Document:

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                                 EXHIBIT (10-10)

        The Procter & Gamble Company Executive Deferred Compensation Plan
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                        THE PROCTER & GAMBLE COMPANY
                        EXECUTIVE DEFERRED COMPENSATION PLAN
                        (EFFECTIVE JULY 1, 2004)

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CONTENTS

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<S>                                                           <C>
Article 1. Purpose, Status, and Effective Date                 1

Article 2. Definitions                                         1

Article 3. Eligibility and Participation                       4

Article 4. Contributions and Credits                           4

Article 5. Vesting                                             5

Article 6. Participant Accounts; Investment Options            6

Article 7. Distribution of Benefits                            7

Article 8. Claims Procedures                                   9

Article 9. Plan Administration                                10

Article 10. Amendment and Termination                         12

Article 11. Additional Provisions                             13
</TABLE>

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THE PROCTER & GAMBLE COMPANY
DEFERRED COMPENSATION PLAN

ARTICLE 1. PURPOSE, STATUS, AND EFFECTIVE DATE

      1.1   PURPOSE OF PLAN. The Procter & Gamble Company (the "Company"), an
Ohio corporation, has adopted The Procter & Gamble Company Executive Deferred
Compensation Plan (the "Plan"), as set forth herein, as a means of rewarding and
retaining selected employees and providing such individuals the opportunity for
capital accumulation through elective deferrals of compensation.

      1.2   STATUS OF PLAN. The Company has established the Plan as an unfunded
deferred compensation plan for a select group of management and highly
compensated employees within the meaning of Sections 201(2), 301(3), and 401(1)
of the Employee Retirement Income Security Act of 1974, as amended. The Plan
shall at all times be administered and interpreted in a manner that is
consistent with such status.

      1.3   EFFECTIVE DATE. The Effective Date of the Plan is July 1, 2004.

ARTICLE 2. DEFINITIONS

      Whenever used in this Plan, the following terms shall have the meanings
set forth below and, when the meaning is intended, the initial letter of the
word is capitalized.

      (a)   "ACCOUNT" shall mean the bookkeeping account for a Participant that
            is established and maintained to record the Participant's interest
            under the Plan. The balance posted to the record of the Account of a
            Participant shall reflect the Participant's Contributions,
            distributions, adjustments for income, gain, or loss, and other
            charges and credits pursuant to Article 6.

      (b)   "ADMINISTRATIVE COMMITTEE" shall mean the committee that administers
            the Short-Term Achievement Reward incentive plan or such other
            administrative committee of the Company appointed by the
            Compensation Committee to administer the Plan. Pursuant to Section
            9.2, the Administrative Committee has the authority to delegate its
            responsibilities. Throughout this plan document, the term
            "Administrative Committee" shall also include any individual to whom
            the Administrative Committee has delegated its responsibilities
            pursuant to Section 9.2.

      (c)   "BENEFICIARY" shall mean the person or persons or entity designated
            by the Participant to receive the balance of the Participant's
            Account in the event of the Participant's death. The designation may
            be in favor of one or more Beneficiaries, may include contingent as
            well as primary designations and named or unnamed trustees under any
            will or trust agreement and may apportion the benefits payable in
            any manner among the Beneficiaries. A Participant's designation of
            one or more Beneficiaries shall be made in writing in a manner
            designated by the Administrative Committee and shall not be
            effective until received by the Administrative Committee. If a
            Participant fails to properly designate a Beneficiary or if the
            designated beneficiaries of such Participant shall have predeceased
            the Participant, the Participant's estate shall be the Beneficiary.

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            A Participant may change his or her Beneficiary without the consent
            of any Beneficiary by similar instrument in accordance with rules
            and procedures established by the Administrative Committee. The
            beneficiary designation form received and acknowledged most recently
            by the Administrative Committee shall control as of any date. If
            concurrent Beneficiaries are named without specifying the proportion
            of benefits due each, distribution shall be made in equal shares to
            those Beneficiaries.

      (d)   "CLAIMANT" shall mean the Participant or Beneficiary or his or her
            representative submitting a claim for benefits under the Plan.

      (e)   "CODE" shall mean the Internal Revenue Code of 1986, as amended, or
            as it may be amended from time to time. Furthermore, the phrase "to
            the extent permitted under the Code" means to the extent the action
            described does not cause taxation of a Participant's Account prior
            to distribution of all or a portion of the Participant's Account.

      (f)   "COMPANY" shall mean The Procter & Gamble Company, an Ohio
            corporation, and any successor thereto which continues the Plan.

      (g)   "COMPENSATION" shall mean the definition of compensation for the
            Plan Year announced in writing by the Administrative Committee on or
            before the due date for the Administrative Committee's receipt of
            Participants' Deferral Elections for such Plan Year. Unless and
            until superceded, the definition of compensation announced by the
            Administrative Committee for a Plan Year shall remain in effect for
            subsequent Plan Years.

      (h)   "COMPENSATION COMMITTEE" shall mean the Compensation Committee of
            the Board of Directors, as constituted from time to time, of the
            Company. If the Compensation Committee has delegated any of its
            authority under the Plan to a committee or to an individual, the
            term "Compensation Committee" shall also include such committee or
            individual.

      (i)   "CONTRIBUTIONS" shall mean Deferrals.

      (j)   "DEFERRAL ELECTION" shall mean the election or elections filed by
            the Participant with the Company to defer Compensation under the
            Plan.

      (k)   "DEFERRALS" shall mean the amounts credited to a Participant's
            Account as Deferrals pursuant to the Participant's Deferral
            Election.

      (l)   "DISABILITY" shall mean "Permanent Disability" as defined in and as
            determined by, the plan administrator of The Procter & Gamble Profit
            Sharing Trust and Employee Stock Ownership Plan under The Procter &
            Gamble Profit Sharing Trust and Employee Stock Ownership Plan's
            procedures for disability claims. In addition, where the context so
            requires, "Disability" shall mean a termination of employment by
            reason of Disability.

      (m)   "EFFECTIVE DATE" shall mean the date set forth in Section 1.3.

      (n)   "ELIGIBLE EMPLOYEE" shall mean an Employee who satisfies one of the
            requirements for eligibility under Article 3 of the Plan.

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      (o)   "EMPLOYEE" shall mean any employee of the Company or a subsidiary
            who is expressly designated as an Employee. Any person who is not
            expressly designated as an Employee by the Company (or by the
            subsidiary of the Company for whom the person performs services)
            shall not be an Employee for purposes of the Plan, notwithstanding
            that such person may be later determined by the Internal Revenue
            Service or by a court of competent jurisdiction to be an employee.

      (p)   "EMPLOYER" shall mean, with respect to any Participant, the Company
            or, if applicable, a subsidiary of the Company (that is
            participating in the Plan with the consent of the Compensation
            Committee) that employs such Participant.

      (q)   "ERISA" shall mean the Employee Retirement Income Security Act of
            1974, as amended from time to time.

      (r)   "INVESTMENT OPTION" shall mean a security (other than stock of the
            Company), mutual fund, common or collective trust, insurance company
            pooled separate account, or other benchmark selected by the
            Administrative Committee pursuant to Section 6.2 for measuring the
            income, gain, or loss, and other charges and credits recorded for a
            Participant's Account.

      (s)   "PARTICIPANT" shall mean an Employee who is eligible to participate
            in the Plan: (i) by reason of being selected for participation
            pursuant to Section 3.1(a) of the Plan; or (ii) because the Employee
            satisfies eligibility criteria established by the Administrative
            Committee for participation by a class of employees pursuant to
            Section 3.1(b) of the Plan.

      (t)   "PLAN" shall mean The Procter & Gamble Company Deferred Compensation
            Plan, as herein set out or as duly amended.

      (u)   "PLAN YEAR" for this Plan shall mean the calendar year.

      (v)   "RETIREMENT" shall have the same meaning as provided under The
            Procter & Gamble Profit Sharing Trust and Employee Stock Ownership
            Plan.

      (w)   "SCHEDULED IN-SERVICE WITHDRAWAL" shall mean a distribution of all
            or a portion of the Deferrals credited to a Participant's Account in
            the Plan Year elected by the Participant for such distribution.

ARTICLE 3. ELIGIBILITY AND PARTICIPATION

      3.1   ELIGIBILITY.

              (a)    Participation in the Plan is limited to the class of
                     Employees who are expressly selected for Plan participation
                     by the Compensation Committee.

              (b)    In lieu of expressly selecting Employees for Plan
                     participation, the Compensation Committee may establish
                     eligibility criteria providing for the participation of all
                     Employees who satisfy such criteria.

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              (c)    The Compensation Committee may adopt, amend, or abolish a
                     Participant's selection for eligibility or eligibility
                     criteria under Sections 3.1(a) and 3.1(b) hereof at any
                     time, and for any reason, by resolution, which resolutions
                     shall be attached to the copy of the Plan maintained by the
                     Company and shall be effective as of the date specified
                     therein, or if later, the date submitted to the Company.

      3.2   PARTICIPATION. A Participant shall continue to participate in the
Plan with respect to amounts credited to his or her Account until: (i) the
Participant ceases to satisfy any of the eligibility criteria for participation
under Section 3.1, and (ii) there has been a complete distribution or forfeiture
of the Participant's Account.

ARTICLE 4. CONTRIBUTIONS AND CREDITS

      4.1   DEFERRALS.

            (a)   A Participant may elect to make Deferrals to his or her
                  Account for a Plan Year by timely executing and filing a
                  Deferral Election with the Administrative Committee on or
                  before the due date established by the Administrative
                  Committee for the Plan Year for which the Deferral Election is
                  being made. Except as provided in paragraphs (b) and (c) of
                  this Section 4.1, such due date shall be prior to January 1 of
                  the Plan Year for which the Compensation would otherwise be
                  payable.

            (b)   The Administrative Committee may provide for separate Deferral
                  Elections and due dates for the various elements of
                  Compensation, such as base salary and bonuses. Any Deferral
                  Election must be made prior to the period for which the
                  element of Compensation being deferred is earned, as
                  determined by the Administrative Committee in its sole
                  discretion, and the Participant's Deferral Election shall only
                  apply to Compensation earned after the date on which it is
                  received by the Administrative Committee.

            (c)   A Participant who first becomes eligible for participation in
                  the Plan after January 1 of a Plan Year who wishes to make
                  Deferrals to his or her Account for such Plan Year shall
                  execute and file with the Administrative Committee a Deferral
                  Election within thirty (30) days after the date on which such
                  Participant is notified that he or she has become eligible to
                  participate in the Plan. For this purpose, the date of the
                  notice shall be the date of notification, regardless of when
                  actually received by the Participant.

            (d)   Only one Deferral Election may be made for each element of
                  Compensation earned in a single Plan Year (or earned over a
                  period of more than one Plan Year). Any Participant who fails
                  to timely execute and file a Deferral Election with the
                  Administrative Committee for a Plan Year with respect to an
                  element of Compensation shall not be permitted to make
                  Deferrals for such element of Compensation for such Plan Year.

            (e)   A Deferral Election shall direct the Employer to reduce the
                  Participant's Compensation (or the element thereof) by a whole
                  percentage specified by the Participant in the Deferral
                  Election.

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            (f)   The amount specified by the Participant in the Deferral
                  Election cannot reduce the Participant's current Compensation
                  for such Plan Year below the amount necessary to satisfy any
                  applicable taxes and withholdings required by law, as
                  determined by the Administrative Committee.

            (g)   A Deferral Election for Compensation shall be effective only
                  for the Plan Year for which it is made. Once filed with the
                  Administrative Committee, a Deferral Election shall be
                  irrevocable.

            (h)   In making a Deferral Election, a Participant consents to the
                  Employer's withholding from his or her currently payable
                  Compensation the amount or amounts elected and the crediting
                  of such withheld amounts to the Participant's Account, as
                  provided in the Plan.

      4.2   AUTOMATIC CANCELLATION OF DEFERRAL ELECTIONS. Notwithstanding
anything in the Plan to the contrary, in the event the Participant ceases to be
a Participant, all of such Participant's outstanding Deferral Elections shall
immediately be cancelled, and the Participant's right to make future Deferral
Elections shall be suspended until the Participant again becomes a Participant.

ARTICLE 5. VESTING

      A Participant shall at all times be one hundred percent (100%) vested in
amounts credited to the Participant's Account.

ARTICLE 6. PARTICIPANT ACCOUNTS; INVESTMENT OPTIONS

      6.1   ACCOUNTS. The Administrative Committee shall establish an Account
for each Participant to record the Contributions, distributions, adjustments for
income, gain, or loss, and other charges and credits to the Account under the
Plan.

      6.2   INVESTMENT OPTIONS. The Administrative Committee shall designate one
or more Investment Options for measuring the income, gain, or loss, and other
charges and credits recorded for a Participant's Account and may change
Investment Options prospectively at any time provided that any Investment
Options designated must be comparable to an investment option available under a
tax-qualified defined contribution plan of the Company. Notwithstanding anything
in this Plan to the contrary, an Investment Option that provides an above-market
return, as defined by Item 402 of Regulation S-K of the Securities Act of 1933,
may not be designated without the approval of the Compensation Committee.

      6.3   PARTICIPANT ALLOCATIONS.

            (a)   A Participant shall elect on his or her Deferral Election form
                  or on such other form or by such other means as may be
                  specified by the Administrative Committee, one or more
                  Investment Options to which Contributions to be credited to
                  the Participant's Account shall be allocated. A Participant
                  may change the allocation of future Contributions among the
                  Investment Options and may change the allocation of his or her
                  Account balance among the Investment Options as frequently as
                  permitted by the Administrative Committee under rules and
                  procedures applicable to all Participants. The Administrative
                  Committee shall establish and may prospectively change its
                  rules regarding the timing and

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                  frequency of Investment Option elections and may establish
                  minimum amounts or percentages for allocating Contributions
                  and transferring Account balances among the Investment
                  Options.

            (b)   In the event a Participant fails or refuses to make an
                  election allocating Contributions credited to his or her
                  Account among the then available Investment Options, the
                  Administrative Committee shall, in its discretion, either: (i)
                  reject the Participant's Deferral Election as incomplete, or
                  (ii) specify the Investment Option or Options to which the
                  Participant's Account shall be allocated and notify the
                  Participant of its selection, which notification may be the
                  Account statements provided to the Participant.

      6.4   ADJUSTMENT OF ACCOUNTS. A Participant's Account balance shall be
adjusted daily, based on the performance of the Investment Options selected by
the Participant, as if the portion of the Participant's Account allocated to an
Investment Option were actually invested in such Investment Option and adjusted
for other amounts as if such other amounts were actually charged or credited to
an actual Account balance of the Participant. The Administrative Committee may
also charge as an expense against a Participant's Account: (i) amounts
customarily charged by the sponsor of one or more Investment Options that are
charged on a per-Participant or per-transaction basis and not otherwise charged
as an expense of an Investment Option, and (ii) the Administrative Committee's
and the Employer's own expenses and out-of-pocket fees in administering the
Plan. The Administrative Committee's allocation of charges and expenses among
Participant Accounts shall be final and conclusive against the Participants and
all other parties.

