH LINE OF THE NORTH 1/2 OF THE
NORTHWEST 1/4 OF SAID NORTHWEST 1/4; THENCE NORTH 88 DEGREES, 13 MINUTES, 58 SECONDS WEST, ALONG
SAID SOUTH LINE, A DISTANCE OF 600.50 FEET TO THE SOUTHWESTERLY LINE AS MONUMENTED, OF SAID PARCEL
NO. N-4D-57; THENCE SOUTH 58 DEGREES, 15 MINUTES, 38 SECONDS EAST, ALONG SAID SOUTHWESTERLY LINE, A
DISTANCE OF 2744.88 FEET TO THE POINT OF BEGINNING, AND ALSO EXCEPT THE ILLINOIS TOLL
HIGHWAY COMMISSION PARCEL NO. N-4D-57.2, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER
OF SAID NORTHWEST 1/4; THENCE SOUTH 01 DEGREES, 52 MINUTES, 53 SECONDS WEST, ALONG THE WEST LINE OF
SAID NORTHWEST 1/4, A DISTANCE OF 663.64 FEET TO THE SOUTHWEST CORNER OF THE NORTH 1/2 OF THE
NORTHWEST 1/4 OF SAID NORTHWEST 1/4, HEREINAFTER REFERRED TO AS POINT C; THENCE CONTINUING ALONG
THE LAST DESCRIBED
COURSE, A DISTANCE OF 707.96 FEET; THENCE SOUTH 88 DEGREES, 01 MINUTES, 51 SECONDS EAST,
PERPENDICULAR TO THE CENTER LINE OF RANDALL ROAD, AS PER DEDICATION OF THE RIGHT OF WAY FOR PUBLIC
ROAD PURPOSES, DOCUMENT NO. 576570, FILED IN THE RECORDER’S OFFICE OF KANE COUNTY, ILLINOIS ON
MARCH 21, 1947, A DISTANCE OF 30.19 FEET TO THE EAST RIGHT OF WAY LINE OF SAID RANDALL ROAD FOR THE
POINT OF BEGINNING; THENCE NORTH 06 DEGREES, 44 MINUTES, 20 SECONDS EAST, A DISTANCE OF 710.74 FEET
TO A POINT ON THE SOUTH LINE OF THE NORTH 1/2 OF THE NORTHWEST 1/4 OF SAID NORTHWEST 1/4, THAT IS
90.37 FEET, AS MEASURED ALONG SAID SOUTH LINE, EAST OF AFORESAID POINT C; THENCE NORTH 88 DEGREES,
13 MINUTES, 58 SECONDS WEST, ALONG SAID SOUTH LINE A DISTANCE OF 59.10 FEET

 

 

TO THE SAID EAST RIGHT
OF WAY LINE OF RANDALL ROAD; THENCE SOUTH 01 DEGREES, 58 MINUTES, 09 SECONDS WEST, ALONG SAID RIGHT
OF WAY LINE, A DISTANCE OF 708.07 FEET TO THE POINT OF BEGINNING), (ALSO EXCEPTING THEREFROM THAT
PART OF THE LAND CONVEYED TO ILLINOIS STATE TOLL HIGHWAY AUTHORITY BY DEED RECORDED SEPTEMBER 29,
1988 AS DOCUMENT 1934642) (AND ALSO EXCEPT THAT PART DEDICATED TO CITY OF ELGIN BY PLAT RECORDED
NOV.
27, 1989 AS DOCUMENT 2010689) IN DUNDEE TOWNSHIP, KANE COUNTY, ILLINOIS.

PARCEL FIVE:

THE NORTH 468.03 FEET, AS MEASURED ALONG THE EAST AND WEST LINES OF THE SOUTHWEST 1/4 OF SECTION
32, TOWNSHIP 42 NORTH, RANGE 8 EAST OF THE THIRD PRINCIPAL MERIDIAN, (EXCEPT PART CONVEYED BY DEED
RECORDED JULY 12, 1990 AS DOCUMENT 90K36232 TO COUNTY OF KANE) (AND ALSO EXCEPT PART DEDICATED TO
CITY OF ELGIN BY PLAT RECORDED NOV. 27, 1989 AS DOCUMENT 2010689) (AND ALSO EXCEPT PART CONVEYED BY
DEED RECORDED APRIL 5, 1995 AS DOCUMENT 95K018390 TO COUNTY OF KANE) IN THE CITY OF ELGIN, KANE
COUNTY, ILLINOIS.

 

 

EXHIBIT C

Rules and Regulations

     To the extent that there is any inconsistency between the provisions of the Lease and these
Rules and Regulations, the provisions of the Lease shall control.

     (1) The sidewalks, halls, passages, exits, entrances, elevators and stairways of the Building
shall not be obstructed by any of the tenants or used by them for any purpose other than for
ingress to and egress from their respective premises. The halls, passages, exits, entrances,
elevators and stairways are not for the general public, and Landlord shall in all cases retain the
right to control and prevent access thereto of all persons whose presence in the reasonable
judgment of Landlord would be prejudicial to the safety, character, reputation and interests of the
Building and its Tenants. No Tenant and no employee or invitee of any Tenant shall go upon the
roof of the Building without the prior written consent of Landlord.

     (2) No sign, placard, picture, name, advertisement or notice, visible from the exterior of any
Tenant’s premises shall be inscribed, painted, affixed or otherwise displayed by any Tenant on any
part of the Building without the prior written consent of Landlord, which consent will not be
unreasonably withheld, except as set forth in the Lease. Landlord will adopt and furnish to Tenant
general guidelines relating to signs inside the Building on the office floors. Tenant agrees to
conform to such guidelines, but may request approval of Landlord for modifications, which approval
will not be unreasonably withheld. All approved signs or lettering on doors shall be printed,
painted, affixed or inscribed at the expense of the Tenant by a person approved by Landlord, which
approval will not be unreasonably withheld. Material visible from outside the Building will not be
permitted.

     (3) Tenant shall not allow a fire or bankruptcy sale or any auction to be held on the premises
or allow the premises to be used for the storage of merchandise held for sale to the general
public.

     (4) No Tenant shall allow the premises to be used for lodging, nor shall cooking be done or
permitted by any Tenant on the premises, except the use by the Tenant of Underwriters’ Laboratory
approved equipment for brewing coffee, tea, hot chocolate and similar beverages and vending
machines and microwave ovens for use by Tenant’s employees and personnel shall be permitted,
provided that such use is in accordance with all applicable federal, state and city laws, codes,
ordinances, rules and regulations.

     (5) No Tenant shall alter any lock or install a new or additional lock or any bolt on any door
of its premises without the prior written consent of Landlord. Tenant shall in each case furnish
Landlord with a key for any such lock. Each Tenant, upon the termination of its tenancy, shall
deliver to Landlord all keys and combinations to doors in the Building which shall have been
furnished to Tenant.

     (6) Landlord shall designate how all office equipment, furniture, appliances and other large
objects or property (“Equipment”) shall be moved in and/or out of the Building. Heavy objects

 

 

shall,
if requested by Landlord, stand on wood strips of such thickness as is necessary to properly
distribute the weight. Landlord will not be responsible for loss of or damage to any such
Equipment from any cause, and all damage done to the Building by moving or maintaining such
Equipment shall be repaired at the expense of Tenant.

     (7) No Tenant shall use or keep in the premises of the Building any kerosene, gasoline or
inflammable or combustible fluid or material or use any method of heating or air conditioning other
than that supplied by Landlord, without Landlord’s prior written approval. No Tenant shall use or
keep or permit to be used or kept any foul obnoxious gas or substances in the premises, or permit
or suffer the premises to be occupied or used in a manner unreasonably offensive or objectionable
to Landlord or to other occupants of the Building by reason of noise, odors, or vibrations, or
unreasonably interfere in any way with other tenants or those having business therein.

     (8) Landlord shall have the right, exercisable with 30 day advance written notice and without
liability to any Tenant, to change the name and street address of the Building.

     (9) Landlord reserves the right to exclude from the Building any person who, in Landlord’s
reasonable opinion, has no legitimate business in the Building. Landlord shall in no case be
liable for damages for any error with regard to the admission to or exclusion from the Building of
any person. In the case of invasion, mob, riot, public excitement or other circumstances rendering
such action advisable in Landlord’s opinion, Landlord reserves the right to prevent access to the
Building during the continuance of the same by such action as Landlord may deem appropriate,
including closing doors.

     (10) The directory of the Building will be provided for the display of the name and location
of Tenants. Any additional name which Tenant shall desire to place upon said bulletin board must
first be approved by Landlord in writing.

     (11) No curtains, draperies, blinds, shutters, shades, screens or other coverings, hangings or
decorations shall be attached to, hung or placed in, or used in connection with any window of the
Building without the prior written consent of Landlord, and such items shall be installed as
instructed by Landlord.

     (12) Each Tenant shall see that the doors of its premises are closed and locked and that all
water faucets, water apparatus and utilities are shut off before Tenant or Tenant’s employees leave
the premises, so as to prevent waste or damage, and for any default or carelessness in this regard
Tenant shall made good all injuries sustained by other tenants or occupants of the Building or
Landlord. All Tenants shall keep the doors to the Building corridors closed at all times except
for ingress and egress.

     (13) The toilet rooms, toilets, urinals, wash basins and other apparatus shall not be used for
any purpose other than that for which they were constructed, no foreign substance of any kind
whatsoever shall be thrown therein and the expense of any breakage, stoppage or damage resulting
from the violation of this rule shall be borne by the Tenant who, or whose employees or invitees,
shall have caused it.

 

 

     (14) Except with the prior written consent of Landlord, no Tenant shall sell, or permit the
sale at retail, of newspapers, magazines, periodicals, theatre tickets or any other goods or
merchandise to the general public in or on the premises, nor shall any Tenant carry on, or permit
or allow any employee or other person to carry on, the business of stenography, typewriting or any
similar business in or from the premises for the service or accommodation of occupants of any other
portion of the Building, nor shall the premises of any Tenant be used for manufacturing of any
kind, or any business or activity other than that specifically provided for in such Tenant’s lease.

     (15) No Tenant shall install any radio or television antenna, loudspeaker, or other device on
the roof or exterior walls of the Building, without Landlord’s prior written consent.

     (16) Hand trucks shall not be used in any space or public halls of the Building, either by any
Tenant or others, except those equipped with rubber tires and side guards or such other
material-handling equipment as Landlord may approve. No other vehicles of any kind shall be
brought by any Tenant into the Building or kept in or about the premises.

     (17) Tenant agrees to coordinate all moving activity of office equipment and furniture in and
out of the Building with Landlord or Landlord’s agent. Tenant acknowledges that any attempt to
bring in or take out any office equipment or furniture from the Building without prior written
approval of Landlord or Landlord’s agent will be prevented by the on-site security guard.

