Document:

Lease Agreement

 Exhibit 10.3 
 LEASE 
 by and between 
 Levine & Riggle Rental Company Limited Partnership, 
 an Arizona
limited partnership 
 “Lessor” 
 and 
 Adventure Vending Inc., 
 a Washington corporation 
 “Lessee” 
 for 
 premises known as

 7170 West Oakland 
 Chandler, Arizona 
 November 1, 2005 

 TABLE OF CONTENTS 
  

					
	 1.
	  	 Leased Premises
	  	1
			
	 2.
	  	 Lease Term
	  	1
			
	 3.
	  	 Rent
	  	1
			
	 4.
	  	 Payment of Rent
	  	1
			
	 5.
	  	 Payment of Expenses
	  	1
			
	 6.
	  	 Late Charges
	  	1
			
	 7.
	  	 Additional Rent
	  	2
			
	 8.
	  	 Taxes
	  	2
			
	 9.
	  	 Use of Leased Premises
	  	2
			
	 10.
	  	 [Intentionally Omitted.]
	  	3
			
	 11.
	  	 Alterations and Improvements
	  	3
			
	 12.
	  	 Maintenance and Repairs
	  	3
			
	 13.
	  	 Access
	  	3
			
	 14.
	  	 Liability and Casualty Insurance
	  	4
			
	 15.
	  	 Liens
	  	6
			
	 16.
	  	 Destruction of Premises
	  	7
			
	 17.
	  	 Condemnation
	  	7
			
	 18.
	  	 Signs
	  	7
			
	 19.
	  	 Utilities
	  	8
			
	 20.
	  	 Intentionally Omitted
	  	8
			
	 21.
	  	 Assignment and Subletting
	  	8
			
	 22.
	  	 Surrender
	  	9
			
	 23.
	  	 Title to Improvements
	  	9
			
	 24.
	  	 Default - Grounds
	  	9
			
	 25.
	  	 Default - Remedies
	  	10
			
	 26.
	  	 Right to Cure
	  	11
			
	 27.
	  	 Holding Over
	  	11
			
	 28.
	  	 Statement from Lessee
	  	11
			
	 29.
	  	 Notices - Manner of Giving
	  	11
			
	 30.
	  	 Lessor’s Right to Perform Lessee’s Covenants
	  	11
			
	 31.
	  	 Waiver
	  	12
			
	 32.
	  	 Time
	  	12
			
	 33.
	  	 No Recording
	  	12
			
	 34.
	  	 Subordination by Lessee
	  	12

  

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	 35.
	  	 Invalidity
	  	12
			
	 36.
	  	 Construction
	  	12
			
	 37.
	  	 Attorneys’ Fees
	  	12
			
	 38.
	  	 Binding Effect
	  	12
			
	 39.
	  	 Net Lease
	  	12
			
	 40.
	  	 Conveyance by Lessor
	  	13
			
	 41.
	  	 No Personal Liability to Lessor
	  	13
			
	 42.
	  	 Intentionally Omitted
	  	13
			
	 43.
	  	 Commissions
	  	13
			
	 44.
	  	 No Partnership
	  	13
			
	 45.
	  	 Intentionally Omitted
	  	13
			
	 46.
	  	 Consent of Lessor
	  	13
			
	 47.
	  	 Survival of Obligations
	  	13
			
	 48.
	  	 Entire Agreement
	  	13
			
	 49.
	  	 Rubbish Removal
	  	13
			
	 50.
	  	 Hazardous Materials
	  	13
			
	 51.
	  	 Representations and Warranties of Lessee
	  	15
			
	 52.
	  	 Representations and Warranties of Lessor
	  	15
			
	 53.
	  	 Severability
	  	16
			
	 54.
	  	 Lessee Financial Information
	  	16
			
	 55.
	  	 Waiver of Redemption
	  	16
			
	 56.
	  	 Disclaimer
	  	16
			
	 57.
	  	 Brokerage Disclosure
	  	16
			
	 58.
	  	 Waiver of Right to Jury Trial
	  	16

 Exhibits 
  

			
	 Exhibit “A”
	  	Legal Description of Land
		
	 Exhibit “B”
	  	Form of Expense Invoice

  

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 LEASE 
 THIS LEASE (this “Lease”) is made and entered into as of the first day of November, 2005, by and between Levine & Riggle Rental Company Limited Partnership, an Arizona limited
partnership (“Lessor”), and Adventure Vending Inc., a Washington corporation (“Lessee”). 
 WITNESSETH: 
 For and in consideration of the mutual agreements, covenants and promises set forth in this Lease and for
other good and valuable consideration, the receipt, sufficiency and validity of which is hereby acknowledged, Lessor and Lessee agree as follows: 
 1. Leased Premises: Lessor leases to Lessee and Lessee accepts and leases from Lessor, upon the terms and conditions set forth in this Lease, that certain real property located in the City of Chandler, County of
            , State of Arizona, more particularly described on Exhibit “A” attached hereto (the “Land”) and the buildings and other
improvements located on the Land (the “Improvements”; the Land and the Improvements being collectively called the “Premises”), which is that certain real property commonly known as 7170 West Oakland,
             County, Chandler, Arizona. 
 2. Lease Term: This
Lease shall be in effect for a period commencing on November 1, 2005 (the “Commencement Date”) and expiring on midnight October 31, 2007. (the “Lease Term”) unless this Lease shall sooner
terminate as hereinafter provided. Notwithstanding the foregoing, this Lease may be terminated at any time by Lessee upon not less than ninety (90) days prior written notice to Lessor. At the termination of this Lease, all items of rent, taxes,
insurance, utilities and other matters shall be adjusted and prorated as of the date of termination, and Lessee shall pay to Lessor, or Lessor shall pay to Lessee, as the case may be, such sums as shall be required to accomplish the proration.

 3. Rent: Lessee shall, commencing on the Commencement Date and on the first day of each month during the Initial Term pay to Lessor
as base rent (the “Base Rent”) the sum of Four Thousand Five Hundred and No/100 Dollars ($4,500.00). 
 4. Payment
of Rent: Lessee shall pay the monthly installments of Base Rent and all other sums due under this Lease to Lessor, without notice or demand, and except as expressly set forth in this Lease, without deduction, abatement or setoff, on the
first day of each month during the Lease Term, at c/o Pacific Companies, 1702 East Highland, Suite 310, Phoenix, Arizona 85016, or at such other place, or to such other person or persons as Lessor may designate in writing. All sums due under this
Lease shall be payable in current legal tender of the United States of America. The extension of time for the payment of any installment of Base Rent or any other sums due hereunder, or the acceptance by Lessor of any late payment, will not
constitute the waiver of the right of Lessor to insist on having all other payments due here-under made in the manner and at the time herein specified. Concurrently with the execution of this Lease by Lessee, Lessee shall pay to Lessor the monthly
installment of Base Rent, together with the taxes thereon referenced in Paragraph 8(a) below, for the first (1st) month of the Lease Term. 
 5. Payment of Expenses: Lessee acknowledges and agrees that it will share common office, utility, refuse removal and janitorial expenses at the Premises with Pacific Communications, Inc.
(“Pacific”). Lessee acknowledges that it will receive a monthly invoice in the form of “Exhibit B” attached hereto (the “Expense Invoice”), which Expense Invoice will assess expenses
to Lessee based on the percentages set forth on Exhibit B hereto. Lessee agrees to promptly pay to Lessor the amount set forth on each monthly Expense Invoice pursuant to the payment instructions set forth on such Expense Invoice. 
 6. Late Charges: If any amount due to Lessor is not received in full by Lessor on or before ten (10) days after the date any such payment is
due, then Lessee shall pay to Lessor a late payment charge in 

  

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the amount of five percent (5%) of the amount then due. The parties acknowledge that the damages Lessor will suffer in the event of late payments would
be extremely difficult to calculate and the parties agree that the foregoing late payment charge is a reasonable estimate of Lessor’s probable damages, and as such, constitutes a reasonable charge for the expenses Lessor will suffer if Lessee
fails to pay any such sum when due, and is not a penalty. No payments need be accepted after said ten (10) day period unless accompanied by the late payment charge. This provision shall not be construed to allow or permit Lessee to make
payments after the due date, or to waive any of Lessor’s rights in connection therewith. 
 7. Additional Rent: In addition to
Base Rent, all other amounts to be paid by Lessee to Lessor pursuant to this Lease, if any, shall be deemed to be Additional Rent, whether or not designated as such and shall be due and payable upon demand or together with the next succeeding
installment of Base Rent, whichever shall first occur. Lessor shall have the same remedies for the failure to pay Additional Rent as for the nonpayment of Base Rent. 
 8. Taxes: 
 (a) Occupancy, Sales and Rent Taxes: In addition to and together
with its payments of Base Rent and Additional Rent, Lessee shall pay to Lessor any governmental taxes, other than income taxes, now or hereafter imposed on Base Rent, Additional Rent and other charges collected or paid pursuant to the terms of this
Lease, including, without limitation, state or local rental, occupancy, sales, transaction privilege and excise taxes. 
 (b)
Personal Property Taxes: Lessee shall pay to the appropriate taxing authority, not later than ten (10) days prior to delinquency, all personal property taxes assessed against any personal property of Lessee located on or used in
connection with the Premises. 
 (c) Real Property Taxes: Lessee shall pay all real property taxes and assessments
(including, but not limited to water, irrigation project, sewer, street, paving and other improvement lien assessments) against the Premises. Lessee shall pay one-twelfth (1/12) of the estimated annual amount of such real estate taxes and
assessments to Lessor, together with and at the same time that each monthly installment of Base Rent is due pursuant to Paragraphs 4 and 5 above. From time to time, Lessor shall notify Lessee in writing of the most current tax assessment
against the Premises, together with Lessor’s computation of the monthly amount of such tax to be paid by Lessee. At the end of each full tax year during the term of this Lease and again at the expiration or termination of this Lease, Lessor and
Lessee shall calculate the actual tax paid or owing for the Premises, and Lessee shall be credited or charged, as the case may be, for such adjustments as may be necessary by reason of any difference between the actual amounts determined by Lessor
to have been paid or owing for the Premises (or the pro-rata portion of such amount notwithstanding that payment to the taxing authority may not then be due) and the amount of such taxes actually paid by Lessee to Lessor. 
 9. Use of Leased Premises: Lessee may occupy and use the Premises throughout the Lease Term for any legal and lawful business purpose and for no
other purpose whatsoever (the “Use”). Lessee shall not use or occupy or permit the Premises to be used or occupied, nor to do or permit anything to be done in or on the Premises, in a manner which will in any way make void or
voidable any insurance then in force with respect thereto. Further, Lessee shall not use or occupy the Premises, nor permit anything to be done in or on the Premises which will cause or be likely to cause structural damage to the Improvements or any
part thereof, or which will constitute a public or private nuisance, or which will violate the rights of adjoining landowners and Lessee shall not use or occupy or permit the Premises to be used or occupied in any manner which will violate any laws.
Throughout the Lease Term, Lessee, at its sole cost and expense, shall promptly remove any violation and shall promptly comply with all present and future laws, ordinances, orders, rules, regulations and requirements of all federal, state, and
municipal governments or any other body exercising functions similar to those of any of the foregoing which may be related to the Premises, or any part thereof, or to the use or manner of use of the Premises, or any part thereof. Lessee shall not do
or suffer any waste, damage, disfigurement or injury to the Premises or any part thereof. 
  