      6.5   STATUS OF INVESTMENT OPTIONS. The Investment Options established by
the Administrative Committee from time to time are for the sole purpose of
providing a performance measurement for adjusting Participants' Accounts for
income, gain, or loss, and other charges and credits. Notwithstanding anything
in this Plan to the contrary, neither the Company nor the Administrative
Committee shall be required to actually invest monies in any fund designated as
an Investment Option, any decision to so invest shall remain within the
discretion of the Company (subject to the approval of the Compensation
Committee), and any amounts so invested shall remain the property of the
Company.

ARTICLE 7. DISTRIBUTION OF BENEFITS

      7.1   DISTRIBUTION ELECTION.

            (a)   At the time each Deferral Election is made, the Participant
                  may elect to receive a distribution of all or a portion of the
                  related amount deferred (including adjustments thereon
                  pursuant to Section 6.4) upon the first to occur of the
                  Participant's Retirement or termination of employment by
                  reason of Disability.

            (b)   A Participant may instead elect to receive a Scheduled
                  In-Service Withdrawal of up to one hundred percent (100%) of
                  the related amount deferred (including adjustments thereon
                  pursuant to Section 6.4); provided, however, that any
                  Scheduled In-Service Withdrawal must occur at least one (1)
                  year after the end of the Plan Year in which the Deferrals
                  being distributed were credited to the Participant's Account.

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            (c)   Separate distribution elections may be made for each Plan
                  Year's credited Contributions. The Participant's distribution
                  election shall be made in writing as specified by the
                  Administrative Committee.

      7.2   RETIREMENT/DISABILITY DISTRIBUTIONS.

            (a)   A Participant may elect one or both of the following forms of
                  distribution for his or her Account distributable by reason of
                  the Participant's Retirement or Disability: (i) a single sum
                  distribution, or (ii) a distribution in approximately equal
                  annual installments payable over a period of two (2) to ten
                  (10) years. The Account balance of a Participant who fails or
                  refuses to elect a method of distribution shall be paid in a
                  single sum.

            (b)   A distribution payable by reason of the Participant's
                  Retirement or Disability shall be paid (in the case of a
                  single sum) or commence to be paid (in the case of annual
                  payments) as soon as practicable in the calendar year
                  following the calendar year in which the Participant's
                  Retirement or Disability occurs.

      7.3   DEATH DISTRIBUTIONS. If a Participant dies before a complete
distribution of his or her Account under the Plan has occurred, the
Participant's undistributed Account balance shall commence to be distributed to
his or her Beneficiary under the distribution method (for death) elected by the
Participant as soon as administratively possible following receipt by the
Administrative Committee of satisfactory notice and confirmation of the
Participant's death.

      7.4   SCHEDULED IN-SERVICE WITHDRAWALS.

            (a)   A Scheduled In-Service Withdrawal shall be paid in a single
                  sum as soon as practicable in the January of the payout year
                  elected by the Participant to receive such Scheduled
                  In-Service Withdrawal.

            (b)   If a Participant has elected a Scheduled In-Service Withdrawal
                  for all or a portion of his or her Account, but terminates
                  employment with all Employers for any reason other than
                  Disability or death prior to the year specified by the
                  Participant for such Scheduled In-Service Withdrawal to be
                  paid, the Scheduled In-Service Withdrawal shall be paid in the
                  year following the year employment terminates.

            (c)   If a Participant terminates employment with all Employers by
                  reason of Disability or death prior to the year specified by
                  the Participant for such Scheduled In-Service Withdrawal to be
                  paid, the Scheduled In-Service Withdrawal distribution shall
                  be distributed in the manner elected by the Participant for
                  Disability or death. However, if Disability or death occurs
                  within a Plan Year during which a Scheduled In-Service
                  Withdrawal is still to be paid, such withdrawal shall be paid
                  as scheduled to the Participant (or in the event of death, to
                  the Participant's estate).

      7.5   TERMINATION OF EMPLOYMENT. If a Participant terminates employment
with all Employers prior to his or her Retirement, death, or Disability for any
reason, notwithstanding any distribution election made by the Participant, the
undistributed portion of the Participant's Account

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balance shall be payable to the Participant in a single sum in January following
the calendar year in which such termination of employment occurs.

      7.6   FORM OF DISTRIBUTIONS. All amounts distributed to a Participant from
his or her Account shall be paid in cash by the Employer or its designee.

      7.7   POSTPONEMENT OF DISTRIBUTIONS. The Administrative Committee may
postpone the distribution of all or part of an amount otherwise payable to a
Participant to the extent that the distribution would not be deductible by the
Employer under Section 162(m) of the Code. A conversion or distribution that is
so postponed pursuant to this Section 7.7 shall be converted and/or paid as soon
as it is possible to do so within the deduction limitations of Section 162(m) of
the Code.

      7.8   PERMITTED CHANGES IN DISTRIBUTION ELECTIONS. To the extent permitted
under the Code and by the Administrative Committee, a Participant may change his
or her distribution election related to amount(s) distributable by reason of his
or her Disability or death if such change is made in writing at least twelve
(12) months prior to the Participant's Disability or death and only if such
change will not result in taxation of amounts previously deferred. In the event
that the Participant's most recent form of distribution election was made within
twelve (12) months of the Participant's Disability or death, the next most
recent election made by the Participant at least twelve (12) months prior to the
Participant's termination of employment by reason of Disability or death (or if
none, the Participant's initial election) shall be used.

ARTICLE 8. CLAIMS PROCEDURES

      8.1   GENERALLY. A distribution request (also referred to herein as a
claim) shall be made by filing a written request with the Administrative
Committee on a form provided by the Administrative Committee, which shall be
delivered to the Administrative Committee. If the claims procedure form made
available by the Administrative Committee does not contain information on where
to file the claim, the claim may be submitted to the human resources office at
the site where the Claimant is employed.

      8.2   DENIED CLAIMS. If a claim is denied in whole or in part, the
Claimant shall receive a written or electronic notice explaining the denial of
the claim within ninety (90) days after the Administrative Committee's receipt
of the claim. If the Administrative Committee determines that for reasons beyond
its control, a ninety (90) day extension of time is necessary to process the
claim, the Claimant shall be notified in writing of the extension and reason for
the extension within ninety (90) days after the Administrative Committee's
receipt of the claim. The written extension notification shall also indicate the
date by which the Administrative Committee expects to render a final decision. A
notice of denial of claim shall contain the following: the specific reason or
reasons for the denial; reference to the specific Plan provisions on which the
denial is based; a description of any additional materials or information
necessary for such Claimant to perfect the claim and an explanation of why such
material or information is necessary; and a description of the Plan's review
procedures and the time limits applicable to such procedures, including a
statement of the Claimant's right to bring a civil action under Section 502(c)
of ERISA following an adverse determination on review.

      8.3   REVIEW OF DENIED CLAIMS. A Claimant may file a written request for a
review of the denial of a claim within sixty (60) days after receiving written
notice of the denial. The Claimant may submit written comments, documents,
records, and other relevant information in support of the

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claim. A Claimant shall be provided, upon request and without charge, reasonable
access to, and copies of, all documents, records, and other information relevant
to the Claimant's claim. A document, record, or other information shall be
considered relevant if it: (a) was relied upon in denying the claim; (b) was
submitted, considered or generated in the course of processing the claim,
regardless of whether it was relied upon; (c) demonstrates compliance with the
claims procedures process; or (d) constitutes a statement of Plan policy or
guidance concerning the denied claim.

      8.4   DECISIONS ON REVIEWED CLAIMS. The Administrative Committee shall
notify the Claimant in writing of its decision on the appeal. Such notification
shall be in a form designed to be understood by the Claimant. If the claim is
denied in whole or in part on appeal, the notification shall also contain: the
specific reason or reasons for the denial; reference to the specific Plan
provisions on which the determination is based; a statement that the Claimant is
entitled to receive, upon request and free of charge, reasonable access to, and
copies of, all documents, records, and other information relevant to the
Claimant's claim for benefits; and a statement that the Claimant has a right to
bring an action under Section 502(a) of ERISA. A document, record, or other
information shall be considered relevant if it: (a) was relied upon in denying
the claim; (b) was submitted, considered, or generated in the course of
processing the claim, regardless of whether it was relied upon; (c) demonstrates
compliance with the claims procedures process; or (d) constitutes a statement of
Plan policy or guidance concerning the denied claim. Such notification shall be
given by the Administrative Committee within sixty (60) days after the complete
appeal is received by the Administrative Committee (or within one hundred twenty
(120) days if the Administrative Committee determines special circumstances
require an extension of time for considering the appeal, and if written notice
of such extension and circumstances is given to the Claimant within the initial
sixty (60) day period). Such written extension notice shall also indicate the
date by which the Administrative Committee expects to render a decision.

      8.5   REVIEW PROCEDURES. In reviewing a denied claim, the reviewer shall
take into consideration all comments, documents, records, and other information
submitted by the Claimant in support of the claim, without regard to whether
such information was submitted or considered in the initial determination.

ARTICLE 9. PLAN ADMINISTRATION

      9.1   ESTABLISHMENT OF THE ADMINISTRATIVE COMMITTEE. The Administrative
Committee shall have the sole responsibility for the administration of the Plan.
The Administrative Committee shall consist of at least three (3) members who
shall be appointed by the Compensation Committee and who may also be officers,
directors, or employees of the Company or an Employer. An Administrative
Committee member may resign by written notice to, or may be removed by, the
Company, which shall appoint a successor to fill any vacancy on the
Administrative Committee, howsoever caused. An Employee's membership on the
Administrative Committee shall automatically terminate upon such Employee's
termination of employment with all Employers.

      9.2   APPOINTMENT AND DUTIES OF THE ADMINISTRATIVE COMMITTEE.

            (a)   The Administrative Committee may delegate its responsibilities
                  hereunder to one or more persons, to serve at the
                  Administrative Committee's discretion. The Administrative
                  Committee or its delegatee(s) shall have such powers as may be
                  necessary to discharge its duties hereunder, including, but
                  not by way of limitation, the following:

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                  (i)      To administer and enforce the Plan, including the
                           discretionary and exclusive authority to interpret
                           the Plan, to make all factual determinations under
                           the Plan, and to resolve questions between the
                           Company and Participants or Beneficiaries, including
                           questions which relate to eligibility and
                           distributions from the Plan, to remedy possible
                           ambiguities, inconsistencies, or omissions, and
                           decisions on claims which shall, subject to the
                           claims procedures under the Plan, be conclusive and
                           binding upon all persons hereunder, including,
                           without limitation, Participants, other Employees of
                           the Company, Beneficiaries, and former Participants,
                           and their executors, administrators, conservators, or
                           heirs;

                  (ii)     To prescribe procedures to be followed by
                           Participants or Beneficiaries filing applications for
                           benefits;

                  (iii)    To prepare and distribute, in such manner as the
                           Administrative Committee determines to be
                           appropriate, information explaining the Plan;

                  (iv)     To receive from the Employer and from Participants
                           such information as shall be necessary for the proper
                           administration of the Plan;

                  (v)      To furnish the Employer, upon request, such reports
                           with respect to the administration of the Plan as are
                           reasonable and appropriate;

                  (vi)     To receive, review, and keep on file (as it deems
                           convenient or proper) reports of the receipts and
                           disbursements under the Plan;

                  (vii)    To appoint or employ individuals to assist in the
                           administration of the Plan and any other agents it
                           deems advisable, including legal counsel, and such
                           clerical, medical, accounting, auditing, actuarial,
                           and other services as it may require in carrying out
                           the provisions of the Plan or in connection with any
                           legal claim or proceeding involving the Plan, to
                           settle, compromise, contest, prosecute, or abandon
                           claims in favor of or against the Plan; and

                  (viii)   To discharge all other duties set forth herein.

            (b)   The Administrative Committee shall have no power to add to,
                  subtract from, or modify any of the terms of the Plan, or to
                  change or add to any benefits provided by the Plan, or to
                  waive or fail to apply any requirements of eligibility under
                  the Plan. No member of the Administrative Committee shall
                  participate in any action on any matters involving solely his
                  or her own rights or benefits as a Participant under the Plan,
                  and any such matters shall be determined by the Compensation
                  Committee.

      9.3   ACTIONS BY THE ADMINISTRATIVE COMMITTEE. The Administrative
Committee may act at a meeting or by writing without a meeting, by the vote or
assent of a majority of its members. The Administrative Committee may adopt such
bylaws and regulations as it deems desirable for the conduct of its affairs and
the administration of the Plan. A dissenting Administrative Committee member
who, within a reasonable time after he or she has knowledge of any action or
failure to act

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by the majority, registers his or her dissent in writing delivered to the other
Administrative Committee members shall not be responsible for any such action or
failure to act.

      9.4   EXPENSES OF THE ADMINISTRATIVE COMMITTEE. Members of the
Administrative Committee shall not receive compensation from the Plan for those
services they perform as the Administrative Committee members while employed by
an Employer. Any and all necessary expenses related to Plan administration shall
be paid by the Company but may be charged against Plan Accounts.

      9.5   RECORDS OF THE ADMINISTRATIVE COMMITTEE. The Administrative
Committee shall keep a record of all of its meetings and shall keep all such
books of account, records, and other data as may be necessary or desirable in
its judgment for the administration of the Plan.

      9.6   INFORMATION FROM PARTICIPANT. The Administrative Committee may
require a Participant to complete and file with the Administrative Committee
forms approved by the Administrative Committee, and to furnish all pertinent
information requested by such Administrative Committee. The Administrative
Committee may rely upon all such information so furnished, including the
Participant's current mailing address.

      9.7   NOTIFICATION OF PARTICIPANT'S ADDRESS. Each Participant, retired
Participant, and Beneficiary entitled to benefits under the Plan must file with
the Administrative Committee or such other person designated by the
Administrative Committee, in writing, his or her post office address and each
change of post office address. Any communication, statement, or notice addressed
to such a person at this latest post office address as filed with the
Administrative Committee shall, on deposit in the United States mail with
postage prepaid, be binding upon such person for all purposes of the Plan, and
the Administrative Committee shall not be obliged to search for, or ascertain
the whereabouts of, any such person.

      9.8   INDEMNIFICATION. Notwithstanding any provision herein to the
contrary, no member of the Administrative Committee nor any individual to whom
the Administrative Committee has delegated duties under this Plan shall be
liable to any Participant, former Participant, designated Beneficiary, or any
other person for any claim, loss, liability, or expense incurred in connection
with the Plan, unless attributable to fraud or willful misconduct on the part of
such member or individual. Furthermore, members of the Administrative Committee
and all individuals to whom the Administrative Committee has delegated duties
under this Plan shall be indemnified by the Company against any and all
liabilities arising by reason of any act or failure to act made in good faith
pursuant to the provisions of the Plan, including expenses reasonably incurred
in the defense of any claim relating thereto.