     (18) Each Tenant shall store all its trash and garbage within its premises. No material shall
be placed on the trash boxes, receptacles or common areas if such material is of such nature that
it may not be disposed of in the ordinary and customary manner of removing and disposing of trash
and garbage in the Elgin area, without being in violation of any law or ordinance governing such
disposal. All garbage and refuse disposal shall be made only through entryways and elevators
provided for such purposes and at such times as Landlord shall designate.

     (19) Canvassing, soliciting, distribution of handbills, or any other written material peddling
in the Building are prohibited, and each Tenant shall cooperate to prevent the same.

     (20) Tenant agrees to abide by all governmental rules and regulations pertaining to
thermostatic control of the temperature on the Premises. Air conditioning services shall be
provided per the Lease.

     (21) Tenant agrees not to allow or keep any animals or pets of any kind on the premises,
except those seeing-eye dogs which are for the direct purpose of aiding and assisting the visually
impaired.

     (22) The requirements of the Tenants will be attended to only upon application by telephone,
in person or in writing at the office of Landlord.

     (23) These Rules and Regulations are in addition to, and shall not be construed to in any way
modify or amend, in whole or in part, the terms, covenants, agreements and conditions of any lease
of premises in the Building.

 

 

     (24) Landlord reserves the right to make such other and reasonable rules and regulations as in
its judgment may from time to time be needed for the safety, care and cleanliness of the Building,
and for the preservation of good order therein.

     (25) Landlord reserves the right to charge tenants and other occupants of the Building a
reasonable fee for services or work performed for less than all tenants of the Building.exv10w2

 

EXHIBIT 10.2

WAREHOUSE LEASE

1707 NORTH RANDALL ROAD

ELGIN, ILLINOIS

DATE: April 15, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	          Introductory Article	 	 	 	 
	ARTICLE 1
	 	DEMISED PREMISES; TERM	 	 	2	 
	ARTICLE 2
	 	RENT	 	 	3	 
	ARTICLE 3
	 	DELETED	 	 	3	 
	ARTICLE 4
	 	USE	 	 	3	 
	ARTICLE 5
	 	SERVICES	 	 	5	 
	ARTICLE 6
	 	POSSESSION	 	 	7	 
	ARTICLE 7
	 	CONDITION OF PREMISES	 	 	7	 
	ARTICLE 8
	 	REPAIRS	 	 	8	 
	ARTICLE 9
	 	ALTERATIONS	 	 	9	 
	ARTICLE 10
	 	COVENANT AGAINST LIENS	 	 	10	 
	ARTICLE 11
	 	DAMAGE OR DESTRUCTION BY FIRE OR CASUALTY	 	 	10	 
	ARTICLE 12
	 	INSURANCE	 	 	11	 
	ARTICLE 13
	 	DELETED	 	 	12	 
	ARTICLE 14
	 	CONDEMNATION	 	 	13	 
	ARTICLE 15
	 	WAIVER OF CLAIMS	 	 	13	 
	ARTICLE 16
	 	NONWAIVER	 	 	14	 
	ARTICLE 17
	 	WAIVER OF NOTICE	 	 	14	 
	ARTICLE 18
	 	LANDLORD’S REMEDIES	 	 	14	 
	ARTICLE 19
	 	SURRENDER OF POSSESSION	 	 	16	 
	ARTICLE 20
	 	HOLDING OVER	 	 	17	 
	ARTICLE 21
	 	COSTS, EXPENSES AND ATTORNEYS’ FEES	 	 	17	 
	ARTICLE 22
	 	COMPLIANCE WITH LAWS	 	 	18	 
	ARTICLE 23
	 	CERTAIN RIGHTS RESERVED BY LANDLORD	 	 	18	 
	ARTICLE 24
	 	ESTOPPEL	 	 	19	 
	ARTICLE 25
	 	RULES AND REGULATIONS	 	 	20	 
	ARTICLE 26
	 	PARKING	 	 	20	 
	ARTICLE 27
	 	ASSIGNMENT AND SUBLETTING	 	 	20	 
	ARTICLE 28
	 	NOTICE	 	 	21	 
	ARTICLE 29
	 	DEFAULT UNDER OTHER LEASE	 	 	23	 
	ARTICLE 30
	 	CONVEYANCE BY LANDLORD	 	 	23	 
	ARTICLE 31
	 	SUBORDINATION OF LEASE	 	 	23	 
	ARTICLE 32
	 	BROKERS	 	 	24	 
	ARTICLE 33
	 	DELETED	 	 	24	 
	ARTICLE 34
	 	MISCELLANEOUS	 	 	24	 
	ARTICLE 35
	 	EXCULPATION	 	 	26	 
	ARTICLE 36
	 	LATE PAYMENT	 	 	26	 
	ARTICLE 37
	 	COVENANT OF QUIET ENJOYMENT	 	 	27	 

 

 

EXHIBITS

	 	 	 
	EXHIBIT A
	 	PLAN OF PREMISES
	 
	EXHIBIT B
	 	BUILDING RULES AND REGULATIONS

iv

 

 

WAREHOUSE LEASE

     THIS WAREHOUSE LEASE, made as of April 15, 2005, between JOHN B. SANFILIPPO & SON, INC., a
Delaware corporation (“Landlord”) and PANASONIC CORPORATION OF NORTH AMERICA, a Delaware
corporation (“Tenant”).

     WITNESSETH THAT, in consideration of the covenants and agreements hereinafter set forth,
Landlord hereby lets to Tenant and Tenant hereby leases from Landlord the Premises described
herein, on the following terms and conditions contained in this Lease:

INTRODUCTORY ARTICLE:

BASIC LEASE PROVISIONS

AND ENUMERATION OF EXHIBITS

     A. Basic Lease Provisions. The provisions of this Introductory Article are intended to be in
outline form and are addressed in detail in other Articles of this Lease.

LEASE TERM (Also see Article 1): Premises A: Eight (8) months

Premises B: Five (5) months and fifteen (15) days

COMMENCEMENT DATE (Also see Article 1): April 15, 2005

TERMINATION DATE (Also see Article 1): For Premises A, November 17, 2005; for Premises B,
September 1, 2005

RENTABLE SQUARE FOOTAGE: approximately 75,000 square feet (hereinafter

referred to as “Premises A” and depicted on Exhibit A); approximately 578,302 square
feet (hereinafter referred to as “Premises B” and depicted on Exhibit A;
Premises A and Premises B are collectively referred to herein as the “Premises”)

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     RENT (Also see Article 2):

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Rate	 	 	Annualized	 	 	Monthly Installment	 
	Period	 	PSF	 	 	Rent	 	 	of Rent	 
	Commencement Date -
	 	$	6.90	 	 	$	3,990,283.80	 	 	$	332,523.65	 
	Premises B Termination
Date
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Premises B Termination
	 	$	6.90	 	 	$	517,500.00	 	 	$	43,125.00	 
	Date — Premises A
Termination Date
	 	 	 	 	 	 	 	 	 	 	 	 

     (The rental amount set forth above shall be hereinafter referred to as “Rent”.)

     ADDITIONAL BROKER (Also see Article 32): Paine Wetzel Associates, Inc.

     B. Enumeration of Exhibits. The following exhibits and schedules are attached hereto and
incorporated herein by this reference, as though set forth in full herein:

	 	 	 
	EXHIBIT A

	 	Plan of Premises.
	 
	 	 
	EXHIBIT B

	 	Rules and Regulations
	 
	 	 
	SCHEDULE I

	 	Removable Equipment

ARTICLE 1

DEMISED PREMISES; TERM

     Landlord does hereby demise and lease to Tenant, and Tenant hereby accepts, those certain
spaces as shown on the plan attached hereto and made a part hereof as Exhibit A, located in the
warehouse building known as 1707 North Randall Road (the “Building”), situated on certain property
(including all easements appurtenant thereto) in Elgin, Illinois (the “Property”) for a term
commencing on the 15th day of April, 2005 and ending on the 1st day of September, 2005
(the “Premises B Term”) as to Premises B and on the 17th day of November, 2005 (the “Premises A
Term”, and, together with the Premises B Term sometimes referred to collectively as the “Term”),
unless sooner terminated as provided herein, subject to the terms, covenants, and agreements herein
contained.

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     Landlord agrees and acknowledges that the gate at the access to the Property from Fox Lane
shall not be removed, and shall continue to be operative as currently installed, during the Term;
however, the operation of the gate and guardhouse shall be subject to the reasonable rules and
regulations of Landlord, so long as such rules and regulations shall not prohibit access by Tenant
or its agents to the Premises.

     Notwithstanding anything set forth herein to the contrary, Tenant shall have the right to
terminate the Premises A Term and/or the Premises B Term, and Tenant’s obligations hereunder with
respect thereto, at any time upon ten (10) days prior written notice to Landlord. Notwithstanding
the foregoing, the effective date of Tenant’s termination of either Premises A Term or the Premises
B Term, after delivery of a ten (10) day termination notice, shall not be earlier than the
expiration of the ten (10) days plus one (1) full month of both the Premises A Term and the
Premises B Term.

ARTICLE 2

RENT

     Tenant shall pay to Landlord or Landlord’s agent at the office of Landlord or at such other
place as Landlord may from time to time designate, monthly Rent in the amount set forth in the
Introductory Article, payable in advance on the first day of each and every calendar month during
the Term. If the Term commences on a day other than the first day of a calendar month, or ends on
a day other than the last day of a calendar month, then the Rent for such fractional month shall be
prorated on the basis of 1/365th of the annual Rent for each day of such fractional month. Rent
shall be payable without any prior notice or demand therefor and without any deductions or set-offs
whatsoever, except as expressly set forth herein. The obligation for the timely and full payment
of Rent is independent of all the obligations of Landlord under this Lease, and no offset,
deduction or setoff shall be allowed or permitted unless otherwise specifically provided for in
this Lease.

ARTICLE 3

INTENTIONALLY DELETED

ARTICLE 4

USE

     (A) Tenant may use and occupy the Premises for general office and warehouse use and such other
uses as are conducted thereon as of the date hereof. Tenant may also use the Premises for any
other lawful purposes similar to those stated above with the prior written consent of Landlord.
Tenant shall not use or permit upon the Premises anything that will invalidate any policies of
insurance now or hereafter carried on the Building, materially impair the value of the Building and
Premises or any part thereof or materially increase the dangers, or pose unreasonable risk of harm,
to third parties (on or off of the Premises) arising from activities thereon. Tenant will pay all
extra insurance premiums which may be caused by the use which Tenant shall make of the Premises.

