Document:

Exhibit
10.1

AIR
COMMERCIAL REAL ESTATE ASSOCIATION

STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE – NET

(DO
NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)

1.         Basic Provisions (“Basic Provisions”).

1.1       Parties: This Lease (“Lease”), dated
for reference purposes only May 18, 2007, is made by and between First
Industrial, L.P., a Delaware limited partnership (“Lessor”)
and National RV, Inc., a California corporation (“Lessee”),
(collectively the “Parties,” or
individually a “Party”).

1.2       Premises: That certain
real property, including all improvements therein or to be provided by Lessor
under the terms of this Lease, and commonly known as 100 West Sinclair Street,
located in the County of Riverside, State of California, and generally
described as (describe briefly the nature of the property and, if applicable,
the “Project”, if the property is located
within a Project) Two (2) buildings containing approximately 212,545 square
feet (Building Four - approximately 47,705 square feet; Building Five - approximately
164,840 square (feet) (“Premises”).
(See also Paragraph 2)

1.3       Term: The term (“Original Term”)
shall commence on May 18, 2007 (“Commencement Date”) and
end on May 31, 2017 (“Expiration Date”).
(See also Paragraph 3)

1.5       Base Rent:
$80,767.10 per month (“Base Rent”),
payable on the first day of each month commencing on the Commencement Date.
(See also Paragraph 4)

x
If this box is checked, there are provisions in this Lease for the Base Rent to
be adjusted.

1.6       Base Rent and Other Monies Paid Upon Execution:

(a)       Base
Rent: $117,242.56 for the period May 18, 2007 through June 30, 2007.

(b)      Security Deposit: $1,750,000.00 (“Security Deposit”). (see Rider)

(c)       Association Fees: $ N/A for the period

(d)      Other: $17,452.68 for Additional Rent (NNN charges) for May 18, 2007-June 30, 2007.

(e)       Total Due Upon
Execution of this Lease: $134,695.24 (plus the $1,750,000.00 Security Deposit).

1.7       Agreed Use: Manufacturing, warehousing, assembly, ancillary
office, servicing of vehicles and any other lawful use incidental thereto. (See
also Paragraph 6)

1.8       Insuring Party: Lessor is the “Insuring
Party” unless otherwise stated herein. (See also Paragraph 8)

1.10     Guarantor. The obligations of the Lessee under this Lease
are to be guaranteed by National RV Holdings, Inc., a Delaware corporation (“Guarantor”).
(See also Paragraph 37)

1.11     Attachments. Attached
hereto are the following, all of which constitute a part of this Lease:

o        an Addendum consisting of
Paragraphs                 through                ;

x       a plot plan depicting the
Premises;

x       a current set of the Rules
and Regulations;

o        a Work Letter;

x       other (specify): A Rider

	
  

  	
   

  	
   

  	
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  ã2001
  - AIR COMMERCIAL REAL ESTATE ASSOCIATION

  	
   

  	
  FORM
  STN-9-3/06E

  
						

 

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2.         Premises.

2.1       Letting.
Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the
Premises, for the term, at the rental, and upon all of the terms, covenants and
conditions set forth in this Lease. Unless otherwise provided herein, any
statement of size set forth in this Lease, or that may have been used in
calculating Rent, is an approximation which the Parties agree is reasonable and
any payments based thereon are not subject to revision whether or not the
actual size is more or less. Note: Lessee is advised to
verify the actual size prior to executing this Lease.

If the building codes,
applicable laws, covenants or restrictions of record, regulations and
ordinances (“Applicable Requirements”) are hereafter changed so as to require
during the term of this Lease the construction of an addition to or an
alteration of the Premises and/or Building, the remediation of any Hazardous
Substance, or the reinforcement or other physical modification of the Unit,
Premises and/or Building (“Capital Expenditure”), Lessor and Lessee shall allocate the cost of such work as
follows:

(a)       Subject to Paragraph 2.3(c)
below, if such Capital Expenditures are required as a result of the specific
and unique use of the Premises by Lessee as compared with general manufacturing
uses, Lessee shall be fully responsible for the cost thereof, provided, however
that if such Capital Expenditure is required during the last 2 years of this
Lease and the cost thereof exceeds 6 months’ Base Rent, Lessee may instead terminate
this Lease unless Lessor notifies Lessee, in writing, within 10 days after
receipt of Lessee’s termination notice that Lessor has elected to pay the
difference between the actual cost thereof and an amount equal to 6 months’
Base Rent. If Lessee elects termination, Lessee shall immediately cease the use
of the Premises which requires such Capital Expenditure and deliver to Lessor
written notice specifying a termination date at least 90 days thereafter. Such
termination date shall, however, in no event be earlier nor later than the last
day that Lessee could legally utilize the Premises without commencing such
Capital Expenditure.

(b)      If such Capital Expenditure
is not the result of the specific and unique use of the Premises by Lessee
(such as, governmentally mandated seismic modifications), then the cost of the
Capital Expenditure shall be amortized by Lessor over the useful life of the
Capital Expenditure (as reasonably determined by the parties applying generally
accepted accounting principles, “GAAP”), together with interest at “prime” or “reference”
or “base” rate (on a per annum basis) of interest announced as such, from time
to time, by JP Morgan Chase Bank, NA, or its successor (“Prime”).
If, however, such Capital Expenditure is required during the last 2 years of
this Lease or if Lessor reasonably determines that it is not economically
feasible to pay its share thereof, 
Lessor shall have the option to terminate this Lease upon 90 days prior
written notice to Lessee unless Lessee notifies Lessor, in writing, within 10
days after receipt of Lessor’s termination notice that Lessee will pay for such
Capital Expenditure.

(c)       Notwithstanding the above,
the provisions concerning Capital Expenditures are intended to apply only to
non-voluntary, unexpected, and new Applicable Requirements. If the Capital
Expenditures are instead triggered by Lessee as a result of an actual or
proposed change in use, change in intensity of use, or modification to the
Premises then, and in that event, Lessee shall either: (i) immediately cease
such changed use or intensity of use and/or take such other steps as may be
necessary to eliminate the requirement for such Capital Expenditure, or (ii)
complete such Capital Expenditure at its own expense. Lessee shall not,
however, have any right to terminate this Lease.

2.4       Acknowledgements.
Lessee acknowledges that: (a) it has been advised by Lessor to satisfy itself
with respect to the condition of the Premises (including but not limited to the
electrical, HVAC and fire sprinkler systems, security, environmental aspects,
and compliance with Applicable Requirements and the Americans with Disabilities
Act), and their suitability for Lessee’s intended use, (b) Lessee has made such
investigation as it deems necessary with reference to such matters and assumes
all responsibility therefor as the same relate to its occupancy of the
Premises, and (c) neither Lessor, Lessor’s agents, nor Brokers have made any
oral or written representations or warranties with respect to said matters
other than as set forth in this Lease. In addition, Lessor acknowledges that:
(i) Brokers have made no representations, promises or warranties concerning
Lessee’s ability to honor the Lease or suitability to occupy the Premises, and
(ii) it is Lessor’s sole responsibility to investigate the financial capability
and/or suitability of all proposed tenants.

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2.5       Lessee as
Prior Owner/Occupant. Lessee agrees that Lessee is familiar with the
condition of the Premises as Lessee has had possession and occupancy of the
Premises prior to the Commencement Date (and prior to Lessor’s acquisition of
the Project) and Lessee hereby accepts the Premises on an “As-is,” “Where-is”
basis with all faults and defects. The
warranties made by Lessor in Paragraph 2 shall be of no force or effect if
immediately prior to the Commencement Date Lessee was the owner or occupant of
the Premises. In such event, Lessee shall be responsible for any necessary
corrective work.

3.         Term.

3.1       Term. The
Commencement Date, Expiration Date and Original Term of this Lease are as
specified in Paragraph 1.3.

3.4       Lessee Compliance. Lessor shall not be required to deliver
possession of the Premises to Lessee until Lessee complies with its obligation
to provide evidence of insurance (Paragraph 8.5). Pending delivery of such
evidence, Lessee shall be required to perform all of its obligations under this
Lease from and after the Start Date, including the payment of Rent,
notwithstanding Lessor’s election to withhold possession pending receipt of
such evidence of insurance.

4.         Rent.

4.1.      Rent
Defined. All monetary obligations of Lessee to Lessor under the
terms of this Lease (except for the Security Deposit) are deemed to be rent (“Rent”).

4.2       Payment. Lessee
shall cause payment of Rent to be received by Lessor in lawful money of the
United States, without offset or deduction (except as specifically permitted in
this Lease), on or before the day on which it is due. All monetary amounts
shall be rounded to the nearest whole dollar. In the event that any invoice
prepared by Lessor is inaccurate such inaccuracy shall not constitute a waiver
and Lessee shall be obligated to pay the amount set forth in this Lease. Rent
for any period during the term hereof which is for less than one full calendar
month shall be prorated based upon the actual number of days of said month.
Payment of Rent shall be made to Lessor at First Industrial, L.P., P.O. Box
100363, Pasadena, California 91189-0363, or if sent by overnight courier,
Arroyo Parkway Plaza, Suite 150, 1111 South Arroyo Parkway, Pasadena,
California 91105-1103, Attention: First Industrial, L.P., Box 100363 or to such
other persons or place as Lessor may from time to time designate in writing.
Acceptance of a payment which is less than the amount then due shall not be a
waiver of Lessor’s rights to the balance of such Rent, regardless of Lessor’s
endorsement of any check so stating. In the event that any check, draft, or
other instrument of payment given by Lessee to Lessor is dishonored for any
reason, Lessee agrees to pay to Lessor the sum of $25 in addition to any Late
Charge. Payments will be applied first to accrued late charges and attorney’s
fees, second to accrued interest, then to Base Rent, and any remaining amount
to any other outstanding charges or costs.

5.         Security Deposit.
See Rider.

6.         Use.

6.1       Use. Lessee
shall use and occupy the Premises only for the Agreed Use,

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and for no other purpose. Lessee shall not use or
permit the use of the Premises in a manner that is unlawful, creates damage,
waste or a nuisance, or that unreasonably disturbs occupants of or causes
damage to neighboring premises or properties. Other than guide, signal and
seeing eye dogs, Lessee shall not keep or allow in the Premises any pets,
animals, birds, fish, or reptiles. Lessor shall not unreasonably withhold or
delay its consent to any written request for a modification of the Agreed Use,
so long as the same will not impair the structural integrity of the
improvements on the Premises or the mechanical or electrical systems therein,
and/or is not significantly more burdensome of the Premises. If Lessor elects
to withhold consent, Lessor shall within 7 days after such request give written
notification of same, which notice shall include an explanation of Lessor’s
objections to the change in the Agreed Use. Upon Lessor’s request, Lessee shall
complete and deliver to Lessor a “Lessee Operations Inquiry Form” in the form
reasonably requested by Lessor describing the nature of Lessee’s proposed
business operations at the Premises, which form is intended to and shall be,
relied upon by Lessor.

6.2       Hazardous Substances.

(a)       Reportable
Uses Require Consent. The term “Hazardous Substances” as
used in this Lease shall mean any product, substance, or waste whose presence,
use, manufacture, disposal, transportation, or release, either by itself or in
combination with other materials expected to be on the Premises, is either: (i)
potentially injurious to the public health, safety or welfare, the environment
or the Premises, (ii) regulated or monitored by any governmental authority, or
(iii) a basis for potential liability of Lessor to any governmental agency or
third party under any applicable statute or common law theory. Hazardous
Substances shall include, but not be limited to, hydrocarbons, petroleum,
gasoline, and/or crude oil or any products, by-products or fractions thereof.
Lessee shall not engage in any activity in or on the Premises which constitutes
a Reportable Use of Hazardous Substances without the express prior written
consent of Lessor and timely compliance (at Lessee’s expense) with all
Applicable Requirements. “Reportable Use”
shall mean (i) the installation or use of any above or below ground storage
tank, (ii) the generation, possession, storage, use, transportation, or
disposal of a Hazardous Substance that requires a permit from, or with respect
to which a report, notice, registration or business plan is required to be
filed with, any governmental authority, and/or (iii) the presence at the
Premises of a Hazardous Substance with respect to which any Applicable
Requirements requires that a notice be given to persons entering or occupying
the Premises or neighboring properties. Notwithstanding the foregoing, Lessee
may use any ordinary and customary materials reasonably required to be used in
the normal course of the Agreed Use, ordinary office supplies (copier toner,
liquid paper, glue, etc.) and common household cleaning materials, so long as
such use is in compliance with all Applicable Requirements. Furthermore, Lessee
may use those materials used in its operation as a manufacturer of recreational
vehicles (including, without limitation, paint booths and the existing DST (as
defined in the Rider)] so long as such use is in compliance with all Applicable
Requirements. In addition, Lessor may condition its consent to any additional
Reportable Use upon receiving such additional assurances as Lessor reasonably
deems necessary to protect itself, the public, the Premises and/or the
environment against damage, contamination, injury and/or liability, including,
but not limited to, the installation (and removal on or before Lease expiration
or termination) of protective modifications if ordered by a governmental agency
having jurisdiction over the Property (such as concrete encasements) and/or
reasonably increasing the Security Deposit.

(b)      Duty to
Inform Lessor. If Lessee knows, or has reasonable cause to believe,
that a Hazardous Substance has come to be located in, on, under or about the
Premises, other than as previously consented to by Lessor, Lessee shall
immediately give written notice of such fact to Lessor, and provide Lessor with
a copy of any report, notice, claim or other documentation which it has
concerning the presence of such Hazardous Substance.

(c)       Lessee
Remediation. Lessee shall not cause or permit any Hazardous
Substance to be spilled or released in, on, under, or about the premises
(including through the plumbing or sanitary sewer system) and shall promptly,
at Lessee’s expense, comply with all Applicable Requirements and take all
investigatory and/or remedial action reasonably recommended, whether or not
formally ordered or required, for the cleanup of any contamination of, and for
the maintenance, security and/or monitoring of the Premises or neighboring
properties, that was caused or materially contributed to by Lessee, or
pertaining to or involving any Hazardous Substance brought onto the Premises
during the term of this Lease, by or for Lessee, or any third party.

(d)      Lessee
Indemnification. Lessee
shall indemnify, defend and hold Lessor, its agents, employees, lenders and
ground lessor, if any, harmless from and against any and all loss of rents
and/or damages, liabilities, judgments, claims, expenses, penalties, and
attorneys’ and consultants’ fees arising out of or involving any Hazardous
Substance brought onto the Premises by or for Lessee, or any third party under
the control of Lessee (provided, however, that Lessee shall have no liability under
this Lease with respect to underground migration of any Hazardous Substance
under the premises from adjacent properties not caused or contributed to by
Lessee). Lessee’s obligations shall include, but not be limited to, the effects
of any contamination or injury to person, property or the environment created
or suffered by Lessee, and the cost of investigation, removal, remediation,
restoration and/or abatement, and shall survive the expiration or termination
of this Lease. No termination, cancellation or release
agreement entered into by Lessor and Lessee shall release Lessee from its
obligations under this Lease with respect to Hazardous Substances, unless
specifically so agreed by Lessor in writing at the time of such agreement.

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6.3       Lessee’s
Compliance with Applicable Requirements. Except as otherwise provided in this Lease, Lessee shall, at
Lessee’s sole expense, fully, diligently and in a timely manner, materially
comply with all Applicable Requirements, the requirements of any applicable
fire insurance underwriter or rating bureau, and the recommendations of Lessor’s
engineers and/or consultants which relate in any manner to the such Applicable
Requirements, without regard to whether such Applicable Requirements are now in
effect or become effective after the Commencement Date. Lessee shall, within 10
days after receipt of Lessor’s written request, provide Lessor with copies of
all permits and other documents, and other information evidencing Lessee’s
compliance with any Applicable Requirements specified by Lessor, and shall
immediately upon receipt, notify Lessor in writing (with copies of any
documents involved) of any threatened or actual claim, notice, citation,
warning, complaint or report pertaining to or involving the failure of Lessee
or the Premises to comply with any Applicable Requirements. Likewise, Lessee
shall immediately give written notice to Lessor of: (i) any water damage to the
Premises and any suspected seepage, pooling, dampness or other condition
conducive to the production of mold; or (ii) any mustiness or other odors that
might indicate the presence of mold in the Premises.

6.4       Inspection;
Compliance. Lessor and Lessor’s “Lender” (as defined in Paragraph 30) and consultants shall
have the right to enter into Premises at any time, in the case of an emergency,
and otherwise at reasonable times after reasonable notice, for the purpose of
inspecting the condition of the Premises and for verifying compliance by Lessee
with this Lease. The cost of any such inspections shall be paid by Lessor,
unless a material violation of Applicable Requirements, or a Hazardous
Substance Condition (see paragraph 9.1) is found to exist or be imminent. In
such case, Lessee shall upon request reimburse Lessor for the cost of such
inspection, so long as such inspection is reasonably related to the violation
or contamination. In addition, Lessee shall provide copies of all relevant
material safety data sheets (MSDS) to
Lessor within 10 days of the receipt of a written request therefor. Lessee’s
obligations and liabilities under this Section 6.4 shall be limited to the acts
and/or omissions of Lessee or any party within Lessee’s control. Lessee shall
not be obligated to pay for any costs incurred pursuant to this Section 6.4
which are unreasonable.

7.         Maintenance;
Repairs, Utility Installations; Trade Fixtures and Alterations.

7.1       Lessee’s Obligations.

(a)       In General. Subject
to the provisions of 6.3 (Lessee’s Compliance with Applicable Requirements),
7.2 (Lessor’s Obligations), 9 (Damage or Destruction), and 14 (Condemnation),
Lessee shall, at Lessee’s sole expense, keep the Premises, Utility Installations
(intended for Lessee’s exclusive use, no matter where located), and Alterations
in good order, condition and repair (whether or not the portion of the Premises
requiring repairs, or the means of repairing the same, are reasonably or
readily accessible to Lessee, and whether or not the need for such repairs
occurs as a result of Lessee’s use, any prior use, the elements or the age of
such portion of the Premises), including, but not limited to, all equipment or
facilities, such as plumbing, HVAC equipment, electrical, lighting facilities,
boilers, pressure vessels, fire protection system, fixtures, walls (interior
and exterior), foundations, ceilings, roofs, roof drainage systems, floors,
windows, doors, plate glass, skylights, landscaping, driveways, parking lots,
fences, retaining walls, signs, sidewalks and parkways located in, on, or
adjacent to the Premises. Lessee, in keeping the Premises in good order,
condition and repair, shall exercise and perform good maintenance practices,
specifically including the procurement and maintenance of the service contracts
required by Paragraph 7.1(b) below. Lessee’s obligations shall include
restorations, replacements or renewals when necessary to keep the Premises and
all improvements thereon or a part thereof in good order, condition and state
of repair. Lessee shall, during the term of this Lease, keep the exterior
appearance of the Building in a first-class condition (including, e.g. graffiti
removal) consistent with the exterior appearance of other similar facilities of
comparable age and size in the vicinity, including, when necessary, the
exterior repainting of the Building.

(b)      Service
Contracts. Subject to the last sentence of this Section 7.1(b),
Lessee shall, at Lessee’s sole expense, procure and maintain contracts, with
copies to Lessor, in customary form and substance for, and with contractors
specializing and experienced in the maintenance of the following equipment and
improvements, if any, if and when installed on the Premises: (i) HVAC
equipment, (ii) boiler, and pressure vessels, (iii) fire extinguishing systems,
including fire alarm and/or smoke detection, (iv) landscaping and irrigation
systems, (v) roof covering and drains, (vi) clarifiers (vii) basic utility feed
to the perimeter of the Building, and (viii) any other equipment, if reasonably
required by Lessor. With respect to the service contract for the HVAC
equipment, Lessee shall maintain in full force and effect, a preventative
maintenance and service contract with a reputable service provider for
maintenance of the HVAC equipment of the Premises (the “HVAC
Maintenance Contract”). The terms and provisions of the HVAC
Maintenance Contract shall require that the service provider maintain the
Premises’ HVAC system in accordance with the manufacturer’s recommendations and
otherwise in accordance with normal, customary and reasonable practices in the
geographic area in which the Premises is located and for HVAC equipment
comparable to the Premises, HVAC system. Within 30 days following the
Commencement Date, Lessee shall procure and deliver to Lessor the HVAC
Maintenance Contract. Thereafter, Lessee shall provide to Lessor a copy of
renewals or replacements of such HVAC Maintenance Contract no later than 30
days prior to the then-applicable expiry date of the existing HVAC Maintenance
Contract. If Lessee fails to timely deliver to Lessor the HVAC Maintenance
Contract (or any applicable renewal or replacement thereof), then Lessor shall
have the right to contract directly for the periodic maintenance of the HVAC
equipment in the Premises and to charge the cost thereof back to Lessee as
Rent. Lessor acknowledges and agrees that so long as a reputable technician
that is an employee of Lessee performs Lessee’s obligations under this
Paragraph 7.1, then Lessee shall not be required to maintain contracts with
third party providers for any of (i) - (vi) above.

(c)       Failure to
Perform. If Lessee fails to perform Lessee’s obligations under this
Paragraph 7.1, Lessor may enter upon the Premises after 10 days’ prior written
notice to Lessee (except in the case of an emergency, in which case no notice
shall be required), perform such obligations on Lessee’s behalf, and put the
Premises in good order, condition and repair, and Lessee shall promptly pay to
Lessor a sum equal to 105% of the cost thereof.

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(d)      Replacement.
Subject to Lessee’s indemnification of Lessor as set forth in Paragraph 8.7
below, and without relieving Lessee of liability resulting from Lessee’s
failure to exercise and perform good maintenance practices, if an item
described in Paragraph 7.1(b) cannot be repaired other than at a cost which is
in excess of 50% of the cost of replacing such item, then such item shall be
replaced by Lessor, and the cost thereof shall be amortized by Lessor over the
useful life of the replacement (in accordance with GAAP), together with
interest at Prime (on a per annum basis). Lessee acknowledges that replacements
that may be required pursuant to this Paragraph 7.1(d) shall include, but not
be limited to, replacements of the HVAC system and the roof.

7.2       Lessor’s
Obligations. Subject to the provisions of 9 (Damage or Destruction)
and 14 (Condemnation), it is intended by the Parties hereto that Lessor have no
obligation, in any manner whatsoever, to repair and maintain the Premises, or
the equipment therein, all of which obligations are intended to be that of the
Lessee. It is the intention of the Parties that the terms of this Lease govern
the respective obligations of the Parties as to maintenance and repair of the
Premises, and they expressly waive the benefit of any statute now or hereafter
in effect to the extent it is inconsistent with the terms of this Lease.

7.3       Utility Installations;
Trade Fixtures; Alterations.

(a)       Definitions.
The term “Utility Installations” refers to all
floor and window coverings, air and/or vacuum lines, power panels, electrical
distribution, security and fire protection systems, communication cabling,
lighting fixtures, HVAC equipment, plumbing, and fencing in or on the Premises.
The term “Trade Fixtures” shall mean Lessee’s
machinery and equipment that can be removed without doing material damage to
the Premises. The term “Alterations”
shall mean any modification of the improvements, other than Utility
Installations or Trade Fixtures, whether by addition or deletion. “Lessee Owned Alterations and/or Utility Installations” are
defined as Alterations and/or Utility Installations made by Lessee that are not
yet owned by Lessor pursuant to Paragraph 7.4(a).

(b)      Consent.
Lessee shall not make any Alterations or Utility Installations to the Premises
without Lessor’s prior written consent, which consent shall not be unreasonably
withheld, conditioned or delayed provided, however, that it shall not be
unreasonable for Lessor to withhold its consent if Lessor has approved
Alterations equal to or greater than $50,000.00 during the preceding twelve
(12) month period. Lessee may,
however, make non-structural Utility Installations to the interior of the
Premises (excluding the roof) without such consent but upon notice to Lessor,
as long as they are not visible from the outside, do not involve puncturing,
relocating or removing the roof or any existing walls, will not affect the
electrical, plumbing, HVAC, and/or life safety systems, and the cumulative cost
thereof during this Lease as extended does not exceed a sum equal to 6 month’s
Base Rent in the aggregate or a sum equal to two month’s Base Rent in any one
year. Notwithstanding the foregoing, Lessee shall not make or permit any roof
penetrations and/or install anything on the roof without the prior written
consent of Lessor, which consent shall not be unreasonably withheld,
conditioned or delayed. Lessor may, as a precondition to granting such
approval, require Lessee to utilize a contractor chosen and/or approved by
Lessor. Any Alterations or Utility Installations that Lessee shall desire to
make and which require the consent of the Lessor shall be presented to Lessor
in written form with detailed plans. Consent shall be deemed conditioned upon
Lessee’s: (i) acquiring all applicable governmental permits, (ii) furnishing
Lessor with copies of both the permits and the plans and specifications prior
to commencement of the work, and (iii) compliance with all conditions of said
permits and other Applicable Requirements in a prompt and expeditious manner.
Any Alterations or Utility Installations shall be performed in a workmanlike
manner with good and sufficient materials. If as-built plans are prepared with
respect to any Alterations or Utility installations, then once such plans have
been prepared, Lessee shall promptly furnish Lessor with a set.

(c)       Liens; Bonds.
Lessee shall pay, when due, all claims for labor or materials furnished or
alleged to have been furnished to or for Lessee at or for use on the Premises,
which claims are or may be secured by any mechanic’s or materialmen’s lien
against the Premises or any interest therein. Lessee shall give Lessor not less
than 10 days notice prior to the commencement of any work in, on or about the
Premises, and Lessor shall have the right to post notices of
non-responsibility. If Lessee shall contest the validity of any such lien,
claim or demand, then Lessee shall, at its sole expense defend and protect
itself, Lessor and the Premises against the same and shall pay and satisfy any
such adverse judgment that may be rendered thereon before the enforcement
thereof. If Lessor shall require, Lessee shall furnish a surety bond in an
amount equal to 150% of the amount of such contested lien, claim or demand,
indemnifying Lessor against liability for the same.

7.4       Ownership; Removal; Surrender; and Restoration.

(a)       Ownership.
Subject to Lessor’s right to require removal or elect ownership as hereinafter
provided, all Alterations and Utility Installations made by Lessee shall be the
property of Lessee, but considered a part of the Premises. Lessor may, at any
time, elect in writing to be the owner of all or any specified part of the
Lessee Owned Alterations and Utility Installations. Unless otherwise instructed
per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility
Installations shall, at the expiration or termination of this Lease, become the
property of Lessor and be surrendered by Lessee with the Premises.

(b)      Removal.
By delivery to Lessee of written notice from Lessor not earlier than 90 and not
later than 30 days prior to the end of the term of this Lease, Lessor may
require that any or all Lessee Owned Alterations or Utility Installations be
removed by the expiration or termination of this Lease. Lessor may require the
removal at any time of all or any part of any Lessee Owned Alterations or
Utility Installations made without the required consent.

(c)       Surrender;
Restoration. Lessee shall surrender the Premises by the Expiration
Date or any earlier termination date, with all of the improvements, parts and
surfaces thereof broom clean and reasonably free of debris. “Ordinary wear and
tear” shall not include any damage or deterioration that would have been
prevented by good maintenance practice. Lessee shall repair any damage
occasioned by the installation, maintenance or removal of Trade Fixtures,
Lessee owned Alterations and/or Utility Installations, furnishings, and
equipment as well as the removal of

 6
 

any storage tank installed by or for Lessee. Lessee
shall completely remove from the Premises any and all Hazardous Substances
brought onto the Premises by or for Lessee, or any third party under the
control of Lessee (except Hazardous Substances which were deposited via
underground migration from areas outside of the Premises, or if applicable, the
Premises) even if such removal would require Lessee to perform or pay for work
that exceeds statutory requirements. Trade Fixtures shall remain the property
of Lessee and shall be removed by Lessee. In addition, Lessee shall remove from
the Premises all property which is owned by Lessee or third parties other than
Lessor and Lessee shall repair any damage caused by such removal. Any personal
property of Lessee not removed on or before the Expiration Date or any earlier
termination date shall be deemed to have been abandoned by Lessee and may be
disposed of or retained by Lessor as Lessor may desire. Notwithstanding
anything to the contrary set forth in this Lease, Lessor, at its election,
shall have the right to cause Lessee to either (i) convey the cranes located at
the Project to Lessor pursuant to a quitclaim bill of sale (which conveyance
shall occur upon the expiration of this Lease) or (ii) remove the cranes from
the Project, at Lessee’s sole cost and expense, pursuant to the terms of this
Paragraph 7.4(c). Lessor shall notify Lessee of such election on or prior to
the expiration of this Lease. The reasonable cost of removing and disposing of
such property and repairing any damage to any of the Premises caused by such removal
shall be paid by Lessee to Lessor upon demand. The failure by Lessee to timely
vacate the Premises pursuant to this Paragraph 7.4(c) without the express
written consent of Lessor shall constitute both a Default under the provisions
of Paragraph 13.2 below and a holdover under the provisions of Paragraph 26
below.

8.         Insurance; Indemnity.

8.1       Payment For Insurance. Lessee shall pay for all insurance
required under Paragraph 8 except to the extent of the cost attributable to
liability insurance carried by Lessor under Paragraph 8.2(b) in excess of
$2,000,000 per occurrence. Premiums for policy periods commencing prior to or
extending beyond the Lease term shall be prorated to correspond to the Lease
term. Payment shall be made monthly by Lessee to Lessor within 30 days
following receipt of Lessor’s monthly rent invoice.

8.2       Liability Insurance.

(a)       Carried by Lessee. Lessee shall obtain and keep in force a
Commercial General Liability policy of insurance protecting Lessee and Lessor
as an additional insured against claims for bodily injury, personal injury and
property damage based upon or arising out of the ownership, use, occupancy or
maintenance of Premises and all areas appurtenant thereto. Such insurance shall
be on an occurrence basis providing single limit coverage in an amount not less
than $2,000,000 per occurrence with an annual aggregate of not less than
$5,000,000. Lessee shall add Lessor as an additional insured by means of an
endorsement at least as broad as the Insurance Service Organization’s “Additional
Insured-Managers or Lessors of Premises” Endorsement and coverage shall also be
extended to include damage caused by heat, smoke or fumes from a hostile fire.
The policy shall contain a separation of insured parties provision as between
insured persons or organizations, but shall include coverage for liability
assumed under this Lease as an “insured
contract” for the performance of Lessee’s indemnity obligations
under this Lease. The limits of said insurance shall not, however, limit the
liability of Lessee nor relieve Lessee of any obligation hereunder. Lessee
shall provide an endorsement on its liability policy(ies) which provides that
its insurance shall be primary to and not contributory with any similar
insurance carried by Lessor, whose insurance shall be considered excess
insurance only.

(b)      Carried by Lessor. Lessor shall maintain liability insurance
as described in Paragraph 8.2(a), in addition to, and not in lieu of, the
insurance required to be maintained by Lessee. Lessee shall not be named as an
additional insured therein.

8.3       Property Insurance - Building, Improvements and Rental Value.

(a)       Building and Improvements. The Insuring Party shall obtain and
keep in force a policy or policies in the name of Lessor, with loss payable to
Lessor, any ground-lessor, and to any Lender insuring loss or damage to the
Premises. The amount of such insurance shall be equal to the full insurable
replacement cost of the Premises, as the same shall exist from time to time, or
the amount required by any Lender, but in no event more than the commercially
reasonable and available insurable value thereof. If Lessor is the Insuring
Party, however, Lessee Owned Alterations and Utility Installations, Trade
Fixtures, and Lessee’s personal property shall be insured by Lessee under
Paragraph 8.4 rather than by Lessor. If the coverage is available and
commercially appropriate, such policy or policies shall insure against all
risks of direct physical loss or damage (except the perils of flood unless
required by a Lender), including coverage for debris removal and the
enforcement of any Applicable Requirements requiring the upgrading, demolition,
reconstruction or replacement of any portion of the Premises as the result of a
covered loss. Said policy or policies shall also contain an agreed valuation
provision in lieu of any coinsurance clause, waiver of subrogation. If such
insurance coverage has a deductible clause, the deductible amount shall not
exceed $10,000 per occurrence, and Lessee shall be liable for such deductible
amount in the event of an Insured Loss.

(b)      Rental Value. The Insuring Party shall obtain and keep in
force a policy or policies in the name of Lessor with loss payable to Lessor
and any Lender, insuring the loss of the full Rent for one year with an
extended period of indemnity for an additional 180 days (“Rental Value
Insurance”). Said insurance shall contain an agreed valuation provision in lieu
of any coinsurance clause, and the amount of coverage shall be adjusted
annually to reflect the projected Rent otherwise payable by Lessee, for the
next 12 month period. Lessee shall be liable for any deductible amount in the
event of such loss.

8.4       Lessee’s Property; Business Interruption Insurance.

(a)       Property Damage. Lessee shall obtain and maintain insurance
coverage on all of Lessee’s personal property, Trade Fixtures, and Lessee Owned
Alterations and Utility Installations. Such insurance shall be full replacement
cost coverage with a deductible of not to exceed $250,000 per occurrence. The
proceeds from any such insurance shall be used by Lessee for the replacement of
personal property, Trade Fixtures and Lessee Owned Alterations and Utility
Installations. Lessee shall provide Lessor with written evidence that such
insurance is in force. Notwithstanding
the terms of Section 8.6 below, Lessee shall be solely liable for any and all
of such deductibles in the event of an Insured Loss.

(b)      Business Interruption. Lessee shall obtain and maintain loss
of income and extra expense insurance in amounts as will reimburse Lessee for
direct or indirect loss of earnings attributable to all perils commonly insured
against by prudent lessees in the business of Lessee or attributable to
prevention of access to the Premises as a result of such perils.

 7
 

(c)       No Representation
of Adequate Coverage.
Lessor makes no representation that the limits or forms of coverage of
insurance specified herein are adequate to cover Lessee’s property, business
operations or obligations under this Lease.

8.5       Insurance
Policies. Insurance required herein shall be by companies duly
licensed or admitted to transact business in the state where the Premises are
located, and with respect to insurance carried by Lessee pursuant to Section
8.2(a) above, maintaining during the policy term a “General
Policyholders Rating” of at least A, as set forth in the most current issue of “Best’s
Insurance Guide”, or such other rating as may be required by a Lender. Lessee
shall not do or permit to be done anything which invalidates the required
insurance policies. Lessee shall, prior to the Start Date, deliver to Lessor
certified copies of policies of such insurance or certificates evidencing the
existence and amounts of the required insurance. No such policy shall be
cancelable or subject to modification except after 30 days prior written notice
to Lessor. Lessee shall, at least 10 days prior to the expiration of such
policies, furnish Lessor with evidence of renewals or “insurance binders”
evidencing renewal thereof, or Lessor may order such insurance and charge the
cost thereof to Lessee, which amount shall be payable by Lessee to Lessor upon
demand. Such policies shall be for a term of at least one year, or the length
of the remaining term of this Lease, whichever is less. If either Party shall
fail to procure and maintain the insurance required to be carried by it, the
other Party may, but shall not be required to, procure and maintain the same.
In addition, in the event that Lessee fails, at any time or from time to time,
to procure and maintain the insurance required to be carried by Lessee, Lessor
may impose on Lessee, as Rent, a monthly delinquency fee, for each month during
which Lessee fails to comply with the foregoing obligation, in an amount equal
to five percent (5%) of the Base Rent then in effect.

8.6       Waiver of
Subrogation. Without affecting any other rights or remedies, Lessee
and Lessor each hereby release and relieve the other, and waive their entire
right to recover damages against the other, for loss of or damage to its
property arising out of or incident to the perils required to be insured
against herein. The effect of such releases and waivers is not limited by the
amount of insurance carried or required, or by any deductibles applicable
hereto. The Parties agree to have their respective property damage insurance
carriers waive any right to subrogation that such companies may have against
Lessor or Lessee, as the case may be, so long as the insurance is not
invalidated thereby.

8.7       Indemnity.
Except for and to the extent of Lessor’s gross negligence or willful
misconduct, Lessee shall indemnify, protect, defend and hold harmless the
Premises, Lessor and its agents, Lessor’s master or ground lessor, partners and
Lenders, from and against any and all claims, loss of rents and/or damages,
liens, judgments, penalties, attorneys’ and consultants’ fees, expenses and/or
liabilities arising out of, involving, or in connection with, the use and/or
occupancy of the Premises by Lessee. If any action or proceeding is brought
against Lessor by reason of any of the foregoing matters, Lessee shall upon
notice defend the same at Lessee’s expense by counsel reasonably satisfactory
to Lessor and Lessor shall cooperate with Lessee in such defense. Lessor need
not have first paid any such claim in order to be defended or indemnified.