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 10. Intentionally Omitted. 
 11. Alterations and Improvements: Lessee shall have the right, at Lessee’s sole cost and expense, to make alterations and improvements to the
Premises, provided that Lessee first obtains Lessor’s written consent, which consent shall not be unreasonably withheld. In seeking such approval, Lessee shall deliver to Lessor the plans and specifications therefor and the names and addresses
of contractors being used to make such improvements. All improvements shall be made in a lien-free manner, in compliance with all applicable governmental regulations and in conformance with plans and specifications approved by Lessor. Lessee shall
give Lessor at least ten (10) days prior written notice of the date of commencement of any construction on the Premises. All alterations, improvements, additions and fixtures made or installed by Lessee shall remain upon the Premises at the
expiration or earlier termination of this Lease and shall become the property of Lessor, unless Lessor shall, either prior to the expiration or termination of this Lease, or within ten (10) days after the termination or expiration of this
Lease, give written notice to Lessee directing Lessee to remove the same or such of the same as shall be specified by Lessor, and all damage occasioned in connection with such removal shall be repaired by Lessee at its sole cost and expense.

 12. Maintenance and Repairs: 
 (a) Lessee’s Maintenance: Lessee, at its sole cost and expense, shall maintain in good order and repair (making all necessary replacements, renewals, and alterations, thereto) the interior of the Premises
and any improvements now existing or hereafter made upon the Premises by Lessee, and all furnishings, fixtures and equipment located therein, in a good, safe, sanitary and neat manner. Lessee’s maintenance obligations shall include, without
limitation, any and all interior and non-structural walls; all water, drain, sewer, heating, electrical and other pipes, lines or ducts in the Premises; all fixtures, electrical and lighting facilities; all windows, doors, plate glass, window and
door frames; and any Lessee signage in or about the Premises. Lessee shall keep all drainage pipes in the Premises free and open and will protect water, heating and other pipes within the Premises so that they will not freeze or become clogged, and
will repair all leaks, and will also repair all damage caused by leaks or otherwise by Lessee’s failure to perform its obligations under this paragraph. Lessee shall, at its sole cost and expense for its pro rata share as set forth below,
perform all ordinary maintenance and repair of the HVAC system serving the Premises as is customary and reasonable, under a net lease, to maintain it in good order and repair. All maintenance and repair work shall comply with applicable laws,
ordinances, and regulations. Lessee shall further keep and maintain any sidewalk area in front of the Premises. If any of the foregoing are common facilities shared with Pacific, such cost and expenses related to such common facilities shall be
shared on a pro rata basis with Pacific and invoiced to Lessee and Pacific pursuant to Paragraph 5 above. 
 (b)
Lessor’s Maintenance: Lessor shall maintain and repair throughout the term of the Lease the structural portions of the roof and the roof membrane, the surfaces of exterior walls, the structural portions of the Improvements and the
foundation, and the pipes, utility and sewer lines, serving the exterior of the Improvements to the Premises. All maintenance and repair work shall comply with applicable laws, ordinances and regulations. 
 13. Access: Lessor and its authorized representatives shall have, at all reasonable times, upon not less than forty-eight (48) hours advance
written notice (except in the event of an emergency, in which event only such notice as may be reasonable under the circumstances shall be required), the right to enter the Premises to inspect the same, to exhibit the Premises to prospective
purchasers, lenders or lessees, to make any necessary repairs to the Premises, or to perform any work (i) which may be necessary to comply with any laws, ordinances, rules or regulations of any public authority, or (ii) that Lessor may
deem necessary to prevent waste or deterioration in connection with the Premises if Lessee does not make or cause such repairs to be made or performed or cause such work to be performed promptly after receipt of a written request from Lessor. Lessor
shall have the right at all times to retain a key with which to unlock all of the doors in, upon or about the Premises, excluding Lessee’s vaults, safes and files. 
  

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 14. Liability and Casualty Insurance: 
 (a) Indemnification and Waiver 
 (i) Indemnity. To the fullest extent permitted by law and except for Claims arising from the negligence or other fault of Lessor Parties, Lessee shall, at Lessee’s sole cost and expense, Indemnify Lessor
Parties against all Claims arising from (i) any Personal Injury, Bodily Injury or Property Damage occurring in or at the Premises; (ii) any Bodily Injury to an employee of a Lessee Party arising out of and in the course of employment of
the employee and occurring anywhere in the Property; (iii) the use or occupancy, or manner of use or occupancy, or conduct or management of the Premises or of any business therein; (iv) subject to the waiver of subrogation provisions of
this Lease, any act, error, omission or negligence of any of the Lessee Parties in, on or about the Premises or the Property; and (v) the conduct of Lessee’s business; (vi) any alterations, activities, work or things done, omitted,
permitted or allowed by Lessee Parties in, at or about the Premises or Property, including the violation of or failure to comply with any applicable laws, statutes, ordinances, standards, rules, regulations, orders, or judgments in existence on the
date of the Lease including Hazardous Materials Laws (defined below); (vii) any breach or default by Lessee in the full and prompt payment of any amount due under this Lease, any breach, violation or nonperformance of any term, condition,
covenant or other obligation of Lessee under this Lease if Lessee does not make such payment or otherwise cure such breach, default, violation or nonperformance within thirty (30) days of the onset of same, or any misrepresentation made by
Lessee or any guarantor of Lessee’s obligations in connection with this Lease; (viii) all damages sustained by Lessor as a result of any holdover by Lessee or any Lessee Party in the Premises including, but not limited to, any claims by
another tenant resulting from a delay by Lessor in delivering possession of the Premises to such tenant; (ix) any liens or encumbrances arising out of any work performed or materials furnished by or for Lessee; or (x) any matter enumerated
in Paragraph 14(a)(ii) below. 
 (ii) Waivers. Lessee, on behalf of all Lessee Parties, Waives all Claims
against Lessor Parties arising from the following except to the extent caused by the negligence or other fault of Lessor Parties: (i) any Personal Injury, Bodily Injury, or Property Damage occurring in or at the Premises; (ii) any loss of
or damage to property of a Lessee Party located in the Premises or other part of the Premises by theft or otherwise; (iii) any Personal Injury, Bodily Injury, or Property Damage to any Lessee Party caused by other tenants of the Premises,
parties not occupying space in the Property, occupants of property adjacent to the Premises, or the public or by the construction of any private, public, or quasi-public work occurring either in the Premises or elsewhere in the Premises;
(iv) any interruption or stoppage of any utility service or for any damage to persons or property resulting from such stoppage; (v) business interruption or loss of use of the Premises suffered by Lessee; (vi) any latent defect in
construction of the Improvements; (vii) damages or injuries or interference with Lessee’s business, loss of occupancy or quiet enjoyment and any other loss resulting from the exercise by Lessor of any right or the performance by Lessor of
Lessor’s maintenance or other obligations under this Lease, or (viii) any Bodily Injury to an employee of a Lessee Party arising out of and in the course of employment of the employee and occurring anywhere in the Premises. 
 (iii) Definitions. For purposes of this Paragraph 14: (i) the term “Lessee Parties” means
Lessee and Lessee’s officers, directors, shareholders, partners, affiliates, board members, staff, employees, members, agents, principals, independent contractors, attorneys, accountants and representatives of the referenced person and the
predecessors, heirs, successors and assigns of any such person (collectively, “Representatives”); (ii) the term “Lessor Parties” means Lessor and Lessor’s Representatives; (iii) the term
“Indemnify” means indemnify, defend and hold free and harmless for, from and against; (iv) the term “Claims” means all liabilities, claims, damages (including consequential damages), losses,
penalties, litigation, demands, causes of action (whether in tort or contract, in law or at equity or otherwise), suits, proceedings, judgments, disbursements, charges, assessments, and expenses (including attorneys’ and experts’ fees and
expenses incurred in investigating, defending, or prosecuting any litigation, claim, or proceeding); (v) the term “Waives” means that the Lessee Parties waive and knowingly and voluntarily assume the risk of; and
(vi) the terms “Bodily Injury”, “Personal Injury” and “Property  

  

 4 

 
Damage” will have the same meanings as in the form of commercial general insurance policy issued by Insurance Services Office, Inc. most
recently prior to the date of the injury or loss in question. 
 (iv) Intentionally Omitted 
 (v) Duty to Defend. Lessee’s duty to defend Lessor Parties is separate and independent of Lessee’s duty to Indemnify
Lessor Parties. Lessee’s duty to defend includes Claims for which Lessor Parties may be liable without fault or may be strictly liable. Lessee’s duty to defend applies regardless of whether issues of negligence, liability, fault, default
or other obligation on the part of Lessee Parties have been determined. Lessee’s duty to defend applies immediately, regardless of whether Lessor Parties have paid any sums or incurred any detriment arising out of or relating, directly or
indirectly, to any Claims. It is the express intention of Lessor and Lessee that Lessor Parties will be entitled to obtain summary adjudication regarding Lessee’s duty to defend Lessor Parties at any stage of any Claim within the scope of this
Paragraph 14. 
 (vi) Obligations Independent of Insurance. The indemnification provided in this
Paragraph 14 shall not be construed or interpreted as in any way restricting, limiting or modifying Lessee’s insurance or other obligations under this Lease, and the provisions of this Paragraph 14 are independent of Lessee’s
insurance and other obligations. Lessee’s compliance with the insurance requirements and other obligations under this Lease does not in any way restrict, limit or modify Lessee’s indemnification obligations under this Lease. 
 (vii) Survival. The provisions of this Paragraph 14 will survive the expiration or earlier termination of this Lease until
all Claims against Lessor Parties involving any of the indemnified or waived matters are fully and finally barred by the applicable statutes of limitations. 
 (b) Waiver of Subrogation. 
 Lessor and Lessee each hereby waive any rights one may have against the other and their respective Representatives, on account of any loss or damage occasioned to Lessor or Lessee, as the case may be, or their
respective property, the Premises, its contents or to other portions of the Premises, arising from any risk covered by any policy of property insurance then in effect. In addition, Lessor and Lessee, for themselves and on behalf of their respective
insurance companies, waive any right of subrogation that any such insurance company may have against Lessor, Lessor’s lender, any other tenant of the Premises, or Lessee, and their respective Representatives as the case may be. It is the intent
of the parties that with respect to any loss from a named peril required to be covered under a policy of property insurance, the parties shall look solely to their respective insurance company for recovery. The foregoing waivers of subrogation shall
be operative only so long as available in the State of Illinois and provided further that no policy of insurance is invalidated thereby. 
 (c) Lessee’s Insurance. From and after the Commencement Date, Lessee shall carry, at Lessee’s sole cost and expense, the following types of insurance, in the amounts specified or in such higher
amounts as requested by Lessor and which are customary in the Phoenix metropolitan area. Lessor agrees that in the event Lessee’s current insurance does not satisfy the requirements set forth below, Lessor will cooperate with the Lessee to
modify the insurance coverage required herein so that there will not be a material increase in the costs of Lessee’s corporate insurance program nor in the Lessor’s risks. If the Lessee believes that changes are needed and the parties are
not able to mutually agree on the changes, then the Lessor shall have the right to terminate this Lease with ninety days notice. 
 (i) Commercial general liability insurance for personal injury, bodily injury (including wrongful death) and damage to property with a combined single limit of not less than One Million and No/100 Dollars ($1,000,000.00), per occurrence,
Three Million and No/100 Dollars ($3,000,000.00), 

  

