Document:

Lease Agreement

 Exhibit 10.1 
  
 LEASE PROVISIONS 
  
 This Lease, made this 3rd day of
June, 2003 by the parties and upon the following terms and conditions: 
  
 WITNESSETH: 
  

			
	 1.
	 	 Fundamental Lease provisions:
	  	 
				
	 	 	 1.01
	 	Landlord	  	SHOPPES AT EDGEWATER
				
	 	 	 1.02
	 	Landlord’s Address:	  	GARY WAKSTEIN & ASSOCIATES, INC
				
	 	 	 	 	Payments & Notices	  	C/O MANAGEMENT INFORMATION SYSTEMS
				
	 	 	 	 	 	  	204 A ELLEN LANE
				
	 	 	 	 	 	  	PANAMA CITY BEACH, FL 32408
				
	 	 	 	 	Leasing, Marketing,	  	GARY WAKSTEIN
				
	 	 	 	 	Management;	  	C/O MANAGEMENT INFORMATION SYSTEMS
				
	 	 	 1.03
	 	Tenant	  	VISION BANCSHARES AND/OR ASSIGNS
				
	 	 	 1.04
	 	Tenant Address:	  	524 BECKRICH ROAD
				
	 	 	 	 	 	  	PANAMA CITY BEACH, FL 32408
				
	 	 	 1.05
	 	Shopping Center:	  	SHOPPES AT EDGEWATER
				
	 	 	 1.06
	 	Shopping Center Address:	  	FRONT BEACH ROAD AT BECKRICH ROAD
				
	 	 	 	 	 	  	PANAMA CITY BEACH, FL 32407
				
	 	 	 1.07
	 	Demised Premises:	  	OUT PARCEL BUILDING
				
	 	 	 	 	 	  	P-1
				
	 	 	 	 	 	  	

				
	 	 	 	 	 	  	

				
	 	 	 	 	 	  	 
				
	 	 	 1.08
	 	Tenant Occupancy:	  	 
				
	 	 	 	 	Date:	  	SEPTEMBER 5, 2002
				
	 	 	 1.09
	 	Lease Commencement	  	SEPTEMBER 1, 2002
				
	 	 	 	 	Date:	  	(SEPT 2002 RENT PRORATED AS OF 9/5/02
				
	 	 	 1.10
	 	Guarantor:	  	

				
	 	 	 1.11
	 	Tenant’s Business:	  	

				
	 	 	 	 	 	  	

				
	 	 	 	 	 	  	

				
	 	 	 	 	 	  	

				
	 	 	 	 	 	  	

				
	 	 	 1.12
	 	Business Name:	  	

				
	 	 	 1.13
	 	Hours of Operation:	  	

				
	 	 	 	 	 	  	

  

				
	 	 	 	 	 	  	

				
	 	 	 	 	 	  	

				
	 	 	 	 	 	  	

				
	 	 	 	 	 	  	 
				
	 	 	 1.14
	 	Lease Term;	  	2 YEARS
				
	 	 	 	 	 	  	

				
	 	 	 	 	 	  	

				
	 	 	 	 	 	  	

				
	 	 	 1.15
	 	Lease Term Option:	  	1. 5 YEAR OPTION AS OF 9/1/04
				
	 	 	 	 	 	  	2. 5 YEAR OPTION AS OF 9/1/09
				
	 	 	 	 	 	  	OPTION 1 RENT MINIMUM $40,000 ANNUAL
				
	 	 	 	 	 	  	OPTION 2 RENT MINIMUM $45,000 ANNUAL
				
	 	 	 	 	 	  	 INITIAL

				
	 	 	 	 	 	  	_________                  _________
			
	 1.16
	 	Minimum Annual Rent:	  	$36,000.00 PLUS FEES AND TAXES
				
	 	 	 	 	 	  	

				
	 	 	 	 	 	  	

			
	 1.17
	 	Minimum Monthly Rent:	  	$3,000.00 PLUS FEES AND TAXES
				
	 	 	 	 	 	  	

				
	 	 	 	 	 	  	

			
	 1.18
	 	Percentage Rent:	  	N/A
				
	 	 	 	 	 	  	

				
	 	 	 	 	 	  	

				
	 	 	 	 	 	  	

		
	 	 	 
	
	 ESTIMATED MONTHLY REES:

		
	 1.19
	 	Common Area Maintenance:
		
	 	 	Per sq. ft. $1.65 ; Per month $192.50 ; Per Year $2,310.00 ; (See Article VIII)
		
	 1.20
	 	Real Estate Taxes and Insurance:
		
	 	 	Per sq. Ft. $0.90 ; Per Month $105.00 ; Per Year $1,260.00 ; (See Article X)
		
	 1.21
	 	Marketing Fund:
		
	 	 	Provided that the TENANT shows proof of FIVE THOUSAND DOLLARS
		
	 	 	(5,000.00) in annual promotional expenditures to benefit the Panama City store,
		
	 	 	Tenant shall not be required to pay the Marketing Fund Charge.
		
	 1.22
	 	Trash Removal, Water and Sewer: N/A BILLED DIRECT TO TENANT
		
	 	 	Per sq. ft. $0.00; Per Month                     ; Per Year
                    ; (See Article X)
		
	 1.23
	 	Build Out: AS IS CONDITION
		
	 	 	  

  
  

		
	 	 	  

		
	 1.24
	 	 Landlord’s Contribution:

		
	 	 	  

		
	 	 	  

		
	 	 	  

		
	 1.25
	 	 Achievement:

		
	 	 	  

		
	 	 	  

		
	 1.26
	 	 Guarantees:

		
	 	 	  

		
	 	 	  

		
	 1.27
	 	Signage: MUST HAVE PRIOR APPROVAL FROM LANDLORD
		
	 	 	  

		
	 	 	  

		
	 	 	  

		
	 	 	  

		
	 	 	  

		
	 	 	  

  
 The foregoing
paragraphs shall hereafter be called “Fundamental Lease Provisions”. Reference in this Article I to other articles are for convenience and designate other articles where references to Fundamental Lease Provisions appear. Each reference
hereafter in the Lease to any of the Fundamental Lease Provisions contained in this Article shall be construed to incorporate all of the terms provided under each Fundamental Lease Provisions. In the event of any conflict between any Fundamental
Lease Provisions and the balance of the Lease, the Fundamental Lease Provisions shall control. 
  
 INITIAL 
  
 ________
             ________
                                 
  

 INDEX 
  
 LEASE AGREEMENT 
  

	ARTICLE	  	 	  	Page

			
	 I
	  	 Fundamental Lease Provisions
	  	I
			
	 II
	  	 Parties
	  	I
			
	 III
	  	 Demised Premises
	  	I
			
	 IV
	  	 Tenant Occupancy Date
	  	I
			
	 V
	  	 Use
	  	II
			
	 VI
	  	 Term
	  	II
			
	 VII
	  	 Rent
	  	II
			
	 VIII
	  	 Common Area Maintenance
	  	III
			
	 IX
	  	 Public Utilities
	  	III
			
	 X
	  	 Taxes
	  	III
			
	 XI
	  	 Repairs
	  	IV
			
	 XII
	  	 Tenant’s Right to Make Alterations
	  	IV
			
	 XIII
	  	 Affirmative Covenants of Tenant
	  	IV
			
	 XIV
	  	 Negative Covenants of Tenant
	  	VI
			
	 XV
	  	 Signs
	  	VII
			
	 XVI
	  	 Rights of Landlord
	  	VII
			
	 XVII
	  	 Damage to Premises
	  	VII
			
	 XVIII
	  	 Indemnification, Public Liability and Other Insurance
	  	VIII
			
	 XIX
	  	 Fire and Extended Coverage Insurance
	  	IX
			
	 XX
	  	 Waiver of Claims
	  	IX
			
	 XXI
	  	 Trade Fixtures
	  	IX
			
	 XXII
	  	 Assignment, Sub-Lease, License for Use
	  	IX
			
	 XXIII
	  	 Subordination
	  	X
			
	 XXIV
	  	 Estoppel Certificate
	  	X
			
	 XXV
	  	 Performance of Tenant’s Covenants
	  	X
			
	 XXVI
	  	 Events of Default
	  	XI
			
	 XXVII
	  	 Rights of Landlord Upon Default by Tenant
	  	XI
			
	 XXVII
	  	 Custom and Usage
	  	XII
			
	 XXIX
	  	 Surrender and Holding Over
	  	XIII
			
	 XXX
	  	 Additional Construction
	  	XIII
			
	 XXXI
	  	 Eminent Domain
	  	XIII
			
	 XXXII
	  	 Landlord’s Liability
	  	XIII
			
	 XXXIII
	  	 Notices
	  	XIV
			
	 XXXIV
	  	 Severability
	  	XIV
			
	 XXXV
	  	 Successors and Assigns
	  	XIV
			
	 XXXVI
	  	 Quite Enjoyment
	  	XIV
			
	 XXXVII
	  	 Force Majeure
	  	XIV
			
	 XXXVII
	  	 Scope and Interpretation of the Agreement
	  	XIV
			
	 XXXIX
	  	 Marketing Fund
	  	XV
			
	 XXXX
	  	 Brokerage
	  	XV
			
	 XXXXI
	  	 Lease Options
	  	XV
			
	 XXXXII
	  	 Captions
	  	XV
			
	 XXXXII
	  	 Building Standards
	  	XV
			
	 	  	 EXHIBIT “A” – SITE PLAN
	  	 
			
	 	  	 EXHIBIT “B” – DESCRIPTION OF LANDLORD’S WORK
	  	 
			
	 	  	 EXHIBIT “C” – DESCRIPTION OF TENANT’S WORK
	  	 
			
	 	  	 EXHIBIT “D” – GUARANTY
	  	 
			
	 	  	 EXHIBIT “E” – CORPORATE GUARANTY
	  	 
			
	 	  	 EXHIBIT “F” – SIGN REQUIREMENTS
	  	 

  

 LEASE 
  
 Note: See attached LEASE SUMMARY SHEET for the definitions of certain capitalized terms used in this LEASE. The definitions, terms and conditions of the LEASE SUMMARY
SHEET are incorporated in this LEASE by reference as though fully set forth herein. In the event of a conflict between the terms of this LEASE and the LEASE SUMMARY SHEET, the LEASE SUMARY SHEET shall govern. 
  

	 	II.	PARTIES. 

  
 This LEASE (herein referred to as the “LEASE”) is made by and between LANDLORD (as defined on the LEASE SUMMARY SHEET) and
TENANT (as defined on the LEASE SUMMARY SHEET). 
  

	 	III.	DEMISED PREMISES. 

  
 3.1 LANDLORD hereby leases to TENANT, and TENANT hereby rents and accepts from LANDLORD, for the term and upon the terms and conditions
set forth in this LEASE, the DEMISED PREMISES. 
  
 3.2 The boundaries of the Demised Premises shall consist of the interior surface of the ceiling slab, the interior surface of the floor slab, the center of common walls and the exterior surface of exterior walls. The Shopping Center shall
include all buildings and improvements at any time situated thereon, plus such additions and extensions as Landlord may from time to time designate as included within the Shopping Center. 
  
 3.3 The use and occupation by the TENANT of the DEMISED
PREMISES shall include the right to the non-exclusive use, in common with others, of all such automobile parking areas, driveways, truck and service areas, walks and other facilities designed for common use, as have been or may be installed by
LANDLORD, and of such other and further facilities as may be provided or designated from time to time by LANDLORD for common use, subject expressly, however, to the terms and conditions of this LEASE and to reasonable rules and regulations for the
use thereof, as prescribed from time to time. 
  

	 	IV.	TENANT OCCUPANCY DATE. 

  
 4.1 The TENANT OCCUPANCY DATE shall be the date the LANDLORD delivers to TENANT the keys to the DEMISES PREMISES in the condition required
by Exhibit “A”. The COMMENCEMENT DATE of this LEASE shall be September 1, 2002. 
  
 4.2 TENANT agrees that it shall, with due diligence, proceed to install such fixtures and equipment and to perform such work as shall be
necessary to prepare the DEMISED PREMISES for the opening of business. The work to be performed by the TENANT is set forth on Exhibit “C” (Description of Tenant’s Work), 

  

 I 

 
which is attached hereto. In the event that, for whatever reason, TENANT does not fully open the DEMISED PREMISES and commence to conduct its business as set
forth in Paragraph Four (4) hereof within thirty (30) days after the TENANT OCCUPANCY DATE, the LANDLORD shall have the option of terminating this LEASE by giving TENANT written notice of such termination. 
  

	 	V.	USE. 

  
 5.1 TENANT shall use and occupy the DEMISED PREMISES solely and exclusively for the conduct of TENANT’S BUSINESS (as defined in the
LEASE SUMMARY SHEET) and solely and exclusively under the BUSINES NAME (as defined on the LEASE SUMMARY SHEET) and for no other purpose whatsoever. 
  