8.8       Exemption of Lessor and its Agents from Liability.
Notwithstanding the negligence or breach of this Lease by Lessor or its agents,
neither Lessor nor its agents shall be liable under any circumstances for: (i)
injury or damage to the person or goods, wares, merchandise or other property
of Lessee, Lessee’s employees, contractors, invitees, customers, or any other
person in or about the Premises, whether such damage or injury is caused by or
results from fire, steam, electricity, gas, water or rain, indoor air quality,
the presence of mold or from the breakage, leakage, obstruction or other
defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or
lighting fixtures, or from any other cause, whether the said injury or damage results
from conditions arising upon the Premises or upon other portions of the
building of which the Premises are a part, or from other sources or places,
(ii) any damages arising from any act or neglect of any other tenant of Lessor
or from the failure of Lessor or its agents to enforce the provisions of any
other lease in the Project, or (iii) injury to Lessee’s business or for any
loss of income or profit therefrom. Instead, it is intended that Lessee’s sole
recourse in the event of such damages or injury be to file a claim on the
insurance policy(ies) that Lessee is required to maintain pursuant to the
provisions of paragraph 8.

9.         Damage or Destruction.

9.1       Definitions.

(a)       “Premises
Partial Damage” shall mean damage or destruction to the improvements
on the Premises, other than Lessee Owned Alterations and Utility Installations,
which can reasonably be repaired in 6 months or less from the date of the
damage or destruction. Lessor shall notify Lessee in writing within 30 days
from the date of the damage or destruction as to whether or not the damage is
Partial or Total. Notwithstanding the foregoing, Premises Partial Damage shall
not include damage to windows, doors, and/or other similar items which Lessee
has the responsibility to repair or replace pursuant to the provisions of
Paragraph 7.1.

(b)      “Premises
Total Destruction” shall mean damage or destruction to the Premises,
other than Lessee Owned Alterations and Utility Installations and Trade
Fixtures, which cannot reasonably be repaired in 6 months or less from the date
of the damage or destruction. Lessor shall notify Lessee in writing within 45
days from the date of the damage or destruction as to whether or not the damage
is Partial or Total.

(c)       “Insured
Loss” shall mean damage or destruction to improvements on the
Premises, other than Lessee Owned Alterations and Utility Installations and
Trade Fixtures, which was caused by an event required to be covered by the
insurance described in Paragraph 8.3(a), irrespective of any deductible amounts
or coverage limits involved.

(d)       “Replacement
Cost” shall mean the cost to repair or rebuild the improvements
owned by Lessor at the time of the occurrence to their condition existing
immediately prior thereto, including demolition, debris removal and upgrading required
by the operation of Applicable Requirements, and without deduction for
depreciation.

(e)       “Hazardous
Substance Condition” shall mean the occurrence or discovery of a
condition involving the presence of, or a contamination by, a Hazardous
Substance as defined in Paragraph 6.2(a), in, on, or under the Premises which
requires repair, remediation, or restoration.

 8
 

9.2       Partial
Damage - Insured Loss. If a Premises Partial Damage that is an Insured
Loss occurs, then Lessor shall, at Lessor’s expense, repair such damage (but
not Lessee’s Trade Fixtures or Lessee Owned Alterations and Utility
Installations) as soon as reasonably possible and this Lease shall continue in
full force and effect.

9.3       Partial
Damage - Uninsured Loss. If a Premises Partial Damage that is not an
Insured Loss occurs, unless caused by a grossly negligent or willful act of
Lessee (in which event Lessee shall make the repairs at Lessee’s expense),
Lessor may either: (i) repair such damage as soon as reasonably possible at
Lessor’s expense, in which event this Lease shall continue in full force and
effect, or (ii) if the uninsured loss is greater than $1,000,000, terminate
this Lease by giving written notice to Lessee within 30 days after receipt by
Lessor of knowledge of the occurrence of such damage. Such termination shall be
effective 60 days following the date of such notice. In the event Lessor elects
to terminate this Lease, Lessee shall have the right within 10 days after
receipt of the termination notice to give written notice to Lessor of Lessee’s
commitment to pay for the repair of such damage without reimbursement from
Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance
thereof within 30 days after making such commitment. In such event this Lease
shall continue in full force and effect, and Lessor shall proceed to make such
repairs as soon as reasonably possible after the required funds are available.
If Lessee does not make the required commitment, this Lease shall terminate as
of the date specified in the termination notice. See Rider.

9.4       Total
Destruction. Notwithstanding any other provision hereof, if a
Premises Total Destruction occurs, this Lease shall terminate 60 days following
such Destruction. If the damage or destruction was caused by the gross negligence
or willful misconduct of Lessee, Lessor shall have the right to recover Lessor’s
damages from Lessee, except as provided in Paragraph 8.6. See Rider.

9.5       Damage Near
End of Term. If at any time during the last 6 months of this Lease
there is damage for which the cost to repair exceeds one month’s Base Rent,
whether or not an Insured Loss, Lessor may terminate this Lease effective 60
days following the data of occurrence of such damage by giving a written
termination notice to Lessee within 30 days after the date of occurrence of
such damage. Notwithstanding the foregoing, if Lessee at that time has an
exercisable option to extend this Lease or to purchase the Premises, then
Lessee may preserve this Lease by, (a) exercising such option and (b) providing
Lessor with any shortage in insurance proceeds (or adequate assurance thereof)
needed to make the repairs on or before the earlier of (i) the date which is 10
days after Lessee’s receipt of Lessor’s written notice purporting to terminate
this Lease, or (ii) the day prior to the date upon which such option expires.
If Lessee duly exercises such option during such period and provides Lessor
with funds (or adequate assurance thereof) to cover any shortage in insurance
proceeds, Lessor shall, at Lessor’s commercially reasonable expense, repair
such damage as soon as reasonably possible and this Lease shall continue in
full force and effect. If Lessee fails to exercise such option and provide such
funds or assurance during such period, then this Lease shall terminate on the
date specified in the termination notice and Lessee’s option shall be
extinguished.

9.6       Abatement of
Rent; Lessee’s Remedies.

(a)       Abatement.
In the event of Premises Partial Damage or Premises Total Destruction or a
Hazardous Substance Condition for which Lessee is not responsible under the
Lease, the Rent payable by Lessee for the period required for the repair,
remediation or restoration of such damage shall be abated in proportion to the
degree to which Lessee’s use of the Premises is impaired. All other obligations
of Lessee hereunder shall be performed by Lessee, and Lessor shall have no
liability for any such damage, destruction, remediation, repair or restoration
except as provided herein.

(b)      Remedies. If
Lessor shall be obligated to repair or restore the Premises and does not
commence, in a substantial and meaningful way, such repair or restoration
within 90 days after such obligation shall accrue, Lessee may, at any time
prior to the commencement of such repair or restoration, give written notice to
Lessor and to any Lenders of which Lessee has actual notice, of Lessee’s
election to terminate this Lease on a date not less than 60 days following the
giving of such notice. If Lessee gives such notice and such repair or
restoration is commenced within such 30 days thereafter, this Lease shall
terminate as of the date specified in said notice. If the repair or restoration
is commenced within such 30 days, this Lease shall continue in full force and
effect. “Commence” shall mean either the unconditional authorization of the
preparation of the required plans, or the beginning of the actual work on the
Premises, whichever first occurs.

9.7       Termination;
Advance Payments. Upon termination of this Lease pursuant to
Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall be made
concerning advance Base Rent and any other advance payments made by Lessee to
Lessor. Lessor shall, in addition, return to Lessee so much of Lessee’s
Security Deposit as has not been, or is not then required to be, used by
Lessor.

10.       Real Property Taxes.

10.1     Definition.
As used herein, the term “Real Property Taxes”
shall include any form of assessment; real estate, general, special, ordinary
or extraordinary, or rental levy or tax (other than inheritance personal income
or estate taxes); improvement bond; and/or license fee imposed upon or levied
against any legal or equitable interest of Lessor in the Premises or the
Project, Lessor’s right to other income therefrom, and/or Lessor’s business of
leasing by any authority having the direct or indirect power to tax and where
the funds are generated with reference to the Building address and where the
proceeds so generated are to be applied by the city, county or other local
taxing authority of a jurisdiction within which the Premises are located. Real
Property Taxes shall also include any tax, fee, levy, assessment or charge, or
any increase therein: (i) imposed by reason of events

 9
 

occurring during the term of this Lease, including but
not limited to, a change in the ownership of the Premises, and (ii) levied or
assessed on machinery or equipment provided by Lessor to Lessee pursuant to
this Lease.

10.2              Payment of Taxes. In addition to Base Rent, Lessee shall pay
to Lessor an amount equal to the Real Property Tax installment due at least 20
days prior to the applicable delinquency date. If any such installment shall
cover any period of time after the expiration or termination of this Lease,
Lessee’s share of such installment shall be prorated. Notwithstanding anything
to the contrary contained herein, Lessee shall be solely responsible for the
timely payment of all Real Property Taxes attributable to the period prior to
the date of this Lease.

10.3              Joint Assessment. If the Premises are not separately
assessed, Lessee’s liability shall be an equitable proportion of the Real
Property Taxes for all of the land and improvements included within the tax
parcel assessed, such proportion to be conclusively determined by Lessor from
the respective valuations assigned in the assessor’s work sheets or such other
information as may be reasonably available.

10.4              Personal Property Taxes. Lessee shall pay, prior to
delinquency, all taxes assessed against and levied upon Lessee Owned
Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and
all personal property of Lessee. When possible, Lessee shall cause its Lessee
Owned Alterations and Utility Installations, Trade Fixtures, furnishings,
equipment and all other personal property to be assessed and billed separately from
the real property of Lessor. If any of Lessee’s said property shall be assessed
with Lessor’s real property, Lessee shall pay Lessor the taxes attributable to
Lessee’s property within 10 days after receipt of a written statement setting
forth the taxes applicable to Lessee’s property.

11.                    Utilities and Services. Lessee shall pay for all water, gas,
heat, light, power, telephone, trash disposal and other utilities and services
supplied to the Premises, together with any taxes thereon. If any such services
are not separately metered or billed to Lessee, Lessee shall pay a reasonable
proportion, to be determined by Lessor, of all charges jointly metered or
billed. There shall be no abatement of rent and Lessor shall not be liable in
any respect whatsoever for the inadequacy, stoppage, interruption or
discontinuance of any utility or service due to riot, strike, labor dispute,
breakdown, accident, repair or other cause beyond Lessor’s reasonable control
or in cooperation with governmental request or directions.

12.                    Assignment and Subletting.

12.1              Lessor’s Consent Required.

(a)                    Lessee shall
not voluntarily or by operation of law assign, transfer, mortgage or encumber
(collectively, “assign or assignment”) or sublet all or any part of Lessee’s
interest in this Lease or in the Premises without Lessor’s prior written
consent, which consent shall not be unreasonably withheld, conditioned or
delayed: provided, however, that Lessee may assign its interest in this Lease
or sublet a portion of the Premises, without obtaining Lessor’s prior written
consent, to an entity that acquires substantially all of the assets of Lessee
or to an entity resulting from a merger or consolidation or to an entity that
has a controlling interest in Lessee provided that such transfer is for a bona
fide purpose and not principally for transferring Lessee’s leasehold estate.

(b)                   Unless Lessee
is a corporation and its stock is publicly traded on a national stock exchange,
a change in the control of Lessee shall constitute an assignment requiring
consent. The transfer, on a cumulative basis, of 25% or more of the voting
control of Lessee shall constitute a change in control for this purpose.

(c)                    The
involvement of Lessee or its assets in any transaction, or series of
transactions (by way of merger, sale, acquisition, financing, transfer, leveraged
buy-out or otherwise), whether or not a formal assignment or hypothecation of
this Lease or Lessee’s assets occurs, which results or will result in a
reduction of the Net Worth of Lessee by an amount greater than 25% of such Net
Worth as it was represented at the time of the execution of this Lease or at
the time of the most recent assignment to which Lessor has consented, or as it
exists immediately prior to said transaction or transactions constituting such
reduction, whichever was or is greater, shall be considered an assignment of
this Lease to which Lessor may withhold its consent. “Net Worth of Lessee” shall mean the tangible net worth of
Lessee (excluding any guarantors) established under generally accepted
accounting principles.

(d)                   An assignment
or subletting without consent shall, at Lessor’s option, be a Default curable
after notice per Paragraph 13.1(c), or a noncurable Breach without the
necessity of any notice and grace period. If Lessor elects to treat such
unapproved assignment or subletting as a noncurable Breach, Lessor may
terminate this Lease.

(e)                    Lessee’s
remedy for any breach of Paragraph 12.1 by Lessor shall be limited to
compensatory damages and/or injunctive relief.

(f)                      Lessor may
reasonably withhold consent to a proposed assignment or subletting if Lessee is
in Default at the time consent is requested.

(g)                   Notwithstanding
the foregoing, allowing a de minimis portion of the Premises, ie. 20 square
feet or less, to be used by a third party vendor in connection with the
installation of a vending machine or payphone shall not constitute a
subletting.

12.2              Terms and Conditions Applicable to Assignment and Subletting.

(a)                    Regardless of
Lessor’s consent, no assignment or subletting shall: (i) be effective without
the express written assumption by such assignee or sublessee of the obligations
of Lessee under this Lease, (ii) release Lessee of any obligations hereunder,
or (iii) after the primary liability of Lessee for the payment of Rent or for
the performance of any other obligations to be performed by Lessee.

(b)                   Lessor may
accept Rent or performance of Lessee’s obligations from any person other than
Lessee pending approval or disapproval of the assignment. Neither a delay in
the approval or disapproval of such assignment nor the acceptance of Rent or
performance shall constitute a waiver or estoppel of Lessor’s right to exercise
its remedies for Lessee’s Default or Breach.

 10
 

(c)                    Lessor’s
consent to any assignment or subletting shall not constitute a consent to any
subsequent assignment or subletting.

(d)                   In the event of
any Default or Breach by Lessee, Lessor may proceed directly against Lessee,
any Guarantors or anyone else responsible for the performance of Lessee’s
obligations under this Lease, including any assignee or sublessee, without
first exhausting Lessor’s remedies against any other person or entity
responsible therefor to Lessor, or any security held by Lessor.

(e)                    Each request
for consent to an assignment or subletting shall be in writing, accompanied by
information relevant to Lessor’s determination as to the financial and
operational responsibility and appropriateness of the proposed assignee or
sublessee, including but not limited to the intended use and/or required
modification of the Premises, if any, together with a fee of $500 as
consideration for Lessor’s considering and processing said request. Lessee
agrees to provide Lessor with such other or additional information and/or
documentation as may be reasonably requested. (See also Paragraph 36)

(f)                      Any assignee
of, or sublessee under, this Lease shall, by reason of accepting such
assignment, entering into such sublease, or entering into possession of the
Premises or any portion thereof, be deemed to have assumed and agreed to conform
and comply with each and every term, covenant, condition and obligation herein
to be observed or performed by Lessee during the term of said assignment or
sublease, other than such obligations as are contrary to or inconsistent with
provisions of an assignment or sublease to which Lessor has specifically
consented to in writing.

(g)                   Lessor’s
consent to any assignment or subletting shall not transfer to the assignee or
sublessee any Option granted to the original Lessee by this Lease unless such
transfer is specifically consented to by Lessor in writing. (See Paragraph
39.2)

12.3              Additional Terms and Conditions Applicable to
Subletting. The following terms and conditions shall apply to any
subletting by Lessee of all or any part of the Premises and shall be deemed
included in  all subleases under
this Lease whether or not expressly incorporated therein:

(a)                    Lessee hereby
assigns and transfers to Lessor all of Lessee’s interest in all Rent payable on
any sublease, and Lessor may collect such Rent and apply same toward Lessee’s
obligations under this Lease; provided, however, that until  a Breach shall occur in the performance of
Lessee’s obligations, Lessee may collect said Rent. In  the event that the amount collected by
Lessor exceeds Lessee’s then outstanding obligations any such excess shall be
refunded to Lessee. Lessor shall not, by reason of the foregoing or any
assignment of such sublease, nor by reason of the collection of Rent, be deemed
liable to the sublessee for any failure of Lessee to perform and comply with
any of Lessee’s obligations to such sublessee. Lessee hereby irrevocably
authorizes and directs any such sublessee, upon receipt of a written notice
from Lessor stating that a Breach exists in the performance of Lessee’s
obligations under this Lease, to pay to Lessor all Rent due and to become due
under the sublease. Sublessee shall rely upon any such notice from Lessor and
shall pay all Rents to Lessor without any obligation or right to inquire as to
whether such Breach exists, notwithstanding any claim from Lessee to the
contrary.

(b)                   In the event of
a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to
Lessor, in which event Lessor shall undertake the obligations of the sublessor
under such sublease from the time of the exercise of said option to the
expiration of such sublease; provided, however, Lessor shall not be liable for
any prepaid rents or security deposit paid by such sublessee to such sublessor
or for any prior Defaults or Breaches of such sublessor.

(c)                    Any matter
requiring the consent of the sublessor under a sublease shall also require the
consent of Lessor.

(d)                   No sublessee
shall further assign or sublet all or any part of the Premises without Lessor’s
prior written consent.

13.                    Default; Breach; Remedies.

13.1              Default; Breach. A “Default” is defined as a failure by the
Lessee to comply with or perform any of the terms, covenants, conditions or
Rules and Regulations under this Lease. A “Breach”
is defined as the occurrence of one or more of the following Defaults,
and the failure of Lessee to cure such Default within any applicable grace
period:

(a)                    The
abandonment of the Premises; or the vacating of the Premises without providing
a commercially reasonable level of security, or where the coverage of the property
insurance described in Paragraph 8.3 is jeopardized as a result thereof, or
without providing reasonable assurances to minimize potential vandalism.

(b)                   The failure of
Lessee to make any payment of Rent or any Security Deposit required to be made
by Lessee hereunder, whether to Lessor or to a third party, when due within
five (5) days after written notice from Lessor of such failure to pay on the
due date: provided, however, that if in any consecutive twelve (12) month
period, Lessee shall, on two (2) separate occasions, fail to pay any
installment of Rent on the date such installment of Rent is due, then, on the
third such occasion and on each occasion thereafter on which Lessee shall fail
to pay an installment of Rent on the date such installment of Rent is due,
Lessor shall be relieved from any obligation to provide notice to Lessee, and
Lessee shall then no longer have a five (5) day period in which to cure any
such failure.

(c)                    The failure of
Lessee to pay the Security Deposit or to provide reasonable evidence of
insurance or surety bond, or to fulfill any obligation under this Lease which
endangers or threatens life or property, where such failure continues for a
period of 5 business days following written notice to Lessee.

(d)                   The commission
of waste, act or acts constituting public or private nuisance, and/or an
illegal activity on the Premises by Lessee where such  actions continue for a period of 3 business days following
written notice to Lessee.

(e)                    The failure by
Lessee to provide (i) reasonable written evidence of compliance with Applicable
Requirements, (ii) the service contracts, (iii)
the rescission of an unauthorized assignment or subletting, (iv) an
Estoppel Certificate, (v) a requested subordination, (vi)  evidence concerning any guaranty and/or
Guarantor, (vii) any document requested under Paragraph 42, (viii) material
safety data sheets (MSDS), or (ix) any other documentation or information which
Lessor may reasonably require
of Lessee under the terms of this Lease, where any such failure continues for a
period of 15 days following written notice to Lessee.

(f)                      A Default by
Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under Paragraph 40 hereof, other than those
described in subparagraphs 13.1(a), (b), (c) or (d), above, where such Default continues for a period of 30
days after written notice; provided, however, that if the nature of Lessee’s
Default is such that more than 30 days are reasonably required for its cure, then
it shall not be deemed to be
a Breach if Lessee commences
such cure within said 30 day period and thereafter diligently prosecutes such
cure to completion.

(g)                   The occurrence
of any of the following events: (i) the  making
of any general arrangement or  assignment
for the benefit of creditors; (ii) becoming a “debtor”
as defined in 11 U.S.C. §101 or any successor statute thereto (unless, in the
case of a petition filed against Lessee, the same is dismissed within 60 days);
(iii) the appointment of a trustee or receiver to take possession of
substantially all of Lessee’s assets located at

 11
 

the Premises or of Lessee’s interest in this Lease,
where possession is not restored to Lessee within 30 days; or (iv) the
attachment, execution or other judicial seizure of substantially all of Lessee’s
assets located at the Premises or of Lessee’s interest in this Lease, where
such seizure is not discharged within 30 days; provided, however, in the event that any provision of
this subparagraph is contrary to any applicable law, such provision shall be of
no force or effect, and not affect the validity of the remaining provisions.

(h)                   The discovery
that any financial statement of Lessee or of any Guarantor given to Lessor was
materially false.

(i)                       If the
performance of Lessee’s obligations under this Lease is guaranteed: (i) the
death of a Guarantor, (ii) the termination of a Guarantor’s liability with
respect to this Lease other than in accordance with the terms of such guaranty,
(iii) a Guarantor’s becoming insolvent or the subject of a bankruptcy filing,
(iv) a Guarantor’s refusal to honor the guaranty, or (v) a Guarantor’s breach
of its guaranty obligation on an anticipatory basis, and Lessee’s failure,
within 60 days following written notice of any such event, to provide written
alternative assurance or security, which, when coupled with the then existing
resources of Lessee, equals or exceeds the combined financial resources of
Lessee and the Guarantors that existed at the time of execution of this Lease.

13.2              Remedies.
If Lessee fails to perform any of its affirmative duties or obligations, within
10 days after written notice (or in case of an emergency, without notice),
Lessor may, at its option, perform such duty or obligation on Lessee’s behalf,
including but not limited to the obtaining of reasonably required bonds,
insurance policies, or governmental licenses, permits or approvals. Lessee
shall pay to Lessor an amount equal to 115% of the costs and expenses incurred
by Lessor in such performance upon receipt of an invoice therefor. In the event
of a Breach, Lessor may, with or without further notice or demand, and without
limiting Lessor in the exercise of any right or remedy which Lessor may have by
reason of such Breach:

(a)                    Terminate
Lessee’s right to possession of the Premises by any lawful means, in which case
this Lease shall terminate and Lessee shall immediately surrender possession to
Lessor. In such event Lessor
shall be  entitled to recover from Lessee: (i) the unpaid Rent
which had been earned at the time of termination; (ii) the worth at the time of
award of the amount by which the unpaid rent which would have been earned after
termination until the time of award exceeds the amount of such rental loss that
the Lessee proves could have been reasonably avoided; (iii) the worth at the
time of award of the amount by which the unpaid rent for the balance of the
term after the time of award exceeds the amount of such rental loss that the
Lessee proves could be reasonably avoided; and (iv) any other amount necessary
to compensate Lessor for all the detriment proximately caused by the Lessee’s
failure to perform its obligations under this Lease or which in the ordinary
course of things would be likely to result therefrom, including but not limited
to the cost of recovering possession of the Premises, expenses of reletting,
including necessary renovation and alteration of the Premises, reasonable
attorneys’ fees, and that portion of any leasing commission paid by Lessor in
connection with this Lease applicable to the unexpired term of this Lease. The
worth at the time of award of the amount referred to in provision (iii) of the
immediately preceding sentence shall be computed by discounting such amount at
the discount rate of the Federal Reserve Bank of the District within which the
Premises are located at the time of award plus one percent. Efforts by Lessor
to mitigate damages caused by Lessee’s Breach of this Lease shall not waive
Lessor’s right to recover damages under Paragraph 12. If termination of this
Lease is obtained through the provisional remedy of unlawful detainer, Lessor
shall have the right to recover in such proceeding any unpaid Rent and damages
as are recoverable therein, or Lessor may reserve the right to recover all or
any part thereof in a separate suit. If a notice and grace period required
under Paragraph 13.1 was not previously given, a notice to pay rent or quit, or
to perform or quit given to Lessee under the unlawful detainer statute shall
also constitute the notice required by Paragraph 13.1. In such case, the applicable
grace period required by Paragraph 13.1 and the unlawful detainer statute shall
run concurrently, and the failure of Lessee to cure the Default within the
greater of the two such grace periods shall constitute both an unlawful
detainer and a Breach of this Lease entitling Lessor to the remedies provided
for in this Lease and/or by said statute.

(b)                   Continue the
Lease and Lessee’s right to possession and recover the Rent as it becomes due,
in which event Lessee may sublet or assign, subject only to reasonable
limitations. Acts of maintenance, efforts to relet, and/or the appointment of a
receiver to protect the Lessor’s interests, shall not constitute a termination
of the Lessee’s right to possession.

(c)                    Pursue any
other remedy now or hereafter available under the laws or judicial decisions of
the state wherein the Premises are located. The expiration or termination of
this Lease and/or the termination of Lessee’s right to possession shall not
relieve Lessee from liability under any indemnity provisions of this Lease as
to matters occurring or accruing during the term hereof or by reason of Lessee’s
occupancy of the Premises.

13.4              Late Charges. Lessee hereby acknowledges that late
payment by Lessee of Rent will cause Lessor to incur costs not contemplated by
this Lease, the exact amount of which will be extremely difficult to ascertain.
Such costs include, but are not limited to, processing and accounting charges, and late charges which  may be imposed upon Lessor by any
Lender. Accordingly, if any Rent shall not be received by Lessor within 5 days
after such amount shall be due, then, without any requirement for notice to
Lessee, Lessee shall immediately pay to Lessor a one-time late charge equal to
5% of each such overdue amount or $100, whichever is greater. The Parties
hereby agree that such late charge represents a fair and reasonable estimate of
the costs Lessor will incur by reason of such late payment. Acceptance of such
late charge by Lessor shall in no event constitute a waiver of Lessee’s Default
or Breach with respect to such overdue amount, nor prevent the exercise of any
of the other rights and remedies granted hereunder. In the event that a late
charge is payable hereunder, whether or not collected, for 3 consecutive
installments of Base Rent, then notwithstanding any provision of this Lease to
the contrary, Base Rent shall, at Lessor’s option, become due and payable
quarterly in advance.

13.5              Interest. Any monetary payment due Lessor
hereunder, other than late charges, not received by Lessor, when due as to
scheduled payments (such as Base Rent) or within 30 days following the date on
which it was due for non-scheduled payment, shall bear interest from the date
when due, as to scheduled payments, or the 31st day after it was due as non-scheduled
payments. The interest (“Interest”)
charged shall be computed at the rate of 10% per annum but shall not exceed the
maximum rate allowed by law. Interest is payable in addition to the potential
late charge provided for in Paragraph 13.4.

13.6              Breach by Lessor.

(a)                    Notice of Breach. Lessor shall not be deemed in breach of
this Lease unless Lessor fails within a reasonable time to perform

 12
 

an obligation required to be performed by Lessor. For
purposes of this Paragraph, a reasonable time shall in no event be less than 30
days after receipt by Lessor, and any Lender whose name and address shall have
been furnished Lessee in writing for such purpose, of written notice specifying
wherein such obligation of Lessor has not been performed; provided, however, that
if the nature of Lessor’s obligation is such that more than 30 days are
reasonably required for its performance, then Lessor shall not be in breach if
performance is commenced within such 30 day period and thereafter diligently
pursued to completion.

14.                    Condemnation. If the Premises or any portion thereof are
taken under the power of eminent domain or sold under the threat of the
exercise of said power (collectively “Condemnation”),
this Lease shall terminate as to the part taken as of the date the condemning
authority takes title or possession, whichever first occurs. If more than 25%
of that portion of the Premises not occupied by any building, is taken by
Condemnation, or if the remaining portion of the Premises (after the
Condemnation) is not reasonably sufficient for Lessee’s Agreed Use of the
entire Premises, Lessee may, at Lessee’s option, to be exercised in writing
within 10 days after Lessor shall have given Lessee written notice of such
taking (or in the absence of such notice, within 10 days after the condemning
authority shall have taken possession) terminate this Lease as of the date the
condemning authority takes such possession. If more than 10% of the rentable
square footage of a given Building is taken by Condemnation, then this Lease shall
terminate only with respect to the impacted Building (and there shall
automatically be a pro rata adjustment to the Rent due and owing under this
Lease from and after such termination based on the revised square footage of
the Premises), but the Lease shall remain in full force and effect with respect
to the other Buildings. If Lessee does not terminate this Lease in accordance
with the foregoing, this Lease shall remain in full force and effect as to the
portion of the Premises remaining, except that the Base Rent shall be reduced
in proportion to the reduction in utility of the Premises caused by such
Condemnation. Condemnation awards and/or payments shall be the property of
Lessor, whether such award shall be made as compensation for diminution in value
of the leasehold, the value of the part taken, or for severance damages;
provided, however, that Lessee shall be entitled to any compensation paid by
the condemnor for Lessee’s relocation expenses, loss of business goodwill
and/or Trade Fixtures, without regard to whether or not this Lease is
terminated pursuant to the provisions of this Paragraph. All Alterations and
Utility Installations made to the Premises by Lessee, for purposes of
Condemnation only, shall be considered the property of the Lessee and Lessee
shall be entitled to any and all compensation which is payable therefor. In the
event that this Lease is not terminated by reason of the Condemnation, Lessor
shall repair any damage to the Premises caused by such Condemnation.

16.                    Estoppel Certificates.

(a)                    Each Party (as
“Responding Party”) shall within 15 days
after written notice from the other Party (the “Requesting
Party”) execute, acknowledge and deliver to the Requesting Party a
statement in writing in form similar to the then most current “Estoppel Certificate” form published by the
AIR Commercial Real Estate Association, plus such additional information,
confirmation and/or statements as may be reasonably requested by the Requesting
Party.

(b)                   If the
Responding Party shall fail to execute or deliver the Estoppel Certificate
within such 15 day period, the Requesting Party may execute an Estoppel
Certificate stating that: (i) the Lease is in full force and effect without
modification except as may be represented by the Requesting Party, (ii) there
are no uncured defaults in the Requesting Party’s performance, and (iii) if
Lessor is the Requesting Party, not more than one month’s rent has been paid in
advance. Prospective purchasers and encumbrancers may rely upon the Requesting
Party’s Estoppel Certificate, and the Responding Party shall be estopped from
denying the truth of the facts contained in said Certificate.

 13
 

17.                    Definition of Lessor. The term “Lessor” as used herein shall mean the
owner or owners at the time in question of the fee title to the Premises, or,
if this is a sublease, of the Lessee’s interest in the prior lease. In the
event of a transfer of Lessor’s title or interest in the Premises or this
Lease, Lessor shall deliver to the transferee or assignee (in cash or by
credit) any unused Security Deposit held by Lessor. Upon such transfer or
assignment (which assignment shall contain an explicit assumption of Lessor’s
obligations hereunder) and delivery of the Security Deposit, as aforesaid, the
prior Lessor shall be relieved of all liability with respect to the obligations
and/or covenants under this Lease accruing thereafter,. Subject to the
foregoing, the obligations and/or covenants in this Lease to be performed by
the Lessor shall be binding only upon the Lessor as hereinabove defined.

18.                    Severability. The invalidity of any
provision of this Lease, as determined by a court of competent jurisdiction,
shall in no way affect the validity of any other provision hereof.

19.                    Days. Unless otherwise specifically
indicated to the contrary, the word “days” as used in this Lease shall mean and
refer to calendar days.

20.                    Limitation on Liability. The obligations of
Lessor under this Lease shall not constitute personal obligations of Lessor or
its partners, members, directors, officers or shareholders, and Lessee shall
look to the Premises, and to no other assets of Lessor, for the satisfaction of
any liability of Lessor with respect to this Lease, and shall not seek recourse
against Lessor’s partners, members, directors, officers or shareholders, or any
of their personal assets for such satisfaction.

21.                    Time of Essence. Time is of the essence
with respect to the performance of all obligations to be performed or observed
by the Parties under this Lease.

22.                    No Prior or Other Agreements;  Broker Disclaimer. This Lease contains all
agreements between the Parties with respect to any matter mentioned herein, and
no other prior or contemporaneous agreement or understanding shall be
effective. Lessor and Lessee each represents and warrants to the Brokers that
it has made, and is relying solely upon, its own investigation as to the
nature, quality, character and financial responsibility of the other Party to
this Lease and as to the use, nature, quality and character of the Premises.
Brokers have no responsibility with respect thereto or with respect to any
default or breach hereof by either Party.

23.                    Notices.

23.1              Notice Requirements. All notices required
or permitted by this Lease or applicable law shall be in writing and may be
delivered in person (by hand or by courier) or may be sent by regular,
certified or registered mail or U.S. Postal Service Express Mail, with postage
prepaid, or by facsimile transmission, and shall be deemed sufficiently given
if served in a manner specified in this Paragraph 23. The addresses noted
adjacent to a Party’s signature on this Lease shall be that Party’s address for
delivery or mailing of notices. Either Party may be written notice to the other
specify a different address for notice, except that upon Lessee’s taking possession
of the Premises, the Premises shall constitute Lessee’s address for notice. A
copy of all notices to Lessor shall be concurrently transmitted to such party
or parties at such addresses as Lessor may from time to time hereafter
designate in writing. A copy of any notice delivered to Lessor shall also be
sent to (i) First Industrial Realty Trust, Inc., 311 South Wacker Drive, Suite
4000, Chicago, Illinois 60606, Attn: Executive Vice President-Operations; and
(ii) before May 25, 2007: Barack Ferrazzano Kirschbaum Periman & Nagelberg
LLP, 333 West Wacker Drive, Suite 2700, Chicago, Illinois 60606, Attn: Suzanne
Bessette-Smith, or after May 25, 2007: Barack Ferrazzano Kirschbaum &
Nagelberg LLP, 200 West Madison Street, Suite 3900, Chicago, Illinois 60606,
Attn: Suzanne Bessette-Smith.

23.2              Date of Notice. Any notice sent by
registered or certified mail, return receipt requested, shall be deemed given
on the date of delivery shown on the receipt card, or if no delivery date is
shown, the postmark thereon. If sent by regular mail the notice shall be deemed
given 72 hours after the same is addressed as required herein and mailed with
postage prepaid. Notices delivered by United States Express Mail or overnight
courier that guarantee next day delivery shall be deemed given 24 hours after
delivery of the same to the Postal Service or courier. Notices transmitted by
facsimile transmission or similar means shall be deemed delivered upon
telephone confirmation of receipt (confirmation report from fax machine is sufficient),
provided a copy is also delivered via delivery or mail. If notice is received
on a Saturday, Sunday or legal holiday, it shall be deemed received on the next
business day.

24.                    Waivers.

(a)                    No waiver by
Lessor of the Default or Breach of any term, covenant or condition hereof by
Lessee, shall be deemed a waiver of any other term, covenant or condition
hereof, or of any subsequent Default or Breach by Lessee of the same or of any
other term, covenant or condition hereof. Lessor’s consent to, or approval of,
any act shall not be deemed to render unnecessary the obtaining of Lessor’s
consent to, or approval of, any subsequent or similar act by Lessee, or be
construed as the basis of an estoppel to enforce the provision or provisions of
this Lease requiring such consent.

(b)                   The acceptance
of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any
payment by Lessee may be accepted by Lessor on account of moneys or damages due
Lessor, notwithstanding any qualifying statements or conditions made by Lessee
in connection therewith, which such statements and/or conditions shall be of no
force or effect whatsoever unless specifically agreed to in writing by Lessor
at or before the time of deposit of such payment.

(c)                    THE PARTIES
AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL MATTERS
RELATED THERETO AND HEREBY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE
STATUTE TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THIS LEASE.

 14
 

26.                    No Right To Holdover. Lessee has no right to retain
possession of the Premises or any part thereof beyond the expiration or
termination of this Lease. In the event that Lessee holds over, then the Base
Rent shall be increased to 125% of the Base Rent applicable immediately
preceding the expiration or termination. Nothing contained herein shall be
construed as consent by Lessor to any holding over by Lessee.

27.                    Cumulative Remedies.
No remedy or election hereunder shall be deemed exclusive but shall, wherever
possible, be cumulative with all other remedies at law or in equity.

28.                    Covenants and Conditions; Construction of Agreement. All provisions of this Lease to
be observed or performed by Lessee are both covenants and conditions. In
construing this Lease, all headings and titles are for the convenience of the
Parties only and shall not be considered a part of this Lease. Whenever
required by the context, the singular shall include the plural and vice versa.
This Lease shall not be construed as if prepared by one of the Parties, but
rather according to its fair meaning as a whole, as if both Parties had
prepared it.

29.                    Binding Effect; Choice of Law. This Lease shall be binding upon the Parties, their personal
representatives, successors and assigns and be governed by the laws of the
State in which the Premises are located. Any litigation between the Parties
hereto concerning this Lease shall be initiated in the county in which the
Premises are located.

30.                    Subordination; Attornment; Non-Disturbance.

30.1             Subordination. This Lease and any Option granted
hereby shall be subject and subordinate to any ground lease, mortgage, deed of
trust, or other hypothecation or security device (collectively, “Security Device”), now or hereafter placed upon the
Premises, to any and all advances made on the security thereof, and to all
renewals, modifications, and extensions thereof. Lessee agrees that the holders
of any such Security Devices (in this Lease together referred to as “Lender”) shall have no liability or obligation to perform
any of the obligations of Lessor under this Lease. Any Lender may elect to have
this Lease and/or any Option granted hereby superior to the lien of its
Security Device by giving written notice thereof to Lessee, whereupon this
Lease and such Options shall be deemed prior to such Security Device,
notwithstanding the relative dates of the documentation or recordation thereof.

