Document:

exv10w14

Exhibit
10.14

LEASE AGREEMENT

This LEASE AGREEMENT (“LEASE”), made this 23 day of July 2008, by and among Tactical Warehouse,
LLC, a Virginia limited liability company (hereinafter called “Landlord”), whose mailing address
is 477 Viking Drive Suite 350, Virginia Beach, Virginia 23452, and Atlantic Diving Supply, Inc., a
Virginia corporation, (hereinafter called “Tenant”), whose mailing address is 477 Viking Drive,
Suite 350, Virginia Beach, Virginia 23452.

W I T N E S S E T H:

1. Demised Premises. Landlord hereby leases and demises unto Tenant, and Tenant hereby
takes and leases from Landlord, that certain building and land located at 2505, 2512, 2520 and
2528 Aviator Drive, Virginia Beach, Virginia 23453 (collectively, the “Demised Premises).

2. Term. The term of this Lease shall commence on the 23rd day of July, 2008, and shall
end on July 22, 2013.

3. Base Rent.

     (a) Landlord reserves and Tenant covenants to pay to Landlord, in advance on the first day of
each month during the term, without demand therefore being made and without offset, base rent as
follows:

July 23, 2008 — July 22, 2009 — $47,500.00 per month, gross

Rent shall increase at the rate of three percent (3%) per year for each additional
year during the Term

The first month’s rent ($47,500.00) plus the security deposit as provided in Paragraph 8 shall be
paid by Tenant upon the full execution of this lease by all parties.

     (b) Tenant covenants to pay said rent and all other sums due to Landlord made payable to
Tactical Warehouse, LLC at the office of the Landlord, 477 Viking Drive, Suite 350, Virginia Beach,
Virginia, 23452, or at such other place as Landlord may from time to time designate in writing.

4. Additional Rent.

     (a) General. Whenever it is provided by the terms of this Lease that Tenant is
required to make any payment to Landlord other than of base rent, such payment shall be deemed to
be additional rent (“Additional Rent”). Unless otherwise expressly specified herein, Additional
Rent shall be paid by Tenant with the installment of base rent thereafter falling due. Additional
Rent shall include, but not be limited to:

     (b) Basic Operating Charges. Tenant shall pay to Landlord, as Additional Rent, the
Basic Operating Charges incurred by Landlord in the operation of the Demised Premises during any
calendar year. As used herein, the “Basic Operating Charges” shall mean the sum of all

  

 

costs of operating, policing, managing, maintaining and repairing the Demised Premises, including
but not limited to the following: the cost of public liability insurance, casualty insurance, rent
loss insurance, and all other insurance coverage carried by Landlord in connection with the Demised
Premises; legal and accounting fees; management fees and personnel costs, including, but not
limited to, salaries, wages, fringe benefits and other direct and indirect costs of personnel;
“Real Estate Taxes” (as hereinafter defined); and any other costs and expenses incurred by Landlord
in owning, maintaining or operating the Demised Premises.

     The term “Real Estate Taxes” shall mean all taxes and assessments, general and special,
ordinary and extraordinary, foreseen and unforeseen, now or hereafter assessed, levied or imposed
upon the Demised Premises, and the land on which it is built, including, without limitation, front
foot benefit charges and adequate public facility costs and assessments, together with (i) any
tax, assessment, or other imposition in the nature of a real estate tax, (ii) any ad valorem tax
on rent or any tax on income if imposed in lieu of or in addition to real estate taxes and
assessments, and (iii) any taxes and assessments which may hereafter be substituted for real
estate taxes, including by way of illustration only, any tax, assessment or other imposition
(whether a business rental or other tax) now or hereafter levied upon Landlord for Tenant’s use or
occupancy of or conduct of business at the Leased Premises, or Tenant’s improvements to or
furniture, fixtures or equipment in the Leased Premises. “Real Estate Taxes” shall also include
all costs incurred by Landlord in contesting the validity or amount of any such taxes.

     (c) Landlord’s Enforcement Costs. Additional Rent shall include any and all expenses
incurred by Landlord, including reasonable attorneys’ fees, for the collection of monies due from
Tenant and the enforcement of Tenant’s obligations under the provisions of this Lease. When
Landlord, at Tenant’s expense, performs an obligation of Tenant pursuant to the terms of this
Lease, the costs and expenses incurred by Landlord in performance of such obligations shall be
Additional Rent.

     (d) Additional Rent Estimates and Adjustments.

          (i) In order to provide for current monthly payments of Additional Rent,
Landlord shall submit to Tenant for each calendar year a written statement of Landlord’s estimate
of the amount of the charges described in Paragraph 4, together with the amount of Tenant’s
Additional Rent which is estimated to result from such charges. Tenant shall pay each month
one-twelfth (1/12th) of Landlord’s estimate of the Basic Operating Charges for such year. Landlord
may revise its estimate of Basic Operating Charges at any time during a calendar year by written
notice to Tenant, setting forth such revised estimate and Tenant’s Proportionate Share thereof. In
such event, all monthly payments made by Tenant after such notice shall be in an amount calculated
on the basis of such revised estimate. Tenant shall, in all cases, continue to make monthly
payments of Basic Operating Charges based on the last estimate received from Landlord until it
receives a revised or updated estimate.

          (ii) If payment of Additional Rent begins on a date other than January 1st under this Lease,
in order to provide for current payments of Additional Rent through December 31st of that partial
calendar year, Landlord shall submit to Tenant a statement of Landlord’s estimate of

  

 

Tenant’s Additional Rent for that partial year, stated in monthly increments. Tenant shall make
the monthly incremental payments of estimated Additional Rent together with its installments of
Basic Monthly Rent.

          (iii) After the end of each calendar year, Landlord will as soon as practicable submit to
Tenant a statement of the actual Basic Operating Charges for the preceding calendar year. Tenant
shall pay Landlord, within thirty (30) days of Tenant’s receipt of such statement, the excess, if
any, of the actual Basic Operating Charges over the amount paid by Tenant during the previous year
for such charges. If the amount paid by Tenant during the previous year exceeded the actual Basic
Operating Charges for the year, the excess shall be credited toward payment of the next
installment of Basic Rent to be paid by Tenant after Tenant receives said statement from Landlord.
If the amount paid by Tenant during the last calendar year of the Lease Term exceeds the actual
Basic Operating Charges for such year, Landlord shall pay Tenant the excess amount within thirty
(30) days after Landlord’s submission to Tenant of the aforesaid operating charge statement for
such calendar year.

          (iv) Within ten (10) days after receipt of Landlord’s statement showing actual figures for
the year, Tenant shall have the right to request a detailed statement of Basic Operating Charges
prepared by Landlord and copies of Real Estate Tax bills, which shall be supplied to Tenant within
a reasonable time after Tenant’s written request. No such request shall extend the time for
payments as set forth in Section 4(d) or Section 4(d)(iii) above. Unless Tenant asserts specific
error(s) and supports such errors, in writing, within fifteen (15) days after Landlord has
complied with Tenant’s request, Tenant shall waive the right to contest the statement of actual
figures for the year submitted by Landlord. If it shall be determined that there is an error in
Landlord’s statement, Tenant shall be entitled to a credit for any overpayment. Any payment,
refund or credit made pursuant to Section 4(c) or 4(d) shall be made without prejudice to any
right of Tenant to dispute, or of Landlord to correct, any item(s) as billed pursuant to the
provision hereof; provided, however, such right to correct or adjust rental payments shall
terminate at the expiration of two (2) years after the date any payment shall have become due.

5. Purpose. The Demised Premises shall be used for the purpose of manufacturing,
warehousing and the distribution of textiles.

6. Renewal Option. If Tenant has promptly and completely fulfilled all of its obligations
under this Lease, is not then in default under this Lease, has not been in default under this
Lease more than two (2) times during the term of this Lease, and is in possession of the premises,
it shall be granted the option to renew this Lease for two (2), five-year renewal option terms
immediately following the initial Lease term, under the same terms and conditions as during the
initial Lease term, except that the rent shall be as follows:

     Rent shall be the amount of rent for the preceding year plus three percent (3%)

Tenant shall give written notice to Landlord of its intention to renew not later than 180 days
prior to the end of the then-current lease term; otherwise, this option to renew and all future
options to renew, if any, shall be terminated.