3

 

Tenant will not in any manner deface or injure the Building or any part thereof or overload
the floors of the Premises. Tenant will not do anything or permit anything to be done upon the
Premises in any way tending to create a public or private nuisance, or tending to disturb any other
tenant in the Building or the occupants of neighboring property or tending to injure the reputation
of the Building or commit waste thereon. Tenant will promptly and fully comply with all
governmental, health and police requirements and regulations respecting its use of the Premises.
Tenant will not use the Premises for lodging or sleeping purposes or for any immoral or illegal
purposes. Tenant shall not conduct nor permit to be conducted on the Premises any business which
is contrary to any of the laws of the United States of America or of the State of Illinois or which
is contrary to the ordinances of the City of Elgin. Tenant shall not at any time manufacture,
sell, or give away, and shall not at any time permit the manufacture, sale, or gift of any
spirituous, fermented, intoxicating or alcoholic liquors or controlled substances on the Premises,
except that the foregoing shall not be deemed to prohibit the occasional use of alcoholic beverages
for entertainment purposes, so long as Tenant has in full force and effect (and delivered to
Landlord a certificate of insurance therefor) a policy of host liquor liability or dram-shop
insurance in form and amounts at all times reasonably satisfactory to Landlord. Tenant shall not at
any time sell, purchase or give away, or permit the sale, purchase or gift of, food in any form on
the Premises, except for coffee service and vending machines for its employees or as otherwise
permitted by rules and regulations. The foregoing use prohibitions shall be deemed to apply to any
subtenant or assignee of Tenant without requirement of further or additional notice.

     (B) Tenant agrees that it will not use, handle, generate, treat, store or dispose of, or
permit the handling, generation, treatment, storage or disposal of any Hazardous Materials in, on,
under, around or above the Premises now or at any future time during the Term of the Lease in
violation of applicable laws and will indemnify, defend and save Landlord harmless from any and all
actions, proceedings, claims, costs, expenses and losses of any kind, including, but not limited
to, those arising from injury to any person, including death, damage to or loss of use or value of
real or personal property, and costs of investigation and cleanup arising as a result of the use of
Hazardous Materials on the Premises by Tenant or its subtenants and assigns during the Term hereof.
The term “Hazardous Materials”, when used herein, shall include, but shall not be limited to, any
substances, materials or wastes to the extent quantities thereof are regulated by the City of Elgin
or any other local governmental authority, the State of Illinois, or the United States of America
because of toxic, flammable, explosive, corrosive, reactive, radioactive or other properties that
may be hazardous to human health or the environment, including asbestos and including any materials
or substances that are listed in the United States Department of Transportation Hazardous Materials
Table, as amended, 49 C.F.R. 172.101, or in the Comprehensive Environmental Response, Compensation
and Liability Act, as amended, 42 U.S.C. subsections 9601 et seq., or the Resources Conservation
and Recovery Act, as amended, 42 U.S.C. subsections 6901 et seq., or any other applicable
governmental regulation imposing liability or standards of conduct concerning any hazardous, toxic
or dangerous substances, waste or material, now or hereafter in effect. Tenant does hereby
indemnify, defend and hold harmless the Landlord and its agents and their respective officers,
directors, beneficiaries, shareholders, partners, agents and employees and Landlord’s lender or
lenders holding a mortgage on the Property from all fines, suits, procedures, claims and actions of
every kind, and all costs associated therewith (including reasonable attorneys’ and consultants’
fees) arising by, through or under Tenant, its agents, subtenants, assigns, employees, contractors,
servants and invitees and out of or in any way connected with any deposit, spill, discharge or
other release of Hazardous Materials that occurs during the Term of this Lease, at or from the
Premises, or which arises at any time from

4

 

Tenant’s use or occupancy of the Premises, or from Tenant’s failure to provide all
information, make all submissions, and take all steps required by all applicable governmental
authorities. Landlord agrees and acknowledges that the foregoing indemnity by Tenant does not
apply to any liability arising from the acts or omissions of Landlord or other Tenants or occupants
of the Building or the agents or employees of any of the foregoing. Tenant’s obligations and
liabilities under this paragraph shall survive the expiration of the Term of this Lease. Tenant
acknowledges that it has had ample opportunity to inspect the Premises and perform any
environmental assessments it considers appropriate to determine the environmental condition of the
Premises, that Tenant has not relied on any representation of the Landlord regarding such
condition, and that Tenant has consulted its own experts and independently satisfied itself
regarding the environmental condition of the Premises.

ARTICLE 5

SERVICES

     Landlord shall provide, except as otherwise provided herein and subject to applicable
government codes, rules, regulations, and guidelines applicable thereto, and further subject to
Landlord’s inability to provide due to circumstances beyond Landlord’s reasonable control whether
mandatory or voluntary, the following services:

     (A) Air-cooling and heat to provide a temperature condition consistent with similar
buildings in the northwest suburban Chicago area, daily from 7:00 A.M. to 6:00 P.M. (Saturdays to
1:00 P.M.), Sundays and holidays excepted. Whenever heat-generating machines or equipment
installed by Tenant affect the temperature otherwise maintained by Landlord in the Premises,
Landlord shall be relieved of responsibility for maintaining the air conditioning standards
applicable to the Building, and in such event Tenant shall (1) discontinue use of such
heat-generating machines or equipment, or (2) install supplementary air conditioning units in the
Premises, the cost, installation, operation and maintenance of which shall be paid by Tenant.
Tenant agrees that at all times it will cooperate with Landlord and abide by all reasonable
regulations and requirements which Landlord may prescribe for the proper functioning of the
ventilating and air conditioning systems.

     (B) Water for drinking, lavatory and toilet purposes drawn through fixtures installed by the
Landlord, or by Tenant with Landlord’s written consent, from regular Building supply at the
prevailing temperature. Tenant shall pay Landlord at rates fixed by Landlord for water furnished
for any other purpose. Tenant shall not waste or permit the waste of water.

     (C) Electrical service to the Premises. Tenant agrees that if it purchases any lamps, bulbs,
ballasts and starters used in the Premises from anyone other than Landlord, all such items shall be
of the same type as those used in the Building. Landlord agrees that it shall provide Tenant use
of the existing supplemental electrical generator serving the Building reasonably adequate to
operate life safety systems such as, but not limited to, emergency lighting and security/fire
prevention controls, in the event standard electrical service to the Building becomes unavailable,
but Tenant acknowledges and agrees that Landlord shall not be responsible for repairing, replacing
or installing any new generator equipment except to the extent required to comply with any
applicable ordinances, codes or government regulations.

5

 

     (D) Security service including, without limitation, key card or similar secured entry system
at all times, with Tenant being responsible for the cost of any keys or identification cards
necessary for Tenant’s use of such system in excess of four hundred fifty (450) keys or cards
(including the keys or cards furnished to Tenant pursuant to the Office Lease (as hereinafter
defined)).

     (E) Access to (1) the rooftop of the Building and such other parts thereof as may be necessary
for the use, at Tenant’s sole cost and expense, of a satellite dish and/or antenna as currently
located thereon, and (2) cabling and conduit now installed as may be reasonably necessary in
connection with Tenant’s use and occupancy of the Premises, including, without limitation, such
reasonable access to all of the foregoing as may be necessary for the repair, maintenance or
replacement thereof by Tenant or its agents. Tenant hereby indemnifies and holds Landlord harmless
for any and all work conducted pursuant to this subparagraph (E) and agrees to promptly repair the
Building to the extent it is damaged by any such work. Tenant shall provide to Landlord the names
of the contractors that it employs to conduct such work and shall provide any other information
reasonably requested by Landlord including, but not limited to, insurance from the contractors
naming Landlord an additional insured.

     (F) Life safety systems, telecommunications equipment and cabling, and natural gas
distribution system, all as currently installed on the Building and the Property or upgraded by
Landlord.

     (G) Such additional services on such terms and conditions as may be mutually agreed upon by
Landlord and Tenant.

     So long as Landlord or any other entity operates a cafeteria, health club, conference center,
central mail/package receiving room or other similar amenity on the Property for use by employees
of Landlord or any affiliate of Landlord or other tenants of the Property, Landlord agrees that
Tenant’s employees shall have full access to such facilities and, if a cost is charged therefor, at
the lowest cost offered to any other users thereof. In the event Landlord elects not to operate a
cafeteria on the Property, and if Tenant operates the cafeteria at Tenant’s sole cost and expense
pursuant to that certain Office Lease dated April 15, 2005 by and between Landlord and Tenant
(“Office Lease”), Tenant agrees that Landlord’s employees or any other tenant of the Property shall
have full access to such facilities and, if a cost is charged therefor, at the lowest cost offered
to any other users thereof.

     Tenant agrees that neither Landlord nor any company, firm, or individual operating,
maintaining, repairing, managing or supervising the plant or facilities furnishing any of the above
services, nor any of their respective agents or employees shall be liable to Tenant, or any of
Tenant’s subtenants, assigns, employees, agents, customers or invitees or anyone claiming through,
by or under Tenant, for any damages, injuries, losses, expenses, claims or causes of action,
because of any interruption, diminution, delay or discontinuance at any time for any reason in the
furnishing of any of the above services, except solely if caused by the gross negligence or
recklessness of Landlord or its agents; nor shall any such interruption, diminution, delay or
discontinuance relieve Tenant from full performance of Tenant’s obligations under this Lease.
Notwithstanding the foregoing, in the event that any interruption or discontinuance is caused by
the gross negligence or recklessness of Landlord or its agents and such interruption or
discontinuance continues beyond ten (10) consecutive

6

 

business days in the Premises, or any portion thereof, and on account of such interruption or
disturbance the Premises becomes substantially untenantable, Rent shall abate proportionately for
so long as Tenant remains unable to conduct its business in the Premises or such portion thereof.
Landlord agrees to use reasonable efforts to restore any such interrupted or discontinued service
as soon as reasonably practicable. Landlord shall not be responsible for any interruption or
discontinuance described above caused by third parties (other than its agents as set forth above)
or by an act of God.

ARTICLE 6

POSSESSION

     Landlord shall deliver possession of the Premises on the Commencement Date. If Tenant shall
enter possession of all or any part of the Premises prior to the date fixed above for the first day
of the Term, all of the covenants and conditions of this Lease shall be binding upon the parties
hereto in respect of such possession the same as if the first day of the Term had been fixed as of
the date when Tenant entered such possession except that Tenant shall not pay Rent for the period
prior to the first day of the Term of this Lease.

ARTICLE 7

CONDITION OF PREMISES

     Tenant’s taking possession of any portion of the Premises shall be conclusive evidence as
against Tenant that such portion of the Premises were in good order and satisfactory condition when
the Tenant took possession. Tenant acknowledges that it owned the Building prior to the
commencement of the Term of this Lease, that Tenant has had ample opportunity to inspect the
Premises and perform any inspections or assessments it considers appropriate to determine the
condition of the Premises, that Tenant has not relied on any representation of Landlord regarding
such condition, that Tenant has consulted its own experts and independently satisfied itself
regarding the condition of the Premises, and that Tenant has accepted the Premises “ AS-IS,
WHERE-IS” with all faults. No promise of the Landlord to alter, remodel, repair or improve the
Premises or the Building and no representations respecting the condition of the Premises or the
Building have been made by Landlord to Tenant.