30.2             Attornment. In the event that Lessor
transfers title to the Premises, or the Premises are acquired by another upon
the foreclosure or termination of a Security Device to which this Lease is
subordinated (i) Lessee shall, subject to the non-disturbance provisions of
Paragraph 30.3, attorn to such new owner, and upon request, enter into a new
lease, containing all of the terms and provisions of this Lease, with such new
owner for the remainder of the term hereof, or, at the election of the new
owner, this Lease will automatically become a new lease between Lessee and such
new owner, for the remainder of the term hereof, and (ii) Lessor shall
thereafter be relieved of any further obligations hereunder and such new owner
shall assume all of Lessor’s obligations, except that such new owner shall not:
(a) be liable for any act or omission of any prior lessor or with respect to
events occurring prior to acquisition of ownership; (b) be subject to any
offsets or defenses which Lessee might have against any prior lessor, (c) be
bound by prepayment of more than one month’s rent, or (d) be liable for the
return of any security deposit paid to any prior lessor unless such Security
Deposit was delivered to the new owner.

30.3             Non-Disturbance.
With respect to Security Devices entered into by Lessor after the execution of
this Lease, Lessee’s subordination of this Lease shall be subject to receiving
a commercially reasonable non-disturbance agreement (a “Non-Disturbance
Agreement”) from the Lender which Non-Disturbance Agreement provides
that Lessee’s possession of the Premises, and this Lease, including any options
to extend

 15
 

the term hereof, will not be disturbed so long as
Lessee is not in Breach hereof and attorns to the record owner of the Premises.
Further, within 60 days after the execution of this Lease. Lessor shall, if
requested by Lessee, use its commercially reasonable efforts to obtain a
Non-Disturbance Agreement from the holder of any pre-existing Security Device
which is secured by the Premises.

30.4             Self-Executing. The agreements contained in
this Paragraph 30 shall be effective without the execution of any further
documents; provided, however, that, upon written request from Lessor or a
Lender in connection with a sale, financing or refinancing of the Premises,
Lessee and Lessor shall execute such further writings as may be reasonably
required to separately document any subordination, attornment and/or
Non-Disturbance Agreement provided for herein.

31.                    Attorneys’ Fees. if any Party or Broker brings an action or
proceeding involving the Premises whether founded in tort, contract or equity,
or to declare rights hereunder, the Prevailing Party (as hereafter defined) in
any such proceeding, action, or appeal thereon, shall be entitled to reasonable
attorneys’ fees. Such fees may be awarded in the same suit or recovered in a
separate suit, whether or not such action or proceeding is pursued to decision
or judgment. The term, “Prevailing Party”
shall include, without limitation, a Party or Broker who substantially obtains
or defeats the relief sought, as the case may be, whether by compromise,
settlement, judgment, or the abandonment by the other Party or Broker of its
claim or defense. The attorneys’ fees award shall not be computed in accordance
with any court fee schedule, but shall be such as to fully reimburse all
attorneys’ fees reasonably incurred.

32.                    Lessor’s Access; Showing Premises; Repairs. Lessor and
Lessor’s agents shall have the right to enter the Premises at any time, in the
case of an emergency, and otherwise at reasonable times after reasonable prior
notice for the purpose of showing the same to prospective purchasers, lenders,
or tenants, and making such alterations, repairs, improvements or additions to
the Premises as Lessor may deem necessary or desirable and the erecting, using
and maintaining of utilities, services, pipes and conduits through the Premises
and/or other premises as long as there is no material adverse effect to Lessee’s
use of the Premises. All such activities shall be without abatement of rent or
liability to Lessee.

33.                    Auctions. Lessee
shall not conduct, nor permit to be conducted, any auction upon the Premises
without Lessor’s prior written consent. Lessor shall not be obligated to
exercise any standard of reasonableness in determining whether to permit an
auction.

34.                    Signs.
Lessor may place on the Premises ordinary “For Sale”
signs at any time and ordinary “For Lease”
signs during the last 6 months of the term hereof. Except for ordinary “for
sublease” signs, Lessee shall not place any sign upon the Premises without
Lessor’s prior written consent. All signs must comply with all Applicable
Requirements.

35.                    Termination;  Merger. Unless
specifically stated otherwise in writing by Lessor, the voluntary or other
surrender of this Lease by Lessee, the mutual termination or cancellation
hereof, or a termination hereof by Lessor for Breach by Lessee, shall
automatically terminate any sublease or lesser estate in the Premises;
provided, however, that Lessor may elect to continue any one or all existing
subtenancies. Lessor’s failure within 10 days following any such event to elect
to the contrary by written notice to the holder of any such lesser interest,
shall constitute Lessor’s election to have such event constitute the
termination of such interest.

36.                    Consents. Except as otherwise provided herein, wherever in
this Lease the consent of a Party is required to an act by or for the other
Party, such consent shall not be unreasonably withheld or delayed. Lessor’s
actual reasonable costs and expenses (including but not limited to architects’,
attorneys’, engineers’ and other consultants’ fees) incurred in the
consideration of or response to, a request by Lessee for any Lessor consent,
including but not limited to consents to an assignment, a subletting or the
presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt
of an invoice and supporting documentation therefor. Lessor’s consent to any
act, assignment or subletting shall not constitute an acknowledgment that no
Default or Breach by Lessee of this Lease exists, nor shall such consent be
deemed a waiver of any then existing Default or Breach, except as may be
otherwise specifically stated in writing by Lessor at the time of such consent.
The failure to specify herein any particular condition to Lessor’s consent
shall not preclude the imposition by Lessor at the time of consent of such
further or other conditions as are then reasonable with reference to the
particular matter for which consent is being given. In the event that either
Party disagrees with any determination made by the other hereunder and
reasonably requests the reasons for such determination, the determining party shall
furnish its reasons in writing and in reasonable detail within 10 business days
following such request.

37.                    Guarantor.

37.1             Execution. The
Guarantor shall execute a guaranty in the form attached to the Rider and such
Guarantor shall have the same obligations as Lessee under this Lease.

37.2.          Default. It shall
constitute a Default of the Lessee if Guarantor fails or refuses, upon request
to provide: (a) evidence of the execution of the guaranty, including the
authority of the party signing on Guarantor’s behalf to obligate Guarantor, and
in the case of a corporate Guarantor, a certified copy of a resolution of its
board of directors authorizing the making of such guaranty, (b) current
financial statements, (c) an Estoppel Certificate, or (d) written confirmation
that the guaranty is still in effect.

38.                    Quiet
Possession. Subject to payment by Lessee of the Rent and performance of all
of the covenants, conditions and provisions on Lessee’s part to be observed and
performed under this Lease, Lessee shall have quiet possession and quiet
enjoyment of the Premises during the term hereof.

39.                    Options.
If Lessee is granted an Option, as defined below, then the following provisions
shall apply.

39.1             Definition.  “Option” shall mean: (a) the right to
extend the term of or renew this Lease or to extend or renew any lease that

 16
 

Lessee has on other property of Lessor; (b) the right
of first refusal or first offer to lease either the Premises or other property
of Lessor; (c) the right to purchase or the right of first refusal to purchase
the Premises or other property of Lessor.

39.3             Multiple
Options. In the event
that Lessee has any multiple Options to extend or renew this Lease, a later
Option cannot be exercised unless the prior Options have been validly
exercised.

39.4             Effect of
Default on Options.

(a)                    Lessee shall
have no right to exercise an Option: (i) during the period commencing with the
giving of any notice of Default and continuing until said Default is cured,
(ii) during the period of time any Rent is unpaid (without regard to whether
notice thereof is given Lessee), (iii) during the time Lessee is in Breach of
this Lease, or (iv) in the event that Lessee has been given 3 or more notices
of separate Default, whether or not the Defaults are cured, during the 12 month
period immediately preceding the exercise of the Option.

(b)                   The period of
time within which an Option may be exercised shall not be extended or enlarged
by reason of Lessee’s inability to exercise an Option because of the provisions
of Paragraph 39.4(a).

(c)                    An Option
shall terminate and be of no further force or effect, notwithstanding Lessee’s
due and timely exercise of the Option, if, after such exercise and prior to the
commencement of the extended term or completion of the purchase, (i) Lessee fails
to pay Rent for a period of 30 days after such Rent becomes due (provided
Lessor has provided Lessee with written notice of such failure to pay Rent), or
(ii) if Lessee commits a Breach of this Lease.

40.                    Multiple Buildings.
If the Premises are a part of a group of buildings controlled by Lessor, Lessee
agrees that it will abide by and conform to all reasonable rules and
regulations which Lessor may make from time to time for the management, safety,
and care of said properties, including the care and cleanliness of the grounds
and including the parking, loading and unloading of vehicles, and to cause its
employees, suppliers, shippers, customers, contractors and invitees to so abide
and conform.

41.                    Security Measures.
Lessee hereby acknowledges that the Rent payable to Lessor hereunder does not
include the cost of guard service or other security measures, and that Lessor
shall have no obligation whatsoever to provide same. Lessee assumes all
responsibility for the protection of the Premises, Lessee, its agents and
invitees and their property from the acts of third parties.

42.                    Reservations.
Lessor reserves to itself the right, from time to time, to grant, without the
consent or joinder of Lessee, such easements, rights and dedications that
Lessor deems necessary, and to cause the recordation of parcel maps and
restrictions, so long as such easements, rights, dedications, maps and
restrictions do not unreasonably interfere with the use of the Premises by
Lessee. Lessee agrees to sign any documents reasonably requested by Lessor to
effectuate any such easement rights, dedication, map or restrictions.

43.                    Performance Under Protest.
If at any time a dispute shall arise as to any amount or sum of money to be
paid by one Party to the other under the provisions hereof, the Party against
whom the obligation to pay the money is asserted shall have the right to make
payment “under protest” and such payment shall not be regarded as a voluntary
payment and there shall survive the right on the part of said Party to institute
suit for recovery of such sum. If it shall be adjudged that there was no legal
obligation on the part of said Party to pay such sum or any part thereof, said
Party shall be entitled to recover such sum or so much thereof as it was not
legally required to pay. A Party who does not initiate suit for the recovery of
sums paid “under protest” with 6 months shall be deemed to have waived its
right to protest such payment.

44.                    Authority; Multiple Parties; Execution.

(a)                    If either
Party hereto is a corporation, trust, limited liability company, partnership,
or similar entity, each individual executing this Lease on behalf of such
entity represents and warrants that he or she is duly authorized to execute and
deliver this Lease on its behalf. Each Party shall, within 30 days after
request, deliver to the other Party satisfactory evidence of such authority.

(b)                   If this Lease
is executed by more than one person or entity as “Lessee”, each such person or
entity shall be jointly and severally liable hereunder. It is agreed that any
one of the named Lessees shall be empowered to execute any amendment to this
Lease, or other document ancillary thereto and bind all of the named Lessees,
and Lessor may rely on the same as if all of the named Lessees had executed
such document.

(c)                    This Lease may
be executed by the Parties in counterparts, each of which shall be deemed an
original and all of which together shall constitute one and the same
instrument.

45.                    Conflict. Any
conflict between the printed provisions of this Lease and typewritten or
handwritten provisions shall be controlled by the typewritten or handwritten
provisions.

46.                    Offer.
Preparation of this Lease by either Party or their agent and submission of same
to the other Party shall not be deemed an offer to lease to the other Party.
The Lease is not intended to be binding until executed and delivered by all
Parties hereto.

47.                    Amendments.
This Lease may be modified only in writing, signed by the Parties in interest
at the time of the modification. As long as they do not materially change
Lessee’s obligations hereunder, Lessee agrees to make such reasonable
non-monetary modifications to this Lease as may be reasonably required by a
Lender in connection with the obtaining of normal financing or refinancing of
the Premises.

 17
 

49.                    Mediation and Arbitration of Disputes. An Addendum requiring
the Mediation and/or the Arbitration of all disputes between the Parties and/or
Brokers arising out of this Lease o is x is not attached
to this Lease.

50.                    Americans with Disabilities Act. Since compliance with the
Americans with Disabilities Act (ADA) is dependent upon Lessee’s specific use
of the Premises, Lessor makes no warranty or representation as to whether or not
the Premises comply with ADA or any similar legislation. In the event that
Lessee’s use of the Premises requires modifications or additions to the
Premises in order to be in ADA compliance, Lessee agrees to make any such
necessary modifications and/or additions at Lessee’s expense.

LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED
THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION
OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES
HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE
ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND
LESSEE WITH RESPECT TO THE PREMISES.

ATTENTION: NO REPRESNTATION OR
RECOMMENDATION IS MADE BY THE AIR COMMERICAL REAL ESTATE ASSOCIATION OR BY ANY
BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS
LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:

1.                         SEEK
ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.

2.                         RETAIN
APPRORIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES.
SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE
OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY,
THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE
PREMISES FOR LESSEE’S INTENDED USE.

WARNING: IF THE PREMISES IS
LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY
NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES
IS LOCATED.

The parties hereto have executed this Lease at the
place and on the dates specified above their respective signatures.

	
  Executed at: 

  	
   

  	
   

  	
  Executed at: 

  	
   

  
	
  On: 

  	
   

  	
   

  	
  On:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By LESSOR:

  	
   

  	
  By LESSEE:

  
	
  First Industrial, L.P., a Delaware Limited
  partnership

  	
   

  	
  National RV, Inc., a California corporation 

  
	
  By: First Industrial
  Realty Trust, Inc., a Maryland corporation and its sole general partner

  	
   

  	
   

  
	
  By: 

  	
   

  	
   

  	
  By: 

  	
  /s/ Tom Martini

  
	
  Name Printed: 

  	
   

  	
   

  	
  Name Printed:

  	
  Tom Martini

  
	
  Title: 

  	
   

  	
   

  	
  Title: 

  	
  CFO

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name Printed:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Address:

  	
   

  
	
  Address: 

  	
  114 Pacifica, Suite 220

  	
   

  	
   

  	
   

  
	
  Irvine, California 92618

  	
   

  	
  Telephone:

  	
  (      )

  
	
  Telephone:

  	
  (949) 486-1970

  	
   

  	
  Facsimile:

  	
  (      )

  
	
  Facsimile: 

  	
  (949) 486-1971

  	
   

  	
  Federal ID No.

  	
   

  
	
  Federal ID No.

  	
   

  	
   

  	
   

  	
   

  
																										

 

	
  BROKER:

  	
   

  	
  BROKER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attn:

  	
   

  	
   

  	
  Attn:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Telephone: 

  	
  (      )

  	
   

  	
  Telephone: 

  	
  (      )

  
	
  Facsimile: 

  	
  (      )

  	
   

  	
  Facsimile: 

  	
  (      )

  
	
  Federal ID No.

  	
   

  	
   

  	
  Federal ID No.

  	
   

  
														

 

NOTICE: These forms are often modified to meet
changing requirements of law and industry needs. Always write or call to make
sure you are utilizing the most current form: AIR Commerical Real Estate
Association, 800 W 6th Street, Suite 800, Los Angeles, CA 90017. Telephone No. (213)
687-8777. Fax No.: (213)
687-8616.

© Copyright 2001 - By AIR
Commercial Real Estate Association. All Rights reserved.

 18
 

No part
of these works may be reproduced in any form without permission in writing.

 19

RIDER

This
Rider (“Rider”)  is a part of and incorporated into that
certain Standard Industrial/Commercial Single-Tenant Lease-Net (the “Original Lease;” the Original Lease,
together with the Rider, the “Lease”)  dated as of May 18, 2007 by and between
First Industrial, L.P., a Delaware limited partnership (“Lessor”) and
National RV, Inc., a California corporation (“Lessee”)
for the Premises known as 100 W. Sinclair Street, Perris, California.
Capitalized terms used herein and not otherwise defined herein shall have the
meanings ascribed to them in the Original Lease.

1.                          Conflict. If there is a conflict between the terms of this Rider and the
Original Lease, the terms of this Rider shall control.

2.                          Base Rent. Lessee shall pay Base Rent to Lessor in monthly installments, in
advance, on the first day of each and every calendar month during the Original
Term in the amounts and for the periods set forth below:

	
  Lease Period

  	
   

  	
  Monthly Base Rent

  	
   

  
	
  May 18, 2007 – May 31, 2008

  	
   

  	
  $

  	
  80,767.10

  	
   

  
	
  June 1, 2008 – May 31, 2009

  	
   

  	
  $

  	
  83,190.11

  	
   

  
	
  June 1, 2009 – May 31, 2010

  	
   

  	
  $

  	
  85,685.81

  	
   

  
	
  June 1, 2010 – May 31, 2011

  	
   

  	
  $

  	
  88,256.38

  	
   

  
	
  June 1, 2011 – May 31, 2012

  	
   

  	
  $

  	
  90,904.07

  	
   

  
	
  June 1, 2012 – May 31, 2013

  	
   

  	
  $

  	
  93,631.19

  	
   

  
	
  June 1, 2013 – May 31, 2014

  	
   

  	
  $

  	
  96,440.13

  	
   

  
	
  June 1, 2014 – May 31, 2015

  	
   

  	
  $

  	
  99,333.33

  	
   

  
	
  June 1, 2015 – May 31, 2016

  	
   

  	
  $

  	
  102,313.33

  	
   

  
	
  June 1, 2016 –
  May 31, 2017

  	
   

  	
  $

  	
  105,382.73

  	
   

  

 

3.                         Damage

3.1                     Damage Arising Prior to Date of Lease. Notwithstanding anything to the contrary set
forth in the Lease, including, but not limited to Section 9 of the Original
Lease, in the event of any damage or destruction or other casualty to the
Premises (collectively, “Damage”)  that occurred prior to the Commencement
Date, Lessee shall not be permitted to (i) receive any rental abatement or (ii)
terminate the Lease on the basis of such Damage.

3.2                     Completion of Repairs/Restoration. The following shall be added to the end of
Section 9.3 of the Original Lease: “Lessee shall have the right to terminate
the Lease if Lessor fails to substantially complete any repairs or restoration
within one hundred eighty (180) days
following the occurrence of such damage or destruction provided (i) such delay
in Lessor’s

 1
 

completion of the repairs or
restoration is not due to the acts of Lessee or any party within the control of
Lessee or as a result of a labor dispute, public emergency, shortage of fuel,
supplies or labor or any other cause, whether similar or dissimilar, beyond
Lessor’s reasonable control and (ii) Lessee delivers a termination notice to
Lessor prior to the repairs or restoration being substantially completed.”

3.3                     Damage to Particular Building(s). Notwithstanding anything to the contrary set
forth in the Original Lease, each of Building Four and Building Five shall be
regarded independently for purposes of determining Premises Total Destruction.
In the event that the damage or destruction to a particular Building
constitutes Premises Total Destruction, then the Lease shall terminate only
with respect to the impacted Building (and there shall automatically be a pro
rata adjustment to the Rent due and owing under this Lease from and after such
termination based on the revised square footage of the Premises), but the Lease
shall remain in full force and effect with respect to the other Building.

4.                          Financial Information. From time to time during the Term but on no
more than one (1) occasion per calendar year except in connection with (i) a
financing or refinancing of the Premises by Lessor; (ii) a sale by Lessor of
the Premises; or (iii) a Default or Breach by Lessee of the Lease, Lessee shall
deliver to Lessor information and documentation describing and concerning
Lessee’s financial condition, and in form and substance reasonably acceptable
to Lessor, within fifteen (15) business days following Lessor’s written request
therefor. Upon Lessor’s request, Lessee shall provide to Lessor the most
currently available audited financial statement of Lessee; and if no such
audited financial statement is available, then Lessee shall instead deliver to
Lessor its most currently available balance sheet and income statement.
Furthermore, upon the delivery of any such financial information from time to
time during the Term, Lessee shall be deemed to automatically represent and
warrant to Lessor that the financial information delivered to Lessor is true,
accurate and complete, and that there has been no adverse change in the
financial condition of Lessee since the date of the then-applicable financial
information. Lessor shall maintain such financial information in strict
confidence, except that Lessor may disclose such financial information to
Lessor’s lenders and potential buyers provided that they shall maintain such
financial information in strict confidence as well.

5.                         Option
to Renew.

5.1                     Lessee shall have the option (“Renewal Option”) to renew the Lease for
two (2) consecutive terms of sixty (60) months each (each, a “Renewal Term”), on all the same terms and
conditions set forth in the Lease, except that initial Base Rent during each
Renewal Term shall be equal to Fair Market Rent (as defined in Section 5.2 below). Lessee shall deliver
written notice to Lessor of Lessee’s election to exercise the Renewal Option (“Renewal Notice”) not less than six (6)
months, nor more than twelve (12) months, prior to the expiration date of the
Original Term or the then-applicable Renewal Term; and if Lessee fails to
timely deliver the Renewal Notice to Lessor, then Lessee shall automatically be
deemed to have irrevocably waived and relinquished the entire Renewal Option.

5.2                     “Fair Market Rent” shall be determined by Lessor, in its sole,
but good faith, discretion based upon the annual base rental rates then being
charged (as of the date on which Lessee delivers the Renewal Notice) in the
industrial market sector of the geographic area

 2
 

where the buildings are
situated for comparable space and for a lease term commencing on or about the
commencement date of the applicable Renewal Term and equal in duration to the
applicable Renewal Term, taking into consideration: the geographic location,
quality and age of the applicable buildings; the location and configuration of
the relevant space within the applicable building; the extent of service to be
provided to the proposed lessee thereunder; applicable distinctions between “gross”
lease and “net” leases; the creditworthiness and quality of Lessee; leasing
commissions; and any other relevant term or condition in making such
evaluation, as reasonably determined by Lessor. In no event, however (and
notwithstanding any provision to the contrary in Section 5.3 below), shall the Fair Market Rent ever be less
than the rate of Base Rent in effect as of the expiration date of the one (1)
year period immediately preceding the expiration date of the then-applicable
Term (the “Renewal Rent Floor”). Lessor shall notify Lessee of Lessor’s
determination of Fair Market Rent for the applicable Renewal Term, in writing
(the “Base Rent Notice”)  within thirty (30) days after receiving
the applicable Renewal Notice.

5.3                     Lessee shall then have fifteen (15) days after
Lessor’s delivery of the Base Rent Notice in which to advise Lessor, in writing
(the “Base Rent Response Notice”)
whether Lessee (i) is prepared to accept the Fair Market Rent established by
Lessor in the Base Rent Notice and proceed to lease the Premises, during the
applicable Renewal Term, at that Fair Market Rent; or (ii) elects to withdraw
and revoke its Renewal Notice, whereupon the entire Renewal Option shall
automatically be rendered null and void; or (iii) elects to contest Lessor’s
determination of Fair Market Rent. In the event that Lessee fails to timely
deliver the Base Rent Response Notice, then Lessee shall automatically be
deemed to have elected (i) above. Alternatively, if Lessee timely elects (ii),
then the Lease shall expire on the original expiration date of the Original
Term or the first Renewal Term, as the case may be. If, however, Lessee timely
elects (iii), then the following provisions shall apply:

5.3.1    The Fair Market Rent shall
be determined by either the Independent Brokers or the Determining Broker, as
provided and defined below, but in no event shall the Fair Market Rent be less
than the Renewal Rent Floor.

5.3.2    Within fifteen (15) days
after Lessee delivers its Base Rent Response Notice, electing the option provided
in clause (iii) of Section 5.3,
each of Lessor and Lessee shall advise the other, in writing (the “Arbitration Notice”) of both (i) the
identity of the individual that each of Lessor and Lessee, respectively, is
designating to act as Lessor’s or Lessee’s, as the case may be, duly authorized
representative for purposes of the determination of Fair Market Rent pursuant
to this Section 5.3 (the “Representatives”);  and (ii)
a list of three (3) proposed licensed real estate brokers, any of
which may serve as one of the Independent Brokers (collectively, the “Broker Candidates”).  Each Broker Candidate:

(A)          shall be duly licensed in the jurisdiction in which the Premises is
located;

(B)            shall have at least five (5) years’
experience, on a full-time basis, leasing industrial space
(warehouse/distribution/ancillary office) in the same general geographic area
as that in which the Premises is located, and at least three (3) of those
five (5)

 3
 

years of experience shall
have been consecutive and shall have elapsed immediately preceding the date on
which Lessee delivers the Renewal Notice; and

(C)            shall be independent and have no then-pending
(as of the date Lessor or Lessee designates the broker as a Broker Candidate)
brokerage relationship, formal or informal, oral or written, with any or all of
Lessor, Lessee, and any affiliates of either or both of Lessor and Lessee (“Brokerage Relationship”),  nor may there have been any such Brokerage
Relationship at any time during the two (2) year period immediately preceding the
broker’s designation, by Lessor or Lessee, as a Broker Candidate.

5.3.3    Within fifteen (15) days
after each of Lessor and Lessee delivers its Arbitration Notice to the other,
Lessor and Lessee shall cause their respective Representatives to conduct a telephonic
meeting at a mutually convenient time. At that meeting, the two (2)
Representatives shall examine the list of six (6) Broker Candidates and shall
each eliminate two (2) names from the list on a peremptory basis. In order to
eliminate four (4) names, first, the Lessee’s Representative shall eliminate a
name from the list and then the Lessor’s Representative shall eliminate a name
therefrom. The two (2) Representatives shall alternate in eliminating names
from the list of six (6) Broker Candidates in this manner until each of them
has eliminated two (2) names. The two (2) Representatives shall immediately
contact the remaining two (2) Broker Candidates (the “Independent Brokers”),  and
engage them, as behalf of Lessor and Lessee, to determine the Fair Market Rent
in accordance with the provisions of this Section
5.3.

5.3.4    The Independent Brokers
shall determine the Fair Market Rent within thirty (30) days of their
appointment. Lessor and Lessee shall each make a written submission to the
Independent Brokers (no more than ten (10) pages in length, in the aggregate,
per submitting party), advising of the rate that the submitting party believes
should be the Fair Market Rate, together with whatever written evidence or
supporting data that the submitting party desires in order to justify its
desired rate of Fair Market Rent; provided, in all events, however, that the
aggregate maximum length of each party’s submission shall not exceed ten (10)
pages (each such submission package, a “FMR
Submission”).  The Independent
Brokers shall be obligated to choose one (1) of the parties’ specific proposed
rates of Fair Market Rent, without being permitted to effectuate any compromise
position

5.3.5    In the event, however,
that the Independent Brokers fail to reach agreement, within twenty (20) days
after the date on which both Lessor and Lessee deliver the FMR Submissions to
the Independent Brokers (the “Decision
Period”),  as to which
of the two (2) proposed rates of Fair Market Rent should be selected, then,
within five (5) days after the expiration of the Decision Period, the
Independent Brokers shall jointly select a real estate broker who (x) meets all
of the qualifications of a Broker Candidate, but was not included in the
original list of six (6) Broker Candidates; and (y) is not affiliated with any
or all of (A) either or both of the Independent Brokers and (B) the real estate
brokerage companies with which either or both of the Independent Brokers is
affiliated (the “Determining Broker”).
The Independent Brokers shall engage the Determining Broker on behalf of Lessor
and Lessee (but without expense to the Independent Brokers), and shall deliver
the FMR Submissions to the Determining Broker within five (5) days after the
date on which the Independent Brokers select the Determining Broker pursuant to
the preceding sentence (the “Submission
Period”).

 4
 

5.3.6    The Determining Broker
shall make a determination of the Fair Market Rent within twenty (20) days
after the date on which the Submission Period expires. The Determining Broker
shall be required to select one of the parties’ specific proposed rates of Fair
Market Rent, without being permitted to effectuate any compromise position.

5.3.7    The decision of the
Independent Brokers or the Determining Broker, as the case may be, shall be
conclusive and binding on Lessor and Lessee, and neither party shall have any
right to contest or appeal such decision. Judgment may be entered, in a court
of competent jurisdiction, upon the decision of the Independent Brokers or the
Determining Broker, as the case may be.

5.3.8    In the event that the
Original Term or the first Renewal Term, as the case may be, expires and the
subject Renewal Term commences prior to the date on which the Independent
Brokers or the Determining Broker, as the case may be, renders their/its
decision as to the Fair Market Rent, then from the commencement date of the
subject Renewal Term through the date on which the Fair Market Rent is
determined under this Section 5.3 (the
“Determination Date”),  Lessee shall pay monthly Base Rent to
Lessor at a rate equal to 105% of the rate of monthly Base Rent in effect on
the expiration date of the Original Term or the first Renewal Term, as
applicable (the “Temporary Base Rent”).  Within ten (10) business days after the
Determination Date, Lessor shall pay to Lessee, or Lessee shall pay to Lessor,
depending on whether the Fair Market Rent is less than or greater than the
Temporary Base Rent, whatever sum that Lessor or Lessee, as the case may be,
owes the other (the “Catch-Up Payment”),  based on the Temporary Base Rent actually
paid and the Fair Market Rent due (as determined by the Independent Brokers or
the Determining Broker, as the case may be) during that portion of the Renewal
Term that elapses before the Catch-Up Payment is paid, in full (together with
interest thereon, as provided below). The Catch-Up Payment shall bear interest
at the rate of Prime (defined below), plus five percent (5.0%) per annum from
the date each monthly component of the Catch-Up Payment would have been due,
had the Fair Market Rent been determined prior to the commencement of the
Renewal Term, through the date on which the Catch-Up Payment is paid, in full
(inclusive of interest thereon). For purposes hereof, “Prime” shall mean the per annum rate of
interest publicly announced by Wells Fargo Bank, N.A. (or its successor), from
time to time, as its “prime” or “base” or “reference”
rate of interest.

5.3.9    The party whose proposed
rate of Fair Market Rent is not selected by the Independent Brokers or the Determining
Broker, as the case may be, shall bear all costs of all counsel, experts or
other representatives that are retained by both parties, together with all
other costs of the arbitration proceeding described in this Section 5.3, including, without limitation,
the fees, costs and expenses imposed or incurred by any or all of the
Independent Brokers and the Determining Broker.

5.3.10  Unless otherwise expressly
agreed in writing, during the period of time that any arbitration proceeding is
pending under this Section 5.3,
Lessor and Lessee shall continue to comply with all those terms and provisions
of the Lease that are not the subject of their dispute and arbitration
proceeding, most specifically including, but not limited to, Lessee’s monetary
obligations under the Lease; and, with respect to the payment of Base Rent
during that

 5
 

portion of the Renewal Term
that elapses during the pendency of any arbitration proceeding under this Section 5.3, the provisions of Section 5.3.8 shall apply.

5.3.11  During any period of time that an arbitration
is pending or proceeding under this Section
5.3, Lessee shall have no right to assign the Lease or enter into
any sublease for all or any portion of the Premises, notwithstanding any
provision to the contrary in the Lease. Furthermore, if the Lease requires that
Lessor perform any lessee improvement work in connection with the Renewal Term,
Lessor shall be relieved of any such obligation during the pendency of any
arbitration proceeding under this Section 5.3.

6.                          Obligations. The obligations of Lessee under the Lease shall be guaranteed by
Guarantor pursuant to the terms of the Guaranty attached hereto as Exhibit A.

7.                          Security Deposit.

7.1                   L/C. Simultaneously with the execution and delivery of the Lease, Lessee
shall deliver to Lessor an irrevocable letter of credit (“L/C”) issued by a national U.S. banking
institution reasonably acceptable to Lessor, and in form and substance
reasonably satisfactory to Lessor, in the amount set forth in Section 1.6(b) of
the Original Lease (the “Security”),
subject to adjustment as set forth in Section
7.2 below, representing security for the performance by Lessee of
the covenants and obligations set forth in the Lease. In addition to any other
items that Lessor may reasonably require, the L/C shall: (a) name Lessor as its
beneficiary; (b) have an initial term of no less than one year; (c)
automatically renew for one year periods unless the issuer provides Lessor with
at least 60 days’ advance written notice that the L/C will not be renewed; (d)
the L/C shall permit partial draws; (e) the sole and exclusive condition to any
draw on the L/C shall be that Lessor certifies to the issuer that one or more
of the following is/are true: (i) Lessee is the debtor in a pending
bankruptcy proceeding; (ii) Lessee is not in compliance with any of the terms
of the Lease; and (iii) the Guarantor is not in compliance with the terms
of the Guaranty, and (f) be transferable to successor lessors on as many
occasions as desired. Notwithstanding the foregoing, in the event that: (x) the
expiration date of any L/C occurs before the Expiration Date, (y) the issuer
has advised Lessor that the issuer will not automatically renew the L/C; and
(z) Lessee fails to deliver to Lessor at least forty-five (45) days prior to the
expiration of such L/C either (A) an amendment thereto extending the expiration
date of such LC for not less than twelve (12) months, or (B) a new L/C, in form
and substance in accordance with (a) through (f) above and otherwise
satisfactory to Lessor (in its reasonable discretion), then Lessor may draw on
such L/C and thereafter (in addition to any other remedies available to Lessor
under the Lease) apply the proceeds in whatever manner or for whatever purpose
Lessor reasonably deems appropriate in the event that Lessee fails to timely
comply with any or all of the covenants and obligations imposed on Lessee under
the Lease. If Lessee fails to comply with any or all of its covenants or
obligations under the Lease, Lessor may, without notice to Lessee, draw on the
L/C and apply the proceeds to cure such default or pay any such sums then due
from Lessee under the Lease (including amounts due under Section 13.2 of the
Original Lease as a consequence of termination of the Lease or Lessee’s right
to possession), in whatever manner Lessor deems appropriate, in addition to any
and all other remedies available to Lessor under the Lease. Lessor shall not,
however, have the right to draw down the L/C in an amount in excess of the
amount then due and owing by Lessee to Lessor as reasonably determined by
Lessor (provided, however, that if the Lessee is a debtor in a pending
bankruptcy proceeding, Lessor

 6
 

shall have the right to draw
down the entire L/C). In the event Lessor draws against the L/C, Lessee shall,
upon demand, at Lessee’s option, immediately either (aa) deposit with Lessor a
sum equal to amount drawn under the L/C or (bb) deliver to Lessor an additional
L/C in an amount equal to the amount drawn. If Lessee fully and faithfully
complies with all the covenants under the Lease, the Security (or any balance
thereof) together with Lessor’s written consent to the cancellation of any and
all outstanding L/Cs constituting part of the Security shall be delivered to
Lessee within forty-five (45) days after the last to occur of (1) the date the
Term expires or terminates or (2) delivery to Lessor of possession of the
Premises. Lessor may deliver the Security to any purchaser of Lessor’s interest
in the Premises or any successor lessor, if applicable, whereupon Lessor shall
be discharged from any further liability with respect to the Security. In the
event that Lessor exercises its right under the preceding sentence, Lessee
shall fully cooperate with Lessor, in all reasonable respects, to cause the L/C
to be assigned and conveyed to, or reissued to, such purchaser or successor
lessor, as the case may be, and Lessee shall bear any expenses incurred in
connection therewith.

7.2                   L/C Adjustment. Not more than one time per calendar year,
Lessee shall have the right to submit to Lessor a written request for a
reduction in the amount of the L/C (the “L/C
Reduction Request”).  The
L/C Reduction Request shall include (i) Lessee’s most recent financial
statement (including balance sheet and income statement), (ii) such other
information as may be reasonably necessary for the purpose of determining
Tangible Net Worth (defined below) and (iii) Lessee’s determination of the
amount of the L/C (“L/C Amount”)
that it is required to maintain (as determined in accordance with the table set
forth below). Upon receipt of the L/C Reduction Request, Lessor shall have
forty-five (45) days to review and either approve or disapprove of Lessee’s
determination of the L/C Amount. Such approval or disapproval shall be
delivered to Lessee in writing. In addition, Lessor shall have the right to
request the information from Lessee described in items (i) and (ii) above as
part of Lessor’s request for financial information pursuant to Section 4 of this Rider. The L/C Amount may
also increase from time to time in accordance with the table set forth below if
Lessee’s Tangible Net Worth decreases. In all events, the L/C Amount shall
correspond to Lessee’s Tangible Net Worth, as reasonably approved by Lessor, in
accordance with the table set forth below.

In the event that the L/C
Amount is reduced from the previous determination of the L/C Amount, Lessor
shall cooperate with Lessee and its financial institution, at no expense to
Lessor, in order to reduce the amount of the L/C to the new L/C Amount;
provided, however, that in no event shall Lessor be required to surrender the
L/C that is in its possession unless and until Lessor receives a replacement
L/C in the new L/C Amount. In the event that the L/C Amount is increased from
the previous determination of the L/C Amount, Lessee, at Lessee’s sole cost and
expense, shall cause the L/C to be increased to the newly determined L/C Amount
within 45 days of Lessee’s receipt of Lessor’s written determination of the new
L/C Amount.

Notwithstanding anything to
the contrary, Lessee shall not be entitled to a reduction in the L/C Amount
prior to submitting its calendar year end 2008 financial statements and
therefore, Lessee shall not make a L/C Reduction Request until after January 1,
2009.