   

 

7. Definition of “Term” and “Lease Year”. Except where the context clearly requires
otherwise, the word “term,” whenever used in this Lease with reference to the term hereof, shall
be construed to include any renewal term, as well as the original term. The words “lease year”, as
used in this Lease, shall be construed to mean each twelve (12) month period elapsing after the
commencement of the term hereof.

8. Security Deposit. Tenant, concurrently with the execution of this Lease, has deposited
with Landlord the sum of Five Thousand & 00/100 Dollars ($5,000.00), the receipt being hereby
acknowledged, which sum shall be retained by the Landlord as security for the payment by the
Tenant of the rent herein agreed to be paid and for the faithful performance of the covenants of
this Lease. If at any time the Tenant shall be in default in any of the provisions of the Lease,
the Landlord shall have the right to use said deposit, or so much thereof as may be necessary, in
payment of any rent in default as aforesaid and/or in payment of any expense incurred by the
Landlord in and about the curing of any default by the Tenant, and/or in payment of any damages
incurred by the Landlord by reason of such default of the Tenant. Said deposit shall not bear
interest.

9. Late Payments. Tenant covenants and agrees to pay a late fee of Two Hundred Fifty
Dollars ($250.00) with respect to all rents and other sums due under this Lease from the time said
rents or sums accrue if they are not paid within five (5) days after the due date thereof, a late
fee of Three Hundred Dollars ($300.00) if the same are not paid within fifteen (15) days following
the due date thereof, a late fee of Three Hundred Fifty Dollars ($350.00) if the same are not paid
within twenty (20) days following the due date thereof and a late fee of Four Hundred Dollars
($400.00) if the same are not paid within thirty (30) days following the due date thereof, Landlord
expressly reserving all of the rights and remedies provided herein and/or by law in respect
thereto. In addition, any amount not received by Landlord within thirty (30) days after the due
date shall bear interest from the due date until received by Landlord at an annual rate of seven
percent (7%) above the prime lending rate of Bank of America in effect from time to time
(hereinafter called the “Default Rate”). Tenant further agrees to pay (or to reimburse Landlord
promptly if Landlord elects to pay) all reasonable costs and expenses incurred by Landlord in
connection with the collection of delinquent rents and/or the enforcement of any of the provisions
of this Lease, including any reasonable attorney’s fees. Tenant further covenants and agrees to pay
Landlord a “bad check” or “returned check” charge in the amount of Thirty Five Dollars ($35.00) for
each check of Tenant dishonored by Tenant’s bank.

10. Improvements to Demised Premises: Tenant hereby agrees to accept the Demised Premises
in the condition the Demised Premises are in as of the date hereof and, at Tenant’s own costs and
expense, to improve and/or retrofit the Demised Premises for Tenant’s business use. In connection
with the improvements (hereinafter called “Improvements”) to be made by Tenant to the Demised
Premises, Tenant covenants and agrees as follows:

	 	(a)	 	Prior to the commencement of any work on the Improvements, Tenant shall submit
to Landlord for its approval the plans and specifications for the Improvements, which
approval shall not be unreasonably withheld or delayed, and which approval shall be
deemed given if Landlord does not notify Tenant to the contrary by written notice prior
to the expiration of ten (10) “Business Days” following receipt of such plans

  

 

	 	 	 	and specifications (for the purposes of this Lease, “Business Days” shall mean Mondays through
Fridays exclusive of legal holidays);
	 
	 	(b)	 	Following approval by Landlord of the plans and specifications for the Improvements, no
modifications which pertain to the exterior of the Demised Premises or to the structure of the
Building shall be made thereto without further written consent of Landlord;
	 
	 	(c)	 	Prior to the commencement of any construction, Tenant shall furnish to Landlord the
following:

	 	(i)	 	A copy of all permits, authorizations, approvals and certificates
which may be required in connection with the Improvements;
	 
	 	(ii)	 	Certificates evidencing comprehensive general liability insurance
and umbrella insurance in an aggregate amount not less than $2,000,000 for
bodily injury and not less than $1,000,000 for property damage, such coverage to
include operations-premises liability, independent contractor’s coverage,
contractual liability (designating the indemnity provisions of the construction
improvements), and naming Landlord and Agents as additional insured parties; and
	 
	 	(iii)	 	A certificate evidencing that Tenant (or Tenant’s contractors)
has (have) procured workmens’ compensation insurance covering all persons
employed in connection with the Improvements who might assert claims for death
or bodily injury against Landlord;

	 	(d)	 	Tenant shall indemnify and hold Landlord and Agents harmless from and against all damages,
liabilities, claims or actions (including attorneys’ fees and other costs of defense) brought
by any party which may result by reason of, or in connection with, the Improvements, unless
occasioned by the negligent conduct of Landlord or its agents. This provision shall not in
any way be affected by the absence of any covering insurance and shall survive the completion
of the Improvements;
	 
	 	(e)	 	In the event any mechanic’s lien shall at any time be filed against the Demised Premises,
Tenant shall, prior to the expiration of thirty (30) days following the date of the filing of
any such lien, cause the same to be released by the posting of an appropriate bond or
otherwise, provided, however, in the event Tenant defaults in causing any such mechanic’s lien
to be released as aforesaid, Landlord, in addition to any other rights or remedies it may
have, may take such action as it deems necessary to protect the Demised Premises and its
interest therein, and any amount paid by Landlord in connection with such action and all legal
and other expenses incurred by Landlord, including attorneys’ fees, court costs and other
necessary disbursements, together with interest thereon at the Default Rate shall be due and
payable by Tenant to Landlord promptly following the demand therefore;

  

 

	 	(f)	 	Tenant, at its sole cost and expense, while constructing the Improvements, shall
take good care of the Demised Premises, including without limiting the generality of the
foregoing, all sidewalks and curbs within, in front of or adjacent to the Demised
Premises, water, sewer and gas connections, pipes, mains and all other fixtures,
machinery and equipment, in order that the Demised Premises shall remain in as good and
safe order and condition at the completion of construction as it is on the date hereof,
and Tenant shall repair any and all damage occasioned by the negligent conduct of Tenant
and/or any of its agents or contractors. Tenant shall not commit or suffer and shall use
all reasonable precautions to prevent, waste, damage, or injury to the Demised Premises.
When used in this paragraph, the term “repairs” shall include all necessary
replacements, renewals, alterations, and additions; and
	 
	 	(g)	 	Promptly after the completion of any Improvements, Tenant shall, (i) at its
own cost and expense, apply for, obtain and furnish Landlord with copies of any final
permits, authorizations, approvals and certificates which may be required in
connection with the Improvements, and (ii) furnish to Landlord a detailed breakdown of
all costs incurred by Tenant in connection with the construction of the Improvements
certified by its chief financial officer together with a schedule prepared in
accordance with general accepted accounting principles setting forth Tenant’s proposed
amortization of the costs of the Improvements for Federal income tax purposes
(hereinafter called the “Improvements Amortization Schedule”).

11. Tenant’s Repairs and Maintenance. Tenant covenants that it will, at all times during
the term hereof, and at its own cost and expense, keep the Demised Premises (including, without
limitation, heating and air conditioning systems, toilets, sprinkler system, signage, pipes,
plumbing, wires and conduits, electric lines, windows, doors, glass, fixtures and equipment) in a
good condition of repair and in good working order (making such repairs and replacements as may be
necessary). Tenant further agrees to be responsible and liable for any freezing in pipes and/or
within plumbing fixtures and shall pay for the repair of any damage caused thereby. In this
regard, Tenant shall keep the Demised Premises at a sufficient temperature to prevent such
freezing. Tenant understands and agrees that Tenant (not Landlord) shall be responsible for any
condensation in or around the ductwork used for heating and/or air conditioning. Tenant expressly
understands and agrees that Landlord shall not have any obligation whatsoever with respect to the
maintenance, repair or restoration of the Demised Premises.

12. Landlord’s Work. None.

13. Right of Entry. Tenant agrees to permit Landlord or its representatives (i) to enter
the Building from time to time upon reasonable prior notice (at least 24 hours) for purposes of
inspection, (ii) to enter the Building during the last six (6) months of the term hereof for the
purpose of exhibiting the Demised Premises to prospective tenants, and (iii) to place a “For
Lease” sign in the front window or windows of the Building during said last six (6) months of the
term hereof.