 5 

 
annual aggregate, insuring against any and all liability of the insured with respect to the Premises, or arising out of the maintenance, use or occupancy
thereof, including Premises operations, products and completed operations and owned, hired and non-owned automobiles, utilizing ISO policy form CG 0001, or its equivalent. The commercial general liability insurance policy shall contain a contractual
liability endorsement specifically deleting the contractual liability exclusion for Personal Injury. In addition, the policy required pursuant to the provisions of this Paragraph 14(c) (i) shall not have a deductible in excess of Ten
Thousand and No/100 Dollars ($10,000.00). 
 (ii) A policy or policies of workers’ compensation insurance with an
insurance carrier and in amounts approved by governmental authorities having jurisdiction and a policy of employer’s liability insurance with limits of liability not less than One Million and No/100 Dollars ($1,000,000.00), each accident; One
Million and No/100 Dollars ($1,000,000.00), disease policy limit; and One Million and No/100 Dollars ($1,000,000.00), disease each employee. Both such policies shall contain waivers of subrogation in favor of Lessor. 
 (iii) “Causes of Loss-Special Form” property insurance, including coverage for sprinkler leakage, vandalism and
malicious mischief and rent insurance covering the entire Premises, including all of Lessee’s leasehold improvements, alterations, additions or improvements made pursuant to Paragraph 11, removable personal property from time to time in,
on or upon the Premises, in an amount not less than one hundred percent (100%) of their full replacement cost of the Premises without depreciation. Any policy proceeds shall be used for the repair or replacement of the property damaged or
destroyed unless this Lease shall cease and terminate under the provisions of Paragraph 16. Such policy of property insurance shall name Lessor as “loss payee” and shall not have a deductible in excess of Twenty Five Thousand
and No/100 Dollars ($25,000.00). 
 All policies of insurance to be procured by Lessee shall be issued by insurance companies qualified to do
business in the State of Illinois. All property policies shall be issued in the name of Lessee and shall name Lessor as “loss payee.”. All liability policies obtained by Lessee shall name Lessor as an additional insured party.
Executed copies of the policies of insurance or evidence of insurance meeting the requirements of Accord Form No. 27 (February 1993) or such other evidence as may be reasonably acceptable to Lessor and evidence of required additional insured
endorsements on ISO Form CG20-26 (collectively referred to in this Paragraph 14(c) as “Certificates”) shall be delivered to Lessor within ten (10) days after the Commencement Date and thereafter, executed copies
of renewal policies or Certificates thereof shall be delivered to Lessor within thirty (30) days prior to the expiration of the term of each such policy. As often as any such policy shall expire or terminate, renewal or additional policies
shall be procured and maintained by Lessee in like manner and to like extent. All commercial general liability, property damage and other casualty policies shall be written as primary policies and shall provide that any insurance which Lessor may
carry is strictly excess, secondary and non-contributing with any insurance carried by Lessee. The insurance requirements contained in this Paragraph 14 are independent of Lessee’s waiver, indemnification and other obligations under this
Lease and shall not be construed or interpreted in any way to restrict, limit or modify Lessee’s waiver, indemnification or other obligations or to in any way limit Lessee’s obligations under this Lease. 
 (d) Adequacy of Insurance. Lessor makes no representation or warranty to Lessee that the amount of insurance to be carried by
Lessee under the terms of this Lease is adequate to fully protect Lessee’s interest. If Lessee believes that the amount of any such insurance is insufficient, Lessee is encouraged to obtain, at its sole cost and expense, such additional
insurance as Lessee may deem desirable or adequate. Lessee acknowledges that Lessor shall not, by the fact of approving, disapproving, waiving, accepting, or obtaining any insurance, incur any liability for or with respect to the amount of insurance
carried, the form or legal sufficiency of such insurance, the solvency of any insurance companies or the payment or defense of any lawsuit in connection with such insurance coverage, and Lessee hereby expressly assumes full responsibility therefor
and all liability, if any, with respect thereto. 
 15. Liens: Lessee shall keep the Premises free and clear of all mechanic’s
and materialmen’s liens. If, because of any act or omission (or alleged act or omission) of Lessee, any mechanics’, 

  

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materialmen’s or other lien, charge or order for the payment of money shall be filed or recorded against the Land or any building or improvement
thereon, or against Lessor (whether or not such lien, charge or order is valid or enforceable as such), Lessee shall, at its own expense, cause the same to be canceled or discharged of record within thirty (30) days after Lessee shall have
received written notice of the filing thereof, or Lessee may, within said thirty (30) day period, furnish to Lessor, a bond pursuant to A.R.S. §33-1004 and satisfactory to Lessor against the lien, charge or order, in which case Lessee
shall have the right to contest, in good faith, the validity or amount thereof. 
 16. Destruction of Premises: If the Premises shall
be wholly or partially damaged or destroyed by fire, by the elements or by other causes, Lessor shall repair or rebuild the same to the extent of available insurance proceeds; provided, however, that if (a) more than seventy-five percent
(75%) of the replacement cost of the Improvements shall be damaged or destroyed, (b) the damage or destruction shall occur during the last twelve (12) months of the Lease Term, or (c) the insurance proceeds shall be insufficient
to repair or restore the Premises or shall for any reason be unavailable, then in any of such events Lessor may, at its option, terminate this Lease on thirty (30) days’ written notice given to Lessee within forty-five (45) days
following the date of the casualty, and this Lease shall terminate on the thirtieth (30th) day following Lessor’s notice as if such date were originally set forth as the termination date herein. If Lessor shall not elect to terminate this
Lease as set forth herein, Lessor shall proceed with all due diligence to restore the Premises to the condition existing as of the date of the casualty (excluding any modifications or additions thereto made by Lessee, unless otherwise agreed), and
Base Rent shall abate during the period of such restoration to the extent that the Premises shall be untenantable. Lessee shall promptly resume its business operations in the Premises as set forth herein upon completion of such restoration.
Notwithstanding the foregoing, in the event that the damage or destruction is such that more than three hundred sixty (360) days will be required to repair or restore the same, as reasonably determined by the parties within thirty
(30) days from the date of the casualty, then Lessee may likewise terminate this Lease on thirty (30) days’ written notice given to Lessor within forty-days (45) following the date of the casualty. 
 17. Condemnation: If all or such portion of the Premises so as, in the reasonable judgment of Lessor, to make the balance thereof untenantable is
condemned by eminent domain for any public or quasi-public use or purpose or is transferred in avoidance of an exercise of the power of eminent domain (an “Appropriation”), then this Lease shall terminate as of the date that
title vests in the condemning authority. All Base Rent and Additional Rent shall be paid up to such date of termination and Lessee shall have no further claim against Lessor nor against the condemning authority for the value of any unexpired term of
the Lease, and Lessor shall be entitled to receive any and all proceeds awarded on account of such Appropriation. Notwithstanding the foregoing, Lessee shall have the right to receive compensation or damages for the unamortized costs, depreciated on
a straight line basis over the Lease Term, of its leasehold improvements, fixtures and removable personal property and Lessee shall be entitled to so called “moving and relocation benefits” and any award payable with
respect to the “good will” of the business conducted on the Premises by Lessee, provided however that no such claim shall diminish Lessor’s award. In the event of an Appropriation of a portion of the Premises which does not result in
a termination of this Lease as provided above, the Base Rent payable hereunder shall be abated in the proportion which the portion of the Premises so taken bears to the total Premises immediately prior to the Appropriation. The entire award made by
reason of any such partial Appropriation shall belong entirely to Lessor. Notwithstanding the foregoing, Lessee shall have the right to receive compensation or damages for the unamortized costs, depreciated on a straight line basis over the Lease
Term, of its leasehold improvements, fixtures and removable personal property and Lessee shall be entitled to so called “moving and relocation benefits” and any award payable with respect to the “good
will” of the business conducted on the Premises by Lessee, provided however that no such claim shall diminish Lessor’s award. 
 18. Signs: Lessee shall not place, erect or display any signs, notices or advertisements on any part of the exterior of the Premises without the prior written consent of Lessor, which consent shall not be unreasonably withheld. All
signs shall be installed and maintained at the expense of Lessee and shall be in compliance with any sign ordinance now in effect or hereafter enacted by any governmental authority having jurisdiction over the Premises. Any signs placed upon the
Premises by Lessee which are not approved by 

  

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Lessor may be removed at the expense of Lessee by Lessor. Further, Lessee shall not alter, remove or relocate any existing sign(s) upon the Premises without
the prior written consent of Lessor, which consent shall not be unreasonably withheld. 
 19. Utilities: Lessee shall pay for all
fuel, gas, oil, heat, electricity, power, water, telephone, trash removal and other utilities which may be furnished to or used by it in the Premises during the Lease Term. Lessee covenants to pay the charges for such utility services on or before
the dates when such payments shall be due and to keep the Premises free and clear of any lien or encumbrance of any kind whatsoever constituting a charge against the Premises arising from the nonpayment or a delinquency in payment for said utility
services. 
 20. Intentionally Omitted. 
 21. Assignment and Subletting: 
 (a) Consent of Lessor Required: Lessee shall
not assign, mortgage, or encumber this Lease, nor sublet or mortgage the Premises or any part thereof, without the prior written consent of Lessor, which consent shall not be unreasonably withheld, conditioned or delayed. Any attempted transfer,
mortgage, assignment or subletting, including any involuntary transfers or assignments by operation of law, without such consent shall be void, shall constitute an Event of Default and shall confer no rights upon any third person. No such transfer,
mortgage, assignment or subletting shall relieve Lessee of its liability for the full performance of all of the terms, agreements, covenants and conditions of this Lease. A consent by Lessor to one transfer, mortgage, assignment or subletting shall
not operate as a waiver of this paragraph as to any further transfer, mortgage, assignment or subletting and this paragraph shall apply to any transferee, assignee or sublessee. Lessee shall reimburse Lessor for Lessor’s reasonable
attorneys’ fees and costs (not to exceed, however, Five Hundred and No/100 Dollars ($500.00)) in connection with the processing and documentation of any such requested transfer, mortgage, assignment or subletting. 
 (b) Documentation of Transfers: Each transfer, mortgage, assignment or subletting to which there has been consent shall be by an
instrument in writing in a form satisfactory to Lessor, and shall be executed by (i) the transferor, mortgagor, assignor or sublessor, who shall affirm its continuing liability under the Lease; (ii) the transferee, mortgagee, assignee or
sublessee, who shall agree in writing for the benefit of Lessor to assume, to be bound by and to perform the terms, covenants and conditions of this Lease; and (iii) by Lessor, for the purpose of acknowledging its consent. One executed copy of
such written instrument shall be delivered to Lessor. The acceptance of Base Rent from any other person shall not be deemed to be a waiver of any of the provisions of this Lease or a consent to the transfer, mortgage, assignment or subletting of the
Premises. 
 (c) Deemed Transfers: If Lessee (including any entity later becoming Lessee) is a corporation (excepting a
corporation whose stock is publicly traded on a nationally recognized stock exchange or is traded Over the Counter on the Nasdaq or NMS systems), limited liability company, partnership or association, the transfer, assignment or hypothecation of
more than forty-nine percent (49%) of any stock or other interest in such corporation, limited liability company, partnership or association shall be deemed an assignment or transfer within the meaning of and subject to this Paragraph
21. Notwithstanding the foregoing, Lessor hereby acknowledges and consents to Lessee’s right, without further approval from Lessor but with written notice to Lessor before or as soon thereafter as is practicable, to sublease the Premises or
assign its interest in this Lease (i) to a corporation that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with Lessee; (ii) in the event of the merger or consolidation of
Lessee with another corporation; or (iii) in the event of a sale or transfer of all or substantially all of the stock of Lessee or all or substantially all of Lessee’s assets (collectively, the “Permitted
Transfers”). No Permitted Transfer shall relieve Lessee of its liability under this Lease and Lessee shall remain liable to Lessor for the payment of all Base Rent and additional rent and the performance of all covenants and conditions
of this Lease applicable to Lessee. 
 (d) Adjustment to Rental: In the event Lessee shall assign its interest in this
Lease or sublet the Premises, then the Base Rent 