 5.2 TENANT acknowledges that LANDLORD has or may, lease other space(s) in the SHOPPING CENTER to business which may be similar to or
competitive with TENANT’S business, in such numbers, sizes and locations and on such term as LANDLORD may elect, and that LANDLORD has made no written or oral promises or representations of any kind or sort whatsoever, whether directly or
indirectly, in respect of any of the dame except only and solely as specifically in writing set forth in this LEASE. 
  

	 	VI.	TERM. 

  
 6.1 This LEASE shall be for a term as provided in the Lease Subsection 1.14 (Article I), except as the same may be extended in accordance
with the LEASE TERM OPTION provisions in Subsection 1.15 hereof. For purposes of this Lease, the term “Lease Year” shall mean the twelve month anniversary of September 1, 2002 shall mean and include any renewal terms. 
  

	 	VII.	RENT. 

  
 7.1 MINIMUM ANNUAL RENT. As provided in the Lease Subsection 1.16 and 1.17 (article I), TENANT covenants and agrees to pay LANDLORD the
MINIMUM ANNUAL RENT plus all state sales, excise, privilege and use taxes on the rental and all additional rent of the DEMISED PREMISES under this Lease payable in advance in equal monthly installments. Installment payments shall be made on the
first day of each calendar month during the term of this LEASE without setoff, counterclaim or prior notice from LANDLORD. 
  
 7.2 ADDITIONAL RENT. In addition to the foregoing MINIMUM ANNUAL RENT and all other payments to be made by TENANT under this LEASE shall
be deemed to be and shall become additional rent and shall be due and payable on demand or together with the next succeeding installment of rent, whichever shall first occur; and LANDLORD, after at least ten (10) days notice to TENANT, shall have
the right to pay or do any act which requires the expenditure of any sums of money by reason of the failure or neglect of TENANT to perform any of the provisions of this LEASE, and in the event LANDLORD shall, at its election, and on such notice to
TENANT, pay such sums of do such acts requiring the expenditure of monies, TENANT agrees to pay LANDLORD, upon demand, all such sums, and the sums so paid by LANDLORD, shall be deemed additional rent and be payable as cash. 
  
 7.3 RELATIONSHIP OF PARTIES. Anything contained in this
LEASE to the contrary notwithstanding, it is specifically agreed that LANDLORD shall in no event be construed or deemed to be a partner or engaged in a joint venture with, or an associate of, TENANT in the conduct of its business and that LANDLORD
shall absolutely not be liable for any debts or other liabilities of any ling or sort whatsoever incurred by TENANT in the conduct of its business or otherwise. Nothing contained in this LEASE shall be deemed or construed to confer upon LANDLORD any
interest in the business of the TENANT. The relationship of the parties during the term of this LEASE shall at all times be solely that of LANDLORD and TENANT. 
  

7.4 TIME AND PLACE OF PAYMENT. TENANT shall promptly pay all rentals and other charges and render all statements to LANDLORD at
LANDLORD’S ADDRESS, or to such other person or corporation, and at such other place as may be designated from time to time by LANDLORD in writing. 
  

 II 

	 	VIII.	COMMON AREA MAINTENANCE. 

  
 COMMON AREA MAINTENANCE. As used in this Lease, the term common area costs means the total of all items of expense reasonably and directly
relating to operating, managing, equipping, policing and protecting (if provided), lighting, insuring, repairing (excluding, however, correction of original construction defects or any items under warranty or any repairs reimbursable by
LANDLORD’S insurance required hereunder or any repair or other work necessitated by condemnation, fire, or other casualty), replacing (excluding, however, any costs for items that are capitalized under generally accepted accounting principles)
and maintaining the common areas. Such costs shall include, but shall not be limited to, all expenses of removing snow, ice, dirt ad debris; all costs of and replacing flowers and landscaping and all supplies required therefore; and all costs of
utilities used in connection with the common areas, including, but not limited to, all costs of operating and maintaining lighting facilities, storm drainage systems, all costs for boiler and electrical apparatus insurance, all costs of a supervised
fire sprinkler alarm system, premiums for workmen’s compensation insurance, wages, unemployment taxes, and social security taxes and administrative costs. As provided in Lease Subsection 1.19 (Article I), effective upon the date on which this
LEASE commences and as additional rent hereunder, TENANT shall pay the LANDLORD on the first day of each calendar month during the LEASE TERM TENANT’S share of common area costs. Within ninety (90) days following the end of the first Lease
Year, Landlord shall furnish to TENANT a statement (“STATEMENT”) certified as correct by an officer of LANDLORD, showing the total common area costs actually incurred for the first Lease Year and the amount of common area costs paid by
TENANT to date. If TENANT’S share of the total actual common area costs for such Lease Year, calculated as the ratio of TENANT’S square footage to the total leasable square footage of the Shopping Center times such cost, shall be less than
TENANT’S payments so made, the overpayment shall be refunded to TENANT. If each succeeding Lease Year, TENANT shall pay to LANDLORD monthly, as aforesaid, a common area cost equal to one-twelfth (1/12) of the common area cost actually paid by
TENANT in the prior Lease Year. At the end of each succeeding Lease Year LANDLORD shall provide TENANT with a statement of the total actual common area costs incurred and the amount of such costs paid by TENANT to date. If the amount of such costs
paid by TENANT to date for that Lease Year is greater than TENANT’S pro rata share of common area costs calculated as above, LANDLORD shall refund the difference with the statement. If Tenant’s pro-rata share of the total actual common
area costs incurred exceeds the amount paid by TENANT to date for that Lease Year, TENANT shall pay to LANDLORD the difference. Notwithstanding anything herein to the contrary, common area costs shall not include costs for improving any
TENANT’S space, costs exceeding those obtainable through competitive bidding, services or benefits provided to other TENANTS but not to TENANT, and any costs, fines or penalties imposed due to LANDLORD’S violation of any governmental rule
or regulation. TENANT SHALL HAVE THE RIGHT TO AUDIT ALL COMMON AREA COSTS AND EXPENSES ANNUALLY, AT TENANT’S COST AND EXPENSE. 
  

	 	IX.	PUBLIC UTILITIES. 

  
 TENANT shall pay for all utilities furnished to the DEMISED PREMISES including without limitation, electricity, gas, trash removal,
telephone service, water and sewer. 
  

	 	X.	TAXES. 

  
 10.1 As provided in Lease Subsection 1.20, commencing with the LEASE COMMENCEMENT DATE TENANT agrees to pay to the LANDLORD throughout the
term of this LEASE its proportionate share of all REAL ESTATE TAXES and all assessments, without any allowance for any discount, which may be levied against the SHOPPING CENTER (including the fee interest, the leasehold interest, and otherwi(se) by
the local tax authorities and all other governmental agencies. Said proportionate share shall be abased upon the ratio of the square feet of the DEMISED PREMISES to the total square feet of all the rentable building space in the SHOPPING CENTER. Any
and all payments due hereunder for such REAL ESTATE TAXES shall be made by TENANT to LANDLORD within thirty (30) days after delivery by LANDLORD to TENANT of a statement, along with a copy of the original bill, which statement indicates a
computation of TENANT’S proportionate share of such REAL 

  

 III 

 
ESTATE TAXES. In the event the last lease year is not a calendar year, TENANT’S proportionate share of such REAL ESTATE TAXES shall be prorated.

  
 10.2 LANDLORD may require at any time during
the term of this LEASE and from time to time, at its sole option and in its sole discretion, that TENANT shall pay one twelfth (1/12th) if the annual amount estimated by LANDLORD to be due under this paragraph ten (10) with each monthly payment of MINIMUM ANNUAL RENT with appropriate adjustments, if any, to be made upon receipt of actual REAL ESTATE TAX
bill(s). 
  
 XI. REPAIRS. 
  
 TENANT shall keep and maintain and repair at TENANT’S
sole expense, the non-structural interior of the DEMISED PREMISES, together with all fixtures, electoral, plumbing, heating, air conditioning, door and window systems in good working order and proper repair, using materials and labor of kind and
quality equal to or better than the original work, and shall surrender the DEMISES PREMISES at the expiration or earlier termination of this LEASE in as good condition as when received, excepting only ordinary wear and tear. 
  

	 	XXI.	TENANT’S RIGHT TO MAKE ALTERATIONS. 

  
 TENANT covenants and agrees that it shall not make any alterations, improvements or additions to or upon the DEMISED PREMISES during the
term of this LEASE or any extension hereof, if any, without first obtaining the prior written consent of LANDLORD, which consent shall not be reasonably withheld. LANDLORD’S consent shall not be required for interior, non-structural,
nonmechanical alterations of less than $25,000.00 in value per year. All alterations, improvements and additions made by TENANT shall remain upon the DEMISED PREMISES at the expiration, or earlier termination, of this LEASE and shall become the
property upon, installation, unless LANDLORD shall prior to the termination of this LEASE have given written notice and direction to TENANT to remove the same at TENANT’S sole cost and expense, in which event TENANT shall at its expense remove
such alterations, improvements and additions and restore the DEMISED PREMISES to the same good working order and condition in which it was at the commencement of the lease term. Should TEMANT fail to do so, LANDLORD may do so, at LANDLORD’S
option, collecting in such instance the cost and expense thereof from the TENANT as additional rent. 
  

	 	XIII.	AFFIRMATIVE COVENANTS OF TENANT. 

  
 13.1 TENANT agrees: 
  
 13.1.1 To comply with any and all requirements of any of the constituted public authorities having, or purporting to have, jurisdiction
and with the terms of any Local, County, State, or Federal Statute, ordinance, or regulation applicable to TENANT or its use of the DEMISED PREMISES, and the LANDLORD warrants that the DEMISED PREMISES shall be in such compliance as of the TENANT
OCCUPANCY DATE, and to save and hold LANDLORD harmless from, and by these terms to defend and indemnify LANDLORD against any and all claims, causes, actions, suits, penalties, fines, costs, expenses, damages, or loss of any kind, including, without
limitation, LANDLORD’S attorney’s fees resulting from TENANT’S failure to do so, and 
  
 13.1.2 To give LANDLORD prompt written, full, complete, and specific notice of any accident, fire, damage, or injury whatsoever occurring
in, on, or to the DEMISED PREMISES, and 
  
 13.1.3 That all loading and unloading of goods shall be done only at such times and in areas and through such entrances as may be designated for such purposes by LANDLORD and that trailers or trucks shall not be permitted to remain parked
overnight in any area of the SHOPPING CENTER, whether loaded or unloaded, and 
  

 IV 

 13.1.4 To deposit all garbage, trash and refuse in the container(s) specified by LANDLORD
for collection in the manner and at the times specified by LANDLORD in accordance with all regulations of the public authorities having, or purporting to have, jurisdiction, and 
  
 13.1.5 To keep the outside areas immediately adjoining the DEMISED PREMISES clean and not to burn, place or
permit any rubbish, obstruction or merchandise in such areas, and 
  
 13.1.6 To keep DEMISED PREMISES clean, orderly, sanitary and free from objectionable odors, insects, vermin and other pests and, with affirmative action, to disallow the usage and possession of any illegal substance
in, on or upon the DEMISED PREMISES, and 
  
 13.1.7 To require TENANT’S employees to park their cars only in those portions of the parking areas reasonably designated for that purpose by LANDLORD, and 
  
 13.1.8 To keep TENANT’S display windows in or on the DEMISED PREMISES dressed and illuminated and its
signs and exterior lights well lighted at all times during the term of this LEASE during TENANT’S HOURS OF OPERATION (as defined on the LEASE SUMMARY SHEET) and to keep the DEMISED PREMISES open for business during TENANT’S HOURS OF
OPERATION and for such additional hours as may become the standard as maintained by a majority of the tenants of the SHOPPING CENTER, and 
  
 13.1.9 To conduct TENANT’S BUSINESS in the DEMISES PREMISES in all respects in a dignified manner and in accordance with high
standards of store operation, and 
  
 13.1.10 To
comply with all reasonable rules and regulations of times and from time to time promulgated by LANDLORD, which LANDLORD, in its sole reasonable discretion, shall deem necessary or appropriate in connection with the DEMISED PREMISES, the building(s)
of which the SHOPPING CENTER, is comprised including, without limitation, the installation of such fire extinguishers and other safety equipment as LANDLORD may reasonably require in accord with the applicable code, and 
  
 13.1.11 That TENANT shall forthwith pay all liens of
contractors, subcontractors, subsubcontractors, mechanics, laborers, and materialmen and all other legal costs and changes, bond premiums for release of liens, including all attorney’s fees of LANDLORD incurred in and about the prosecution or
defense of any suit in discharging the DEMISED PREMISES and , alternatively, the SHOPPING CENTER or any part or portion thereof from any liens, charges, judgment or encumbrances caused or suffered to be caused, directly or indirectly, by TENANT, and
that all the costs and charges above referred to shall be considered as rent due and shall be included in any lien for rent, and 
  