14. Miscellaneous Covenants of Tenant. Tenant covenants that: it will comply with all
Federal, State, and/or municipal laws, ordinances, and regulations relating to its business

   

 

conducted in the Demised Premises; it will promptly pay for all electricity, gas, water and other
utilities consumed and all sewage disposal charges and storm water utility fees assessed against
the Demised Premises and all required meter deposits and connection fees relating to such
utilities; it will not use, or permit to be used, the Demised Premises for any illegal or immoral
purposes; it will, at its own cost and expense, take such steps as shall be necessary to keep the
Demised Premises free of termites, roaches, rodents, insects and other pests, and that it will hold
Landlord harmless from any damage caused thereby; if the doors, roof, window frames, glass or any
part of the exterior of the Demised Premises are damaged by persons breaking, or attempting to
break, into the Demised Premises, or by vandals, Tenant covenants to repair immediately at its own
cost and expense any and all such damage.

15. Tenant’s Access. The sole access to the Demised Premises for Tenant and its invitees
shall be through the rear entrance.

16. Indemnification and Liability Insurance.

(a) Tenant agrees that it will hold Landlord harmless from and against any and all injury or
damage to person or property in, on or about the Demised Premises caused by Tenant, its
agents, employees or invitees, including, without limitation, all costs, expenses, including
attorneys’ fees, claims, and suits arising in connection therewith. Tenant covenants that it
will, at all times during the term hereof, at its own costs and expense, carry comprehensive
general liability insurance on the Demised Premises with limits of not less than
$2,000,000.00 for property damage and for injury or death to persons, which insurance shall
be so written as to protect Landlord, Agents, and Tenant, as their respective interests may
appear. Certificates of such insurance policies shall be delivered to Landlord promptly
after the issuance of the respective policies. If Tenant fails to provide such insurance,
Landlord may (but shall not be obliged to) do so and collect the cost thereof as part of the
rent payable hereunder, together with interest at the Default Rate;

(b) Landlord shall not be liable for any theft or damage to persons or property sustained
in or on the Demised Premises during the term hereof, howsoever caused, except for damage
occasioned by the negligent act of Landlord or its agents;

(c) The aforesaid policy of insurance shall be issued by companies and in form, substance
and amount (where not stated above) satisfactory to Landlord. The aforesaid insurance shall
not be subject to cancellation except after at least thirty (30) days’ prior written notice
to Landlord and each mortgagee of Landlord; provided, however, if thirty (30) days’ prior
written notice is not obtainable from Tenant’s insurer, then such lesser written notice as
Tenant’s insurer is willing to give, but in no event less than the then custom and practice
of the insurance industry in Virginia. Proof of Tenant’s insurance shall be deposited with
Landlord at the commencement of the term hereof, and renewals thereof not less than thirty
(30) days prior to the end of the term of each such coverage.

(d) Landlord shall obtain and keep in force during the term of this Lease a policy or
policies of insurance covering loss or damage to the Demised Premises, providing protection
against all perils included within the classification of fire, extended coverage,

   

 

vandalism, malicious mischief, special extended perils (all risk) and loss of rent. Tenant
shall pay any increased premiums arising out of the nature of Tenant’s occupancy, or any
act or omission of Tenant within 30 days after receipt by Tenant of a copy of the premium
statement or other satisfactory evidence of the amount due.

17. Waiver of Subrogation. Insofar as the insurance policy or policies concerned are not
invalidated thereby, each party hereto waives any and all right of recovery against the other
party or parties hereto for each and every risk insured against under the terms of such policy
and/or policies.

18. Damage by Fire or Other Casualty. In the event the Demised Premises, or any part
thereof, shall be damaged by fire or other casualty by any act of Tenant, its agents, employees or
invitees during the term, hereof, Landlord agrees that it will restore the Demised Premises to the
extent of the insurance proceeds received by Tenant with respect to the Demised Premises, with
reasonable dispatch, to substantially the same condition it was in prior to such damage, and the
proceeds of all insurance received with respect to the damage or destruction of the Demised
Premises shall be deposited in a joint escrow account in the name of Landlord and Tenant to be
disbursed to Landlord as the restoration thereof progresses and as Landlord repairs or purchases
replacement furniture, fixtures and equipment so damaged or destroyed. It is expressly understood
and agreed that notwithstanding any damage to the Demised Premises by any act of Tenant, its
agents, employees or invitees rendering the same totally or partially untenantable, there shall not
be any abatement of rent and Tenant shall be and continue to remain liable for the payment of all
rent and other amounts due hereunder during the period intervening between the date of such damage
and the date the Demised Premises are restored. Anything in the foregoing to the contrary
notwithstanding, if such damage occurs during the last six (6) months of the term hereof, and if
such damage exceeds fifty percent (50%) of the then insurable value of the Demised Premises, either
Landlord or Tenant may terminate this Lease as of the date of such damage by giving to the other
written notice of its intention so to do within thirty (30) days after the date such damage occurs.
If this Lease is so terminated, the proceeds of all insurance payable with respect to the damage or
destruction shall belong, and be paid, to Landlord, the rent payable hereunder shall be abated as
of the date of such damage, and Tenant shall remove all of its property from the Demised Premises
within thirty (30) days after the notice of termination is given.

19. Condemnation. In the event that the Demised Premises shall be taken by the exercise of
the power of eminent domain (or sold to the holder of such power pursuant to a threatened taking),
this Lease may, at the option of Tenant, be terminated by written notice given to Landlord within
sixty (60) days after the date such taking or sale occurs. If this Lease is not so terminated,
Landlord covenants that it will, at its own expense, not to exceed the amount of any award or
compensation in lieu thereof received by Landlord, promptly after the lapse of said sixty (60)
days, repair such damage and do such work as may be required to repair and rebuild the Demised
Premises with the view to restoring the Demised Premises as nearly as practicable to the condition
it was in immediately prior to such taking or sale; provided, however, that whether or not this
Lease is so terminated, the rent payable hereunder shall be equitably abated (according to the
loss of use) from the date of such taking or sale. Tenant shall have no right in

  

 

or to the proceeds of any award made in any such condemnation (or proceeds derived from any sale
in lieu thereof).

20. No Representation by Landlord or Agents. Tenant agrees that neither Landlord nor any
agent of Landlord has made any representation, express or implied, with respect to Federal, State
or municipal laws or ordinances applicable to the Demised Premises (including, without limitation,
laws or ordinances relating to zoning), and Tenant shall not have the right to terminate this
Lease, nor shall it be entitled to any abatement of rent payable hereunder or any claim for
damages, in the event the Demised Premises cannot be used by Tenant, in whole or in part, for the
purpose for which Tenant intends to use the same.

21. Assignment and Subletting. Tenant is permitted, without Landlord’s written permission,
to assign or sublet its interest in and to the Lease to any wholly owned subsidiary or entity.
Tenant covenants that it will not assign this Lease, or sublet or permit any disinterested third
party to occupy any part or all of the Demised Premises without the prior written consent of
Landlord, which consent shall not be unreasonably withheld, delayed or conditioned; provided,
however, in no event shall Tenant’s obligations hereunder be affected or diminished thereby. If,
at any time during the term hereof, Landlord has knowledge that a person, firm or corporation
other than Tenant is in possession of the Demised Premises without the written consent of
Landlord, Landlord may, at its option, at any time thereafter, by written notice to Tenant, accept
and treat such person, firm or corporation in possession as the assignee or sublessee of Tenant,
in which event both Tenant and such assignee or sublessee shall be obligated to observe and
perform all the covenants, conditions and provisions herein contained binding upon Tenant;
provided, however, that nothing herein shall affect Landlord’s other remedies for Tenant’s default
by wrongful assignment or subletting. In the event Landlord incurs any legal fees in connection
with requests made of it to approve any assignment of this Lease or subletting of the Demised
Premises, the reimbursement of such fees shall be the responsibility of Tenant or the party
requesting such approval as one of the conditions to such approval being granted.