For purposes of this Section,
“Tangible Net Worth” shall mean (i) the aggregate of the assets of Lessee at
such date, excluding all intangible assess (i.e., unamortized debt, discount
and expenses, franchises, research and development, goodwill, trademarks,
patents, copyrights,

 7
 

organizational expenses and similar intangible items) minus
(ii) the total liabilities of Lessee at such date.

	
  Tangible Net Worth

  	
   

  	
  L/C Amount

  	
   

  
	
  Less than
  $40,000,000

  	
   

  	
  $

  	
  1,750,000

  	
   

  
	
  Less than
  S45,000,000 but greater than or equal to $40,000,000

  	
   

  	
  $

  	
  1,400,000

  	
   

  
	
  Less than $50,000,000
  but greater than or equal to $45,000,000

  	
   

  	
  $

  	
  1,050,000

  	
   

  
	
  Greater than or
  equal to $50,000,000

  	
   

  	
  $

  	
  350,000

  	
   

  

 

*If (i) Lessee would be entitled to a reduction in the
L/C Amount to $350,000, (ii) Lessee has submitted (or is then currently
submitting) its year end financial statements for calendar year 2010 and (iii)
Lessee has maintained a Tangible Net Worth of not less than $45,000,000 for the
previous then-ending six consecutive calendar quarters, then rather than
reducing the L/C Amount to, or maintaining the L/C Amount at, $350,000, the L/C
Amount shall be reduced to an amount equal to two months Rent.

Notwithstanding anything to
the contrary set forth herein, in no event shall Lessee be entitled to a
reduction in the L/C if Lessee is in Default of the Lease.

8.                                    Perris Boulevard Lease. Reference is hereby made to that certain AIR
Commercial Real Estate Association Standard Industrial/Commercial Single-Tenant
Lease—Net, as amended by that certain Rider, both dated as of the date hereof
by and between Lessor and Lessee with respect to the premises commonly known as
3411 N. Perris Boulevard, Perris, California (the “Perris Boulevard Lease”).  So
long as the lessor under this Lease is either (i) the lessor under the Perris
Boulevard Lease or (ii) affiliated with the lessor under the Perris Boulevard
Lease, then a Default or Breach under this Lease or the Perris Boulevard Lease,
as the case may be, shall constitute a Default or Breach under both this Lease
and the Perris Boulevard Lease, and, in such event, Lessor (or, if applicable,
such affiliate of Lessor) shall have the right to exercise its remedies set
forth in either or both of this Lease and the Perris Boulevard Lease.

9.                                    Chemicals/Wastes. Lessor hereby approves Lessee’s use of the
chemicals and wastes described on Exhibit B attached
hereto provided that such chemicals and wastes do not exceed the annual
quantity set forth on Exhibit B that
is applicable to the particular chemical or waste, such chemicals and wastes
are stored in the manner described on Exhibit B and
the use of such chemicals and wastes otherwise complies with the terms of the
Lease.

10.                              Repairs/Replacements. Lessee shall, at Lessee’s sole cost and
expense, perform the repairs and/or replacements described on Exhibit C attached hereto on or prior to (i) May 18, 2008
with respect to those items labeled as “Year 1 2007” on
Exhibit C; (ii) May 18, 2009 with
respect to those items labeled as “Year 2 2008”
on Exhibit C; and (iii) May 18, 2010 with

 8
 

respect to those items labeled as “Year 3 2009”. All such repairs and/or
replacements shall be performed in a manner reasonably acceptable to Lessor
and, Lessor shall have the right, from time to time, to monitor and inspect
Lessee’s performance of such repairs and/or replacements.

11.                              Management
Fee. Lessee shall pay to Lessor, on a monthly basis as a component of Rent,
a management fee in the amount of 0.5% of the Base Rent for the Property.

12.                              Counterparts.
This Rider may be executed in two (2) or more counterparts, each of which shall
be considered an original and all of which, when taken together, shall
constitute one (1) instrument. A facsimile counterpart of this Rider shall be
deemed an original for all relevant purposes.

[SIGNATURE PAGE TO
FOLLOW]

 9

IN WITNESS WHEREOF, the
parties have executed this Rider on the date first above written.

	
  

  	
  LESSOR:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  FIRST
  INDUSTRIAL, L.P., a
  Delaware limited

  partnership

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  First Industrial
  Realty Trust, Inc., a

  Maryland corporation and its sole general

  partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  LESSEE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NATIONAL
  RV, INC., a California corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas J.
  Martini

  	
   

  
	
   

  	
  Its:

  	
  CFO

  	
   

  
						

 

 S-1

EXHIBIT
A

GUARANTY
OF LEASE

GUARANTY
OF LEASE (this “Guaranty”) made
as of May          2007, by NATIONAL RV HOLDINGS, INC., a Delaware corporation, with an address at 100
West Sinclair, Penis, California 92571 (“Guarantor”),
to FIRST INDUSTRIAL, L.P., a
Delaware partnership, having an office at 311 South Wacker Drive, Suite 4000,
Chicago, Illinois 60606 (“Lessor”).

W
I  T  N  E  S  S  E  T  H:

WHEREAS:

A.        Lessor has been requested
by National RV, Inc., a California corporation, (“Lessee”), to enter into a Standard Industrial/Commercial
Single-Tenant Lease-Net dated as of the date hereof, as supplemented by that
certain Rider dated as of the date hereof by and between Lessor and Lessee (as
amended and supplemented, the “Lease”), whereby
Lessor would lease to Lessee, and Lessee would rent from Lessor, certain
premises located 100 West Sinclair Street, Perris, California, as more
particularly described in the Lease (the “Premises”).

B.        Guarantor is the parent of
Lessee, and will derive substantial economic benefit from the execution and
delivery of the Lease.

C.        Guarantor acknowledges
that Lessor would not enter into the Lease unless this Guaranty accompanied the
execution and delivery of the Lease.

D.        Guarantor hereby
acknowledges receipt of a copy of the Lease.

NOW, THEREFORE, in consideration of the execution and delivery of the Lease and of other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Guarantor covenants and agrees as follows:

1.         DEFINITIONS. Defined terms used in this Guaranty and not
otherwise defined herein have the meanings assigned to them in the Lease.

2.         COVENANTS OF GUARANTOR.

(a)       Guarantor absolutely, unconditionally and irrevocably guarantees, as a
primary obligor and not merely as a surety: (i) the full and prompt payment of
all Base Rent and additional Rent and all other rent, sums and charges of every
type and nature payable by Lessee under the Lease, and (ii) the full, timely
and complete performance of all covenants, terms, conditions, obligations and
agreements to be performed by Lessee under the Lease (all of the obligations
described in clauses (i) and (ii), collectively, the “Obligations”). If Lessee defaults under the Lease, Guarantor
will, without notice or demand, promptly pay and perform all of the
Obligations, and pay to Lessor, when and as due, all Base Rent and additional
Rent payable by Lessee under the Lease, together with all damages, costs and
expenses to which Lessor is entitled pursuant to any or all of the Lease, this
Guaranty and Applicable Requirements.

 A-1
 

(b)       Guarantor agrees with Lessor that (i) any action, suit or proceeding of
any kind or nature whatsoever (an “Action”)  commenced by Lessor against Guarantor to
collect Base Rent and additional Rent and any other rent, sums and charges due
under the Lease for any month or months shall not prejudice in any way Lessor’s
rights to collect any such amounts due for any subsequent month or months
throughout the Term in any subsequent Action, (ii) Lessor may, at its option,
without prior notice or demand, join Guarantor in any Action against Lessee in
connection with or based upon either or both of the Lease and any of the
Obligations, (iii) Lessor may seek and obtain recovery against Guarantor in an
Action against Lessee or in any independent Action against Guarantor without
Lessor first asserting, prosecuting, or exhausting any remedy or claim against
Lessee or against any security of Lessee held by Lessor under the Lease, and
(iv) Guarantor will be conclusively bound by a judgment entered in any Action
in favor of Lessor against Lessee, as if Guarantor were a party to such Action,
irrespective of whether or not Guarantor is entered as a party or participates
in such Action.

(c)       Any default or failure by the Guarantor to perform any of its Obligations
under this Guaranty shall be deemed an immediate default by Lessee under the
Lease, subject to any applicable cure and/or notice periods specifically
provided to Lessee in the Lease.

3.         GUARANTOR’S OBLIGATIONS
UNCONDITIONAL.

(a)       This Guaranty is an absolute and unconditional guaranty of payment and
of performance, and not of collection, and shall be enforceable against
Guarantor without the necessity of the commencement by Lessor of any Action
against Lessee, and without the necessity of any notice of nonpayment,
nonperformance or nonobservance, or any notice of acceptance of this Guaranty,
or of any other notice or demand to which Guarantor might otherwise be
entitled, all of which Guarantor hereby expressly waives in advance. The
obligations of Guarantor hereunder are independent of, and may exceed, the
obligations of Lessee.

(b)       If the Lease is renewed, or the Term extended, for any period beyond the
Expiration Date, either pursuant to any option granted under the Lease or
otherwise, or if Lessee holds over beyond the Expiration Date, the obligations
of Guarantor hereunder shall extend and apply to the full and faithful
performance and observance of all of the Obligations under the Lease accruing
during any renewal, extension or holdover period.

(c)       This Guaranty is a continuing guarantee and will remain in full force
and effect notwithstanding, and the liability of Guarantor hereunder shall be
absolute and unconditional irrespective of: (i) any modifications, alterations
or amendments of the Lease (regardless of whether Guarantor consented to or had
notice of same), (ii) any releases or discharges of Lessee other than the full
release and complete discharge of all of the Obligations, (iii) Lessor’s
failure or delay to assert any claim or demand or to enforce any of its rights
against Lessee, (iv) any extension of time that may be granted by Lessor to
Lessee, (v) any assignment or transfer of all or any part of Lessee’s interest
under the Lease (whether by Lessee, by operation of law, or otherwise), (vi)
any subletting, concession, franchising, licensing or permitting of the
Premises, (vii) any changed or different use of the Premises, (viii) any other
dealings or matters occurring between Lessor and Lessee, (ix) the taking by
Lessor of any additional guarantees, or the receipt by Lessor of any
collateral, from other persons or entities,

 A-2
 

(x) the release by Lessor of
any other guarantor, (xi) Lessor’s release of any security provided under the
Lease, (xii) Lessor’s failure to perfect any Lessor’s lien or other lien or
security interest available under applicable Laws, (xiii) any assignment by
Lessor, at any time and from time to time, of its interest under the Lease or
any portion thereof, either absolutely or as security, (xiv) Lessor’s
foreclosure or other realization on any security or collateral for the
performance by Lessee of its obligations under the Lease; and (xv) if Lessor
shall recover possession of the Premises by summary proceedings or otherwise,
Lessor at its option may repair, subdivide, alter or change the character of
the Premises from time to time as Lessor may deem appropriate, and may relet
the Premises or any part thereof for the whole or any part of the balance of
the original term of the Lease and for such rent and upon such other terms and
conditions as Lessor may determine. Without limiting the foregoing, this
Guaranty shall be applicable to any obligations of Lessee arising in connection
with a termination of the Lease, whether voluntary or otherwise. Guarantor
hereby consents, prospectively, to Lessor’s taking or entering into any or all
of the foregoing actions or omissions. For purposes of this Guaranty and the
obligations and liabilities of Guarantor hereunder, “Lessee” shall be deemed to
include any and all concessionaires, licensees, franchisees, department
operators, assignees, sublessees, permittees or others directly or indirectly
operating or conducting a business in or from the Premises and/or the Property,
as fully as if any of the same were the named Lessee under the Lease.

(d)       Guarantor hereby expressly agrees that the validity of this Guaranty and
the obligations of Guarantor hereunder shall in no way be terminated, affected,
diminished or impaired by reason of the assertion or the failure to assert by
Lessor against Lessee, of any of the rights or remedies reserved to Lessor
pursuant to the provisions of the Lease or by relief of Lessee from any of
Lessee’s obligations under the Lease or otherwise by (i) the release or
discharge of Lessee in any state or federal creditors’ proceedings,
receivership, bankruptcy or other proceeding; (ii) the impairment, limitation
or modification of the liability of Lessee or the estate of Lessee in
bankruptcy, or of any remedy for the enforcement of Lessee’s liability under
the Lease, resulting from the operation of any present or future provision of
the United States Bankruptcy Code (11 U.S.C. § 101 et seq., as amended), or
from other statute, or from the order of any court; or (iii) the rejection,
disaffirmance or other termination of the Lease in any such proceeding. This
Guaranty shall continue to be effective if at any time the payment of any
amount due under the Lease or this Guaranty is rescinded or must otherwise be
returned by Lessor for any reason, including, without limitation, the
insolvency, bankruptcy, liquidation or reorganization of Lessee, Guarantor or
otherwise, all as though such payment had not been made, and, in such event,
Guarantor shall pay to Lessor an amount equal to any such payment that has been
rescinded or returned.

4.         WAIVERS OF GUARANTOR.

(a)       Without limitation of the foregoing, Guarantor waives (i) notice of
acceptance of this Guaranty, and all notices of dishonor, nonpayment or
nonperformance, (ii) notices of the creation, renewal, extension, assignment or
modification of the Lease, (iii) notice of any actions taken by Lessor or
Lessee under the Lease or any other agreement or instrument relating thereto,
(iv) notice of any and all defaults by Lessee in the payment of Base Rent and additional
Rent or other rent, charges or amounts, or of any other defaults by Lessee
under the Lease, (v) all other notices,
demands and protests, and all other formalities of every kind in

 A-3
 

connection with the
enforcement of the Obligations, omission of or delay in which, but for the
provisions of this Section 4,
might constitute grounds for relieving Guarantor of its obligations hereunder,
(vi) any requirement that Lessor protect, secure, perfect, insure or proceed
against any security interest or lien, or any property subject thereto, or
exhaust any right or take any action against Lessee or any collateral, (vii)
the benefit of any statute of limitations affecting Guarantor’s liability under
this Guaranty, and (viii) all diligence, protests, presentations or
presentments. Notwithstanding anything to the contrary set forth in this
Guaranty, Guarantor may assert or present (and does not waive) any right,
defense, offset or benefit (excluding those defenses afforded by the bankruptcy
or insolvency laws described in Section 3(d) above) that is available to or
possessed by (and has not yet been asserted by) Lessee pursuant to the Lease in
any action by Lessor to enforce or proceed under this Guaranty.

(b)       GUARANTOR HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM BROUGHT BY ANY PERSON OR ENTITY WITH RESPECT TO ANY MATTER
WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH: THIS GUARANTY; THE
LEASE; ANY LIABILITY OR OBLIGATION OF LESSEE IN ANY MANNER RELATED TO THE
PREMISES AND/OR THE PROPERTY; ANY CLAIM OF INJURY OR DAMAGE IN ANY WAY RELATED
TO THE LEASE, THE PREMISES AND/OR THE PROPERTY; ANY ACT OR OMISSION OF LESSEE,
ITS AGENTS, EMPLOYEES, CONTRACTORS, SUPPLIERS, SERVANTS, CUSTOMERS,
CONCESSIONAIRES, FRANCHISEES, PERMITTEES OR LICENSEES; OR ANY ASPECT OF THE USE
OR OCCUPANCY OF, OR THE CONDUCT OF BUSINESS IN, ON OR FROM THE PREMISES AND/OR
THE PROPERTY. EXCEPT FOR ANY RIGHTS OF LESSEE THAT GUARANTOR RETAINS THE RIGHT
TO ASSERT, GUARANTOR SHALL NOT IMPOSE ANY COUNTERCLAIM OR COUNTERCLAIMS OR
CLAIMS FOR SET-OFF, RECOUPMENT OR DEDUCTION OF RENT IN ANY ACTION BROUGHT BY
LESSOR AGAINST GUARANTOR UNDER THIS GUARANTY. GUARANTOR SHALL NOT BE ENTITLED
TO MAKE, AND HEREBY WAIVES, ANY AND ALL DEFENSES AGAINST ANY CLAIM ASSERTED BY
LESSOR OR IN ANY SUIT OR ACTION INSTITUTED BY LESSOR TO ENFORCE THIS GUARANTY
OR THE LEASE. IN ADDITION, GUARANTOR HEREBY WAIVES, BOTH WITH RESPECT TO THE
LEASE AND WITH RESPECT TO THIS GUARANTY, ANY AND ALL RIGHTS WHICH ARE WAIVED BY
LESSEE UNDER THE LEASE, IN THE SAME MANNER AS IF ALL SUCH WAIVERS WERE FULLY
RESTATED HEREIN. THE LIABILITY OF GUARANTOR UNDER THIS GUARANTY IS PRIMARY AND
UNCONDITIONAL.

(c)       Without limiting the generality of the foregoing. Guarantor hereby
waives all of the rights and defenses which Guarantor may have under Civil Code
Section 2819, and by doing so Guarantor specifically agrees that Guarantor’s
liability hereunder shall continue even if Lessor alters any obligations of the
Lessee under the Lease in any respect or if Guarantor’s remedies or rights
against Lessee are in any way impaired or suspended without notice to or the
consent of Guarantor. Guarantor hereby waives any and all rights and defenses
which Guarantor may have under Civil Code Section 2810 and by doing so
Guarantor specifically agrees that Guarantor shall remain liable even if Lessee
had no liability under the Lease at the time of execution or if Lessee
thereafter ceased or hereafter ceases to be liable. This Guaranty and the
liability of Guarantor hereunder shall not be altered, limited or otherwise
affected by reason of the incapacity, death, disability of Lessee or any other
person or the discharge of Lessee’s

 A-4
 

liability hereunder by
operation of law or otherwise. Guarantor further hereby waives any and all
rights and defenses which Guarantor may have under Civil Code Section 2809; by
reason of such waiver Guarantor specifically agrees that Guarantor’s liability
under this Guaranty may be larger in amount or otherwise more burdensome than
that of Lessee under the Lease.

(d)       Guarantor hereby waives any and all rights and defenses which Guarantor
may have under Civil Code Sections 2845, 2849 and 2850, including any right
which Guarantor may have to require Lessor to: (i) proceed against Lessee or
any other guarantor, including any other Guarantor hereunder; (ii) proceed
against or exhaust any security or collateral Lessor may at any time hold,
including any security deposit under the Lease or any security given by
Guarantor; or (iii) pursue or exercise any other right or remedy which Lessor
may now or hereafter have under the Lease or at law or in equity, including any
right or remedy for the benefit of Guarantor. Lessor may exercise any and all
rights or remedies available to Lessor against Lessee or any other guarantor
(including any Guarantor hereunder) or against any security or collateral held
by Lessor without in any way limiting or impairing Lessor’s rights and remedies
against Guarantor under this Guaranty.

5.         SUBROGATION. Guarantor hereby waives all rights and
defenses which Guarantor may have under Civil Code Sections 2847 and 2848. As a
result of such waivers (and the waiver of Civil Code Section 2849 in Section
4(d) above), Guarantor shall have no right of subrogation or reimbursement
against Lessee, no right of subrogation against any collateral or security
which Lessor may hold under the Lease or otherwise (including any security
deposit), and no right of contribution against any other guarantor (including
any Guarantor hereunder) unless and until all obligations under the Lease have
been duly paid and performed. Guarantor shall not be subrogated, and hereby
waives and disclaims any claim or right against Lessee by way of subrogation or
otherwise, to any of the rights of Lessor under the Lease or otherwise, or in
either or both of the Premises and the Property, which may arise by any of the
provisions of this Guaranty or by reason of the performance by Guarantor of any
of its Obligations hereunder. Guarantor shall look solely to Lessee for any
recoupment of any payments made or costs or expenses incurred by Guarantor
pursuant to this Guaranty. If any amount shall be paid to Guarantor on account
of such subrogation rights at any time when all of the Obligations shall not
have been paid and performed in full, Guarantor shall hold such amount in trust
for Lessor and shall pay such amount to Lessor immediately following receipt by
Guarantor, to be applied against the Obligations, whether matured or unmatured,
in such order as Lessor may determine. Guarantor hereby subordinates any
liability or indebtedness of Lessee now or hereafter held by Guarantor to the
obligations of Lessee to Lessor under the Lease. To the extent that such
foregoing waiver is held by a court of competent jurisdiction to be void or
voidable, Guarantor’s rights of subrogation or reimbursement against Lessee and
against any collateral or security held by Lessor under the Lease or otherwise
shall be junior and subordinate to Lessor’s rights and remedies against Lessee
and to Lessor’s right, title and interest in such collateral or security; and
Guarantor’s right of contribution against any other guarantor, if any, shall be
junior and subordinate to any and all rights and remedies which Lessor may have
against such other guarantor. Guarantor acknowledges that Lessor’s exercise of
certain of the rights and remedies available to Lessor may impair or extinguish
Guarantor’s right of subrogation or reimbursement against Lessee or right of
contribution from any other guarantor, with the result that Guarantor may
incur a partially or totally non-reimbursable liability under this Guaranty;
Guarantor hereby waives any defense
based upon the foregoing.

 A-5
 

6.         REPRESENTATIONS AND
WARRANTIES OF GUARANTOR. Guarantor
represents and warrants that:

(a)       Guarantor is a corporation; has all requisite power and authority to
enter into and perform its obligations under this Guaranty; and this Guaranty
is valid and binding upon and enforceable against Guarantor without the
requirement of further action or condition.

(b)       The execution, delivery and performance by Guarantor of this Guaranty
does not and will not (i) contravene any Applicable Requirements or any
contractual restriction binding on or affecting Guarantor or any of its
properties, or (ii) result in or require the creation of any lien, security
interest or other charge or encumbrance upon or with respect to any of its
properties.

(c)       There is no action, suit or proceeding pending or threatened against or
otherwise affecting Guarantor before any court or other governmental authority
or any arbitrator that may materially adversely affect Guarantor’s ability to
perform its obligations under this Guaranty.

(d)       Guarantor’s principal place of business is 100 West Sinclair, Perris,
California 92571.

(e)       Guarantor is the parent of Lessee.

7.         NOTICES.    Any consents, notices, demands, requests,
approvals or other communications given under this Guaranty shall be given as
provided in the Lease, as follows:

(a)       if to Guarantor at Guarantor’s address set forth on the first page of
this Guaranty; and

(b)       if to Lessor, at Lessor’s address set forth on the signature page of the
Lease (with a copy to Lessor’s attorney as also set forth on the signature page
to the Lease); or to such other addresses as either Lessor or Guarantor may
designate by notice given to the other in accordance with the provisions of
this Section 7.

8.         CONSENT TO JURISDICTION;
WAIVER OF IMMUNITIES. The
undersigned hereby (a) consents and submits to the jurisdiction of the courts
of the State of California and the federal courts sitting in the State of
California and shall be subject to service of process in the State of
California with respect to any dispute there arising, directly or indirectly,
out of this Guaranty, (b) waives any objections which the undersigned may have
to the laying of venue in any such suit, action or proceeding in either such
court, (c) agrees to join Lessor in any petition for removal to either such
court, (d) agrees to join Lessor in any petition for removal to either and such
court and (e) irrevocably designates and appoints Lessee as its authorized
agent to accept and acknowledge on its behalf service of process with respect
to any disputes arising, directly or indirectly, out of this Guaranty. The
undersigned hereby acknowledges and agrees that Lessor may obtain personal
jurisdiction and perfect service of process through Lessee as the undersigned
agent, or by any other means now or hereafter permitted by applicable law.
Nothing above shall limit Lessor’s choice of forum for purposes of enforcing
this Guaranty.

 A-6
 

9.         MISCELLANEOUS

(a)       Guarantor further agrees that Lessor may, without notice, assign this
Guaranty in whole or in part. If Lessor disposes of its interest in the Lease, “Lessor,” as used in this Guaranty, shall
mean Lessor’s successors and assigns. This Guaranty may not be assigned by
Guarantor, without Lessor’s prior written consent, which consent shall not be
unreasonably withheld, conditioned or delayed, it being agreed that it is
unreasonable for Lessor to withhold its consent to such assignment in the event
Guarantor no longer owns a controlling interest in Lessee and the tangible net
worth (as determined in accordance with generally accepted accounting
principles (“GAAP”)) of the
proposed replacement guarantor is not less than the tangible net worth (as
determined in accordance with GAAP) of Guarantor as of the date of this
Guaranty.

(b)       In the event of any litigation between the parties hereto, the court in
such action shall award to the party in whose favor a judgment is entered a
reasonable sum as attorneys’ fees and costs, which sum shall be paid by the
losing party.

(c)       Guarantor shall, from time to time within ten (10) days after receipt of
Lessor’s request, execute, acknowledge and deliver to Lessor a statement
certifying that this Guaranty is unmodified and in full force and effect (or if
there have been modifications, that the same is in full force and effect as
modified and stating such modifications). Such certificate may be relied upon
by any prospective purchaser, lessor or lender of all or a portion of the
Premises and/or Property.

(d)       If any portion of this Guaranty shall be deemed invalid, unenforceable
or illegal for any reason, such invalidity, unenforceability or illegality
shall not affect the balance of this Guaranty, which shall remain in full force
and effect to the maximum permitted extent.

(e)       The provisions, covenants and guaranties of this Guaranty shall be
binding upon Guarantor and its heirs, successors, legal representatives and
assigns, and shall inure to the benefit of Lessor and its successors and assigns,
and shall not be deemed waived or modified unless such waiver or modification
is specifically set forth in writing, executed by Lessor or its successors and
assigns, and delivered to Guarantor.

(f)        Whenever the words “include”, “includes”, or “including” are used in
this Guaranty, they shall be deemed to be followed by the words “without
limitation”, and, whenever the circumstances or the context requires, the
singular shall be construed as the plural, the masculine shall be construed as
the feminine and/or the neuter and vice  versa. This Guaranty
shall be interpreted and enforced without the aid of any canon, custom or rule
of law requiring or suggesting construction against the party drafting or
causing the drafting of the provision in question.

(g)       Each of the rights and remedies herein provided are cumulative and not
exclusive of any rights or remedies provided by law or in the Lease or this
Guaranty.

(h)       The provisions of this Guaranty shall be governed by and interpreted
solely in accordance with the internal laws of the State of California, without
giving effect to the principles of conflicts of law.

 A-7
 

(i)        The execution of this Guaranty prior to execution of the Lease shall not
invalidate this Guaranty or lessen the Obligations of Guarantor hereunder.

(j)        Guarantor shall deliver to Lessor, upon request by Lessor, financial
statements for Guarantor prepared by an independent public accountant in the
ordinary course of the business and in accordance with customary accounting
practices applicable to business operations similar (in terms of the entity’s
domicile and whether such entity is a privately held or a public company) to
that of Guarantor.

(k)       Guarantor acknowledges that this Guaranty has been fully negotiated at
arms’ length between Guarantor and Lessor, and Guarantor has carefully read and
reviewed this Guaranty and understands its contents. Guarantor has had the
opportunity to review this Guaranty with, and seek the advice of, legal counsel
and/or other representatives chosen by Guarantor. Guarantor acknowledges that
Lessor’s counsel has drafted this Guaranty and, notwithstanding such fact, this
Guaranty shall not be construed against Lessor on account thereof.

[Signature Page to
Follow]

 A-8
 

IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the day and year first above
written.

 

	
  

  	
  GUARANTOR:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NATIONAL RV HOLDINGS, INC., a
  Delaware

  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas J.
  Martini

  
	
   

  	
  Name:

  	
  THOMAS J.
  MARTINI

  
	
   

  	
  Its:

  	
  CFO

  
					

 

 A-9

Exhibit B

	
  Chemical/Waste

  	
   

  	
  Approximate
  Annual

  Quantity Used or Generated

  	
   

  	
  Storage
  Containers(s)

  (i.e. Drums, Cartons, Totes,

  Bags ASTs, USTs etc)

  
	
  Urethane Paints

  	
   

  	
  13,200 Gal.

  	
   

  	
  55 gal. drum

  
	
  Urethane Based
  Adhesives

  	
   

  	
  4,500 Gal.

  	
   

  	
  55 gal. drum

  
	
  Acetone Based Paints

  	
   

  	
  2,800 Gal.

  	
   

  	
  55 gal. drum

  
	
  Acetone Based
  Adhesives

  	
   

  	
  1,200 Gal.

  	
   

  	
  55 gal. drum

  
	
  Oil/Lubricants

  	
   

  	
  600 Gal.

  	
   

  	
  55 gal. drum

  
	
  Fiberglass
  Resins

  	
   

  	
  78,000 Gal

  	
   

  	
  Totes

  
	
  Fiberglass Gel
  Coats

  	
   

  	
  16,000 Gal.

  	
   

  	
  Totes

  
	
  Acetone

  	
   

  	
  1,500 Gal.

  	
   

  	
  55 gal. drum

  
	
  Lacquer Thinner

  	
   

  	
  2,000 Gal.

  	
   

  	
  55 gal. drum

  
	
  Diesel Fuel

  	
   

  	
  2,000 Gal.

  	
   

  	
  Above Ground Tank

  
	
  Unleaded
  gasoline

  	
   

  	
  10,000 Gal.

  	
   

  	
  Underground Tank

  
	
  Propane

  	
   

  	
  500 Gal.

  	
   

  	
  Above Ground Tank

  
	
  Oxygen

  	
   

  	
  110 Cylinders

  	
   

  	
  Tanks/Cylinder

  
	
  Acetylene

  	
   

  	
  110 Cylinders

  	
   

  	
  Tanks/Cylinder

  
	
  Anti-freeze

  	
   

  	
  600 Gal.

  	
   

  	
  55 gal. drum

  
	
  MEKP

  	
   

  	
  600 Gal.

  	
   

  	
  55 gal. drum

  
	
  Argon/Carbon
  Dioxide Mix

  	
   

  	
  110 Cylinders

  	
   

  	
  Cylinder

  

 

Exhibit C

Deferred Maintenance

100 West Sinclair Street, Perris, CA

 

	
  Property Component

  	
   

  	
  Quantity

  	
   

  	
  Units

  	
   

  	
  Cost

  	
   

  	
  Year 1

  2007

  	
   

  	
  Year 2

  2008

  	
   

  	
  Year 3

  2009

  	
   

  
	
  Site

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The asphalt
  parking surfaces for the employee and visitor parking areas should be seal
  coated and striped.

  	
   

  	
  313,200

  	
   

  	
  sf

  	
   

  	
  $

  	
  47,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  47,000

  	
   

  
	
  The asphalt
  drive and service lanes should be seal coated.

  	
   

  	
  114,755

  	
   

  	
  sf

  	
   

  	
  $

  	
  14,900

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  14,900

  	
   

  
	
  Many areas of
  the concrete pavement around the perimeter of the manufacturing building are
  subject to some cracking and need repair.

  	
   

  	
  1

  	
   

  	
  allow.

  	
   

  	
  $

  	
  3,000

  	
   

  	
   

  	
   

  	
  $

  	
  3,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Structural,
  Exterior, & Roofing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  The blue metal
  trim around the roof perimeter is beginning to flake. The loose paint should
  be removed and the blue trim repainted.

  	
   

  	
  3,760

  	
   

  	
  sf

  	
   

  	
  $

  	
  15,000

  	
   

  	
  $

  	
  15,000

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Proactive roof
  repairs need to be conducted on Building 4 (See attached proactive
  maintenance list)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  10,000

  	
   

  	
   

  	
   

  
	
  Proactive roof
  repairs need to be conducted on Building 5 (See attached proactive
  maintenance list)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  28,500

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fire Protection
  and Life Safety / Code Compliance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  There are no
  sprinkler heads added below the north shed when it was installed by Weekend
  Warrior. Sprinklers should be added as a code related issue.

  	
   

  	
  5,040

  	
   

  	
  sf

  	
   

  	
  $

  	
  20,200

  	
   

  	
  $

  	
  20,200

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADA
  Upgrades

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Many of the
  restrooms do not have insulated drain or hot water lines. The drains and hot
  water lines for restroom lavatories need to be insulated.

  	
   

  	
  1

  	
   

  	
  each

  	
   

  	
  $

  	
  500

  	
   

  	
  $

  	
  500

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTALS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  35,700

  	
   

  	
  $

  	
  41,500

  	
   

  	
  $

  	
  61,900

  	
   

  
	
  Inflation
  at 3% per year

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  35,700

  	
   

  	
  $

  	
  42,745

  	
   

  	
  $

  	
  65,670

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
  $

  	
  144,115

  	
   

  

 

The proactive maintenance repairs and measures
recommended for these buildings include the following:

A.                     A
comprehensive inspection of the metal roof panels should be performed. All
loose fasteners should be re-tightened or replaced. All missing fasteners must
be replaced.

B.                       All
the metal curbs, large duct vents, roof penetrations with or without flashings,
roof hatches, laps/seams of the flat fiberglass skylight panels and domed
skylights with repairs, and the surrounding vicinity should be treated and
resealed with a metal roof maintenance elastomeric coating system with one
layer of polyester fabric reinforcement. Prior to application of the metal roof
maintenance elastomeric coating, the metal surface must be thoroughly cleaned and
properly prepared. All existing roof cement must be removed from metal
surfaces, and loose elastomeric sealant. The removal of the existing layers of
roof cement or sealant on the backside of the curbs and large duct vents (where
water is damming) is imperative to possibly provide openings that will allow
water to flow out and around the duct vents and curbs. All cut panel ribs must
be provided with pre-molded closures and side overlaps. Overlap edges must be
treated with polyester fabric embedded and covered with flashing-grade
elastomeric sealant.

C.                       The deflected metal roof
panels should be repaired and pulled back into shape, then overlaid with new
metal roof panels for additional support, if necessary. The edges of the new
panel patches must be fastened and should be sealed with polyester fabric
embedded and covered with flashing-grade elastomeric sealant and elastomeric
coating.

D.                      Kinked roof panel ribs
with rips or fractures should be repaired with polyester fabric embedded and
covered with flashing-grade elastomeric sealant and elastomeric coating.

E.                        A corroded roof panel on
Building 1 should be replaced.

F.                        Panel
end overlap edges and side overlaps that are open, suspect, and/or have been
resealed with roof cement, should be resealed

with polyester fabric embedded and covered with
flashing-grade elastomeric sealant and elastomeric coating.

G.                       Rusting roof panels should be treated with
rust-inhibiting primer and covered with the recommended elastomeric coating
system.

H.                      The top edge of the counterflashing metal
along the sidewalls of the main roof section of Building 3 should be resealed
with urethane sealant or a self-adhering flashing tape. All loose sections of
the counterflashing metal must be secured with screws through neoprene/steel
washers.

I.                           The
steel angle bars supporting the duct of a swamp cooler on Building 1 should be
re-designed and relocated on top of the roof panel ribs to allow water to flow.
On Building 2,  the wood sleeper
supports of the air conditioning units which are screwed into the roof panels
should be re-designed and relocated.

J.                          All open
top edges of pipe flashings should be resealed with elastomeric sealant and
properly detailed before the application of the elastomeric coating system. The
floodlight fixture on Building 5 that has dropped down into the opening must be
secured.

K.                      Pipe penetrations without flashings should be provided with
metal roof flashings that have rubber sleeves/boots with aluminum flanged base
rings to conform to the roof panel profile.

L.                        The metal roof flashings of the heat stacks on Building 3 must be fastened using
hex head self-tapping screws with bonded neoprene and steel washers driven into
the aluminum flanged base ring, spaced 1 inch on center.

M.                   Sheet metal
rain collars should be provided and installed on the heat stacks to cover the
top edge of the flashings. All missing heat vent covers should be replaced.

N.                      Open side laps of ridge plates should be resealed with polyester fabric embedded and
covered with flashing-grade elastomeric sealant and the elastomeric coating
system.

O.                      All screw holes on the
roof panels should be sealed with polyester fabric embedded and covered with
flashing-grade elastomeric sealant and the elastomeric coating.

P.                        The broken tiles on the
front office roof of Building 1 should be replaced.

Q.                      A
general clean-up of all roofs and gutters should be performed to remove all
scattered screws and accumulated dirt, debris, and plant growth.Exhibit 10.2

AIR
COMMERCIAL REAL ESTATE ASSOCIATION

STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE – NET

(DO
NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)

1.                          Basic
Provisions (“Basic Provisions”).

1.1                    Parties:
This Lease (“Lease”), dated for reference
purposes only May 18, 2007, is made by and between First Industrial, L.P., a
Delaware limited partnership (“Lessor”),
and National RV, Inc., a California corporation (“Lessee”),
(collectively the “Parties,” or
individually a “Party”).

1.2                    Premises:
That certain real property, including all improvements therein or to be
provided by Lessor under the terms of this Lease, and commonly known as 3411 N.
Perris Boulevard, located in the County of Riverside, State of California and
generally described as (describe briefly the nature of the property and, if
applicable, the “Project”, if the property is
located within a Project) Three (3) buildings containing approximately 383,395
square feet (Building One - approximately 156,768 square feet; Building Two - approximately
152,510 square feet; Building Three - approximately 74,117 square feet) (“Premises”). (See also Paragraph 2)

1.3                    Term: The term (“Original Term”) shall
commence on May 18, 2007 (“Commencement Date”)
and end on May 31, 2017 (“Expiration Date”).
(See also Paragraph 3)

1.5                    Base Rent:
$145,690.10 per month (“Base Rent”),
payable on the first day of each month commencing on the Commencement Date.
(See also Paragraph 4)

x if this box is checked, there are provisions
in this Lease for the Base Rent to be adjusted.