 13.1.12 To warehouse, store and/or stock in the DEMISED PREMISES only such goods, wares and merchandise as TENANT intends to offer for
sale at retail at, in, from or upon the DEMISED PREMISES (but that the foregoing shall not preclude occasional emergency transfers of merchandise to the other stores of TENANT, if any, not located in the SHOPPING CENTER) and that TENANT shall use
for office, clerical or other non-selling purposes only such limited space in the DEMISED PREMISES as is from time to time then reasonably required for TENANT’S business in the DEMISED PREMISES, and 
  
 13.1.13 To be responsible for and to pay before delinquency
all municipal, county, state or federal taxes assessed during the term of this LEASE against any leasehold interest or personal property of any kind, owned or placed in, upon or about the DEMISES PREMISES by the TENANT, and 
  
 13.1.14 To comply fully with all fire and safety codes,
rules, and regulations, in effect from time to time during the term of this LEASE, of the public authorities having, or purporting to have, jurisdiction and to install, keep, and maintain at TENANT’S cost and expense any and all systems,
equipment, and the like or differing required by any of the same, and 
  

 V 

 13.1.15 TENANT shall not have any authority to create any liens for labor or material on
or against the LANDLORD’S interest in the DEMISED PREMISES or the SHOPPING CENTER and all persons contracting with the TENANT for the destruction or the removal of any building or for the erection, installation, alteration, or repair of any
building or other improvements in, on or to the DEMISED PREMISES; and all materialmen, contractors, subcontractors, subsubcontractors, mechanics, and laborers are hereby charged with notice that they must look solely and only to the TENANT’S
interests only in the DEMISED PREMISES to secure the payment of any bill for work done or material furnished during the rental period created by this LEASE and, specifically, not to the LANDLORD or the LANDLORD’S interest. TENANT agrees that it
will include the language of this paragraph in any contract or agreement for any work done by TENANT in the DEMISED PREMISES. 
  

	 	XIV.	NEGATIVE COVENANTS OF TENANT. 

  
 TENANT agrees that it will not do any of the following without the express, specific prior consent in writing of the LANDLORD, which
consent shall not be unreasonably withheld or delayed: 
  
 14.1 Use or operate any machinery or equipment that, in LANDLORD’S sole reasonable option, is harmful to the building or disturbing to other tenants in the building or the SHOPPING CENTER of which the DEMISED PREMISES is a part; nor
shall TENANT use any loudspeakers, television, phonographs, radios or other like or differing devices in a manner so as to be heard or seen outside of the DEMISED PREMISES, Further, TENAT shall not display merchandise on the exterior of the DEMISES
PREMISES either for sale, promotion, or other purpose; 
  
 14.2 Do, or suffer to be done, any act, manner or thing objectionable to the fire insurance companies whereby the fire insurance or any other insurance now in force or hereafter to be placed on the DEMISED PREMISES or any part thereof, or
on the building or SHOPPING CENTER of which the DEMISES PREMISES is a part shall become void or suspended, or whereby the same be rated at a more hazardous risk that at the date when TENANT received possession hereunder; in case of a breach of this
covenant, in addition to all other remedies of LANDLORD hereunder, TENANT agrees to pay to LANDLORD as additional rent any and all increases or increases of premiums on insurance carried by LANDLORD on the DEMISED PREMISES, or any part thereof, and
on the building and SHOPPING CENTER of which the DEMISES PREMISES is a part, caused in any way by the occupancy or use of TENANT; 
  
 14.3 Attach any awnings, antenna or other projections to the roof or the outside walls of the DEMISED PREMISES of which the DEMISED
PREMISES is a part; 
  
 14.4 Conduct any auction,
fire, bankruptcy, liquidation, selling-out or like sale in, on or about the DEMISED PREMISES; 
  
 14.5 Solicit business or distribute any handbills or other advertising matter in the common areas of the SHOPPING CENTER including,
without limitation, sidewalks, pedestrian walkways, and parking areas and lots; 
  
 14.6 Operate vending machines, pinball machines, or electronic games or similar devices within the DEMISES PREMISES; 
  
 14.7 Penetrate the roof of the DEMISED PREMISES without
LANDLORD’S written consent. TENANT shall be responsible for the repair of roof leaks caused by such penetration even though TENANT has obtained LANDLORD’S prior written consent thereto. 
  

 VI 

	 	XV.	SIGNS. 

  
 TENANT shall not exhibit, inscribe, paint, or affix sign, advertisement, notice or other lettering on any part of the outside of the
DEMISED PREMISES or of the building or the SHOPPING CENTER of which the DEMISED PREMISES is a part, or inside the DEMISES PREMISES if visible from the outside, without first obtaining LANDLORD’S prior, specific written approval thereof, such
approval not to be unreasonably withheld. LANDLORD’S consent shall not be required for the interior use and placement of TENANT’S professionally made signs used chain wide. The display of all exterior signs shall be governed by the
provisions of paragraph 1.27 of this LEASE, and TENANT hereby agrees to maintain each and every such sign, lettering and the like as may be approved by LANDLORD in good condition, working order, and repair at all times. There is attached to this
LEASE an instrument entitled “Sign Requirements” (see EXHIBIT “F”), and TENANT agrees that TENANT’S sign(s) shall comply with the contents of such “Sign Requirements”, TENANT agrees that it will have all such
sign(s) prepared and installed at TENANT’S expense. 
  

	 	XVI.	RIGHTS OF LANDLORD. 

  
 LANDLORD reserves, without limitation to any and all of LANDLORD’S other rights under this LEASE, the following rights with respect
to the DEMISES PREMISES: 
  
 16.1 At all
reasonable times during TENANT’S HOURS OF OPERATION and from time to time and upon reasonable prior notice, by itself or its duly authorized agents or designees to go upon and inspect the DEMISED PREMISES, and every part thereof, and, at its
option, to make repairs, to the DEMISED PREMISES or the building of which the DEMISED PREMISES is a part. Said repairs shall not be done during the two (2) weeks prior to Father’s Day or from November 1 to December 31 in any year, unless deemed
absolutely necessary by LANDLORD in its sole reasonable discretion. 
  
 16.2 To display a “For Sale” or other sign(s) at any time and from time to time; and after notice from either party, whether express or implied by conduct, of intention to terminate this LEASE or any time
within three (3) months prior to the expiration of the term of this LEASE, a “For Rent” or “For Lease” sign(s), or both “For Rent” and “For Lease” signs; and all of said signs shall be placed upon such part of
the DEMISED PREMISES as LANDLORD shall require, except on display windows or on door or doors leading into the DEMISED PREMISES. Prospective purchasers or tenants authorized by LANDLORD may inspect the DEMISES PREMISES at all reasonable hours at any
time and from time to time during TENANT’S HOURS OF OPERATION, but shall not interfere with TENANT’S operation. 
  
 16.3 To install or place upon, or affix to, the roof and exterior walls of the DEMISED PREMISES equipment, signs, displays, antenna, and
any other object(s) or structure(s) of any kind or sort, provided only and solely that the same shall not materially impair the structural integrity of the building or interfere directly with TENANT’S occupancy or use of the DEMISED PREMISES.

  

	 	XVII.	DAMAGE TO PREMISES. 

  
 The partial destruction of the LEASED PREMISES shall not render this lease void or voidable or terminate it except as provided in this
paragraph 17. If the LEASED PREMISES is damaged or partially destroyed by fire or other casualty, TENANT shall immediately give written notice to LANDLORD of such damage or destruction amounts to less than fifty percent (50%) of the value of
improvements to the LEASED PREMISES, LANDLORD shall repair the damage and rebuild the improvement to substantially the same condition as it was prior to the damage, with reasonable speed and within a reasonable time. If the damage amounts to fifty
percent (50%) or more of the value of the improvements of the LEASED PREMISES, LANDLORD shall have the option, at its sole discretion, to be exercised in writing within fifteen (15) days from receipt of the aforesaid notice from TENANT, either to
terminate this LEASE or repair the damage and rebuild the building to substantially the same condition as it was prior to the damage with reasonable speed. In the event of any damage or destruction contemplated by this paragraph, the rent payable
under this LEASE shall be abated in proportion to the impairment of the use that can reasonably be made of the LEASED PREMISES until the building can be rebuilt or repaired, and 

  

 VII 

 
if the LEASE is terminated as herein provided, rent shall cease as of the date that TENANT gibes notice of the damage or destruction to LANDLORD in the
manner provided in this LEASE. 
  

	 	XVIII.	INDEMNIFICATION, PUBLIC LIABILITY AND OTHER INSURANCE. 

  
 18.1 LANDLORD shall not be liable for any loss, injury, death or damage to persons or property which at any time may be suffered or
sustained by TENANT or by any person who may at any time be using or occupying or visiting the DEMISED PREMISES or the COMMON AREAS, or be in, on or about the same, whether such loss, injury, death, or damage shall be caused by or in any way result
from or arise out of any omission or negligence of TENANT, it’s agents, contractors, customers, invitees, principals, directors, officers or employees, or of any occupant, subtenant, visitor or user of any portion of the DEMISED PREMISES, or
shall result from or be caused by any other matter, thing or cause. 
  
 Notwithstanding anything to the contrary contained in this LEASE and irrespective of any insurance carried by TENANT for the benefit of LANDLORD under the terms hereof, TENANT shall protect, insure, defend, and
indemnify and hold harmless LANDLORD from and against all claim, liability, loss, or damage whatsoever on account of any such loss, injury, death, or damage. TENANT hereby waives any and all claims against LANDLORD for damages to the property of
TENANT in, on or about the DEMISED PREMISES or COMMON AREAS, and for injuries to persons or property in or about the DEMISES PREMISES or COMMON AREAS from any cause arising at any time; provided that the forgoing shall not apply to any loss, injury,
death or damage arising by reason of the negligence or intentional misconduct of LANDLORD, its agents or employees, for which LANDLORD shall indemnify and hold TENANT harmless. In no event shall LANDLORD’S indemnification of TENANT apply to any
injury, damage or death arising by reason of the negligence or intentional misconduct of TENANT, its agents or employees. 
  
 18.2 TENANT shall procure and maintain during the lease term a policy or policies of public liability and property damage insurance
insuring both LANDLORD and TENANT from and with a good and solvent insurance company or companies registered to do business in the State of Florida, such insurance to afford protection to a limit of not less than One Million Dollars ($1,000,000.00)
for injury to or death of any one person and Three Million Dollars ($3,000,000.00) with respect to any accident or occurrence and to a limit of not less than One Million Dollars ($1,000,000.00) for property damage. Such policies of insurance shall
cover the DEMISES PREMISES, the sidewalk in front thereof, the parking areas in the front and rear thereof, entrance ways to the DEMISED PREMISES and all other portions of the building occupied or used by TENANT or person whose presence is
occasioned by TENANT’S rental of the LEASE PREMISES. 
  
 18.3 TENANT shall, during the entire term of this LEASE, keep and maintain in full force and effect at its sole cost and expense an all risk policy of insurance upon of the plate glass in the DEMISED PREMISES, or, in
the alternative, TENANT may self insure the plate glass. In either event, both LANDLORD and TENANT shall be named as parties covered thereby as their respective interests may appear. 
  
 18.4 TENANT shall, at all times during the term of this LEASE, keep and maintain in full force and effect at
its sole cost and expense an all risk insurance policy equal to the replacement costs of TENANT’S betterments and improvements in and on the DEMISED PREMISES. TENANT shall have the right to self insure the foregoing items, upon LANDLORD’S
prior written approval which shall not be unreasonably withheld. 
  
 18.5 TENANT shall deliver to LANDLORD certificate of coverage evidencing the insurance procured by TENANT under the terms hereof which certificate shall be kept and retained by LANDLORD at all times. Such policies of
insurance shall name LANDLORD and the holder of any mortgage on the property as co-insured. All policies shall provide that written notice from the insurance carrier shall be received by LANDLORD at least fourteen (14) days before any such policies
are cancelled or the coverage thereunder diminished. TENANT shall pay any and all premiums or other expenses arising in connection with the furnishing of the insurance by TENANT as provided herein. In the event that TENANT shall neglect of fail for
any reason to procure or maintain policies of liability insurance as required by this paragraph, and to pay the premiums therefore, LANDLORD may, 

  

 VIII 

 
at LANDLORD’S option, procure and renew any such insurance and pay the premiums thereon. Any amount paid for such insurance by LANDLORD shall become
immediately due and payable by TENANT to LANDLORD as additional rent. 
  
