Document:

exv10w16

 

Exhibit 10.16

SUBLEASE

     This Sublease (“Sublease”) is entered into as of December 5, 2007, by and between SoftBrands
Manufacturing, Inc., a Minnesota corporation (“Sublandlord”) and United HealthCare Services, Inc.,
a Minnesota corporation (“Subtenant”).

RECITALS

     A. Sublandlord is Tenant under an Amended and Restated Lease dated May 1, 1998, as amended
by amendments thereto dated December 9, 1998, and February 4, 2000 (“Prime Lease”), originally
between Sublandlord and Meridian Crossings II LLC (“Meridian”) and now between Sublandlord and
OTR, an Ohio general partnership (“Landlord”), Meridian having assigned the landlord’s interest
in the Prime Lease to Landlord. The Prime Lease covers approximately 61,804 rentable square feet
of space (“Premises”) on floors 6, 7 and 8 of the building located at Two Meridian Crossings,
Richfield, Minnesota (“Building”).

     B. Sublandlord desires to sublease the Premises to Subtenant and Subtenant desires to
sublease the Premises from Sublandlord on the terms and conditions set forth in this Sublease.

     NOW THEREFORE, for and in consideration of the Recitals, the mutual covenants contained herein
and other good and valuable consideration, the receipt and sufficiency of which are acknowledged,
the parties hereto agree as follows:

     1. SUBLEASE. Sublandlord, for and in consideration of the rents herein reserved and of the
covenants and agreements herein contained on the part of Subtenant to be performed, hereby
subleases to the Subtenant, and Subtenant accepts and subleases the Premises from Sublandlord.

     2. TERM AND POSSESSION; NO OPTION TO RENEW. The term of this Sublease (hereinafter “Term”)
shall commence on January 21, 2008 (“Commencement Date”) and expire on January 10, 2009
(“Expiration Date”).

     Sublandlord shall deliver possession of the Premises on January 21, 2008; provided, however,
Sublandlord, at its option, may retain possession of the part of the Premises located on floor 8 of
the Building, containing approximately 24,617 rentable square feet of space (“Floor 8 Premises”),
and deliver possession of the Floor 8 Premises to Subtenant on or before March 1, 2008.

     Subtenant acknowledges and agrees that Sublandlord is not granting Subtenant any renewal or
extension rights as part of the Sublease and Subtenant has no right to exercise or require
Sublandlord to exercise any renewal or extension option contained in the Prime Lease.

 

 

     3. SUBORDINATION TO PRIME LEASE; PERFORMANCE OF OBLIGATIONS THEREUNDER. This Sublease and the
rights granted to Subtenant hereunder are subject and subordinate to all of the terms, covenants,
provisions, conditions and agreements contained in the Prime Lease. Sublandlord warrants that a
true and complete copy of the Prime Lease, including all amendments, has been provided to
Subtenant. Subtenant warrants that it has read and fully familiarized itself with the Prime Lease.

     Subject to Sublandlord’s obligation to pay the base rent and additional rent to the Landlord
under the Prime Lease, and except as otherwise may be expressly provided in this Sublease,
Subtenant covenants and agrees to be bound by all of the terms, conditions, rules, covenants,
regulations and agreements contained in the Prime Lease and to perform all obligations of
Sublandlord as tenant under the Prime Lease that arise during the Term and to do no act and to
permit no act to be done which would violate any of the provisions of the Prime Lease. Any
obligations, work, repairs, and services to be performed, made and furnished by the Landlord under
the Prime Lease, will be performed and furnished by the Landlord and not by the Sublandlord, except
as otherwise may be expressly provided herein. Sublandlord shall in no event be liable to
Subtenant and Subtenant’s obligations hereunder shall not be limited or the performance thereof
shall not be excused because of any failure or delay on the Landlord’s part in performing any such
obligations, furnishing any such work or services or in making any repairs. Notwithstanding the
foregoing, during any period that rent abates under the Prime Lease, the rent payable by Subtenant
hereunder shall likewise abate. If the Landlord shall default in the performance of any of its
obligations under the Prime Lease, and if Subtenant shall give Sublandlord written notice of such
default, Sublandlord agrees to use commercially reasonable efforts to cause the Landlord to
promptly correct and remedy such default.

     4. CONDITION OF AND ACCEPTANCE OF PREMISES. Sublandlord shall deliver the Premises in “broom
clean” condition. Subtenant acknowledges that it has had an opportunity to fully investigate the
condition of the Premises and make all inquiries as it deems appropriate and, except as provided in
the immediately preceding sentence, is subleasing the Premises in their “as is, where is”
condition, based on its investigations and inquiry; and is not relying on any representation or
warranty of any kind, express or implied, by or on behalf of Sublandlord in connection with the
execution of this Sublease. Without limiting the generality of the foregoing, Subtenant
acknowledges that no representations as to the condition of the Premises, or promises to alter,
remodel, or improve the Premises, have been made by or on behalf of Sublandlord.

     5. RENT; OVERDUE AMOUNTS. Subtenant agrees to pay monthly gross rent (“Monthly Rent”) to
Sublandlord as follows:

     (i) For the period beginning on the Commencement Date to and including January 31,
2008, no Monthly Rent shall be payable.

     (ii) If the Floor 8 Premises are not delivered to Subtenant on or before February 1,
2008, for the period beginning on February 1, 2008, to and including the day immediately
prior to the day on which possession of the Floor 8 Premises is delivered to Subtenant,
Monthly Rent shall be $68,176.00.

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     (iii) Beginning on the later of February 1, 2008, and the day on which possession of
the Floor 8 Premises is delivered to Subtenant, Monthly Rent shall be $113,307.00.