22. Hazardous Materials.

	 	(a)	 	Landlord represents, warrants and covenants that, as of the date of the
commencement of the term hereof, the Demised Premises shall be free of any asbestos or
other Hazardous Materials (as defined herein);
	 
	 	(b)	 	Tenant represents warrants and covenants that it will exercise its best
efforts to prevent the release (as defined herein) by Tenant of Hazardous Materials in
or on the Demised Premises in violation of any Environmental Laws (as defined herein.)
In the event Tenant becomes aware that a release or threat of release of Hazardous
Materials onto or from the Demised Premises has occurred, Tenant agrees to give timely
and appropriate required regulatory notices, and to give Landlord copies thereof;
	 
	 	(c)	 	Should any condition arise on the Demised Premises that either as a matter of
law or of reasonable care should be remedied and is solely attributable to Tenant,
Tenant shall conduct and complete any necessary actions (a) in accordance with
Environmental Laws, and (b) in accordance with the orders and directives of all

  

 

	 	 	 	federal, state and local governmental authorities. Tenant shall defend, indemnify, and hold
harmless Landlord and its employees, agents, attorneys, consultants, contractors, officers and
directors, successors and assigns from and against any and all claims, losses, demands,
penalties, fines, liabilities, settlements, charges, damages, judgments, administrative orders,
remedial action requirements, enforcement actions of any kind, and all costs and expenses of
whatever kind or nature, known or unknown, contingent or otherwise, arising out of, or in any
way related to, (i) the presence, disposal, handling, transport, use, release, or threatened
release of any Hazardous Materials on or at the Demised Premises solely attributable to Tenant;
(ii) any failure to comply with the representations, warranties and covenants contained herein;
(iii) any failure to provide required notice of such release or threatened release of Hazardous
Materials on or at the Demised Premises to any governmental agency; (iv) any lawsuit brought or
threatened, settlement reached, or government order relating to such Hazardous Materials on or
at the Demised Premises and solely attributable to the Tenant; or (v) any violation of
Environmental Laws or demands of government authorities which are based upon or in any way
related to such Hazardous Materials on or at the Demised Premises and solely attributable to
the Tenant, including, without limitation, attorney and consultant fees, investigation and
laboratory fees, court costs, and litigation expenses;
	 
	 	(d)	 	For purposes of this paragraph, “Hazardous Materials” includes, without limitation, any
flammable explosives, radioactive materials, petroleum, natural gas liquids, hazardous
materials, hazardous wastes, hazardous or toxic substances, or any pollutant or contaminant
defined as such, in or used by any federal, state or local law, ordinance, rule, regulation,
standard, order or decree which relates to protection of the public health, welfare, and the
environment, including, without limitation, those relating to the storage, handling and use of
chemicals and other hazardous materials, those relating to the generation, processing,
treatment, storage, transport, disposal or other management of waste material of any kind, and
those relating to the protection of environmentally sensitive areas (“Environmental Laws”).
The term “release” as used herein means depositing, spilling, leaking, pumping, pouring,
omitting, erupting, discharging, injecting, escaping, leaching, dumping or disposing into the
environment;
	 
	 	(e)	 	The provisions of this paragraph shall be in addition to any and all other obligations and
liabilities Landlord may have against Tenant at common law with respect to Hazardous
Materials and shall survive the transaction contemplated herein to the extent Tenant is
responsible as set forth herein; and
	 
	 	(f)	 	If Tenant is required, but fails to correct, contain, remove, cleanup or otherwise remedy the
release of Hazardous Materials from the Demised Premises, Landlord shall have the right (but
not the obligation), upon ten (10) days prior written notice to Tenant to take or complete
such action on behalf of Tenant and Tenant shall be liable to Landlord for all costs and
expenses, including without limitation, reasonable attorneys’ and experts’ fees, expenses and
disbursements, paid or incurred on account of such actions undertaken on Tenant’s behalf and
shall promptly following written

  

 

	 	 	 	demand reimburse Landlord therefore together with interest at the Default Rate.

23. Waste and Nuisance. Tenant agrees not to suffer, permit or commit any waste, nor to
allow, suffer or permit any noise, loud music or other undesirable effects to emanate from the
Demised Premises. Upon written notice by Landlord to Tenant that any of the aforesaid is occurring,
Tenant agrees forthwith to cease and discontinue the same and within one (1) Business Day
thereafter to make such changes in the Demised Premises and/or install or remove such apparatus or
equipment therein or therefrom as may be required by Tenant for the purpose of obviating any such
condition; and if any such condition is not so remedied, then Landlord may, at its option, either:
(i) enter upon the Demised Premises and cure such condition in any manner Landlord shall deem
necessary and add the cost and expense incurred by Landlord therefore, together with all damages,
including attorneys’ fees, sustained by Landlord, to the next installment of the rent due and
Tenant agrees to pay such amount, as additional rent hereunder, or (ii) treat such failure on the
part of Tenant to remedy such condition as a default under this Lease. Tenant hereby further agrees
to indemnify and save Landlord harmless of and from all fines, claims, demands, actions,
proceedings, judgments and damages (including attorney’s fees) of any kind or nature by anyone
whomsoever arising or growing out of any breach or non-performance by Tenant of the covenants
contained in this paragraph.

24. Default and Remedies. In the event the business being conducted in the Demised
Premises shall at any time be substantially terminated, or in the event Tenant shall default in
the payment of any installment of rent herein reserved, or in the event Tenant shall default in
the performance of any of the terms, covenants, conditions or provisions herein contained binding
upon Tenant and such default shall not be remedied within thirty (30) days after written notice
thereof shall have been given by Landlord to Tenant, or in the event Tenant shall be adjudicated a
bankrupt or shall become insolvent or shall make a general assignment for the benefit of its
creditors, or in the event a receiver shall be appointed for Tenant or a substantial part of its
property and such receiver is not removed within thirty (30) days after appointment, Landlord
shall have the right (in addition to all other rights and remedies provided by law), to institute
appropriate judicial proceedings to regain possession of the Demised Premises, to terminate this
Lease and to remove any property therein, without liability for damage to, and without obligation
to store, such property. In the event of the regaining of possession of the Demised Premises as
aforesaid, Landlord may (but shall be under no obligation to) relet the Demised Premises, or any
part thereof, from time to time, without further notice, for such term or terms, on such
conditions, and for such uses and purposes, as Landlord, in its sole and absolute discretion, may
determine, and may collect and receive all rents derived therefrom and apply the same, after
deduction of all appropriate expenses (including, without limitation, attorneys fees and other
costs of collection) to the payment of the rent payable hereunder, Tenant remaining liable for any
deficiency. Landlord shall not be responsible or liable for any failure to so relet the Demised
Premises or any part thereof, or of any failure to collect any rent connected therewith, but will
make reasonable efforts to re-lease the Demised Premises. Anything in this paragraph to the
contrary notwithstanding, Landlord agrees to give written notice of a default in the payment of
any installment of rent or any other amount or amounts due hereunder provided, and so long as, no
more than two (2) of such default notices shall be required of Landlord during any lease year.

25. Utilities. Tenant shall be solely responsible for and shall promptly pay any and all

   

 

charges for electricity or any other utility used, consumed or supplied to the Leased Premises. In
no event shall Landlord be liable to Tenant for any interruption or failure in the supply of any
such utilities to the Leased Premises.

26. Estoppel Certificate. Within ten (10) days after written request of Landlord which
shall include the form of the instrument so requested, Tenant shall certify to any mortgagee or
purchaser, or proposed purchaser, or any other person, firm or corporation specified by Landlord,
as to the validity and force and effect of this Lease, as to the existence of any default on the
part of any party thereunder, as to the existence of any offsets, counterclaims, or defenses
thereto on the part of Tenant, and as to any other matters as may be reasonably requested by
Landlord, all without charge and as frequently as Landlord deems necessary. Tenant’s failure or
refusal to deliver such statement within such time shall be conclusive upon Tenant (i) that this
Lease is in full force and effect, without modification except as may be represented by Landlord,
(ii) that there are no uncured defaults in Landlord’s performance of obligations hereunder, and
(iii) that not more than one month’s installment of rent has been paid in advance of the due date.

27. Subordination, Nondisturbance, Attornment. This Lease is expressly subject and
subordinate to the lien of any deed of trust which may now or hereafter affect the Demised
Premises and to all renewals, refinancings, modifications, consolidations, replacements and
extensions thereof. Tenant shall, within ten (10) days after receipt of a written request from
Landlord, execute any certificate or other document that Landlord or its mortgagee may request in
confirmation of such subordination. In consideration of the foregoing, Landlord agrees to secure
from its existing mortgagee and from any subsequent mortgagee simultaneously with Tenant executing
and delivering any certificate or other document confirming the subordination of this Lease as
aforesaid, a recognition-nondisturbance agreement pursuant to which such mortgagee agrees that,
notwithstanding any default by Landlord under, or foreclosure of, the deed of trust, provided, and
so long as, Tenant is not in default under this Lease, Tenant’s rights under this Lease shall not
be disturbed and such mortgagee shall recognize Tenant as tenant of the Demised Premises.