7

 

ARTICLE 8

REPAIRS

     Except as may otherwise be provided in Article 11 of this Lease, and subject to the provisions
of Article 9 of this Lease, Tenant shall, at its sole cost and expense, keep the Premises in good
order, repair and tenantable condition at all times during the Term, ordinary wear and tear
excepted, provided, however, that Tenant shall not be required to repair or replace broken or
damaged exterior window glass unless such replacement or repair is necessitated by the act, failure
to act, or neglect of Tenant, its subtenants, assigns, servants, employees, agents, invitees or
guests. If Tenant does not make such repairs and replacements as described above within a
reasonable time, Landlord may, but need not, make such repairs and replacements and the costs paid
or incurred by Landlord for such repairs and replacements (including Landlord’s overhead and
profit, and the cost of general conditions) shall be deemed additional Rent reserved under this
Lease due and payable within thirty (30) days after Tenant’s receipt of an itemized invoice and
supporting documentation. Landlord may, but shall not be required so to do, enter the Premises at
all reasonable times upon prior written notice to Tenant (except in the event of any emergency) to
make any repairs, alterations, improvements or additions, including, but not limited to, ducts and
all other facilities for heating and air conditioning service, as Landlord shall desire or deem
necessary for the safety, maintenance, repair, preservation or improvement of the Building, or as
Landlord may be required or requested to do by the City of Elgin or by the order or decree of any
court or by any other proper authority.

     In the event Landlord or its agents or contractors shall elect or be required to make repairs,
alterations, improvements or additions to the Premises or the Building, Landlord shall be allowed
to take into and upon the Premises all material that may be required to make such repairs,
alterations, improvements or additions and, during the continuance of any of said work, to
temporarily close doors, entryways, public space and corridors in the Building and to interrupt or
temporarily suspend any services and facilities without being deemed or held guilty of an eviction
of Tenant or for damages to Tenant’s property, business or person, and the Rent reserved herein
shall in no way abate while said repairs, alterations, improvements or additions are being made,
and Tenant shall not be entitled to maintain any set-off or counterclaim for damages of any kind
against Landlord by reason thereof. Landlord may, at its option, make all such repairs,
alterations, improvements or additions in and about the Building and the Premises during ordinary
business hours, but if Tenant desires to have the same done at any other time, Tenant shall pay for
all overtime and additional expenses resulting therefrom. Landlord agrees to use all reasonable
efforts to minimize any interference with Tenant’s business operations in the Premises and shall
remain liable for its or its agents’ gross negligence.

8

 

ARTICLE 9

ALTERATIONS

     Tenant shall not, without the prior written consent of Landlord in each instance obtained,
which consent shall not be unreasonably withheld, delayed or conditioned, make any repairs,
replacements, alterations, improvements or additions to the Premises, provided, however, no such
consent shall be required with respect to cosmetic alterations or any separate security system for
the Premises installed by Tenant, in which case Tenant shall deliver to Landlord all system codes,
contact information for the applicable security company, and a copy of any keys to such system. In
the event Tenant desires to make any alterations, improvements or additions pursuant to this
Article 9, or any repairs or replacements pursuant to Article 8 of this Lease, Tenant shall prior
to commencing any such work:

     (a) In the event such work is structural or affects mechanical systems, submit to
Landlord for review plans and specifications showing such work in reasonable detail;

     (b) Furnish Landlord with the names and addresses of all contractors and copies of all
contracts with such contractors;

     (c) Furnish commercially reasonable certificates of insurance from all contractors
performing such work evidencing commercial general liability, automobile liability,
employer’s liability and worker’s compensation insurance, the last in statutory amounts; and

     (d) Provide Landlord with copies of all necessary permits evidencing compliance with
all ordinances and regulations of the City of Elgin or any department or agency thereof, and
with the requirements of all statutes and regulations of the State of Illinois or any
department or agency thereof.

     Tenant hereby agrees to protect, defend, indemnify and hold Landlord, the Building and the
Property harmless from and against any and all liabilities of every kind and description which may
arise out of or in connection with such repairs, replacements, alterations, improvements or
additions by Tenant or any subtenant or assign of Tenant.

     Upon completing any of such repairs, replacements, alterations, improvements or additions,
Tenant shall furnish Landlord with contractors’ affidavits, sworn statements, full and final
waivers of lien and receipted bills covering all labor and material expended and used and, in the
event such work is structural or affects mechanical systems or is of a type for which such plans
and specifications are customarily prepared, two (2) sets of final as-built plans and
specifications. All repairs, replacements, alterations, improvements and additions shall comply
with all reasonable insurance requirements and with all ordinances and regulations of the City of
Elgin or any department or agency thereof and with the requirements of all statutes and regulations
of the State of Illinois or of any department or agency thereof. All repairs, replacements,
alterations, improvements and additions shall be constructed in a good and workmanlike manner and
only good grades of material shall be used.

9

 

     Landlord agrees to inform Tenant at the time any such alterations are approved or, if such
approval is not required, upon the request of Tenant, if such alterations will be required to be
removed upon expiration or early termination hereof. All alterations, improvements, additions,
repairs, or replacements, whether temporary or permanent in character, including, without
limitation, wall coverings, carpeting and other floor coverings, special lighting installations,
built-in or attached shelving, cabinetry, and mirrors, made by Landlord or Tenant in or upon the
Premises and not required to the removed as aforesaid shall become Landlord’s property and shall
remain upon the Premises at the termination of this Lease by lapse of time or otherwise without
compensation to Tenant (excepting only Tenant’s movable office furniture, trade fixtures, office
equipment and the equipment listed on Schedule I attached hereto).

ARTICLE 10

COVENANT AGAINST LIENS

     Nothing contained in this Lease shall authorize or empower Tenant to do any act which shall in
any way encumber Landlord’s title to the Building, Property or Premises, nor in any way subject
Landlord’s title to any claims by way of lien or encumbrance whether claimed by operation of law or
by virtue of any expressed or implied contract of Tenant, and any claim to a lien upon the
Building, Property or Premises arising from any act or omission of Tenant shall attach only against
Tenant’s interest and shall in all respects be subordinate to Landlord’s title to the Building,
Property and Premises. If Tenant has not removed or bonded over any such lien or encumbrance
within thirty (30) days after written notice to Tenant by Landlord, Landlord may, but shall not be
obligated to, pay the amount necessary to remove such lien or encumbrance, without being
responsible for making any investigation as to the validity or accuracy thereof, and the amount so
paid, together with all costs and expenses (including attorneys’ fees) incurred by Landlord in
connection therewith, shall be deemed additional Rent reserved under this Lease due and payable
within thirty (30) days after Tenant’s receipt of notice of such payment by Landlord and supporting
documentation.

ARTICLE 11

DAMAGE OR DESTRUCTION BY FIRE OR CASUALTY

     (A) If the Premises or any part of the Building shall be damaged by fire or other casualty and
if such damage does not render all or a substantial portion of the Premises or the Building
untenantable, then, except as expressly hereinafter set forth, Landlord shall proceed to repair and
restore the same to its prior existing condition with reasonable promptness, subject to reasonable
delays for insurance adjustments and delays caused by matters beyond Landlord’s control. If any
such damage renders all or a substantial portion of the Premises or the Building untenantable,
Landlord or Tenant shall have the right to terminate this Lease by notice delivered to the other
within thirty (30) days after such casualty. If neither party elects to terminate this Lease, Landlord shall proceed with reasonable promptness and all due diligence to repair and restore the
Premises, subject to reasonable delays for insurance adjustments and delays caused by matters
beyond Landlord’s control, and also subject to zoning laws and building codes then in effect.
Landlord shall have no liability to Tenant so long as Landlord shall proceed with reasonable promptness and due
diligence to complete the same. In addition to the foregoing, either Landlord or Tenant shall have
the right to

10

 

terminate this Lease if a material casualty damages the Premises during the last three
(3) months of the Term, by delivering notice thereof to the other within ten (10) days after such
casualty. Notwithstanding anything to the contrary herein set forth, Tenant shall not have the
right to terminate this Lease pursuant to this Article 11 if the damage or destruction was caused
by the intentional or negligent act of Tenant, its subtenants, assigns, agents or employees.

     (B) In the event any such fire or casualty damage not caused by the intentional or negligent
act of Tenant, its agents or employees, renders the Premises substantially untenantable and Tenant
is not occupying the Premises and if this Lease shall not be terminated pursuant to the foregoing
provisions of this Article 11 by reason of such damage, then Rent shall abate during the period
beginning with the date of such damage and ending with the date when Landlord substantially
completes its repair and restoration work. Such abatement shall be in an amount bearing the same
ratio to the total amount of Rent for such period as the portion of the Premises being repaired and
restored by Landlord and not heretofore delivered to Tenant from time to time bears to the entire
Premises. In the event of termination of this Lease pursuant to this Article 11, Rent shall be
apportioned on a per diem basis and be paid to the date of such fire or other casualty.

     (C) In the event of any such fire or other casualty, and if this Lease is not terminated pursuant
to the foregoing provisions of this Lease, Tenant shall repair and restore any portion of
alterations, additions or improvements made by or on behalf of Tenant in the Premises.

ARTICLE 12

INSURANCE

     In consideration of the leasing of the Premises at the rental stated in Article 2, Landlord
and Tenant agree to provide insurance and allocate the risk of loss as follows:

          (a) Tenant, at its sole cost and expense but for the mutual benefit of Landlord and Tenant
(when used in this Article the term “Landlord” shall include Landlord and its officers, agents,
servants and employees, lenders holding a mortgage on the Property and, if Landlord is succeeded by
a land trust, its beneficiaries, and the term “Tenant” shall include Tenant and its officers,
agents, servants and employees), shall purchase and keep and maintain in force and effect during
the Term hereof, insurance under policies issued by insurers of recognized responsibility on its
trade fixtures, merchandise, inventory, contents, furniture, equipment or other personal property
located in the Premises protecting Landlord and Tenant from damage or other loss caused by fire or
other casualty including, but not limited to, vandalism and malicious mischief, perils covered by
all risk and extended coverage, theft, sprinkler leakage, water damage (however caused), explosion,
malfunction or failure of heating and cooling or other apparatus, and other similar risks in
amounts not less than the full insurable replacement value of such property. Such insurance shall
provide that it is specific and not contributory and shall name the Landlord as an additional
insured party and shall contain a replacement cost endorsement. Tenant shall deliver certificates
of insurance evidencing such coverage upon execution hereof and thereafter not less than twenty
(20) days prior to the expiration date of any such policy.