Monthly Rent shall be payable in advance on or before the first day of each month during the Term,
except that Monthly Rent for February 2008 shall be paid on the Commencement Date. Monthly Rent
shall be payable without deduction, setoff or demand. Monthly Rent for any partial month shall be
prorated based on the number of days this Sublease is in effect during such month. Any installment
of Monthly Rent which is not paid within ten (10) days of when due shall include a service charge
for late payment in the amount of five percent (5%) of the amount due. In addition, Subtenant will
reimburse Sublandlord for any fees paid by Sublandlord to Landlord as a result of Subtenant’s
failure to timely pay Monthly Rent.

     Notwithstanding the foregoing provisions of this Paragraph 5, if Sublandlord fails to deliver
possession of the Floor 8 Premises on or before March 1, 2008, then for each fifteen Working Days
(as defined herein) between March 1, 2008, and the date that possession of the Floor 8 Premises is
delivered, Monthly Rent shall remain at $68,176.00 for one (1) month thereafter. By way of
illustration only, if possession of the Floor 8 Premises is delivered to Subtenant on April 1,
2008, Monthly Rent for the month of April, 2008, shall be $68,176.00 and Monthly Rent shall
increase to $113,307.00 on May 1, 2008; but if possession of the part of the Floor 8 Premises is
delivered to Subtenant on March 15, 2008, Monthly Rent shall increase to $113,307.00 as of such
date. As used herein “Working Days” means days other than Saturdays, Sundays and days that are
legal holidays in the State of Minnesota.

     6. USE OF PREMISES Subtenant shall use the Premises only for general office purposes and
related purposes. Subtenant shall not use the Premises in any manner that would violate the terms
and provisions of the Prime Lease. Subtenant shall comply with all laws, ordinances and
regulations affecting the Premises and promulgated by any duly constituted governmental authorities
relative to the cleanliness, safety, use and occupancy of the Premises.

     7. SUBTENANT’S INSURANCE AND WAIVER. Subtenant shall procure and maintain, at its own
expense, such liability and casualty insurance as Sublandlord is required to carry under the Prime
Lease. Subtenant’s policy of liability insurance shall name Sublandlord, as well as Landlord and
the other persons or entities specified in Section 6.02 of the Prime Lease, as additional insureds
in the manner required therein. Sublandlord and Subtenant each hereby waive and release all
claims, liabilities and causes of action that it may have against the other or against Landlord and
their respective agents, servants and employees for loss or damage to, or destruction of any
personal property and business of Subtenant located on the Premises, the Building and the property
that includes the Building, resulting from fire, explosion or the other perils included in standard
extended risk coverage insurance, whether caused by the negligence of any of said persons or
otherwise, and each covenants that its insurers shall hold no right of subrogation against such
other party.

     8. CASUALTY OR CONDEMNATION. In the event of a fire or other casualty affecting the Building
or the Premises, or of a condemnation of all or a part of the Building or

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Premises, this Sublease shall terminate upon any termination of the Prime Lease by Sublandlord or
Landlord. Provided no Event of Default exists hereunder and no condition exists which with the
giving of notice, lapse of time or both would constitute an Event of Default, Sublandlord will not
exercise any termination right it may have without the consent of Subtenant. If Sublandlord is
entitled under the Prime Lease to rent abatement as a result of a casualty or condemnation,
Subtenant shall be entitled to an equitable share of such abatement. Subtenant, at its sole
expense, shall make any repairs that Sublandlord is obligated under the Prime Lease to make in the
event of any such casualty or condemnation.

     9. ALTERATIONS. Subtenant shall make no improvements, alterations additions or installations
in or to the Premises without Sublandlord’s prior written consent, which consent will not be
unreasonably withheld, conditioned or delayed, except that Sublandlord will not withhold its
consent if Landlord’s consent is required under the Prime Lease and Landlord grants it. In no
event shall Subtenant have the right to make any structural alterations or improvements and
Sublandlord shall be deemed to be acting reasonably in withholding consent if Landlord’s consent is
required under the Prime Lease and Landlord does not grant it. In making any alterations or
improvements, Subtenant will comply with the provisions of Article VIII of the Prime Lease. If
such improvements, alterations additions or installations are permitted, Subtenant shall be solely
responsible for the cost thereof and neither Sublandlord nor Landlord shall have any financial
obligation whatsoever.

     10. SURRENDER; HOLDING OVER. Upon the expiration or termination of the Sublease or of
Subtenant’s right to possession of the Premises, Subtenant will at once surrender the Premises to
Sublandlord in accordance with Section 13.01 of the Prime Lease. Subtenant shall have no right to
occupy the Premises or any portion thereof after the expiration or termination of this Sublease or
of Subtenant’s right to possession in consequence of an Event of Default hereunder. If Subtenant
or any party claiming under Subtenant holds over, Sublandlord may exercise any and all remedies
available at law or in equity to recover possession of the Premises and to recover damages,
including without limitation, all damages payable by Sublandlord to Landlord by reason of such
holdover.

     11. ASSIGNMENT AND SUBLETTING. Subtenant shall not assign this Sublease, or sublet Premises,
or any part thereof, without the written consent of the Sublandlord, such consent not to be
unreasonably withheld. Sublandlord agrees that it will not withhold its consent if Landlord grants
its consent to a proposed assignment or subletting; provided, however, that if Landlord does not
consent to a proposed assignment or subletting, Sublandlord shall have no obligation to do so. No
assignment of this Sublease or subletting of the Premises shall relieve Subtenant from primary
liability for the payment and performance of its obligations hereunder.

     12. ENCUMBERING TITLE. Subtenant shall not do any act which shall in any way encumber the
title of Landlord in and to the Building or the property on which it is located, nor shall the
interest or estate of Landlord or Sublandlord be in any way subject to any claim by way of lien or
encumbrance, whether by operation of law by virtue of any express or implied contract by Subtenant,
or by reason of any other act or omission of Subtenant.