 XIX. FIRE AND EXTENDED COVERAGE INSURANCE. 
  
 19.1 LANDLORD shall at all times during the term hereof maintain in effect a policy or policies of insurance covering the DEMISED PREMISES and the SHOPPING CENTER, providing protection against any peril included
within the classification “Fire and Extended Coverage” (as defined on the LEASE SUMMARY SHEET). 
  
 19.2 As provided in Lease Subsection 1.20 (Article I), in each lease year TENANT shall pay to LANDLORD, in addition to all rents specified
in Paragraph 7, as additional rent, a prorated share of the costs of Fire and Extended Coverage Insurance, based upon the ratio of square feet of the DEMISED PREMISES to the total square feet of all rentable building space in the SHOPPING CENTER.

  

	 	XX.	WAIVER OF CLAIMS. 

  
 20.1 LANDLORD and LANDLORD’S agents, employees and contractors shall not be liable for, and TENANT hereby irrevocably and
unconditionally releases all claims for, damage to person(s) or property sustained by TENANT or any person claiming by, through, or under TENANT resulting from any fire, accident, occurrence or condition in or upon the DEMISED PREMISES, except in
instances involving neglect or misconduct on the part of LANDLORD, it’s agents, contractors or employees. 
  
 20.2 LANDLORD and TENANT agree that in the event the DEMISED PREMISES or its contents are damaged or destroyed by fire or other insured
casualty, the rights, if any, of either party against the other with respect to such damage or destruction are waived to the extent of insurance proceeds and that all policies of fire and/or extended coverage or other insurance covering the DEMISED
PREMISES or its contents shall contain an clause of endorsement providing in substance that the insurance shall not be prejudiced if the assureds have waived right of recovery from any person or persons prior to the date and time of loss or damage
if any. 
  

	 	XXI.	TRADE FIXTURES. 

  
 All trade fixtures installed by TENANT in the DEMISED PREMISES shall remain the property of TENANT and shall be removable at the
expiration or earlier termination of this LEASE or any renewal or extension thereof, provided TENANT shall not at such time bi in default under any covenant or agreement contained in this LEASE, and provided, further, that in the event of such
removal TENANT shall promptly and fully restore the DEMISES PREMISES to its original order and condition, ordinary wear and tear excepted. Any such trade fixtures not removed at or prior to such termination shall be and become the property of
LANDLORD. All lighting fixtures, air conditioning equipment, electrical and plumbing installations, ceiling and ceiling support systems, the store front and demising and interior partitions, whether or not installed by TENANT, shall not be
considered trade fixtures and shall not be removable by TENANT at the expiration or earlier termination of this LEASE or at the expiration of any renewal or extension thereof and shall be the property of LANDLORD. 
  

	 	XXII.	ASSIGNMENT, SUB-LEASE, LICENSE FOR USE. 

  
 TENANT shall have neither the power nor the right to assign this LEASE, sublease any part of the DEMISED PREMISES, or permit any other
person, except TENANT’S agents and employees, to occupy the DEMISED PREMISES or any part thereof, without prior written consent of LANDLORD, which shall not be unreasonably withhold. In furtherance of the foregoing and not in limitation,
LANDLORD and TENANT agree that LANDLORD may withhold its consent to any proposed assignment or subletting of the DEMISED PREMISES for the following reasons: (i) a conflict with the “TENANT’S BUSINESS” provisions set forth on the Lease
Summary Sheet; (ii) the financial worth and/or stability of the proposed assignee or subtenant is less than that of TENANT at 

  

 IX 

 
the commencement of the term of this Lease; (iii) the percentage rental that would reasonably be expected from the sales of the proposed assignee or
subtenant would reasonably be expected to be less than that of TENANT. The covenants and agreements of this LEASE are both personal to LANDLORD and TENANT and covenants running with the land, and no assignment or sublease shall relieve TENANT herein
f any of its obligations of this LEASE. Nothing to the contrary in this paragraph XXII withstanding, LANDLORD’S consent shall not be required for any assignment or sublease to a parent, affiliate or subsidiary of the TENANT, or in connection
with the sale of all, or substantially all, of the TENANT’S assets, provided that the proposed assignee or sublease has a net worth as least as great as that of TENANT and that the proposed assignee or sublessee will continue to operate the
same business in the DEMISED PREMISES. Each and every assignee or sublessee who accepts any assignment or sublease of this lease agreement and the property leased hereunder shall automatically become obligated to perform each and every covenant and
agreement to be performed by TENANT under this LEASE and shall be jointly and severally liable with TENANT for the performance thereof, it being expressly understood by TENANT that its liability for any unperformed covenant or agreement shall
continue despite said assignment or sublease; except that a sublease shall be obligated to perform said covenants and agreements only insofar as they relate to that part of the property subleased and the rent required by the sublease agreement.
Furthermore, one consent by LANDLORD shall not be consent to any subsequent assignment, sublease or occupation by persons other than TENANT. 
  

	 	XXIII.	SUBORDINATION.  

  
 TENANT agrees that it shall, and hereby does by these terms, fully, automatically, absolutely and unconditionally subordinate its rights
hereunder to the lien, priority and effect of any mortgage(s) or other security instruments now or hereafter placed against LANDLORD’S (or its successor’s) interest in the Shopping Center, or alternatively, any or all of the buildings now
or hereafter built or to be built in the Shopping Center by LANDLORD and to any and all advances, without limitation, made or to be made thereunder and to the interest thereon and to all renewals, replacements, consolidations and extensions thereof
and that TENANT will from time to time promptly execute, upon demand and without charge, such documents and instruments in such form and substance as LANDLORD or its mortgagee(s) or its other lender(s) may require implementing further the foregoing
subordination and agreement to subordinate; provided that TENANT, so long as it is not in default hereunder, shall at all times continue to peacefully and quietly occupy the DEMISED PREMISES. TENANT further agrees that it shall enter into and
execute, without charge, all other documents which any mortgagee(s) or any ground lessor may reasonably request TENANT to enter into and execute, including a subordination, non-disturbance and attornment in form required by any mortgagee(s) or
ground lessor. 
  

	 	XXIV.	ESTOPPEL CERTIFICATE. 

  
 TENANT, upon request of LANDLORD or any holders of a mortgage(s) against the LANDLORD’S interest, shall from time to time without
charge deliver or cause to be delivered to LANDLORD or such mortgagee(s), within ten (10) days from the date of request, a certificate, duly executed and acknowledged in form for recording, certifying, if true, that this LEASE is valid and
subsisting and in full force and effect, that LANDLORD is not in default under any of the terms of this LEASE or specifying, if applicable, any default of LANDLORD, and certifying such other reasonable and truthful matters as LANDLORD may request.

  

	 	XXV.	PERFORMANCE OF TENANT’S COVENANTS. 

  
 TENANT covenants and agrees that it shall perform all agreements and covenants herein expresses on its part to be performed, that it
shall, promptly upon receipt of written notice of non-performance thereof, comply with the requirements of such notice, and that, if TENANT shall not comply with such notice to the satisfaction of LANDLORD within ten (10) days after delivery thereof
(or if such compliance cannot reasonably be completed within ten (10) fays, if TENANT shall not commence to comply within such period and thereafter in good faith expeditiously proceed to completion with all due diligence) LANDLORD may, at its
option, do or cause to be done any or all of the things specified in said notice and in so doing LANDLORD shall have the right to cause its agents, employees and contractors to enter upon the DEMISED PREMISES and in such event shall have no
liability whatsoever to TENANT for any loss or damage resulting in any way or manner whatsoever from such 

  

 X 

 
action; and TENANT agrees to pay promptly upon demand any reasonable expense whatsoever incurred by LANDLORD in taking such action, any such sum to be
collectible from TENANT as additional rent thereunder. 
  

	 	XXIV.	EVENTS OF DEFAULT. 

  
 The occurrence of any one or more of the following shall constitute an event of default hereunder: 
  
 26.1 Failure of TENANT to commence business within the time
period specified in Paragraph 3 hereof; 
  
 26.2
Substantial discontinuance by TENANT of the conduce of its business in the DEIMIED PREMISES; 
  
 26.3 The filing of a petition by or against TENANT for adjudication as a bankrupt or insolvent, or for its reorganization or for the
appointment of a receiver or trustee of TENANT’S property; any reorganization or proceedings under any provisions of the Federal Bankruptcy Code; an assignment by TENANT for the benefit of creditors; or the taking possession of the property of
TENANT by any governmental officer or agency pursuant to the statutory authority for the dissolution or liquidation of TENANT; 
  
 26.4 Failure of TENANT to pay when due any installment of rent hereunder or any other sum hereunder required to be paid by TENANT, if such
failure to pay shall not be cured on or before ten (10) consecutive days after written demand by LANDLORD; 
  
 26.5 Vacation or desertion of the DEMISED PREMISES or permitting the same to be empty and unoccupied; 
  
 26.6 TENANT’S removal of goods or property from or out
of the DEMISED PREMISES otherwise than in the ordinary and usual course of business (except for seasonable interstore transfers of merchandise), without having first paid and satisfied LANDLORD for all rent which may become due during the entire
term of this LEASE; 
  
 26.7 TENANT’S
failure to perform or abide by any other term, provision, covenant, agreement, undertaking, or condition of this LEASE within ten (10) days after written notice and demand, unless the failure is of such character as absolutely to require more than
ten (10) days to cure, in which event TENANT’S failure to proceed immediately, expeditiously, continuously, and diligently to cure fully and completely such failure shall constitute an event of default. 
  

	 	XXVII.	RIGHTS OF LANDLORD UPON DEFAULT BY TENANT. 

  
 27.1 If an event of default as provided in Paragraph 26 occurs, then the LANDLORD, in addition to all rights and remedies granted under
the laws of the State of Florida, shall have any and all of the following rights: 
  
 27.1.1 To lawfully re-enter and remove all persons and property from the DEMISED PREMISES, and such property may be removed and stored in
a public warehouse, sidewalk or elsewhere at the cost of and for the account and sole risk of TENANT, and without LANDLORD or its agents being deemed guilty of trespass, or becoming liable for any loss or damage which may be occasioned thereby.

  
 27.1.2 To terminate the LEASE and re-let the
DEMISED PREMISES for the account of the LANDLORD or within the sole reasonable discretion of LANDLORD the premises may be re-let for the account of the TENANT. 
  

 XI 

 27.1.3 To declare the balance of the entire unpaid rent for the entire rental term of
this LEASE, discounted to its present value at six percent (6%) interest, to be accelerated and to be immediately due and payable, and LANDLORD may then proceed immediately to collect all of the unpaid rent called for by this LEASE by distress or
otherwise and to terminate this LEASE, without prejudice to TENANT’S obligation for all such accelerated rent should TENANT fail then to pay the balance of the entire rent for the entire rental term. For purposes of this Paragraph 27.1.3, said
balance means the entire MINIMUM ANNUAL RENT for the balance of the term of this LEASE plus, for each remaining year of the term of this LEASE, and prorate for any part of the year, the yearly average of the PERCENTAGE RENT paid by the TENANT upon
the GROSS RECEIPTS in the DEMISED PREMISES from the commencement of the term of this LEASE to the end of the lease year next preceding the date of default in the payment of rent by TENANT. 
  
 27.2 TENANT agrees to pay all costs, whether or not
otherwise considered “court costs”, and expenses of collection and reasonable attorney’s fees on any part of rent of sums agreed to be treated as rent that may be collected by an attorney, suit, distress, or foreclosure; and further,
in the event that TENANT fails to promptly and fully perform and comply with each and every term, provision, covenant, agreement, undertaking or condition under this LEASE and the matter is turned over to LANDLORD’S attorney(s), TENANT shall
pay LANDLORD’S reasonable attorney’s fees plus costs, in connection with all matters of enforcement, collection or judicial construction of the rights of the parties to this LEASE, including fees incurred before, during and at trial, on
appeal or in federal bankruptcy, reorganization or similar proceedings, provided that LANDLORD’S action is successful. Should TENANT succeed in defending such action, LANDLORD shall pay all of TENANTS reasonable legal fees and expenses relating
to such defense. 
  
 27.3 The parties hereto
shall, and they hereby do, irrevocably waive trial by jury in any and every action or proceeding brought by either of the parties hereto against the other 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 DEMISED PREMISES, and any claim for injury or damage. In the event LANDLORD commences any proceedings, whether or not for nonpayment of rent, MINIMUN ANNUAL RENT, PERCENTAGE
RENT, any additional rent, or otherwise, TENANT, shall not interpose, and hereby irrevocably waives the right to, any counterclaim of whatever nature or description in any such proceeding(s). The provision in the immediately foregoing sentence shall
not, however, be construed as a waiver of the TENAT’S right to assert claims, if any, in any separate action or actions brought by the TENANT. 
  