          (b) During the Term of this Lease, Tenant shall obtain and promptly pay all premiums for
Commercial General Liability Insurance with broad form extended coverage including

11

 

Contractual Liability Insurance with respect to and against claims occurring upon in or about the Premises and
the business operated by Tenant and any subtenant in the Premises with a minimum coverage of a
combined single limit of $2,000,000.00, and all such policies and renewals thereof shall name the
Landlord and the Tenant as insureds. All policies of insurance shall provide that the insurer shall
endeavor to deliver to Landlord prior written notice of cancellation of said policies. On or
before the Commencement Date of the term of this Lease, and thereafter not less than twenty (20)
days prior to the expiration dates of said policy or policies, Tenant shall provide certificates of
insurance evidencing coverages required by this Lease.

     All the insurance required under this Lease shall be issued by insurance companies authorized
to do business in the State of Illinois with a financial rating of at least a A+ as rated in the
most recent edition of Best’s Insurance Reports and in business for the past five years.

     Landlord agrees to purchase and keep in force and effect insurance on the Building against
fire and such other risks as may be included in extended coverage insurance from time-to-time in
the amount of the full insurable value of the Building including, without limitation, non-trade
fixtures, wall and floor coverings, lighting fixtures and built-in cabinets and bookshelves. Such
policies shall contain a replacement cost endorsement and a clause pursuant to which the insurance
carriers waive all rights of subrogation against the Tenant with respect to losses payable under
such policies, except for the amount of any deductible under such policies.

     By this section, Landlord and Tenant intend that the risk of loss or damage as described above
be borne by responsible insurance carriers to the extent above provided, and Landlord and Tenant
hereby release each other and agree to look solely to, and to seek recovery only from, their
respective insurance carriers in the event of a loss of a type described above to the extent that
such coverage is agreed to be provided hereunder. For this purpose, any applicable deductible
amount shall be treated as though it were recoverable under such policies. Landlord and Tenant
agree that applicable portions of all monies collected from such insurance shall be used toward the
full compliance of the obligations of Landlord and Tenant under this Lease in connection with
damage resulting from fire or other casualty.

ARTICLE 13

INTENTIONALLY DELETED

12

 

ARTICLE 14

CONDEMNATION

     If the whole or any material part of the Building or Property, other than a part which does
not interfere with the maintenance or operation thereof, shall be taken or condemned by any
competent authority for any public or quasi-public use or purpose or if any adjacent property or
street shall be condemned or improved in such manner as to require the use of any part of the
Premises or of the Building, other than a part which does not interfere with the maintenance or
operation thereof, or a conveyance is made in lieu of such a taking, the Term, at the option of
Landlord, shall end upon the date when the possession of the part so taken shall be vested in such
authority. If the whole or any part of the Premises shall be taken or condemned by any competent
authority for any public or quasi-public use or purpose or a conveyance is made in lieu of such a
taking, the Term, at the option of Tenant, shall end upon the date when the possession of the part
so taken shall be vested in such authority. Landlord shall be entitled to receive the entire award
including all income, rents, any interest thereon and any other compensation for any taking or
conveyance without any payment to Tenant, the Tenant hereby assigning to the Landlord the Tenant’s
interest therein, if any, excluding any award Tenant shall be entitled to claim, prove and receive
as a separate award in the condemnation proceeding for its relocation, leasehold improvements or
trade fixtures. Current Rent shall be apportioned as of the date of vesting in such authority.

ARTICLE 15

WAIVER OF CLAIMS

     Tenant agrees that, to the extent not expressly prohibited by law, Landlord and its lenders,
officers, agents, servants and employees shall not be liable for (nor shall Rent abate as a result
of) any direct or consequential damage (including damage claimed for actual or constructive
eviction) either to person or property sustained by Tenant, its subtenants, assigns, officers,
servants, employees, agents, invitees or guests due to the Building or any part thereof or any
appurtenances thereof becoming out of repair, or due to the happening of any accident in or about
said Building, or due to any act or neglect of any tenant or occupant of said Building or of any
other person. This provision shall apply particularly (but not exclusively) to damage caused by
water, snow, frost, steam, sewage, gas, electricity, sewer gas or odors or by the bursting, leaking
or dripping of pipes, faucets and plumbing fixtures and windows, and shall apply without
distinction as to the person whose act or neglect was responsible for the damage and whether the
damage was due to any of the causes specifically enumerated above or to some other cause of an
entirely different kind. Tenant further agrees that all of Tenant’s personal property in the
Premises or the Building shall be at the risk of Tenant only and that Landlord shall not be liable
for any loss or damage thereto or theft thereof. Notwithstanding the foregoing, Landlord shall not
hereby be exculpated from any liability arising from its or its agents’ gross negligence.

13

 

ARTICLE 16

NONWAIVER

     No waiver of any condition expressed in this Lease shall be implied by any neglect of Landlord
to enforce any remedy on account of the violation of such condition if such violation be continued
or repeated subsequently, and no express waiver shall affect any condition other than the one
specified in such waiver and that one only for the time and in the manner specifically stated. No
receipt of moneys by Landlord from Tenant after the termination in any way of the Term or of
Tenant’s right of possession hereunder or after the giving of any notice shall reinstate, continue
or extend the Term or affect any notice given to Tenant prior to the receipt of such moneys, it
being agreed that after the service of notice or the commencement of a suit or after final judgment
for possession of the Premises Landlord may receive and collect any Rent or other sums due, and
such payment shall not waive or affect said notice, suit or judgment.

ARTICLE 17

WAIVER OF NOTICE

     Except as provided in Article 18 hereof, Tenant hereby expressly waives the service of any
notice of intention to terminate this Lease or to re-enter the Premises and waives the service of
any demand for payment of Rent or for possession and waives the service of any other notice or
demand prescribed by any statute or other law.

ARTICLE 18

LANDLORD’S REMEDIES

     If (a) default shall be made in the payment of the Rent or any installment thereof or in the
payment of any other sum required to be paid by Tenant under this Lease, or under the terms of any
other agreement between Landlord and Tenant, and such default shall continue for ten (10) days
after written notice to Tenant, or (b) if default shall be made in the full and prompt performance
of any of the other covenants or conditions which Tenant is required to observe and perform and
such default shall continue for thirty (30) days after written notice to Tenant or, if such default
is not susceptible of cure within thirty (30) days, within such additional period as may be
reasonable so long as Tenant is engaged in the diligent cure thereof, or (c) if the interest of
Tenant in this Lease shall be levied on under execution or other legal process, or (d) if any
petition shall be filed by or against Tenant to declare Tenant a bankrupt or to delay, reduce or
modify Tenant’s debts or obligations, and, if filed against Tenant, is not dismissed within sixty
(60) days, or (e) if any petition shall be filed or other action taken to reorganize or modify
Tenant’s capital structure, if Tenant be a corporation or other entity, or (f) if Tenant be
declared insolvent according to law or if any assignment of Tenant’s property shall be made for the
benefit of creditors, or (g) if a receiver or trustee is appointed for

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Tenant or its property, then Landlord may treat the occurrence of any one or more of the foregoing
events as a breach of this Lease, and thereupon at its option may, without notice or demand of any
kind to Tenant or any other person, but subject to the duty to mitigate its damages stated below,
have any one or more of the following described remedies in addition to all other rights and
remedies provided at law or in equity:

     (i) Landlord may terminate this Lease and the Term created hereby, in which event
Landlord may forthwith repossess the Premises and be entitled to recover forthwith as damages
a sum of money equal to the present value of the Rent provided to be paid by Tenant for the
balance of the stated Term of the Lease, less the fair rental value of the Premises for said
period, and any other sum of money and damages owed by Tenant to Landlord.

     (ii) Landlord may terminate Tenant’s right of possession and may repossess the Premises
by forcible entry and detainer suit or otherwise, without demand or notice of any kind to
Tenant and without terminating this Lease, in which event Landlord shall use its reasonable
efforts to relet the Premises, for such amount of rent and upon such terms as shall be
reasonably satisfactory to Landlord (including the right to relet the Premises for a lease
term which is greater or lesser than that remaining under the Term of this Lease and the
right to relet the Premises as a part of a larger area and the right to change the character
or use made of the Premises). For the purpose of such reletting, Landlord is authorized to
decorate or to make any repairs, changes, alterations or additions in or to the Premises that
may be reasonably necessary. Landlord’s duty to mitigate its damages under this subparagraph
(ii) shall be limited to a duty to attempt to relet the Premises by listing the Premises for
lease with Grubb & Ellis (or similar type of commercial real estate broker familiar with
similar properties in the area) pursuant to an agreement that imposes usual and customary
marketing obligations on the listing broker within fifteen (15) days of Landlord’s actual
knowledge of the Tenant’s default hereunder, and to continue to list the Premises for lease
for a period of one hundred twenty (120) days thereafter. Failure of Landlord to lease the
Premises prior to any other vacant space in the Building shall not be deemed a failure to
mitigate under this subparagraph (ii). If (A) Landlord shall fail to relet the Premises
within said one hundred twenty (120) day period or (B) the Premises are relet and a
sufficient sum shall not be realized from such reletting after paying the expenses of the
collection of the Rent to satisfy the Rent provided for in this Lease to be paid, then Tenant
shall pay to Landlord as damages a sum equal to the amount of the Rent accrued and unpaid
from the date of default until expiration of the Term or any Extension Term then in effect
under the Lease, or, if the Premises have been relet, Tenant shall satisfy and pay any such
deficiency upon demand therefor from time to time, and Tenant agrees that Landlord may file
suit to recover any sums falling due under the terms of this paragraph and any other sums due
under this Lease from time to time and that no suit or recovery of any portion due Landlord
hereunder shall be any defense to any subsequent action brought for any amount not
theretofore reduced to judgment in favor of Landlord.

     In the case of such termination of the Lease or Tenant’s right of possession, Tenant shall
indemnify Landlord against all reasonable costs and expenses incurred in collecting amounts due
from Tenant under this Lease (including reasonable attorneys’ fees, litigation expenses and the
like) and recovering possession of the Premises.

15

 

     Tenant hereby waives trial by jury in any action or proceeding brought by, through or under
Landlord, under or in connection with this Lease.

     Tenant hereby agrees that to the extent any of the foregoing notice periods provided for in
this Article 18 and elsewhere in this Lease are greater than the notice periods required under the
statutes of the State of Illinois, such greater notice periods as are provided for herein shall
substitute for any such statutory notice periods, and any notices given pursuant to the terms
hereof shall be deemed the notice required by any such statutes.