1.6                    Base Rent and
Other Monies Paid Upon Execution:

(a)                    Base Rent: $211,485.63 for the period May 18, 2007 through
June 30, 2007.

(b)                   Security Deposit: $3,250,000.00 (“Security Deposit”). (See Rider)

(c )                 Association Fees: $ N/A for the period

(d)                   Other:
$31,481.67 for Additional Rent (NNN charges) for May 18, 2007-June 30, 2007

(e)                    Total Due Upon Execution of this Lease: $242,967.30 (plus
the $3,250,000.00 Security Deposit).

1.7                    Agreed Use: Manufacturing, warehousing, assembly, ancillary
office, servicing of vehicles and any other lawful use incidental thereto. (See
also Paragraph 6)

1.8                    Insuring Party: Lessor is the “Insuring
Party” unless otherwise stated herein. (See also Paragraph 8)

1.10              Guarantor. The obligations of the Lessee under this Lease are
to be guaranteed by National RV Holdings, Inc., a Delaware corporation (“Guarantor”). (See also Paragraph 37)

1.11              Attachments. Attached hereto are the following, all of which
constitue a part of this Lease:

o
an Addendum consisting of Paragraphs                                     through
                                    
;

x
a plot plan depicting the Premises:

x
a current set of the Rules and Regulations;

o
a Work Letter;

x
other (specify): A Rider

	
  

  	
   

  	
   

  	
  /s/ TM

  
	
  INITIALS
  

  	
   

  	
  INITIALS

  
	
   

  	
   

  	
   

  
	
  ã2001
  - AIR COMMERCIAL REAL ESTATE ASSOCIATION

  	
   

  	
  FORM
  STN-9-3/06E

  
						

 

 1
 

2.                          Premises.

2.1                    Letting.
Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the
Premises, for the term, at the rental, and upon all of the terms, covenants and
conditions set forth in this Lease. Unless otherwise provided herein, any
statement of size set forth in this Lease, or that may have been used in
calculating Rent, is an approximation which the Parties agree is reasonable and
any payments based thereon are not subject to revision whether or not the
actual size is more or less. Note: Lessee is advised to
verify the actual size prior to executing this Lease.

If the building codes,
applicable laws, covenants or restrictions of record, regulations and
ordinances (“Applicable Requirements”) are hereafter changed so as to require
during the term of this Lease the construction of an addition to or an
alteration of the Premises and/or Building, the remediation of any Hazardous
Substance, or the reinforcement or other physical modification of the Unit,
Premises and/or Building (“Capital Expenditure”),
Lessor and Lessee shall allocate the cost of such work as follows:

(a)                    Subject to
Paragraph 2.3(c) below, if such Capital Expenditures are required as a result
of the specific and unique use of the Premises by Lessee as compared with
general manufacturing uses, Lessee shall be fully responsible for the cost
thereof, provided, however that if such Capital Expenditure is required during
the last 2 years of this Lease and the cost thereof exceeds 6 months’ Base
Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in
writing, within 10 days after receipt of Lessee’s termination notice that
Lessor has elected to pay the difference between the actual cost thereof and an
amount equal to 6 months’ Base Rent. If Lessee elects termination, Lessee shall
immediately cease the use of the Premises which requires such Capital
Expenditure and deliver to Lessor written notice specifying a termination date
at least 90 days thereafter. Such termination date shall, however, in no event
be earlier nor later than the last day that Lessee could legally utilize the
Premises without commencing such Capital Expenditure.

(b)                   If such Capital
Expenditure is not the result of the specific and unique use of the Premises by
Lessee (such as, governmentally mandated seismic modifications), then the cost
of the Capital Expenditure shall be amortized by Lessor over the useful life of
the Capital Expenditure (as reasonably determined by the parties applying
generally accepted accounting principles, “GAAP”),
together with interest at the “prime” or “reference” or “base” rate (on a per
annum basis) of interest announced as such, from time to time, by JP Morgan
Chase Bank, NA, or its successor (“Prime”).
If, however, such Capital Expenditure is required during the last 2 years of
this Lease or if Lessor reasonably determines that it is not economically
feasible to pay its share thereof, Lessor shall have the option to terminate
this Lease upon 90 days prior written notice to Lessee unless Lessee notifies
Lessor, in writing, within 10 days after receipt of Lessor’s termination notice
that Lessee will pay for such Capital Expenditure.

(c)                    Notwithstanding
the above, the provisions concerning Capital Expenditures are intended to apply
only to non-voluntary, unexpected, and new Applicable Requirements. If the
Capital Expenditures are instead triggered by Lessee as a result of an actual
or proposed change in use, change in intensity of use, or modification to the
Premises then, and in that event, Lessee shall either: (i) immediately cease
such changed use or intensity of use and/or take such other steps as may be
necessary to eliminate the requirement for such Capital Expenditure, or (ii)
complete such Capital Expenditure at its own expense. Lessee shall not,
however, have any right to terminate this Lease.

2.4                    Acknowledgements. Lessee acknowledges that: (a) it has been
advised by Lessor to satisfy itself with respect to the condition of the
Premises (including but not limited to the electrical, HVAC and fire sprinkler
systems, security, environmental aspects, and compliance with Applicable
Requirements and the Americans with Disabilities Act), and their suitability for
Lessee’s intended use, (b) Lessee has made such investigation as it deems
necessary with reference to such matters and assumes all responsibility
therefor as the same relate to its occupancy of the Premises, and (c) neither
Lessor, Lessor’s agents, nor Brokers have made any oral or written
representations or warranties with respect to said matters other than as set
forth in this Lease. In addition, Lessor acknowledges that: (i) Brokers have
made no representations, promises or warranties concerning Lessee’s ability to
honor the Lease or suitability to occupy the Premises, and (ii) it is Lessor’s
sole responsibility to investigate the financial capability and/or suitability
of all proposed tenants.

 2
 

2.5                    Lessee as Prior Owner/Occupant. Lessee agrees that Lessee is
familiar with the condition of the Premises as Lessee has had possession and
occupancy of the Premises prior to the Commencement Date (and prior to Lessor’s
acquisition of the Project) and Lessee hereby accepts the Premises on an “As-is,”
“Where-is” basis with all faults and defects. The
warranties made by Lessor in Paragraph 2 shall be of no force or effect if
immediately prior to the Commencement Date Lessee was the owner or occupant of the
Premises. In such event, Lessee shall be responsible for any necessary
corrective work.

3.                          Term.

3.1                    Term. The Commencement Date, Expiration Date and Original
Term of this Lease are as specified in Paragraph 1.3.

3.4                    Lessee Compliance. Lessor shall not be
required to deliver possession of the Premises to Lessee until Lessee complies
with its obligation to provide evidence of insurance (Paragraph 8.5). Pending
delivery of such evidence, Lessee shall be required to perform all of its
obligations under this Lease from and after the Start Date, including the
payment of Rent, notwithstanding Lessor’s election to withhold possession
pending receipt of such evidence of insurance.

4.                          Rent.

4.1.                 Rent Defined. All monetary obligations of Lessee to Lessor
under the terms of this Lease (except for the Security Deposit) are deemed to
be rent (“Rent”).

4.2                    Payment. Lessee shall cause payment of Rent to be received
by Lessor in lawful money of the United States, without offset or deduction
(except as specifically permitted in this Lease), on or before the day on which
it is due. All monetary amounts shall be rounded to the nearest whole dollar.
In the event that any invoice prepared by Lessor is inaccurate such inaccuracy
shall not constitute a waiver and Lessee shall be obligated to pay the amount
set forth in this Lease. Rent for any period during the term hereof which is
for less than one full calendar month shall be prorated based upon the actual
number of days of said month. Payment of Rent shall be made to Lessor at First
Industrial, L.P., P.O. Box 100363, Pasadena, California 91189-0363, or if sent
by overnight courier, Arroyo Parkway Plaza, Suite 150, 1111 South Arroyo
Parkway, Pasadena, California 91105-1103, Attention: First Industrial, L.P.,
Box 100363 or to such other persons or place as Lessor may from time to time
designate in writing. Acceptance of a payment which is less than the amount
then due shall not be a waiver of Lessor’s rights to the balance of such Rent,
regardless of Lessor’s endorsement of any check so stating. In the event that
any check, draft, or other instrument of payment given by Lessee to Lessor is
dishonored for any reason, Lessee agrees to pay to Lessor the sum of $25 in
addition to any Late Charge. Payments will be applied first to accrued late
charges and attorney’s fees, second to accrued interest, then to Base Rent, and
any remaining amount to any other outstanding charges or costs.

5.                          Security
Deposit. See Rider.

6                             Use.

6.1                    Use. Lessee shall use and occupy the Premises only for the
Agreed Use,

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and for no other purpose. Lessee shall not use or permit
the use of the Premises in a manner that is unlawful, creates damage, waste or
a nuisance, or that unreasonably disturbs occupants of or causes damage to
neighboring premises or properties. Other than guide, signal and seeing eye
dogs, Lessee shall not keep or allow in the Premises any pets, animals, birds,
fish, or reptiles. Lessor shall not unreasonably withhold or delay its consent
to any written request for a modification of the Agreed Use, so long as the
same will not impair the structural integrity of the improvements on the
Premises or the mechanical or electrical systems therein, and/or is not
significantly more burdensome of the Premises. If Lessor elects to withhold
consent, Lessor shall within 7 days after such request give written notification
of same, which notice shall include an explanation of Lessor’s objections to
the change in the Agreed Use. Upon Lessor’s request, Lessee shall complete and
deliver to Lessor a “Lessee Operations Inquiry Form” in the form reasonably
requested by Lessor describing the nature of Lessee’s proposed business
operations at the Premises, which form is intended to and shall be, relied upon
by Lessor.

6.2                    Hazardous Substances.

(a)                    Reportable Uses Require Consent. The term “Hazardous Substances” as used in this Lease shall mean any
product, substance, or waste whose presence, use, manufacture, disposal,
transportation, or release, either by itself or in combination with other
materials expected to be on the Premises, is either: (i) potentially injurious
to the public health, safety or welfare, the environment or the Premises, (ii)
regulated or monitored by any governmental authority, or (iii) a basis for
potential liability of Lessor to any governmental agency or third party under
any applicable statute or common law theory. Hazardous Substances shall
include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude
oil or any products, by-products or fractions thereof. Lessee shall not engage
in any activity in or on the Premises which constitutes a Reportable Use of
Hazardous Substances without the express prior written consent of Lessor and
timely compliance (at Lessee’s expense) with all Applicable Requirements. “Reportable Use” shall mean (i) the installation or use of
any above or below ground storage tank, (ii) the generation, possession,
storage, use, transportation, or disposal of a Hazardous Substance that
requires a permit from, or with respect to which a report, notice, registration
or business plan is required to be filed with, any governmental authority,
and/or (iii) the presence at the Premises of a Hazardous Substance with respect
to which any Applicable Requirements requires that a notice be given to persons
entering or occupying the Premises or neighboring properties. Notwithstanding
the foregoing, Lessee may use any ordinary and customary materials reasonably
required to be used in the normal course of the Agreed Use, ordinary office
supplies (copier toner, liquid paper, glue, etc.) and common household cleaning
materials, so long as such use is in compliance with all Applicable
Requirements. Furthermore, Lessee may use those materials used in its operation
as a manufacturer of recreational vehicles [(including, without limitation,
paint booths and the existing DST (as defined in the Rider)] so long as such
use is in compliance with all Applicable Requirements. In addition, Lessor may
condition its consent to any additional Reportable Use upon receiving such
additional assurances as Lessor reasonably deems necessary to protect itself,
the public, the Premises and/or the environment against damage, contamination,
injury and/or liability, including, but not limited to, the installation (and
removal on or before Lease expiration or termination) of protective
modifications if ordered by a governmental agency having jurisdiction over the
Property, (such as concrete encasements) and/or reasonably increasing the
Security Deposit.

(b)                   Duty to Inform Lessor. If Lessee knows, or has reasonable
cause to believe, that a Hazardous Substance has come to be located in, on,
under or about the Premises, other than as previously consented to by Lessor,
Lessee shall immediately give written notice of such fact to Lessor, and
provide Lessor with a copy of any report, notice, claim or other documentation
which it has concerning the presence of such Hazardous Substance.

(c)                    Lessee Remediation. Lessee shall not cause or permit any
Hazardous Substance to be spilled or released in, on, under, or about the
premises (including through the plumbing or sanitary sewer system) and shall
promptly, at Lessee’s expense, comply with all Applicable Requirements and take
all investigatory and/or remedial action reasonably recommended, whether or not
formally ordered or required, for the cleanup of any contamination of, and for
the maintenance, security and/or monitoring of the Premises or neighboring
properties, that was caused or materially contributed to by Lessee, or
pertaining to or involving any Hazardous Substance brought onto the Premises
during the term of this Lease, by or for Lessee, or any third party.

(d)                   Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents,
employees, lenders and ground lessor, if any, harmless from and against any and
all loss of rents and/or damages, liabilities, judgments, claims, expenses,
penalties, and attorneys’ and consultants’ fees arising out of or involving any
Hazardous Substance brought onto the Premises by or for Lessee, or any third
party under the control of Lessee (provided, however, that Lessee shall have no
liability under this Lease with respect to underground migration of any
Hazardous Substance under the Premises from adjacent properties not caused or
contributed to by Lessee). Lessee’s obligations shall include, but not be
limited to, the effects of any contamination or injury to person, property or
the environment created or suffered by Lessee, and the cost of investigation,
removal, remediation, restoration and/or abatement, and shall survive the
expiration or termination of this Lease. No termination, cancellation
or release agreement entered into by Lessor and Lessee shall release Lessee
from its obligations under this Lease with respect to Hazardous Substances,
unless specifically so agreed by Lessor in writing at the time of such
agreement.

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6.3                    Lessee’s Compliance with Applicable Requirements. Except as otherwise provided in
this Lease, Lessee shall, at Lessee’s sole expense, fully, diligently and in a
timely manner, materially comply with all Applicable Requirements, the
requirements of any applicable fire insurance underwriter or rating bureau, and
the recommendations of Lessor’s engineers and/or consultants which relate in
any manner to the such Applicable Requirements, without regard to whether such
Applicable Requirements are now in effect or become effective after the
Commencement Date. Lessee shall, within 10 days after receipt of Lessor’s
written request, provide Lessor with copies of all permits and other documents,
and other information evidencing Lessee’s compliance with any Applicable Requirements
specified by Lessor, and shall immediately upon receipt, notify Lessor in
writing (with copies of any documents involved) of any threatened or actual
claim, notice, citation, warning, complaint or report pertaining to or
involving the failure of Lessee or the Premises to comply with any Applicable
Requirements. Likewise, Lessee shall immediately give written notice to Lessor
of: (i) any water damage to the Premises and any suspected seepage, pooling,
dampness or other condition conducive to the production of mold; or (ii) any
mustiness or other odors that might indicate the presence of mold in the
Premises.

6.4                    Inspection;  Compliance.
Lessor and Lessor’s “Lender” (as
defined in Paragraph 30) and consultants shall have the right to enter into
Premises at any time, in the case of an emergency, and otherwise at reasonable
times after reasonable notice, for the purpose of inspecting the condition of
the Premises and for verifying compliance by Lessee with this Lease. The cost
of any such inspections shall be paid by Lessor, unless a material violation of
Applicable Requirements, or a Hazardous Substance Condition (see paragraph 9.1)
is found to exist or be imminent. In such case, Lessee shall upon request
reimburse Lessor for the cost of such inspection, so long as such inspection is
reasonably related to the violation or contamination. In addition, Lessee shall
provide copies of all relevant material safety data sheets (MSDS) to Lessor within 10 days of the
receipt of a written request therefor. Lessee’s obligations and liabilities
under this Section 6.4 shall be limited to the acts and/or omissions of Lessee
or any party within Lessee’s control. Lessee shall not be obligated to pay for
any costs incurred pursuant to this Section 6.4 which are unreasonable.

7.                          Maintenance;
Repairs, Utility Installations; Trade Fixtures and Alterations.

7.1                    Lessee’s
Obligations.

(a)                    In General. Subject to the provisions of 6.3 (Lessee’s
Compliance with Applicable Requirements), 7.2 (Lessor’s Obligations), 9 (Damage
or Destruction), and 14 (Condemnation), Lessee shall, at Lessee’s sole expense,
keep the Premises, Utility Installations (intended for Lessee’s exclusive use,
no matter where located), and Alterations in good order, condition and repair
(whether or not the portion of the Premises requiring repairs, or the means of
repairing the same, are reasonably or readily accessible to Lessee, and whether
or not the need for such repairs occurs as a result of Lessee’s use, any prior
use, the elements or the age of such portion of the Premises), including, but
not limited to, all equipment or facilities, such as plumbing, HVAC equipment,
electrical, lighting facilities, boilers, pressure vessels, fire protection
system, fixtures, walls (interior and exterior), foundations, ceilings, roofs,
roof drainage systems, floors, windows, doors, plate glass, skylights,
landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks
and parkways located in, on, or adjacent to the Premises. Lessee, in keeping
the Premises in good order, condition and repair, shall exercise and perform
good maintenance practices, specifically including the procurement and
maintenance of the service contracts required by Paragraph 7.1(b) below. Lessee’s
obligations shall include restorations, replacements or renewals when necessary
to keep the Premises and all improvements thereon or a part thereof in good
order, condition and state of repair. Lessee shall, during the term of this
Lease, keep the exterior appearance of the Building in a first-class condition
(including, e.g. graffiti removal) consistent with the exterior appearance of
other similar facilities of comparable age and size in the vicinity, including,
when necessary, the exterior repainting of the Building.

(b)                   Service Contracts. Subject to the last sentence of this
Section 7.1(b), Lessee shall, at Lessee’s sole expense, procure and maintain
contracts, with copies to Lessor, in customary form and substance for, and with
contractors specializing and experienced in the maintenance of the following
equipment and improvements, if any, if and when installed on the Premises: (i)
HVAC equipment, (ii) boiler, and pressure vessels, (iii) fire extinguishing
systems, including fire alarm and/or smoke detection, (iv) landscaping and
irrigation systems, (v) roof covering and drains, (vi) clarifiers (vii) basic
utility feed to the perimeter of the Building, and (viii) any other equipment,
if reasonably required by Lessor. With respect to the service contract for the
HVAC equipment, Lessee shall maintain in full force and effect, a preventative
maintenance and service contract with a reputable service provider for
maintenance of the HVAC equipment of the Premises (the “HVAC
Maintenance Contract”). The terms and provisions of the HVAC
Maintenance Contract shall require that the service provider maintain the
Premises, HVAC system in accordance with the manufacturer’s recommendations and
otherwise in accordance with normal, customary and reasonable practices in the
geographic area in which the Premises is located and for HVAC equipment
comparable to the Premises’ HVAC system. Within 30 days following the
Commencement Date, Lessee shall procure and deliver to Lessor the HVAC
Maintenance Contract. Thereafter, Lessee shall provide to Lessor a copy of
renewals or replacements of such HVAC Maintenance Contract no later than 30
days prior to the then-applicable expiry date of the existing HVAC Maintenance
Contract. If Lessee fails to timely deliver to Lessor the HVAC Maintenance
Contract (or any applicable renewal or replacement thereof), then Lessor shall
have the right to contract directly for the periodic maintenance of the HVAC
equipment in the Premises and to charge the cost thereof back to Lessee as
Rent. Lessor acknowledges and agrees that so long as a reputable technician
that is an employee of Lessee performs Lessee’s obligations under this
Paragraph 7.1, then Lessee shall not be required to maintain contracts with
third party providers for any of (i) - (vi) above.

(c)                    Failure to Perform. If Lessee fails to perform Lessee’s
obligations under this Paragraph 7.1, Lessor may enter upon the Premises after
10 days’ prior written notice to Lessee (except in the case of an emergency, in
which case no notice shall be required), perform such obligations on Lessee’s
behalf, and put the Premises in good order, condition and repair, and Lessee
shall promptly pay to Lessor a sum equal to 105% of the cost thereof.

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(d)                   Replacement. Subject to Lessee’s indemnification of Lessor
as set forth in Paragraph 8.7 below, and without relieving Lessee of liability
resulting from Lessee’s failure to exercise and perform good maintenance
practices, if an item described in Paragraph 7.1(b) cannot be repaired other
than at a cost which is in excess of 50% of the cost of replacing such item, then
such item shall be replaced by Lessor, and the cost thereof shall be amortized
by Lessor over the useful life of the replacement (in accordance with GAAP),
together with interest at Prime (on a per annum basis). Lessee acknowledges
that replacements that may be required pursuant to this Paragraph 7.1(d) shall
include, but not be limited to, replacements of the HVAC system and the roof.

7.2                    Lessor’s Obligations. Subject to the provisions of 9 (Damage
or Destruction) and 14 (Condemnation), it is intended by the Parties hereto
that Lessor have no obligation, in any manner whatsoever, to repair and
maintain the Premises, or the equipment therein, all of which obligations are
intended to be that of the Lessee. It is the intention of the Parties that the
terms of this Lease govern the respective obligations of the Parties as to
maintenance and repair of the Premises, and they expressly waive the benefit of
any statute now or hereafter in effect to the extent it is inconsistent with
the terms of this Lease.

7.3                    Utility Installations; Trade Fixtures; Alterations.

(a)                    Definitions. The term “Utility Installations”
refers to all floor and window coverings, air and/or vacuum lines, power
panels, electrical distribution, security and fire protection systems,
communication cabling, lighting fixtures, HVAC equipment, plumbing, and fencing
in or on the Premises. The term “Trade Fixtures”
shall mean Lessee’s machinery and equipment that can be removed without doing
material damage to the Premises. The term “Alterations”
shall mean any modification of the improvements, other than Utility
Installations or Trade Fixtures, whether by addition or deletion. “Lessee Owned Alterations and/or Utility Installations” are
defined as Alterations and/or Utility Installations made by Lessee that are not
yet owned by Lessor pursuant to Paragraph 7.4(a).

(b)                   Consent. Lessee shall not make any Alterations or Utility
Installations to the Premises without Lessor’s prior written consent, which
consent shall not be unreasonably withheld, conditioned or delayed provided,
however, that it shall not be unreasonable for Lessor to withhold its consent
if Lessor has approved Alterations equal to or greater than $50,000.00 during
the preceding twelve (12) month period. Lessee
may, however, make non-structural Utility Installations to the interior
of the Premises (excluding the roof) without such consent but upon notice to
Lessor, as long as they are not visible from the outside, do not involve
puncturing, relocating or removing the roof or any existing walls, will not
affect the electrical, plumbing, HVAC, and/or life safety systems, and the
cumulative cost thereof during this Lease as extended does not exceed a sum
equal to 6 month’s Base Rent in the aggregate or a sum equal to two month’s
Base Rent in any one year. Notwithstanding the foregoing, Lessee shall not make
or permit any roof penetrations and/or install anything on the roof without the
prior written consent of Lessor, which consent shall not be unreasonably
withheld, conditioned or delayed. Lessor may, as a precondition to granting
such approval, require Lessee to utilize a contractor chosen and/or approved by
Lessor. Any Alterations or Utility Installations that Lessee shall desire to
make and which require the consent of the Lessor shall be presented to Lessor
in written form with detailed plans. Consent shall be deemed conditioned upon
Lessee’s: (i) acquiring all applicable governmental permits, (ii) furnishing
Lessor with copies of both the permits and the plans and specifications prior
to commencement of the work, and (iii) compliance with all conditions of said
permits and other Applicable Requirements in a prompt and expeditious manner.
Any Alterations or Utility Installations shall be performed in a workmanlike
manner with good and sufficient materials. If as-built plans are prepared with
respect to any Alterations or Utility Installations, then once such plans have
been prepared, Lessee shall promptly furnish Lessor with a set.

(c)                    Liens; Bonds. Lessee shall pay, when due, all claims for labor
or materials furnished or alleged to have been furnished to or for Lessee at or
for use on the Premises, which claims are or may be secured by any mechanic’s
or materialmen’s lien against the Premises or any interest therein. Lessee
shall give Lessor not less than 10 days notice prior to the commencement of any
work in, on or about the Premises, and Lessor shall have the right to post
notices of non-responsibility. If Lessee shall contest the validity of any such
lien, claim or demand, then Lessee shall, at its sole expense defend and
protect itself, Lessor and the Premises against the same and shall pay and
satisfy any such adverse judgment that may be rendered thereon before the
enforcement thereof. If Lessor shall require, Lessee shall furnish a surety
bond in an amount equal to 150% of the amount of such contested lien, claim or
demand, indemnifying Lessor against liability for the same.

7.4                    Ownership; Removal; Surrender; and Restoration.

(a)                    Ownership. Subject to Lessor’s right to require removal or elect
ownership as hereinafter provided, all Alterations and Utility Installations
made by Lessee shall be the property of Lessee, but considered a part of the
Premises. Lessor may, at any time, elect in writing to be the owner of all or
any specified part of the Lessee Owned Alterations and Utility Installations.
Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned
Alterations and Utility Installations shall, at the expiration or termination
of this Lease, become the property of Lessor and be surrendered by Lessee with
the Premises.

(b)                   Removal. By delivery to Lessee of written notice from Lessor
not earlier than 90 and not later than 30 days prior to the end of the term of
this Lease, Lessor may require that any or all Lessee Owned Alterations or
Utility Installations be removed by the expiration or termination of this
Lease. Lessor may require the removal at any time of all or any part of any
Lessee Owned Alterations or Utility Installations made without the required
consent.

(c)                    Surrender; Restoration. Lessee shall surrender the Premises
by the Expiration Date or any earlier termination date, with all of the
improvements, parts and surfaces thereof broom clean and reasonably free of
debris. “Ordinary wear and tear” shall not include any damage or deterioration
that would have been prevented by good maintenance practice. Lessee shall
repair any damage occasioned by the installation, maintenance or removal of
Trade Fixtures, Lessee owned Alterations and/or Utility Installations,
furnishings, and equipment as well as the removal of

 6
 

any storage tank installed by or for Lessee. Lessee
shall completely remove from the Premises any and all Hazardous Substances
brought onto the Premises by or for Lessee, or any third party under the
control of Lessee (except Hazardous Substances which were deposited via
underground migration from areas outside of the Premises, or if applicable, the
Premises) even if such removal would require Lessee to perform or pay for work
that exceeds statutory requirements. Trade Fixtures shall remain the property
of Lessee and shall be removed by Lessee. In addition, Lessee shall remove from
the Premises all property which is owned by Lessee or third parties other than
Lessor and Lessee shall repair any damage caused by such removal. Any personal
property of Lessee not removed on or before the Expiration Date or any earlier
termination date shall be deemed to have been abandoned by Lessee and may be
disposed of or retained by Lessor as Lessor may desire. Notwithstanding anything
to the contrary set forth in this Lease, Lessor, at its election, shall have
the right to cause Lessee to either (i) convey the cranes located at the
Project to Lessor pursuant to a quitclaim bill of sale (which conveyance shall
occur upon the expiration of this Lease) or (ii) remove the cranes from the
Project, at Lessee’s sole cost and expense, pursuant to the terms of this
Paragraph 7.4(c). Lessor shall notify Lessee of such election on or prior to
the expiration of this Lease. The reasonable cost of removing and disposing of
such property and repairing any damage to any of the Premises caused by such
removal shall be paid by Lessee to Lessor upon demand. The failure by Lessee to
timely vacate the Premises pursuant to this Paragraph 7.4(c) without the
express written consent of Lessor shall constitute both a Default under the
provisions of Paragraph 13.1 below and a holdover under the provisions of
Paragraph 26 below.

8.                          Insurance;
Indemnity.

8.1                    Payment For
Insurance. Lessee shall pay for all insurance required under Paragraph 8
except to the extent of the cost attributable to liability insurance carried by
Lessor under Paragraph 8.2(b) in excess of $2,000,000 per occurrence. Premiums
for policy periods commencing prior to or extending beyond the Lease term shall
be prorated to correspond to the Lease term. Payment shall be made monthly by
Lessee to Lessor within 30 days following receipt of Lessor’s monthly rent
invoice.

8.2                    Liability
Insurance.

(a)                    Carried by Lessee. Lessee shall obtain and
keep in force a Commercial General Liability policy of insurance protecting
Lessee and Lessor as an additional insured against claims for bodily injury,
personal injury and property damage based upon or arising out of the ownership,
use, occupancy or maintenance of the Premises and all areas appurtenant
thereto. Such insurance shall be on an occurrence basis providing single limit
coverage in an amount not less than $2,000,000 per occurrence with an annual
aggregate of not less than $5,000,000. Lessee shall add Lessor as an additional
insured by means of an endorsement at least as broad as the Insurance Service
Organization’s “Additional Insured-Managers or Lessors of Premises” Endorsement
and coverage shall also be extended to include damage caused by heat, smoke or fumes
from a hostile fire. The policy shall contain a separation of insured parties
provision as between insured persons or organizations, but shall include
coverage for liability assumed under this Lease as an “insured contract” for the performance of
Lessee’s indemnity obligations under this Lease. The limits of said insurance
shall not, however, limit the liability of Lessee nor relieve Lessee of any
obligation hereunder. Lessee shall provide an endorsement on its liability
policy(ies) which provides that its insurance shall be primary to and not
contributory with any similar insurance carried by Lessor, whose insurance
shall be considered excess insurance only.

(b)                   Carried by Lessor. Lessor shall maintain
liability insurance as described in Paragraph 8.2(a), in addition to, and not
in lieu of, the insurance required to be maintained by Lessee. Lessee shall not
be named as an additional insured therein.

8.3                    Property
Insurance - Building, Improvements and Rental Value.

(a)                    Building and Improvements. The Insuring
Party shall obtain and keep in force a policy or policies in the name of
Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender
insuring loss or damage to the Premises. The amount of such insurance shall be
equal to the full insurable replacement cost of the Premises, as the same shall
exist from time to time, or the amount required by any Lender, but in no event
more than the commercially reasonable and available insurable value thereof. If
Lessor is the Insuring Party, however, Lessee Owned Alterations and Utility
Installations, Trade Fixtures, and Lessee’s personal property shall be insured
by Lessee under Paragraph 8.4 rather than by Lessor. If the coverage is
available and commercially appropriate, such policy or policies shall insure
against all risks of direct physical loss or damage (except the perils of flood
unless required by a Lender), including coverage for debris removal and the
enforcement of any Applicable Requirements requiring the upgrading, demolition,
reconstruction or replacement of any portion of the Premises as the result of a
covered loss. Said policy or policies shall also contain an agreed valuation
provision in lieu of any coinsurance clause, waiver of subrogation. If such
insurance coverage has a deductible clause, the deductible amount shall not
exceed $10,000 per occurrence, and Lessee shall be liable for such deductible
amount in the event of an Insured Loss.

(b)                   Rental Value. The Insuring Party shall
obtain and keep in force a policy or policies in the name of Lessor with loss
payable to Lessor and any Lender, insuring the loss of the full Rent for one
year with an extended period of indemnity for an additional 180 days (“Rental
Value Insurance”). Said insurance shall contain an agreed valuation provision in
lieu of any coinsurance clause, and the amount of coverage shall be adjusted
annually to reflect the projected Rent otherwise payable by Lessee, for the
next 12 month period. Lessee shall be liable for any deductible amount in the
event of such loss.

8.4                    Lessee’s
Property; Business Interruption Insurance.

(a)                    Property Damage. Lessee shall obtain and
maintain insurance coverage on all of Lessee’s personal property, Trade
Fixtures, and Lessee Owned Alterations and Utility Installations. Such
insurance shall be full replacement cost coverage with a deductible of not to
exceed $250,000 per occurrence. The proceeds from any such insurance shall be
used by Lessee for the replacement of personal property, Trade Fixtures and
Lessee Owned Alterations and Utility Installations. Lessee shall provide Lessor
with written evidence that such insurance is in force. Notwithstanding the terms of Section 8.6 below, Lessee shall be solely
liable for any and all of such deductibles in the event of an Insured Loss.

(b)                   Business Interruption. Lessee shall obtain
and maintain loss of income and extra expense insurance in amounts as will
reimburse Lessee for direct or indirect loss of earnings attributable to all
perils commonly insured against by prudent lessees in the business of Lessee or
attributable to prevention of access to the Premises as a result of such
perils.

 7
 

(c)                    No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of
coverage of insurance specified herein are adequate to cover Lessee’s property,
business operations or obligations under this Lease.

8.5                    Insurance Policies. Insurance required herein shall be by
companies duly licensed or admitted to transact business in the state where the
Premises are located, and with respect to insurance carried by Lessee pursuant
to Section 8.2(a) above,
maintaining during the policy term a “General Policyholders Rating” of at least
A, as set forth in the most current issue of “Best’s Insurance Guide”, or such
other rating as may be required by a Lender. Lessee shall not do or permit to
be done anything which invalidates the required insurance policies. Lessee
shall, prior to the Start Date, deliver to Lessor certified copies of policies
of such insurance or certificates evidencing the existence and amounts of the
required insurance. No such policy shall be cancelable or subject to
modification except after 30 days prior written notice to Lessor. Lessee shall,
at least 10 days prior to the expiration of such policies, furnish Lessor with
evidence of renewals or “insurance binders” evidencing renewal thereof, or
Lessor may order such insurance and charge the cost thereof to Lessee, which
amount shall be payable by Lessee to Lessor upon demand. Such policies shall be
for a term of at least one year, or the length of the remaining term of this
Lease, whichever is less. If either Party shall fail to procure and maintain
the insurance required to be carried by it, the other Party may, but shall not
be required to, procure and maintain the same. In addition, in the event that
Lessee fails, at any time or from time to time, to procure and maintain the
insurance required to be carried by Lessee, Lessor may impose on Lessee, as
Rent, a monthly delinquency fee, for each month during which Lessee fails to comply
with the foregoing obligation, in an amount equal to five percent (5%) of the
Base Rent then in effect.

8.6                    Waiver of Subrogation. Without affecting any other rights or
remedies, Lessee and Lessor each hereby release and relieve the other, and
waive their entire right to recover damages against the other, for loss of or
damage to its property arising out of or incident to the perils required to be
insured against herein. The effect of such releases and waivers is not limited
by the amount of insurance carried or required, or by any deductibles
applicable hereto. The Parties agree to have their respective property damage
insurance carriers waive any right to subrogation that such companies may have
against Lessor or Lessee, as the case may be, so long as the insurance is not
invalidated thereby.

8.7                    Indemnity. Except for and
to the extent of Lessor’s gross negligence or willful misconduct, Lessee
shall indemnify, protect, defend and hold harmless the Premises, Lessor and its
agents, Lessor’s master or ground lessor, partners and Lenders, from and
against any and all claims, loss of rents and/or damages, liens, judgments,
penalties, attorneys’ and consultants’ fees, expenses and/or liabilities
arising out of, involving, or in connection with, the use and/or occupancy of
the Premises by Lessee. If any action or proceeding is brought against Lessor
by reason of any of the foregoing matters, Lessee shall upon notice defend the
same at Lessee’s expense by counsel reasonably satisfactory to Lessor and
Lessor shall cooperate with Lessee in such defense. Lessor need not have first
paid any such claim in order to be defended or indemnified.

8.8                    Exemption of Lessor and its Agents from Liability.
Notwithstanding the negligence or breach of this Lease by Lessor or its agents,
neither Lessor nor its agents shall be liable under any circumstances for: (i)
injury or damage to the person or goods, wares, merchandise or other property
of Lessee, Lessee’s employees, contractors, invitees, customers, or any other
person in or about the Premises, whether such damage or injury is caused by or
results from fire, steam, electricity, gas, water or rain, indoor air quality,
the presence of mold or from the breakage, leakage, obstruction or other
defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or
lighting fixtures, or from any other cause, whether the said injury or damage
results from conditions arising upon the Premises or upon other portions of the
building of which the Premises are a part, or from other sources or places,
(ii) any damages arising from any act or neglect of any other tenant of Lessor
or from the failure of Lessor or its agents to enforce the provisions of any
other lease in the Project, or (iii) injury to Lessee’s business or for any
loss of income or profit therefrom. Instead, it is intended that Lessee’s sole
recourse in the event of such damages or injury be to file a claim on the
insurance policy(ies) that Lessee is required to maintain pursuant to the
provisions of paragraph 8.

9.                          Damage or Destruction.

9.1                    Definitions.

(a)                    “Premises Partial Damage” shall mean damage or destruction
to the improvements on the Premises, other than Lessee Owned Alterations and
Utility Installations, which can reasonably be repaired in 6 months or less
from the date of the damage or destruction. Lessor shall notify Lessee in
writing within 30 days from the date of the damage or destruction as to whether
or not the damage is Partial or Total. Notwithstanding the foregoing, Premises
Partial Damage shall not include damage to windows, doors, and/or other similar
items which Lessee has the responsibility to repair or replace pursuant to the
provisions of Paragraph 7.1.