 27.4 Notwithstanding any provisions of this Lease to the contrary, if LANDLORD shall notify TENANT of the name and address of the holder
of a mortgage or mortgages on the Shopping Center from time to time, LANDLORD shall not be deemed to be in default of any obligation it may have under this lease unless and until LANDLORD and the holder of said mortgage or mortgages shall have been
given written notice of the claimed default and ten (10) days opportunity to cure, except in the event of an emergency, in which event, verbal notice, followed by written verification, will suffice. 
  
 27.5 LANDLORD shall use reasonable business efforts in
mitigating its damages in accordance with the laws of the State of Florida. 
  
 XXVIII. CUSTOM AND USAGE. 
  
 The waiver by LANDLORD of any breach of any term, provision, covenant, agreement, undertaking, or condition contained in this LEASE shall absolutely not be deemed to be a continuing waiver of any such or of any
subsequent breach of the same or any other like or differing term, provision, covenant, agreement, undertaking, or condition contained in this LEASE. The subsequent acceptance of rent hereunder by LANDLORD shall not be deemed to be a waiver of any
preceding breach by TENANT of any term, provision, covenant, agreement, undertaking, or condition of this LEASE other than the failure of TENANT to pay the particular rent so accepted, regardless absolutely of LANDLORD’S knowledge of such
preceding breach at the time of acceptance of such rent. No term, provision, covenant, agreement, undertaking or condition of the LEASE shall be deemed to 

  

 XII 

 
have been waived by LANDLORD, unless such waiver be specifically set forth in writing and signed by LANDLORD. 
  

	 	XXIX.	SURRENDER AND HOLDING OVER. 

  
 29.1 TENANT, upon expiration or termination of this LEASE, whether by lapse of time or otherwise, agrees peaceably to surrender to
LANDLORD the DEMISED PREMISES in broomclean condition, and in good working order and repair as required by Paragraph 11 hereof. 
  
 29.2 If TENANT remains in possession of the DEMISED PREMISES with LANDLORD’S consent but without a new LEASE reduced to writing and
duly executed, TENANT shall be deemed to be occupying the DEMISED PREISES as a tenant at sufferance from month, subject otherwise to all terms, provisions, covenants, agreements, undertaking, and conditions of this LEASE. 
  

	 	XXX.	ADDITIONAL CONSTRUCTION. 

  
 LANDLORD hereby reserves the right at any time from time to time to make replacements, alterations or additions to, and to build
additional partial or complete stories in the building in which the DEMISED PREMISES is contained and to build adjoining the same. LANDLORD also hereby reserves the right to replace or construct other, or to add to other, buildings or improvements
in the SHOPPING CENTER, and to permit others to do so, at any time and from time to time. Nothing to the contrary in this Paragraph XXX withstanding, LANDLORD shall use reasonable effort to assure that none of the aforementioned replacements,
alterations or additions shall adversely affect the access to, or visibility of, the DEMIDED PREMISES, insofar as that is possible, and, in addition, that none of the aforementioned replacements, alterations or additions shall be done during the two
weeks before Father’s Day or from November 1 to December 31 in any year, unless deemed absolutely necessary by LANDLORD in its sole reasonable discretion. 
  

	 	XXXI.	EMINENT DOMAIN. 

  
 Eminent domain proceedings resulting in the condemnation of the whole of the DEMISED PREMISES shall terminate this Lease as of the date on
which the physical taking of the DEMISED PREMISES shall occur, unless agreed upon otherwise. Eminent domain proceedings resulting in the condemnation of a part of the DEMISED PREMISES shall not terminate this Lease, unless LANDLORD, at its sole
option, terminates it by giving written notice of termination to TENANT. The effect of such condemnation, should option not be exercised, shall be to terminate the lease after the portion of the premises condemned and leave it in effect as to the
remainder of the premises. TENANT’S rental for the remainder of the Lease Term shall in such case be reduced by the amount to which the usefulness of the premises to it for business purposes is reduced, provided that LANDLORD shall have the
right, at its sole option and expense, to partially or wholly restore or reconstruct the building or other improvements situated on the leased premises. All compensation awarded in the eminent domain proceeding as a result of such condemnation shall
be LANDLORD’S, except for damages specifically assigned to TENANT by statue. 
  

	 	XXXII.	LANDLORD’S LIABILITY. 

  
 Notwithstanding any provision contained in this LEASE or elsewhere now or hereafter to the contrary, TENANT agrees and acknowledges that
TENANT shall look solely and only to LANDLORD’S interest in the leasehold (or subleasehold, if applicable) estate in the event of any default or breach by LANDLORD to be performed or observed; and no other assets whatsoever of LANDLORD shall be
subject to liability, levy, execution, or other judicial process or award for the satisfaction of TENANT’S claim(s) of any kind whatsoever. 
  

 XIII 

	 	XXXIII.	NOTICES. 

  
 Wherever in this LEASE it shall be required or permitted that notice or demand be given or served by either by either party to this LEASE
to or the other, such notice or demand shall not be deemed to have been duly given or served unless on writing and either personally delivered, forwarded by Certified Mail, Return Receipt Requested, postage prepaid, forwarded by facsimile
transmission verified by written notice via Certified Mail, Return Receipt Requested, postage prepaid, or by Express Mail or Federal Express, addressed to LANDLORD or TENANT, as the case may be, at the ADDRESSES (as defined on the LEASE SUMMARY
SHEET). Such ADDRESSES may be changed from time to time by either party serving notices as above provided. 
  

	 	XXXIV.	SEVERABILITY. 

  
 If any term or provision of this LEASE or the application thereof to any person or circumstance shall, to any extent, be invalid or
unenforceable, the remainder of this LEASE and the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable shall not be affected thereby, and each term and provision of this
LEASE shall be valid and enforceable to the fullest extent permitted by law. 
  

	 	XXXV.	SUCCESSORS AND ASSIGNS. 

  
 All rights, obligations and liabilities herein given to, or imposed upon, the respective parties hereto shall extend to and bind the
several and respective heirs, executors, administrators, successors, permitted sublessee and permitted assigns of said parties, subject to the provisions of Paragraph 21; and if there shall be more than one TENANT, they shall all be bound jointly
and severally by the terms, covenants herein; and the word “TENANT” shall be deemed and taken to mean each and every person or party mentioned as a TENANT herein, be the same one or more; and if there shall be more than one TENANT, any
notice required or permitted by the terms of this LEASE may be given by or to any one thereof, and the same shall have the same force and effect as if given by or to all thereof. No rights, however, shall inure to the benefit of any assignee of
TENANT unless the assignment to such assignee has been specifically approved by LANDLORD in writing as set forth elsewhere herein. 
  

	 	XXXVI.	QUIET ENJOYMENT. 

  
 Upon payment by the TENANT of the rent herein provided, and upon the observance by TENANT of each and every of the terms, provisions,
covenants, agreements, undertaking, and conditions on TENANT’S part to be observed and performed, TENANT shall peaceably and quietly hold and enjoy the DEMISED PREMISES for the term of this LEASE without hindrance or interruption by LANDLORD or
any other person or persons lawfully or equitably claiming by, through or under the LANDLORD, subject, nevertheless, to each and every of the terms, provisions, covenants, agreements, undertakings and conditions of this LEASE. 
  

	 	XXXVII.	FORCE MAJEURE. 

  
 LANDLORD and TENANT, except for its obligation to pay rental or additional rental, shall be excused for the period of any delay in the
performance of any obligations hereunder when prevented from doing so by cause or causes beyond LANDLORD’S or TENANT’S absolute control which shall include, without limitation, all labor disputes, civil commotion, civil disorder, riot,
civil disturbance, war, warlike operations, invasion, rebellion, hostilities, military or usurped power, sabotage, governmental regulations, orders, moratoriums, or controls, fire or other casualty, inability to obtain any material, service or
financing or through Acts of God. 
  

	 	XXXVIII.	SCOPE AND INTERPRETATION OF THE AGREEMENT. 

  
 This Lease constitutes the entire agreement and understanding between the parties hereto, supersedes all prior and contemporaneous written
and oral agreements, and shall not be modified or amended except by a writing signed by LANDLORD and TENANT. There are no verbal understandings not contained herein. The laws of the State of Florida shall govern the validity, interpretation,
performance and enforcement of this LEASE. Neither this LEASE nor any memorandum or synopsis hereof may be recorded, and any recording in violation 

  

 XIV 

 
hereof shall be but a nullity and shall constitute TENANT in default hereunder. The parties intend that there be no third party beneficiaries to this LEASE,
except only for LANDLORD’S mortgagee(s) or other lender(s). 
  

	 	XXXIX.	MARKETING FUND. 

  
 TENANT agrees to pay to LANDLORD the initial monthly MARKETING FUND FEE (as defined on the LEASE and monthly thereafter on the same day
MINIMUM MONTHLY RENT is due and payable. The MARKETING FUND shall increase ten cents per square foot per lease year effective January 1 or each lease year. Provided that TENANT shows proof of $5,000.00 (five thousand dollars) in annual promotional
expenditures to benefit the DEMISED PREMISES, TENANT shall not be required to pay the Marketing Fund Charge. 
  

	 	XXXX.	BROKERAGE. 

  
 LANDLORD shall indemnify and hold harmless TENANT against and in respect of any and all claims, losses, liabilities and expenses which may
be asserted against TENANT by any broker or other person on the basis of any arrangements or agreements made or alleged to have been made by or on behalf of LANDLORD in respect of the transactions herein contemplated. TENANT shall indemnify and hold
harmless LANDLORD against and in respect of and all claims, losses, liabilities and expenses which may be asserted against LANDLORD by any real estate broker or other person on the basis of any arrangements or agreements made or alleged to have been
made by or on behalf of TENANT in respect of the transactions herein contemplated. 
  

	 	XXXXI.	LEASE OPTIONS. 

  
 Provided the LEASE is in good standing and TENANT is not in default hereunder, LANDLORD hereby gives and grants to TENANT the right to
exercise the LEASE TERM OPTION (as defined in the Lease Subsection 1.15 (Article I); the extended term shall commence from the date of the expiration of the prior term. In order to exercise the option herein granted, TENSNT must give LANDLORD
written notice of TENANT’S intention to exercise the option to extend not less than six (6) months prior to the expiration of the then expiring term. All of the terms, covenants and conditions of this LEASE shall apply during the initial and
the extended term(s), except that the fixed MINIMUM ANNUAL RENT shall be adjusted according to the RENTAL ADJUSTMENT DATES (as defined on the LEASE SUMMARY SHEET). 
  

	 	XXXXII.	CAPTIONS. 

  
 Any headings preceding the texts of the several paragraphs hereof are inserted solely for the convenience of reference and shall not
constitute a part of this LEASE nor shall any of the same affect its meaning, construction or effect. 
  

	 	XXXXIII.	BUILDING STANDARDS. 

  
 See EXHIBIT “B” DESCRIPTION OF LANDLORD’S WORK, and EXHIBIT “C”, DESCRIPTION OF TENANT’S WORK, attached
hereto and made a part hereof. 
  

 XV 

 IN WITNESS WHEREOF, WE HAVE HEREUNTO SET OUR HANDS AND SEALS THIS 3RD DAY OF JUNE,
2003. 
  

	 Witness as to LANDLORD:
	 	 	 	 LANDLORD:

			
	 /s/ David Harris

	 	 	 	 /s/ Wesley L. Burnham, Jr.

				
	 Illegible Signature

	 	 	 	 By:
	 	 Wesley L. Burnham, Jr.

	 	 	 	 	 	 	 Its:
	 	 President

  

	 Witness as to TENANT:
	 	 	 	 TENANT:

			
	 /s/ Chelly E. Picone

	 	 	 	 Vision Bank, FSB

				
	 /s/ Sharon Stanley

	 	 	 	 By:
	 	 /s/ J. W. Ginn

	 	 	 	 	 	 	 Its:
	 	 President

	 	 	 	 	 By:
	 	

	 	 	 	 	 	 	 Its:
	 	

  
 STATE OF FLORIDA 
  
 COUNTY OF BAY 
  
 The Forgoing instrument was acknowledged before me this 3rd day of June, 2003. 
 By: Joey W. Ginn, President of Vision Bank, FSB who is personally known to me. 
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  

	 /s/ Chelly Picone

	 Notary Public
 State of Florida

	
	 My Commission Expires:

	
	 November 7, 2004

  
 STATE OF FLORIDA 
  
 COUNTY OF BAY 
  
 The Forgoing instrument was acknowledged before before me this 3rd day of June, 2003. 
 By: Wesley L. Burnham, who is personally known to me. 
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  
                                       
                                        
                                        
                                        
                                        
                                        
                    
  

	 /s/ John E. Frey

	 Notary Public

	
	 State of Florida

	
	 My Commission Expires:

	
	 May 28, 2006

  

 41 

 Tenant is required to conform to local sign ordinances in addition to the following outdoor sign
specifications unless TENANT obtains written approval from LANDNORD to deviate from SIGN REQUIREMENTS as stated hereto. 
  