  

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set forth in Paragraph 4 above as adjusted shall be increased effective as of the date of such assignment or subletting, by the excess of the Base
Rent and other consideration payable by any such assignee or sublessee pursuant to such assignment or sublease. Notwithstanding the foregoing, in no event shall the Base Rent after any such assignment or subletting be less than the Rent specified in
Paragraph 4 above. 
 (e) Recapture of the Premises: If Lessee proposes to assign Lessee’s interest in this
Lease, Lessor may, at Lessor’s option, upon notice to Lessee within thirty (30) days after Lessor’s receipt of Lessee’s request for consent, elect to recapture the Premises, and within sixty (60) days after notice of such
election has been given to Lessee, this Lease shall terminate. If Lessee proposes to sublet all or any part of the Premises, Lessor may, at Lessor’s option, upon notice to Lessee within thirty (30) days after Lessor’s receipt of
Lessee’s request for consent, elect to recapture such portion of the Premises as Lessee proposes to sublet, and within sixty (60) days after notice of such election has been given to Lessee, this Lease shall terminate as to the portion of
the Premises recaptured. If only a portion of the Premises is recaptured, the Base Rent payable under this Lease shall be proportionately reduced. If all or a portion of the Premises is recaptured by Lessor pursuant to this Article 15(e),
Lessee shall promptly execute a termination agreement for the purpose of setting forth the termination date with respect to the Premises or the recaptured portion thereof, and prorating the Base Rent and other charges to such date. If Lessor does
not elect to recapture as set forth above, Lessee may thereafter enter into a valid assignment or sublease with respect to the Premises, provided that Lessor consents pursuant to this Article 15, and provided, further, that (i) such
assignment or sublease is executed within ninety (90) days after Lessor has given Lessor’s consent, (ii) Lessee pays all amounts owed to Lessor under this Lease, and (iii) there is not in existence an Event of Default as of the
effective date of the assignment or sublease. 
 22. Surrender: At the expiration of this Lease, Lessee shall peaceably and quietly
surrender the Premises to Lessor in a broom-clean and sanitary condition and in good order, condition and repair, and in at least the same condition as at the execution of this Lease, other than approved floor plan changes, ordinary and reasonable
wear and tear excepted, free and clear of all liens and encumbrances. Lessee shall repair any damage or unsightly condition caused by the removal of any of Lessee’s moveable furniture, equipment, or trade fixtures. Any trade fixtures or
personal property left on the Premises by Lessee at the termination of this Lease shall belong to Lessor. Lessee agrees to leave for Lessor all plumbing, heating, air conditioning, lighting and mechanical equipment, the carpeting and draperies and
all signs together with the frames and electrical structures used in connection with the Premises at the termination of this Lease. Lessee shall remove all of its own property out of and off the Premises prior to the expiration date of this Lease,
and any expenses incurred by Lessor to remove Lessee’s property shall be paid for by Lessee. 
 23. Title to Improvements: Title
to the Improvements and the heating, plumbing, air conditioning, electrical and mechanical equipment, in or appurtenant thereto, and all changes, additions and alterations therein, and all renewals and replacements thereof, when made, erected,
constructed, installed or placed upon the Premises, shall be and remain in Lessor. Provided that Lessee has not committed an Event of Default, title to any personal property and trade fixtures owned by Lessee and located in or about the Leased
Premises shall remain in Lessee. 
 24. Default - Grounds: The occurrence of any of the following events will constitute an Event of
Default on the part of Lessee: 
 (a) failure to pay any installment of Base Rent, any Additional Rent or any other sum due
and payable hereunder when such payment is due, which failure is not cured within five (5) days after written notice thereof by Lessor to Lessee; 
 (b) failure in the performance of any of Lessee’s agreements or obligations hereunder, such default (except failure in the payment of any installment of Base Rent, any Additional Rent or any other monetary
obligation hereunder) continuing for fifteen (15) days after written notice thereof from Lessor to Lessee, provided that if such default is other than the payment of money and cannot be cured within such fifteen (15) day period, then an
Event of Default shall not have occurred if Lessee, within such fifteen (15)

  

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day period, commences curing of such failure and diligently and in good faith prosecutes the same to completion and furnishes evidence thereof to Lessor;

 (c) a general assignment by Lessee or Guarantor for the benefit of creditors. 
 (d) the filing of a voluntary petition in bankruptcy by Lessee or Guarantor or the filing of an involuntary petition by Lessee’s or
Guarantor’s creditors, such involuntary petition remaining undischarged for a period of sixty (60) days; 
 (e)
Intentionally Omitted; 
 (f) the appointment of a receiver to take possession of substantially all of Lessee’s or
Guarantor’s assets or of this leasehold, such receivership remaining undissolved for a period of sixty (60) days; 
 (g) the levy of a writ of attachment or execution or other judicial seizure of substantially all of Lessee’s or Guarantor’s assets or this leasehold, such attachment, execution or other seizure remaining undismissed or
undischarged for a period of sixty (60) days after the levy thereof; or 
 (h) the occurrence of an Event of Default
under any other provision of this Lease. 
 25. Default - Remedies: 
 (a) Lessor’s Right to Re-enter: Upon the happening of any Event of Default, Lessor, at any time thereafter, may: 

(i) with or without notice or demand, declare this Lease to be terminated and re-enter the Premises or any part thereof (with or
without process of law) and expel or remove therefrom Lessee and all parties occupying the same or any of them, using such force as may be necessary to do so, and retake possession of the Premises without prejudice to any remedies that Lessor might
otherwise have by reason of such default; or 
 (ii) re-enter the Premises at Lessor’s option, without declaring this
Lease to be terminated, and relet the Premises or any part thereof for the account of Lessee, on such terms and conditions and at such rent as Lessor may then deem desirable, collecting such rent and applying it to the amount due from Lessee
hereunder, to the expenses of reletting and to any other damages or expenses sustained by Lessor, recovering from Lessee the difference between the proceeds of such reletting and the amount of the Base Rent reserved and to be paid by Lessee
hereunder, which sum Lessee shall pay upon demand. 
 (iii) Should Lessor terminate this Lease by reason of an Event of
Default by Lessee, Lessor may recover from Lessee the amount, at the time of such termination, equal to the excess, if any, of the amount of Base Rent and charges equivalent to Base Rent reserved herein for the balance of the term of this Lease over
the then reasonable rental value of the Premises for the same period. Lessor will not, by any re-entry or other act, be deemed to have terminated this Lease, or the liability of Lessee for the total Base Rent reserved hereunder or any installment
thereof then due or thereafter accruing or for damages, unless Lessor notifies Lessee in writing that Lessor has so elected to terminate this Lease. 
 (b) Interest on Past Due Amounts: In addition to late charge described in Paragraph 6 above, if any installment of Base Rent, any Additional Rent or any other payment is not paid promptly when
due, it will bear interest at the rate of ten percent (10%) per annum from the date on which it becomes due until paid; provided, however, this provision is not intended to relieve Lessee from any default in the making of any payment at the
time and in the manner herein specified. The foregoing interest, expenses and damages will be recoverable from Lessee by the exercise of Lessor’s remedies hereinabove set forth. 
  

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 (c) Bankruptcy of Lessee: In the event of the bankruptcy, reorganization,
liquidation, or dissolution of the Lessee, or in the event Lessee shall make an assignment for the benefit of creditors, or in the event Lessee shall seek similar relief under any present or future Federal or State bankruptcy act, which relief
results in a stay of the termination of this Lease, then, the rent payable hereunder shall be deemed to be an administrative expense. In addition, the Lessee, as debtor in possession, or if appointed, the Trustee in bankruptcy, must assume or reject
this Lease within sixty (60) days (or such shorter period of time as may be permitted by law) after the filing of the petition in bankruptcy. 
 (d) Remedies Cumulative: The remedies of Lessor specified herein will be cumulative as to each default to the extent allowed by law. Additionally, Lessor shall be entitled to all rights and remedies granted to
a lessor in equity, at law, or by statute. 
 26. Right to Cure: In the event Lessor shall neglect or fail to perform or observe any
of the covenants, provisions or conditions contained in this Lease on its part to be performed or observed, and such failure continues for thirty (30) days after written notice of default (or if more than thirty (30) days shall be required
because of the nature of the default, if Lessor shall fail to commence the curing of said default within the thirty (30) day period and proceed diligently thereafter to complete the curing of the default, then Lessor shall be responsible to
Lessee for any actual damages sustained by Lessee as a result of Lessor’s breach, but not special or consequential damages. 
 27.
Holding Over: It is agreed that the date of termination of this Lease and the right of Lessor to recover immediate possession of the Premises thereupon is an important and material matter affecting the parties hereto and the rights of third
parties, all of which have been specifically considered by Lessor and Lessee. In the event of any continued occupancy or holding over of the Premises without the express written consent of Lessor beyond the end of the term hereof, whether in whole
or in part, or by leaving property on the Premises, which property remains on the Premises for a period of fifteen (15) days following written notice by Lessor to Lessee directing Lessee to remove such property, this Lease will be deemed a
monthly tenancy and Lessee will pay the greater of (a) one and one-half (1-1/2) times the Base Rent then in effect pursuant to Paragraph 4, in advance at the beginning of each held-over month, plus any other charges or payments
contemplated in this Lease, or (b) any other costs, expenses, damages, liabilities, and attorney’s fees incurred by Lessor on account of Lessee’s holding over. 
 28. Statement from Lessee: Lessee shall, at any time and from time to time, within five (5) days after written request by Lessor, without
charge, execute, acknowledge and deliver to Lessor a written statement certifying that this Lease is unmodified and in full force and effect if such is the fact (or, if there has been any modification thereof, stating the modification) and the dates
to which Base Rent and other charges have been paid in advance, if any. It is understood that any such statement may be relied upon by any prospective purchaser of Lessor, or by any mortgagee or assignee of any mortgage of Lessor, or by the trustee
or beneficiary of any deed of trust constituting a lien upon the Premises. 
 29. Notices - Manner of Giving: All notices required to
be given hereunder are to be in writing. Such notice shall personally be delivered or sent by United States certified mail, return receipt requested, postage prepaid, addressed to Lessor at c/o Pacific Companies, 1702 East Highland, Suite 310,
Phoenix, Arizona 85016, with a copy to William B. Shearer, Jr., Esq., Powell Goldstein LLP, 1201 West Peachtree Street, NW, Atlanta, GA 30309, and to Lessee at __________________, or to such other place as the respective addressee may have
designated in a written notice to the other party. Service by mail will be deemed to have occurred three (3) days after deposit of the notice in the United States mail. 
 30. Lessor’s Right to Perform Lessee’s Covenants: If Lessee shall at any time fail to pay any sum in accordance with the provisions
hereof, or shall fail to make any other payment or perform any other act on its part to be made or performed, then Lessor, after ten (10) days’ written notice to Lessee following any other grace period or extensions allowed in this Lease
(or without notice in case of emergency) and without waiving, or releasing Lessee from any obligation of Lessee contained in this Lease, may, but shall be under no obligation to: (a) pay any sum payable by Lessee pursuant to the provisions
hereof; or (b) make 

  