28. Notices. Any notice herein provided for to be given to Landlord shall be deemed to be
given if and when deposited in United States registered or certified mail, postage prepaid,
addressed to Landlord at 477 Viking Drive, Suite 350, Virginia Beach, Virginia 23452, or at such
other address as Landlord shall designate, from time to time, in writing to Tenant. Any notice
herein provided for to be given to Tenant shall be deemed to be given if and when deposited in
United States registered or certified mail, addressed to Tenant at 477 Viking Drive Suite 350,
Virginia Beach, Virginia 23452 or at such other address as Tenant shall designate in writing to
Landlord.

29. Quiet Enjoyment. Subject to the terms, covenants and conditions set forth in this
Lease, Landlord covenants that Tenant shall have and enjoy quiet and peaceable possession of the
Demised Premises during the term hereof.

30. Entire Agreement. This Lease contains the entire agreement between the parties hereto,
and cannot be altered or modified in any way except in writing signed by the parties hereto.

   

 

31. No Waivers. Any failure of either party hereto to insist upon strict observance of any
covenant, provision or condition of this Lease in any one or more instances shall not constitute or
be deemed a waiver, at that time or thereafter, of such or any other covenant, provision or
condition of this Lease.

32. Pronouns. Every pronoun used in this Lease shall be construed to be of such number and
gender as the context shall require.

33. Marginal Headings. The headings appearing on the margin of this Lease are intended
only for convenience of reference, and are not to be considered in construing this Lease.

34. Successors and Assigns. This Lease and all the terms, covenants, conditions and
provisions herein contained, shall be binding upon, and shall inure to the benefit of, the parties
hereto and their respective heirs, personal representatives, successors and (if and when assigned
in accordance with the provisions hereof) assigns.

35. Exculpation. Anything herein to the contrary notwithstanding, in the event of the
default by Landlord in the performance of any of its obligations hereunder, Tenant expressly
covenants and agrees to look solely to Landlord’s equity in the Demised Premises for the payment of
all amounts due Tenant as a result of any such default by Landlord, and Tenant shall not seek any
personal money judgment against Landlord or any of its stockholders, partners, or members, or any
of their respective heirs, personal representatives, successors or assigns.

36. Signage. The erection, display and design of all signage is subject to approval by
Landlord which approval shall not be unreasonably withheld provided, and so long as, Tenant
furnishes Landlord written evidence of approval thereof by the City of Virginia Beach (if
required). Tenant shall submit to Landlord a plan and description and specifications of any
signage desired to be installed by Tenant. Tenant shall keep all signs installed (with the consent
of Landlord) freshly painted, in good repair and operation condition at all times.

37. Attorney’s Fees and Costs. If any legal action is brought by either Landlord or Tenant
against the other to enforce their respective rights hereunder, the prevailing party shall be
entitled, in addition to the relief granted by the court, to the cost of such action and
reasonable attorney’s fees.

38. Holding Over. Any holding over by Tenant after the expiration or earlier termination of
the term hereof with the written consent of Landlord shall be construed to create a tenancy from
month to month at the same rent, prorated on a monthly basis, and which tenancy shall otherwise be
subject to the terms and conditions set forth in this Lease. Any holding over by Tenant after the
expiration or earlier termination of the term hereof without the written consent of Landlord shall
also be construed to create a tenancy from month to month, subject to the terms and conditions set
forth in this Lease, except that the rent shall be double the rent reserved during the last lease
year of the term hereof, prorated on a monthly basis. Tenant agrees to indemnify and save Landlord
harmless from and against any and all costs, losses, damages, liabilities and/or expenses incurred
by Landlord as a result of a delay by Tenant in surrendering possession of the Demised Premises at
the expiration or earlier termination of the term hereof, including, without limitation, any claims
made by any succeeding tenant due to such delay in surrendering

  

 

possession.

WITNESS the following signatures and seals:

	 	 	 	 	 
	 	LANDLORD:	 
	 
	 	Tactical Warehouse, LLC, a Virginia limited liability company
	 
	 	By:  	[ILLEGIBLE]
	 
	 	 	Its Manager 	 
	 	 	 	 
	 	TENANT:
 	 

Atlantic Diving Supply, Inc., a Virginia corporation

	 	 	 	 	 
	 	By:  	[ILLEGIBLE]
	 
	 	 	Its Presidentexv10w15

Exhibit 10.15

SUBLEASE

1. PARTIES

          This Sublease is entered into as of January 30, 2009 (the “Sublease”), by and between CORT
Business Services Corporation, doing business as CORT Furniture Rental, (hereinafter the
“Sublessor”) with its principal office located at 11250 Waples Mill Road, Suite 500, Fairfax, VA
22030 and Atlantic Diving Supply Inc. dba ADS, Inc. (hereinafter the “Sublessee”), with its
principal office being located at 477 Viking Drive, Suite 350 Virginia Beach, VA 23452. This
Sublease is made under that certain Master Lease dated September 25, 2000, as further Amended by
First Amendment on August 18, 2005, between Sublessor as Tenant, and Mission Trails, LLC A copy of
the Master Lease and the First Amendment are attached hereto, marked Exhibit A, and incorporated
herein by this reference.

2. DESCRIPTION OF PREMISES

          Sublessor hereby subleases to Sublessee, and Sublessee hereby sublets from Sublessor for the
term, at the rental, and upon all of the conditions set forth herein, a portion of that certain
real property located at 7401 Katelyn Court (the “Subleased Premises”), containing approximately
25,637 square feet of the premises on February 1, 2009. The Subleased Premises shall be delivered by
Sublessor to Sublessee in “as-is” and broom clean condition.

3. PROVISIONS CONSTITUTING SUBLEASE

          This Sublease is subject to all of the terms, covenants, and conditions of the Master Lease,
and Sublessee hereby agrees to assume and perform during the term of the Sublease each and all of
the covenants and obligations of Sublessor as Tenant under said Master Lease except the payment of
rent and other amounts thereunder to the Landlord under the Master Lease. All of the provisions and
terms of the Master Lease are merged and incorporated herein except to the extent those terms are
modified in this Sublease.

4. TERM

     4.1 This Sublease is for a term of two years, commencing February 1, 2009 and ending January
31, 2011. If Sublessee with or without Sublessor’s consent, remains in possession of the Premises
or any part thereof after the expiration of the Term hereof, such occupancy shall be a tenancy from
month to month upon all the provisions of this Sublease and the Master Lease pertaining to the
obligations of Sublessee and either party may terminate the Sublease upon thirty (30) days prior
written notice.

     4.2 Notwithstanding said commencement date, if for any reason Sublessor cannot deliver
possession of the Subleased Premises on the above commencement date, Sublessor shall not be subject
to any liability therefore, nor shall such failure affect the validity of this Sublease or the
obligations of the Sublessee hereunder or extend the term hereof, but in such case Sublessee shall
not be obligated to pay rent until possession of the Premises is tendered to Sublessee; provided
however, that if Sublessor shall not have delivered possession of the Subleased Premises by
February 20, 2009, Sublessee may, at Sublessee’s option, by notice in writing to Sublessor within
ten (10) days thereafter, cancel this Sublease, in which event the parties shall be discharged from

Page 1

 

all obligations thereunder and the Sublease will terminate. If Sublessee occupies the Subleased
Premises prior to said commencement date, such occupancy shall be subject to all provisions hereof,
such occupancy shall not advance the expiration date and Sublessee shall pay rent for such period
at the initial monthly rates set forth below.

     4.3 Sublessee shall have no right to exercise any options or right to extend the Master Lease
beyond the initial term, nor any right of the first refusal under the Master Lease, except as
provided for under a separate agreement between Landlord and Sublessee.

5. RENT

     5.1 The Rent under this Sublease shall be Three Hundred Seventy Two Thousand Dollars
($372,000) payable (except as set forth in Paragraph 14) without deduction, set off, abatement, or
demand as follows, $15,000 per month for the period from February 1, 2009 until January 31, 2010
and $16,000 per month from February 1, 2010 until January 31, 2011, such Rent payable in advance
on the first day of each calendar month. If the term of this Sublease commences on other than the
first day of a month, then the installment of rent for such month shall be pro-rated and paid on
the commencement date thereof. First month’s rent shall be due and payable upon execution of
Sublease.