	 	1.	LOCATION OF SIGN: 

  

	 	

  

	 	

  

	 	2.	LENGTH OF SIGN: 

  

	 	

  

	 	

  

	 	3.	HEIGHT OF SIGN: 

  

	 	

  

	 	

  

	 	4.	MOUNTING OF SIGN: 

  

	 	

  

	 	

  

	 	5.	TYPE OF SIGN: 

  

	 	

  

	 	

  

	 	6.	UNDER CANOPY SIGN: 

  

	 	

  

	 	

  

	 Witness as to LANDLORD:
	 	 	 	 LANDLORD:

			
	  

	 	 	 	  

				
	  

	 	 	 	 By:
	 	  

	 	 	 	 	 	 	 Its:
	 	  

  

 42 

	 Witness as to TENANT:
	 	 	 	 TENANT:

			
	  

	 	 	 	  

				
	  

	 	 	 	 By:
	 	  

	 	 	 	 	 	 	 Its:
	 	  

  
 EXIBIT “F”

 EXHIBIT “C” 
  
 The following work is t be done by TANANT at TENENT’S sole expense: 
  

	 	1.	COMPLETION OF DEMISED
PREMISES                                       
              All work required to complete and place the DEMISED PREMISES in             finished condition for opening for
opening for business, except only for the work specifically described in Exhibit “B” as LANDLORD’S work, is to be done by TENANT at TENANT’S sole expense: included in such work, but without limitation, are all subdivision walls,
floor coverings, wall finishes, store fixture work, painting and decorating. 

  

	 	2.	TENANT’S CONSTRUCTION: 

  

	 	(a)	Comply with applicable codes and ordinances required for building permits. 

	 	(b)	Non-combustible materials must be used above ceiling. 

	 	(c)	Plastered or dry walls, or their equivalent finish, required throughout the sales area. Any exposed studs in storeroom are will be finished with dry wall or its equivalent.

	 	(d)	Paint and decorate interior. 

	 	(e)	Provide all interior partitions. 

	 	(f)	Provide all floor coverings. 

	 	(g)	Provide for any heating and air conditioning equipment required by TENANT, in addition to units supplied by LANDLORD. Space by TENANT provides proper fireproofing. If space above
ceiling is not used as a return air plenum, then heating ducts above ceiling shall be insulated. All such equipment to be in proper operations on day that TENANT opens the DEMISED PREMISES for business. 

	 	(h)	All cutting and patching of the roof area required for installation of air conditioning and ventilation systems, plumbing or utilities shall be paid by the TENANT. However, in all
cases said work shall be performed by LANDLORD’S contractor’s roofing subcontractor. 

	 	(i)	TENANT shall furnish information to LANDLORD’S architect for its requirements for lights and power, and its estimated load. 

	 	(j)	Provide fire extinguishes which may be required. 

  

	 	3.	FIXTURING: 

  
 TENANT shall furnish, install and connect trade fixtures as required by TANANT’S merchandising layout. 
  

	 	4.	SIGNS: 

  
 Sign drawing must be submitted for the approval of LANDLORD’S and/or LANDLORD’S architect. See EXHIBIT “D” for “Sign Requirements”. 
  

 43 

	 	5.	ACCESS TO DEMISED PREMISES: 

  
 LANDLORD, LANDLORD’S agent or designee, an independent contractor, or an authored utility company, as the case may be, shall have the right to run
utility lines, pipes, conduits or duct work where necessary or desirable, through attic space, column space, or other parts of the DEMISED PREMISES, and to repair, alter, replace or remove TENANT’S use of DEMISED PREMISES. 
  

	 	6.	INSURANCE: 

  
 TENANT shall require its contractors to furnish LANDLORD evidence of adequate insurance coverage prior to TENANT contractors performing any work in the DENISED PREMISES, and TENANT agrees to indemnify and hold
harmless LANDLORD and LANDLORD’S contractors from and against any claims, actions or damages resulting from acts of negligence of TENANT, its agents, employees or contractors in performance of TENANT’S work. Further, TENANT’S
liability insurance must be in full force and effect as provided in Paragraph 17.2 hereof. 
  

	 	7.	TENANT’S EMPLOYESS AND CONTRACTORS: 

  
 TENANT shall be limited to performing its work, including any offices or storage for construction purpose within the DEMISED PREMISES only from the
SHOPPING CENTER of all trash, rubbish, and surplus materials resulting from construction, fixturing and merchandising of the DEMISED PREMISES. 
  

	 	8.	TEMORARY UTILITIES: 

  
 TENANT shall be responsible for temporary utility connections for its work, including payment of utility charges. 
  

	 	9.	APPROVALS: 

  

	 	9.1	TENANT’S plans, drawings and specifications must be approved in writing by LANDLORD or LANDLORD’S architect prior to TENANT performing any of its work in the DEMISED
PREMISES. Each party will pay the cost and expense of their own plans, drawings and specifications. 

  

	 	9.2	TENANT’S plans, drawings and specifications, shall include, but shall not be limited to, floor plan, electrical, heating, air conditioning, fixturing and signs.

  

	 	9.3	TENANT”S plans, drawings and specifications shall be prepared in accordance with applicable governing codes and with applicable governing codes and ordinances. TENANT shall
submit plans and specifications and obtain approval therefore from governing ‘authorities having jurisdiction. TENANT shall also be required to obtain at TENANT’S expense all necessary permits for TENANT’S work.

  

	 	9.4	Any approval or consent by LANDLORD or LANDLORD’S architect shall in no way obligate LANDLORD in any manner whatsoever in respect to the finished product, design and/or
construction by TENANT. Any deficiency in design or construction, although the same had prior approval of LANDLORD, shall be solely the responsibility of TENANT. 

  

 44<PAGE>
                                                                    Exhibit 10.1

                          OPTICAL SENSORS INCORPORATED
                             2003 STOCK OPTION PLAN
                         (As Adopted September 11, 2003)

1.   Purpose of Plan.

     The purpose of the Optical Sensors Incorporated 2003 Stock Option Plan (the
"Plan") is to advance the interests of Optical Sensors Incorporated (the
"Company") and its stockholders by enabling the Company and its Subsidiaries to
attract and retain qualified individuals through opportunities for equity
participation in the Company, and to reward those individuals who contribute to
the Company's achievement of its economic objectives.

2.   Definitions.

     The following terms will have the meanings set forth below, unless the
context clearly otherwise requires:

     2.1   "Board" means the Company's Board of Directors.

     2.2   "Broker Exercise Notice" means a written notice pursuant to which a
Participant, upon exercise of an Option, irrevocably instructs a broker or
dealer to sell a sufficient number of shares or loan a sufficient amount of
money to pay all or a portion of the exercise price of the Option and/or any
related withholding tax obligations and remit such sums to the Company and
directs the Company to deliver stock certificates to be issued upon such
exercise directly to such broker or dealer or their nominee.

     2.3   "Cause" means (i) dishonesty, fraud, misrepresentation, embezzlement
or deliberate injury or attempted injury, in each case related to the Company or
any Subsidiary, (ii) any unlawful or criminal activity of a serious nature,
(iii) any intentional and deliberate breach of a duty or duties that,
individually or in the aggregate, are material in relation to the Participant's
overall duties, or (iv) any material breach of any confidentiality or noncompete
agreement entered into with the Company or any Subsidiary.

     2.4   "Change in Control" means an event described in Section 9.1 of the
Plan.

     2.5   "Code" means the Internal Revenue Code of 1986, as amended.

     2.6   "Committee" means the group of individuals administering the Plan, as
provided in Section 3 of the Plan.

     2.7   "Common Stock" means the common stock of the Company, par value $0.01
per share, or the number and kind of shares of stock or other securities into
which such Common Stock may be changed in accordance with Section 4.3 of the
Plan.

     2.8   "Disability" means the disability of the Participant such as would
entitle the Participant to receive disability income benefits pursuant to the
long-term disability plan of the

<PAGE>

Company or Subsidiary then covering the Participant or, if no such plan exists
or is applicable to the Participant, the permanent and total disability of the
Participant within the meaning of Section 22(e)(3) of the Code.

     2.9   "Effective Date" means September 11, 2003.

     2.10  "Eligible Recipients" means all employees (including, without
limitation, officers and directors who are also employees) of the Company or any
Subsidiary and all non-employee directors, consultants and independent
contractors.

     2.11  "Exchange Act" means the Securities Exchange Act of 1934, as amended.

     2.12  "Fair Market Value" means, with respect to the Common Stock, as of
any date: (i) the closing sale price of the Common Stock at the end of the
regular trading session, if the Common Stock is listed, admitted to unlisted
trading privileges, or reported on any national securities exchange or on the
Nasdaq National Market on such date (or, if no shares were traded on such day,
as of the next preceding day on which there was such a trade); or (ii) if the
Common Stock is not so listed, admitted to unlisted trading privileges, or
reported on any national exchange or on the Nasdaq National Market, the closing
bid price as of such date at the end of the regular trading session, as reported
by the Nasdaq SmallCap Market, OTC Bulletin Board, the Bulletin Board Exchange
(BBX) or the National Quotation Bureaus, Inc., or other comparable service; or
(iii) if the Common Stock is not so listed or reported, such price as the
Committee determines in good faith in the exercise of its reasonable discretion.

     2.13  "Incentive Stock Option" means a right to purchase Common Stock
granted to an Eligible Recipient pursuant to Section 6 of the Plan that
qualifies as an "incentive stock option" within the meaning of Section 422 of
the Code.

     2.14  "Non-Statutory Stock Option" means a right to purchase Common Stock
granted to an Eligible Recipient pursuant to Section 6 of the Plan that does not
qualify as an Incentive Stock Option.

     2.15  "Option" means an Incentive Stock Option or a Non-Statutory Stock
Option.

     2.16  "Participant" means an Eligible Recipient who receives one or more
Options under the Plan.

     2.17  "Person" means any individual, corporation, partnership, group,
association or other "person" (as such term is used in Section 14(d) of the
Exchange Act), other than the Company, a wholly owned subsidiary of the Company
or any employee benefit plan sponsored by the Company or a wholly owned
subsidiary of the Company.

     2.18  "Previously Acquired Shares" means shares of Common Stock that are
already owned by the Participant or, with respect to any Option, that are to be
issued upon the exercise of such Option.

                                       2

<PAGE>

     2.19  "Retirement" means normal or approved early termination of employment
or service pursuant to and in accordance with the regular retirement/pension
plan or practice of the Company or Subsidiary then covering the Participant,
provided that if the Participant is not covered by any such plan or practice,
the Participant will be deemed to be covered by the Company's plan or practice
for purposes of this determination.

     2.20  "Securities Act" means the Securities Act of 1933, as amended.

     2.21  "Subsidiary" means any entity that is directly or indirectly
controlled by the Company or any entity in which the Company has a significant
equity interest, as determined by the Committee.

3.   Plan Administration.

     3.1   The Committee. The Plan will be administered by the Board or by a
committee of the Board. So long as the Company has a class of its equity
securities registered under Section 12 of the Exchange Act, any committee
administering the Plan will consist solely of two or more members of the Board
who are "non-employee directors" within the meaning of Rule 16b-3 under the
Exchange Act. Such a committee, if established, will act by majority approval of
the members (unanimous approval with respect to action by written consent), and
a majority of the members of such a committee will constitute a quorum. As used
in the Plan, "Committee" will refer to the Board or to such a committee, if
established. To the extent consistent with applicable corporate law of the
Company's jurisdiction of incorporation, the Committee may delegate to any
officers of the Company the duties, power and authority of the Committee under
the Plan pursuant to such conditions or limitations as the Committee may
establish; provided, however, that only the Committee may exercise such duties,
power and authority with respect to Eligible Recipients who are subject to
Section 16 of the Exchange Act. The Committee may exercise its duties, power and
authority under the Plan in its sole and absolute discretion without the consent
of any Participant or other party, unless the Plan specifically provides
otherwise. Each determination, interpretation or other action made or taken by
the Committee pursuant to the provisions of the Plan will be conclusive and
binding for all purposes and on all persons, and no member of the Committee will
be liable for any action or determination made in good faith with respect to the
Plan or any Option granted under the Plan.

     3.2   Authority of the Committee.

           (a)  In accordance with and subject to the provisions of the Plan,
     the Committee will have the authority to determine all provisions of
     Options as the Committee may deem necessary or desirable and as consistent
     with the terms of the Plan, including, without limitation, the following:
     (i) the Eligible Recipients to be selected as Participants; (ii) the nature
     and extent of the Option to be made to each Participant (including the
     number of shares of Common Stock to be subject to each Option, any exercise
     price, the manner in which Options will vest or become exercisable) and the
     form of written agreement, if any, evidencing such Option; (iii) the time
     or times when Options will be granted; (iv) the duration of each Option;
     and (v) the restrictions and other conditions to which the payment or

                                       3

<PAGE>

     vesting of Options may be subject. In addition, the Committee will have the
     authority under the Plan in its sole discretion to pay the economic value
     of any Option in the form of cash, Common Stock or any combination of both.