(b)                   “Premises Total Destruction” shall mean damage or
destruction to the Premises, other than Lessee Owned Alterations and Utility Installations
and Trade Fixtures, which cannot reasonably be repaired in 6 months or less
from the date of the damage or destruction. Lessor shall notify Lessee in
writing within 45 days from the date of the damage or destruction as to whether
or not the damage is Partial or Total.

(c)                    “Insured Loss” shall mean damage or destruction to
improvements on the Premises, other than Lessee Owned Alterations and Utility Installations
and Trade Fixtures, which was caused by an event required to be covered by the
insurance described in Paragraph 8.3(a), irrespective of any deductible amounts
or coverage limits involved.

(d)                   “Replacement Cost” shall mean the cost to repair or rebuild
the improvements owned by Lessor at the time of the occurrence to their
condition existing immediately prior thereto, including demolition, debris
removal and upgrading required by the operation of Applicable Requirements, and
without deduction for depreciation.

(e)                    “Hazardous Substance Condition” shall mean the occurrence or
discovery of a condition involving the presence of, or a contamination by, a
Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the
Premises which requires repair, remediation, or restoration.

 8
 

9.2                    Partial Damage - Insured Loss. If a Premises Partial Damage
that is an Insured Loss occurs, then Lessor shall, at Lessor’s expense, repair
such damage (but not Lessee’s Trade Fixtures or Lessee Owned Alterations and
Utility Installations) as soon as reasonably possible and this Lease shall continue
in full force and effect.

9.3                    Partial Damage - Uninsured Loss. If a Premises Partial
Damage that is not an Insured Loss occurs, unless caused by a grossly negligent
or willful act of Lessee (in which event Lessee shall make the repairs at Lessee’s
expense), Lessor may either: (i) repair such damage as soon as reasonably
possible at Lessor’s expense, in which event this Lease shall continue in full
force and effect, or (ii) if the uninsured loss is greater than $2,000,000,
terminate this Lease by giving written notice to Lessee within 30 days after
receipt by Lessor of knowledge of the occurrence of such damage. Such
termination shall be effective 60 days following the date of such notice. In
the event Lessor elects to terminate this Lease, Lessee shall have the right
within 10 days after receipt of the termination notice to give written notice
to Lessor of Lessee’s commitment to pay for the repair of such damage without
reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory
assurance thereof within 30 days after making such commitment. In such event
this Lease shall continue in full force and effect, and Lessor shall proceed to
make such repairs as soon as reasonably possible after the required funds are
available. If Lessee does not make the required commitment, this Lease shall
terminate as of the date specified in the termination notice. See Rider

9.4                    Total Destruction. Notwithstanding any other provision
hereof, if a Premises Total Destruction occurs, this Lease shall terminate 60
days following such Destruction. If the damage or destruction was caused by the
gross negligence or willful misconduct of Lessee, Lessor shall have the right
to recover Lessor’s damages from Lessee, except as provided in Paragraph 8.6. See Rider

9.5                    Damage Near End of Term. If at any time during the last 6
months of this Lease there is damage for which the cost to repair exceeds one
month’s Base Rent, whether or not an Insured Loss, Lessor may terminate this
Lease effective 60 days following the date of occurrence of such damage by
giving a written termination notice to Lessee within 30 days after the date of
occurrence of such damage. Notwithstanding the foregoing, if Lessee at that
time has an exercisable option to extend this Lease or to purchase the
Premises, then Lessee may preserve this Lease by, (a) exercising such option
and (b) providing Lessor with any shortage in insurance proceeds (or adequate
assurance thereof) needed to make the repairs on or before the earlier of (i)
the date which is 10 days after Lessee’s receipt of Lessor’s written notice
purporting to terminate this Lease, or (ii) the day prior to the date upon
which such option expires. If Lessee duly exercises such option during such
period and provides Lessor with funds (or adequate assurance thereof) to cover
any shortage in insurance proceeds, Lessor shall, at Lessor’s commercially
reasonable expense, repair such damage as soon as reasonably possible and this
Lease shall continue in full force and effect. If Lessee fails to exercise such
option and provide such funds or assurance during such period, then this Lease
shall terminate on the date specified in the termination notice and Lessee’s
option shall be extinguished.

9.6                    Abatement of Rent; Lessee’s Remedies.

(a)                    Abatement. In the event of Premises Partial Damage or
Premises Total Destruction or a Hazardous Substance Condition for which Lessee
is not responsible under the Lease, the Rent payable by Lessee for the period
required for the repair, remediation or restoration of such damage shall be
abated in proportion to the degree to which Lessee’s use of the Premises is
impaired. All other obligations of Lessee hereunder shall be performed by
Lessee, and Lessor shall have no liability for any such damage, destruction,
remediation, repair or restoration except as provided herein.

(b)                   Remedies. If Lessor shall be obligated to repair or restore
the Premises and does not commence, in a substantial and meaningful way, such
repair or restoration within 90 days after such obligation shall accrue, Lessee
may, at any time prior to the commencement of such repair or restoration, give
written notice to Lessor and to any Lenders of which Lessee has actual notice,
of Lessee’s election to terminate this Lease on a date not less than 60 days
following the giving of such notice. If Lessee gives such notice and such
repair or restoration is not commenced within such 30 days thereafter, this
Lease shall terminate as of the date specified in said notice. If the repair or
restoration is commenced within such 30 days, this Lease shall continue in full
force and effect. “Commence” shall mean either the unconditional authorization
of the preparation of the required plans, or the beginning of the actual work
on the Premises, whichever first occurs.

9.7                    Termination; Advance Payments. Upon termination of this
Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment
shall be made concerning advance Base Rent and any other advance payments made
by Lessee to Lessor. Lessor shall, in addition, return to Lessee so much of
Lessee’s Security Deposit as has not been, or is not then required to be, used
by Lessor.

10.                    Real Property Taxes.

10.1              Definition.
As used herein, the term “Real Property Taxes”
shall include any form of assessment; real estate, general, special, ordinary
or extraordinary, or rental levy or tax (other than inheritance, personal
income or estate taxes); improvement bond; and/or license fee imposed upon or
levied against any legal or equitable interest of Lessor in the Premises or the
Project. Lessor’s right to other income therefrom, and/or Lessor’s business of
leasing by any authority having the direct or indirect power to tax and where
the funds are generated with reference to the Building address and where the
proceeds so generated are to be applied by the city, county or other local
taxing authority of a jurisdiction within which the Premises are located. Real
Property Taxes shall also include any tax, fee, levy, assessment or charge, or
any increase therein: (i) imposed by reason of events

 9
 

occurring during the term of this Lease, including but
not limited to, a change in the ownership of the Premises, and (ii) levied or
assessed on machinery or equipment provided by Lessor to Lessee pursuant to
this Lease.

10.2              Payment of Taxes.
In addition to Base Rent, Lessee shall pay to Lessor an amount equal to the
Real Property Tax installment due at least 20 days prior to the applicable
delinquency date. If any such installment shall cover any period of time after
the expiration or termination of this Lease, Lessee’s share of such installment
shall be prorated. Notwithstanding anything to the contrary contained herein,
Lessee shall be solely responsible for the timely payment of all Real Property
Taxes attributable to the period prior to the date of this Lease.

10.3              Joint Assessment. If
the Premises are not separately assessed, Lessee’s liability shall be an
equitable proportion of the Real Property Taxes for all of the land and
improvements included within the tax parcel assessed, such proportion to be
conclusively determined by Lessor from the respective valuations assigned in
the assessor’s work sheets or such other information as may be reasonably
available.

10.4              Personal Property
Taxes. Lessee shall pay, prior to delinquency, all taxes assessed against
and levied upon Lessee Owned Alterations, Utility Installations, Trade
Fixtures, furnishings, equipment and all personal property of Lessee. When
possible, Lessee shall cause its Lessee Owned Alterations and Utility
Installations, Trade Fixtures, furnishings, equipment and all other personal
property to be assessed and billed separately from the real property of Lessor.
If any of Lessee’s said property shall be assessed with Lessor’s real property,
Lessee shall pay Lessor the taxes attributable to Lessee’s property within 10
days after receipt of a written statement setting forth the taxes applicable to
Lessee’s property.

11.                    Utilities and
Services. Lessee shall pay for all water, gas, heat, light, power,
telephone, trash disposal and other utilities and services supplied to the
Premises, together with any taxes thereon. If any such services are not
separately metered or billed to Lessee. Lessee shall pay a reasonable
proportion, to be determined by Lessor, of all charges jointly metered or
billed. There shall be no abatement of rent and Lessor shall not be liable in
any respect whatsoever for the inadequacy, stoppage, interruption or
discontinuance of any utility or service due to riot, strike, labor dispute,
breakdown, accident, repair or other cause beyond Lessor’s reasonable control
or in cooperation with governmental request or directions.

12.                    Assignment and
Subletting.

12.1              Lessor’s Consent
Required.

(a)                    Lessee shall
not voluntarily or by operation of law assign, transfer, mortgage or encumber
(collectively, “assign or assignment”) or sublet all or any part of Lessee’s
interest in this Lease or in the Premises without Lessor’s prior written
consent, which consent shall not be unreasonably withheld, conditioned or
delayed; provided, however, that Lessee may assign its interest in this Lease
or sublet a portion of the Premises, without obtaining Lessor’s prior written
consent, to an entity that acquires substantially all of the assets of Lessee
or to an entity resulting from a merger or consolidation or to an entity that
has a controlling interest in Lessee provided that such transfer is for a bona
fide purpose and not principally for transferring Lessee’s leasehold estate.

(b)                   Unless Lessee
is a corporation and its stock is publicly traded on a national stock exchange,
a change in the control of Lessee shall constitute an assignment requiring
consent. The transfer, on a cumulative basis, of 25% or more of the voting
control of Lessee shall constitute a change in control for this purpose.

(c)                    The
involvement of Lessee or its assets in any transaction, or series of
transactions (by way of merger, sale, acquisition, financing, transfer,
leveraged buy-out or otherwise), whether or not a formal assignment or
hypothecation of this Lease or Lessee’s assets occurs, which results or will
result in a reduction of the Net Worth of Lessee by an amount greater than 25%
of such Net Worth as it was represented at the time of the execution of this
Lease or at the time of the most recent assignment to which Lessor has
consented, or as it exists immediately prior to said transaction or
transactions constituting such reduction, whichever was or is greater, shall be
considered an assignment of this Lease to which Lessor may withhold its
consent. “Net Worth of Lessee”
shall mean the tangible net worth of Lessee (excluding any guarantors)
established under generally accepted accounting principles.

(d)                   An assignment
or subletting without consent shall, at Lessor’s option, be a Default curable
after notice per Paragraph 13.1(c), or a noncurable Breach without the
necessity of any notice and grace period. If Lessor elects to treat such
unapproved assignment or subletting as a noncurable Breach, Lessor may
terminate this Lease.

(e)                    Lessee’s
remedy for any breach of Paragraph 12.1 by Lessor shall be limited to
compensatory damages and/or injunctive relief.

(f)                      Lessor may
reasonably withhold consent to a proposed assignment or subletting if Lessee is
in Default at the time consent is requested.

(g)                   Notwithstanding
the foregoing, allowing a de minimis portion of the Premises, ie. 20 square
feet or less, to be used by a third party vendor in connection with the
installation of a vending machine or payphone shall not constitute a
subletting.

12.2              Terms and Conditions
Applicable to Assignment and Subletting.

(a)                    Regardless of
Lessor’s consent, no assignment or subletting shall: (i) be effective without
the express written assumption by such assignee or sublessee of the obligations
of Lessee under this Lease, (ii) release Lessee of any obligations hereunder,
or (iii) alter the primary liability of Lessee for the payment of Rent or for
the performance of any other obligations to be performed by Lessee.

(b)                   Lessor may
accept Rent or performance of Lessee’s obligations from any person other than
Lessee pending approval or disapproval of an assignment. Neither a delay in the
approval or disapproval of such assignment nor the acceptance of Rent or
performance shall constitute a waiver or estoppel of Lessor’s right to exercise
its remedies for Lessee’s Default or Breach.

 10
 

(c)                    Lessor’s
consent to any assignment or subletting shall not constitute a consent to any
subsequent assignment or subletting.

(d)                   In the event of
any Default or Breach by Lessee, Lessor may proceed directly against Lessee,
any Guarantors or anyone else responsible for the performance of Lessee’s
obligations under this Lease, including any assignee or sublessee, without
first exhausting Lessor’s remedies against any other person or entity
responsible therefor to Lessor, or any security held by Lessor.

(e)                    Each request
for consent to an assignment or subletting shall be in writing, accompanied by
information relevant to Lessor’s determination as to the financial and
operational responsibility and appropriateness of the proposed assignee or
sublessee, including but not limited to the intended use and/or required
modification of the Premises, if any, together with a fee of $500 as
consideration for Lessor’s considering and processing said request. Lessee
agrees to provide Lessor with such other or additional information and/or
documentation as may be reasonably requested. (See also Paragraph 36)

(f)                      Any assignee
of, or sublessee under, this Lease shall, by reason of accepting such
assignment, entering into such sublease, or entering into possession of the
Premises or any portion thereof, be deemed to have assumed and agreed to
conform and comply with each and every term, covenant, condition and obligation
herein to be observed or performed by Lessee during the term of said assignment
or sublease, other than such obligations as are contrary to or inconsistent
with provisions of an assignment or sublease to which Lessor has specifically
consented to in writing.

(g)                   Lessor’s
consent to any assignment or subletting shall not transfer to the assignee or
sublessee any Option granted to the original Lessee by this Lease unless such
transfer is specifically consented to by Lessor in writing. (See Paragraph
39.2)

12.3              Additional Terms and Conditions Applicable to
Subletting. The following terms and conditions shall apply to any
subletting by Lessee of all or any part of the Premises and shall be deemed
included in  all subleases under
this Lease whether or not expressly incorporated therein:

(a)                    Lessee hereby
assigns and transfers to Lessor all of Lessee’s interest in all Rent payable on
any sublease, and Lessor may collect such Rent and apply same toward Lessee’s
obligations under this Lease; provided, however, that until  a Breach shall occur in the performance of
Lessee’s obligations, Lessee may collect said Rent. In  the event that the amount collected by
Lessor exceeds Lessee’s then outstanding obligations any such excess shall be
refunded to Lessee. Lessor shall not, by reason of the foregoing or any
assignment of such sublease, nor by reason of the collection of Rent, be deemed
liable to the sublessee for any failure of Lessee to perform and comply with
any of Lessee’s obligations to such sublessee. Lessee hereby irrevocably
authorizes and directs any such sublessee, upon receipt of a written notice
from Lessor stating that a Breach exists in the performance of Lessee’s
obligations under this Lease, to pay to Lessor all Rent due and to become due
under the sublease. Sublessee shall rely upon any such notice from Lessor and
shall pay all Rents to Lessor without any obligation or right to inquire as to
whether such Breach exists, notwithstanding any claim from Lessee to the
contrary.

(b)                   In the event of
a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to
Lessor, in which event Lessor shall undertake the obligations of the sublessor
under such sublease from the time of the exercise of said option to the
expiration of such sublease; provided, however, Lessor shall not be liable for
any prepaid rents or security deposit paid by such sublessee to such sublessor
or for any prior Defaults or Breaches of such sublessor.

(c)                    Any matter
requiring the consent of the sublessor under a sublease shall also require the
consent of Lessor.

(d)                   No sublessee
shall further assign or sublet all or any part of the Premises without Lessor’s
prior written consent.

13.                    Default; Breach; Remedies.

13.1              Default; Breach. A “Default” is defined as a failure by the
Lessee to comply with or perform any of the terms, covenants, conditions or Rules
and Regulations under this Lease. A “Breach” is
defined as the occurrence of one or more of the following Defaults, and the
failure of Lessee to cure such Default within any applicable grace period:

(a)                    The
abandonment of the Premises; or the vacating of the Premises without providing
a commercially reasonable level of security, or where the coverage of the
property insurance described in Paragraph 8.3 is jeopardized as a result
thereof, or without providing reasonable assurances to minimize potential vandalism.

(b)                   The failure of
Lessee to make any payment of Rent or any Security Deposit required to be made
by Lessee hereunder, whether to Lessor or to a third party, when due within
five (5) days after written notice from Lessor of such failure to pay on the
due date; provided, however, that if in any consecutive twelve (12) month
period, Lessee shall, on two (2) separate occasions, fail to pay any
installment of Rent on the date such installment of Rent is due, then, on the
third such occasion and on each occasion thereafter on which Lessee shall fail
to pay an installment of Rent on the date such installment of Rent is due,
Lessor shall be relieved from any obligation to provide notice to Lessee, and
Lessee shall then no longer have a five (5) day period in which to cure any
such failure.

(c)                    The failure of
Lessee to pay the Security Deposit or to provide reasonable evidence of
insurance or surety bond, or to fulfill any obligation under this Lease which
endangers or threatens life or property, where such failure continues for a
period of 5 business days following written notice to Lessee.

(d)                   The commission
of waste, act or acts constituting public or private nuisance, and/or an
illegal activity on the Premises by Lessee, where such  actions continue for a period of 3
business days following written notice to Lessee.

(e)                    The failure by
Lessee to provide (i) reasonable written evidence of compliance with Applicable
Requirements, (ii) the service contracts, (iii)
the rescission of an unauthorized assignment or subletting, (iv) an
Estoppel Certificate, (v) a requested subordination, (vi)  evidence concerning any guaranty and/or
Guarantor, (vii) any document requested under Paragraph 42, (viii) material
safety data sheets (MSDS), or (ix) any other documentation or information which
Lessor may reasonably require
of Lessee under the terms of this Lease, where any such failure continues for a
period of 15 days following written notice to Lessee.

(f)                      A Default by
Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under Paragraph 40 hereof, other than those
described in subparagraphs 13.1(a), (b), (c) or (d), above, where such Default continues for a period of 30
days after written notice; provided, however, that if the nature of Lessee’s
Default is such that more than 30 days are reasonably required for its cure, then
it shall not be deemed to be
a Breach if Lessee commences
such cure within said 30 day period and thereafter diligently prosecutes such
cure to completion.

(g)                   The occurrence
of any of the following events: (i) the  making
of any general arrangement or  assignment
for the benefit of creditors; (ii) becoming a “debtor”
as defined in 11 U.S.C. §101 or any successor statute thereto (unless, in the
case of a petition filed against Lessee, the same is dismissed within 60 days);
(iii) the appointment of a trustee or receiver to take possession of
substantially all of Lessee’s assets located at

 11
 

the Premises or of Lessee’s interest in this Lease,
where possession is not restored to Lessee within 30 days; or (iv) the
attachment, execution or other judicial seizure of substantially all of Lessee’s
assets located at the Premises or of Lessee’s interest in this Lease, where
such seizure is not discharged within 30 days; provided, however, in the event that any provision of
this subparagraph is contrary to any applicable law, such provision shall be of
no force or effect, and not affect the validity of the remaining provisions.

(h)                   The discovery
that any financial statement of Lessee or of any Guarantor given to Lessor was
materially false.

(i)                       If the
performance of Lessee’s obligations under this Lease is guaranteed: (i) the
death of a Guarantor, (ii) the termination of a Guarantor’s liability with
respect to this Lease other than in accordance with the terms of such guaranty,
(iii) a Guarantor’s becoming insolvent or the subject of a bankruptcy filing,
(iv) a Guarantor’s refusal to honor the guaranty, or (v) a Guarantor’s breach
of its guaranty obligation on an anticipatory basis, and Lessee’s failure,
within 60 days following written notice of any such event, to provide written
alternative assurance or security, which, when coupled with the then existing
resources of Lessee, equals or exceeds the combined financial resources of
Lessee and the Guarantors that existed at the time of execution of this Lease.

13.2              Remedies.
If Lessee fails to perform any of its affirmative duties or obligations, within
10 days after written notice (or in case of an emergency, without notice),
Lessor may, at its option, perform such duty or obligation on Lessee’s behalf,
including but not limited to the obtaining of reasonably required bonds,
insurance policies, or governmental licenses, permits or approvals. Lessee
shall pay to Lessor an amount equal to 115% of the costs and expenses incurred
by Lessor in such performance upon receipt of an invoice therefor. In the event
of a Breach, Lessor may, with or without further notice or demand, and without
limiting Lessor in the exercise of any right or remedy which Lessor may have by
reason of such Breach:

(a)                    Terminate
Lessee’s right to possession of the Premises by any lawful means, in which case
this Lease shall terminate and Lessee shall immediately surrender possession to
Lessor. In such event Lessor shall
be  entitled
to recover from Lessee: (i) the unpaid Rent which had been earned at the time
of termination; (ii) the worth at the time of award of the amount by which the
unpaid rent which would have been earned after termination until the time of
award exceeds the amount of such rental loss that the Lessee proves could have
been reasonably avoided; (iii) the worth at the time of award of the amount by
which the unpaid rent for the balance of the term after the time of award
exceeds the amount of such rental loss that the Lessee proves could be
reasonably avoided; and (iv) any other amount necessary to compensate Lessor
for all the detriment proximately caused by the Lessee’s failure to perform its
obligations under this Lease or which in the ordinary course of things would be
likely to result therefrom, including but not limited to the cost of recovering
possession of the Premises, expenses of reletting, including necessary
renovation and alteration of the Premises, reasonable attorneys’ fees, and that
portion of any leasing commission paid by Lessor in connection with this Lease
applicable to the unexpired term of this Lease. The worth at the time of award
of the amount referred to in provision (iii) of the immediately preceding
sentence shall be computed by discounting such amount at the discount rate of
the Federal Reserve Bank of the District within which the Premises are located
at the time of award plus one percent. Efforts by Lessor to mitigate damages
caused by Lessee’s Breach of this Lease shall not waive Lessor’s right to
recover damages under Paragraph 12. If termination of this Lease is obtained
through the provisional remedy of unlawful detainer, Lessor shall have the
right to recover in such proceeding any unpaid Rent and damages as are recoverable
therein, or Lessor may reserve the right to recover all or any part thereof in
a separate suit. If a notice and grace period required under Paragraph 13.1 was
not previously given, a notice to pay rent or quit, or to perform or quit given
to Lessee under the unlawful detainer statute shall also constitute the notice
required by Paragraph 13.1. In such case, the applicable grace period required
by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and
the failure of Lessee to cure the Default within the greater of the two such
grace periods shall constitute both an unlawful detainer and a Breach of this
Lease entitling Lessor to the remedies provided for in this Lease and/or by
said statute.

(b)                   Continue the
Lease and Lessee’s right to possession and recover the Rent as it becomes due,
in which event Lessee may sublet or assign, subject only to reasonable
limitations. Acts of maintenance, efforts to relet, and/or the appointment of a
receiver to protect the Lessor’s interests, shall not constitute a termination
of the Lessee’s right to possession.

(c)                    Pursue any
other remedy now or hereafter available under the laws or judicial decisions of
the state wherein the Premises are located. The expiration or termination of
this Lease and/or the termination of Lessee’s right to possession shall not
relieve Lessee from liability under any indemnity provisions of this Lease as
to matters occurring or accruing during the term hereof or by reason of Lessee’s
occupancy of the Premises.

13.4              Late Charges. Lessee hereby acknowledges that late
payment by Lessee of Rent will cause Lessor to incur costs not contemplated by
this Lease, the exact amount of which will be extremely difficult to ascertain.
Such costs include, but are not limited to, processing and accounting charges, and late charges which  may be imposed upon Lessor by any
Lender. Accordingly, if any Rent shall not be received by Lessor within 5 days
after such amount shall be due, then, without any requirement for notice to
Lessee, Lessee shall immediately pay to Lessor a one-time late charge equal to
5% of each such overdue amount or $100, whichever is greater. The Parties
hereby agree that such late charge represents a fair and reasonable estimate of
the costs Lessor will incur by reason of such late payment. Acceptance of such
late charge by Lessor shall in no event constitute a waiver of Lessee’s Default
or Breach with respect to such overdue amount, nor prevent the exercise of any
of the other rights and remedies granted hereunder. In the event that a late
charge is payable hereunder, whether or not collected, for 3 consecutive
installments of Base Rent, then notwithstanding any provision of this Lease to
the contrary, Base Rent shall, at Lessor’s option, become due and payable
quarterly in advance.

13.5              Interest. Any monetary payment due Lessor
hereunder, other than late charges, not received by Lessor, when due as to
scheduled payments (such as Base Rent) or within 30 days following the date on
which it was due for non-scheduled payment, shall bear interest from the date
when due, as to scheduled payments, or the 31st day after it was due as
non-scheduled payments. The interest (“Interest”)
charged shall be computed at the rate of 10% per annum but shall not exceed the
maximum rate allowed by law. Interest is payable in addition to the potential
late charge provided for in Paragraph 13.4.

13.6              Breach by Lessor.

(a)                    Notice of Breach. Lessor shall not be deemed in breach of
this Lease unless Lessor fails within a reasonable time to perform

 12
 

an obligation required to be performed by Lessor. For
purposes of this Paragraph, a reasonable time shall in no event be less than 30
days after receipt by Lessor, and any Lender whose name and address shall have
been furnished Lessee in writing for such purpose, of written notice specifying
wherein such obligation of Lessor has not been performed; provided, however,
that if the nature of Lessor’s obligation is such that more than 30 days are
reasonably required for its performance, then Lessor shall not be in breach if
performance is commenced within such 30 day period and thereafter diligently
pursued to completion.

14.                    Condemnation. If the Premises or any portion thereof are
taken under the power of eminent domain or sold under the threat of the
exercise of said power (collectively “Condemnation”),
this Lease shall terminate as to the part taken as of the date the condemning
authority takes title or possession, whichever first occurs. If more than 25%
of that portion of the Premises not occupied by any building, is taken by
Condemnation, or if the remaining portion of the Premises (after the
Condemnation) is not reasonably sufficient for Lessee’s Agreed Use of the
entire Premises, Lessee may, at Lessee’s option, to be exercised in writing
within 10 days after Lessor shall have given Lessee written notice of such
taking (or in the absence of such notice, within 10 days after the condemning
authority shall have taken possession) terminate this Lease as of the date the
condemning authority takes such possession. If more than 10% of the rentable
square footage of a given Building is taken by Condemnation, then this Lease
shall terminate only with respect to the impacted Building (and there shall
automatically be a pro rata adjustment to the Rent due and owing under this
Lease from and after such termination based on the revised square footage of
the Premises), but the Lease shall remain in full force and effect with respect
to the other Buildings. If Lessee does not terminate this Lease in accordance
with the foregoing, this Lease shall remain in full force and effect as to the
portion of the Premises remaining, except that the Base Rent shall be reduced
in proportion to the reduction in utility of the Premises caused by such
Condemnation. Condemnation awards and/or payments shall be the property of
Lessor, whether such award shall be made as compensation for diminution in
value of the leasehold, the value of the part taken, or for severance damages;
provided, however, that Lessee shall be entitled to any compensation paid by
the condemnor for Lessee’s relocation expenses, loss of business goodwill
and/or Trade Fixtures, without regard to whether or not this Lease is
terminated pursuant to the provisions of this Paragraph. All Alterations and
Utility Installations made to the Premises by Lessee, for purposes of
Condemnation only, shall be considered the property of the Lessee and Lessee
shall be entitled to any and all compensation which is payable therefor. In the
event that this Lease is not terminated by reason of the Condemnation, Lessor
shall repair any damage to the Premises caused by such Condemnation.

16.                    Estoppel Certificates.

(a)                    Each Party (as
“Responding Party”) shall within 15 days
after written notice from the other Party (the “Requesting
Party”) execute, acknowledge and deliver to the Requesting Party a
statement in writing in form similar to the then most current “Estoppel Certificate” form published by the
AIR Commercial Real Estate Association, plus such additional information,
confirmation and/or statements as may be reasonably requested by the Requesting
Party.

(b)                   If the
Responding Party shall fail to execute or deliver the Estoppel Certificate
within such 15 day period, the Requesting Party may execute an Estoppel
Certificate stating that: (i) the Lease is in full force and effect without
modification except as may be represented by the Requesting Party, (ii) there
are no uncured defaults in the Requesting Party’s performance, and (iii) if
Lessor is the Requesting Party, not more than one month’s rent has been paid in
advance. Prospective purchasers and encumbrancers may rely upon the Requesting
Party’s Estoppel Certificate, and the Responding Party shall be estopped from
denying the truth of the facts contained in said Certificate.

 13
 

17.                    Definition of Lessor. The term “Lessor” as used herein shall mean the
owner or owners at the time in question of the fee title to the Premises, or,
if this is a sublease, of the Lessee’s interest in the prior lease. In the
event of a transfer of Lessor’s title or interest in the Premises or this
Lease, Lessor shall deliver to the transferee or assignee (in cash or by
credit) any unused Security Deposit held by Lessor. Upon such transfer or
assignment (which assignment shall contain an explicit assumption of Lessor’s
obligations hereunder) and delivery of the Security Deposit, as aforesaid, the
prior Lessor shall be relieved of all liability with respect to the obligations
and/or covenants under this Lease accruing thereafter. Subject to the
foregoing, the obligations and/or covenants in this Lease to be performed by
the Lessor shall be binding only upon the Lessor as hereinabove defined.

18.                    Severability. The invalidity of any
provision of this Lease, as determined by a court of competent jurisdiction,
shall in no way affect the validity of any other provision hereof.

19.                    Days. Unless otherwise specifically
indicated to the contrary, the word “days” as used in this Lease shall mean and
refer to calendar days.

20.                    Limitation on Liability. The obligations of
Lessor under this Lease shall not constitute personal obligations of Lessor or
its partners, members, directors, officers or shareholders, and Lessee shall
look to the Premises, and to no other assets of Lessor, for the satisfaction of
any liability of Lessor with respect to this Lease, and shall not seek recourse
against Lessor’s partners, members, directors, officers or shareholders, or any
of their personal assets for such satisfaction.

21.                    Time of Essence. Time is of the essence
with respect to the performance of all obligations to be performed or observed
by the Parties under this Lease.

22.                    No Prior or Other Agreements;  Broker Disclaimer. This Lease contains all
agreements between the Parties with respect to any matter mentioned herein, and
no other prior or contemporaneous agreement or understanding shall be
effective. Lessor and Lessee each represents and warrants to the Brokers that
it has made, and is relying solely upon, its own investigation as to the
nature, quality, character and financial responsibility of the other Party to
this Lease and as to the use, nature, quality and character of the Premises.
Brokers have no responsibility with respect thereto or with respect to any
default or breach hereof by either Party.

23.                    Notices.

23.1              Notice Requirements. All notices required
or permitted by this Lease or applicable law shall be in writing and may be
delivered in person (by hand or by courier) or may be sent by regular,
certified or registered mail or U.S. Postal Service Express Mail, with postage
prepaid, or by facsimile transmission, and shall be deemed sufficiently given
if served in a manner specified in this Paragraph 23. The addresses noted
adjacent to a Party’s signature on this Lease shall be that Party’s address for
delivery or mailing of notices. Either Party may by written notice to the other
specify a different address for notice, except that upon Lessee’s taking
possession of the Premises, the Premises shall constitute Lessee’s address for
notice. A copy of all notices to Lessor shall be concurrently transmitted to
such party or parties at such addresses as Lessor may from time to time
hereafter designate in writing. A copy of any notice delivered to Lessor shall
also be sent to (i) First Industrial Realty Trust, Inc., 311 South Wacker
Drive, Suite 4000, Chicago, Illinois 60606, Attn: Executive Vice
President-Operations; and (ii) before May 25, 2007: Barack Ferrazzano
Kirschbaum Periman & Nagelberg LLP, 333 West Wacker Drive, Suite 2700,
Chicago, Illinois 60606, Attn: Suzanne Bessette-Smith, or after May 25, 2007:
Barack Ferrazzano Kirschbaum & Nagelberg LLP, 200 West Madison Street,
Suite 3900, Chicago, Illinois 60606, Attn: Suzanne Bessette-Smith..

23.2              Date of Notice. Any notice sent by
registered or certified mail, return receipt requested, shall be deemed given
on the date of delivery shown on the receipt card, or if no delivery date is
shown, the postmark thereon. If sent by regular mail the notice shall be deemed
given 72 hours after the same is addressed as required herein and mailed with
postage prepaid. Notices delivered by United States Express Mail or overnight
courier that guarantee next day delivery shall be deemed given 24 hours after
delivery of the same to the Postal Service or courier. Notices transmitted by
facsimile transmission or similar means shall be deemed delivered upon
telephone confirmation of receipt (confirmation report from fax machine is
sufficient), provided a copy is also delivered via delivery or mail. If notice
is received on a Saturday, Sunday or legal holiday, it shall be deemed received
on the next business day.

24.                    Waivers.

(a)                    No waiver by
Lessor of the Default or Breach of any term, covenant or condition hereof by
Lessee, shall be deemed a waiver of any other term, covenant or condition
hereof, or of any subsequent Default or Breach by Lessee of the same or of any
other term, covenant or condition hereof. Lessor’s consent to, or approval of,
any act shall not be deemed to render unnecessary the obtaining of Lessor’s
consent to, or approval of, any subsequent or similar act by Lessee, or be
construed as the basis of an estoppel to enforce the provision or provisions of
this Lease requiring such consent.

(b)                   The acceptance
of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any
payment by Lessee may be accepted by Lessor on account of moneys or damages due
Lessor, notwithstanding any qualifying statements or conditions made by Lessee
in connection therewith, which such statements and/or conditions shall be of no
force or effect whatsoever unless specifically agreed to in writing by Lessor
at or before the time of deposit of such payment.

(c)                    THE PARTIES
AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL MATTERS
RELATED THERETO AND HEREBY WAIVE THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE
TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THIS LEASE.

 14
 

26.                    No Right To Holdover. Lessee has no right to retain
possession of the Premises or any part thereof beyond the expiration or
termination of this Lease. In the event that Lessee holds over, then the Base
Rent shall be increased to 125% of the Base Rent applicable immediately
preceding the expiration or termination. Nothing contained herein shall be
construed as consent by Lessor to any holding over by Lessee.

27.                    Cumulative Remedies.
No remedy or election hereunder shall be deemed exclusive but shall, wherever
possible, be cumulative with all other remedies at law or in equity.

28.                    Covenants and Conditions; Construction of Agreement. All provisions of this Lease to
be observed or performed by Lessee are both covenants and conditions. In
construing this Lease, all headings and titles are for the convenience of the
Parties only and shall not be considered a part of this Lease. Whenever
required by the context, the singular shall include the plural and vice versa.
This Lease shall not be construed as if prepared by one of the Parties, but
rather according to its fair meaning as a whole, as if both Parties had
prepared it.

29.                    Binding Effect; Choice of Law. This Lease shall be binding upon the Parties, their personal
representatives, successors and assigns and be governed by the laws of the
State in which the Premises are located. Any litigation between the Parties
hereto concerning this Lease shall be initiated in the county in which the Premises
are located.

30.                    Subordination; Attornment; Non-Disturbance.

30.1              Subordination. This Lease and any Option
granted hereby shall be subject and subordinate to any ground lease, mortgage,
deed of trust, or other hypothecation or security device (collectively, “Security Device”), now or hereafter placed upon the
Premises, to any and all advances made on the security thereof, and to all
renewals, modifications, and extensions thereof. Lessee agrees that the holders
of any such Security Devices (in this Lease together referred to as “Lender”) shall have no liability or obligation to perform
any of the obligations of Lessor under this Lease. Any Lender may elect to have
this Lease and/or any Option granted hereby superior to the lien of its
Security Device by giving written notice thereof to Lessee, whereupon this
Lease and such Options shall be deemed prior to such Security Device,
notwithstanding the relative dates of the documentation or recordation thereof.

30.2              Attornment. In the event that Lessor
transfers title to the Premises, or the Premises are acquired by another upon
the foreclosure or termination of a Security Device to which this Lease is
subordinated (i) Lessee shall, subject to the non-disturbance provisions of
Paragraph 30.3, attorn to such new owner, and upon request, enter into a new
lease, containing all of the terms and provisions of this Lease, with such new
owner for the remainder of the term hereof, or, at the election of the new
owner, this Lease will automatically become a new lease between Lessee and such
new owner, for the remainder of the term hereof, and (ii) Lessor shall
thereafter be relieved of any further obligations hereunder and such new owner
shall assume all of Lessor’s obligations, except that such new owner shall not:
(a) be liable for any act or omission of any prior lessor or with respect to
events occurring prior to acquisition of ownership; (b) be subject to any
offsets or defenses which Lessee might have against any prior lessor, (c) be
bound by prepayment of more than one month’s rent, or (d) be liable for the
return of any security deposit paid to any prior lessor unless such Security
Deposit was delivered to the new owner.