ARTICLE 10. AMENDMENT AND TERMINATION

      The Company hereby reserves the right, by written resolution of the
Compensation Committee, to amend or terminate the Plan at any time, and for any
reason, without the consent of any Participant. No amendment shall impair or
curtail the Employer's contractual obligations to a Participant for the vested
portion of the Participant's Account prior to the date of any such amendment or
termination of the Plan.

<PAGE>

ARTICLE 11. ADDITIONAL PROVISIONS

      11.1  NO CONTRACT. Nothing in the Plan shall be deemed to give a
Participant any right to be retained in the employ of the Employer or to
interfere with the Employer's right to discharge the Participant at any time,
with or without cause.

      11.2  WITHHOLDINGS. The Employer shall withhold from any amount
distributable to a Participant under the Plan any applicable actual or
hypothetical federal, state, or local income or employment taxes or any other
amounts required to be withheld by law or withheld pursuant to Section 11.4. In
addition, the Employer may withhold from a Participant's currently payable
salary, bonus, or other compensation any applicable federal, state, or local
income or employment taxes that may be due upon the crediting of an amount to
the Participant's Account.

      11.3  RIGHTS NOT TRANSFERABLE. Neither a Participant nor any other person
shall have any right to commute, sell, assign, transfer, pledge, anticipate,
mortgage, or otherwise encumber, transfer, hypothecate, alienate, or convey in
advance of actual receipt, the amounts, if any, payable hereunder, or any part
thereof, which are, and all rights to which are expressly declared to be,
unassignable and nontransferable. No part of the amounts payable shall, prior to
actual payment, be subject to seizure, attachment, garnishment, or sequestration
for the payment of any debts, judgments, alimony, or separate maintenance owed
by a Participant or any other person, be transferable by operation of law in the
event of a Participant's or any other person's bankruptcy or insolvency or be
transferable to a spouse as a result of a property settlement or otherwise.

      11.4  OFFSET. If, at the time payments or installments of payments are to
be made hereunder, the Participant or Beneficiary or both are indebted or
obligated to the Company, then the remaining payments under the Plan to be made
to the Participant or the Beneficiary or both may, at the discretion of the
Company, be reduced by the amount of the indebtedness or obligation, provided,
however, that an election by the Company not to reduce any such payment or
payments shall not constitute a waiver of its claim for such indebtedness or
obligation or a waiver of its right to make an offset against payments in the
future.

      11.5  NO FUNDING. The Plan constitutes a mere promise of the Employer to
make payments in accordance with the terms of the Plan. This Plan does not give
any Participant or his or her Beneficiary any interest, lien, or claim in or
against any specific assets of the Employer. The Participant and his or her
Beneficiary shall have only the rights of general, unsecured creditors of the
Employer with respect to their rights under the Plan.

      The Company may, but shall not be required to, establish a grantor trust
as a funding source for its obligations under the Plan. If such a trust is so
established, it shall be the intention of the Company that the trust shall
constitute an unfunded arrangement for purposes of the Plan, such that the Plan
shall continue to be an unfunded plan maintained for the purpose of providing
deferred compensation to a select group of management or highly compensated
employees under ERISA. With respect to any Participant, the assets of the trust
so established shall remain subject to the claims of the creditors of that
Participant's Employer in the event of the Employer's bankruptcy or insolvency.

      11.6  CONSTRUCTION. The headings in this Plan have been inserted for
convenience of reference only and are to be ignored in any construction of the
provision.

<PAGE>

      11.7  GENDER AND NUMBER. Except when otherwise clearly indicated by the
context, when used in the Plan words in any gender shall include any other
gender, and words in the singular shall include the plural, and words in the
plural shall include the singular.

      11.8  SEVERABILITY. In the event any provision of the Plan shall be held
invalid or illegal for any reason, any illegality or invalidity shall not affect
the remaining parts of the Plan, but the Plan shall be construed and enforced as
if the illegal or invalid provision had never been inserted, and the Company
shall have the right to correct and remedy such questions of illegality or
invalidity by amendment as provided by the Plan.

      11.9  GOVERNING LAW. The Plan shall be regulated, construed, and
administered in all respects under and by the laws of the state of Ohio, without
regard to its conflict of laws provisions, except when preempted by federal law.

      11.10 VOIDING OF PLAN PROVISIONS. If any provision under this Plan causes
an amount deferred to become subject to income tax under the Code prior to the
time such amount is paid to the Participant, such provision shall be deemed null
and void with respect to such amount deferred and the Administrative Committee
shall take whatever steps as may be required to accomplish the deferral
objectives of the Plan without causing early taxation of such amount deferred
and without any Employer incurring additional cost or liability.

Plan adopted July 1, 2004EX-10.5

 

Exhibit 10.5

AMENDED AND RESTATED

INDUSTRIAL REAL ESTATE LEASE

BY AND BETWEEN

LIPPMAN & LIPPMAN, L.P. AND MARTIN AND DONNABETH LIPPMAN,

LANDLORD

AND

DICK’S SPORTING GOODS, INC., TENANT

 

 

AMENDED AND RESTATED

INDUSTRIAL REAL ESTATE LEASE

This Amended and Restated Industrial Real Estate Lease (this “Lease”) amends
and restates the Industrial Real Estate Lease entered into by and between
Panattoni Development Company, as assigned by Panattoni Development Company to
West Penn Investments, LLC pursuant to the Assignment and Assumption of Option
and Lease Agreement dated as of May 12, 1999, as assigned to Martin Lippman and
Donnabeth Lippman by West Penn Investments, LLC, pursuant to that certain
Assignment and Assumption of Lease, Rents and Security Deposit dated July 13,
2001 (the “Original Landlord”) and Dick’s Clothing & Sporting Goods, Inc., now
known as Dick’s Sporting Goods, Inc. (from a name change with the state of
Delaware filed April 26, 1999) as Tenant, dated February 4, 1999, as amended by
First Amendment to Single-Tenant Net Lease by and between West Penn
Investments, LLC and Dick’s Sporting Goods, Inc. dated January 20, 2000
(collectively, the “Original Lease”). Pursuant to the Original Lease, Tenant
leases from the Original Landlord property in the I-70 Industrial Park in
Westmoreland County, Pennsylvania consisting of a warehouse containing
approximately 388,190 square feet, and related improvements located on
approximately 50 square feet of land, more particularly described in the
Original Lease (the “Original Property”). At the request of Tenant, Lippman &
Lippman, L.P., an affiliate of the Original Landlord (the “Partnership” and,
together with the Original Landlord, the “Landlord” under this Lease) has
agreed to acquire approximately 14.07 acres of land in the I-70 Industrial Park
adjacent to the Original Property, more particularly described on Exhibit D
attached hereto and made a part hereof (the “Expansion Real Property’). Tenant
agrees to lease the Expansion Real Property from Lippman & Lippman, L.P. and
pursuant to the terms of this Lease agrees to construct an addition to the
Original Property which shall be an expansion of the existing distribution
center facility, consisting of not less than 213,920 square feet of area under
roof and related parking and other improvements (the “Expansion Facility”).
The Tenant shall construct the Expansion Facility at its sole cost and expense,
as more particularly described in Section 2a of the Addendum of this Lease, and
upon substantial completion of the Expansion Facility, as hereinafter defined,
and the delivery of the other items more particularly described in Section 2c
of the Addendum to this Lease, Landlord shall pay Tenant the Expansion
Allowance, as hereinafter defined. For purposes of this Lease, the term
“Property” shall refer collectively to the Original Property, the Expansion
Real Property and the Expansion Facility.

 

 

ARTICLE ONE: BASIC TERMS

This Article One contains the Basic Terms of this Lease between the Landlord
and Tenant named below. Other Articles, Sections and Paragraphs of the Lease
referred to in this Article One explain and define the Basic Terms and are to
be read in conjunction with the Basic Terms.

	 	 	 
	Section 1.01. Date of Lease:

	 	Amended and Restated Lease effective as of
	

	 	May 5, 2004.
	 
	 	 
	Section 1.02. Landlord:

	 	Lippman & Lippman, L.P., a Pennsylvania limited
	

	 	partnership and Martin Lippman and Donnabeth
	

	 	Lippman, husband and wife, collectively.
	 
	 	 
	Address of Landlord:

	 	71 Stuart Shores Road
	

	 	Standish, Maine 04084
	 
	 	 
	Section 1.03. Tenant :

	 	Dick’s Sporting Goods, Inc., a Delaware Corporation.

	 	 	 
	Address of Tenant:

	 	200 Industry Drive
	

	 	Pittsburgh, PA 15275
	 
	 	 
	

	 	after July 1:
	 
	 	 
	

	 	300 Industry Drive
	

	 	Pittsburgh, PA 15275

     Section 1.04. Property: The Original Property, the Expansion Land and the
Expansion Facility consisting of approximately 602,190 square foot distribution
center facility on approximately 64 acres in the I-70 Industrial Park in
Westmoreland County, Pennsylvania.

     Section 1.05. Lease Term: (See Article Two) The lease term shall
continue through the date that is 240 months from the Restated Commencement
Date (as defined in Section 2.01) (anticipated to be approximately February 1,
2005) or such other date as is specified in this Lease, and ending on
approximately January 31, 2025; provided, however, that Tenant’s occupancy of
the Expansion Facility shall not commence until the Restated Commencement Date.
See Addendum to Lease attached hereto and incorporated herein, providing for
four optional extension terms.

     Section 1.06. Permitted Uses: (See Article Five) Storage, distribution,
and other such uses as permitted by code and applicable local regulations.

     Section 1.07. Tenant’s Guarantor: None.

     Section 1.08. Brokers: (See Article Fourteen).

     Section 1.09. Commission Payable to Landlord’s Broker: (See Article
Fourteen) None.

 

 

     Section 1.10. Initial Security Deposit: (See Section 3.03) $239,708 of
which $107,723 was applied to first month’s rent. The remaining Security
Deposit shall be returned to Tenant once Tenant’s Net Worth becomes greater
than $100,000,000 and Tenant’s Income Statements show profitability for three
(3) consecutive years.

     Section 1.11. Intentionally omitted.

     Section 1.12. Rent and Other Charges Payable by Tenant:

          (a) BASE RENT: See Rent Schedule attached hereto and made a part hereof
(the “Rent Schedule”).

          (b) OPTION PERIOD RENT: See Addendum to Lease.

          (c) OTHER PERIODIC PAYMENTS: (i) Real Property Taxes (See Section 4.02);
(ii) Utilities (See Section 4.03); (iii) Insurance Premiums (See Section 4.04);
(iv) Impounds for Insurance Premiums and Property Taxes (See Section 4.07); (v)
Maintenance, Repairs and Alterations (See Article Six).

     Section 1.13. Landlord’s Share of Profit on Assignment or Sublease: (See
Section 9.05) fifty percent (50%) of the Profit (the “Landlord’s Share”).

     Section 1.14. Riders: The following Riders are attached to and made a
part of this Lease:

	 	 	 
	

	 	Rent Schedule

Addendum to Lease

Hazardous Materials Rider

Exhibit A- Site Plan

Exhibit B - Construction Specifications (to be attached)

Exhibit C - Budget

Exhibit D-1 - Legal Description of Original Property

Exhibit D-2 - Legal Description of Expansion Real Property

Exhibit E - Financing Indemnification Letter

ARTICLE TWO: LEASE TERM

     Section 2.01. Lease of Property For Lease Term. Landlord leases the
Property to Tenant and Tenant leases the Property from Landlord for the Lease
Term. The Lease Term is for the period stated in Section 1.05 above and shall
begin and end on the dates specified in Section 1.05 above, unless the
beginning or end of the Lease Term is changed under any provision of this
Lease. The “Restated Commencement Date” shall have the meaning given to such
term in the Addendum to this Lease. Tenant may exercise one or more options to
extend the Lease Term as more fully set forth in the Addendum to Lease attached
hereto.

     Section 2.02. Delay in Commencement. Landlord shall be responsible to
take title to the Expansion Real Property (as described on Exhibit D and as
shown on Exhibit A) or before May 5, 2004 pursuant to that certain option
Agreement dated March 25, 2004 by and between

2

 

Westmoreland County Industrial Development Corporation and Tenant as
assigned to Landlord as of the date of this Lease (the “Expansion Start Date”).
The Restated Commencement Date shall be delayed until Landlord delivers
possession of the Property to Tenant and the Lease Term shall be extended for a
period equal to the delay in delivery of possession of the Property to Tenant,
plus the number of days necessary to end the Lease Term on the last day of a
month. The parties acknowledge and agree that Tenant’s obligation to commence
paying rent for the Expansion Real Property and the Expansion Facility shall in
no event be extended by any delay in the construction of the Expansion Facility
or any other matter. Upon the occurrence of the Restated Commencement Date,
Landlord and Tenant shall execute an amendment to this Lease setting forth the
actual Restated Commencement Date and expiration date of the Lease. Failure to
execute such amendment shall not affect the actual Restated Commencement Date
and expiration date of the Lease.

     Section 2.03. Occupancy of Original Property; Early Occupancy of Expansion
Facility. Tenant acknowledges and agrees that it currently occupies the
Original Property and that as of the date hereof, to the best knowledge of
Tenant’s officers, it has no claims against Landlord with respect to the
Original Property or on account of the Original Lease. If Tenant occupies the
Expansion Facility prior to the Restated Commencement Date, Tenant’s occupancy
of the Property shall be subject to all of the provisions of this Lease. Early
occupancy of the Expansion Facility shall not advance the expiration date of
this Lease. Tenant shall pay Base Rent and all other charges specified in this
Lease for the early occupancy period.

     Section 2.04. Holding Over. Tenant shall vacate the Property upon the
expiration or earlier termination of this Lease. Tenant shall reimburse
Landlord for and indemnify Landlord against all damages which Landlord incurs
from Tenant’s delay in vacating the Property. If Tenant does not vacate the
Property upon the expiration or earlier termination of the Lease and Landlord
thereafter accepts rent from Tenant, Tenant’s occupancy of the Property shall
be a “month-to-month” tenancy, subject to all of the terms of this Lease
applicable to a month-to-month tenancy, except that the Base Rent then in
effect shall be increased by twenty-five percent (25%).

ARTICLE THREE: BASE AND OPTION RENT

     Section 3.01. Time and Manner of Payment. (a) Upon execution of this
Lease, and upon the first day of each month thereafter until the day
immediately prior to the Restated Commencement Date, Tenant shall continue to
pay Landlord the Base Rent for the Original Property in the amount stated in
Table I of the Rent Schedule attached, in advance, without offset, deduction or
prior demand.