     5.2 Sublessee shall pay the rent as above provided and any other sums that may become due to
Sublessor, as a result of Sublessee’s actions , at the following address:

CORT Business Services Corporation

11250 Waples Mill Road, Suite 500

Fairfax, VA 22030

Attn.: Lease Administrator

or at such other place or places as may be hereafter designated by Sublessor. Such rent payments
shall be paid by federally insured bank check, wire transfer or certified funds.

     5.3 Sublessee hereby acknowledges that late payments to Sublessor of rent or other sums due
hereunder will cause Sublessor to incur costs not contemplated by this Sublease, the exact amount
of which shall be extremely difficult to ascertain. If any rent or other sum due from Sublessee is
not received by Sublessor within five (5) days after its due date, then Sublessee shall pay to
Sublessor a late charge equal five (5) percent of such overdue amount plus any reasonable
attorney’s or collection agencies’ fees incurred by Sublessor by reason of Sublessee’s failure to
pay rent and/or other charges hereunder. Sublessor’s acceptance of such late charges shall not
constitute a waiver of Sublessee’s default with respect to such overdue amount or stop Sublessor
from exercising any of the other rights and remedies granted hereunder. All rent and other sums of
whatever nature owed by Sublessee to Sublessor under this Lease that remain unpaid for more than
five (5) days after its due date shall bear interest at the rate of ten percent (10%) per annum (or,
if lower, the highest lawful rate) from the date due until paid.

6. TAXES

          Sublessor shall pay the real estate taxes in accordance with the Master Lease. Sublessee shall
pay any and all taxes on the Sublessee’s contents, inventory and/or movable furnishing and fixtures

Page 2

 

located in the Subleased Premises and all taxes on all utilities used and consumed on Subleased
Premises.

7. INSURANCE

     7.1. Sublessee shall maintain at all times during the term of this Agreement, and while
Sublessee’s property is located on the Subleased Premises, all insurance required by the Master
Lease per Paragraph 4.13, and shall deliver to Sublessor a certificate of insurance showing such
coverage prior to the commencement of the Sublease.

     7.2. From and after the commencement of occupancy by Sublessee, the Sublessee shall protect,
indemnify and hold harmless the Sublessor from and against any and all liability to third parties
incurred by any acts of neglect of the Sublessee or any of its agents, servants or employees in, on
or about the Subleased Premises. Sublessee shall at all times and at its own cost and expense
maintain comprehensive public liability and property damage insurance for the Subleased Premises
with a single combined limit of not less than $2,000,000 per incident naming Sublessor and Landlord
as additional insured and insuring against all liability of Sublessee and its authorized
representatives arising out of and in connection with Sublessee’s use or occupancy of the Subleased
Premises.

     7.3. Sublessee shall assume the risk of damage to any fixtures, goods, inventory, merchandise,
equipment, furniture and leasehold improvements and Sublessor shall not be liable for injury to
Sublessee’s business or any loss of income therefrom relative to such damage. In addition to
maintaining public liability and property damage for the Subleased Premises Sublessee shall at all
times during the term of this Lease, and at its own cost and expense, procure and continue in force
the following insurance coverage:

	 	a.)	 	“All risk” coverage insurance, in an amount equal to the full replacement value of all
fixtures, furniture, equipment and other personal property located on the Premises, together with
improvements installed by or at the expense of the Sublessee, for one hundred percent (100%) of the
current replacement value of such property.
	 
	 	b.)	 	Worker’s Compensation in an amount not less than required by law and employers’ liability
insurance of no less than a million dollars ($1,000,000.00).
	 
	 	c.)	 	Business interruption insurance with sufficient coverage to provide for payment of rent
and other fixed costs during any interruption of Sublessee’s business by reason of fire or other
similar cause.
	 
	 	d.)	 	Plate glass insurance on the Subleased Premises.

     7.4. Insurance Policies — The limits of said insurance policies shall not however,
limit the liability of Sublessee hereunder. If Sublessee fails to procure and maintain said
insurance, Sublessor may, but shall not be required to, procure and maintain same, but at the
expense of Sublessee. Insurance required hereunder shall be in companies with a Best rating of AXII
or better and each policy shall provide that is not subject to cancellation or reduction in
coverage except after thirty (30) days’ written notice to Sublessor and Landlord. Sublessee shall
deliver to Sublessor prior to occupancy of the Subleased Premises certificates evidencing the
existence and amounts of such insurance and naming Sublessor and Landlord as additional insured,
and shall not materially change such policies except after thirty (30) days prior written notice to
Sublessor.

Page 3

 

8. INTERIOR IMPROVEMENTS

          Sublessee agrees to accept, subject to a walk through, the Subleased Premises in its
existing condition and “as-is” condition without any faults, if any, therein, except for latent
defects therein to the extent and only to the extent Sublessor is likewise entitled to proceed
against and recover from Landlord under the Master Lease for and on account of such latent defects
in the Subleased Premises. Notwithstanding the above, Sublessor shall deliver the Premises and all
improvements and equipment, including but not limited to, structural, roof, mechanical, electrical,
lighting, flooring, plumbing, doors, locks, carpeting, load levelors, bumpers, glass and ceiling
tiles in good working condition, normal wear and tear excepted. Sublessor covenants to Sublessee
that it has no knowledge of any defect in the Subleased Premises.

          Sublessee shall not make any alterations, additions, or improvements to the Subleased Premises
without Sublessor’s and Landlord’s prior written consent, which consent shall not be unreasonably
withheld or delayed, and shall be in compliance with the Master Lease. Sublessee shall be
responsible for the cost of Sublessee’s alterations, additions, and improvements, which shall be
constructed by Sublessee or its contractor in accordance with plans and specifications approved by
Sublessor and Landlord.

9. INDEMNIFICATION OF SUBLESSOR

          Sublessee shall defend, indemnify and hold Sublessor harmless from and against any and all
claims, actions, demands, liability and expense in connection with loss of life, personal injury
and/or property damage arising from or out of any occurrence in, upon or at the Subleased Premises,
or the occupancy or use by Sublessee of the Subleased Premises or any part thereof, which is
occasioned wholly or in part by any act of Sublessee, its agents, contractors, employees or
invitees. Sublessee shall further indemnify, defend and hold harmless Sublessor from and against
any and all claims liability and expense (including without limitation attorney’s fees) arising
from any breach or default in the performance of any obligation on Sublessee’s part to be performed
under the terms of this Sublease as well as the terms, covenants and conditions of the Master Lease
which Sublessee has agreed to perform under this Sublease. The provisions of this Paragraph 9 shall
survive the expiration date with respect to any damage, injury, death, breach or default occurring
prior to such termination. In the event Sublessor shall, without fault on its part, be made a party
to any litigation commenced by or against Sublessee, then Sublessee shall protect and hold
Sublessor harmless and shall pay all costs, expenses and reasonable attorney’s fees incurred or
paid by Sublessor in connection with such litigation.

10. USE

     10.1 The Subleased Premises shall be used and occupied only for the purpose of general
warehouse and distribution purposes and such other uses as may be permitted by zoning ordinances to
the extent permitted under the Master Lease.

     10.2 Sublessee shall not change the use without the prior written consent of Sublessor and the
Lessor under the Master Lease. Any change in use by Sublessee without such consent shall be void
and, at the option of Sublessor, shall terminate this Sublease and Sublessor may pursue any and all
remedies provided herein.

     10.3 Sublessee shall, at Sublessee’s expense, comply promptly with all applicable statutes,
ordinances, rules, regulations, orders, restrictions of record, and requirements in effect during
the

Page 4

 

term or any part of the term hereof regulating the use by Sublessee of the Subleased Premises.
Sublessee shall not use or permit the use of the Premises in any manner that will tend to create
waste or a nuisance or, if there shall be more than one tenant of the building in which the
Premises are located, which shall tend to disturb such other tenants.