30.3              Non-Disturbance.
With respect to Security Devices entered into by Lessor after the execution of
this Lease, Lessee’s subordination of this Lease shall be subject to receiving
a commercially reasonable non-disturbance agreement (a “Non-Disturbance
Agreement”) from the Lender which Non-Disturbance Agreement provides
that Lessee’s possession of the Premises, and this Lease, including any options
to extend

 15
 

the term hereof, will not be disturbed so long as
Lessee is not in Breach hereof and attorns to the record owner of the Premises.
Further, within 60 days after the execution of this Lease, Lessor shall, if
requested by Lessee, use its commercially reasonable efforts to obtain a
Non-Disturbance Agreement from the holder of any pre-existing Security Device
which is secured by the Premises.

30.4              Self-Executing. The agreements contained in
this Paragraph 30 shall be effective without the execution of any further
documents; provided, however, that, upon written request from Lessor or a
Lender in connection with a sale, financing or refinancing of the Premises,
Lessee and Lessor shall execute such further writings as may be reasonably
required to separately document any subordination, attornment and/or
Non-Disturbance Agreement provided for herein.

31.                    Attorneys’
Fees. If any Party or Broker brings an action or proceeding involving the
Premises whether founded in tort, contract or equity, or to declare rights
hereunder, the Prevailing Party (as hereafter defined) in any such proceeding,
action, or appeal thereon, shall be entitled to reasonable attorneys’ fees.
Such fees may be awarded in the same suit or recovered in a separate suit,
whether or not such action or proceeding is pursued to decision or judgment.
The term, “Prevailing Party” shall include,
without limitation, a Party or Broker who substantially obtains or defeats the
relief sought, as the case may be, whether by compromise, settlement, judgment,
or the abandonment by the other Party or Broker of its claim or defense. The
attorneys’ fees award shall not be computed in accordance with any court fee
schedule, but shall be such as to fully reimburse all attorneys’ fees
reasonably incurred.

32.                    Lessor’s Access; Showing Premises; Repairs. Lessor and
Lessor’s agents shall have the right to enter the Premises at any time, in the
case of an emergency, and otherwise at reasonable times after reasonable prior
notice for the purpose of showing the same to prospective purchasers, lenders,
or tenants, and making such alterations, repairs, improvements or additions to
the Premises as Lessor may deem necessary or desirable and the erecting, using
and maintaining of utilities, services, pipes and conduits through the Premises
and/or other premises as long as there is no material adverse effect to Lessee’s
use of the Premises. All such activities shall be without abatement of rent or
liability to Lessee.

33.                    Auctions. Lessee
shall not conduct, nor permit to be conducted, any auction upon the Premises
without Lessor’s prior written consent. Lessor shall not be obligated to
exercise any standard of reasonableness in determining whether to permit an
auction.

34.                    Signs. Lessor
may place on the Premises ordinary “For Sale”
signs at any time and ordinary “For Lease”
signs during the last 6 months of the term hereof. Except for ordinary “for
sublease” signs, Lessee shall not place any sign upon the Premises without
Lessor’s prior written consent. All signs must comply with all Applicable
Requirements.

35.                    Termination;  Merger. Unless
specifically stated otherwise in writing by Lessor, the voluntary or other
surrender of this Lease by Lessee, the mutual termination or cancellation
hereof, or a termination hereof by Lessor for Breach by Lessee, shall
automatically terminate any sublease or lesser estate in the Premises;
provided, however, that Lessor may elect to continue any one or all existing
subtenancies. Lessor’s failure within 10 days following any such event to elect
to the contrary by written notice to the holder of any such lesser interest,
shall constitute Lessor’s election to have such event constitute the
termination of such interest.

36.                    Consents. Except as otherwise provided herein, wherever in
this Lease the consent of a Party is required to an act by or for the other
Party, such consent shall not be unreasonably withheld or delayed. Lessor’s
actual reasonable costs and expenses (including but not limited to architects’,
attorneys’, engineers’ and other consultants’ fees) incurred in the
consideration of, or response to, a request by Lessee for any Lessor consent,
including but not limited to consents to an assignment, a subletting or the
presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt
of an invoice and supporting documentation therefor. Lessor’s consent to any
act, assignment or subletting shall not constitute an acknowledgment that no
Default or Breach by Lessee of this Lease exists, nor shall such consent be
deemed a waiver of any then existing Default or Breach, except as may be
otherwise specifically stated in writing by Lessor at the time of such consent.
The failure to specify herein any particular condition to Lessor’s consent
shall not preclude the imposition by Lessor at the time of consent of such
further or other conditions as are then reasonable with reference to the
particular matter for which consent is being given. In the event that either
Party disagrees with any determination made by the other hereunder and
reasonably requests the reasons for such determination, the determining party
shall furnish its reasons in writing and in reasonable detail within 10
business days following such request.

37.                    Guarantor.

37.1             Execution. The
Guarantor shall execute a guaranty in the form attached to the Rider and such
Guarantor shall have the same obligations as Lessee under this Lease.

37.2             Default. It shall
constitute a Default of the Lessee if Guarantor fails or refuses, upon request
to provide: (a) evidence of the execution of the guaranty, including the
authority of the party signing on Guarantor’s behalf to obligate Guarantor, and
in the case of a corporate Guarantor, a certified copy of a resolution of its
board of directors authorizing the making of such guaranty, (b) current
financial statements, (c) an Estoppel Certificate, or (d) written confirmation
that the guaranty is still in effect.

38.                    Quiet
Possession. Subject to payment by Lessee of the Rent and performance of all
of the covenants, conditions and provisions on Lessee’s part to be observed and
performed under this Lease, Lessee shall have quiet possession and quiet
enjoyment of the Premises during the term hereof.

39.                    Options.
If Lessee is granted an Option, as defined below, then the following provisions
shall apply:

39.1             Definition.  “Option” shall mean: (a) the right to
extend the term of or renew this Lease or to extend or renew any lease that

 16
 

Lessee has on other property of Lessor; (b) the right
of first refusal or first offer to lease either the Premises or other property
of Lessor; (c) the right to purchase or the right of first refusal to purchase
the Premises or other property of Lessor.

39.3             Multiple
Options. In the event
that Lessee has any multiple Options to extend or renew this Lease, a later
Option cannot be exercised unless the prior Options have been validly
exercised.

39.4             Effect of
Default on Options.

(a)                    Lessee shall
have no right to exercise an Option: (i) during the period commencing with the
giving of any notice of Default and continuing until said Default is cured,
(ii) during the period of time any Rent is unpaid (without regard to whether
notice thereof is given Lessee), (iii) during the time Lessee is in Breach of
this Lease, or (iv) in the event that Lessee has been given 3 or more notices
of separate monetary or material non-monetary Default, whether or not the
Defaults are cured, during the 12 month period immediately preceding the
exercise of the Option.

(b)                   The period of
time within which an Option may be exercised shall not be extended or enlarged
by reason of Lessee’s inability to exercise an Option because of the provisions
of Paragraph 39.4(a).

(c)                    An Option
shall terminate and be of no further force or effect, notwithstanding Lessee’s
due and timely exercise of the Option, if, after such exercise and prior to the
commencement of the extended term or completion of the purchase, (i) Lessee
fails to pay Rent for a period of 30 days after such Rent becomes due (provided
Lessor has provided Lessee with written notice of such failure to pay Rent), or
(ii) if Lessee commits a Breach of this Lease.

40.                    Multiple Buildings.
If the Premises are a part of a group of buildings controlled by Lessor, Lessee
agrees that it will abide by and conform to all reasonable rules and
regulations which Lessor may make from time to time for the management, safety,
and care of said properties, including the care and cleanliness of the grounds
and including the parking, loading and unloading of vehicles, and to cause its
employees, suppliers, shippers, customers, contractors and invitees to so abide
and conform.

41.                    Security Measures.
Lessee hereby acknowledges that the Rent payable to Lessor hereunder does not
include the cost of guard service or other security measures, and that Lessor
shall have no obligation whatsoever to provide same. Lessee assumes all
responsibility for the protection of the Premises, Lessee, its agents and
invitees and their property from the acts of third parties.

42.                    Reservations.
Lessor reserves to itself the right, from time to time, to grant, without the
consent or joinder of Lessee, such easements, rights and dedications that
Lessor deems necessary, and to cause the recordation of parcel maps and
restrictions, so long as such easements, rights, dedications, maps and
restrictions do not unreasonably interfere with the use of the Premises by
Lessee. Lessee agrees to sign any documents reasonably requested by Lessor to
effectuate any such easement rights, dedication, map or restrictions.

43.                    Performance Under Protest.
If at any time a dispute shall arise as to any amount or sum of money to be
paid by one Party to the other under the provisions hereof, the Party against
whom the obligation to pay the money is asserted shall have the right to make
payment “under protest” and such payment shall not be regarded as a voluntary
payment and there shall survive the right on the part of said Party to
institute suit for recovery of such sum. If it shall be adjudged that there was
no legal obligation on the part of said Party to pay such sum or any part
thereof, said Party shall be entitled to recover such sum or so much thereof as
it was not legally required to pay. A Party who does not initiate suit for the
recovery of sums paid “under protest” with 6 months shall be deemed to have
waived its right to protest such payment.

44.                    Authority; Multiple Parties; Execution.

(a)                    If either
Party hereto is a corporation, trust, limited liability company, partnership,
or similar entity, each individual executing this Lease on behalf of such
entity represents and warrants that he or she is duly authorized to execute and
deliver this Lease on its behalf. Each Party shall, within 30 days after
request, deliver to the other Party satisfactory evidence of such authority.

(b)                   If this Lease
is executed by more than one person or entity as “Lessee”, each such person or
entity shall be jointly and severally liable hereunder. It is agreed that any
one of the named Lessees shall be empowered to execute any amendment to this
Lease, or other document ancillary thereto and bind all of the named Lessees,
and Lessor may rely on the same as if all of the named Lessees had executed
such document.

(c)                    This Lease may
be executed by the Parties in counterparts, each of which shall be deemed an
original and all of which together shall constitute one and the same
instrument.

45.                    Conflict. Any
conflict between the printed provisions of this Lease and typewritten or
handwritten provisions shall be controlled by the typewritten or handwritten
provisions.

46.                    Offer.
Preparation of this Lease by either Party or their agent and submission of same
to the other Party shall not be deemed an offer to lease to the other Party.
The Lease is not intended to be binding until executed and delivered by all
Parties hereto.

47.                    Amendments.
This Lease may be modified only in writing, signed by the Parties in interest
at the time of the modification. As long as they do not materially change
Lessee’s obligations hereunder, Lessee agrees to make such reasonable
non-monetary modifications to this Lease as may be reasonably required by a
Lender in connection with the obtaining of normal financing or refinancing of
the Premises.

 17
 

49.                    Mediation and Arbitration of Disputes. An Addendum requiring
the Mediation and/or the Arbitration of all disputes between the Parties and/or
Brokers arising out of this Lease o is x is not attached
to this Lease.

50.                    Americans with Disabilities Act. Since compliance with the
Americans with Disabilities Act (ADA) is dependent upon Lessee’s specific use
of the Premises, Lessor makes no warranty or representation as to whether or
not the Premises comply with ADA or any similar legislation. In the event that
Lessee’s use of the Premises requires modifications or additions to the
Premises in order to be in ADA compliance, Lessee agrees to make any such
necessary modifications and/or additions at Lessee’s expense.

LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED
THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND BY THE EXECUTION
OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES
HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE
ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND
LESSEE WITH RESPECT TO THE PREMISES.

ATTENTION: NO REPRESENTATION OR
RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL ESTATE ASSOCIATION OR BY ANY
BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS
LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:

1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX
CONSEQUENCES OF THIS LEASE.

2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND
INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE
BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE
ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND
OPERATING SYSTEMS, AND THE SUITABILITY OF THE PREMISES FOR LESSEE’S INTENDED
USE.

WARNING: IF THE PREMISES IS
LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY
NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES
IS LOCATED.

The parties hereto have executed this Lease at the
place and on the dates specified above their respective signatures.

	
  Executed at: 

  	
   

  	
   

  	
  Executed at: 

  	
   

  
	
  On: 

  	
   

  	
   

  	
  On:

  	
   

  
	
   

  	
   

  	
   

  
	
  By LESSOR:

  	
   

  	
  By LESSEE:

  
	
  First Industrial, L.P., a Delaware limited
  partnership

  	
   

  	
  National RV, Inc., a California corporation 

  
	
  By: First Industrial
  Realty Trust, Inc., a Maryland 

  	
   

  	
   

  
	
  corporation and its
  sole general partner

  	
   

  	
  By: 

  	
  /s/ Tom Martini

  
	
  By: 

  	
   

  	
   

  	
  Name Printed:

  	
  Tom Martini

  
	
  Name Printed: 

  	
   

  	
   

  	
  Title: 

  	
  CFO

  
	
  Title: 

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name Printed:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Address:

  	
   

  
	
  Address: 

  	
  114 Pacifica, Suite 220

  	
   

  	
   

  	
   

  
	
  Irvine, California 92618

  	
   

  	
  Telephone:

  	
  (             )

  
	
  Telephone:

  	
  (949) 486 - 1970

  	
   

  	
  Facsimile:

  	
  (             )

  
	
  Facsimile: 

  	
  (949) 486 - 1971

  	
   

  	
  Federal ID No.

  	
   

  
	
  Federal ID No

  	
   

  	
   

  	
   

  	
   

  
																						

 

	
  BROKER:

  	
   

  	
  BROKER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
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  Federal ID No.

  	
   

  	
   

  	
  Federal ID No.

  	
   

  
																								

 

NOTICE: These forms are often modified to meet
changing requirements of law and industry needs. Always write or call to make
sure you are utilizing the most current form: AIR Commercial Real Estate
Association, 800 W 6th Street, Suite 800, Los Angeles, CA 90017. Telephone No. (213) 687-8777.
Fax No.: (213) 687-8616.

© Copyright 2001 - By AIR
Commercial Real Estate Association. All rights reserved.

 18
 

No part of these works
may be reproduced in any form without permission in writing.

 19

RIDER

This Rider (“Rider”)  is
a part of and incorporated into that certain Standard Industrial/Commercial
Single-Tenant Lease-Net (the “Original Lease;”
the Original Lease, together with the Rider, the “Lease”) dated as of May 18, 2007 by and
between First Industrial, L.P., a Delaware limited partnership (“Lessor”)
and National RV, Inc., a California corporation (“Lessee”) for the Premises known as 3411 N.
Perris Boulevard, Perris, California. Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed to them in the
Original Lease.

1.         Conflict. If there is a conflict between the terms of this Rider and the
Original Lease, the terms of this Rider shall control.

2.         Base Rent. Lessee shall pay Base Rent to Lessor in monthly installments, in
advance, on the first day of each and every calendar month during the Original
Term in the amounts and for the periods set forth below:

	
  Lease Period

  	
   

  	
  Monthly Base Rent

  	
   

  
	
  May 18, 2007 – May 31, 2008

  	
   

  	
  $

  	
  145,690.10

  	
   

  
	
  June 1, 2008 – May 31, 2009

  	
   

  	
  $

  	
  150,060.80

  	
   

  
	
  June 1, 2009 – May 31, 2010

  	
   

  	
  $

  	
  154,562.62

  	
   

  
	
  June 1, 2010 – May 31, 2011

  	
   

  	
  $

  	
  159,199.50

  	
   

  
	
  June 1, 2011 – May 31, 2012

  	
   

  	
  $

  	
  163,975.49

  	
   

  
	
  June 1, 2012 – May 31, 2013

  	
   

  	
  $

  	
  168,894.75

  	
   

  
	
  June 1, 2013 – May 31, 2014

  	
   

  	
  $

  	
  173,961.59

  	
   

  
	
  June 1, 2014 – May 31, 2015

  	
   

  	
  $

  	
  179,180.44

  	
   

  
	
  June 1, 2015 – May 31, 2016

  	
   

  	
  $

  	
  184,555.85

  	
   

  
	
  June 1, 2016 –
  May 31, 2017

  	
   

  	
  $

  	
  190,092.53

  	
   

  

 

3.         Damage

3.1       Damage Arising Prior to Date of Lease. Notwithstanding anything to the contrary set forth in the Lease,
including, but not limited to Section 9 of the Original Lease, in the event of
any damage or destruction or other casualty to the Premises (collectively, “Damage”)
that occurred prior to the Commencement Date, Lessee shall not be
permitted to (i) receive any rental abatement or (ii) terminate the Lease on
the basis of such Damage.

3.2       Completion of Repairs/Restoration. The following shall be added to the end of Section 9.3 of the Original
Lease: “Lessee shall have the right to terminate the Lease if Lessor fails to
substantially complete any repairs or restoration within one hundred eighty
(180) days following the occurrence of such damage or destruction provided (i)
such delay in Lessor’s

 1
 

completion of the repairs or
restoration is not due to the acts of Lessee or any party within the control of
Lessee or as a result of a labor dispute, public emergency, shortage of fuel,
supplies or labor or any other cause, whether similar or dissimilar, beyond
Lessor’s reasonable control and (ii) Lessee delivers a termination notice to
Lessor prior to the repairs or restoration being substantially completed.”

3.3       Damage to Particular Building(s). Notwithstanding anything to the contrary set forth in the Original
Lease, each of Building One, Building Two and Building Three shall be regarded
independently for purposes of determining Premises Total Destruction. In the
event that the damage or destruction to a particular Building constitutes
Premises Total Destruction, then the Lease shall terminate only with respect to
the impacted Building (and there shall automatically be a pro rata adjustment
to the Rent due and owing under this Lease from and after such termination
based on the revised square footage of the Premises), but the Lease shall
remain in full force and effect with respect to the other Buildings.

4.         Financial Information. From time to time during the Term but on no
more than one (1) occasion per calendar year except in connection with (i) a
financing or refinancing of the Premises by Lessor; (ii) a sale by Lessor of
the Premises; or (iii) a Default or Breach by Lessee of the Lease, Lessee shall
deliver to Lessor information and documentation describing and concerning
Lessee’s financial condition, and in form and substance reasonably acceptable
to Lessor, within fifteen (15) business days following Lessor’s written request
therefor. Upon Lessor’s request, Lessee shall provide to Lessor the most
currently available audited financial statement of Lessee; and if no such
audited financial statement is available, then Lessee shall instead deliver to
Lessor its most currently available balance sheet and income statement.
Furthermore, upon the delivery of any such financial information from time to
time during the Term, Lessee shall be deemed to automatically represent and warrant
to Lessor that the financial information delivered to Lessor is true, accurate
and complete, and that there has been no adverse change in the financial
condition of Lessee since the date of the then-applicable financial
information. Lessor shall maintain such financial information in strict
confidence, except that Lessor may disclose such financial information to
Lessor’s lenders and potential buyers provided that they shall maintain such
financial information in strict confidence as well.

5.         Option
to Renew.

5.1       Lessee shall have the option (“Renewal
Option”) to renew the Lease for two (2) consecutive terms of sixty
(60) months each (each, a “Renewal Term”),
on all the same terms and conditions set forth in the Lease, except that
initial Base Rent during each Renewal Term shall be equal to Fair Market Rent
(as defined in Section 5.2
below). Lessee shall deliver written notice to Lessor of Lessee’s election to
exercise the Renewal Option (“Renewal Notice”)  not less than six (6) months, nor more
than twelve (12) months, prior to the expiration date of the Original Term or
the then-applicable Renewal Term; and if Lessee fails to timely deliver the
Renewal Notice to Lessor, then Lessee shall automatically be deemed to have
irrevocably waived and relinquished the entire Renewal Option.

5.2       “Fair Market Rent” shall be determined by Lessor, in its sole, but good faith, discretion
based upon the annual base rental rates then being charged (as of the date on
which Lessee delivers the Renewal Notice) in the industrial market sector of
the geographic area

 2
 

where the buildings are
situated for comparable space and for a lease term commencing on or about the
commencement date of the applicable Renewal Term and equal in duration to the
applicable Renewal Term, taking into consideration: the geographic location,
quality and age of the applicable buildings; the location and configuration of
the relevant space within the applicable building; the extent of service to be
provided to the proposed lessee thereunder; applicable distinctions between “gross”
lease and “net” leases; the creditworthiness and quality of Lessee; leasing
commissions; and any other relevant term or condition in making such
evaluation, as reasonably determined by Lessor. In no event, however (and notwithstanding
any provision to the contrary in Section 5.3 below),
shall the Fair Market Rent ever be less than the rate of Base Rent in effect as
of the expiration date of the one (1) year period immediately preceding the
expiration date of the then-applicable Term (the “Renewal Rent Floor”). Lessor shall notify Lessee of Lessor’s
determination of Fair Market Rent for the applicable Renewal Term, in writing
(the “Base Rent Notice”) within
thirty (30) days after receiving the applicable Renewal Notice.

5.3       Lessee shall then have fifteen (15) days after Lessor’s delivery of the
Base Rent Notice in which to advise Lessor, in writing (the “Base Rent Response Notice”)  whether Lessee (i) is prepared to accept
the Fair Market Rent established by Lessor in the Base Rent Notice and proceed
to lease the Premises, during the applicable Renewal Term, at that Fair Market
Rent; or (ii) elects to withdraw and revoke its Renewal Notice, whereupon the
entire Renewal Option shall automatically be rendered null and void; or (iii)
elects to contest Lessor’s determination of Fair Market Rent. In the event that
Lessee fails to timely deliver the Base Rent Response Notice, then Lessee shall
automatically be deemed to have elected (i) above. Alternatively, if Lessee
timely elects (ii), then the Lease shall expire on the original expiration date
of the Original Term or the first Renewal Term, as the case may be. If,
however, Lessee timely elects (iii), then the following provisions shall apply:

5.3.1    The Fair Market Rent shall be determined by
either the Independent Brokers or the Determining Broker, as provided and
defined below, but in no  event
shall the Fair Market Rent be less than the Renewal Rent Floor.

5.3.2    Within fifteen (15) days after Lessee
delivers its Base Rent Response Notice, electing the option provided in clause
(iii) of Section 5.3, each of
Lessor and Lessee shall advise the other, in writing (the “Arbitration Notice”)  of both (i) the identity of the individual
that each of Lessor and Lessee, respectively, is designating to act as Lessor’s
or Lessee’s, as the case may be, duly authorized representative for purposes of
the determination of Fair Market Rent pursuant to this Section 5.3 (the “Representatives”); and (ii) a list of three (3) proposed
licensed real estate brokers, any of which may serve as one of the Independent
Brokers (collectively, the “Broker Candidates”).
Each Broker Candidate:

(A)      shall be duly licensed in the jurisdiction in which the Premises is
located;

(B)       shall have at least five (5) years’ experience, on a full-time basis,
leasing industrial space (warehouse/distribution/ancillary office) in the same
general geographic area as that in which the Premises is located, and at least
three (3) of those five (5)

 3
 

years of experience shall have been consecutive and
shall have elapsed immediately preceding the date on which Lessee delivers the
Renewal Notice; and

(C)       shall be independent and
have no then-pending (as of the date
Lessor or Lessee designates the broker as a Broker Candidate) brokerage
relationship, formal or informal, oral or written, with any or all of Lessor,
Lessee, and any affiliates of either or both of Lessor and Lessee (“Brokerage Relationship”),  nor may there have been any such Brokerage
Relationship at any time during the two (2) year period immediately preceding
the broker’s designation, by Lessor or Lessee, as a Broker Candidate.

5.3.3    Within fifteen (15) days after each of
Lessor and Lessee delivers its Arbitration Notice to the other, Lessor and
Lessee shall cause their respective Representatives to conduct a telephonic
meeting at a mutually convenient time. At that meeting, the two (2)
Representatives shall examine the list of six (6) Broker Candidates and shall
each eliminate two (2) names from the list on a peremptory basis. In order to
eliminate four (4) names, first, the Lessee’s Representative shall eliminate a
name from the list and then the Lessor’s Representative shall eliminate a name
therefrom. The two (2) Representatives shall alternate in eliminating names
from the list of six (6) Broker Candidates in this manner until each of them
has eliminated two (2) names. The two (2) Representatives shall immediately
contact the remaining two (2) Broker Candidates (the “Independent Brokers”),  and
engage them, as behalf of Lessor and Lessee, to determine the Fair Market Rent
in accordance with the provisions of this Section
5.3.

5.3.4    The Independent Brokers shall determine the
Fair Market Rent within thirty (30) days of their appointment. Lessor and Lessee shall each make a written submission to the
Independent Brokers (no more than ten (10) pages in length, in the aggregate,
per submitting party), advising of the rate that the submitting party believes
should be the Fair Market Rate, together with whatever written evidence or
supporting data that the submitting party desires in order to justify its
desired rate of Fair Market Rent; provided, in all events, however, that the
aggregate maximum length of each party’s submission shall not exceed ten (10)
pages (each such submission package, a “FMR
Submission”).  The
Independent Brokers shall be obligated to choose one (1) of the parties’
specific proposed rates of Fair Market Rent, without being permitted to
effectuate any compromise position

5.3.5    In the event, however, that the Independent
Brokers fail to reach agreement, within twenty (20) days after the date on
which both Lessor and Lessee deliver the FMR Submissions to the Independent
Brokers (the “Decision Period”),  as to which of the two (2) proposed rates
of Fair Market Rent should be selected, then, within five (5) days after the
expiration of the Decision Period, the Independent Brokers shall jointly select
a real estate broker who (x) meets all of the qualifications of a Broker
Candidate, but was not included in the original list of six (6) Broker
Candidates; and (y) is not affiliated with any or all of (A) either or both of
the Independent Brokers and (B) the real estate brokerage companies with which
either or both of the Independent Brokers is affiliated (the “Determining Broker”).  The Independent Brokers shall engage the
Determining Broker on behalf of Lessor and Lessee (but without expense to the
Independent Brokers), and shall deliver the FMR Submissions to the Determining
Broker within five (5) days after the date on which the Independent Brokers
select the Determining Broker pursuant to the preceding sentence (the “Submission Period”).

 4
 

5.3.6    The Determining Broker shall make a
determination of the Fair Market Rent within twenty (20) days after the date on
which the Submission Period expires. The Determining Broker shall be required
to select one of the parties’ specific proposed rates of Fair Market Rent,
without being permitted to effectuate any compromise position.

5.3.7    The decision of the Independent Brokers or
the Determining Broker, as the case may be, shall be conclusive and binding on
Lessor and Lessee, and neither party shall have any right to contest or appeal
such decision. Judgment may be entered, in a court of competent jurisdiction,
upon the decision of the Independent Brokers or the Determining Broker, as the
case may be.

5.3.8    In the event that the Original Term or the
first Renewal Term, as the case may be, expires and the subject Renewal Term
commences prior to the date on which the Independent Brokers or the Determining
Broker, as the case may be, renders their/its decision as to the Fair Market
Rent, then from the commencement date of the subject Renewal Term through the
date on which the Fair Market Rent is determined under this Section 5.3 (the “Determination Date”),  Lessee
shall pay monthly Base Rent to Lessor at a rate equal to 105% of the rate of
monthly Base Rent in effect on the expiration date of the Original Term or the
first Renewal Term, as applicable (the “Temporary
Base Rent”).  Within ten
(10) business days after the Determination Date, Lessor shall pay to Lessee, or
Lessee shall pay to Lessor, depending on whether the Fair Market Rent is less
than or greater than the Temporary Base Rent, whatever sum that Lessor or
Lessee, as the case may be, owes the other (the “Catch-Up Payment”),  based
on the Temporary Base Rent actually paid and the Fair Market Rent due (as
determined by the Independent Brokers or the Determining Broker, as the case
may be) during that portion of the Renewal Term that elapses before the
Catch-Up Payment is paid, in full (together with interest thereon, as provided
below). The Catch-Up Payment shall bear interest at the rate of Prime (defined
below), plus five percent (5.0%) per annum from the date each monthly component
of the Catch-Up Payment would have been due, had the Fair Market Rent been
determined prior to the commencement of the Renewal Term, through the date on
which the Catch-Up Payment is paid, in full (inclusive of interest thereon).
For purposes hereof, “Prime” shall
mean the per annum rate of interest publicly announced by Wells Fargo Bank,
N.A. (or its successor), from time to time, as its “prime” or “base”
or “reference” rate of interest.

5.3.9    The party whose proposed rate of Fair Market
Rent is not selected by the Independent Brokers or the Determining Broker, as
the case may be, shall bear all costs of all counsel, experts or other
representatives that are retained by both parties, together with all other
costs of the arbitration proceeding described in this Section 5.3, including, without limitation,
the fees, costs and expenses imposed or incurred by any or all of the
Independent Brokers and the Determining Broker.

5.3.10  Unless otherwise expressly agreed in writing,
during the period of time that any arbitration proceeding is pending under this
Section 5.3, Lessor and Lessee
shall continue to comply with all those terms and provisions of the Lease that
are not the subject of their dispute and arbitration proceeding, most
specifically including, but not limited to, Lessee’s monetary obligations under
the Lease; and, with respect to the payment of Base Rent during that

 5
 

portion of the Renewal Term that elapses during the
pendency of any arbitration proceeding under this Section 5.3, the provisions of Section 5.3.8 shall apply.

5.3.11  During any period of time that an arbitration
is pending or proceeding under this Section
5.3, Lessee shall have no right to assign the Lease or enter into
any sublease for all or any portion of the Premises, notwithstanding any
provision to the contrary in the Lease. Furthermore, if the Lease requires that
Lessor perform any lessee improvement work in connection with the Renewal Term,
Lessor shall be relieved of any such obligation during the pendency of any
arbitration proceeding under this Section 5.3.

6.         Obligations. The obligations of Lessee under the Lease shall be guaranteed by
Guarantor pursuant to the terms of the Guaranty attached hereto as Exhibit A.

7.         Security
Deposit.

7.1       L/C. Simultaneously
with the execution and delivery of the Lease, Lessee shall deliver to Lessor an
irrevocable letter of credit (“L/C”)
issued by a national U.S. banking institution reasonably acceptable to Lessor,
and in form and substance reasonably satisfactory to Lessor, in the amount set
forth in Section 1.6(b) of the Original Lease (the “Security”),  subject
to adjustment as set forth in Section 7.2 below,
representing security for the performance by Lessee of the covenants and
obligations set forth in the Lease. In addition to any other items that Lessor
may reasonably require, the L/C shall: (a) name Lessor as its beneficiary; (b)
have an initial term of no less than one year; (c) automatically renew for one
year periods unless the issuer provides Lessor with at least 60 days’ advance
written notice that the L/C will not be renewed; (d) the L/C shall permit
partial draws; (e) the sole and exclusive condition to any draw on the L/C
shall be that Lessor certifies to the issuer that one or more of the following
is/are true: (i) Lessee is the debtor in a pending bankruptcy proceeding; (ii)
Lessee is not in compliance with any of the terms of the Lease; and (iii) the
Guarantor is not in compliance with the terms of the Guaranty, and (f) be
transferable to successor lessors on as many occasions as desired. Notwithstanding
the foregoing, in the event that: (x) the expiration date of any L/C occurs
before the Expiration Date, (y) the issuer has advised Lessor that the issuer
will not automatically renew the L/C; and (z) Lessee fails to deliver to Lessor
at least forty-five (45) days prior to the expiration of such L/C either (A) an
amendment thereto extending the expiration date of such L/C for not less than
twelve (12) months, or (B) a new L/C, in form and substance in accordance with
(a) through (f) above and otherwise satisfactory to Lessor (in its reasonable
discretion), then Lessor may draw on such L/C and thereafter (in addition to
any other remedies available to Lessor under the Lease) apply the proceeds in
whatever manner or for whatever purpose Lessor reasonably deems appropriate in
the event that Lessee fails to timely comply with any or all of the covenants
and obligations imposed on Lessee under the Lease. If Lessee fails to comply
with any or all of its covenants or obligations under the Lease, Lessor may, without
notice to Lessee, draw on the L/C and apply the proceeds to cure such default
or pay any such sums then due from Lessee under the Lease (including amounts
due under Section 13.2 of the Original Lease as a consequence of termination of
the Lease or Lessee’s right to possession), in whatever manner Lessor deems
appropriate, in addition to any and all other remedies available to Lessor
under the Lease. Lessor shall not, however, have the right to draw down the L/C
in an amount in excess of the amount then due and owing by Lessee to Lessor as
reasonably determined by Lessor (provided, however, that if the Lessee is a
debtor in a pending bankruptcy proceeding, Lessor

 6
 

shall have the right to draw down the entire L/C). In
the event Lessor draws against the L/C, Lessee shall, upon demand, at Lessee’s
option, immediately either (aa) deposit with Lessor a sum equal to amount drawn
under the L/C or (bb) deliver to Lessor an additional L/C in an amount equal to
the amount drawn. If Lessee fully and faithfully complies with all the
covenants under the Lease, the Security (or any balance thereof) together with
Lessor’s written consent to the cancellation of any and all outstanding L/Cs
constituting part of the Security shall be delivered to Lessee within
forty-five (45) days after the last to occur of (1) the date the Term expires
or terminates or (2) delivery to Lessor of possession of the Premises. Lessor
may deliver the Security to any purchaser of Lessor’s interest in the Premises
or any successor lessor, if applicable, whereupon Lessor shall be discharged
from any further liability with respect to the Security. In the event that
Lessor exercises its right under the preceding sentence, Lessee shall fully
cooperate with Lessor, in all reasonable respects, to cause the L/C to be
assigned and conveyed to, or reissued to, such purchaser or successor lessor,
as the case may be, and Lessee shall bear any expenses incurred in connection
therewith.

7.2       L/C Adjustment. Not
more than one time per calendar year, Lessee shall have the right to submit to
Lessor a written request for a reduction in the amount of the L/C (the “L/C  Reduction
Request”). The L/C Reduction Request shall include (i) Lessee’s most
recent financial statement (including balance sheet and income statement), (ii)
such other information as may be reasonably necessary for the purpose of
determining Tangible Net Worth (defined below) and (iii) Lessee’s determination
of the amount of the L/C (“L/C Amount”) that
it is required to maintain (as determined in accordance with the table set
forth below). Upon receipt of the L/C Reduction Request, Lessor shall have
forty-five (45) days to review and either approve or disapprove of Lessee’s
determination of the L/C Amount. Such approval or disapproval shall be
delivered to Lessee in writing. In addition, Lessor shall have the right to
request the information from Lessee described in items (i) and (ii) above as
part of Lessor’s request for financial information pursuant to Section 4 of this Rider. The L/C Amount may
also increase from time to time in accordance with the table set forth below if
Lessee’s Tangible Net Worth decreases. In all events, the L/C Amount shall
correspond to Lessee’s Tangible Net Worth, as reasonably approved by Lessor, in
accordance with the table set forth below.

In the event that the L/C Amount is reduced from the
previous determination of the L/C Amount, Lessor shall cooperate with Lessee
and its financial institution, at no expense to Lessor, in order to reduce the
amount of the L/C to the new L/C Amount; provided, however, that in no event
shall Lessor be required to surrender the L/C that is in its possession unless
and until Lessor receives a replacement L/C in the new L/C Amount. In the event
that the L/C Amount is increased from the previous determination of the L/C
Amount, Lessee, at Lessee’s sole cost and expense, shall cause the L/C to be
increased to the newly determined L/C Amount within 45 days of Lessee’s receipt
of Lessor’s written determination of the new L/C Amount.

Notwithstanding anything to the contrary, Lessee shall
not be entitled to a reduction in the L/C Amount prior to submitting its
calendar year end 2008 financial statements and therefore, Lessee shall not
make a L/C Reduction Request until after January 1, 2009.

For purposes of this Section, “Tangible Net Worth”
shall mean (i) the aggregate of the assets of Lessee at such date, excluding
all intangible assets (i.e., unamortized debt, discount and expenses,
franchises, research and development, goodwill, trademarks, patents, copyrights,

 7
 

organizational expenses and similar intangible items) minus
(ii) the total liabilities of Lessee at such date.

	
  Tangible Net Worth

  	
   

  	
  L/C Amount

  	
   

  
	
  Less than
  $40,000,000

  	
   

  	
  $

  	
  3,250,000

  	
   

  
	
  Less than
  $45,000,000 but greater than or equal to $40,000,000

  	
   

  	
  $

  	
  2,600,000

  	
   

  
	
  Less than
  $50,000,000 but greater than or equal to $45,000,000

  	
   

  	
  $

  	
  1,950,000

  	
   

  
	
  Greater than or
  equal to $50,000,000

  	
   

  	
  $

  	
  650,000

  	
   

  

 

*If (i) Lessee would be entitled to a reduction in the
L/C Amount to $650,000, (ii) Lessee has submitted (or is then currently
submitting) its year end financial statements for calendar year 2010 and (iii)
Lessee has maintained a Tangible Net Worth of not less than $45,000,000 for the
previous then-ending six consecutive calendar quarters, then rather than reducing
the L/C Amount to, or maintaining the L/C Amount at, $650,000, the L/C Amount
shall be reduced to an amount equal to two months Rent.

Notwithstanding anything to the contrary set forth
herein, in no event shall Lessee be entitled to a reduction in the L/C if
Lessee is in Default of the Lease.