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any other payment or perform any other act on Lessee’s part to be made or performed as in this Lease provided; and may enter upon the Premises for any
such purpose, and take all such action thereon, as may be necessary therefor. All sums so paid by Lessor and all costs and expenses, including reasonable attorneys’ fees, incurred by Lessor in connection with the performance of any such act
shall be paid by Lessee to Lessor on demand, together with interest thereon at the rate of fifteen percent (15%) per annum from the respective dates of Lessor’s making of each such payment or incurring of each such cost and expense,
including reasonable attorney’s fees, until repaid by Lessee in full. 
 31. Waiver: No waiver of any default by either party
hereunder will be implied from any omission by either party to take action on account of such default if such default persists or is repeated, and no express waiver will affect any default other than the default specified in the waiver, and then
such waiver will be operative only for the time and to the extent therein stated. A waiver by either party of any provision hereof will not be construed as a waiver of any subsequent breach of the same provision, nor will the consent or approval by
either party to or of any act by the other be deemed to waive or render unnecessary their consent or approval to or of any subsequent similar acts. 
 32. Time: Time is of the essence of each and every provision of this Lease. 
 33. No Recording: Lessee shall not
record this Lease or any abstract or memorandum hereof without the prior written consent of Lessor. 
 34. Subordination by Lessee:
Lessor reserves the right to place liens and encumbrances on the Premises superior in lien and effect to this Lease. This Lease, and any and all renewals, modifications, replacements or extensions thereof at the option of Lessor shall be subject
and subordinate to any liens and encumbrances now or hereinafter imposed by Lessor upon the Premises and Lessee agrees to execute and deliver upon demand such instruments subordinating this Lease to any such lien or encumbrance as shall be required
by Lessor; provided, however, that any such mortgagee or purchaser agrees in the event of foreclosure to be bound by the terms of this Lease and to honor the tenancy of Lessee hereunder. Subject to the foregoing, in the event any proceedings are
brought for the foreclosure of any mortgage on the Premises, Lessee will attorn to the purchaser at the foreclosure sale and recognize the purchaser as the Lessor under this Lease. 
 35. Invalidity: If any provision or any part hereof shall be determined to be invalid, unenforceable or illegal, then such provision shall be
deemed severed from this Lease, and shall not affect the remaining provisions hereof. 
 36. Construction: This Lease shall not be
construed against either Lessor or Lessee. This Lease, its construction, validity and effect, shall be governed and construed by and in accordance with the laws of the State of Arizona. 
 37. Attorneys’ Fees: In the event that it becomes necessary for any party to employ an attorney to enforce any of the terms or provisions of
this Lease, the defaulting party shall pay to the prevailing party all reasonable attorneys’ fees and court costs (if any) in connection therewith, the amount to be fixed by the court without a jury. 
 38. Binding Effect: Subject to the limitations of Paragraph 21 above, this Lease shall inure to the benefit of and shall be binding upon
the parties, their heirs, personal representatives, successors and permitted assignees. 
 39. Net Lease: It is the purpose and intent
of Lessor and Lessee that the Base Rent and Additional Rent payable under this Lease shall be absolutely net to Lessor so that this Lease shall net to Lessor, the Base Rent and Additional Rent specified in this Lease and that except as expressly set
forth in this Lease, all costs, operating expenses, taxes, premiums, fees, interest, charges, expenses, reimbursements and obligations of every kind and nature whatsoever relating to Lessee’s use and occupation of the Premises 

  

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which may arise or become due during or out of the term of this Lease shall, except as expressly set forth in this Lease, be paid or discharged by Lessee.

 40. Conveyance by Lessor: In the event Lessor or any successor Lessor shall convey or otherwise dispose of the Premises, it shall
thereupon be released from all liabilities and obligations imposed upon the Lessor under this Lease (except those accruing prior to such conveyance or other disposition) and such liabilities and obligations shall be binding solely upon the then
owner of the Premises. 
 41. No Personal Liability to Lessor: Lessee shall look solely to Lessor’s interest in the Premises for
the satisfaction of any judgment or decree requiring the payment of money by Lessor which is based on any default under this Lease. No other property or assets of Lessor, or any member, partner of, or shareholder or investor in Lessor, shall be
subject to levy, execution or other enforcement procedures for satisfaction of any such judgment or decree. 
 42. Intentionally
Omitted. 
 43. Intentionally Omitted: 
 44. No Partnership: Nothing contained in this Lease shall be deemed or construed as creating an agency, partnership or joint venture relationship between Lessor and Lessee or between Lessor and any other party,
or cause Lessor to be responsible in any way for the debts or obligations of Lessee or any other party. 
 45. Intentionally Omitted.

 46. Intentionally Omitted: 
 47. Survival of Obligations: Lessee’s obligations set forth in this Lease shall survive the expiration or earlier termination of this Lease with respect to acts, omissions, liabilities and amounts which occurred or accrued, as
the case may be, prior to the expiration or earlier termination of this Lease. Similarly, Lessor’s obligations to Lessee contained in this Lease shall survive the expiration or earlier termination of this Lease with respect to such acts,
omissions, liabilities and amounts which occurred or accrued, as the case may be, prior to the expiration or earlier termination of this Lease. 
 48. Entire Agreement: This Lease constitutes the entire agreement between Lessor and Lessee with respect to the lease of the Premises and supersedes any and all other prior written or oral agreements or understandings with respect to
the Premises. This Lease may not be modified or amended in any respect except by an instrument signed in writing by both Lessor and Lessee. 
 49. Rubbish Removal: Lessee shall keep the Premises clean, both inside and outside, at its sole cost and expense and shall remove the ashes, garbage, excelsior, straw, and other refuse from the Premises. Lessee shall not bum any
materials or rubbish of any description upon the Premises. Lessee shall keep all accumulated rubbish in covered containers and shall have same removed regularly. 
 50. Hazardous Materials: 
 (a) Hazardous Materials Laws:
“Hazardous Materials Laws” means any and all federal, state or local laws, ordinances, rules, decrees, orders, regulations or court decisions (including the so-called “common-law”) relating to hazardous
substances, hazardous materials, hazardous waste, toxic substances, environmental conditions on, under or about any of the improved real properties comprising the Premises, or soil and ground water conditions, including, but not limited to, the
Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), as amended, 42 U.S.C. .9601, et seq., the Resource Conversation and Recovery Act (“RCRA”), 42 U.S.C. 6901, et seq., the

  

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Hazardous Materials Transportation Act, 49 U.S.C. 1801, et seq., any amendments to the foregoing, and any similar federal, state or local laws, ordinances,
rules, decrees, orders or regulations. 
 (b) Hazardous Materials: “Hazardous Materials” means any
chemical, compound, material, substance or other matter that: (i) is a flammable explosive, asbestos, radioactive material, nuclear medicine material, drug, vaccine, bacteria, virus, hazardous waste, toxic substance, petroleum product, or
related injurious or potentially injurious material, whether injurious or potentially injurious by itself or in combination with other materials; (ii) is controlled, designated in or governed by any Hazardous Materials Law; (iii) gives
rise to any reporting, notice or publication requirements under any Hazardous Materials Law; or (iv) gives rise to any liability;-responsibility or duty on the part of Lessee or Lessor with respect to any third person under any Hazardous
Materials Law. 
 (c) Use: Except as expressly provided otherwise in this Lease, Lessee shall not allow any Hazardous
Material to be used, generated, released, stored or disposed of on, under or about, or transported from, any of the Premises, unless such use is conducted in compliance with the provisions of this Paragraph 50.  
 (d) Compliance With Laws: Lessee shall comply with, and shall maintain its operations on the Premises in compliance with, all
Hazardous Materials Laws. Lessee shall perform any monitoring, investigation, clean-up, removal and other remedial work (collectively, “Remedial Work”) required as a result of any release or discharge by Lessee of Hazardous
Materials affecting the Premises or any violation of Hazardous Materials Laws by Lessee or any assignee or sublessee of Lessee or their respective agents, contractors, employees, licensees, or invitees. Lessor shall have the right to intervene in
any governmental action or proceeding involving any Remedial Work, and to approve performance of the work, in order to protect Lessor’s interests 
 (e) Compliance With Insurance Requirements: Lessee shall comply with the requirements of Lessor and Lessee’s respective insurers regarding Hazardous Materials. 
 (f) Notice; Reporting: Lessee shall notify Lessor, in writing, within two (2) days after any of the following: (a) a
release or discharge of any Hazardous Material, whether or not the release or discharge is in quantities that would otherwise be reportable to a public agency; (b) Lessee’s receipt of any order of a governmental agency requiring any
Remedial Work pursuant to any Hazardous Materials Laws; (c) Lessee’s receipt of any warning, notice of inspection, notice of violation or alleged violation, or Lessee’s receipt of notice or knowledge of any proceeding, investigation
of enforcement action, pursuant to any Hazardous Materials Laws; or (d) Lessee’s receipt of notice or knowledge of any claims made or threatened by any third party against Lessee or the Premises relating to any loss or injury resulting
from Hazardous Materials. Lessee shall deliver to Lessor copies of all test results, reports and business or management plans required to be filed with any governmental agency pursuant to any Hazardous Materials Laws. 
 (g) Termination; Expiration: Lessee may terminate this Lease at any time during the Lease Term by giving Lessor ninety
(90) days advance written notice. Upon the termination or expiration of this Lease, Lessee shall remove any equipment, improvements or storage facilities utilized by Lessee in connection with any Hazardous Materials and shall clean up,
detoxify, repair and otherwise restore the Premises to a Hazardous Materials condition comparable to such condition as existed on the Commencement Date. 
 (h) Indemnity: Lessee shall protect, indemnify, defend and hold Lessor harmless for, from and against any and all claims, costs, expenses, suits, judgments, actions, investigations, proceedings and liabilities
arising out of or in connection with any breach by Lessee of any provisions of this Paragraph 50 or directly or indirectly arising out of the use, generation, storage, release, disposal or transportation of Hazardous Materials by Lessee or
any sublessee or assignee of Lessee, or their respective agents, contractors, employees, licensees, or invitees, on, under or about the Premises during the Lease term or Lessee’s occupancy of Premises. Neither the consent by Lessor to the use,
generation, storage, release, disposal or 

  