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     13. INDEMNITIES. Subtenant agrees to indemnify Sublandlord and hold Sublandlord harmless from
all losses, damages, liabilities and expenses that Sublandlord may incur, or for which Sublandlord
may be liable to Landlord, as a result of a breach by Subtenant of its obligations hereunder or
arising from the acts or omissions of Subtenant that are the subject matter of any indemnification
of Sublandlord to Landlord under the Prime Lease. Sublandlord agrees to indemnify Subtenant and
hold Subtenant harmless from all losses, damages, liabilities and expenses that Subtenant may incur
as a result of a breach by Sublandlord of its obligations hereunder or, to the extent not the
responsibility of Subtenant hereunder, under the Prime Lease.

     14. SUBLANDLORD’S RIGHT OF ENTRY. Sublandlord reserves the right, on reasonable prior notice,
to inspect the Premises, or to exhibit the Premises to persons having a legitimate interest at any
time during the Sublease term.

     15. DEFAULTS. Any one or more of the following events shall be an “Events of Default” by
Tenant:

     A. Subtenant shall be adjudged an involuntary bankrupt, or a decree or order approving,
as properly filed, a petition or answer filed against Subtenant asking reorganization of
Subtenant under the Federal bankruptcy laws as now or hereafter amended, or under the laws
of any State, shall be entered, and any such decree or judgment or order shall not have been
vacated or stayed or set aside within sixty (60) days from the date of the entry or granting
thereof; or

     B. Subtenant shall institute any proceedings for relief of Subtenant under any
bankruptcy or insolvency laws or any laws relating to the relief of debtors, readjustment of
indebtedness, reorganization, arrangements, composition or extension; or shall make any
assignment for the benefit of creditors or shall apply for or consent to the appointment of
a receiver for Subtenant or any of the property of Subtenant; or shall admit in writing its
inability to pay its debts as they become due; or the Premises are levied on by any revenue
officer or similar officer; or a decree or order appointing a receiver of the property of
Subtenant shall be made and such decree or order shall not have been vacated, stayed or set
aside within sixty (60) days from the date of entry of granting thereof; or

     C. Subtenant shall make any payment of Monthly Rent or other sum required to be made by
Subtenant hereunder within ten (10) days of when due; or

     D. Subtenant shall default in securing insurance or providing evidence of insurance
required under this Sublease and either such default shall continue for ten (10) days after
notice thereof in writing to Subtenant; or

     E. Subtenant shall, by its act or omission, cause a default under the Prime Lease and
such default is not cured within the time, if any, permitted for such cure by the Prime
Lease; or

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     F. Subtenant shall default in any of the other covenants and agreements herein, and
such default shall continue for thirty (30) days after notice thereof in writing to
Subtenant.

     16. REMEDIES. Upon the occurrence of any one or more Events of Default, Sublandlord may
exercise any remedy against Subtenant which Landlord may exercise for default by Sublandlord in the
Prime Lease.

     17. LANDLORD’S CONSENT. This Sublease and the obligations of the parties hereunder are
expressly conditioned upon Sublandlord’s obtaining prior written consent hereto by Landlord. If
such consent is not obtained on or before December 7, 2007, either Sublandlord or Subtenant shall
thereafter have the right to terminate this Sublease at any time before Landlord’s consent is
actually obtained. Subtenant shall promptly deliver to Sublandlord any information reasonably
requested by Landlord in connection with Landlord’s approval of this Sublease. Sublandlord and
Subtenant hereby agree, for the benefit of Landlord, that this Sublease and Landlord’s consent
hereto shall not (a) create privity of contract between Landlord and Subtenant; (b) be deemed to
have amended the Prime Lease in any regard (unless Landlord shall have expressly agreed in writing
to such amendment); or (c) be construed as a waiver of Landlord’s right to consent to any
assignment of the Prime Lease by Sublandlord or any further subletting of the Premises.

     18. QUIET ENJOYMENT. Sublandlord warrants that it the owner of the tenant’s interest in the
Prime Lease and covenants and agrees that Subtenant, upon paying the rent herein provided for and
observing and keeping the covenants, agreements and conditions of this Sublease on its part to be
kept, shall lawfully and quietly hold, occupy and enjoy the Premises during the Term of this
Sublease, without hindrance or molestation by Sublandlord or anyone acting by, through or under
Sublandlord.

     19. PARKING. Until the day on which possession of the Floor 8 Premises is delivered to
Subtenant, Subtenant shall have the exclusive right to use the three (3) reserved parking stalls
leased to Sublandlord pursuant to Section 24.1 of the Prime Lease, stalls 11, 12 and 32 (“Reserved
Spaces”). Subtenant’s use of the Reserved Spaces shall be on the terms and conditions set forth in
the Reserved Space Parking Garage Lease dated February 17, 1999, between Meridian and Sublandlord,
except that Subtenant will pay the $285.00 monthly fee payable to Sublandlord for the Reserved
Spaces. Sublandlord warrants that a true and complete copy of the Reserved Space Parking Garage
Lease has been provided to Subtenant. Subtenant warrants that it has read and fully familiarized
itself with the Reserved Space Parking Garage Lease.

     20. CONVEYANCE OF PERSONAL PROPERTY. On the Commencement Date, Sublandlord shall be deemed to
have conveyed to Tenant the items of personal property located in the Premises that are identified
on Exhibit A attached hereto and incorporated herein (“Personal Property”); provided, however
Sublandlord shall have the exclusive use of the Personal Property located in the Floor 8 Premises
until the day on which possession of the Floor 8 Premises is delivered to Subtenant. Sublandlord
warrants that it is the Owner of the Personal Property free and clear of any liens or encumbrances
and has the right and authority to convey the

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same to Subtenant. Sublandlord makes no other representations or warranties, express or implied,
with respect to the Personal Property, including, without limitation, any representation or
warranty concerning its condition or fitness for any particular use, and Subtenant is accepting the
Personal Property in its “as is, where is” condition.