           (b)  Subject to Section 3.2(d), below, the Committee will have the
     authority under the Plan to amend or modify the terms of any outstanding
     Option in any manner, including, without limitation, the authority to
     modify the number of shares or other terms and conditions of an Option,
     extend the term of an Option, accelerate the exercisability or vesting or
     otherwise terminate any restrictions relating to an Option, accept the
     surrender of any outstanding Option or, to the extent not previously
     exercised or vested, authorize the grant of new Options in substitution for
     surrendered Options; provided, however that the amended or modified terms
     are permitted by the Plan as then in effect and that any Participant
     adversely affected by such amended or modified terms has consented to such
     amendment or modification.

           (c)  In the event of (i) any reorganization, merger, consolidation,
     recapitalization, liquidation, reclassification, stock dividend, stock
     split, combination of shares, rights offering, extraordinary dividend or
     divestiture (including a spin-off) or any other change in corporate
     structure or shares; (ii) any purchase, acquisition, sale, disposition or
     write-down of a significant amount of assets or a significant business;
     (iii) any change in accounting principles or practices, tax laws or other
     such laws or provisions affecting reported results; or (iv) any other
     similar change, in each case with respect to the Company or any other
     entity whose performance is relevant to the grant or vesting of an Option,
     the Committee (or, if the Company is not the surviving corporation in any
     such transaction, the board of directors of the surviving corporation) may,
     without the consent of any affected Participant, amend or modify the
     vesting criteria of any outstanding Option that is based in whole or in
     part on the financial performance of the Company (or any Subsidiary or
     division or other subunit thereof) or such other entity so as equitably to
     reflect such event, with the desired result that the criteria for
     evaluating such financial performance of the Company or such other entity
     will be substantially the same (in the sole discretion of the Committee or
     the board of directors of the surviving corporation) following such event
     as prior to such event; provided, however, that the amended or modified
     terms are permitted by the Plan as then in effect.

4.   Shares Available for Issuance.

     4.1   Maximum Number of Shares Available; Certain Restrictions on Awards.
Subject to adjustment as provided in Section 4.3 of the Plan, the maximum number
of shares of Common Stock that will be available for issuance under the Plan
will be 1,050,000 shares of Common Stock, less (x) the number of shares subject
to awards outstanding, as of the effective date of the Plan, under the Company's
1989 Omnibus Stock Option Plan, as amended, and the Company's Amended and
Restated 1993 Stock Option Plan, as amended, plus (y) the number of shares in
the foregoing clause (x) which are not thereafter issued or are forfeited and
which would otherwise have become available for issuance under the terms of such
plans, or such greater number as may be approved by the Board pursuant to this
Section 4.1. Notwithstanding any other provision of the Plan to the contrary, no
Participant in the Plan may be granted, during any calendar year, Options
relating to more than an

                                       4

<PAGE>

aggregate of 100,000 shares of Common Stock, in each case subject to adjustment
as provided in Section 4.3 of the Plan. To the extent permitted by applicable
corporate law, the shares available for issuance under the Plan may, at the
election of the Committee, be either treasury shares or shares authorized but
unissued, and, if treasury shares are used, all references in the Plan to the
issuance of shares will, for corporate law purposes, be deemed to mean the
transfer of shares from treasury.

     4.2   Accounting for Options. Shares of Common Stock that are issued under
the Plan or that are subject to outstanding Options will be applied to reduce
the maximum number of shares of Common Stock remaining available for issuance
under the Plan; provided, however, that shares subject to an Option that lapses,
expires, is forfeited or for any reason is terminated unexercised or unvested or
is settled or paid in cash or any form other than shares of Common Stock will
automatically again become available for issuance under the Plan. To the extent
that the exercise price of any Option and/or associated tax withholding
obligations are paid by tender or attestation as to ownership of Previously
Acquired Shares, or to the extent that such tax withholding obligations are
satisfied by withholding of shares otherwise issuable upon exercise of the
Option, only the number of shares of Common Stock issued net of the number of
shares tendered, attested to or withheld will be applied to reduce the maximum
number of shares of Common Stock remaining available for issuance under the
Plan.

     4.3   Adjustments to Shares and Options. In the event of any
reorganization, merger, consolidation, recapitalization, liquidation,
reclassification, stock dividend, stock split, combination of shares, rights
offering, divestiture or extraordinary dividend (including a spin-off) or any
other change in the corporate structure or shares of the Company, the Committee
(or, if the Company is not the surviving corporation in any such transaction,
the board of directors of the surviving corporation) will make appropriate
adjustment (which determination will be conclusive) as to the number and kind of
securities or other property (including cash) available for issuance or payment
under the Plan and, in order to prevent dilution or enlargement of the rights of
Participants, the number and kind of securities or other property (including
cash) subject to outstanding Options and the exercise price of outstanding
Options.

5.   Participation.

     Participants in the Plan will be those Eligible Recipients who, in the
judgment of the Committee, have contributed, are contributing or are expected to
contribute to the achievement of economic objectives of the Company or its
Subsidiaries. Eligible Recipients may be granted from time to time one or more
Options, singly or in combination or in tandem with other Options, as may be
determined by the Committee in its sole discretion. Options will be deemed to be
granted as of the date specified in the grant resolution of the Committee, which
date will be the date of any related agreement with the Participant.

6.   Options.

     6.1   Grant. An Eligible Recipient may be granted one or more Options under
the Plan, and such Options will be subject to such terms and conditions,
consistent with the other provisions of the Plan, as may be determined by the
Committee in its sole discretion. The Committee may

                                       5

<PAGE>

designate whether an Option is to be considered an Incentive Stock Option or a
Non-Statutory Stock Option. To the extent that any Incentive Stock Option
granted under the Plan ceases for any reason to qualify as an "incentive stock
option" for purposes of Section 422 of the Code, such Incentive Stock Option
will continue to be outstanding for purposes of the Plan but will thereafter be
deemed to be a Non-Statutory Stock Option.

     6.2   Exercise Price. The per share price to be paid by a Participant upon
exercise of an Option will be determined by the Committee in its discretion at
the time of the Option grant; provided, however, that such price will not be
less than 100% of the Fair Market Value of one share of Common Stock on the date
of grant with respect to any Option (110% of the Fair Market Value with respect
to an Incentive Stock Option if, at the time such Incentive Stock Option is
granted, the Participant owns, directly or indirectly, more than 10% of the
total combined voting power of all classes of stock of the Company or any parent
or subsidiary corporation of the Company).

     6.3   Exercisability and Duration. An Option will become exercisable at
such times and in such installments and upon such terms and conditions as may be
determined by the Committee in its sole discretion at the time of grant
(including without limitation that the Participant remain in the continuous
employ or service of the Company or a Subsidiary for a certain period);
provided, however, that no Option may be exercisable prior to six months from
its date of grant (other than as provided in Section 7.1 of the Plan) or after
10 years from its date of grant (five years from its date of grant in the case
of an Incentive Stock Option if, at the time the Incentive Stock Option is
granted, the Participant owns, directly or indirectly, more than 10% of the
total combined voting power of all classes of stock of the Company or any parent
or subsidiary corporation of the Company).

     6.4   Payment of Exercise Price. The total purchase price of the shares to
be purchased upon exercise of an Option will be paid entirely in cash (including
check, bank draft or money order); provided, however, that the Committee, in its
sole discretion and upon terms and conditions established by the Committee, may
allow such payments to be made, in whole or in part, by tender of a Broker
Exercise Notice, by tender, or attestation as to ownership, of Previously
Acquired Shares that have been held for the period of time necessary to avoid a
charge to the Company's earnings for financial reporting purposes and that are
otherwise acceptable to the Committee, or by a combination of such methods. For
purposes of such payment, Previously Acquired Shares tendered or covered by an
attestation will be valued at their Fair Market Value on the exercise date.

     6.5   Manner of Exercise. An Option may be exercised by a Participant in
whole or in part from time to time, subject to the conditions contained in the
Plan and in the agreement evidencing such Option, by delivery in person, by
facsimile or electronic transmission or through the mail of written notice of
exercise to the Company at its principal executive office in Minneapolis,
Minnesota and by paying in full the total exercise price for the shares of
Common Stock to be purchased in accordance with Section 6.4 of the Plan.

7.   Effect of Termination of Employment or Other Service.

     7.1   Termination Due to Death or Disability. Subject to Section 7.5 of the
Plan, in the event a Participant's employment or other service with the Company
and all Subsidiaries is

                                       6

<PAGE>

terminated by reason of death or Disability all outstanding Options then held by
the Participant will, to the extent exercisable as of such termination, remain
exercisable for a period of one (1) year after such termination (but in no event
after the expiration date of any such Option). Options not exercisable as of
Death or Disability will be forfeited and terminate.

     7.2   Termination Due to Retirement. Subject to Section 7.5 of the Plan, in
the event a Participant's employment or other service with the Company and all
Subsidiaries is terminated by reason of Retirement all outstanding Options then
held by the Participant will, to the extent exercisable as of such termination,
remain exercisable for a period of three (3) months after such termination (but
in no event after the expiration date of any such Option). Options not
exercisable as of such Retirement will be forfeited and terminate.

     7.3   Termination for Reasons Other than Death, Disability or Retirement.
Subject to Section 7.5 of the Plan, in the event a Participant's employment or
other service is terminated with the Company and all Subsidiaries for any reason
other than death, Disability or Retirement, or a Participant is in the employ of
a Subsidiary and the Subsidiary ceases to be a Subsidiary of the Company (unless
the Participant continues in the employ of the Company or another Subsidiary)
all outstanding Options then held by the Participant will, to the extent
exercisable as of such termination, remain exercisable in full for a period of
three (3) months after such termination (but in no event after the expiration
date of any such Option). Options not exercisable as of such termination will be
forfeited and terminate.

     7.4   Modification of Rights Upon Termination. Notwithstanding the other
provisions of this Section 7, upon a Participant's termination of employment or
other service with the Company and all Subsidiaries, the Committee may, in its
sole discretion (which may be exercised at any time on or after the date of
grant, including following such termination), cause Options (or any part
thereof) then held by such Participant to become or continue to become
exercisable and/or remain exercisable following such termination of employment
or service, in each case in the manner determined by the Committee; provided,
however, that no Option will become exercisable or vest prior to six months from
its date of grant (unless such exercisability or vesting is by reason of death
or Disability), and no Option may remain exercisable or continue to vest for
more than two years beyond the date such Option would have terminated if not for
the provisions of this Section 7.4 but in no event beyond its expiration date.

     7.5   Effects of Actions Constituting Cause. Notwithstanding anything in
the Plan to the contrary, in the event that a Participant is determined by the
Committee, acting in its sole discretion, to have committed any action which
would constitute Cause as defined in Section 2.3, irrespective of whether such
action or the Committee's determination occurs before or after termination of
such Participant's employment or service with the Company or any Subsidiary, all
rights of the Participant under the Plan and any agreements evidencing an Option
then held by the Participant shall terminate and be forfeited without notice of
any kind. The Company may defer the exercise of any Option for a period of up to
forty-five (45) days in order for the Committee to make any determination as to
the existence of Cause.

                                       7

<PAGE>

     7.6   Determination of Termination of Employment or Other Service. Unless
the Committee otherwise determines in its sole discretion, a Participant's
employment or other service will, for purposes of the Plan, be deemed to have
terminated on the date recorded on the personnel or other records of the Company
or the Subsidiary for which the Participant provides employment or service, as
determined by the Committee in its sole discretion based upon such records.

8.   Payment of Withholding Taxes.

     8.1   General Rules. The Company is entitled to (a) withhold and deduct
from future wages of the Participant (or from other amounts that may be due and
owing to the Participant from the Company or a Subsidiary), or make other
arrangements for the collection of, all legally required amounts necessary to
satisfy any and all federal, foreign, state and local withholding and
employment-related tax requirements attributable to an Option, including,
without limitation, the grant, or exercise or vesting of, an Option or a
disqualifying disposition of stock received upon exercise of an Incentive Stock
Option, or (b) require the Participant promptly to remit the amount of such
withholding to the Company before taking any action, including issuing any
shares of Common Stock, with respect to an Option.