          (b) Upon the Restated Commencement Date and upon the first day of each
month thereafter until the expiration of the Lease, Tenant shall pay Landlord
the Base Rent in the amount stated in Table II of the Rent Schedule for the
Original Property and the Expansion Facility, in advance, without offset,
deduction or prior demand.

          (c) The Option Rent shall be that set forth in the Addendum to Lease
attached hereto and shall be payable in accordance with this Article 3.

3

 

          (d) Tenant shall pay rent to the party and at the address specified in the
Original Lease or at such other place as Landlord may designate in writing. So
long as there is no interference with the construction activities of the
Expansion Facility, the Tenant may commence the installation of trade fixtures
in the Expansion Facility prior to the Restated Commencement Date. This
provision is merely an accommodation to the Tenant to allow early occupancy and
shall not be considered “free rent.”

     Section 3.02. Security Deposit.

          (a) Tenant has deposited with Landlord a cash Security Deposit in the
amount set forth in Section 1.10 above. No interest shall be paid on the
Security Deposit. Landlord shall not be required to keep the Security Deposit
separate from its other accounts and no trust relationship is created with
respect to the Security Deposit.

     Section 3.03. Termination; Advance Payments. Unless earlier terminated as
set forth in the Addendum to the Lease, upon termination of this Lease under
Article Seven (Damage or Destruction), Article Eight (Condemnation) or any
other termination not resulting from Tenant’s default, and after Tenant has
vacated the Property in the manner required by this Lease, Landlord shall
refund or credit to Tenant (or Tenant’s successor) the unused portion of the
Security Deposit, any advance rent or other advance payments made by Tenant to
Landlord, and any amounts paid for real property taxes and other reserves which
apply to any time periods after termination of the Lease.

ARTICLE FOUR: OTHER CHARGES PAYABLE BY TENANT

     Section 4.01. Additional Rent. All charges payable by Tenant other than
Base Rent and Option Rent are called “Additional Rent.” Unless this Lease
provides otherwise, Tenant shall pay all Additional Rent then due with the next
monthly installment of Base Rent or Option Rent. The term “rent” shall mean
Base Rent or Option Rent and Additional Rent.

     Section 4.02. Property Taxes.

          (a) Real Property Taxes. Tenant shall pay all real property taxes on the
Property (including any fees, taxes or assessments against, or as a result of,
any tenant improvements installed on the Property by or for the benefit of
Tenant) during the Lease Term. Subject to Paragraph 4.02(c) and Section 4.07
below, such payment shall be made at least ten (10) days prior to the
delinquency date of the taxes. Within such ten (10) day period, Tenant shall
furnish Landlord with satisfactory evidence that the real property taxes have
been paid. Landlord shall reimburse Tenant for any real property taxes paid by
Tenant covering any period of time prior to or after the Lease Term. If Tenant
fails to pay the real property taxes when due, Landlord may pay the taxes and
Tenant shall reimburse Landlord for the amount of such tax payment as
Additional Rent.

          (b) Definition of “Real Property Tax.” “Real property tax” means: (i)
any fee, license fee, license tax, business license fee, levy, charge,
assessment, penalty or tax imposed by any taxing authority against the
Property; (ii) any tax or charge for fire protection, streets, sidewalks, road
maintenance, refuse or other services provided to the Property by any

4

 

governmental agency; (iii) any tax (except Tenant shall not be responsible
for associated transfer taxes) imposed upon this transaction or based upon a
re-assessment of the Property due to a change of ownership, as defined by
applicable law, or other transfer of all or part of Landlord’s interest in the
Property; and (iv) any charge or fee replacing any tax previously included
within the definition of real property tax. “Real property tax” does not,
however, include Landlord’s federal or state income, franchise, inheritance or
estate taxes.

          (c) Personal Property Taxes.

               (i) Tenant shall pay all taxes charged against trade fixtures,
furnishings, equipment or any other personal property belonging to Tenant.
Tenant shall try to have personal property taxed separately from the Property.

               (ii) If any of Tenant’s personal property is taxed with the Property,
Tenant shall pay Landlord the taxes for the personal property within fifteen
(15) days after Tenant receives a written statement from Landlord for such
personal property taxes.

          (d) Tenant’s Right to Contest Taxes. Tenant may attempt to have the
assessed valuation of the Property reduced or may initiate proceedings to
contest the real property taxes. If required by law, Landlord shall join in
the proceedings brought by Tenant and, unless otherwise reasonably restricted
by Landlord’s mortgage lender, appoints Tenant as its agent for such
proceedings. However, Tenant shall pay all costs of the proceedings, including
any costs or fees incurred by Landlord. Upon the final determination of any
proceeding or contest, Tenant shall immediately pay the real property taxes
due, together with all costs, charges, interest and penalties incidental to the
proceedings. If Tenant does not pay the real property taxes when due and
contests such taxes, Tenant shall not be in default under this Lease for
nonpayment of such taxes if Tenant deposits funds with Landlord or opens an
interest-bearing account reasonably acceptable to Landlord and its mortgage
lender (as the same may change from time to time, a “mortgage lender”) in the
joint names of Landlord and Tenant. The amount of such deposit shall be
sufficient to pay the real property taxes plus a reasonable estimate of the
interest, costs, charges and penalties which may accrue if Tenant’s action is
unsuccessful plus the reasonable out-of-pocket expenses of Landlord and its
mortgage lender whether or not Tenant’s action is successful, less any
applicable tax impounds previously paid by Tenant to Landlord. The deposit
shall be applied to the real property taxes due, as determined at such
proceedings. The real property taxes shall be paid under protest from such
deposit if such payment under protest is necessary to prevent the Property from
being sold under a “tax sale” or similar enforcement proceeding or to prevent
the occurrence of an event of default under Landlord’s financing.

     Section 4.03. Utilities. Tenant shall pay, directly to the appropriate
supplier, the cost of all natural gas, heat, light, power, sewer service,
telephone, water, refuse disposal and other utilities and services supplied to
the Property. However, if any services or utilities are jointly metered with
other property, Landlord shall make a reasonable determination of Tenant’s
proportionate share of the cost of such utilities and services and Tenant shall
pay such share to Landlord within fifteen (15) days after receipt of Landlord’s
written statement.

     Section 4.04. Insurance Policies.

5

 

          (a) Liability Insurance. During the Lease Term, Tenant shall maintain a
policy of commercial general liability insurance (sometimes known as broad form
comprehensive general liability insurance) insuring Tenant against liability
for bodily injury, property damage (including loss of use of property) and
personal injury arising out of the operation, use or occupancy of the Property.
Tenant shall name Landlord and Landlord’s mortgage lender, as an additional
insured under such policy. The initial amount of such insurance shall be One
Million Dollars ($1,000,000) per occurrence or such greater amount if
reasonably required by Landlord’s mortgage lender and shall be subject to
periodic increase based upon inflation, increased liability awards,
recommendation of Landlord’s professional insurance advisers and other relevant
factors. The liability insurance obtained by Tenant under this Paragraph
4.04(a) shall (i) be primary and non-contributing; (ii) contain cross-liability
endorsements; and (iii) insure Landlord against Tenant’s performance under
Section 5.05, if the matters giving rise to the indemnity under Section 5.05
result from the negligence of Tenant. The amount and coverage of such
insurance shall not limit Tenant’s liability nor relieve Tenant of any other
obligation under this Lease. Landlord may also obtain comprehensive public
liability insurance in an amount and with coverage determined by Landlord
insuring Landlord against liability arising out of ownership, operation, use or
occupancy of the Property. The policy obtained by Landlord shall not be
contributory and shall not provide primary insurance.

          (b) Property and Rental Income Insurance. During the Lease Term, Tenant
shall maintain policies of insurance covering loss of or damage to the Property
in the full amount of its replacement value and shall name Landlord as
additional insured thereon. Such policy shall also name Landlord’s mortgage
lender as additional insured, mortgagee and loss payee thereon. The parties
hereto agree that casualty proceeds shall be paid to the mortgage lender or if
there is not a mortgage lender, to a third party administrator mutually agreed
upon by Landlord and Tenant, for disbursement. Such policy shall contain an
Inflation Guard Endorsement and shall provide protection against all perils
included within the classification of fire, extended coverage, vandalism,
malicious mischief, special extended perils (all risk), sprinkler leakage and
any other perils which Landlord deems reasonably necessary. Landlord shall
have the right to cause Tenant to obtain flood, terrorism and earthquake
insurance if required by any lender holding a security interest in the
Property. Landlord shall not obtain insurance for Tenant’s fixtures or
equipment or building improvements installed by Tenant on the Property. During
the Lease Term, Tenant shall also maintain a rental income insurance policy,
with loss payable to Landlord, in an amount equal to one year’s Base Rent or
Option Rent, as the case may be, plus estimated real property taxes and
insurance premiums. Tenant shall be liable for the payment of any deductible
amount under Landlord’s or Tenant’s insurance policies maintained pursuant to
this Section 4.04, in an amount not to exceed Ten Thousand Dollars ($10,000).
Tenant shall not do or permit anything to be done which invalidates any such
insurance policies.

          (c) Payment of Premiums. Subject to Section 4.07, Tenant shall pay all
premiums for the insurance policies described in Paragraphs 4.04(a) and (b)
(whether obtained by Landlord or Tenant) within fifteen (15) days after
Tenant’s receipt of a copy of the premium statement or other evidence of the
amount due, except Landlord shall pay all premiums for non-primary
comprehensive public liability insurance which Landlord elects to obtain as
provided in Paragraph 4.04(a). If the Lease Term expires before the expiration
of an insurance policy maintained by Landlord, Tenant shall be liable for
Tenant’s prorated share of the insurance

6

 

premiums. Tenant shall deliver to Landlord a copy of any policy of
insurance which Tenant is required to maintain under this Section 4.04. At
least thirty (30) days prior to the expiration of any such policy, Tenant shall
deliver to Landlord a renewal of such policy. As an alternative to providing a
policy of insurance, Tenant shall have the right to provide Landlord a
certificate of insurance in form and substance and with endorsements
satisfactory to Landlord and its mortgage lender, executed by an authorized
officer of the insurance company, showing that the insurance which Tenant is
required to maintain under this Section 4.04 is in full force and effect and
containing such other information which Landlord or its mortgage lender
reasonably requires.

          (d) General Insurance Provisions.

               (i) Any insurance which Tenant is required to maintain under this Lease
shall include a provision which requires the insurance carrier to give the
Landlord and its mortgage lender not less than thirty (30) days’ written notice
prior to any cancellation or modification of such coverage.

               (ii) If Tenant fails to deliver any policy, certificate or renewal to the
other party required under this Lease within the prescribed time period or if
any such policy is canceled or modified during the Lease Term without the
Landlord’s consent, the Landlord may obtain such insurance, in which case
Tenant shall reimburse the Landlord for the cost of such insurance within
fifteen (15) days after receipt of a statement that indicates the cost of such
insurance.

               (iii) Tenant shall maintain all insurance required under this Lease with
companies holding a “General Policy Rating” of A-12 or better, as set forth in
the most current issue of “Best Key Rating Guide.” Landlord and Tenant
acknowledge the insurance markets are rapidly changing and that insurance in
the form and amounts described in this Section 4.04 may not be available in the
future. Tenant acknowledges that the insurance described in this Section 4.04
is for the primary benefit of Landlord. If at any time during the Lease Term,
Tenant is unable to maintain the insurance required under the Lease, Tenant
shall nevertheless maintain insurance coverage which is customary and
commercially reasonable in the insurance industry for Tenant’s type of
business, as that coverage may change from time to time, and subject to the
reasonable approval of Landlord and its mortgage lender. Landlord makes no
representation as to the adequacy of such insurance to protect Landlord’s or
Tenant’s interests. Therefore, Tenant shall obtain any such additional
property or liability insurance which Tenant deems necessary to protect
Landlord and Tenant.

               (iv) Unless prohibited under any applicable insurance policies maintained,
Landlord and Tenant each hereby waive any and all rights of recovery against
the other, or against the officers, employees, agents or representatives of the
other, for loss of or damage to its property or the property of others under
its control, if such loss or damage is covered by any insurance policy in force
(whether or not described in this Lease) at the time of such loss or damage.
Upon obtaining the required policies of insurance, Landlord and Tenant shall
give notice to the insurance carriers of this mutual waiver of subrogation.

     Section 4.05. Late Charges. Tenant’s failure to pay rent promptly may
cause Landlord to incur unanticipated costs. The exact amount of such costs
are impractical or extremely difficult to ascertain. Such costs may include,
but are not limited to, processing and accounting charges and late charges
which may be imposed on Landlord by any ground lease, mortgage or

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trust deed encumbering the Property. Therefore, if Landlord does not
receive any rent payment within ten (10) days after it becomes due, Tenant
shall pay Landlord a late charge equal to five percent (5%) of the overdue
amount. The parties agree that such late charge represents a fair and
reasonable estimate of the costs Landlord will incur by reason of such late
payment.

     Section 4.06. Interest on Past Due Obligations. Any amount owed by Tenant
to Landlord or Landlord to Tenant which is not paid when due shall bear
interest at the rate of three percent (3%) above the Prime Rate (as hereinafter
defined) (the “Default Rate”) per annum from the due date of such amount.
However, interest shall not be payable on late charges to be paid by Tenant or
Landlord under this Lease. The payment of interest on such amounts shall not
excuse or cure any default by Tenant or Landlord under this Lease. If the
interest rate specified in this Lease is higher than the rate permitted by law,
the interest rate is hereby decreased to the maximum legal interest rate
permitted by law. “Prime Rate” shall mean the interest rate per annum (based
on a year of 360 days and actual days elapsed) announced from time to time by
National City Bank of Pennsylvania at its office in Pittsburgh, Pennsylvania as
its then prime rate, such interest rate to change automatically from time to
time effective as of the effective date of each change in such Prime Rate. In
the event the recited rate is unavailable for any reason, then the rate
published as such in the Wall Street Journal shall apply.

     Section 4.07. Impounds for Insurance Premiums and Real Property Taxes. If
Tenant is more than ten (10) days late in the payment of rent more than three
times in any consecutive twelve (12) -month period, Tenant shall pay Landlord a
sum equal to one-twelfth (1/12) of the annual real property taxes and insurance
premiums payable by Tenant under this Lease, together with each payment of Base
Rent. Landlord or Landlord’s mortgage lender shall hold such payments in a
non-interest bearing impound account. If unknown, Landlord shall reasonably
estimate the amount of real property taxes and insurance premiums when due.
Tenant shall pay any deficiency of funds in the impound account to Landlord
upon written request. If Tenant defaults under this Lease, Landlord may apply
any funds in the impound account to any obligation then due under this Lease.

ARTICLE FIVE: USE OF PROPERTY

     Section 5.01. Permitted Uses. Tenant may use the Property only for the
Permitted Uses set forth in Section 1.06 above.