8.         Sinclair Street Lease.
Reference is hereby made to that certain AIR Commercial Real Estate Association
Standard Industrial/Commercial Single-Tenant Lease—Net, as amended by that
certain Rider, both dated as of the date hereof by and between Lessor and
Lessee with respect to the premises commonly known as 100 W. Sinclair Street,
Riverside, California (the “Sinclair Street
Lease”). So long as the lessor under this Lease is either (i) the
lessor under the Sinclair Street Lease or (ii) affiliated with the lessor under
the Sinclair Street Lease, then a Default or Breach under this Lease or the
Sinclair Street Lease, as the case may be, shall constitute a Default or Breach
under both this Lease and the Sinclair Street Lease, and, in such event, Lessor
(or, if applicable, such affiliate of Lessor) shall have the right to exercise
its remedies set forth in either or both of this Lease and the Sinclair Street
Lease.

9.         Chemicals/Wastes.
Lessor hereby approves Lessee’s use of the chemicals and wastes described on Exhibit B attached hereto provided that
such chemicals and wastes do not exceed the annual quantity set forth on Exhibit B that is applicable to the
particular chemical or waste, such chemicals and wastes are stored in the
manner described on Exhibit B and
the use of such chemicals and wastes otherwise complies with the terms of the
Lease.

10.       Repairs/Replacements.
Lessee shall, at Lessee’s sole cost and expense, perform the repairs and/or
replacements described on Exhibit C attached
hereto on or prior to (i) May 18, 2008 with respect to those items labeled as “Year 1 2007” on Exhibit C and (ii) May 18, 2009  with respect to those items labeled as “Year 2 2008” on Exhibit C. All  such repairs and/or

 8
 

replacements shall be performed in a manner reasonably
acceptable to Lessor and, Lessor shall have the right, from time to time, to
monitor and inspect Lessee’s performance of such repairs and/or replacements.

11.       Underground Storage Tank.
Lessor and Lessee acknowledge and agree that there is an underground storage
tank (a “UST”) located at the
Property. Promptly upon (and in all events, within 30 days after) the earlier
to occur of (i) the date on which Lessee ceases its use of the UST and (ii) the
expiration or earlier termination of this Lease, Lessee shall, at Lessee’s sole
cost and expense, cause (y) the UST to be removed from the Property, and
disposed of, and (z) clean-up, repair and remediate, as necessary in Lessor’s
reasonable judgment, in accordance with all Applicable Requirements and in a
manner approved by Lessor, any portions of the Property that are adversely
impacted by the UST (and its contents). The terms of this Section 11 shall survive the termination of
the Lease.

12.       Management Fee.
Lessee shall pay to Lessor, on a monthly basis as a component of Rent, a
management fee in the amount of 0.5% of the Base Rent for the Property.

13.       Counterparts. This
Rider may be executed in two (2) or more counterparts, each of which shall be
considered an original and all of which, when taken together, shall constitute
one (1) instrument. A facsimile counterpart of this Rider shall be deemed an
original for all relevant purposes.

[SIGNATURE PAGE TO
FOLLOW]

 9

IN WITNESS WHEREOF, the parties have executed this
Rider on the date first above written.

	
  

  	
  LESSOR:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  FIRST
  INDUSTRIAL, L.P., a
  Delaware limited

  partnership

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  First Industrial
  Realty Trust, Inc., a

  Maryland corporation and its sole general

  partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  LESSEE:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  NATIONAL
  RV, INC., a California corporation

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas J.
  Martini

  	
   

  
	
   

  	
  Its:

  	
  CFO

  	
   

  
							

 

 S-1

EXHIBIT
A

GUARANTY
OF LEASE

GUARANTY
OF LEASE (this “Guaranty”)
made as of May          2007, by NATIONAL RV HOLDINGS, INC., a Delaware
corporation, with an address at 100 West Sinclair, Perris, California 92571 (“Guarantor”),  to FIRST INDUSTRIAL, L.P., a
Delaware partnership, having an office at 311 South Wacker Drive, Suite 4000,
Chicago, Illinois 60606 (“Lessor”).

W
I  T  N  E  S  S  E  T  H:

WHEREAS:

A.        Lessor has been requested by National RV, Inc., a California
corporation, (“Lessee”), to enter
into a Standard Industrial/Commercial Single-Tenant Lease-Net dated as of the
date hereof, as supplemented by that certain Rider dated as of the date hereof
by and between Lessor and Lessee (as amended and supplemented, the “Lease”), whereby Lessor would lease to
Lessee, and Lessee would rent from Lessor, certain premises located 3411 N.
Perris Boulevard, Perris, California, as more particularly described in the
Lease (the “Premises”).

B.        Guarantor is the parent of Lessee, and will derive substantial economic
benefit from the execution and delivery of the Lease.

C.        Guarantor acknowledges that Lessor would not enter into the Lease unless
this Guaranty accompanied the execution and delivery of the Lease.

D.        Guarantor hereby acknowledges receipt of a copy of the Lease.

NOW, THEREFORE, in consideration of the execution and delivery of the Lease and of other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Guarantor covenants and agrees as follows:

1.         DEFINITIONS. Defined terms used in this Guaranty and not
otherwise defined herein have the meanings assigned to them in the Lease.

2.         COVENANTS OF GUARANTOR.

(a)       Guarantor absolutely, unconditionally and irrevocably guarantees, as a
primary obligor and not merely as a surety: (i) the full and prompt payment of
all Base Rent and additional Rent and all other rent, sums and charges of every
type and nature payable by Lessee under the Lease, and (ii) the full, timely
and complete performance of all covenants, terms, conditions, obligations and
agreements to be performed by Lessee under the Lease (all of the obligations
described in clauses (i) and (ii), collectively, the “Obligations”).  If
Lessee defaults under the Lease, Guarantor will, without notice or demand,
promptly pay and perform all of the Obligations, and pay to Lessor, when and as
due, all Base Rent and additional Rent payable by Lessee under the Lease,
together with all damages, costs and expenses to which Lessor is entitled
pursuant to any or all of the Lease, this Guaranty and Applicable Requirements.

 A-1
 

(b)       Guarantor agrees with Lessor that (i) any action, suit or proceeding of
any kind or nature whatsoever (an “Action”)
commenced by Lessor against Guarantor to collect Base Rent and additional Rent
and any other rent, sums and charges due under the Lease for any month or
months shall not prejudice in any way Lessor’s rights to collect any such
amounts due for any subsequent month or months throughout the Term in any
subsequent Action, (ii) Lessor may, at its option, without prior notice or
demand, join Guarantor in any Action against Lessee in connection with or based
upon either or both of the Lease and any of the Obligations, (iii) Lessor may
seek and obtain recovery against Guarantor in an Action against Lessee or in
any independent Action against Guarantor without Lessor first asserting,
prosecuting, or exhausting any remedy or claim against Lessee or against any
security of Lessee held by Lessor under the Lease, and (iv) Guarantor will be
conclusively bound by a judgment entered in any Action in favor of Lessor
against Lessee, as if Guarantor were a party to such Action, irrespective of
whether or not Guarantor is entered as a party or participates in such Action.

(c)       Any default or failure by the Guarantor to perform any of its Obligations
under this Guaranty shall be deemed an immediate default by Lessee under the
Lease, subject to any applicable cure and/or notice periods specifically
provided to Lessee in the Lease.

3.         GUARANTOR’S OBLIGATIONS
UNCONDITIONAL.

(a)       This Guaranty is an absolute and unconditional guaranty of payment and
of performance, and not of collection, and shall be enforceable against
Guarantor without the necessity of the commencement by Lessor of any Action
against Lessee, and without the necessity of any notice of nonpayment,
nonperformance or nonobservance, or any notice of acceptance of this Guaranty,
or of any other notice or demand to which Guarantor might otherwise be
entitled, all of which Guarantor hereby expressly waives in advance. The
obligations of Guarantor hereunder are independent of, and may exceed, the
obligations of Lessee.

(b)       If the Lease is renewed, or the Term extended, for any period beyond the
Expiration Date, either pursuant to any option granted under the Lease or
otherwise, or if Lessee holds over beyond the Expiration Date, the obligations
of Guarantor hereunder shall extend and apply to the full and faithful
performance and observance of all of the Obligations under the Lease accruing
during any renewal, extension or holdover period.

(c)       This Guaranty is a continuing guarantee and will remain in full force
and effect notwithstanding, and the liability of Guarantor hereunder shall be
absolute and unconditional irrespective of: (i) any modifications, alterations
or amendments of the Lease (regardless of whether Guarantor consented to or had
notice of same), (ii) any releases or discharges of Lessee other than the full
release and complete discharge of all of the Obligations, (iii) Lessor’s
failure or delay to assert any claim or demand or to enforce any of its rights
against Lessee, (iv) any extension of time that may be granted by Lessor to
Lessee, (v) any assignment or transfer of all or any part of Lessee’s interest
under the Lease (whether by Lessee, by operation of law, or otherwise), (vi)
any subletting, concession, franchising, licensing or permitting of the
Premises, (vii) any changed or different use of the Premises, (viii) any other
dealings or matters occurring between Lessor and Lessee, (ix) the taking by
Lessor of any additional guarantees, or the receipt by Lessor of any
collateral, from other persons or entities,

 A-2
 

(x) the release by Lessor of
any other guarantor, (xi) Lessor’s release of any security provided under the
Lease, (xii) Lessor’s failure to perfect any Lessor’s lien or other lien or
security interest available under applicable Laws, (xiii) any assignment by
Lessor, at any time and from time to time, of its interest under the Lease or
any portion thereof, either absolutely or as security, (xiv) Lessor’s
foreclosure or other realization on any security or collateral for the
performance by Lessee of its obligations under the Lease; and (xv) if Lessor
shall recover possession of the Premises by summary proceedings or otherwise,
Lessor at its option may repair, subdivide, alter or change the character of
the Premises from time to time as Lessor may deem appropriate, and may relet
the Premises or any part thereof for the whole or any part of the balance of
the original term of the Lease and for such rent and upon such other terms and
conditions as Lessor may determine. Without limiting the foregoing, this
Guaranty shall be applicable to any obligations of Lessee arising in connection
with a termination of the Lease, whether voluntary or otherwise. Guarantor
hereby consents, prospectively, to Lessor’s taking or entering into any or all
of the foregoing actions or omissions. For purposes of this Guaranty and the
obligations and liabilities of Guarantor hereunder, “Lessee” shall be deemed to
include any and all concessionaires, licensees, franchisees, department
operators, assignees, sublessees, permittees or others directly or indirectly
operating or conducting a business in or from the Premises and/or the Property,
as fully as if any of the same were the named Lessee under the Lease.

(d)       Guarantor hereby expressly agrees that the validity of this Guaranty and
the obligations of Guarantor hereunder shall in no way be terminated, affected,
diminished or impaired by reason of the assertion or the failure to assert by
Lessor against Lessee, of any of the rights or remedies reserved to Lessor
pursuant to the provisions of the Lease or by relief of Lessee from any of
Lessee’s obligations under the Lease or otherwise by (i) the release or
discharge of Lessee in any state or federal creditors’ proceedings,
receivership, bankruptcy or other proceeding; (ii) the impairment, limitation
or modification of the liability of Lessee or the estate of Lessee in
bankruptcy, or of any remedy for the enforcement of Lessee’s liability under
the Lease, resulting from the operation of any present or future provision of
the United States Bankruptcy Code (11 U.S.C. § 101 et seq., as amended), or
from other statute, or from the order of any court; or (iii) the rejection,
disaffirmance or other termination of the Lease in any such proceeding. This
Guaranty shall continue to be effective if at any time the payment of any
amount due under the Lease or this Guaranty is rescinded or must otherwise be
returned by Lessor for any reason, including, without limitation, the
insolvency, bankruptcy, liquidation or reorganization of Lessee, Guarantor or
otherwise, all as though such payment had not been made, and, in such event,
Guarantor shall pay to Lessor an amount equal to any such payment that has been
rescinded or returned.

4.         WAIVERS OF GUARANTOR.

(a)       Without limitation of the foregoing, Guarantor waives (i) notice of
acceptance of this Guaranty, and all notices of dishonor, nonpayment or
nonperformance, (ii) notices of the creation, renewal, extension, assignment or
modification of the Lease, (iii) notice of any actions taken by Lessor or
Lessee under the Lease or any other agreement or instrument relating thereto,
(iv) notice of any and all defaults by Lessee in the payment of Base Rent and
additional Rent or other rent, charges or amounts, or of any other defaults by
Lessee under the Lease, (v) all other notices, demands and protests, and all
other formalities of every kind in

 A-3
 

connection with the
enforcement of the Obligations, omission of or delay in which, but for the
provisions of this Section 4,
might constitute grounds for relieving Guarantor of its obligations hereunder,
(vi) any requirement that Lessor protect, secure, perfect, insure or proceed
against any security interest or lien, or any property subject thereto, or
exhaust any right or take any action against Lessee or any collateral, (vii)
the benefit of any statute of limitations affecting Guarantor’s liability under
this Guaranty, and (viii) all diligence, protests, presentations or
presentments. Notwithstanding anything to the contrary set forth in this
Guaranty, Guarantor may assert or present (and does not waive) any right,
defense, offset or benefit (excluding those defenses afforded by the bankruptcy
or insolvency laws described in Section 3(d) above) that is available to or
possessed by (and has not yet been asserted by) Lessee pursuant to the Lease in
any action by Lessor to enforce or proceed under this Guaranty.

(b)       GUARANTOR HEREBY WAIVES TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM BROUGHT BY ANY PERSON OR ENTITY WITH RESPECT TO ANY MATTER
WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH: THIS GUARANTY; THE
LEASE; ANY LIABILITY OR OBLIGATION OF LESSEE IN ANY MANNER RELATED TO THE
PREMISES AND/OR THE PROPERTY; ANY CLAIM OF INJURY OR DAMAGE IN ANY WAY RELATED
TO THE LEASE, THE PREMISES AND/OR THE PROPERTY; ANY ACT OR OMISSION OF LESSEE,
ITS AGENTS, EMPLOYEES, CONTRACTORS, SUPPLIERS, SERVANTS, CUSTOMERS,
CONCESSIONAIRES, FRANCHISEES, PERMITTEES OR LICENSEES; OR ANY ASPECT OF THE USE
OR OCCUPANCY OF, OR THE CONDUCT OF BUSINESS IN, ON OR FROM THE PREMISES AND/OR
THE PROPERTY. EXCEPT FOR ANY RIGHTS OF LESSEE THAT GUARANTOR RETAINS THE RIGHT
TO ASSERT, GUARANTOR SHALL NOT IMPOSE ANY COUNTERCLAIM OR COUNTERCLAIMS OR
CLAIMS FOR SET-OFF, RECOUPMENT OR DEDUCTION OF RENT IN ANY ACTION BROUGHT BY
LESSOR AGAINST GUARANTOR UNDER THIS GUARANTY. GUARANTOR SHALL NOT BE ENTITLED
TO MAKE, AND HEREBY WAIVES, ANY AND ALL DEFENSES AGAINST ANY CLAIM ASSERTED BY
LESSOR OR IN ANY SUIT OR ACTION INSTITUTED BY LESSOR TO ENFORCE THIS GUARANTY
OR THE LEASE. IN ADDITION, GUARANTOR HEREBY WAIVES, BOTH WITH RESPECT TO THE
LEASE AND WITH RESPECT TO THIS GUARANTY, ANY AND ALL RIGHTS WHICH ARE WAIVED BY
LESSEE UNDER THE LEASE, IN THE SAME MANNER AS IF ALL SUCH WAIVERS WERE FULLY
RESTATED HEREIN. THE LIABILITY OF GUARANTOR UNDER THIS GUARANTY IS PRIMARY AND
UNCONDITIONAL.

(c)       Without limiting the generality of the foregoing, Guarantor hereby
waives all of the rights and defenses which Guarantor may have under Civil Code
Section 2819, and by doing so Guarantor specifically agrees that Guarantor’s
liability hereunder shall continue even if Lessor alters any obligations of the
Lessee under the Lease in any respect or if Guarantor’s remedies or rights
against Lessee are in any way impaired or suspended without notice to or the
consent of Guarantor. Guarantor hereby waives any and all rights and defenses
which Guarantor may have under Civil Code Section 2810 and by doing so
Guarantor specifically agrees that Guarantor shall remain liable even if Lessee
had no liability under the Lease at the time of execution or if Lessee
thereafter ceased or hereafter ceases to be liable. This Guaranty and the liability of Guarantor hereunder shall not be
altered, limited or otherwise affected by reason of the incapacity, death, disability of Lessee or
any other person or the discharge of Lessee’s

 A-4
 

liability hereunder by
operation of law or otherwise. Guarantor further hereby waives any and all
rights and defenses which Guarantor may have under Civil Code Section 2809; by
reason of such waiver Guarantor specifically agrees that Guarantor’s liability
under this Guaranty may be larger in amount or otherwise more burdensome than
that of Lessee under the Lease.

(d)       Guarantor hereby waives any and all rights and defenses which Guarantor
may have under Civil Code Sections 2845, 2849 and 2850, including any right
which Guarantor may have to require Lessor to: (i) proceed against Lessee or
any other guarantor, including any other Guarantor hereunder; (ii) proceed
against or exhaust any security or collateral Lessor may at any time hold,
including any security deposit under the Lease or any security given by
Guarantor; or (iii) pursue or exercise any other right or remedy which Lessor
may now or hereafter have under the Lease or at law or in equity, including any
right or remedy for the benefit of Guarantor. Lessor may exercise any and all
rights or remedies available to Lessor against Lessee or any other guarantor
(including any Guarantor hereunder) or against any security or collateral held
by Lessor without in any way limiting or impairing Lessor’s rights and remedies
against Guarantor under this Guaranty.

5.         SUBROGATION.  Guarantor
hereby waives all rights and defenses which Guarantor may have under Civil Code
Sections 2847 and 2848. As a result of such waivers (and the waiver of Civil
Code Section 2849 in Section 4(d) above), Guarantor shall have no right of
subrogation or reimbursement against Lessee, no right of subrogation against
any collateral or security which Lessor may hold under the Lease or otherwise
(including any security deposit), and no right of contribution against any
other guarantor (including any Guarantor hereunder) unless and until all
obligations under the Lease have been duly paid and performed. Guarantor shall
not be subrogated, and hereby waives and disclaims any claim or right against
Lessee by way of subrogation or otherwise, to any of the rights of Lessor under
the Lease or otherwise, or in either or both of the Premises and the Property,
which may arise by any of the provisions of this Guaranty or by reason of the
performance by Guarantor of any of its Obligations hereunder. Guarantor shall
look solely to Lessee for any recoupment of any payments made or costs or
expenses incurred by Guarantor pursuant to this Guaranty. If any amount shall
be paid to Guarantor on account of such subrogation rights at any time when all
of the Obligations shall not have been paid and performed in full, Guarantor
shall hold such amount in trust for Lessor and shall pay such amount to Lessor
immediately following receipt by Guarantor, to be applied against the
Obligations, whether matured or unmatured, in such order as Lessor may
determine. Guarantor hereby subordinates any liability or indebtedness of Lessee
now or hereafter held by Guarantor to the obligations of Lessee to Lessor under
the Lease. To the extent that such foregoing waiver is held by a court of
competent jurisdiction to be void or voidable, Guarantor’s rights of
subrogation or reimbursement against Lessee and against any collateral or
security held by Lessor under the Lease or otherwise shall be junior and
subordinate to Lessor’s rights and remedies against Lessee and to Lessor’s
right, title and interest in such collateral or security; and Guarantor’s right
of contribution against any other guarantor, if any, shall be junior and
subordinate to any and all rights and remedies which Lessor may have against
such other guarantor. Guarantor acknowledges that Lessor’s exercise of certain
of the rights and remedies available to Lessor may impair or extinguish
Guarantor’s right of subrogation or reimbursement against Lessee or right of
contribution from any other guarantor, with the result that Guarantor may
incur a partially or totally non-reimbursable liability under this Guaranty;
Guarantor hereby waives any defense
based upon the foregoing.

 A-5
 

6.         REPRESENTATIONS AND WARRANTIES OF GUARANTOR.
Guarantor represents and warrants that:

(a)       Guarantor is a corporation; has all requisite power and authority to
enter into and perform its obligations under this Guaranty; and this Guaranty
is valid and binding upon and enforceable against Guarantor without the
requirement of further action or condition.

(b)       The execution, delivery and performance by Guarantor of this Guaranty
does not and will not (i) contravene any Applicable Requirements or any
contractual restriction binding on or affecting Guarantor or any of its
properties, or (ii) result in or require the creation of any lien, security
interest or other charge or encumbrance upon or with respect to any of its
properties.

(c)       There is no action, suit or proceeding pending or threatened against or
otherwise affecting Guarantor before any court or other governmental authority
or any arbitrator that may materially adversely affect Guarantor’s ability to
perform its obligations under this Guaranty.

(d)       Guarantor’s principal place of business is 100 West Sinclair, Perris,
California 92571.

(e)       Guarantor is the parent of Lessee.

7.         NOTICES. Any consents, notices, demands, requests,
approvals or other communications given under this Guaranty shall be given as
provided in the Lease, as follows:

(a)       if to Guarantor at Guarantor’s address set forth on the first page of
this Guaranty; and

(b)       if to Lessor, at Lessor’s address set forth on the signature page of the
Lease (with a copy to Lessor’s attorney as also set forth on the signature page
to the Lease); or to such other addresses as either Lessor or Guarantor may
designate by notice given to the other in accordance with the provisions of
this Section 7.

8.         CONSENT TO JURISDICTION;
WAIVER OF IMMUNITIES.  The undersigned hereby (a) consents and
submits to the jurisdiction of the courts of the State of California and the
federal courts sitting in the State of California and shall be subject to
service of process in the State of California with respect to any dispute there
arising, directly or indirectly, out of this Guaranty, (b) waives any
objections which the undersigned may have to the laying of venue in any such
suit, action or proceeding in either such court, (c) agrees to join Lessor in
any petition for removal to either such court, (d) agrees to join Lessor in any
petition for removal to either and such court and (e) irrevocably designates
and appoints Lessee as its authorized agent to accept and acknowledge on its
behalf service of process with respect to any disputes arising, directly or
indirectly, out of this Guaranty. The undersigned hereby acknowledges and
agrees that Lessor may obtain personal jurisdiction and perfect service of
process through Lessee as the undersigned agent, or by any other means now or
hereafter permitted by applicable law. Nothing above shall limit Lessor’s
choice of forum for purposes of enforcing this Guaranty.

 A-6
 

9.         MISCELLANEOUS.

(a)       Guarantor further agrees that Lessor may, without notice, assign this
Guaranty in whole or in part. If Lessor disposes of its interest in the Lease, “Lessor,” as used in this Guaranty, shall
mean Lessor’s successors and assigns. This Guaranty may not be assigned by
Guarantor, without Lessor’s prior written consent, which consent shall not be
unreasonably withheld, conditioned or delayed, it being agreed that it is
unreasonable for Lessor to withhold its consent to such assignment in the event
Guarantor no longer owns a controlling interest in Lessee and the tangible net
worth (as determined in accordance with generally accepted accounting
principles (“GAAP”)) of the
proposed replacement guarantor is not less than the tangible net worth (as
determined in accordance with GAAP) of Guarantor as of the date of this
Guaranty.

(b)       In the event of any litigation between the parties hereto, the court in
such action shall award to the party in whose favor a judgment is entered a
reasonable sum as attorneys’ fees and costs, which sum shall be paid by the
losing party.

(c)       Guarantor shall, from time to time within ten (10) days after receipt of
Lessor’s request, execute, acknowledge and deliver to Lessor a statement
certifying that this Guaranty is unmodified and in full force and effect (or if
there have been modifications, that the same is in full force and effect as
modified and stating such modifications). Such certificate may be relied upon
by any prospective purchaser, lessor or lender of all or a portion of the
Premises and/or Property.

(d)       If any portion of this Guaranty shall be deemed invalid, unenforceable
or illegal for any reason, such invalidity, unenforceability or illegality
shall not affect the balance of this Guaranty, which shall remain in full force
and effect to the maximum permitted extent.

(e)       The provisions, covenants and guaranties of this Guaranty shall be
binding upon Guarantor and its heirs, successors, legal representatives and
assigns, and shall inure to the benefit of Lessor and its successors and assigns,
and shall not be deemed waived or modified unless such waiver or modification
is specifically set forth in writing, executed by Lessor or its successors and
assigns, and delivered to Guarantor.

(f)        Whenever the words “include”, “includes”, or “including” are used in
this Guaranty, they shall be deemed to be followed by the words “without
limitation”, and, whenever the circumstances or the context requires, the
singular shall be construed as the plural, the masculine shall be construed as
the feminine and/or the neuter and vice  versa. This Guaranty
shall be interpreted and enforced without the aid of any canon, custom or rule
of law requiring or suggesting construction against the party drafting or
causing the drafting of the provision in question.

(g)       Each of the rights and remedies herein provided are cumulative and not
exclusive of any rights or remedies provided by law or in the Lease or this
Guaranty.

(h)       The provisions of this Guaranty shall be governed by and interpreted solely
in accordance with the internal laws of the State of California, without giving
effect to the principles of conflicts of
law.

 A-7
 

(i)        The execution of this Guaranty prior to execution of the Lease shall not
invalidate this Guaranty or lessen the Obligations of Guarantor hereunder.

(j)        Guarantor shall deliver to Lessor, upon request by Lessor, financial
statements for Guarantor prepared by an independent public accountant in the
ordinary course of the business and in accordance with customary accounting
practices applicable to business operations similar (in terms of the entity’s
domicile and whether such entity is a privately held or a public company) to
that of Guarantor.

(k)       Guarantor acknowledges that this Guaranty has been fully negotiated at
arms’ length between Guarantor and Lessor, and Guarantor has carefully read and
reviewed this Guaranty and understands its contents. Guarantor has had the
opportunity to review this Guaranty with, and seek the advice of, legal counsel
and/or other representatives chosen by Guarantor. Guarantor acknowledges that
Lessor’s counsel has drafted this Guaranty and, notwithstanding such fact, this
Guaranty shall not be construed against Lessor on account thereof.

[Signature
Page to Follow]

 A-8
 

IN WITNESS WHEREOF,
Guarantor has executed this Guaranty as of the day and year first above
written.

 

	
  

  	
   

  	
   

  	
  GUARANTOR:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  NATIONAL
  RV HOLDINGS, INC., a Delaware

  corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Thomas J. Martini

  
	
   

  	
   

  	
   

  	
   

  	
  Name:

  	
  THOMAS J. MARTINI

  
	
   

  	
   

  	
   

  	
   

  	
  Its:

  	
  CFO

  
							

 

 A-9

Exhibit B

	
  Chemical/Waste

  	
   

  	
  Approximate Annual

  Quantity Used or Generated

  	
   

  	
  Storage Containers(s)

  (i.e. Drums, Cartons, Totes,

  Bags ASTs, USTs etc)

  
	
  Urethane Paints

  	
   

  	
  13,200 Gal.

  	
   

  	
  55 gal. drum

  
	
  Urethane Based Adhesives

  	
   

  	
  4,500 Gal.

  	
   

  	
  55 gal. drum

  
	
  Acetone Based Paints

  	
   

  	
  2,800 Gal.

  	
   

  	
  55 gal. drum

  
	
  Acetone Based Adhesives

  	
   

  	
  1,200 Gal.

  	
   

  	
  55 gal. drum

  
	
  Oil/Lubricants

  	
   

  	
  600 Gal.

  	
   

  	
  55 gal. drum

  
	
  Fiberglass Resins

  	
   

  	
  78,000 Gal.

  	
   

  	
  Totes

  
	
  Fiberglass Gel Coats

  	
   

  	
  16,000 Gal.

  	
   

  	
  Totes

  
	
  Acetone

  	
   

  	
  1,500 Gal.

  	
   

  	
  55 gal. drum

  
	
  Lacquer Thinner

  	
   

  	
  2,000 Gal.

  	
   

  	
  55 gal. drum

  
	
  Diesel Fuel

  	
   

  	
  2,000 Gal.

  	
   

  	
  Above Ground
  Tank

  
	
  Unleaded gasoline

  	
   

  	
  10,000 Gal.

  	
   

  	
  Underground Tank

  
	
  Propane

  	
   

  	
  500 Gal

  	
   

  	
  Above Ground
  Tank

  
	
  Oxygen

  	
   

  	
  110 Cylinders

  	
   

  	
  Tanks/Cylinder

  
	
  Acetylene

  	
   

  	
  110 Cylinders

  	
   

  	
  Tanks/Cylinder

  
	
  Anti-freeze

  	
   

  	
  600 Gal.

  	
   

  	
  55 gal. drum

  
	
  MEKP

  	
   

  	
  600 Gal.

  	
   

  	
  55 gal. drum

  
	
  Argon/Carbon Dioxide Mix

  	
   

  	
  110 Cylinders

  	
   

  	
  Cylinder

  

 

Exhibit C

Deferred Maintenance

3411 Perris Blvd, Perris, CA

 

	
  Property Component

  	
   

  	
  Quantity

  	
   

  	
  Units

  	
   

  	
  Cost

  	
   

  	
  Year 1

  	
   

  	
  Year 2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Site

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Replace and restripe
  the asphalt pavement at the west visitor/ employee parking area outside the
  fenced area.

  	
   

  	
  35,000

  	
   

  	
  sf

  	
   

  	
  $

  	
  87,500

  	
   

  	
   

  	
   

  	
  $

  	
  87,500

  	
   

  
	
  Patch the remaining
  asphalt pavement at various locations as needed throughout the site

  	
   

  	
  10,000

  	
   

  	
  sf

  	
   

  	
  $

  	
  35,000

  	
   

  	
   

  	
   

  	
  $

  	
  35,000

  	
   

  
	
  Seal cracks, seal coat,
  and restripe the remaining asphalt pavement as needed throughout the site

  	
   

  	
  200,000

  	
   

  	
  sf

  	
   

  	
  $

  	
  40,000

  	
   

  	
   

  	
   

  	
  $

  	
  40,000

  	
   

  
	
  Rout and seal the
  cracks in the concrete pavement as needed throughout the site

  	
   

  	
  1,000

  	
   

  	
  lf

  	
   

  	
  $

  	
  2,000

  	
   

  	
  $

  	
  2,000

  	
   

  	
   

  	
   

  
	
  Add gravel and regrade
  the gravel employee parking areas located at the east side of the site

  	
   

  	
  140,000

  	
   

  	
  sf

  	
   

  	
  $

  	
  14,000

  	
   

  	
  $

  	
  14,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Structural, Exterior, &
  Roofing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Rout and seal cracks in
  the slabs-on-grade as needed throughout all three buildings.

  	
   

  	
  1,000

  	
   

  	
  lf

  	
   

  	
  $

  	
  2,000

  	
   

  	
  $

  	
  2,000

  	
   

  	
   

  	
   

  
	
  Replace the damaged
  corrugated metal wall panels on all the buildings

  	
   

  	
  3,600

  	
   

  	
  sf

  	
   

  	
  $

  	
  23,400

  	
   

  	
  $

  	
  11,700

  	
   

  	
  $

  	
  11,700

  	
   

  
	
  On all three buildings
  there is a damaged roll-up bay door. These doors need to be replaced.

  	
   

  	
  3

  	
   

  	
  each

  	
   

  	
  $

  	
  7,500

  	
   

  	
  $

  	
  7,500

  	
   

  	
   

  	
   

  
	
  Proactive roof repairs
  need to be conducted on Building 1 (See attached proactive maintenance list)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  22,000

  	
   

  	
   

  	
   

  
	
  Proactive roof repairs
  need to be conducted on Building 2 (See attached proactive maintenance list)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  17,600

  	
   

  	
   

  	
   

  
	
  Proactive roof repairs
  need to be conducted on Building 3 (See attached proactive maintenance list)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  24,800

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fire Protection and Life Safety
  / Code Compliance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  On all the buildings,
  install panic hardware at the secondary exit doors.

  	
   

  	
  30

  	
   

  	
  each

  	
   

  	
  $

  	
  24,000

  	
   

  	
  $

  	
  24,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ADA Upgrades

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Add nine ADA compliant
  accessible parking spaces. Three adjacent to Building 1 and six adjacent to
  Building 2.

  	
   

  	
  9

  	
   

  	
  each

  	
   

  	
  $

  	
  1,350

  	
   

  	
   

  	
   

  	
  $

  	
  1,350

  	
   

  
	
  Add two van accessible
  parking spaces. One adjacent to Building 1 and one adjacent to Building 2.

  	
   

  	
  2

  	
   

  	
  each

  	
   

  	
  $

  	
  300

  	
   

  	
   

  	
   

  	
  $

  	
  300

  	
   

  
	
  Add accessible TDD pay
  phones adjacent to at least one of the pay phones at each of the buildings.

  	
   

  	
  3

  	
   

  	
  each

  	
   

  	
  $

  	
  2,850

  	
   

  	
  $

  	
  2,850

  	
   

  	
   

  	
   

  
	
  Add or replace standard
  drinking fountains with accessible hi-low drinking fountains at each of the
  buildings.

  	
   

  	
  3

  	
   

  	
  each

  	
   

  	
  $

  	
  6,600

  	
   

  	
  $

  	
  6,600

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTALS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  135,050

  	
   

  	
  $

  	
  175,850

  	
   

  
	
  Inflation at 3% per
  year

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  135,050

  	
   

  	
  $

  	
  181,126

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
   

  	
   

  	
  $

  	
  316,176

  	
   

  

 

The proactive maintenance repairs and measures
recommended for these buildings include the following:

A.                     A
comprehensive inspection of the metal roof panels should be performed. All
loose fasteners should be re-tightened or replaced. All missing fasteners must
be replaced.

B.                       All
the metal curbs, large duct vents, roof penetrations with or without flashings,
roof hatches, laps/seams of the flat fiberglass skylight panels and domed
skylights with repairs, and the surrounding vicinity should be treated and
resealed with a metal roof maintenance elastomeric coating system with one
layer of polyester fabric reinforcement. Prior to application of the metal roof
maintenance elastomeric coating, the metal surface must be thoroughly cleaned and
properly prepared. All existing roof cement must be removed from metal
surfaces, and loose elastomeric sealant. The removal of the existing layers of
roof cement or sealant on the backside of the curbs and large duct vents (where
water is damming) is imperative to possibly provide openings that will allow
water to flow out and around the duct vents and curbs. All cut panel ribs must
be provided with pre-molded closures and side overlaps. Overlap edges must be
treated with polyester fabric embedded and covered with flashing-grade
elastomeric sealant.

C.                       The deflected metal roof
panels should be repaired and pulled back into shape, then overlaid with new
metal roof panels for additional support, if necessary. The edges of the new
panel patches must be fastened and should be sealed with polyester fabric
embedded and covered with flashing-grade elastomeric sealant and elastomeric
coating.

D.                      Kinked roof panel ribs
with rips or fractures should be repaired with polyester fabric embedded and
covered with flashing-grade elastomeric sealant and elastomeric coating.

E.                        A corroded roof panel on
Building 1 should be replaced.

F.                        Panel
end overlap edges and side overlaps that are open, suspect, and/or have been
resealed with roof cement, should be resealed

with polyester fabric embedded and covered with
flashing-grade elastomeric sealant and elastomeric coating.

G.                       Rusting roof panels should be treated with rust-inhibiting primer and covered
with the recommended elastomeric coating system.

H.                      The top edge of the counterflashing metal along the sidewalls of the
main roof section of Building 3 should be resealed with urethane sealant or a
self-adhering flashing tape. All loose sections of the counterflashing metal
must be secured with screws through neoprene/steel washers.

I.                           The
steel angle bars supporting the duct of a swamp cooler on Building 1 should be
re-designed and relocated on top of the roof panel ribs to allow water to flow.
On Building 2,  the wood sleeper
supports of the air conditioning units which are screwed into the roof panels
should be re-designed and relocated.

J.                          All
open top edges of pipe flashings should be resealed with elastomeric sealant
and properly detailed before the application of the elastomeric coating system.
The floodlight fixture on Building 5 that has dropped down into the opening
must be secured.

K.                      Pipe penetrations without
flashings should be provided with metal roof flashings that have rubber
sleeves/boots with aluminum flanged base rings to conform to the roof panel
profile.

L.                        The metal roof flashings
of the heat stacks on Building 3 must be fastened using hex head self-tapping
screws with bonded neoprene and steel washers driven into the aluminum flanged
base ring, spaced 1 inch on center.

M.                   Sheet
metal rain collars should be provided and installed on the heat stacks to cover
the top edge of the flashings. All missing heat vent covers should be replaced.

N.                      Open side laps of ridge
plates should be resealed with polyester fabric embedded and covered with
flashing-grade elastomeric sealant and the elastomeric coating system.

O.                      All screw holes on the
roof panels should be sealed with polyester fabric embedded and covered with
flashing-grade elastomeric sealant and the elastomeric coating.

P.                        The broken tiles on the
front office roof of Building 1 should be replaced.

Q.                      A general clean-up of all
roofs and gutters should be performed to remove all scattered screws and
accumulated dirt, debris, and plant growth.

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