11. SECURITY DEPOSIT

          Upon execution of this agreement, Sublessee shall deposit with Sublessor an amount of sixteen
thousand dollars and 00 cents, ($16,000) (hereinafter referred to as “Security Deposit”) as
security for compliance with the term of the Sublease. If Sublessee fails to pay rent or other
charges due hereunder, or otherwise defaults with respect to any provision of this Sublease,
Sublessor may from time to time in its sole discretion, without prejudice to any other remedy,
following written notice to Sublessee including an explanation the reasons for the application or
use, apply the Security Deposit to the extent necessary to make good any arrearages of rent and any
other damage, injury, expense or liability suffered by Sublessor by such Event of Default.
Following any such application of the Security Deposit, Sublessee shall pay to Sublessor within ten
(10) days of written notice as additional rent the amount so applied in order to restore the
Security Deposit to the original amount and Sublessee’s failure to do so shall be a material breach
of this Sublease. Sublessor shall not be required to keep said deposit separate from its general
accounts. Within approximately thirty (30) days after the Sublease Expiration Date and after the
Subleased Premises have been timely vacated in good order and repair, broom clean and inspected and
keys returned to Sublessor, then Sublessor shall return said Security Deposit to Sublessee, less
such portion of the Security Deposit as Sublessor shall have used to satisfy Sublessee’s
obligations under the Sublease. If a default under this Sublease shall occur more than two (2)
times within any twelve (12) month period irrespective of whether or not such Event of Default is
cured, then, without limiting Sublessor’s other right and remedies provided for in this Sublease or
at law or equity, the Security Deposit shall be increased by one and one half (1.5) times the
original Security Deposit. Sublessee shall have twenty (20) day to remit the additional monies
after its receipt of Sublessor’s written demand for said increase in the Security Deposit.

12. UTILITIES

          Throughout the term, Sublessee shall pay for of all utilities to include water, gas,
electricity, heat, light, power, sewer, refuse and trash collection, and other utilities and
services used on the Subleased Premises, all maintenance charges for utilities, and any storm sewer
charges or other similar charges for utilities imposed by any governmental entity or utility
provider, pertaining to Sublessee’s use of the Subleased Premises. Landlord and Sublessor shall not
be liable for any interruption or failure of utilities or any other service to the Subleased
Premises or Master Lease Premises and no such interruption or failure of utilities shall result in
the abatement of rent hereunder.

13. DEFAULT OF SUBLESSEE

     13.1. Each of the following shall constitute an Event of Default: (a) Sublessee’s failure to
make any payment of the Basic Annual Rent, additional rent or any other sum on or before its due
date; (b) Sublessee’s violation or failure to perform or observe any other covenant or condition
of this Sublease within ten (10) days following Sublessor’s written notice to Sublessee; provided
however, that if the nature of Sublessee’s obligation is such that more than ten (10) days are
reasonably required for performance, then Sublessee shall not be in default if Sublessee commences
performance within such ten (10) day period and thereafter diligently and continuously prosecutes
the same to completion, as long as the Landlord has not declared such violation of failure an Event
of Default under the Master Lease.; (c) Sublessee’s abandonment of

Page 5

 

any portion of the Subleased Premises; (d) (1) The making by Tenant of any general assignment or
general arrangement for the benefit of creditors, (2) the filing by or against Sublessee of a
petition in bankruptcy, including reorganization or arrangement, unless, in the case of a petition
filed against Sublessee, unless the same is dismissed within twenty (20) days, (3) the appointment
of a trustee or receiver to take possession of substantially all of Sublessee’s assets located in
the Subleased Premises or of Sublessee’s interest in this Lease, (4) any execution, levy,
attachment or other process of law against any property of Sublessee or Sublessee’s interest in
this Lease, unless the same is dismissed within twenty (20) days, (5) adjudication that Sublessee
is bankrupt, (6) the making by Sublessee of fraud of creditors, or the failure of Sublessee to
generally pay its debts as they become due; (e) any information furnished by or on behalf of
Sublessee to Sublessor in connection with the entry of this Lease is determined to have been
materially false, misleading or incomplete when made; or (f) any assignment, subletting or other
transfer for which the prior consent or Sublessor is required under this Sublease and has not been
obtained, (g) Sublessee’s dissolution or liquidation; or (h) Sublessee’s failure to comply, perform
or observe any of the terms and provisions set forth in the Lease.

     13.2. If there shall be an Event of Default, then the Sublessor shall have the right, at its
sole option, to terminate this Sublease in which case Sublessee shall immediately surrender
possession of the Premises to Sublessor and, in addition to any other rights and remedies,
Sublessor may have at law and in equity, Sublessor shall have the following rights: (a) to re-enter
the Subleased Premises then or at any time thereafter and remove all persons and property and
possess the subleased Premises, without prejudice to any other remedies Sublessor may have by
reason of Tenant’s default or of such termination, and Sublessee shall have no further claim
hereunder; (c) To recover all space damages incurred by Sublessor by reason of the default,
including without limitation all damages allowed per the Master Lease and any Additional Rent or
damages which may be sustained by reason of such Event of Default and all reasonable costs, fees
and expenses (including without limitation reasonable attorney’s fees, brokerage fees, reasonable
expenses incurred in placing the Subleased Premises in the condition received at delivery) incurred
by Sublessor in pursuit of its remedies and in renting the Subleased Premises to others.

     13.3. Sublessee waives any right to redemption, re-entry or restoration of the operation of
this Sublease under any present or future law.

     13.4. Sublessor’s rights and remedies set forth in the Sublease are cumulative and in addition
to Sublessor’s other rights and remedies at law or equity. The termination of this Sublease shall
not terminate or impair Sublessor’s remedies for breach of contract, including, without limitation,
for damages equal to the net rental value of the Sublease for the entire Sublease Term. Sublessor’s
exercise of any such right or remedy shall not prevent the concurrent or subsequent exercise of any
other right or remedy. Sublessor’s delay or failure to exercise or enforce any of Sublessor’s
rights or remedies or Sublessee’s obligations shall not constitute a waiver of any such rights,
remedies or obligations.

14. OBLIGATIONS OF SUBLESSOR

          Sublessor agrees to make all the payments as provided for in the Master Lease in accordance
with its terms, and to comply with or perform all obligations of the Tenant under the Master
Lease that Sublessee has not assumed under this Sublease. Sublessor further agrees that Sublessee
has the optional right, at Sublessee’s sole discretion, to make any payment, in any amount, to the
Landlord if Sublessor defaults on any payment to the Landlord. Sublessor also agrees that Sublessee
may choose at Sublessee’s sole discretion, to cure Sublessor’s default under Sublessor’s breach of
the Master

Page 6

 

Lease after providing notice to Sublessor of its intentions to do so. All Sublessee’s costs,
expenses and payments paid or incurred by Sublessee in curing such default shall be refunded by
Sublessor to Sublessee within thirty (30) days following notice from Sublessee. If Sublessor has
not refunded such costs within thirty (30) days after written notice from Sublessee, and provided
Sublessee has not caused the defaults under this Sublease or the Master Lease, the unpaid amount
may be deducted from Sublessee’s payments which are obligated to pay to Sublessor by Sublessee
under the Sublease. In the event that (i) Sublessor’s default under the Master Lease results in the
termination of the Master Lease and (ii) such default is not caused in whole or in part by the
action or inaction of the Sublessee, this Sublease shall terminate as of the date of termination of
the Master Lease and Sublessee shall have no further obligation to pay the unpaid balance of the
Rent. If, as a result of any breach or default by Sublessor in the performance of any of the
provisions of this Sublease and/or Master Lease (whether or not such default is later cured),
Sublessee uses the services of an attorney in order to secure compliance with such provisions or
recover damages therefore, or to terminate this Sublease, Sublessor shall reimburse Sublessee upon
demand for any and all reasonable attorney’s fees, costs and expenses so incurred by Sublessee.
Sublessor further agrees to pay interest at the rate of ten percent (10%) per annum from the date of
default to the date of the cure on any amount determined to be a breach of this Sublease, whether
or not such default is later cured by Sublessor.

15. ASSIGNMENT AND SUBLETTING

          Sublessee shall not assign this Sublease or further sublet all or part of the Subleased
Premises without the prior written consent of Sublessor (and the consent of Landlord, if such is
required under the terms of the Master Lease) which consent shall not be unreasonably withheld or
delayed by Sublessor. Any assignment, sublease or transfer without the prior written consent of
Sublessor and Landlord shall be null and void at Sublessor and/or Landlord’s option.