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transportation of Hazardous Materials nor the strict compliance with all Hazardous Material Laws shall excuse Lessee from Lessee’s indemnification
obligations pursuant to this Paragraph 50(h). The foregoing indemnity shall be in addition to and not a limitation of the indemnification provisions of Paragraph 14 of this Lease. 
 (i) Assignment; Subletting: If Lessor’s consent is required for an assignment of this Lease or a subletting of the Premises,
Lessor shall have the right to refuse such consent if the possibility of a release of Hazardous Materials is materially increased as a result of the assignment or sublease. 
 (j) Entry and Inspection; Cure: Lessor and its agents, employees and contractors, shall have the right, but not the obligation, to
enter the Premises at all reasonable times to inspect the same and Lessee’s compliance with the terms and conditions of this Paragraph 50, or to conduct investigations and tests. No prior notice to Lessee shall be required in the event
of an emergency, or if Lessor has reasonable cause to believe that violations of this Paragraph 50 have occurred, or if Lessee consents at the time of entry. In all other cases, Lessor shall give at least three (3) days prior notice to
Lessee. Lessor shall have the right, but not the obligation, to remedy any violation by Lessee of the provisions of this Paragraph 50 or to perform any Remedial Work which is necessary or appropriate as a result of any governmental order,
investigation or proceeding attributable to the acts or omissions of Lessee or any sublessee or assignee or their respective agents, servants, contractors or employees. Lessee shall pay, upon demand, as additional rent, all costs incurred by Lessor
in remedying such violations or performing all Remedial Work, plus interest thereon at the rate of fifteen percent (15%) per annum from the date of demand until the date received by Lessor. 
 (k) Event of Default: The release or discharge by Lessee or any sublessee or assignee or their respective agents, servants,
contractors or employees of any Hazardous Material or the violation by Lessee or any sublessee or assignee or their respective agents, servants, contractors or employees of any Hazardous Materials Law shall constitute an Event of Default by Lessee
under this Lease. In addition to and not in lieu of the remedies available under this Lease as a result of such Event of Default, Lessor shall have the right, without terminating this Lease, to require Lessee to suspend its operations and activities
on the Premises affected thereby until Lessor is satisfied that appropriate Remedial Work has been or is being adequately performed and Lessor’s election of this remedy shall not constitute a waiver of Lessor’s right thereafter to pursue
the other remedies set forth in this Lease. 
 51. Representations and Warranties of Lessee: Lessee represents and warrants to Lessor
as follows: 
 Authority of Lessee: Lessee is a corporation, duly incorporated in Washington, validly existing and qualified to do
business in the State of Arizona. The persons who have executed this Lease on behalf of Lessee are duly authorized to do so. 
 Enforceability: This Lease constitutes the legal, valid and binding obligation of Lessee, enforceable against Lessee in accordance with its terms, subject, however, to bankruptcy, insolvency, reorganization, arrangement, moratorium
or other similar laws relating to or affecting the rights of creditors generally, general principles of equity, whether enforceability is considered in a proceeding in equity or at law and to the qualification that certain waivers, procedures,
remedies and other provisions of this Lease may be unenforceable under or limited by applicable law, however, none of the foregoing shall prevent the practical realization to Lessor of the benefits intended by this Lease. 
 52. Representations and Warranties of Lessor: Lessor represents and warrants to Lessee as follows: 
 Authority of Lessor: Lessor is a limited liability company, duly organized in Arizona, validly existing and qualified to do business in the State
of Arizona. The persons who have executed this Lease on behalf of Lessor are duly authorized to do so. 
  

 15 

 Enforceability: This Lease constitutes the legal, valid and binding obligation of Lessor,
enforceable against Lessor in accordance with its terms, subject, however, to bankruptcy, insolvency, reorganization, arrangement, moratorium or other similar laws relating to or affecting the rights of creditors generally, general principles of
equity, whether enforceability is considered in a proceeding in equity or at law and to the qualification that certain waivers, procedures, remedies and other provisions of this Lease may be unenforceable under or limited by applicable law, however,
none of the foregoing shall prevent the practical realization to Lessor of the benefits intended by this Lease. 
 53. Severability.
If any provision of this Lease shall be determined to be void by any court of competent jurisdiction, then such determination shall not affect any other provision of this Lease and all such other provisions shall remain in full force and effect.
It is the intention of Lessor and Lessee that if any provision of this Lease is capable of two constructions, one of which would render the provision void and the other of which would render the provision valid, then the provision shall have the
meaning which renders it valid. 
 54. Intentionally Omitted. 
 55. Waiver of Redemption. Lessee hereby expressly waives any and all rights of redemption granted by or under any present or future laws in the
event Lessee shall be evicted or dispossessed for any cause, or in the event of Lessor obtaining possession of the Premises by reason of the violation by Lessee of any of the covenants and conditions of this Lease or otherwise. The rights given to
Lessor in this Paragraph 55 are in addition to any rights that may be given to Lessor by any statute or otherwise. 
 56.
Intentionally Omitted. 
 57. Brokerage Disclosure. Lessor and Lessee acknowledge and agree that Lessor has disclosed to
Lessee that Lessor and/or Lessor’s Affiliates or constituent partners or members may be licensed real estate brokers in the State of Arizona and that employees, affiliates and constituent partners or members of Lessor, Lessor’s affiliates
and/or Lessor’s constituent partners may be licensed real estate salespersons in the State of Arizona. 
 58. Waiver of Right to Jury
Trial. LESSOR AND LESSEE EACH WAIVE THEIR RESPECTIVE RIGHT TO A TRIAL BY JURY OF ANY CONTRACT OR TORT CLAIM, COUNTERCLAIM, CROSS-COMPLAINT OR CAUSE OF ACTION IN ANY ACTION, PROCEEDING OR HEARING BROUGHT BY EITHER LESSOR OR LESSEE AGAINST THE
OTHER ON ANY MATTER ARISING OUT OF OR IN ANY WAY CONNECTED TO THIS LEASE, THE RELATIONSHIP OF LESSOR AND LESSEE OR LESSEE’S USE OR OCCUPANCY OF THE PREMISES, INCLUDING ANY CLAIM OF INJURY OR DAMAGE OR THE ENFORCEMENT OF ANY REMEDY UNDER ANY
CURRENT OR FUTURE LAW, STATUTE, REGULATION, CODE OR ORDINANCE. 
 [SIGNATURES ON FOLLOWING PAGE] 
  

 16 

 IN WITNESS WHEREOF, the parties have executed this lease on the day and year first above written:

  

			
	 LESSEE:

	
	 ADVENTURE VENDING, INC.

	 a Washington corporation

		
	 By:
	 	 /s/ David W. Cole

	 Name: 
	 	 David W. Cole

	 Title:
	 	 President

			
	
	LEVINE & RIGGLE RENTAL COMPANY LIMITED PARTNERSHIP
	 an Arizona limited partnership

		
	 By: 
	 	 Williams Manufacturing, Inc.,
 an Arizona corporation and
its general partner

		
	 By:
	 	 /s/ William S. Levine, President

		 	 William S. Levine, President

  

 17 

 EXHIBIT “A” 
 LEGAL DESCRIPTION OF THE LAND 
 Lot 11, CHANDLER-FREEWAY BUSINESS PARK AMENDED, according to Book 242
of Maps, page 3, records of Maricopa County, Arizona. 
  

 18Additional forms of opinion and restricted stock agreements used under Equity

 EXHIBIT 10.2 
  
 NON-QUALIFIED STOCK OPTION AGREEMENT 
  
 This Option Agreement (the “Agreement”) is made as of the      day of
                    , between Qwest Communications International Inc., a Delaware Corporation, and (the “Optionee”).

  
 WHEREAS, pursuant to the Qwest Communications International
Inc. Equity Incentive Plan (the “Plan”), the Company desires to afford the Optionee the opportunity to purchase shares of Company Common Stock, par value $.01 per share (the “Common Shares”). 
  
 NOW, THEREFORE, in connection with the mutual covenants hereinafter set forth
and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows: 
  

	1.	DEFINITIONS: CONFLICTS. 

  
 Capitalized terms used and not otherwise defined herein shall have the meanings given thereto in the Plan. The terms and provisions of the Plan are
incorporated herein by reference. In the event of a conflict or inconsistency between the terms and provisions of the Plan and the terms and provisions of this Agreement, the terms and provisions of the Plan shall govern and control. In the event of
a conflict or inconsistency between the terms and conditions of this Agreement and any agreement between Optionee and U S WEST, Inc. and/or its subsidiaries, the terms and conditions of this Agreement shall govern and control. In the event of a
conflict or inconsistency between the terms and conditions of this Agreement and any employment agreement between Company and Optionee (other than an agreement between the Optionee and U S WEST, Inc. and/or its subsidiaries), such
employment agreement shall govern. 
  

	2.	GRANT OF OPTIONS. 

  
 The Company hereby grants to the Optionee the right and option (the “Option” or “Options”) to purchase up to, but not exceeding in the
aggregate,                      Common Shares, on the terms and conditions herein set forth. 
  

	3.	PURCHASE PRICE. 

  
 The purchase price of each Common Share covered by the Option shall be
                     (the “Purchase Price”). 
  

	4.	TERM OF OPTIONS. 

  
 The term of the Option shall be ten (10) years from the date hereof, subject to earlier termination as provided in Sections 6 and 8 hereof.

  

	5.	VESTING OF OPTIONS. 

  
 The Option, subject to the terms, conditions and limitations contained herein, shall vest and become exercisable with respect to the Common Shares in
installments of     % one year from the date hereof and in additional installments of     % on each subsequent anniversary thereafter; provided that with respect to each such installment, the Optionee has
remained in continuous employment with the Company from the date hereof through the date such installment is designated to vest. 
  
 Notwithstanding the vesting schedule set forth above, the Options will vest and become immediately exercisable in the event of the Optionee’s death
or Disability and under the circumstances described in Section 7 below. 

	6.	TERMINATION OF EMPLOYMENT. 

  

	 	(a)	Termination of Employment for Reasons other than Death, Disability, Retirement or Cause. In the event the Optionee’s employment with the Company terminates for reasons
other than Optionee’s death, Disability, Retirement or Cause, the Option shall remain exercisable for a period of up to 90 calendar days after the date of Optionee’s termination of employment (but not beyond the term of the Option), to the
extent vested and exercisable on the date of Optionee’s termination of employment. 

  

	 	(b)	Termination of Employment Because Optionee Dies, Becomes Disabled or Retires. In the event Optionee’s employment with the Company terminates because Optionee dies,
becomes Disabled (as defined in the Plan) or Retires, the Option shall remain exercisable for two years after Optionee’s termination of employment (but not beyond the term of the Option), to the extent vested and exercisable at the time
Optionee’s employment terminated. For purposes of this Agreement, the terms “Retire” and “Retirement” shall mean that, at the time of Optionee’s termination of employment, Optionee meets one of the following age and
service combinations: 

  

					
	 	  	Age at Retirement

	    	Term of Employment
(as defined in the
Qwest Pension Plan)

	 Combination 1
	  	Any Age	    	at least 30 years
	 Combination 2
	  	50-54	    	at least 25 years
	 Combination 3
	  	55-59	    	at least 20 years
	 Combination 4
	  	60-64	    	at least 15 years
	 Combination 5
	  	65 and older	    	at least 10 years

  

	 	(c)	Termination of Employment for Cause. In the event Optionee’s employment with the Company is terminated by the Company for Cause, the Option shall be forfeited as of the
date of such termination, whether or not otherwise vested or exercisable on such date. For purposes of this Agreement, “cause” shall mean: 

  
 (1) Commission of an act deemed by the Company in its sole discretion to be an act of dishonesty, fraud,
misrepresentation or other act of moral turpitude that would reflect negatively upon Qwest or compromise the effective performance of Optionee’s duties; 
  

(2) Unlawful conduct that would reflect negatively upon Qwest or compromise the effective performance of Optionee’s duties, as
determined by the Company in its sole discretion; 
  
 (3) Conviction of (or pleading nolo contendere to) any felony or a misdemeanor involving moral turpitude; 
  
 (4) Continued failure to substantially perform Optionee’s duties to the satisfaction of his or her supervisor (other than such
failure resulting from Optionee’s incapacity due to physical or mental illness) after the delivery of written notice to Optionee specifically identifying the manner in which Optionee has failed to substantially perform his or her duties and
Optionee has been afforded a reasonable opportunity to substantially perform his or her duties; or 
  
 (5) A willful violation of the Qwest Code of Conduct or other Qwest policies that would reflect negatively upon Qwest or compromise the
effective performance of Optionee’s duties, as determined by the Company in its sole discretion. 
  

	 	(d)	Unvested Options Forfeited Upon Termination of Employment. Any portion of the Option that has not vested as of the date Optionee’s employment terminates shall be
forfeited immediately upon termination of Optionee’s employment with the Company. 

  

	7.	CHANGE OF CONTROL. 

  
 Subject to the conflict provisions in Paragraph 1 of this Agreement, in the event there is a both a Change in Control, and a subsequent termination of
Optionee’s employment by the Company for a reason other than Cause 

  

 2 

 
in a two-year period after the date of such Change of Control, the Option shall vest in full and become immediately exercisable on the date of such
termination, and shall remain vested and exercisable during the remaining term thereof. 
  