     Section 5.02. Manner of Use. Tenant shall not cause or permit the
Property to be used in any way which constitutes a violation of any law,
ordinance, or governmental regulation or order, which annoys or interferes with
the rights of other tenants of Landlord, or which constitutes a nuisance or
waste. Tenant shall obtain and pay for all permits, including a Certificate of
Occupancy, required for Tenant’s occupancy of the Property and shall promptly
take all actions necessary to comply with all applicable statutes, ordinances,
rules, regulations, orders and requirements regulating the use by Tenant of the
Property, including the Occupational Safety and Health Act.

     Section 5.03. Hazardous Materials. As used in this Lease, the term
“Hazardous Material” means any flammable items, explosives, radioactive
materials, hazardous or toxic substances, material or waste or related
materials, including any substances defined as or

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included in the definition of “hazardous substances,” “hazardous wastes,”
“hazardous materials” or “toxic substances” now or subsequently regulated under
any applicable federal, state or local laws or regulations, including without
limitation petroleum-based products, paints, solvents, lead, cyanide, DDT,
printing inks, acids, pesticides, ammonia compounds and other chemical
products, asbestos, PCBs and similar compounds, and including any different
products and materials which are subsequently found to have adverse effects on
the environment or the health and safety of persons. Tenant shall not cause or
permit any Hazardous Material to be generated, released, produced, brought
upon, used, stored, treated or disposed of in or about the Property by Tenant,
its agents, employees, contractors, sublessees or invitees without the prior
written consent of Landlord. Landlord shall be entitled to take into account
such other factors or facts as Landlord may reasonably determine to be relevant
in determining whether to grant or withhold consent to Tenant’s proposed
activity with respect to Hazardous Material. In no event, however, shall
Landlord be required to consent to the installation or use of any storage tanks
on the Property. Tenant has conducted its own investigation including, without
limitation, its review of that certain Phase I Environmental Site Assessment
prepared for Westmoreland County Industrial Development Corporation by H.F.
Lenz Company dated August 3, 2000 and that certain Report of Geotechnical
Investigation prepared by Triad Engineering, Inc., dated January 6, 2004 of the
Expansion Real Property and Tenant accepts the Expansion Real Property as is
and shall be responsible at its sole expense, for remediating all Hazardous
Material in accordance with applicable laws. This provision shall survive the
expiration or earlier termination of the Lease.

     See Hazardous Materials Rider which is incorporated herein by reference in
this Section 5.03 and to the extent inconsistent with any terms contained
herein the Rider shall control.

     Section 5.04. Signs and Auctions. Tenant shall not place any signs on the
Property without Landlord’s prior written consent. Landlord’s consent will not
be unreasonably withheld. Tenant shall not conduct or permit any auctions or
sheriff’s sales at the Property.

     Section 5.05. Indemnity. Tenant shall indemnify Landlord against and hold
Landlord harmless from any and all costs, claims or liability arising from:
(a) Tenant’s use of the Property; (b) the conduct of Tenant’s business or
anything else done or permitted by Tenant to be done in or about the Property,
including any contamination of the Property or any other property resulting
from the presence, release or use of Hazardous Material caused or permitted by
Tenant; (c) any breach or default in the performance of Tenant’s obligations
under (i) this Lease, (ii) any other agreement with Landlord, or (iii) any
other agreement related to the Property; (d) any misrepresentation or breach of
warranty by Tenant under (i) this Lease, or (ii) any other agreement with
Landlord; or (e) other acts or omissions of Tenant in contravention of (i) this
Lease, (ii) any other agreement with Landlord, or (iii) any other agreement
Tenant has entered into related to the Property. Tenant shall defend Landlord
against any such cost, claim or liability at Tenant’s expense. As a material
part of the consideration to Landlord, Tenant assumes all risk of damage to
property or injury to persons in or about the Property arising from any cause,
and Tenant hereby waives all claims in respect thereof against Landlord, except
for any claim arising out of Landlord’s gross negligence or willful misconduct.
As used in this Section, the term “Tenant” shall include Tenant’s employees,
agents, contractors and invitees, if

9

 

applicable. Landlord shall indemnify Tenant for damage arising from acts
done, or failure to act where required by Landlord, where such act or failure
to act constitutes the gross negligence or willful misconduct of Landlord, and
for all costs and expenses incurred by Tenant in connection therewith.

     Section 5.06. Landlord’s Access. Landlord or its agents may enter the
Property, subject to reasonable notice and provided such access does not
interfere with Tenant’s operations, at all reasonable times to show the
Property to potential buyers, lenders, investors or tenants or other parties;
to do any other act or to inspect and conduct tests in order to monitor
Tenant’s compliance with all applicable environmental laws and all laws
governing the presence and use of Hazardous Material; or for any other purpose
Landlord deems necessary. Landlord shall give Tenant prior notice of such
entry, except in the case of an emergency. Landlord may place customary
“Building For Sale” signs on the Property, at any time. If Tenant is in
default under this Lease or if Tenant has not elected in writing to renew the
Lease within 12 months of last day of the initial Lease term, or any succeeding
Option Term (as hereinafter defined) Landlord may place “Building For Lease”
signs on the Property. Such signage shall not interfere with Tenant’s existing
signage or Tenant’s operations on the Property.

     Section 5.07. Quiet Possession. If Tenant pays the rent and complies with
all other terms of this Lease, Tenant may occupy and enjoy the Property for the
full Lease Term, subject to the provisions of this Lease.

ARTICLE SIX: CONDITION OF PROPERTY; MAINTENANCE, REPAIRS AND ALTERATIONS

     Section 6.01. Existing Conditions. Tenant confirms its acceptance of the
Original Property and accepts the Property in its condition as of the Expansion
Start Date, subject to all recorded matters, laws, ordinances, governmental
regulations and orders and all matters shown on that certain Title Commitment
#L505377LD procured by Tenant from Lawyers Title Insurance Corporation,
including, without limitation, all oil and gas leases, or any reservation of
rights of any third party of any oil, gas or minerals. Tenant acknowledges
that neither Landlord nor any agent of Landlord has made any representation as
to the condition of the Property or the suitability of the Property for
Tenant’s intended use. As of the Expansion Start Date, Tenant represents and
warrants that Tenant has made its own inspection of and inquiry regarding the
condition of the Property and is not relying on any representations of Landlord
or any Broker with respect thereto.

     Section 6.02. Exemption of Landlord from Liability. Landlord shall not be
liable for any damage or injury to the person, business (or any loss of income
therefrom), goods, wares, merchandise or other property of Tenant, Tenant’s
employees, invitees, customers or any other person in or about the Property,
whether such damage or injury is caused by or results from: (a) fire, steam,
electricity, water, gas or rain; (b) the breakage, leakage, obstruction or
other defects of pipes, sprinklers, wires, appliances, plumbing, air
conditioning or lighting fixtures or any other cause; (c) conditions arising in
or about the Property or from other sources or places; or (d) any act or
omission of any other tenant of Landlord. Landlord shall not be liable for any
such damage or injury even though the cause of or the means of repairing such
damage or injury

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are not accessible to Tenant. The provisions of this Section 6.02 shall
not, however, exempt Landlord from liability for Landlord’s gross negligence or
willful misconduct

     Section 6.03. Landlord’s Obligations. Subject to the provisions of
Article Seven (Damage or Destruction) and Article Eight (Condemnation),
Landlord shall have absolutely no responsibility to repair, maintain or replace
any portion of the Property at any time. Tenant waives the benefit of any
present or future law which might give Tenant the right to repair the Property
at Landlord’s expense or to terminate the Lease due to the condition of the
Property.

     Section 6.04. Tenant’s Obligations.

          (a) Except as provided in Article Seven (Damage or Destruction) and
Article Eight (Condemnation), Tenant shall be responsible for and shall keep
all portions of the Property (including structural, nonstructural, interior,
exterior, and landscaped areas, roadways, portions, systems and equipment) in
good order, condition and repair (including interior repainting and
refinishing, as needed). If any portion of the Property or any system or
equipment in the Property which Tenant is obligated to repair cannot be fully
repaired or restored, Tenant shall promptly replace such portion of the
Property or system or equipment in the Property, regardless of whether the
benefit of such replacement extends beyond the Lease Term; but if the benefit
or useful life of such replacement extends beyond the Lease Term (as such term
may be extended by exercise of any options), the useful life of such
replacement shall be prorated over the remaining portion of the Lease Term (as
extended), and Tenant shall be liable only for that portion of the cost which
is applicable to the Lease Term (as extended). Tenant shall maintain a
preventive maintenance contract providing for the regular inspection and
maintenance of the heating and air conditioning system by a licensed heating
and air conditioning contractor. If any part of the Property is damaged by any
act or omission of Tenant, Tenant shall pay Landlord the cost of repairing or
replacing such damaged property, whether or not Landlord would otherwise be
obligated to pay the cost of maintaining or repairing such property. It is the
intention of Landlord and Tenant that at all times Tenant shall maintain the
portions of the Property which Tenant is obligated to maintain in an
attractive, first-class and fully operative condition.

          (b) Tenant shall fulfill all of Tenant’s obligations under this Section
6.04 at Tenant’s sole expense. If Tenant fails to maintain, repair or replace
the Property as required by this Section 6.04, Landlord may, upon ten (10)
days’ prior notice to Tenant (except that no notice shall be required in the
case of an emergency), enter the Property and perform such maintenance or
repair (including replacement, as needed) on behalf of Tenant. In such case,
Tenant shall reimburse Landlord for all costs incurred in performing such
maintenance or repair immediately upon demand.

     Section 6.05. Alterations, Additions, and Improvements.

          (a) Tenant shall not make any alterations, additions, or improvements to
the Property without Landlord’s prior written consent which shall not be
unreasonably withheld, delayed or conditioned, except for non-structural
alterations which do not exceed Two Hundred Fifty Thousand Dollars ($250,000)
in cost cumulatively over the Lease Term and which are not visible from the
outside of any building of which the Property is part. Landlord may require
Tenant to provide demolition and/or lien and completion bonds in form and
amount satisfactory

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to Landlord for work which exceeds $250,000. Tenant shall promptly remove
any alterations, additions, or improvements constructed in violation of this
Paragraph 6.05(a) upon Landlord’s written request. All alterations, additions,
and improvements shall be done in a good and workmanlike manner, in conformity
with all applicable laws and regulations, and by a contractor approved by
Landlord. Upon completion of any such work, including, without limitation, the
construction of the Expansion Facility, Tenant shall provide Landlord with “as
built” plans, copies of all construction contracts, and proof of payment for
all labor and materials.

     (b) Tenant shall pay when due all claims for labor and material furnished
to the Property. Tenant shall give Landlord at least twenty (20) days’ prior
written notice of the commencement of any work on the Property, regardless of
whether Landlord’s consent to such work is required. Landlord may elect to
record and post notices of non-responsibility on the Property.

     Section 6.06. Condition upon Termination. Upon the termination of the
Lease, Tenant shall surrender the Property to Landlord, broom clean and in the
same condition as received except for ordinary wear and tear which Tenant was
not otherwise obligated to remedy under any provision of this Lease. However,
Tenant shall not be obligated to repair any damage which Landlord is required
to repair under Article Seven (Damage or Destruction). Landlord may require
Tenant to remove any alterations (except those shown on the Plans and
Specifications (as hereinafter defined) prior to the expiration of the Lease
and restore the Property to its prior condition, all at Tenant’s expense. All
alterations, additions and improvements shall become Landlord’s property and
shall be surrendered to Landlord upon the expiration or earlier termination of
the Lease, except that Tenant may remove any of Tenant’s machinery or equipment
which can be removed without material damage to the Property. Tenant shall
repair, at Tenant’s expense, any damage to the Property caused by the removal
of any such machinery or equipment. In no event, however, shall Tenant remove
any of the following materials or equipment (which shall be deemed Landlord’s
property) without Landlord’s prior written consent: any power wiring or power
panels; lighting or lighting fixtures; wall coverings; drapes, blinds or other
window coverings; carpets or other floor coverings; heaters, air conditioners
or any other heating or air conditioning equipment; fencing or security gates;
or other similar building operating equipment and decorations. Tenant may
remove its personal property and trade fixtures which are Tenant’s property
including but not limited to conveyors, cranes, stacking and shelving systems
and the items not affixed to the Property. Tenant shall repair, at Tenant’s
expense, any damage to the Property caused by the removal of any such items.

ARTICLE SEVEN: DAMAGE OR DESTRUCTION

     Section 7.01. Partial Damage to Property.

          (a) Tenant shall notify Landlord in writing immediately upon the
occurrence of any damage to the Property. If the Property is only partially
damaged (i.e., less than fifty percent (50%) of the Property is untenantable as
a result of such damage or less than fifty percent (50%) of Tenant’s operations
are materially impaired) and if the proceeds actually received by Landlord from
the insurance policies described in Paragraph 4.04(b) are sufficient to pay for
the necessary repairs, this Lease shall remain in effect and Landlord shall
repair the damage within nine

12

 

(9) months. Landlord may elect (but is not required) to repair any damage
to Tenant’s fixtures, equipment, or improvements.

          (b) If the insurance proceeds actually received by Landlord are not
sufficient to pay the entire cost of repair, or if the cause of the damage is
not covered by the insurance policies maintained under Paragraph 4.04(b)
Landlord may elect either to (i) repair the damage within nine (9) months, in
which case this Lease shall remain in full force and effect, or (ii) terminate
this Lease as of the date the damage occurred. Landlord shall notify Tenant
within thirty (30) days after receipt of notice of the occurrence of the damage
whether Landlord elects to repair the damage or terminate the Lease. If
Landlord elects to repair the damage, Tenant shall pay Landlord the “deductible
amount” (if any) under the insurance policies and, if the damage was due to an
act or omission of Tenant, or Tenant’s employees, agents, contractors or
invitees, the difference between the actual cost of repair and any insurance
proceeds received by Landlord. If Landlord elects to terminate this Lease,
Tenant may elect to continue this Lease in full force and effect, in which case
Tenant shall repair any damage to the Property and any building in which the
Property is located. Tenant shall pay the cost of such repairs, except that
upon satisfactory completion of such repairs, Landlord shall deliver to Tenant
any insurance proceeds received by Landlord for the damage repaired by Tenant.
Tenant shall give Landlord written notice of such election within ten (10) days
after receiving Landlord’s termination notice.

          (c) If the damage to the Property occurs during the last six (6) months of
the Lease Term and such damage will require more than thirty (30) days to
repair, either Landlord or Tenant may elect to terminate this Lease as of the
date the damage occurred, regardless of the sufficiency of any insurance
proceeds. The party electing to terminate this Lease shall give written
notification to the other party of such election within thirty (30) days after
Tenant’s notice to Landlord of the occurrence of the damage.