     21. BROKERAGE. Sublandlord agrees to pay to Jones Lang LaSalle (“Subtenant’s Broker”) a
brokerage fee in the amount of $61,804.00 in connection with the execution of this Sublease. Such
fee shall be payable to Subtenant’s Broker 50% upon execution of the sublease and the remaining 50%
upon occupancy of the space. Sublandlord also agrees to pay any brokerage fee due NAI Welsh
(“Sublandlord’s Broker”) in connection with the execution of this Sublease pursuant to a separate
agreement between them. Sublandlord and Subtenant each hereby agrees to indemnify, defend and hold
the other harmless from and against any cost or liability incurred by the indemnified party as a
result of any brokerage claim advanced by any other person or entity based upon the act or omission
of the indemnifying party.

     22. APPLICABILITY OF PRIME LEASE PROVISIONS. As the same may be modified in this Sublease,
the following provisions of the Prime Lease are hereby made a part of this Sublease, and for
purposes of this Sublease references in such provisions of the Prime Lease to the “Landlord”
shall be deemed references to Sublandlord, references in the Prime Lease to “Tenant” shall be
deemed references to “Subtenant,” and references in the Prime Lease to “Lease “ shall be deemed
references to this Sublease:

	 	a.	 	Section 3.02, No Accord and Satisfaction.
	 
	 	b.	 	Section 9.01, Tenant’s Duty of Repair.
	 
	 	c.	 	The following provisions of Section 17.01, Further Terms:

	 	(i)	 	Section 17.01 C;
	 
	 	(ii)	 	Section 17.01 E;
	 
	 	(iii)	 	Section 17.01 F;
	 
	 	(iv)	 	Section 17.01 H;
	 
	 	(v)	 	Section 17.01 I;
	 
	 	(vi)	 	Section 17.01 J;
	 
	 	(vii)	 	Section 17.01 O.

     23. NOTICES. All notices, demands, consents and approvals which may or are required to be
given by either party to the other hereunder shall be in writing and shall be deemed to have been
fully given when delivered personally by a nationally recognized overnight

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courier service or United States Mail, certified or registered, return receipt requested, postage
prepaid, addressed as follows:

	 	 	 	 	 
	 

	 	If to Sublandlord:	 	 
	 
	 	 	 	 
	 

	 	 	 	SoftBrands Manufacturing, Inc.
	 

	 	 	 	Two Meridian Crossings
	 

	 	 	 	Suite 800
	 

	 	 	 	Minneapolis, MN 55423
	 

	 	 	 	Attention: Director, Offices and Facilities
	 
	 	 	 	 
	 

	 	If to Subtenant:
	 	United HealthCare Services, Inc.
	 

	 	 	 	9900 Bren Road East
	 

	 	 	 	MN 008-E305
	 

	 	 	 	Minnetonka, MN 55343
	 

	 	 	 	Attention: Lease Administration

Notices sent by courier shall be deemed to have been given to the party to whom it is sent on the
first Working Day after the date the same is delivered to a nationally recognized overnight courier
for next day delivery to such party at its then current address for the giving of notices. Notices
given by mail shall be deemed to have been given to the party to whom it is addressed on the first
Working Day that is at least three (3) days after the date the same is deposited in the United
States mail, postage prepaid. Either party hereto may change such party’s address for the service
of notice hereunder by written notice of said change to the other party hereto, in the manner above
specified ten (10) days prior to the effective date of said change.

     24. MISCELLANEOUS PROVISIONS.

     Within thirty (30) days after receipt of a request from Sublandlord or Landlord, Subtenant
shall execute and deliver to the requesting party, or to any third party designated by the
requesting party, a certificate, in recordable form, certifying that this Sublease is in full force
and effect, the amount of the monthly rent payable and the date through which rent has been paid,
that there have been no amendments hereto except as identified therein, that Sublandlord is not in
default under the Lease except as may be set forth therein, and certifying to such other matters as
Landlord or Sublandlord may reasonably request. The requesting party and any third party to whom
such certificate is addressed shall have a right to rely on it.

     This Sublease may be executed in two or more counterparts, each of which shall be an original
and all of which shall constitute but one and the same instrument. Delivery of an executed
counterpart of this Sublease by facsimile or email shall be deemed delivery of the original hereof.

     This Sublease shall be construed in accordance with the laws of the State in which the
Premises are located without giving effect to its choice of laws provisions.

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     Capitalized terms not otherwise defined herein shall have the meanings given them in the Prime
Lease.

     If it shall be necessary for either party hereto to employ an attorney to enforce any of the
terms, covenants, or conditions of this Sublease, the party in default or the party against whom
any final judgment is rendered agrees to pay all reasonable costs and attorney fees incurred by the
other party hereto in connection with the enforcement of the terms and conditions and/or covenants
of this Sublease.

     This Sublease represents the entire agreement between the parties with respect to the Premises
and there are no implied or expressed terms or conditions that are not contained herein. This
Sublease may be amended only in a writing signed by both parties.

     Time is of the essence of this Sublease.

     This Sublease does not create the relation of principal and agent, or of partnership, joint
venture, or of any association or relationship between Sublandlord and Subtenant other than that of
sublandlord and subtenant.

[Signature Page Follows]

[Remainder of page intentionally left blank.]

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Signature Page to Sublease

     IN WITNESS WHEREOF, the parties hereto have executed this Sublease as of the day and year
first written above.

	 	 	 	 	 	 	 
	 	 	SUBLANDLORD:  
	 
	 	 	 	 	 	 
	 	 	SOFTBRANDS MANUFACTURING, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SUBTENANT:
	 
	 	 	 	 	 	 
	 	 	UNITED HEALTHCARE SERVICES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

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LANDLORD CONSENT TO SUBLEASE

The undersigned, OTR, an Ohio general partnership, the Landlord under the Prime Lease described in
the attached and foregoing Sublease, hereby consents to the sublease of the Premises pursuant to
the Sublease, provided that Sublandlord is not released from any existing or future duty,
obligation or liability to Landlord pursuant to the Prime Lease, nor will this consent change,
modify or amend the Lease in any manner. Subtenant may not further sublease all or any portion of
the subleased premises or assign the Sublease, without obtaining Landlord’s consent in accordance
with the Lease.