	8.	FORFEITURE OF OPTION. 

  

	 	(a)	Performance for Competitors. Notwithstanding any other provision of this Agreement, Optionee shall immediately forfeit all rights under the Option, if, Optionee accepts
employment with a Competitor (as defined herein) or during the [12][18] month period beginning on the date of Optionee’s termination of employment, Optionee owns more than 2% of the common stock of, or is employed by, advises, represents or
assists in any other way any Competitor and if the Company, in its sole discretion, determines that such actions by Optionee are, or could be, detrimental to the Company. For the purposes of this Agreement, “Competitor” means a person or
entity that competes with, or intends to compete with, the Company with respect to any product sold or service performed by the Company in any state or country in which the Company sells such products or performs such services. Notwithstanding the
foregoing, if Optionee is an attorney, Optionee may, subject to the applicable rules of ethics and the nondisclosure provisions herein, perform services solely in his or her capacity as an outside attorney on behalf of any person or entity, even if
such person or entity competes with Qwest or sells goods or services similar to those Qwest sells. 

  

	 	(b)	Non-solicitation of Employees. Notwithstanding any other provision of this Agreement, Optionee shall immediately forfeit all rights under the Option, if, during the one-year
period beginning on the date of Optionee’s termination or employment, Optionee induces any employee of Qwest to leave Qwest’s employment, and if the Company, in its sole discretion, determines that such actions by Optionee are detrimental
to the Company. 

  

	 	(c)	 Nondisclosure. Optionee will not disclose outside of the Company or to any person within the Company who does not have a legitimate business need to know,
any Confidential Information (as defined below) during Optionee’s employment with the Company. Optionee will not disclose to anyone or make any use of any Confidential Information of the Company after Optionee’s employment with the Company
ends for any reason, except as required by law after timely notice is given by Optionee to the Company. This agreement not to disclose or use Confidential Information means, among other things, that Optionee, for a period of [12][18] months
beginning on the effective date of the termination of Optionee’s employment with the Company or any other Qwest entity for any reason, may not take or perform a job whose responsibilities would likely lead Optionee to disclose or use
Confidential Information. Optionee acknowledges and agrees that the assumption and performance of such responsibilities, in that situation, would likely result in the disclosure or use of Confidential Information and would likely result in
irreparable injury to the Company. Moreover, during Optionee’s employment with the Company, Optionee shall not disclose or use for the benefit of the Company, himself or any other person or entity any confidential or trade secret information
belonging to any former employer or other person or entity to which Optionee owes a duty of confidence or nondisclosure of such information. If a court determines that this provision is too broad, Optionee and Company agree that the court shall
modify the provision to the extent (but not more than is) necessary to make the provision enforceable. “Confidential Information” means any oral or written information not generally known outside of the Company, including without
limitation, trade secrets, intellectual property, software and documentation, customer information (including, without limitation, customer lists), company policies, practices and codes of conduct, internal analyses, analyses of competitive
products, strategies, merger and acquisition plans, marketing plans, corporate financial information, information related to negotiations with third parties, information protected by the Company’s privileges (such as the attorney-client
privilege), internal audit reports, contracts and sales proposals, training materials, employment and personnel records, performance evaluations, and other sensitive information. This agreement does not relieve Optionee of any obligations Optionee
has to the Company under law. If Optionee fails to comply with the provisions of this paragraph 8(c), Optionee shall 

  

 3 

	 	 
immediately forfeit all rights under the Option if the Company, in its sole discretion, determines that such actions by Optionee are, or were, detrimental to
the Company. Nothing in this paragraph shall prevent or limit Optionee’s ability to provide truthful responses to legitimate inquiries from governmental agencies. 

  

	 	(d)	Post-termination finding of Cause. Notwithstanding any other provision of this Agreement, Optionee shall immediately forfeit all rights under the Award and shall repay to
Company all proceeds from the vesting or lapsing of the Award occurring after Optionee’s termination of employment, if, within the two-year period beginning on Optionee’s termination date, the Committee determines that Optionee, while
employed by the Company, engaged in conduct constituting Cause. Consistent with applicable law, any repayments shall include an interest factor equal to the applicable federal short term interest rate pursuant to Internal Revenue Code section 1274.
Interest shall begin to accrue on the 31st day after Optionee (or, if applicable, Optionee’s estate or beneficiary) received the Company’s written notification of its determination that such Cause exists or existed, and shall continue to
accrue until complete repayment is made to the Company. This provision shall not be effective after a Change in Control. 

  

	9.	TRANSFERABILITY OF OPTION. 

  
 Except to the extent permitted by the Committee in accordance with the provisions of the Plan, the Optionee may not voluntarily or involuntarily pledge,
hypothecate, assign, sell or otherwise transfer the Option except by will or the laws of descent and distribution, and during the Optionee’s lifetime, the Option shall be exercisable only by the Optionee. 
  

	10.	NO RIGHTS AS A SHAREHOLDER. 

  
 The Optionee shall have no rights as a shareholder with respect to any Common Shares until the date of issuance to the Optionee of a certificate
evidencing such Common Shares. No adjustments, other than as provided in Article IV of the Plan, shall be made for dividends (ordinary or extraordinary, whether in cash, securities or other property) or distributions for which the record date is
prior to the date the certificate for such Common Shares is issued. 
  

	11.	REGISTRATION: GOVERNMENTAL APPROVAL. 

  
 The Option granted hereunder is subject to the requirement that, if at any time the Company determines, in its discretion, that the listing, registration,
or qualifications of Common Shares issuable upon exercise of the Option is required by any securities exchange or under any state or Federal law, rule or regulation, or the consent or approval of any governmental regulatory body or other person is
necessary or desirable as a condition of, or in connection with, the issuance of Common Shares, no Common Shares shall be issued, in whole or in part, unless such listing, registration, qualification, consent or approval has been effected or
obtained free of any conditions or with such conditions as are acceptable to the Committee. 
  

	12.	METHOD OF EXERCISING OPTION. 

  
 Subject to the terms and conditions of this Agreement, the Option may be exercised by contacting the stock broker designated by the Company from time to
time and following such broker’s instructions. Alternatively, if Optionee wishes to use his or her personal stock broker, Optionee may provide written notice to the Company, Attention: Manager, Stock Administration. Such notice shall state the
election to exercise the Option and the number of Common Shares in respect of which the Option is being exercised, shall be signed by the person or persons so exercising the Option and shall be accompanied by payment in full of the Purchase Price
for such Common shares. 
  

 4 

 Payment of such Purchase Price shall be made in United States dollars by certified check or bank
cashier’s check payable to the order of the Company or by wire transfer to such account as may be specified by the Company for this purpose. Subject to such procedures and rules as may be adopted from time to time by the Committee, the Optionee
may also pay such Purchase Price by (i) tendering to the Company Common Shares with an aggregate Fair Market Value on the date of exercise equal to such Purchase Price provided that such Common Shares must have been held by the Optionee for
more than six (6) months, (ii) delivery to the Company of a copy of irrevocable instructions to a stockbroker to sell Common Shares or to authorize a loan from the stockbroker to the Optionee and to deliver promptly to the Company an
amount sufficient to pay such Purchase Price, or (iii) any combination of the methods of payment described in clauses (i) and (ii) and in the preceding sentence. The certificate for Common Shares as to which the Option shall have been
so exercised shall be registered in the name of the person or persons so exercising the Option. All Common Shares purchased upon the exercise of the Option as provided herein shall be fully paid and non-assessable. 
  
 The Company’s Insider Trading Policy 110 requires that all Insiders must
pre-clear with the Law Department all proposed transactions in Qwest Securities, including, but not limited to, exercises of options prior to effecting such transaction. 
  

	13.	INCOME TAX WITHHOLDING. 

  
 The Company may make such provisions and take such steps as it may deem reasonably necessary or appropriate for the withholding of all federal, state,
local and other taxes required by law to be withheld with respect to the exercise of the Option and the issuance of the Common Shares, including, but not limited to, deducting the amount of any such withholding taxes from any other amount then or
thereafter payable to the Optionee, or requiring the Optionee, or the beneficiary or legal representative of the Optionee, to pay to the Company the amount required to be withheld or to execute such documents as the Company deems necessary or
desirable to enable it to satisfy its withholding obligations. 
  

	14.	COMMITTEE DISCRETION. 

  
 Any decision, interpretation or other action made or taken in good faith by the Committee arising out of or in connection with this Agreement, the Plan or
the Option shall be final, binding and conclusive on the Company, Optionee and any respective heir, executor, administrator, successor or assign. 
  

	15.	NON-QUALIFIED STOCK OPTION. 

  
 The Option granted hereunder is not intended to be an “incentive stock option” within the meaning of Section 422 of the Code. 

 

	16.	WAIVER OF RIGHT TO JURY. 

  
 By signing this Agreement, Optionee voluntarily, knowingly and intelligently waives any right he or she may have to a jury trial for all claims relating
to this Agreement and any other claim relating to Optionee’s employment with Company. The Company also hereby voluntarily, knowingly, and intelligently waives any right it might otherwise have to a jury trial for all claims relating to this
Agreement and any other claim relating to Optionee’s employment with the Company. 
  

	17.	GOVERNING LAW. 

  
 This Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware, without regard to the conflict of laws provisions
of any state. Any action to enforce this Agreement shall be brought in Colorado state or federal district court and the parties waive any objection to the jurisdiction or venue of such courts. 
  

 5 

	18.	HEADINGS. 

  
 Headings are for the convenience of the parties and are not deemed to be part of this Agreement. 
  

	19.	EXECUTION. 

  
 This Agreement is voidable by the Company if the Optionee does not execute the Agreement within 30 days of execution by the Company. 
  
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date and year first written above. 
  

					
	 	  	 	 	QWEST COMMUNICATIONS INTERNATIONAL INC.
			
	  

	  	By:	 	  

	Date	  	 	 	EVP-Chief Human Resources Officer
			
	 	  	 	 	OPTIONEE:
			
	  

	  	 	 	  

	 Date
	  	 	 	 

  

 6 

 RESTRICTED STOCK AGREEMENT 
  
 This Restricted Stock Agreement (“Agreement”) is made as of the      day of
                    , 200  , between Qwest Communications International Inc., a Delaware corporation, and
                     (the “Grantee”). 
  
 WHEREAS, pursuant to the Qwest Communications International Inc. Equity Incentive Plan (the “Plan”), the Company desires to grant shares of
Common Stock, par value $0.01 per share, of the Company (“Common Stock”) to the Grantee subject to the restrictions and on the terms and conditions specified below. 
  
 NOW THEREFORE, in connection with the mutual covenants hereinafter set forth and for other good and valuable consideration,
the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows: 
  

	1.	DEFINITIONS: CONFLICTS. 

  
 Capitalized terms used and not otherwise defined herein shall have the meanings given thereto in the Plan. The terms and provisions of the Plan are
incorporated herein by reference. In the event of a conflict or inconsistency between the terms and provisions of the Plan and the terms and provisions of this Agreement, the terms and provisions of the Plan shall govern and control. In the event of
a conflict or inconsistency between the terms and conditions of this Agreement and any agreement between Grantee and U S WEST, Inc. and/or its subsidiaries, the terms and conditions of this Agreement shall govern and control. In the event of a
conflict or inconsistency between the terms and conditions of this Agreement and any employment agreement between Company and Grantee (other than an agreement between the Grantee and U S WEST, Inc. and/or its subsidiaries), such employment
agreement shall govern. 
  