ARTICLE 19

SURRENDER OF POSSESSION

     (A) On or before the date this Lease and the Term hereby created terminates with respect to
each of Premises A and Premises B, or on or before the date Tenant’s right of possession
terminates, whether by lapse of time or at the option of Landlord pursuant to the terms and
provisions of this Lease, Tenant shall:

     (i) restore the applicable portion of the Premises to reasonably good condition (except
as otherwise provided hereinafter or in Article 11 of this Lease), ordinary wear and tear
excepted, and remove those alterations, improvements or additions installed during the Term,
whether installed by Landlord or Tenant, if such removal is required pursuant to Article 9
above;

     (ii) remove from the applicable portion of the Premises and the Building all of Tenant’s
personal property; and

     (iii) surrender possession of the applicable portion of the Premises to Landlord in a
clean condition free of all rubbish and debris.

Notwithstanding the foregoing, Tenant may remove any of the items listed in Schedule II to that
certain Agreement for Purchase and Sale dated December 2, 2004 by and between Landlord and Tenant
that are located in the Premises, and Tenant shall not be required to repair any damage caused by
such removal, except that Tenant shall repair any damage to base building mechanical systems caused
by such removal.

     (B) If Tenant shall fail or refuse to deliver the Premises in the above-described condition on
or before the above-specified dates, Landlord may enter into and upon the applicable portion of the
Premises and put such portion of the Premises in such condition and recover from Tenant Landlord’s
cost of so doing. If Tenant shall fail or refuse to comply with Tenant’s duty to remove all
personal property from the Premises and the Building on or before the above-specified dates, the
parties hereto agree and stipulate that Landlord may enter into and upon the applicable portion of
the Premises and may, at its election:

     (i) treat such failure or refusal as an offer by Tenant to transfer title to such
personal property to Landlord, in which event title thereto shall thereupon pass under this

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Lease as a bill of sale to and vest in Landlord absolutely without any cost either by
set-off, credit allowance or otherwise, and Landlord may retain, remove, sell, donate,
destroy, store, discard, or otherwise dispose of all or any part of said personal property in
any manner that Landlord shall choose;

     (ii) treat such failure or refusal as conclusive evidence, on which Landlord or any
third party shall be entitled absolutely to rely and act, that Tenant has forever abandoned
such personal property, and without accepting title thereto, Landlord may, at Tenant’s
expense, remove, store, destroy, discard or otherwise dispose of all or any part thereof in
any manner that Landlord shall choose without incurring liability to Tenant or to any other
person. In no event shall Landlord ever become or accept or be charged with the duties of a
bailee (either voluntary or involuntary) of any personal property, and the failure of Tenant
to remove all personal property from the Premises and the Building shall forever bar Tenant
from bringing any action or from asserting any liability against Landlord with respect to any
such property which Tenant fails to remove. If Tenant shall fail or refuse to surrender
possession of the Premises to Landlord on or before the above-specified dates, Landlord may
forthwith re-enter the Premises and repossess itself thereof as of its former estate and
remove all persons and effects therefrom, using such force as may be necessary, without being
guilty of any manner of trespass or forcible entry or detainer.

ARTICLE 20

HOLDING OVER

     Tenant shall pay to Landlord one hundred fifty percent (150%) of the Rent then applicable for
each month or portion thereof Tenant shall retain possession of the Premises or any part thereof
after the termination of this Lease as it pertains to such part of the Premises as Landlord’s sole
damages remedy. The provisions of this Article shall not operate as a waiver by Landlord of any
right of re-entry hereinbefore provided.

ARTICLE 21

COSTS, EXPENSES AND ATTORNEYS’ FEES

     In case Landlord shall, without fault on its part, be made a party to any litigation commenced
by or against Tenant, then Tenant shall pay all reasonable costs, expenses and attorneys’ fees
incurred or paid by Landlord in connection with such litigation. Tenant shall also pay all
reasonable costs, expenses and attorneys’ fees that may be incurred or paid by Landlord in
enforcing any of Tenant’s covenants and agreements in this Lease. In case Tenant shall, without
fault on its part, be made a party to any litigation commenced by or against Landlord, then
Landlord shall pay all reasonable costs, expenses and attorneys’ fees incurred or paid by Tenant in
connection with such litigation. Landlord shall also pay all reasonable costs, expenses and
attorneys’ fees that may be incurred or paid by Tenant in enforcing any of Landlord’s covenants and
agreements in this Lease.

17

 

ARTICLE 22

COMPLIANCE WITH LAWS

     Tenant and Landlord shall operate the Premises and Building respectively in compliance with
all applicable federal, state, and municipal laws, ordinances and regulations and shall not
knowingly, directly or indirectly, make any use of the Premises or Building which is prohibited by
any such laws, ordinances or regulations. Landlord agrees not to cause any rezoning or zoning
variations to become effective during the Term which would render illegal Tenant’s permitted uses
of the Premises.

ARTICLE 23

CERTAIN RIGHTS RESERVED BY LANDLORD

     Landlord shall have the following rights, exercisable without notice, except as set forth
below, and without liability to Tenant for damage or injury to property, person or business and
without effecting an eviction, constructive or actual, or disturbance of Tenant’s use or possession
or giving rise to any claim for set-off or abatement of Rent, except that Landlord shall remain
liable for its and its agents’ gross negligence:

     (a) To name the Building and to change the Building’s name or street address.

     (b) To install, affix and maintain any and all signs on the exterior and interior of
the Building.

     (c) To designate and approve, prior to installation, all types of window shades,
blinds, drapes, and other similar equipment, and to control all internal lighting that may
be visible from the exterior of the Building.

     (d) On reasonable prior notice to Tenant, to show the Premises to (i) prospective
tenants at reasonable hours and, if vacated, to decorate, remodel, repair or otherwise
prepare the Premises for re-occupancy without affecting Tenant’s obligation to pay Rent, and
(ii) others having a legitimate interest at any time during the Term of this Lease.

     (e) To retain at all times, and to use in appropriate instances, keys and combinations
to all doors into the Premises. No locks or combinations shall be changed without the prior
written consent of Landlord.

     (f) To decorate or to make repairs and/or replacement of windows, Building
façade or any components of the Building envelope or other Building systems (in Landlord’s
sole discretion) or any other repairs, alterations, additions, or improvements, whether
structural or otherwise, in and about the Building, or any part thereof, and for such
purposes to enter upon the Premises at reasonable times with prior written notice to Tenant,
and, during the continuance of any of said work, to temporarily close doors, entryways,
public space and corridors in the Building and to interrupt or temporarily suspend Building
services

18

 

and facilities, all without abatement of Rent or affecting any of Tenant’s
obligations hereunder, so long as the Premises are reasonably accessible and useable.

     (g) To have and retain a paramount title to the Premises free and clear of any act of
Tenant purporting to burden or encumber it.

     (h) To grant to anyone the exclusive right to conduct any business or render any
service in or to the Building, provided such exclusive right shall not operate to exclude
Tenant from the use expressly permitted herein.

     (i) To approve the weight, size and location of safes, filing systems and other heavy
equipment and bulky articles in and about the Premises and the Building (so as not to
overload the floors of the Premises), and to require all such items and furniture and
similar items to be moved into and out of the Building and Premises only at such times and
in such manner as Landlord shall direct in writing. Any damages done to the Building or
Premises or to other tenants in the Building by taking in or putting out safes, furniture
and other items, or from overloading the floor in any way, shall be paid by Tenant.
Movements of Tenant’s property into or out of the Building and within the Building are
entirety at the risk and responsibility of Tenant.

     (j) To construct additions to the Building in such locations as may be designated by
Landlord from time to time. Landlord agrees that any such construction shall not prohibit
or impair Tenant’s use of either Premises A or Premises B. Any newly constructed areas of
the Building shall not be deemed part of either Premises A or Premises B hereunder.

     Landlord may enter upon the Premises and may exercise any or all of the foregoing rights
hereby reserved without being deemed guilty of an eviction or disturbance of Tenant’s use or possession and without being liable in any manner to Tenant, except to the extent of any liability
arising from Landlord’s or its agents’ gross negligence.

ARTICLE 24

ESTOPPEL

     Tenant agrees that from time to time upon not less than ten (10) business days’ prior request
by Landlord, Tenant or Tenant’s duly authorized representative having knowledge of the following
facts shall deliver to Landlord a statement in writing certifying (a) that this Lease is unmodified
and in full force and effect (or if there have been modifications that the Lease as modified is in
full force and effect); (b) the dates to which the Rent and other charges have been paid; (c) that
neither Landlord, to the Tenant’s knowledge, nor Tenant is in default under any provision of this
Lease, or, if in default, the nature thereof in detail; (d) that there are no offsets or defenses
to the payment of Rent, additional charges or any other sums payable under this Lease or, if there
are any such offsets or defenses, specifying such in detail; and (e) such further factual matters
as may be reasonably requested by Landlord.

19

 

ARTICLE 25

RULES AND REGULATIONS

     Tenant agrees to observe the reservations to Landlord in Article 23 hereof and agrees, for
itself, its employees, agents, servants, clients, customers, invitees, licensees and guests to
observe and comply at all times with the rules and regulations set forth in Exhibit B attached
hereto and made a part hereof, and with such reasonable modifications thereof and additions thereto
as Landlord may from time-to-time make for the Building, and that failure to observe and comply
with such reservations, rules and regulations shall constitute a default under this Lease.

     Landlord reserves the right to make such other and further reasonable rules and regulations as
in Landlord’s judgment may from time to time be needful for the safety, care and cleanliness of the
Building and Premises and for the preservation of good order therein. Nothing in this Lease
contained shall be construed to impose upon Landlord any duty or obligation to enforce any such
rules and regulations, or the terms, covenants and conditions of any other lease against any other
tenant or any other persons, provided, however, that Landlord shall elect to enforce or not enforce
such rules and regulations on a uniform basis, and Landlord shall not be liable to Tenant for
violation of any such rules and regulations, or terms, covenants and conditions by any other
tenant, its employees, agents, invitees, or by any other person.

ARTICLE 26

PARKING

     Landlord agrees to provide Tenant with reasonably sufficient parking spaces, including,
without limitation, handicapped parking spaces, for Tenant’s employees, agents and invitees which
shall in no event be less than the number of parking spaces required with respect to the Premises
under applicable zoning ordinances.

ARTICLE 27

ASSIGNMENT AND SUBLETTING

     Tenant shall not, without the prior written consent of Landlord, which consent shall not be
unreasonably withheld, delayed or conditioned, (i) assign, convey, mortgage, pledge or otherwise
transfer this Lease, or any part thereof, or any interest hereunder; (ii) permit any assignment of
this Lease, or any part thereof, by operation of law; (iii) sublet the Premises or any part
thereof; or (iv) permit the use of the Premises, or any part thereof, by any parties other than
Tenant, its agents and employees, provided, however, Tenant may assign this Lease in whole or in
part to, sublet the Premises in whole or in part to and/or permit the use of the Premises in whole
or in part by any affiliate of Tenant or any entity which provides services to employees of Tenant
without the consent of Landlord.