     Section 7.02. Substantial or Total Destruction. If the Property is
substantially or totally destroyed by any cause whatsoever (i.e., the damage to
the Property is greater than partial damage as described in Section 7.01), and
regardless of whether Landlord receives any insurance proceeds, this Lease
shall terminate as of the date the destruction occurred. Notwithstanding the
preceding sentence, if the Property can be rebuilt within twelve (12) months
after the date of destruction, Tenant may elect to rebuild the Property with
the insurance proceeds which shall be assigned to Tenant, but such proceeds may
be held by Landlord or mortgage lender and paid to Tenant as the work
progresses, in which case this Lease shall remain in full force and effect.
Tenant shall notify Landlord of such election within thirty (30) days after
Tenant’s notice of the occurrence of total or substantial destruction. If
Landlord so elects except for the last three (3) years of the Lease term (as
may have been extended), Landlord shall rebuild the Property at Landlord’s sole
expense, except that if the destruction was caused by an act or omission of
Tenant, Tenant shall pay Landlord the difference between the actual cost of
rebuilding and any insurance proceeds received by Landlord.

     Section 7.03. Temporary Reduction of Rent. If the Property is destroyed
or damaged and Landlord or Tenant repairs or restores the Property pursuant to
the provisions of this Article Seven, any rent payable during the period of
such damage, repair and/or restoration shall be reduced according to the
degree, if any, to which Tenant’s use of the Property is impaired. Except for
such possible reduction in Base Rent, insurance premiums and real property
taxes,

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Tenant shall not be entitled to any compensation, reduction, or
reimbursement from Landlord as a result of any damage, destruction, repair, or
restoration of or to the Property, unless such damage was caused by the gross
negligence or willful misconduct of Landlord, its agents, servants or
employees.

     Section 7.04. Waiver. Tenant waives the protection of any statute, code
or judicial decision which grants a tenant the right to terminate a lease in
the event of the substantial or total destruction of the leased property.
Tenant agrees that the provisions of Section 7.02 above shall govern the rights
and obligations of Landlord and Tenant in the event of any substantial or total
destruction to the Property.

ARTICLE EIGHT: CONDEMNATION

If all or any portion of the Property is taken under the power of eminent
domain or sold under the threat of that power (all of which are called
“Condemnation”), this Lease shall terminate as to the part taken or sold on the
date the condemning authority takes title or possession, whichever occurs
first. If more than twenty percent (20%) of the floor area of the building in
which the Property is located, or which is located on the Property, is taken,
either Landlord or Tenant may terminate this Lease as of the date the
condemning authority takes title or possession, by delivering written notice to
the other within ten (10) days after receipt of written notice of such taking
(or in the absence of such notice, within ten (10) days after the condemning
authority takes title or possession). If neither Landlord nor Tenant
terminates this Lease, this Lease shall remain in effect as to the portion of
the Property not taken, except that the Base Rent, or the Option Rent, as the
case may be, and Additional Rent shall be reduced in proportion to the
reduction in the floor area of the Property. Any Condemnation award or payment
shall be distributed in the following order: (a) first, to any ground lessor,
mortgagee or beneficiary under a deed of trust encumbering the Property, the
amount of its interest in the Property; (b) second, to Tenant, only the amount
of any award specifically designated for loss of or damage to Tenant’s trade
fixtures or removable personal property; and (c) third, to Landlord, the
remainder of such award, whether as compensation for reduction in the value of
the leasehold, the taking of the fee, or otherwise. If this Lease is not
terminated, Landlord shall repair any damage to the Property caused by the
Condemnation, except that Landlord shall not be obligated to repair any damage
for which Tenant has been reimbursed by the condemning authority. If the
severance damages received by Landlord are not sufficient to pay for such
repair, Landlord shall have the right to either terminate this Lease or make
such repair at Landlord’s expense. In the alternative, Tenant may make up the
deficiency in such reimbursement to make the repairs and offset the rent by
amortizing the cost (including an interest factor of eight percent (8%) per
annum to account for the time value of the capital outlay) over the remaining
term of the Lease in equal monthly amounts and the Lease shall continue in
effect.

ARTICLE NINE: ASSIGNMENT AND SUBLETTING

     Section 9.01. Landlord’s Consent Required. No portion of the Property or
of Tenant’s interest in this Lease may be acquired by any other person or
entity, whether by sale, assignment, mortgage, sublease, transfer, or act of
tenant, without Landlord’s prior written consent, except as provided in Section
9.02 below. Landlord has the right to grant or withhold its consent as
provided in Section 9.04 below. Any attempted transfer without consent shall
be void and shall

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constitute a non-curable breach of this Lease. If Tenant is a
partnership, any cumulative transfer of more than twenty percent (20%) of the
partnership interests shall require Landlord’s consent. As long as Tenant is
not subject to reporting requirements to the Securities Exchange Act of 1934
(the “Act”), any change in the ownership of a controlling interest of the
voting stock of the corporation shall require Landlord’s consent which shall
not be unreasonably withheld, but may be conditioned upon the provisions of
Section 9.05 hereof. In the event that Tenant becomes subject to the reporting
requirements of the Act, the preceding sentence will no longer become
applicable and Tenant’s undertaking an initial public offering and becoming
subject to the Act will not constitute an assignment or otherwise require
Landlord’s consent.

     Section 9.02. Tenant Affiliate. Tenant may assign this Lease or sublease
the Property, without Landlord’s consent, to any corporation or limited
liability company which controls, is controlled by or is under common control
with Tenant (in which case Tenant shall remain liable for all obligations under
the Lease), or to any corporation or limited liability company resulting from
the merger of or consolidation with Tenant (“Tenant’s Affiliate”). In such
case, any Tenant’s Affiliate shall assume in writing all of Tenant’s
obligations under this Lease.

     Section 9.03. Offer to Terminate. If Tenant desires to assign the Lease
or sublease the Property, Tenant shall have the right to offer, in writing, to
terminate the Lease as of a date specified in the offer. If Landlord elects in
writing to accept the offer to terminate within twenty (20) days after notice
of the offer, the Lease shall terminate as of the date specified and all the
terms and provisions of the Lease governing termination shall apply. If
Landlord does not so elect, the Lease shall continue in effect until otherwise
terminated and the provisions of Section 9.04 with respect to any proposed
transfer shall continue to apply.

     Section 9.04. Landlord’s Consent.

          (a) Tenant’s request for consent to any transfer described in Section 9.01
shall set forth in writing the details of the proposed transfer, including the
name, business and financial condition of the prospective transferee, financial
details of the proposed transfer (e.g., the term of and the rent and security
deposit payable under any proposed assignment or sublease), and any other
information Landlord deems relevant. Landlord shall have the right to withhold
consent, if reasonable, or to grant consent, based on the following factors:
(i) the business of the proposed assignee or subtenant and the proposed use of
the Property, (ii) the net worth and financial reputation of the proposed
assignee or subtenant; (iii) Tenant’s compliance with all of its obligations
under the Lease; and (iv) such other factors as Landlord may reasonably deem
relevant. If Landlord objects to a proposed assignment solely because of the
net worth and or financial reputation of the proposed assignee, Tenant may
nonetheless sublease (but not assign), all or a portion of the Property to the
proposed transferee, but only on the other terms of the proposed transfer.

          (b) If Tenant assigns or subleases, the following shall apply:

               (i) Tenant shall pay to Landlord as Additional Rent under the Lease the
Landlord’s Share (stated in Section 1.13) of the Profit (defined below) on such
transaction as and when received by Tenant, unless Landlord gives written
notice to Tenant and the assignee or subtenant that Landlord’s Share shall be
paid by the assignee or subtenant to Landlord directly. The “Profit”

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means (A) all amounts paid to Tenant for such assignment or sublease,
including “key” money, monthly rent in excess of the monthly rent payable under
the Lease, and all fees and other consideration paid for the assignment or
sublease, including fees under any collateral agreements, less (B) costs and
expenses directly incurred by Tenant in connection with the execution and
performance of such assignment or sublease for real estate broker’s commissions
and costs of renovation or construction of tenant improvements required under
such assignment or sublease. Tenant is entitled to recover such costs and
expenses before Tenant is obligated to pay the Landlord’s Share to Landlord.
The Profit in the case of a sublease of less than all the Property is the rent
allocable to the subleased space as a percentage on a square footage basis.

               (ii) Tenant shall provide Landlord a written statement certifying all
amounts to be paid from any assignment or sublease of the Property within
thirty (30) days after the transaction documentation is signed, and Landlord
may inspect Tenant’s books and records to verify the accuracy of such
statement. On written request, Tenant shall promptly furnish to Landlord
copies of all the transaction documentation, all of which shall be certified by
Tenant to be complete, true and correct. Landlord’s receipt of Landlord’s
Share shall not be a consent to any further assignment or subletting. The
breach of Tenant’s obligation under this Paragraph 9.05(b) shall be a material
default of the Lease.

     Section 9.05. No Merger. No merger shall result from Tenant’s sublease of
the Property under this Article Nine, Tenant’s surrender of this Lease or the
termination of this Lease in any other manner. In any such event, Landlord may
terminate any or all subtenancies or succeed to the interest of Tenant as
sublandlord under any or all subtenancies.

ARTICLE TEN: DEFAULTS; REMEDIES

     Section 10.01. Covenants and Conditions. Tenant’s performance of each of
Tenant’s obligations under this Lease is a condition as well as a covenant.
Tenant’s right to continue in possession of the Property is conditioned upon
such performance. Time is of the essence in the performance of all covenants
and conditions.

     Section 10.02. Defaults. Tenant shall be in material default under this
Lease:

          (a) If Tenant abandons the Property or if Tenant’s vacation of the
Property results in the cancellation of any insurance described in Section
4.04;

          (b) If Tenant fails to pay rent or any other charge when due, including,
without limitation, any obligation of Tenant to Landlord under the Financing
Indemnification Letter (as hereinafter defined);

          (c) If Tenant fails to perform any of Tenant’s non-monetary obligations
under this Lease for a period of thirty (30) days after written notice from
Landlord; provided that if more than thirty (30) days are required to complete
such performance, Tenant shall not be in default if Tenant commences such
performance within the thirty (30) -day period and thereafter diligently
pursues its completion. However, Landlord shall not be required to give such
notice if Tenant’s failure to perform constitutes a non-curable breach of this
Lease. The notice required

16

 

by this Paragraph is intended to satisfy any and all notice requirements
imposed by law on Landlord and is not in addition to any such requirement.

          (d) (i) If Tenant makes a general assignment or general arrangement for
the benefit of creditors; (ii) if a petition for adjudication of bankruptcy or
for reorganization or rearrangement is filed by or against Tenant and is not
dismissed within thirty (30) days; (iii) if a trustee or receiver is appointed
to take possession of substantially all of Tenant’s assets located at the
Property or of Tenant’s interest in this Lease and possession is not restored
to Tenant within thirty (30) days; or (iv) if substantially all of Tenant’s
assets located at the Property or of Tenant’s interest in this Lease is
subjected to attachment, execution or other judicial seizure which is not
discharged within thirty (30) days. If a court of competent jurisdiction
determines that any of the acts described in this subparagraph (d) is not a
default under this Lease, and a trustee is appointed to take possession (or if
Tenant remains a debtor in possession) and such trustee or Tenant transfers
Tenant’s interest hereunder, then Landlord shall receive, as Additional Rent,
the excess, if any, of the rent (or any other consideration) paid in connection
with such assignment or sublease over the rent payable by Tenant under this
Lease.

     Section 10.03. Remedies. On the occurrence of any material default by
Tenant, Landlord may, at any time thereafter after the expiration of any
applicable cure period and after notice and demand, and without limiting
Landlord in the exercise of any right or remedy which Landlord may have:

          (a) Terminate Tenant’s right to possession of the Property by any lawful
means, in which case this Lease shall terminate and Tenant shall immediately
surrender possession of the Property to Landlord. In such event, Landlord
shall be entitled to recover from Tenant all damages incurred by Landlord by
reason of Tenant’s default, including (i) the worth at the time of the award of
the unpaid Base Rent or Option Rent, as the case may be, Additional Rent and
other charges which Landlord had earned at the time of the termination; (ii)
the worth at the time of the award of the amount by which the unpaid Base Rent
or Option Rent, as the case may be, Additional Rent and other charges which
Landlord would have earned after termination until the time of the award
exceeds the amount of such rental loss that Tenant proves Landlord could have
reasonably avoided; (iii) the worth at the time of the award of the amount by
which the unpaid Base Rent or Option Rent, as the case may be, Additional Rent
and other charges which Tenant would have paid for the balance of the Lease
term after the time of award exceeds the amount of such rental loss that Tenant
proves Landlord could have reasonably avoided; and (iv) any other amount
necessary to compensate Landlord for all the detriment proximately caused by
Tenant’s failure to perform its obligations under the Lease or which in the
ordinary course of things would be likely to result therefrom, including, but
not limited to, any costs or expenses Landlord incurs in maintaining or
preserving the Property after such default, the cost of recovering possession
of the Property, expenses of reletting, including necessary renovation or
alteration of the Property, Landlord’s reasonable attorneys’ fees incurred in
connection therewith, and any real estate commission paid or payable. As used
in subparts (i) and (ii) above the worth at the time of the award” is computed
by allowing interest on unpaid amounts at the Default Rate, or such lesser
amount as may then be the maximum lawful rate. As used in subpart (iii) above,
the “worth at the time of the award” is computed by discounting such amount at
the discount rate of the Federal Reserve Bank of Philadelphia at the time of
the award, plus one percent (1%). If Tenant

17

 

has abandoned the Property, Landlord shall have the option of (i) retaking
possession of the Property and recovering from Tenant the amount specified in
this Paragraph 10.03(a), or (ii) proceeding under Paragraph 10.03(b);

          (b) Maintain Tenant’s right to possession, in which case this Lease shall
continue in effect whether or not Tenant has abandoned the Property. In such
event, Landlord shall be entitled to enforce all of Landlord’s rights and
remedies under this Lease, including the right to recover the rent as it
becomes due;

          (c) Pursue any other remedy now or hereafter available to Landlord under
the laws or judicial decisions of the state in which the Property is located.

          (d) Landlord will use commercially reasonable efforts to mitigate its
damages in the event Tenant defaults under this Lease.

     Section 10.04. Accelerated Rent. Tenant has agreed to enter into that
certain Financing Indemnification Letter Agreement with Landlord dated on or
about the date hereof in the form attached hereto as Exhibit E (the “Financing
Indemnification Letter Agreement”) as a condition of this Amended and Restated
Industrial Real Estate Lease. In the event Tenant fails to pay any amount due
under the Financing Indemnification Letter Agreement (together with interest
thereon at the Default Rate, the “Indemnity Obligation”), the rent reserved
herein for the entire unexpired portion of the Term in the amount of the
Indemnity Obligation shall, at Landlord’s option, thereupon immediately become
due and payable. Tenant shall be obligated for such accelerated rent
regardless of which, if any, of the remedies otherwise provided in this Lease
or provided by law Landlord elects to pursue. The payment of any accelerated
rent on account of the Indemnity Obligation shall not reduce the amount of rent
due and payable under this Lease.