	 	 	 	 	 	 	 
	 	 	LANDLORD:  
	 
	 	 	 	 	 	 
	 	 	OTR, an Ohio general partnership
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:	 	 	 	 
	 

	 	 	 	 	 	 

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Exhibit A

Personal Property List

Office furniture including:

Approx. 190 Cubes

Approx. 80 Private Offices

Conference Rooms

Reception or other common areas/rooms

12exv10w17

 

Exhibit 10.17

Execution Version

SUBLEASE

          AGREEMENT OF SUBLEASE, dated as of the 5th day of December, 2007, by and between MERCER (US)
INC., f/k/a William M. Mercer, Incorporated and Mercer Human Resource Consulting, Inc., a Delaware
corporation with a usual place of business at 1166 Avenue of the Americas, New York, New York 10036
(“Sublandlord”) and SOFTBRANDS MANUFACTURING, INC., a Minnesota corporation with a usual
place of business at Two Meridian Crossings, Suite 800, Minneapolis, MN 55423
(“Subtenant”).

W I T N E S S E T H:

          WHEREAS, by a lease dated June 12, 2000, by and between EOP-LaSalle Plaza, LLC, as landlord
(hereinafter the (“Overlandlord”) and Sublandlord (said lease, as amended as of October 10,
2000 and August 9, 2002, and supplemented by a Storage Lease dated March 8, 2001, hereinafter
referred to as the “Overlease”) certain premises situated at 800 LaSalle Avenue,
Minneapolis, Minnesota (“Building”), comprised of approximately 21,068 square feet on
21st floor and approximately 7,182 square feet on 22nd floor, which premises
are more particularly described in the Overlease (hereinafter the “Leased Premises”) were
leased to Sublandlord; and

          WHEREAS, Sublandlord desires to sublease the Leased Premises to Subtenant and Subtenant
desires to sublease the Leased Premises from Sublandlord upon the terms and conditions hereinafter
set forth.

          NOW, THEREFORE, in consideration of the mutual covenants herein, Sublandlord and Subtenant do
hereby agree as follows:

          1. Leased Premises and Term; Prior Access. Sublandlord hereby leases to Subtenant, and
Subtenant hereby hires the Leased Premises from Sublandlord for a term (hereinafter the
“Term”) commencing on January 21, 2008 (hereinafter the “Commencement Date”) and
ending December 30, 2010 (hereinafter the “Expiration Date”) or on such earlier date upon
which said term may expire or be cancelled or terminated

 

 

pursuant to any of the provisions of this Sublease upon and subject to the covenants,
agreements, terms and conditions herein contained. Sublandlord warrants that neither Sublandlord
nor, to its knowledge, Overlandlord is in default of its obligations under the Overlease(including
in “defaults” events which with the giving of notice, passage of time or both may ripen into
defaults). Notwithstanding the foregoing, during any period that rent abates under the Overlease,
the rent payable by Subtenant hereunder shall likewise abate.

          From the date Overlandlord consents to this sublease to the Commencement Date, Sublandlord
shall permit Subtenant to enter the Leased Premises at all reasonable times for the purpose of
installing its equipment, furniture and furnishings and otherwise preparing the Leased Premises for
occupancy by Subtenant.

          2. Rent. Subtenant shall pay to Sublandlord rent (“Rent”) during the Term as follows:

          (i) For the period beginning on the Commencement Date through February 20, 2008, no Rent shall
be payable.

          (ii) For the period beginning on March 1, 2008, through January 31, 2009, the Rent shall be
$388,437.50 or $35,312.50 per month.

          (iii) For the period beginning on February 1, 2009, through January 31, 2010, the Rent shall
be $437,875 or $36,489.58 per month.

          (iv) For the period beginning on February 1, 2010, through December 30, 2010, the Rent shall
be $414,333 or $37,666.67 per month.

          The Rent payable by Subtenant is a gross rent and, except as maybe otherwise expressly
provided in this Sublease, Subtenant is not responsible for any costs or expenses payable by
Sublandlord under the Overlease, including, without limitation, any part of Tenant’s Pro Rata Share
of Basic Costs (as those terms are defined in the Overlease). Rent shall be paid in equal monthly
installments on the first of the month without the necessity for Landlord to send an invoice.
Until further notice, rent checks shall be drawn to the order of

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Sublandlord and mailed to Suite 1500, 462 S. 4th Street, Louisville, KY 40202.

          3. Security. Subtenant has deposited with Sublandlord the sum of $36,312.50 as a
security deposit (“Security Deposit”). The Security Deposit shall not bear interest. The Security
Deposit shall be held by Sublandlord as security for the faithful performance by Subtenant of all
the terms, covenants and conditions of this Lease to be kept and performed by Subtenant. The
Security Deposit may be applied by Sublandlord to cure any failure by Subtenant to make any payment
due or any other default by Subtenant hereunder and, in such event, Subtenant shall immediately,
upon demand by Sublandlord, deposit with Sublandlord the amount necessary to restore the Security
Deposit to its original amount. If Subtenant shall fully and faithfully perform every term,
covenant and condition to be performed by it hereunder, the Security Deposit (or any balance
thereof) shall be returned to Subtenant at the expiration of the term.