20

 

     In the event Landlord’s consent is required hereunder, Tenant shall proceed as set forth in
this paragraph. Tenant shall, by notice in writing, advise Landlord of its intention from, on and
after a stated date (which shall not be less than thirty (30) days after date of Tenant’s notice),
to assign this Lease, or any part thereof, or to sublet any part or all of the Premises for the
balance or any part of the Term. Tenant’s notice shall include all of the terms of the proposed
assignment or sublease (whether contained in such assignment or sublease or in separate
agreements). Tenant’s notice shall state the name and address of the proposed assignee or
subtenant and a true and complete copy of the proposed assignment or sublease and any and all other
agreements relating thereto shall be delivered to Landlord with Tenant’s notice, accompanied by the
financial statements for any proposed assignee. Landlord shall have thirty (30) days after receipt
of all such information to approve or disapprove of such assignee, and shall notify Tenant of its
approval or disapproval within such thirty (30) days.

     Any subletting or assignment hereunder shall not release or discharge Tenant of or from any
liability, whether past, present or future, under this Lease, and Tenant shall continue fully
liable thereunder. Any subtenant or assignee shall agree to comply with and be bound by all of the
terms, covenants, conditions, provisions, rules and regulations and agreements of this Lease to the
extent of the space sublet or assigned, and Tenant shall deliver to Landlord promptly after
execution, an executed copy of each such sublease or assignment and an agreement of compliance by
each such subtenant or assignee. Any sale, assignment, mortgage, transfer, or subletting of this
Lease which is not in compliance with the provisions of this Article shall be of no effect and
void.

     Notwithstanding anything to the contrary contained herein, Landlord may withhold consent to a
sublease or assignment unless Landlord is provided with waivers from any brokers involved in such
subleasing or assignment of all lien rights of any such brokers under Illinois law, including but
not limited to the Commercial Real Estate Broker Lien Act. Landlord also may withhold consent to a
sublease or assignment if the proposed assignee or sublessee or its business is subject to
compliance with additional requirements of any law (including related regulations) beyond those
requirements which are applicable to Tenant on or prior to the said assignment or sublease unless
the proposed assignee or sublessee shall:

     (a) first deliver plans and specifications for complying with such additional
requirements and obtain Landlord’s consent thereto, and

     (b) comply with all Landlord’s reasonable conditions therefor or contained in such consent.

ARTICLE 28

NOTICE

     All notices, demands, approvals and consents which may or are required to be given by one
party to the other under this Lease shall be in writing and shall be delivered personally or by a
nationally-recognized air courier service or mailed by United States certified or registered mail,
postage prepaid, (a) if for the Tenant addressed to:

21

 

	 	 	 
	

	 	William H. Kopp
	

	 	Panasonic Corporation of North America
	

	 	One Panasonic Way
	

	 	Panazip: 3D-9
	

	 	Secaucus, New Jersey 07094
	 
	 	 
	with copies to:
	 	 
	 
	 	 
	

	 	General Counsel
	

	 	Panasonic Corporation of North America
	

	 	One Panasonic Way
	

	 	Panazip: 3B-6
	

	 	Secaucus, New Jersey 07094
	 
	 	 
	And
	 	 
	 
	 	 
	

	 	Steven N. Zaris
	

	 	McCarthy Duffy
	

	 	180 North LaSalle Street
	

	 	Suite 1400
	

	 	Chicago, Illinois 60601
	 
	 	 
	or (b) if for the landlord addressed to:
	 
	 	 
	

	 	Michael A. Valentine
	

	 	John B. Sanfilippo & Son, Inc.
	

	 	2299 Busse Road
	

	 	Elk Grove Village, Illinois 60007
	 
	 	 
	with a copy to:
	 	 
	 
	 	 
	

	 	Jeffrey J. Stahl, Esq.
	

	 	Paul G. Hull, Esq.
	

	 	Stahl Cowen Crowley, LLC
	

	 	55 West Monroe Street, Suite 500
	

	 	Chicago, IL 60603

or at such other place as Landlord or Tenant may from time to time designate by notice to the
other. Notices shall be deemed given upon receipt of delivery or refusal of such receipt.

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ARTICLE 29

DEFAULT UNDER OTHER LEASE

     Any default under this Lease shall automatically constitute a default under any other lease
made by Tenant, or any of its assignees, affiliates, subtenants of any other space within the
Building or on any other part of the Property, including, but not limited to, the lease of space in
the office building located on the Property, without requirement of further notice under any such
other lease. If the term of any other lease made by Tenant for any premises in the Building or
under any other lease affecting the Property shall be terminated after the making of this Lease
because of any default by Tenant under such other lease, Landlord, at its option, may terminate
this Lease by written notice to Tenant.

ARTICLE 30

CONVEYANCE BY LANDLORD

     In case Landlord or any successor owner of the Property or the Building shall convey or
otherwise dispose of any portion thereof to another person, such other person shall in its own name
thereupon be and become Landlord hereunder and shall assume fully in writing and be liable upon all
liabilities and obligations of this Lease to be performed by Landlord which first arise after the
date of conveyance, and such original Landlord or successor owner shall, from and after the date of
conveyance, be free of all liabilities and obligations not then incurred.

ARTICLE 31

SUBORDINATION OF LEASE

     The rights of the Tenant under this Lease shall be and are subject and subordinate at all
times to all ground leases and underlying leases, if any, now or hereafter in force against the
Property, and to the lien of any mortgages or deeds of trust now or hereafter in force against such
leases, the Property or the Building, or all of them, and to all advances made or hereafter to be
made upon the security thereof, and to all renewals, modifications, amendments, consolidations,
replacements and extensions thereof, provided that the holders thereof agree to recognize Tenant’s
rights hereunder so long as Tenant is not in default. This Article is self-operative and no
further instrument of subordination shall be required. Any mortgagee or beneficiary under a deed
of trust may, however, elect to have this Lease be superior to its mortgage or deed of trust. At
Landlord’s request, Tenant shall execute a document in recordable form confirming that this Lease
is subordinate (or at the mortgagee’s or beneficiary’s election, superior) to any mortgage or deed
of trust, subject to a non-disturbance provision as described above. Tenant, at the option of any
mortgagee or beneficiary under a deed of trust, agrees to attorn to such mortgagee or beneficiary
in the event of a foreclosure sale or deed in lieu thereof.

23

 

ARTICLE 32

BROKERS

     Tenant represents and warrants to Landlord that neither it nor its officers or agents nor
anyone acting on its behalf has dealt with any real estate broker other than Paine Wetzel
Associates, Inc. in the negotiation or making of this Lease, and Tenant agrees to indemnify and
hold harmless Landlord from the claim or claims of Paine Wetzel Associates, Inc., or any other
broker or brokers claiming to have interested Tenant in the Building or Premises or claiming to
have caused Tenant to enter into this Lease. Landlord represents and warrants to Tenant that
neither it nor its officers or agents nor anyone acting on its behalf has dealt with any real
estate broker other than Grubb & Ellis, Inc. in the negotiation or making of this Lease, and
Landlord agrees to indemnify and hold harmless Tenant from the claim or claims of Grubb & Ellis,
Inc., or any other broker or brokers claiming to have caused Landlord to enter into this Lease.

ARTICLE 33

INTENTIONALLY DELETED

ARTICLE 34

MISCELLANEOUS

     Landlord and Tenant further covenant with each other that:

     (a) All rights and remedies of Landlord under this Lease shall be cumulative and none
shall exclude any other rights and remedies allowed by law.

     (b) All payments becoming due under this Lease or under any work order or other
agreement relating to the Premises shall be considered as rent, and if unpaid when due shall
bear interest from such date until paid at the rate of two percent (2%) per annum in excess
of the corporate base rate in effect from time to time at Bank One, Illinois, N.A. (unless a
lesser rate shall then be the maximum rate permissible by law with respect thereto, in which
event such lesser rate shall be charged).

     (c) The word “Tenant” wherever used herein shall be construed to mean Tenants in all
cases where there is more than one Tenant, and the necessary grammatical changes required to
make the provisions hereof apply either to corporations or individuals, men or women, shall
in all cases be assumed as though in each case fully expressed.

     (d) Each of the provisions of this Lease shall extend to and shall, as the case may
require, bind or inure to the benefit, not only of Landlord and of Tenant, but also of their
respective heirs, legal representatives, successors and assigns, provided this clause shall
not permit any assignment contrary to the provisions of Article 27 hereof.

24

 

     (e) All of the representations and obligations of Landlord are contained herein, and no
modification, waiver or amendment of this Lease or of any of its conditions or provisions
shall be binding upon the Landlord unless in writing signed by Landlord or by a duly
authorized agent of Landlord empowered by a written authority signed by Landlord.

     (f) Submission of this instrument for examination shall not bind Landlord in any
manner, and no lease or obligation on Landlord shall arise until this instrument is signed
and delivered by Landlord and Tenant.

     (g) No rights to light or air over any property, whether belonging to Landlord or any
other person, are granted to Tenant by this Lease.

     (h) Sectional headings in this Lease are solely for convenience of reference and shall
not in any way limit or amplify the terms and provisions hereof.

     (i) The laws of the State of Illinois shall govern the validity, performance and
enforcement of this Lease. The invalidity or unenforceability of any provision of this
Lease shall not offset or impair any other provision. If any provision of this Lease is
capable of two constructions, one of which would render the provision invalid and the other
of which would make the provision valid, then the provision shall have the meaning which
renders it valid.

     (j) Landlord’s title is and always shall be paramount to the title of Tenant. Nothing
herein contained shall empower Tenant to commit or engage in any act which can, shall or may
encumber the title of Landlord.

     (k) Neither this Lease, nor any memorandum, affidavit or other writing with respect
thereto, shall be recorded by Tenant or by anyone acting through, under or on behalf of
Tenant, and the recording thereof in violation of this provision shall make this Lease null
and void at Landlord’s election.

     (l) Nothing contained in this Lease shall be deemed or construed by the parties hereto
or by any third party to create the relationship of principal and agent, partnership, joint
venture or any association between Landlord and Tenant, it being expressly understood and
agreed that neither the method of computation of Rent nor any act of the parties hereto
shall be deemed to create any relationship between Landlord and Tenant other than the
relationship of landlord and tenant.

     (m) Landlord shall have the right to apply payments received from Tenant
pursuant to this Lease (regardless of Tenant’s designation of such payments) to satisfy any
obligations of Tenant hereunder, in such order and amounts, as Landlord in its sole
discretion, may elect.

     (n) All indemnities, covenants and agreements of Tenant contained herein which inure to
the benefit of Landlord shall be construed to also inure to the benefit of Landlord’s
partners, officers, agents and employees.