     Section 10.05. Automatic Termination. Notwithstanding any other term or
provision hereof to the contrary, the Lease shall terminate on the occurrence
of any act which affirms the Landlord’s intention to terminate the Lease as
provided in Section 10.03 hereof, including the filing of an unlawful detainer
action against Tenant. On such termination, Landlord’s damages for default
shall include all costs and fees, including reasonable attorneys’ fees that
Landlord incurs in connection with the filing, commencement, pursuing and or
defending of any action in any bankruptcy court or other court with respect to
the Lease; the obtaining of relief from any stay in bankruptcy restraining any
action to evict Tenant; or the pursuing of any action with respect to
Landlord’s right to possession of the Property. All such damages suffered
(apart from Base Rent and other rent payable hereunder) shall constitute
pecuniary damages which must be reimbursed to Landlord prior to assumption of
the Lease by Tenant or any successor to Tenant in any bankruptcy or other
proceeding.

     Section 10.06. Cumulative Remedies. Landlord’s exercise of any right or
remedy shall not prevent it from exercising any other right or remedy.

ARTICLE ELEVEN: PROTECTION OF LENDERS

     Section 11.01. Subordination. Landlord shall have the right to
subordinate this Lease to any ground lease, deed of trust or mortgage
encumbering the Property, any advances made on

18

 

the security thereof and any renewals, modifications, consolidations,
replacements or extensions thereof, whenever made or recorded. Tenant shall
cooperate with Landlord and any lender which is acquiring a security interest
in the Property or the Lease. Tenant shall execute such further documents and
assurances as such lender may require, provided that Tenant’s obligations under
this Lease shall not be increased in any material way (the performance of
ministerial acts shall not be deemed material), and Tenant shall not be
deprived of its rights under this Lease. Tenant’s right to quiet possession of
the Property during the Lease Term shall not be disturbed if Tenant pays the
rent and performs all of Tenant’s obligations under this Lease and is not
otherwise in default. If any ground lessor, beneficiary or mortgagee elects to
have this Lease prior to the lien of its ground lease, deed of trust or
mortgage and gives written notice thereof to Tenant, this Lease shall be deemed
prior to such ground lease, deed of trust or mortgage whether this Lease is
dated prior or subsequent to the date of said ground lease, deed of trust or
mortgage or the date of recording thereof.

     Section 11.02. Attornment. If Landlord’s interest in the Property is
acquired by any ground lessor, beneficiary under a deed of trust, mortgagee, or
purchaser at a foreclosure sale, Tenant shall attorn to the transferee of or
successor to Landlord’s interest (sometimes referred to herein as a “Successor
Landlord”) in the Property and recognize such Successor Landlord as Landlord
under this Lease. Tenant waives the protection of any statute or rule of law
which gives or purports to give Tenant any right to terminate this Lease or
surrender possession of the Property upon the transfer of Landlord’s interest.

     Section 11.03. Signing of Documents. Tenant shall sign and deliver any
commercially reasonable instrument or documents necessary or appropriate to
evidence any such attornment or subordination or agreement to do so. In
addition, such instrument shall provide, without limitation, that Tenant agrees
that (i) the Successor Landlord shall not be liable for any previous act or
omission of Landlord under this Lease, provided that Successor Landlord assumes
the obligations of Landlord set forth in this Lease; (ii) the Successor
Landlord shall not be subject to any offset, not expressly provided for or
permitted by this Lease, that shall have theretofore accrued to Tenant against
Landlord; (iii) the Successor Landlord shall not be bound by any previous
modification of this Lease, if such modification was not made in accordance
with the provisions of this Lease; and (iv) the Successor Landlord shall not be
bound by any previous prepayment of more than one month’s Base Rent or Option
Rent, as the case may be, or any Additional Rent then due, unless such
prepayment was expressly approved in writing by the Successor Landlord, or was
made as expressly provided for or permitted by this Lease. If Tenant fails to
provide so within ten (10) days after written quest, Tenant hereby makes,
constitutes and irrevocably appoints Landlord, or any transferee or successor
of Landlord, the attorney-in-fact of Tenant to execute and deliver any such
instrument or document.

     Section 11.04. Estoppel Certificates.

          (a) Upon Landlord’s written request, Tenant shall execute, acknowledge and
deliver to Landlord a written statement certifying: (i) that none of the terms
or provisions of this Lease have been changed (or if they have been changed,
stating how they have been changed); (ii) that this Lease has not been canceled
or terminated; (iii) the last date of payment of the Base Rent or Option Rent,
as the case may be, and other charges and the time period covered by such
payment; (iv) that Landlord is not in default under this Lease (or, if Landlord
is claimed to be in

19

 

default, stating why); and (v) such other representations or information
with respect to Tenant or the Lease as Landlord may reasonably request or which
any prospective purchaser or encumbrancer of the Property may require. Tenant
shall deliver such statement to Landlord within ten (10) days after Landlord’s
request. Landlord may give any such statement by Tenant to any prospective
purchaser or encumbrancer of the Property. Such purchaser or encumbrancer may
rely conclusively upon such statement as true and correct.

          (b) If Tenant does not deliver such statement to Landlord within such ten
(10) day period, Landlord, and any prospective purchaser or encumbrancer, may
conclusively presume and rely upon the following facts: (i) that the terms and
provisions of this Lease have not been changed except as otherwise represented
by Landlord; (ii) that this Lease has not been canceled or terminated except as
otherwise represented by Landlord; (iii) that not more than one month’s Base
Rent or Option Rent, as the case may be, or other charges have been paid in
advance; and (iv) that Landlord is not in default under the Lease. In such
event, Tenant shall be estopped from denying the truth of such facts.

     Section 11.05. Tenant’s Financial Condition. Within ten (10) days after
written request from Landlord, Tenant shall deliver to Landlord such financial
statements as Landlord reasonably requires to verify the net worth of Tenant or
any assignee, subtenant, or guarantor of Tenant. In addition, Tenant shall
deliver to any lender designated by Landlord any financial statements required
by such lender to facilitate the financing or refinancing of the Property.
Tenant represents and warrants to Landlord that each such financial statement
is a true and accurate statement as of the date of such statement. In the
event Tenant stock is no longer publicly traded and Tenant becomes a private
company, Landlord shall not disclose Tenant’s financial statements to any third
party without Tenant’s consent; provided, however, that Landlord shall be
permitted to disclose Tenant’s financial statements to Landlord’s counsel,
financial advisors, existing and potential advisors, investors, lenders and
potential purchasers of the Property without Tenant’s consent. Provided,
however, such financial statements need only include those prepared in the
ordinary course of Tenant’s business. In the event that Tenant becomes a
company whose shares are registered under the Securities Act of 1933, then
Tenant shall be required to provide Landlord with financial statements on forms
filed with the Securities and Exchange Commission, and Landlord may request and
receive additional financial information if there are material changes in
Tenant’s ownership and/or there is a material change in the financial status of
Tenant.

     Section 11.06. Landlord’s Waiver. Landlord and its mortgage lender
release and waive their rights in any of Tenant’s personal property or trade
fixtures, including but not limited to conveyors, cranes, shelving and stacking
systems and other personal property not affixed to the Property located on the
Property and agree to execute such commercially reasonable documents as may be
required by Tenant or its lenders ratifying such waiver, including a right to
reasonably withdraw the personal property upon default or termination.

ARTICLE TWELVE: LEGAL COSTS

     Section 12.01. Legal Proceedings. If Tenant or Landlord shall be in
breach or default under this Lease, such party (the “Defaulting Party”) shall
reimburse the other party (the “Nondefaulting Party”) upon demand for any costs
or expenses that the Nondefaulting Party

20

 

incurs in connection with any breach or default of the Defaulting Party
under this Lease, whether or not suit is commenced or judgment entered. Such
costs shall include legal fees and costs incurred for the negotiation of a
settlement, enforcement of rights or otherwise. Furthermore, if any action for
breach of or to enforce the provisions of this Lease is commenced, the court in
such action shall award to the party in whose favor a judgment is entered, a
reasonable sum as attorneys’ fees and costs. The losing party in such action
shall pay such attorneys’ fees and costs. Tenant shall also indemnify Landlord
against and hold Landlord harmless from all costs, expenses, demands and
liability Landlord may incur if Landlord becomes or is made a party to any
claim or action (a) instituted by Tenant against any third party, or by any
third party against Tenant, or by or against any person holding any interest
under or using the Property by license of or agreement with Tenant; (b) for
foreclosure of any lien for labor or material furnished to or for Tenant or
such other person; (c) otherwise arising out of or resulting from any act or
transaction of Tenant or such other person; or (d) necessary to protect
Landlord’s interest under this Lease in a bankruptcy proceeding, or other
proceeding under Title 11 of the United States Code, as amended. Tenant shall
defend Landlord against any such claim or action at Tenant’s expense with
counsel reasonably acceptable to Landlord or, at Landlord’s election, Tenant
shall reimburse Landlord for any legal fees or costs Landlord incurs in any
such claim or action.

ARTICLE THIRTEEN: MISCELLANEOUS PROVISIONS

     Section 13.01. Non-Discrimination. Tenant promises, and it is a condition
to the continuance of this Lease, that there will be no discrimination against,
or segregation of, any person or group of persons on the basis of race, color,
sex, creed, national origin or ancestry in the leasing, subleasing,
transferring, occupancy, tenure or use of the Property or any portion thereof.

     Section 13.02. Landlord’s Liability; Certain Duties.

          (a) As used in this Lease, the term “Landlord” means only the current
owner or owners of the fee title to the Property or the leasehold estate under
a ground lease of the Property at the time in question. Each Landlord is
obligated to perform the obligations of Landlord under this Lease only during
the time such Landlord owns such interest or title. Any Landlord who transfers
its title or interest is relieved of all liability with respect to the
obligations of Landlord under this Lease to be performed on or after the date
of transfer. However, each Landlord shall deliver to its transferee all funds
that Tenant previously paid if such funds have not yet been applied under the
terms of this Lease.

          (b) Tenant shall give written notice of any failure by Landlord to perform
any of its obligations under this Lease to Landlord and to any ground lessor,
mortgagee or beneficiary under any deed of trust encumbering the Property whose
name and address have been furnished to Tenant in writing. Landlord shall not
be in default under this Lease unless Landlord (or such ground lessor,
mortgagee or beneficiary) fails to cure such non-performance within thirty (30)
days after receipt of Tenant’s notice. However, if such non-performance
reasonably requires more than thirty (30) days to cure, Landlord shall not be
in default if such cure is commenced within such thirty (30) -day period and
thereafter diligently pursued to completion. Tenant shall use commercially
reasonable efforts to mitigate its damages in the event Landlord defaults under
this Lease.

21

 

          (c) Notwithstanding any term or provision herein to the contrary, the
liability of Landlord for the performance of its duties and obligations under
this Lease is limited to Landlord’s interest in the Property, and neither the
Landlord, its heirs, successors or assigns, nor its partners, shareholders,
officers or other principals shall have any personal liability under this
Lease.

     Section 13.03. Severability. A determination by a court of competent
jurisdiction that any provision of this Lease or any part thereof is illegal or
unenforceable shall not cancel or invalidate the remainder of such provision or
this Lease, which shall remain in full force and effect.

     Section 13.04. Interpretation. The captions of the Articles or Sections
of this Lease are to assist the parties in reading this Lease and are not a
part of the terms or provisions of this Lease. Whenever required by the
context of this Lease, the singular shall include the plural and the plural
shall include the singular. The masculine, feminine and neuter genders shall
each include the other. In any provision relating to the conduct, acts or
omissions of Tenant, the term “Tenant” shall include Tenant’s agents,
employees, contractors, invitees, successors or others using the Property with
Tenant’s expressed or implied permission.

     Section 13.05. Incorporation of Prior Agreements; Modifications. This
Lease is the only agreement between the parties pertaining to the lease of the
Property and no other agreements are effective. This restatement of the Lease
supercedes and replaces all prior leases, amendments and other documents
pertaining to the lease as they may exist as of the date hereof. All
amendments to this Lease shall be in writing and signed by all parties. Any
other attempted amendment shall be void.

     Section 13.06. Notices. Wherever notice is required herein by either
party, the same shall not be unreasonably withheld, conditioned or delayed.
All notices required or permitted under this Lease shall be in writing and
shall be personally delivered or sent by certified mail, return receipt
requested, postage prepaid or by receipted national overnight courier service.
Notices to Tenant shall be delivered to the address specified in Section 1.03
above, except that upon Tenant’s taking possession of the Property, the
Property shall be Tenant’s address for notice purposes. Notices to Landlord
shall be delivered to the address specified in Section 1.02 above. All notices
shall be effective upon delivery. Either party may change its notice address
upon written notice to the other party.

     Section 13.07. Waivers. All waivers must be in writing and signed by the
waiving party. Landlord’s failure to enforce any provision of this Lease or
its acceptance of rent shall not be a waiver and shall not prevent Landlord
from enforcing that provision or any other provision of this Lease in the
future. No statement on a payment check from Tenant or in a letter
accompanying a payment check shall be binding on Landlord. Landlord may, with
or without notice to Tenant, negotiate such check without being bound to the
conditions of such statement.

     Section 13.08. No Recordation. Tenant shall not record this Lease without
prior written consent from Landlord or Tenant. However, a “Short Form”
memorandum of this Lease executed by both parties shall be recorded on or after
the Restated Commencement Date. Tenant shall pay all transfer taxes and
recording fees.

22

 

     Section 13.09. Binding Effect; Choice of Law. This Lease binds any party
who legally acquires any rights or interest in this Lease from Landlord or
Tenant. However, Landlord shall have no obligation to Tenant’s successor
unless the rights or interests of Tenant’s successor are acquired in accordance
with the terms of this Lease. The laws of the state in which the Property is
located shall govern this Lease.

     Section 13.10. Corporate Authority; Partnership Authority. If Tenant is a
corporation, each person signing this Lease on behalf of Tenant represents and
warrants that he has full authority to do so and that this Lease binds the
corporation. Within thirty (30) days after this Lease is signed, Tenant shall
deliver to Landlord a certified copy of a resolution of Tenant’s Board of
Directors authorizing the execution of this Lease or other evidence of such
authority reasonably acceptable to Landlord. If Tenant is a partnership, each
person or entity signing this Lease for Tenant represents and warrants that he
or it is a general partner of the partnership, that he or it has full authority
to sign for the partnership and that this Lease binds the partnership and all
general partners of the partnership. Tenant shall give written notice to
Landlord of any general partner’s withdrawal or addition. Within thirty (30)
days after this Lease is signed, Tenant shall deliver to Landlord a copy of
Tenant’s recorded statement of partnership or certificate of limited
partnership.