16. TERMINATION OR EXPIRATION

          At or before expiration of this Agreement, or the date of any earlier termination, Sublessee
shall, at its own cost and expense, remove its property located at the Subleased Premises and
restore the Subleased Premises to the satisfaction of Sublessor, and in accordance with the Master
Lease, excepting ordinary wear and tear in a broom, clean condition. If Sublessee fails to remove
its property within this time, Sublessor may either remove the property itself and recover all
costs of such removal from Sublessee, or Sublessor may assume ownership and title to the property
at no cost. All payments due under this Agreement and the Master Lease Agreement shall continue
until the Sublessee’s property has been removed from the Subleased Premises and the Subleased
Premises have been restored to the reasonable satisfaction of Sublessor and Lessor, ordinary wear
and tear excepted.

17. ATTORNEY’S FEES

          If, as a result of any breach or default by Sublessee in the performance of any of the
provisions of this Sublease and/or Master Lease (whether or not such default is later cured),
Sublessor uses the services of an attorney in order to secure compliance with such provisions or
recover damages therefore, or to terminate this Sublease or evict Sublessee then Sublessee shall
reimburse Sublessor upon demand for any and all reasonable attorney’s fees, costs and expenses so
incurred by Sublessor with such amounts being deemed additional rent. Sublessee further agrees to
pay interest at the rate of ten percent (10%) per annum from the date of default to the date of the
cure on any amount determined to be a breach of this Sublease, whether or not such default is later
cured by Sublessee.

Page 7

 

18. NOTICES

          Any notice provided for in this Sublease shall be in writing and shall be deemed given if
delivered by personal delivery, by certified mail, return receipt requested, or by express courier
(such as but not limited to, Federal Express or UPS Next Day or Second Day Delivery). The parties’
addresses for notices are as follows:

	 	 	 	 	 

	 

	 	To Sublessor:
	 	CORT Business Services
	 

	 	 	 	ATTN: Senior Vice President Real Estate
	 

	 	 	 	11250 Waples Mill Road, Suite 500
	 

	 	 	 	Fairfax, VA 22030
	 
	 	 	 	 
	 

	 	With Copy to:
	 	CORT Furniture Rental
	 

	 	 	 	1231 East Dyer Road
	 

	 	 	 	Suite 120
	 

	 	 	 	Santa Ana, CA 92705
	 

	 	 	 	ATTN: Service Center Vice President
	 
	 	 	 	 
	 

	 	To Sublessee:
	 	Atlantic Diving Supply, Inc.
	 

	 	 	 	477 Viking Drive, Suite 350
	 

	 	 	 	Virginia Beach, VA 23452
	 
	 	 	 	 
	 

	 	To Landlord:
	 	Mission Trails, LLC
	 

	 	 	 	c/o Kennedy Associates Real Estate Counsel, Inc.
	 

	 	 	 	Attn: Senior Vice President- Asset Management 1215 Fourth
	 

	 	 	 	Avenue, Suite 2400
	 

	 	 	 	Seattle, WA 98161,
	 
	 	 	 	 
	 

	 	With Copy to:
	 	New Tower Trust Company
	 

	 	 	 	Multi- Employer Property Trust
	 

	 	 	 	Attn: President/ MEPT or Patrick O. Mayberry
	 

	 	 	 	Three Bethesda Metro Center, Suite 1600
	 

	 	 	 	Bethesda, Maryland 20814
	 
	 	 	 	 
	 

	 	And a Copy to:
	 	CB Richard Ellis
	 

	 	 	 	4365 Executive Drive Suite 1600
	 

	 	 	 	San Diego, CA 92121
	 

	 	 	 	Attn: Senior Real Estate Manager

19. MISCELLANEOUS

          19.1. No Representations. Sublessee acknowledges that neither Sublessor nor any
broker, agent or employee of Sublessor has made any representations or promises with respect to the

Page 8

 

Subleased Premises, the Building or the Project except as herein expressly set forth, and no
rights, privileges, easements or licenses are being acquired by Sublessee except as herein
expressly set forth.

          19.2. No Partnership. Nothing contained in this Sublease shall be deemed or construed
to create a partnership or joint venture of or between Sublessor and Sublessee, or to create any
other relationship between the parties hereto other than that of Sublessor and Sublessee.

          19.3. Authority. Sublessor and Sublessee covenant each for itself that each has full
right, power and authority to enter into this Sublease upon the terms and conditions herein set
forth. The Sublessor covenants that Sublessee, upon payment of the rents and performing the terms,
conditions, and covenants herein contained, shall peacefully and quietly have, hold, and enjoy the
Premises during the full term of this Sublease, and any extension hereof, from all persons claiming
through Sublessor and/or Landlord. Sublessor further covenants that, as of the date of this
Sublease, there is no event which is, or with notice or lapse of time or both would be, an Event
of Default under the Master Lease. If Sublessee signs as a corporation, each of the persons
executing this Sublease on behalf of Sublessee does hereby covenant and warrant that Sublessee is a
duly authorized and existing corporation, qualified to do business in the state in which the
Subleased Premises is located, that the corporation has full right and authority to enter into this
Sublease, and that each and both persons signing on behalf of the corporation were authorized to do
so.

          19.4. Additional Rent. All other costs and expenses which Sublessee assumes or is
required to pay to Sublessor pursuant to this Sublease shall be deemed to be “additional rent” and,
in the event of nonpayment thereof, Sublessor shall have all the rights and remedies provided for
in the case of nonpayment of rent, including assessment of interest and late fees.

          19.5. No Recording. This Sublease shall not be recorded in any office legally
established for the purpose of giving public notice of real estate records and any attempt to do so
may be treated by Sublessor as an Event of Default under this Sublease. In the event Sublessee does
record this Sublease or any memorandum thereof, Sublessee, by such act irrevocably constitutes and
appoints Sublessor as its special attorney-in-fact to execute any and all documents required to
remove the Sublease or any memorandum thereof from the public records.

          19.6. Captions. Section headings are used for convenience and shall not be considered
when construing this Sublease.

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

          19.8. Time is of the Essence. Time is of the essence with respect to each and every
obligation of Sublessor and Sublessee under this Sublease.

          19.9 Signage. Signage shall be governed by Paragraph 4.23 of the Master Lease.

          19.10. Entire Agreement. This Sublease contains the entire agreement of the parties in
regard to the Subleased Premises and this Sublease and no representations, inducements or
agreements, oral or otherwise, between the parties not contained in this Sublease shall be of any
force

Page 9

 

or effect. This Sublease may not be amended, modified or changed in whole or in part in any
manner other than by an agreement in writing duly signed by both parties hereto.

          19.11. Benefit and Burden. The provisions of this Sublease shall be binding upon, and
shall inure to the benefit of, the parties hereto and each of their respective heirs, executors,
administrators, successors, and assigns.

          19.12. Gender and Number. Feminine or masculine pronouns shall be substituted for those of
the neuter form, and the plural shall be substituted for the singular number, in any place or
places herein in which the context may require such substitution or substitutions. Sublessor and
Sublessee herein for convenience have been referred to in the neuter form.

          19.13. Survival. Sublessee’s liabilities existing as of the expiration or earlier
termination of the Term shall survive such expiration or earlier termination.

          19.14. Interpretation. Should any provision of this Sublease require judicial
interpretation, it is agreed that the court interpreting or considering same shall not apply the
presumption that the terms hereof shall be more strictly construed against a party by reason of the
rule or conclusion that a document should be construed more strictly against the party who itself
or through its agent prepared the same, it being agreed that all parties hereto have participated
in the preparation of this Sublease and that legal counsel was consulted by each party hereto (or
opportunity for such legal consultation afforded to each party) before the execution of this
Sublease.

IN WITNESS WHEREOF, the parties hereto have executed the Sublease as of January 30, 2009.

	 	 	 	 	 

	SUBLESSOR:

	 	 	 	SUBLESSEE:
	 
	 	 	 	 
	CORT Business Services

	 	 	 	Atlantic Driving Supply Inc.
	 
	 	 	 	 
	/s/ [ILLEGIBLE]

	 	 	 	/s/ Chares M. Salle
	 

	 	 	 	 
	Title: Senior Vice President of Real Estate

	 	 	 	Title: Vice President
	 
	 	 	 	 
	ATTEST:

	 	 	 	ATTEST:
	 
	 	 	 	 
	/s/ Suzanne Kaul

	 	 	 	/s/ Suzanne Kaul
	 

	 	 	 	 
	 
	 	 	 	 
	CONSENTED TO:
	 	 	 	 
	LANDLORD:
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 

Page 10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}]]