          4. Use. Subtenant shall use and occupy the Leased Premises for the Permitted Use (as
defined in the Overlease).

          5. Provisions of Overlease. Sublandlord warrants that it has delivered a true and
complete copy of the Overlease to Subtenant. Subtenant acknowledges that it is fully familiar with
the terms of the Overlease. Subject to payment by Sublandlord of Base Rental and Additional Base
Rental under the Overlease, Subtenant hereby assumes all of the responsibilities and obligations on
the part of the Sublandlord to be performed under the Overlease with respect to the entire Leased
Premises, except to the extent otherwise expressly provided in this Sublease and except for
responsibilities and obligations that by their nature or purpose are inapplicable or inappropriate
to the subleasing of the Leased Premises pursuant to this Sublease. All of the terms, provisions,
covenants and conditions contained in the Overlease that are assumed by Subtenant hereunder, and
such rights and obligations as are contained in the Overlease with respect thereto, are hereby
imposed upon the respective parties hereto, the Sublandlord being substituted for the Overlandlord
in the Overlease, with the Sublandlord having all of the rights, obligations, remedies and powers
of the Overlandlord as set forth in the Overlease, and the Subtenant being substituted for the
Tenant in the Overlease, with the

3

 

Subtenant having all the rights, obligations remedies and powers of the Tenant as set forth in
the Overlease. It is expressly understood and agreed, however, that Sublandlord shall not be bound
by any warranties and representations made by the Overlandlord in the Overlease, nor, subject to
paragraphs 6 and 8 hereof, shall Sublandlord be obligated to perform any of the terms, covenants
and agreements in the Overlease required to be performed by the Overlandlord; and Subtenant agrees
to look solely to the Overlandlord for the performance of the same. Notwithstanding the foregoing,
during any period that rent abates under the Overlease, the rent payable by Subtenant hereunder
shall likewise abate. Subtenant further covenants and agrees not to violate any of the terms and
provisions of the Overlease applicable to the Leased Premises. Subtenant shall be bound by all of
the restrictions and limitations placed upon the Sublandlord as Tenant under the Overlease, as if
the Subtenant were the tenant thereunder, except as otherwise specifically provided herein.

          The delineation of particular obligations of Subtenant contained herein shall in no event be
construed to limit any of the obligations of Subtenant pursuant to the provisions of this paragraph
5. In the event the Overlease is terminated pursuant to its terms for any reason other than the
default of the Sublandlord as the Tenant thereunder, this Sublease shall automatically cease and
terminate as of the date upon which the Overlease is so terminated.

          The following paragraphs of the Overlease do not apply herein except as necessary to interpret
the paragraphs of the Overlease that do apply: Articles I-IV, Article VI, Article XXIV, Sections E,
F and O of Article XXXVI, Article, Exhibits A-2 through A-6, C, D, E, First Amendment; and
Subtenant is not assuming the obligations of Sublandlord thereunder. Under Article XVI of the
Overlease, the insurance which requires the naming of Overlandlord shall name Sublandlord as well.

          6. Sublandlord Not Liable for Acts of Overlandlord. Notwithstanding anything in this
Sublease contained to the contrary, Sublandlord shall not be liable for any of the obligations,
duties, responsibilities or liabilities of the Overlandlord under the Overlease or for the failure
of any delay by the Overlandlord to perform or discharge the same. Sublandlord shall not be
obligated to take any action by reason of any matter relating to the operation or maintenance,
repair,

4

 

replacement or restoration of the Leased Premises or of any facilities or services thereof,
except that Sublandlord, at Subtenant’s exclusive cost, will enforce the Overlease against
Overlandlord at Subtenant’s request. Alternatively, Subtenant may enforce the Overlease in
Sublandlord’s name at Subtenant’s exclusive cost by counsel reasonably acceptable to Sublandlord.

          7. Condition of Premises. Except as set forth herein, neither Sublandlord nor
Sublandlord’s agents have made any representations or promises with respect to the Leased Premises
or Leased Premises or the equipment and improvements therein situated or the physical condition
thereof. Subtenant accepts the Leased Premises in “as is” condition on the date hereof subject to
their being delivered to Subtenant broom clean. Sublandlord shall be under no obligation, except as
otherwise provided herein, to make and/or pay for any alterations, additions, installations,
substitutions, improvements or decorations to the Leased Premises.

          8. Sublandlord’s Services. Subtenant shall receive from Overlandlord pursuant to the
provisions of the Overlease services to or for the benefit of the Leased Premises which are to be
provided under the Overlease without additional charge or rental and Sublandlord shall cooperate
with Subtenant in obtaining such services in accordance with paragraph 6 hereof. In accordance with
paragraph 6 hereof and subject to the performance by Sublandlord of its obligations thereunder,
Subtenant agrees to look solely to the Overlandlord for the rendition of such services and
Sublandlord shall not be liable to Subtenant for any loss, damage or expense resulting from any
failure of the Overlandlord to furnish such services unless due to the act or omission on the part
of the Sublandlord, its employees, agents or invitees.

          9. Subtenant to Perform Certain Obligations. Notwithstanding anything contained in the
Overlease or in this Sublease, Subtenant agrees that it shall be responsible to perform all repairs
and maintenance to the Leased Premises, as required of Sublandlord under the Overlease, except any
repairs or maintenance that may be required as a result of the act or omission of Sublandlord, its
employees, agents or invitees.

          10. Holding Over. Except to the extent Sublandlord is relieved of liability by
Overlandlord, if Subtenant shall

5

 

retain possession of the Subleased Premises or any part thereof after the termination of this
Sublease, Subtenant shall pay all damages sustained by Sublandlord under the Overlease, which are
expressly agreed to include the claims of the Overlandlord against Sublandlord, to the extent
arising out of to Subtenant’s failure to surrender the entire Leased Premises. The provisions of
this paragraph shall not operate as a waiver by Sublandlord of any right of re-entry hereinabove
provided.