     8.2   Special Rules. The Committee may, in its sole discretion and upon
terms and conditions established by the Committee, permit or require a
Participant to satisfy, in whole or in part, any withholding or
employment-related tax obligation described in Section 8.1 of the Plan by
electing to tender, or by attestation as to ownership of, Previously Acquired
Shares that have been held for the period of time necessary to avoid a charge to
the Company's earnings for financial reporting purposes and that are otherwise
acceptable to the Committee, by delivery of a Broker Exercise Notice or a
combination of such methods. For purposes of satisfying a Participant's
withholding or employment-related tax obligation, Previously Acquired Shares
tendered or covered by an attestation will be valued at their Fair Market Value.

9.   Change in Control.

     9.1   Change in Control. For purposes of this Article 9, a "Change in
Control" is the occurrence of any of the following on or after the Effective
Date:

           (a)  the sale, lease, exchange or other transfer, directly or
     indirectly, of all or substantially all of the assets of the Company, in
     one transaction or in a series of related transactions, to any Person;

           (b)  the sale, lease, exchange or other transfer, directly or
     indirectly, of the assets comprising the Company's CapnoProbe Product Line,
     in one transaction or in a series of related transactions, to any Person;

           (c)  the approval by the shareholders of the Company of any plan or
     proposal for the liquidation or dissolution of the Company;

           (d)  any Person, other than Hayden R. Fleming, Circle F Ventures,
     LLC, a Georgia limited liability company, Circle F Ventures II, LLC, a
     Georgia limited liability company, or

                                       8

<PAGE>

     any of their Affiliates, is or becomes the "beneficial owner" (as defined
     in Rule 13d-3 under the Exchange Act), directly or indirectly, of (a) 20
     percent or more, but not more than 50 percent, of the combined voting power
     of the Company's outstanding securities ordinarily having the right to vote
     at elections of directors, unless the transaction resulting in such
     ownership has been approved in advance by the "continuity directors," as
     defined at Subsection (b), or (b) more than 50 percent of the combined
     voting power of the Company's outstanding securities ordinarily having the
     right to vote at elections of directors (regardless of any approval by the
     continuity directors);

           (e)  a merger or consolidation to which the Company is a party if the
     shareholders of the Company immediately prior to the effective date of such
     merger or consolidation have, solely on account of ownership of securities
     of the Company at such time, "beneficial ownership" (as defined in Rule
     13d-3 under the Exchange Act) immediately following the effective date of
     such merger or consolidation of securities of the surviving company
     representing (a) 50 percent or more, but not more than 80 percent, of the
     combined voting power of the surviving corporation's then outstanding
     securities ordinarily having the right to vote at elections of directors,
     unless such merger or consolidation has been approved in advance by the
     continuity directors, or (b) less than 50 percent of the combined voting
     power of the surviving corporation's then outstanding securities ordinarily
     having the right to vote at elections of directors (regardless of any
     approval by the continuity directors);

           (f)  the continuity directors cease for any reason to constitute at
     least a majority the Board; or

           (g)  a change in control of a nature that is determined by outside
     legal counsel to the Company, in a written opinion specifically referencing
     this provision of the Plan, to be required to be reported (assuming such
     event has not been "previously reported") pursuant to section 13 or 15(d)
     of the Exchange Act, whether or not the Company is then subject to such
     reporting requirement, as of the effective date of such change in control.

     9.2   Continuity Directors For purposes of this Section 9.1, "continuity
director" means any individual who is a member of the Board on the Effective
Date, while he or she is a member of the Board, and any individual who
subsequently becomes a member of the Board whose election or nomination for
election by the Company's shareholders was approved by a vote of at least a
majority of the directors who are continuity directors (either by a specific
vote or by approval of the proxy statement of the Company in which such
individual is named as a nominee for director without objection to such
nomination). For example, if a majority of the three individuals constituting
the Board on the Effective Date, approved a proxy statement in which two
different individuals were nominated to replace two of the individuals who were
members of the Board on the Effective Date, upon their election by the Company's
shareholders, the two newly elected directors would join the one remaining
director who was a member of the Board on the Effective Date as continuity
directors. Individuals subsequently joining the Board could become continuity
directors under the principles reflected in this example.

                                       9

<PAGE>

     9.3   Acceleration of Vesting. If a Change of Control of the Company shall
occur, then, without any action by the Committee or the Board, all outstanding
Options shall become immediately exercisable in full and shall remain
exercisable during the remaining term thereof, regardless of whether the
employment or other status of the Participants with respect to which Options
have been granted shall continue with the Company or any subsidiary.

     9.4   Cash Payment. If a Change in Control of the Company occurs, then the
Committee, if approved by the Committee in its sole discretion either in an
agreement evidencing an Option at the time of grant or at any time after the
grant of an Option, and without the consent of any Participant affected thereby,
may determine that:

           (a)  some or all Participants holding outstanding Options will
     receive, with respect to some or all of the shares of Common Stock subject
     to such Options, as of the effective date of any such Change in Control of
     the Company, cash in an amount equal to the excess of the Fair Market Value
     of such shares immediately prior to the effective date of such Change in
     Control of the Company over the exercise price per share of such Options;
     and

           (b)  any Options which, as of the effective date of any such Change
     in Control, are "underwater" (as defined in Section 3.2(d)) shall terminate
     as of the effective date of any such Change in Control.

     9.5   Limitation on Change in Control Payments. Notwithstanding anything in
Section 9.3 or 9.4 of the Plan to the contrary, if, with respect to a
Participant, the acceleration of the exercisability of an Option as provided in
Section 9.3 or the payment of cash in exchange for all or part of an Option as
provided in Section 9.4 (which acceleration or payment could be deemed a
"payment" within the meaning of Section 280G(b)(2) of the Code), together with
any other "payments" that such Participant has the right to receive from the
Company or any corporation that is a member of an "affiliated group" (as defined
in Section 1504(a) of the Code without regard to Section 1504(b) of the Code) of
which the Company is a member, would constitute a "parachute payment" (as
defined in Section 280G(b)(2) of the Code), then the "payments" to such
Participant pursuant to Section 9.3 or 9.4 of the Plan will be reduced to the
largest amount as will result in no portion of such "payments" being subject to
the excise tax imposed by Section 4999 of the Code; provided, that such
reduction shall be made only if the aggregate amount of the payments after such
reduction exceeds the difference between (A) the amount of such payments absent
such reduction minus (B) the aggregate amount of the excise tax imposed under
Section 4999 of the Code attributable to any such excess parachute payments.
Notwithstanding the foregoing sentence, if a Participant is subject to a
separate agreement with the Company or a Subsidiary which specifically provides
that payments attributable to one or more forms of employee stock incentives or
to payments made in lieu of employee stock incentives will not reduce any other
payments under such agreement, even if it would constitute an excess parachute
payment, or provides that the Participant will have the discretion to determine
which payments will be reduced in order to avoid an excess parachute payment,
then the limitations of this Section 9.5 will, to that extent, not apply.

                                       10

<PAGE>

10.  Rights of Eligible Recipients and Participants; Transferability.

     10.1  Employment or Service. Nothing in the Plan will interfere with or
limit in any way the right of the Company or any Subsidiary to terminate the
employment or service of any Eligible Recipient or Participant at any time, nor
confer upon any Eligible Recipient or Participant any right to continue in the
employ or service of the Company or any Subsidiary.

     10.2  Rights as a Stockholder. As a holder of Options, a Participant will
have no rights as a stockholder unless and until such Options are exercised for,
or paid in the form of, shares of Common Stock and the Participant becomes the
holder of record of such shares. Except as otherwise provided in the Plan, no
adjustment will be made for dividends or distributions with respect to such
Options as to which there is a record date preceding the date the Participant
becomes the holder of record of such shares, except as the Committee may
determine in its discretion.

     10.3  Restrictions on Transfer.

           (a)  Except pursuant to testamentary will or the laws of descent and
     distribution or as otherwise expressly permitted by subsections (b) and (c)
     below, no right or interest of any Participant in an Option prior to the
     exercise of such Option will be assignable or transferable, or subjected to
     any lien, during the lifetime of the Participant, either voluntarily or
     involuntarily, directly or indirectly, by operation of law or otherwise.

           (b)  A Participant will be entitled to designate a beneficiary to
     receive an Option upon such Participant's death, and in the event of such
     Participant's death, payment of any amounts due under the Plan will be made
     to, and exercise of any Options (to the extent permitted pursuant to
     Section 7 of the Plan) may be made by, such beneficiary. If a deceased
     Participant has failed to designate a beneficiary, or if a beneficiary
     designated by the Participant fails to survive the Participant, payment of
     any amounts due under the Plan will be made to, and exercise of any Options
     (to the extent permitted pursuant to Section 8 of the Plan) may be made by,
     the Participant's legal representatives, heirs and legatees. If a deceased
     Participant has designated a beneficiary and such beneficiary survives the
     Participant but dies before complete payment of all amounts due under the
     Plan or exercise of all exercisable Options, then such payments will be
     made to, and the exercise of such Options may be made by, the legal
     representatives, heirs and legatees of the beneficiary.

           (c)  Upon a Participant's request, the Committee may, in its sole
     discretion, permit a transfer of all or a portion of a Non-Statutory Stock
     Option, other than for value, to such Participant's child, stepchild,
     grandchild, parent, stepparent, grandparent, spouse, former spouse,
     sibling, niece, nephew, mother-in-law, father-in-law, son-in-law,
     daughter-in-law, brother-in-law, or sister-in-law, any person sharing such
     Participant's household (other than a tenant or employee), a trust in which
     any of the foregoing have more than fifty percent of the beneficial
     interests, a foundation in which any of the foregoing (or the Participant)
     control the management of assets, and any other entity in which these
     persons (or the Participant) own more than fifty percent of the voting
     interests. Any permitted transferee will remain subject to all the terms
     and conditions applicable to the Participant prior to the transfer. A

                                       11

<PAGE>

     permitted transfer may be conditioned upon such requirements as the
     Committee may, in its sole discretion, determine, including, but not
     limited to execution and/or delivery of appropriate acknowledgements,
     opinion of counsel, or other documents by the transferee.

     10.4  Non-Exclusivity of the Plan. Nothing contained in the Plan is
intended to modify or rescind any previously approved compensation plans or
programs of the Company or create any limitations on the power or authority of
the Board to adopt such additional or other compensation arrangements as the
Board may deem necessary or desirable.

11.  Securities Law and Other Restrictions.

     Notwithstanding any other provision of the Plan or any agreements entered
into pursuant to the Plan, the Company will not be required to issue any shares
of Common Stock under this Plan, and a Participant may not sell, assign,
transfer or otherwise dispose of shares of Common Stock issued pursuant to
Options granted under the Plan, unless (a) there is in effect with respect to
such shares a registration statement under the Securities Act and any applicable
securities laws of a state or foreign jurisdiction or an exemption from such
registration under the Securities Act and applicable state or foreign securities
laws, and (b) there has been obtained any other consent, approval or permit from
any other U.S. or foreign regulatory body which the Committee, in its sole
discretion, deems necessary or advisable. The Company may condition such
issuance, sale or transfer upon the receipt of any representations or agreements
from the parties involved, and the placement of any legends on certificates
representing shares of Common Stock, as may be deemed necessary or advisable by
the Company in order to comply with such securities law or other restrictions.

12.  Plan Amendment, Modification and Termination.

     The Board may suspend or terminate the Plan or any portion thereof at any
time, and may amend the Plan from time to time in such respects as the Board may
deem advisable in order that Options under the Plan will conform to any change
in applicable laws or regulations or in any other respect the Board may deem to
be in the best interests of the Company; provided, however, that no such
amendments to the Plan will be effective without approval of the Company's
stockholders if stockholder approval of the amendment is then required pursuant
to Section 422 of the Code or the rules of any stock exchange or Nasdaq or
similar regulatory body that are applicable to the Company. No termination,
suspension or amendment of the Plan may adversely affect any outstanding Option
without the consent of the affected Participant; provided, however, that this
sentence will not impair the right of the Committee to take whatever action it
deems appropriate under Sections 3.2(c), 4.3 and 9 of the Plan.

13.  Effective Date and Duration of the Plan.

     The Plan is effective as of the Effective Date. The Plan will terminate at
midnight on September 10, 2013, and may be terminated prior to such time by
Board action. No Option will be granted after termination of the Plan. Options
outstanding upon termination of the Plan may continue to be exercised, or become
free of restrictions, according to their terms.

                                       12

<PAGE>

14.  Miscellaneous.

     14.1  Governing Law. Except to the extent expressly provided herein or in
connection with other matters of corporate governance and authority (all of
which shall be governed by the laws of the Company's jurisdiction of
incorporation), the validity, construction, interpretation, administration and
effect of the Plan and any rules, regulations and actions relating to the Plan
will be governed by and construed exclusively in accordance with the laws of the
State of Minnesota, notwithstanding the conflicts of laws principles of any
jurisdictions.

     14.2  Successors and Assigns. The Plan will be binding upon and inure to
the benefit of the successors and permitted assigns of the Company and the
Participants.

                                       13

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