25

 

     (o) If Landlord or Tenant fails to perform any of its obligations hereunder, and such
failure is due in whole or in part to any strike, lockout, labor trouble, civil disorder,
failure of power, restrictive governmental laws and regulations, riots, insurrections, war,
fuel shortages, accidents, casualties, acts of God, acts caused directly or indirectly by
the other party hereto (or its agents, employees, contractors, licensees or invitees) or any
other cause beyond the reasonable control of Landlord or Tenant, as the case may be, then
such party shall not be deemed in default under this Lease as a result of such failure and
the time for performance by it provided for herein shall be extended by the period of delay
resulting from such cause.

     (p) Landlord and Tenant each shall and hereby does waive trial by jury in any action,
proceeding or counterclaim brought by Landlord against Tenant or by Tenant against Landlord
on any matters whatsoever arising out of or in any way connected with this Lease, the
relationship of Landlord and Tenant, Tenant’s use or occupancy of the Premises or any claim
of injury or damage.

     (q) Landlord agrees that no consent of Landlord required under this Lease or the rules
and regulations now or hereafter applicable to Tenant shall be unreasonably withheld,
delayed or conditioned.

ARTICLE 35

EXCULPATION

     Any obligation of Landlord, or its agent, under or with respect to this Lease or the Building
shall be enforceable only against and payable out of Landlord’s interest in the Building and
Property, and Tenant hereby agrees that neither Tenant nor any other person shall have or may assert any
right, recourse or remedy to or against Landlord or its agent or any assets of Landlord, except to
the extent of their respective interests in the Building and the Property; and no officer,
shareholder, director, employee, partner, trustee or beneficiary of Landlord or its agent assumes
or shall have any personal liability of any kind whatsoever hereunder.

ARTICLE 36

LATE PAYMENT

     Tenant hereby acknowledges that late payment by Tenant to Landlord of Rent and other sums due
hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact number of
which will be extremely difficult to ascertain. Such costs include, but are not limited to
processing and accounting charges, and late charges which may be imposed on Landlord by the terms
of any mortgage or deed of trust covering the Premises. Accordingly, if any installment of Rent or
any other sum due from Tenant hereunder shall not be received by Landlord or Landlord’s designee
within ten (10) days after such amount shall be due, Tenant shall pay to Landlord a monthly late
charge equal to five percent (5%) of such overdue amount or the maximum allowed by Law, whichever
is less. The parties hereby agree that such late charge represents a fair and reasonable estimate
of the costs Landlord will incur by reason of late payment by Tenant. Acceptance of such late
charge by Landlord shall in no event constitute waiver of Tenant’s default with respect to such

26

 

overdue amount, nor prevent Landlord from exercising any of the other rights and remedies granted
hereunder.

ARTICLE 37

COVENANT OF QUIET ENJOYMENT

     Landlord agrees that Tenant, on paying the Rent and other payments herein reserved and on
keeping, observing and performing all of the other terms, covenants, conditions, provisions and
agreements herein contained on the part of Tenant to be kept, observed and performed, shall, during
the Term of this Lease, peaceably and quietly have, hold and enjoy the Premises subject to the
terms, covenants, conditions, provisions and agreements hereof, free from hindrance by Landlord or
any other person claiming by, through, or under Landlord.

27

 

     IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the date first
set forth above.

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

	 	Name:
	 	/s/ JEFFREY T. SANFILIPPO
	

	 	 	 	 
	

	 	 	 	Jeffrey T. Sanfilippo, Executive Vice President
	 
	 	 	 	 
	 	 	TENANT:
	 
	 	 	 	 
	 	 	PANASONIC CORPORATION OF NORTH AMERICA, a Delaware corporation
	 
	 	 	 	 
	

	 	Name:
	 	/s/ FUJIO TSUJI
	

	 	 	 	 
	

	 	 	 	Fujio Tsuji, Executive Vice President and
	

	 	 	 	Chief Financial Officer

28

 

EXHIBIT A

PLAN OF PREMISES

 

 

 

 

EXHIBIT B

Rules and Regulations

     To the extent that there is any inconsistency between the provisions of the Lease and these
Rules and Regulations, the provisions of the Lease shall control.

     (1) The sidewalks, halls, passages, exits, entrances, elevators and stairways of the Building
shall not be obstructed by any of the tenants or used by them for any purpose other than for
ingress to and egress from their respective premises. The halls, passages, exits, entrances,
elevators and stairways are not for the general public, and Landlord shall in all cases retain the
right to control and prevent access thereto of all persons whose presence in the reasonable
judgment of Landlord would be prejudicial to the safety, character, reputation and interests of the
Building and its Tenants. No Tenant and no employee or invitee of any Tenant shall go upon the
roof of the Building without the prior written consent of Landlord.

     (2) No sign, placard, picture, name, advertisement or notice, visible from the exterior of any
Tenant’s premises shall be inscribed, painted, affixed or otherwise displayed by any Tenant on any
part of the Building without the prior written consent of Landlord, which consent will not be
unreasonably withheld, except as set forth in the Lease. Landlord will adopt and furnish to Tenant
general guidelines relating to signs inside the Building on the office floors. Tenant agrees to
conform to such guidelines, but may request approval of Landlord for modifications, which approval
will not be unreasonably withheld. All approved signs or lettering on doors shall be printed,
painted, affixed or inscribed at the expense of the Tenant by a person approved by Landlord, which
approval will not be unreasonably withheld. Material visible from outside the Building will not be
permitted.

     (3) Tenant shall not allow a fire or bankruptcy sale or any auction to be held on the premises
or allow the premises to be used for the storage of merchandise held for sale to the general
public.

     (4) No Tenant shall allow the premises to be used for lodging, nor shall cooking be done or
permitted by any Tenant on the premises, except the use by the Tenant of Underwriters’ Laboratory
approved equipment for brewing coffee, tea, hot chocolate and similar beverages and vending
machines and microwave ovens for use by Tenant’s employees and personnel shall be permitted,
provided that such use is in accordance with all applicable federal, state and city laws, codes,
ordinances, rules and regulations.

     (5) No Tenant shall alter any lock or install a new or additional lock or any bolt on any door
of its premises without the prior written consent of Landlord. Tenant shall in each case furnish
Landlord with a key for any such lock. Each Tenant, upon the termination of its tenancy, shall
deliver to Landlord all keys and combinations to doors in the Building which shall have been
furnished to Tenant.

     (6) Landlord shall designate how all office equipment, furniture, appliances and other large
objects or property (“Equipment”) shall be moved in and/or out of the Building. Heavy objects

 

 

shall, if requested by Landlord, stand on wood strips of such thickness as is necessary to properly
distribute the weight. Landlord will not be responsible for loss of or damage to any such
Equipment from any cause, and all damage done to the Building by moving or maintaining such
Equipment shall be repaired at the expense of Tenant.

     (7) No Tenant shall use or keep in the premises of the Building any kerosene, gasoline or
inflammable or combustible fluid or material or use any method of heating or air conditioning other
than that supplied by Landlord, without Landlord’s prior written approval. No Tenant shall use or
keep or permit to be used or kept any foul obnoxious gas or substances in the premises, or permit
or suffer the premises to be occupied or used in a manner unreasonably offensive or objectionable
to Landlord or to other occupants of the Building by reason of noise, odors, or vibrations, or
unreasonably interfere in any way with other tenants or those having business therein.

     (8) Landlord shall have the right, exercisable with 30 day advance written notice and without
liability to any Tenant, to change the name and street address of the Building.

     (9) Landlord reserves the right to exclude from the Building any person who, in Landlord’s
reasonable opinion, has no legitimate business in the Building. Landlord shall in no case be
liable for damages for any error with regard to the admission to or exclusion from the Building of
any person. In the case of invasion, mob, riot, public excitement or other circumstances rendering
such action advisable in Landlord’s opinion, Landlord reserves the right to prevent access to the
Building during the continuance of the same by such action as Landlord may deem appropriate,
including closing doors.

     (10) No curtains, draperies, blinds, shutters, shades, screens or other coverings, hangings or
decorations shall be attached to, hung or placed in, or used in connection with any window of the
Building without the prior written consent of Landlord, and such items shall be installed as
instructed by Landlord.

     (11) Each Tenant shall see that the doors of its premises are closed and locked and that all
water faucets, water apparatus and utilities are shut off before Tenant or Tenant’s employees leave
the premises, so as to prevent waste or damage, and for any default or carelessness in this regard
Tenant shall made good all injuries sustained by other tenants or occupants of the Building or
Landlord. All Tenants shall keep the doors to the Building corridors closed at all times except
for ingress and egress.

     (12) The toilet rooms, toilets, urinals, wash basins and other apparatus shall not be used for
any purpose other than that for which they were constructed, no foreign substance of any kind
whatsoever shall be thrown therein and the expense of any breakage, stoppage or damage resulting
from the violation of this rule shall be borne by the Tenant who, or whose employees or invitees,
shall have caused it.

     (13) Except with the prior written consent of Landlord, no Tenant shall sell, or permit the
sale at retail, of newspapers, magazines, periodicals, theatre tickets or any other goods or
merchandise to the general public in or on the premises, nor shall any Tenant carry on, or permit
or allow any employee or other person to carry on, the business of stenography, typewriting or any

 

 

similar business in or from the premises for the service or accommodation of occupants of any other
portion of the Building, nor shall the premises of any Tenant be used for manufacturing of any
kind, or any business or activity other than that specifically provided for in such Tenant’s lease.

     (14) No Tenant shall install any radio or television antenna, loudspeaker, or other device on
the roof or exterior walls of the Building, without Landlord’s prior written consent.

     (15) Each Tenant shall store all its trash and garbage within its premises. No material shall
be placed on the trash boxes, receptacles or common areas if such material is of such nature that
it may not be disposed of in the ordinary and customary manner of removing and disposing of trash
and garbage in the Elgin area, without being in violation of any law or ordinance governing such
disposal. All garbage and refuse disposal shall be made only through entryways and elevators
provided for such purposes and at such times as Landlord shall designate.

     (16) Canvassing, soliciting, distribution of handbills, or any other written material peddling
in the Building are prohibited, and each Tenant shall cooperate to prevent the same.

     (17) Tenant agrees to abide by all governmental rules and regulations pertaining to
thermostatic control of the temperature on the Premises. Air conditioning services shall be
provided per the Lease.

     (18) Tenant agrees not to allow or keep any animals or pets of any kind on the premises,
except those seeing-eye dogs which are for the direct purpose of aiding and assisting the visually
impaired.

     (19) The requirements of the Tenants will be attended to only upon application by telephone,
in person or in writing at the office of Landlord.

     (20) These Rules and Regulations are in addition to, and shall not be construed to in any way
modify or amend, in whole or in part, the terms, covenants, agreements and conditions of any lease
of premises in the Building.

     (21) Landlord reserves the right to make such other and reasonable rules and regulations as in
its judgment may from time to time be needed for the safety, care and cleanliness of the Building,
and for the preservation of good order therein.

     (22) Landlord reserves the right to charge tenants and other occupants of the Building a
reasonable fee for services or work performed for less than all tenants of the Building.

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