          11. Performance of Overlease By Sublandlord. Unless the breach or default is caused by
the acts or omissions of Subtenant, Sublandlord covenants and agrees that it will not breach any of
the terms, covenants, or conditions of the Overlease and will not cause or permit any default under
the Overlease, and Sublandlord shall take all action necessary for the continuance in full force
and effect of the Overlease. Without limiting the generality of the immediately preceding sentence,
Sublandlord agrees to perform when all of its responsibilities and obligations under the Overlease
that are not assumed by Subtenant under this Sublease, including, without limitation, the payment
when due of the Base Rent and Tenant’s Pro Rate Share of Basic Costs (as those terms are defined in
the Overlease). Sublandlord further covenants and agrees not to modify, amend or waive any of the
terms, covenants or conditions of the Overlease which would materially affect any of Subtenant’s
rights, benefits or obligations under the Overlease.

          12. Notices. Any notice to be given hereunder by either party shall be in writing and
shall be deemed to have been fully given when delivered personally or when sent by a nationally
recognized overnight courier service or United States Mail, certified or registered, return receipt
requested, postage prepaid, addressed as follows:

	 	 	 
	Sublandlord:

	 	c/o Marsh & McLennan Real Estate Advisors

121 River Street

Hoboken, New Jersey 07030

6

 

	 	 	 
	Subtenant:

	 	Prior to Subtenant taking occupancy of the Subleased Premises for the conduct of
its business at:
	 
	 	 
	 

	 	SoftBrands Manufacturing, Inc. 

Two Meridian Crossings, Suite 800

Minneapolis, MN 55423
	 
	 	 
	 

	 	Attention: Director, Offices and Facilities
	 
	 	 
	 

	 	and thereafter at the Subleased Premises.

Notices sent by courier shall be deemed to have been given to the party to whom it is sent on the
first business day (a Monday through Friday other than a day that is a holiday in the State of
Minnesota) after the date the same is delivered to a nationally recognized overnight courier for
next day delivery to such party at its then current address for the giving of notices. Notices
given by mail shall be deemed to have been given to the party to whom it is addressed on the first
business day that is at least three (3) days after the date the same is deposited in the United
States mail, postage prepaid. Either party hereto may change such party’s address for the service
of notice hereunder by written notice of said change to the other party hereto, in the manner above
specified ten (10) days prior to the effective date of said change.

     13. Communications from Overlandlord. Sublandlord shall promptly deliver to Subtenant
copies of all notices, requests or demands which relate to the Leased Premises and any notice of
default received by Sublandlord in its capacity as Tenant under the Overlease within three (3) days
after receipt thereof from Overlandlord. Sublandlord will ask Overlandlord to provide copies of
all such notices, requests or demands directly to Subtenant simultaneously with the delivery
thereof to Sublandlord.

     14. Indemnification. Subtenant agrees to defend with counsel reasonably approved by
Sublandlord, save harmless and indemnify Sublandlord from all claims of liability for injury, loss,
accident or damage to any person or property and from any claims, actions, proceedings and expenses
and costs in connection therewith (including, without limitation, reasonable

7

 

counsel fees) arising from the omission, fault, wrongful act, negligence or other misconduct
of Subtenant and persons for whose conduct Subtenant is legally responsible occurring on or about
the Building and the Leased Premises, or either. In addition, Subtenant agrees to defend with
counsel reasonably approved by Sublandlord, save harmless, and indemnify Sublandlord from any
claims of liability for injury, loss, accident or damage to any person or property, and from any
claims, actions, proceedings and expenses and costs in connection therewith (including without
limitation, reasonable counsel fees), arising from any use made or thing done or occurring on the
Leased Premises not due to the omission, fault, wrongful act, negligence or other misconduct of
Sublandlord or any person for whose conduct Sublandlord is legally responsible (other than
Subtenant).

          Subtenant further indemnifies and agrees to hold harmless Sublandlord against any and all
claims, loss and damage, including without limitation reasonable attorney’s fees and disbursements,
which may at any time be asserted by Overlandlord against Sublandlord for failure of Sublandlord to
perform any of the covenants, agreements, terms, provisions or conditions contained in the
Overlease, which, by reason of the provisions of this Sublease, Subtenant is obligated to perform
and which Subtenant has failed to perform.

     Sublandlord agrees to defend with counsel reasonably approved by Subtenant, save harmless and
indemnify Subtenant from all claims of liability for injury, loss, accident or damage to any person
or property and from any claims, actions, proceedings and expenses and costs in connection
therewith (including, without limitation, reasonable counsel fees) arising from the omission,
fault, wrongful act, negligence or other misconduct of Sublandlord and persons for whose conduct
Sublandlord is legally responsible occurring on or about the Building and the Leased Premises, or
either after the date hereof. In addition, Sublandlord agrees to defend with counsel reasonably
approved by Subtenant, save harmless, and indemnify Subtenant from any claims of liability for
injury, loss, accident or damage to any person or property, and from any claims, actions,
proceedings and expenses and costs in connection therewith (including without limitation,
reasonable counsel fees), arising from any use made or thing done or occurring on the Leased
Premises after the date hereof due to the omission, fault, wrongful act, negligence or other

8

 

misconduct of Sublandlord or any person for whose conduct Sublandlord is legally responsible (other
than Subtenant).

          Sublandlord further agrees to defend with counsel reasonably approved by Subtenant, save
harmless and indemnify Subtenant from any claim, expense, loss and damage, including without
limitation reasonable attorneys’ fees and disbursements incurred by Subtenant by reason of
Sublandlord’s breach or alleged breach of the Overlease (other than breaches of covenants,
agreements, terms, provisions or conditions which, by reason of the provisions of this Sublease,
Subtenant is obligated to perform).

          15. Brokerage. Subtenant represents and warrants that it dealt with no broker other
than NAI Welsh Commercial Real Estate Services and Cushman & Wakefield of Minnesota in this
transaction and will indemnify, defend with counsel reasonably acceptable to Sublandlord and save
Sublandlord harmless from any loss incurred because this representation and warranty is untrue.
Sublandlord also represents and warrants that it dealt with no broker other than NAI Welsh
Commercial Real Estate Services and Cushman & Wakefield of Minnesota in this transaction and will
indemnify, defend with counsel reasonably acceptable to Subtenant and save Subtenant harmless from
any loss incurred because this representation and warranty is untrue. Sublandlord will pay said
brokers under a separate agreement.