	2.	GRANT OF RESTRICTED STOCK. 

  
 The Company hereby grants to the Grantee
                     shares (the “Shares”) of Common Stock (the “Restricted Stock”), effective as of
                     (the “Transfer Date”). After the Grantee becomes the holder of record with respect to the Restricted Stock, the
Grantee shall be treated as the beneficial owner of the Restricted Stock and shall have the right to receive all amounts, including cash and property of any kind, distributed with respect to the Restricted Stock. 
  

	3.	RESTRICTIONS. 

  
 The Grantee shall not sell, assign, transfer by gift or otherwise, pledge, hypothecate, or otherwise dispose of, by operation of law or otherwise, any of
the Shares for the period commencing on the Transfer Date and ending on the Expiration Date (as defined in Section 4 below), except as otherwise provided in Section 4 or Section 5 or as otherwise permitted by this Agreement or the
terms of the Plan. 
  
 If any transfer of Shares is made or
attempted to be made contrary to the terms of this Agreement, the Company shall have the right to acquire for its own account, without the payment of any consideration therefor, such Shares from the owner thereof or his transferee, at any time
before or after such prohibited transfer. In addition to any other legal or equitable remedies it may have, the Company may enforce its rights to specific performance to the extent permitted by law and may exercise such other equitable remedies then
available to it. The Company may refuse for any purpose to recognize any transferee who receives Shares contrary to the provisions of this Agreement as a stockholder of the Company and may retain and/or recover all dividends on such Shares that were
paid or payable subsequent to the date on which the prohibited transfer was made or attempted. 
  

	4.	VESTING; LAPSE OF RESTRICTIONS. 

  
 Except as otherwise provided in this Agreement, the Shares of Restricted Stock shall vest in installments of     % one year from the
date hereof and in additional installments of     % on each subsequent anniversary thereafter; provided that, with respect to each installment, the Grantee has remained in continuous employment with the Company from the date
hereof through the date such installment is designed to vest. 

 The Restricted Stock shall be fully vested and this Agreement shall terminate on the last installment
date described above (the “Expiration Date”). Shares that have become vested and as to which the restrictions have lapsed shall be referred to as Vested Shares. Shares that have not become vested and as to which the restrictions have not
lapsed shall be referred to as Unvested Shares. 
  
 Notwithstanding the vesting schedule set forth above, the Unvested Shares will become Vested Shares in the event of the Grantee’s death or Disability. 
  
 The Grantee may, at Grantee’s discretion and subject to the policies of the Company, sell, assign, transfer by gift or
otherwise, hypothecate, or otherwise dispose of, by operation of law or otherwise, any of the Vested Shares not withheld by the Company for tax withholding purposes pursuant to Section 9. 
  

	5.	TERMINATION OF EMPLOYMENT; FORFEITURE OF UNVESTED SHARES. 

  
 In the event the Grantee’s employment with the Company is terminated for any reason other than due to death or Disability, all Unvested Shares shall
be forfeited and the Grantee shall immediately transfer and assign to the Company, without the requirement of consideration, all Unvested Shares, which shall promptly be tendered to the Company by the delivery of certificates, if any, for such
Unvested Shares, duly endorsed in blank by the Grantee or the Grantee’s representative or with stock powers attached thereto duly endorsed, at the Company’s principal offices, all in form suitable for the transfer of such Shares to the
Company without the payment of any consideration therefor by the Company. After the time at which any such Shares are required to be delivered to the Company for transfer to the Company, the Company shall not pay any dividend to the Grantee on
account of such Shares or permit the Grantee to exercise any of the privileges or rights of a stockholder with respect to such Shares, but shall, in so far as permitted by law, treat the Company as the owner of such Shares. 
  

	6.	ADJUSTMENT OF THE SHARES. 

  
 Upon the occurrence of an event described in Article IV of the Plan, the Shares shall be adjusted in accordance with Article IV. 
  

	7.	FORFEITURE OF UNVESTED SHARES. 

  

	 	(a)	Performance for Competitors. Notwithstanding any other provision of this Agreement, Grantee shall immediately forfeit all rights under the Restricted Stock Award, if, Grantee
accepts employment with a Competitor (as defined herein) or during the [12][18] month period beginning on the date of Grantee’s termination of employment, Grantee owns more than 2% of the common stock of, or is employed by, advises, represents
or assists in any other way any Competitor and if the Company, in its sole discretion, determines that such actions by Grantee are, or could be, detrimental to the Company. For the purposes of this Agreement, “Competitor” means a person or
entity that competes with, or intends to compete with the Company with respect to any product sold or service performed by the Company in any state or country in which the Company sells such products or performs such services, and if the Company, in
its sole discretion, determines that such actions by Grantee are detrimental to the Company. Notwithstanding the foregoing, if Grantee is an attorney, Grantee may, subject to the applicable rules of ethics and the nondisclosure provisions herein,
perform services solely in his or her capacity as an outside attorney on behalf of any person or entity, even if such person or entity competes with Qwest or sells goods or services similar to those Qwest sells. 

  

	 	(b)	Non-solicitation of Employees. Notwithstanding any other provision of this Agreement, Grantee shall immediately forfeit all rights under the Restricted Stock Award, if,
during the one-year period beginning on the date of Grantee’s termination or employment, Grantee induces any employee of Qwest to leave Qwest’s employment, and if the Company, in its sole discretion, determines that such actions by Grantee
are detrimental to the Company. 

  

 2 

	 	(c)	Nondisclosure. Grantee will not disclose outside of the Company or to any person within the Company who does not have a legitimate business need to know, any Confidential
Information (as defined below) during Grantee’s employment with the Company. Grantee will not disclose to anyone or make any use of any Confidential Information of the Company after Grantee’s employment with the Company ends for any
reason, except as required by law after timely notice is given by Grantee to the Company. This agreement not to disclose or use Confidential Information means, among other things, that Grantee, for a period of [12][18] months beginning on the
effective date of the termination of Grantee’s employment with the Company or any other Qwest entity for any reason, may not take or perform a job whose responsibilities would likely lead Grantee to disclose or use Confidential Information.
Grantee acknowledges and agrees that the assumption and performance of such responsibilities, in that situation, would likely result in the disclosure or use of Confidential Information and would likely result in irreparable injury to the Company.
Moreover, during Grantee’s employment with the Company, Grantee shall not disclose or use for the benefit of the Company, himself or any other person or entity any confidential or trade secret information belonging to any former employer or
other person or entity to which Grantee owes a duty of confidence or nondisclosure of such information. If a court determines that this provision is too broad, Grantee and Company agree that the court shall modify the provision to the extent (but
not more than is) necessary to make the provision enforceable. “Confidential Information” is any oral or written information not generally known outside of the Company, including without limitation, trade secrets, intellectual property,
software and documentation, customer information (including, without limitation, customer lists), company policies, practices and codes of conduct, internal analyses, analyses of competitive products, strategies, merger and acquisition plans,
marketing plans, corporate financial information, information related to negotiations with third parties, information protected by the Company’s privileges (such as the attorney-client privilege), internal audit reports, contracts and sales
proposals, training materials, employment and personnel records, performance evaluations, and other sensitive information. This agreement does not relieve Grantee of any obligations Grantee has to the Company under law. If Grantee fails to comply
with the provisions of this paragraph 7(c), Grantee shall immediately forfeit all rights under the Restricted Stock Award if the Company, in its sole discretion, determines that such actions by Grantee are, or were, detrimental to the Company.
Nothing in this paragraph shall prevent or limit Grantee’s ability to provide truthful responses to legitimate inquiries from governmental agencies. 

  

	 	(d)	Post-termination finding of Cause. Notwithstanding any other provision of this Agreement, Grantee shall immediately forfeit all rights under the Restricted Stock Award and
shall repay to Company all proceeds from the vesting or lapsing of the Award occurring after Grantee’s termination of employment, if, within the two-year period beginning on Grantee’s termination date, the Company determines that Grantee,
while employed by Company, engaged in conduct constituting Cause (as defined by any employment agreement between Company and Grantee, or if there is no employment agreement, as defined by the Plan). Consistent with applicable law, any repayments
shall include an interest factor equal to the applicable federal short term interest rate pursuant to Internal Revenue Code section 1274. Interest shall begin to accrue on the 31st day after Grantee (or, if applicable, Grantee’s estate or
beneficiary) received Company’s written notification of its determination that such Cause exists or existed, and shall continue to accrue until complete repayment is made to Company. This provision shall not be effective after a Change in
Control (as defined in Section 5.4(b) of the Plan). 

  

	8.	ENFORCEMENT OF RESTRICTIONS. 

  
 If a certificate or certificates representing Shares is issued, it shall bear the following legend: 
  
 “The Shares of stock represented by this Certificate
are subject to all of the terms of a Restricted Stock Agreement between Qwest Communications International Inc. and the registered owner of this Certificate (the “Agreement”) and to the terms of the Qwest Communications International Inc.
Equity Incentive Plan. Copies of the Agreement and the Plan are on file at the office of the Company. The Agreement, among other 

  

 3 

 
things, limits the right of the Owner to transfer the Shares represented hereby and provide in certain circumstances that all or a portion of the Shares must
be returned to the Company.” 
  
 The Company may, in its sole
discretion, require the Grantee to keep the certificate, if any, representing the Unvested Shares, duly endorsed, in the custody of the Company while the Unvested Shares are subject to the restrictions contained in Section 2. The Company may,
in its sole discretion, require that the certificate, if any, representing the Unvested Shares, duly endorsed, be held in the custody of a third party while the Unvested Shares are subject to the restrictions contained in Section 3. 

 
 The Company’s Insider Trading Policy 110 requires that all Insiders
must pre-clear with the Law Department all proposed transactions in Qwest Securities prior to transaction. 
  

	9.	TAX WITHHOLDING. 

  
 Notwithstanding any Plan provision to the contrary, upon the vesting of any portion of the Shares, the Company shall withhold from the Vested Shares a
number of Shares having a value equal to the minimum amount required to be withheld under applicable federal, state and local income and other tax laws (collectively, “Withholding Taxes”). In such case, the value of the Shares to be
withheld shall be based on the closing price of the Company’s common stock as reported on the New York Stock Exchange on the date the amount of the Withholding Taxes is determined (the “Tax Date”). 
  

	10.	BINDING EFFECT. 

  
 This Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto. 
  

	11.	WAIVER OF RIGHT TO JURY. 

  
 By signing this Agreement, Grantee voluntarily, knowingly and intelligently waives any right he or she may have to a jury trial for all claims relating to
this Agreement and any other claim relating to Grantee’s employment with Company. The Company also hereby voluntarily, knowingly, and intelligently waives any right it might otherwise have to a jury trial for all claims relating to this
Agreement and any other claim relating to Grantee’s employment with the Company. 
  

	12.	GOVERNING LAW. 

  
 This Agreement shall be construed and interpreted in accordance with the laws of the State of Delaware, without regard to the conflict of laws provisions
of any state. Any action to enforce this Agreement shall be brought in Colorado state or federal district court and the parties waive any objection to the jurisdiction or venue of such courts. 
  

	13.	HEADINGS. 

  
 Headings are for the convenience of the parties and are not deemed to be part of this Agreement. 
  

	14.	EXECUTION. 

  
 This Agreement is voidable by the Company if the Grantee does not execute the Agreement within thirty (30) days of execution by the Company.

  

 4 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the dates set forth opposite their
signatures to be effective as of the date and year first written above. 
  

							
	 	 	 	  	QWEST COMMUNICATIONS INTERNATIONAL INC.
				
	Date:	 	  

	  	By:	  	  

	 	 	 	  	 	  	EVP – Chief Human Resources Officer
			
	 	 	 	  	GRANTEE:
			
	Date:	 	  

	  	  

  

 5

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