          16. Quiet Enjoyment. Sublandlord covenants that upon Subtenant’s paying the Rent and
observing, paying and performing all terms, covenants and conditions upon Subtenant’s part to be
observed, paid and performed hereunder, Subtenant may peacefully and quietly enjoy the Leased
Premises without molestation from Sublandlord or anyone claiming under Sublandlord.

          17. Furniture, Furnishings and Equipment. The Leased Premises will be broom clean on
the Commencement Date but the furniture, furnishings and equipment listed on Exhibit A
(“FF&E”) hereto will be left for Subtenant’s use during the term. On the Expiration Date
and provided Subtenant is not in default hereunder title to the FF&E will pass to Subtenant.
Sublandlord warrants that it is and on the Expiration Date will be the owner of the FF&E free and
clear of all liens and encumbrances and that it has the right and authority to convey the FF&E to
Subtenant. Until the Expiration Date, Subtenant

9

 

will maintain the FF&E in good order and condition, reasonable wear and tear excepted, and
will insure it against loss or other casualty. Subtenant will accept the FF&E in its condition as
at the date hereof. If there is a casualty or loss to the FF&E before the Commencement Date,
Sublandlord’s obligation will be limited to substituting used furniture, furnishings and equipment
of like function and approximately equal value to that which was lost or damaged but which need not
match the lost items.

          19. Approval of Overlandlord. This Sublease is subject to the written approval of the
Overlandlord. If that approval is not given within 30 days of the date hereof, either party may
cancel this Sublease on notice to the other.

          20. Miscellaneous. This Sublease may be executed in two or more counterparts, each of
which shall be an original and all of which shall constitute but one and the same instrument.
Delivery of an executed counterpart of this Sublease by facsimile or email shall be deemed delivery
of the original hereof.

          Capitalized terms not otherwise defined herein shall have the meanings given them in the
Overlease.

          If it shall be necessary for either party hereto to employ an attorney to enforce any of the
terms, covenants, or conditions of this Sublease, the party in default or the party against whom
any final judgment is rendered agrees to pay all reasonable costs and attorney fees incurred by the
other party hereto in connection with the enforcement of the terms and conditions and/or covenants
of this Sublease.

          This Sublease represents the entire agreement between the parties with respect to the Premises
and there are no implied or expressed terms or conditions that are not contained herein. This
Sublease may be amended only in a writing signed by both parties.

[Signature Page Follows]

[Remainder of page intentionally left blank.]

10

 

Signature Page to Sublease

          IN WITNESS WHEREOF, Sublandlord and Subtenant have caused this Sublease to be executed and
delivered the date first above written.

	 	 	 	 	 	 	 
	 	 	MERCER (US) INC.,

Sublandlord	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	SOFTBRANDS
MANUFACTURING, INC., 
Subtenant	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 

11

 

LANDLORD’S CONSENT TO SUBLEASE

     The undersigned, ZELLER-LASALLE PLAZA, L.L.C., JPG-LASALLE PLAZA, L.L.C., AURORA-LASALLE
PLAZA, LLC, CYGNUS-LASALLE, LLC and HERITAGE INVESTMENT CP, LLC, each a Delaware limited liability
company (collectively, “Landlord”) under the Overlease described in the attached and foregoing
Sublease, hereby consents to the Sublease on the express condition that:

12

 

such consent or acceptance of the Sublease shall not be construed as a consent by Landlord to any
future assignment of the Overlease or sublease of the Leased Premises:

the Sublease may not be amended without the prior written consent of Landlord;

any termination of the Overlease shall automatically terminate the Sublease unless otherwise agreed
in writing by Landlord;

the Sublease shall at all times be subject and subordinate to the terms and provisions of the
Overlease;

the execution of this Consent shall not create any obligations from Landlord to Subtenant;
Subtenant’s agreement being solely with Sublandlord and not with Landlord;

Sublandlord and Subtenant acknowledge and agree that the provisions of Sections II and III of
Exhibit E attached to the Overlease do not apply to and are not a part of the Sublease and
Sublandlord acknowledges that the Term of Overlease (if not sooner terminated as provided therein)
shall expire on December 31, 2010 with no right or option to renew the Term thereof; and

Pursuant to the provisions of Article XIII of the Overlease, Sublandlord shall reimburse Landlord
its costs and expenses incurred in reviewing and consent to the proposed Sublease in the amount of
$750.00.

Sublandlord and Subtenant execute this document to evidence their agreement to the foregoing
conditions, and Subtenant acknowledges that its rights under the Sublease are subject to the terms
of the Overlease.

[Signature Page Follows]

[Remainder of page intentionally left blank.]

13

 

Signature Page to Landlord’s Consent to Sublease

	 	 	 	 	 	 	 
	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 
	 	 	ZELLER-LASALLE PLAZA, L.L.C.	 	 
	 	 	JPG-LASALLE PLAZA, L.L.C.	 	 
	 	 	AURORA-LASALLE PLAZA, LLC	 	 
	 	 	CYGNUS-LASALLE, LLC	 	 
	 	 	HERITAGE INVESTMENT CP, LLC,

each a Delaware limited liability company	 	 
	 

	 	By:
	 	ZELLER MANAGEMENT CORPORATION,
	 	 
	 

	 	 	 	an Illinois corporation, authorized agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SUBLANDLORD:	 	 
	 
	 	 	 	 	 	 
	 	 	MERCER (US) INC., a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

14

 

	 	 	 	 	 	 	 
	 	 	SUBTENANT:	 	 
	 
	 	 	 	 	 	 
	 	 	SOFTBRANDS MANUFACTURING, INC., a Minnesota corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

15

 

Exhibit A to Sublease

Description of Furniture, Furnishings and Equipment

See attached

16

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