     Section 13.11. Joint and Several Liability. All parties signing this
Lease as Tenant shall be jointly and severally liable for all obligations of
Tenant.

     Section 13.12. Force Majeure. If Landlord cannot perform any of its
obligations due to events beyond Landlord’s control, the time provided for
performing such obligations shall be extended by a period of time equal to the
duration of such events. Events beyond Landlord’s control include, but are not
limited to, acts of God, war, civil commotion, labor disputes, strikes, fire,
flood or other casualty, shortages of labor or material, government regulation
or restriction and weather conditions.

     Section 13.13. Execution of Lease. This Lease may be executed in
counterparts and, when all counterpart documents are executed, file
counterparts shall constitute a single binding instrument. Landlord’s delivery
of this Lease to Tenant shall not be deemed to be an offer to lease and shall
not be binding upon either party until executed and delivered by both parties.

     Section 13.14. Survival. All representations and warranties of Landlord
and Tenant shall survive the termination of this Lease.

Per Separate Agreement

     Section 13.15. No Brokers. Each party represents and warrants to the
other that it has not dealt with any agents, brokers, finders or other parties
with respect to this Lease or the Expansion Real Property.

23

 

Landlord and Tenant have signed this Lease at the place and on-the dates
specified adjacent to their signatures below and have initialed all Riders
which are attached to or incorporated by reference in this Lease.

	 	 	 	 	 
	Signed on May 3, 2004

at                                                          	 	“LANDLORD”

LIPPMAN & LIPPMAN, L.P.
	 
	 	 	 	 
	

	 	By:
	 	DONMARTIN, LLC, as its sole general partner
	 
	 	 	 	 
	

	 	By:	 	 /s/ Martin Lippman

	

	 	 	 	    Martin Lippman, Member
	 
	

	 	 	 	/s/ Martin Lippman

Martin Lippman
	 
	 	 	 	 
	

	 	 	 	/s/ Donnabeth Lippman

	

	 	 	 	Donnabeth Lippman
	 
	 	 	 	 
	 	 	“TENANT”

DICK’S SPORTING GOODS. INC.
	 
	 	 	 	 
	Signed on May 5, 2004

at                                                          
	 	By:
	 	/s/ Joseph Queri, Jr.

	 

	 	 	 	Joseph Queri, Jr.
	 	 	Its:
	 	Senior Vice President - Real Estate

24

 

RENT SCHEDULE

I. ORIGINAL LEASE FOR ORIGINAL SPACE (388,190 rsf)

	 	 	 	 	 	 	 	 	 
	Months
	 	Period
	 	Rent
	 	Rate

	1-60
	 	December 1, 1999 -	 	111,569/mo	 	 	3.45	 
	 
	 	November 30, 2004	 	1,338,828/yr	 	 	 	 
	61-120
	 	December 1, 2004	 	119,654/mo	 	 	3.70	 
	 
	 	November 30, 2009	 	1,435,848/yr	 	 	 	 
	121-180
	 	December 1, 2009	 	127,739/mo	 	 	3.95	 
	 
	 	November 30, 2014	 	1,532,868/yr	 	 	 	 
	181-240
	 	December 1, 2014	 	135,824/mo	 	 	4.20	 
	 
	 	November 30, 2019	 	1,629,888/yr	 	 	 	 

II. RENT SCHEDULE

FOR RESTATED LEASE TERM ASSUMING RESTATED COMMENCEMENT DATE OF

FEBRUARY 1, 2005

	 	 	 	 	 	 	 	 	 
	Months
	 	Period
	 	Rent
	 	Rate**

	1-60
	 	February 1, 2005*	 	212,674/mo	 	 	4.24	 
	 
	 	January 31, 2010	 	2,552,088/yr	 	 	 	 
	61-120
	 	February 1, 2010	 	225,215.66/mo	 	 	4.49	 
	 
	 	January 31, 2015	 	2,702,588/yr	 	 	 	 
	121-180
	 	February 1, 2015	 	237,757.33/mo	 	 	4.74	 
	 
	 	January 31, 2020	 	2,853,088/yr	 	 	 	 
	181-240
	 	February 1, 2020	 	250,299/mo **	 	 	4.99 	**
	(added term)
	 	January 31, 2025	 	3,003,588/yr **	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	Period
	 	Rent
	 	Rate**

	Renewal 1

	 	 	 	 	 	 
	241-300
	 	February 1, 2025	 	262,840.66/mo	 	 	5.24	 
	(60 mos.)
	 	January 31, 2030	 	3,154,088/yr	 	 	 	 
	Renewal 2

	 	 	 	 	 	 	 	 
	
301-359
	 	February 1, 2030	 	275,382.33/mo	 	 	5.49	 
	(59 mos.)
	 	December 31, 2034	 	3,304,588/yr	 	 	 	 
	Renewal 3

	 	 	 	 	 	 
	
360-420
	 	January 1, 2035	 	—	 	Fair Market Value
	 
	 	January 31, 2040	 	 	 	 	 	 

1

 

	 	 	 	 	 	 	 	 	 
	 	 	Period
	 	Rent
	 	Rate**

	Renewal 4
	 	 	 	 	 	 	 	 
	421-480
	 	February 1, 2040	 	—	 	Fair Market Value
	 
	 	January 31, 2045	 	 	 	 	 	 

	*	 	Anticipated Restated Commencement; schedule to be adjusted for actual
Restated Commencement Date
	 
	**	 	For Original Space (388,190 sf) and Expansion Space (213,920 sf) or (602,110
sf).

 Figures shown as “Rate” are rounded to nearest penny.

2

 

ADDENDUM TO LEASE

By and Between

MARTIN LIPPMAN AND DONNABETH LIPPMAN, “LANDLORD”

and

DICK’S SPORTING GOODS, INC., “TENANT”

1. The Expansion Facility

Tenant shall use its commercially reasonable efforts to complete the Expansion
Facility on the Expansion Real Property in accordance with the plans and
specifications approved by the Landlord (“Plans and Specifications”) by
February 1, 2005 and shall use its commercially reasonable efforts to
substantially complete the Expansion Facility and obtain a Certificate of
Occupancy and otherwise comply with Landlord’s mortgage lender’s conditions to
fund the credit facility described in the Financing Indemnification Letter no
later than November 30, 2004. Tenant shall commence paying rent for the
Expansion Facility on the date that it takes occupancy of the Expansion
Facility but no later than February 1, 2005, unless the Restated Commencement
Date is adjusted as otherwise set forth in this paragraph, in which case Tenant
shall commence paying rent for the Expansion Facility on such adjusted Rent
Commencement Date. The Restated Commencement Date shall be subject to the
following milestones, 1) the Lease signed by all parties by May 5, 2004, and 2)
mutual approval of Plans and Specifications for the subject facility by May 5,
2004. The Restated Commencement Date shall be adjusted for any deviations from
the milestones above for any delays caused by Landlord. The Restated
Commencement Date shall not be adjusted for any delays caused by Tenant,
including, without limitation, any failure by Tenant to complete construction
and take possession of the Expansion Facility on or before February 1, 2005.

2. Construction of the Expansion Facility

     (a) Tenant shall, at Tenant’s expense cause the lien free construction of
the Expansion Facility in accordance with the Plans and Specifications. Tenant
shall be responsible for performing any and all work required or necessary in
connection with the construction of the Expansion Facility including, without
limitation, all architectural and engineering work, surveying and site plan
work, any necessary environmental or wetland mitigation, grading, subsurface
and sitework, obtaining all necessary permits and approvals, site
investigation, construction of the pad, building and parking area and
installation of all equipment, exterior signs, special equipment and all other
items necessary for the completion of the Expansion Facility in accordance with
the Plans and Specifications (the “Tenant’s Work”). The construction of the
core and shell of the Expansion Facility shall be performed by a general
contractor pursuant to a fixed price contract satisfactory to Landlord and its
lender. The architect’s agreement and all plans and specifications for the
Expansion Facility shall be subject to the prior approval of Landlord and its
lender, and each of Landlord and its lender shall have the right to inspect the
construction of the Expansion Facility from time to time.

     (b) The undersigned agrees to reimburse and indemnify and hold harmless
the Landlord, and their heirs, agents, successors and assigns (the “Indemnified
Parties”) from and

A-1

 

against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by or asserted against the
Indemnified Parties, in any way relating to or arising out of the construction
of the Expansion Facility, the condition of the Property or any action taken or
omitted by the Tenant or any of its employees, contractors or agents. At all
times during the construction of the Expansion Facility, Tenant shall maintain
builder’s risk insurance in amounts satisfactory to Landlord and shall name
Landlord as additional insured thereon. Such policies shall otherwise comply
with the terms of Section 4.04(d) of the Lease.

          (c) Subject to the terms hereof, Landlord shall pay to Tenant an Expansion
Allowance not to exceed $11,000,000 for costs and expenses incurred by Tenant
in the development, site preparation approvals and construction (including soft
costs) of the Expansion Space as disclosed on the Budget attached as Exhibit C.
Tenant shall provide to Landlord evidence of the payment of such costs and
expenses. The Expansion Allowance is not dependent or limited by a specific
line item but is intended to be reflective of the type of costs to be incurred
so that as long as costs are incurred in the expansion and are in conformance
to the Construction Specifications as certified by the Architect or represent
arms-length third party services in the case of soft costs, they shall be
included in and given credit for the Expansion Allowance.

Provided no uncured default exists under this Lease and Tenant has complied
with all its obligations under the Financing Indemnification Letter, the
Expansion Allowance shall be paid within fifteen (15) days after the last of
all of the following to occur:

	(i)	 	Lien free completion of the Tenant’s Work;
	 
	(ii)	 	Acquisition by Tenant of a Certificate of
Occupancy for the Expansion Facility properly issued by the
governmental body having jurisdiction;
	 
	(iii)	 	Delivery of an estoppel letter in form and
substance satisfactory to Landlord’s mortgage lender stating
that this Lease is in full force and effect, no event of
default has occurred under the Lease and Tenant shall commence
paying Base Rent for the Expansion Space upon the date that it
takes occupancy of the Expansion Space, but in any event no
later than February 1, 2005 (the “Restated Commencement
Date”); and
	 
	(iv)	 	Delivery to Landlord of unconditional waivers of
lien from Tenant’s general contractor and any subcontractor or
any person performing labor and/or supplying materials in
connection with such work, showing that such persons shall
have been paid in full to date for all work performed or such
other reasonable assurances acceptable to Landlord’s mortgage
lender that the work or materials have been properly paid for.

If the Expansion Allowance is not paid within fifteen (15) days of the date
Tenant delivers all the required materials (the “Allowance Payment Date”) a
late charge of 5% of the amount not so paid shall attach and increase the
allowance. In addition, interest at the Default Rate in accordance with
Section 4.06 shall accrue from the Allowance Payment Date and be payable by

2

 

Landlord, and Tenant shall be entitled to offset its rent obligations until it
has recovered the Expansion Allowance and interest accruing thereon and the
late charge.

     3. Options To Extend.

     (a) Tenant shall not have any option or right to extend the Term except as
hereinafter provided in this Section.

     (b) Tenant shall have the right to extend the Lease Term set forth in
Article Two of the Lease for four (4) consecutive periods, the first such
period to be for four years eleven months (“First Option Term”) and the second
through fourth such periods to be for five years each, (respectively the
“Second Option Term”, “Third Option Term”, and “Fourth Option Term” and,
together with the First Option Term, each an “Option Term”) upon the same terms
and conditions set forth in the other Sections of the Lease, subject to the
fulfillment of the conditions that on or before the date which is twelve (12)
months prior to the expiration of the Initial Term or immediately preceding
Option Term, as applicable, Tenant shall have delivered a written notice to
Landlord referring to this Addendum to Lease and stating that Tenant elects to
extend the Lease pursuant hereto. Notwithstanding the foregoing, the exercise
by Tenant of the Third Option Term shall be governed by the provisions of
Section 4(b) hereof.

     (c) Should Landlord and Tenant not mutually agree to the terms of the
Third Option Term Rent, as provided in Section 4 herein, Tenant shall have the
right to terminate the Lease effective as of the expiration of the Second
Option Term by written notice to Landlord, which written notice shall be
delivered to Landlord on or before the beginning of the twelfth (12th) month
prior to the expiration of the Second Option Term.

4. Option Rent

     (a) The Option Rent for the First and Second Option Terms shall be the
Base Rent as set forth in Article Three of the Lease. The Option Rent for the
Third Option Term shall be the Fair Market Rental Value as set forth herein.

     (b) “Fair Market Rental Value” for purposes of establishing Option Rent
for the Third Option Term shall be that value determined as follows:

     (1) The term “fair market rental value” shall mean the annual amount
per rentable square foot that a willing, non-equity, non-renewal,
non-expansion new tenant would pay and a willing, landlord of similarly
situated premises would accept at arm’s length, giving appropriate
consideration to annual rental rates per rental square foot.

     (2) Eighteen (18) months prior to the expiration of the Second
Option Term, the parties will meet and attempt in good faith to establish
by agreement the fair market rental value for the Option Rent for the
Third Option Term. In the event that the parties are unable to agree
upon the fair market rental value for the Third Option Rent at least
fifteen (15) months prior to the expiration of the Second Option Term,
Tenant shall appoint an Appraiser who shall prepare an appraisal of the
fair market rent within 30 days for submission to Landlord. If Landlord
so elects, such appraisal shall become the Option Rent for the Third
Option Term. If, however, the Landlord does not so elect, it

3

 

shall appoint a second Appraiser who shall, with Tenant’s Appraiser,
select a third Appraiser within 30 days, which third Appraiser shall
deliver a fair market rent appraisal by the beginning of the twelfth
(12th) month prior to the expiration of the Second Option Term.

     (3) “Appraiser” shall mean an appraiser who shall have at least one
of these designations; Member of the Appraisers Institute, Senior Member
of the National Institute of Independent Fee Appraisers or Society of
Real Estate Appraisers, Senior Real Property Appraiser.

     (c) The parties will use all reasonable, good faith efforts to agree upon
or determine by the foregoing appraisal method the fair market rental value of
the Option Rent to be paid during such Third Option Term. In the event that
the parties do not determine the fair market value on or prior to the beginning
of the twelfth month prior to the expiration of the Second Option Term, Tenant
may provide written notice to Landlord of its intent to terminate the Lease
effective as of the last day of the Second Option Term. The time period during
which Tenant may exercise its option for the Third Option Term may be extended
an additional thirty (30) days upon mutual agreement of the parties.

     (d) In no event will the Option Rent for the Third Option Term be less
than the Base Rent in effect at the end of the Second Option Term.

     (e) The Option Rent for the Fourth Option Term shall be the Option Rent
for the Third Option Term plus an amount equal to $0.25 multiplied by the
number of square feet contained in the distribution center facility.

4. Contingencies

          (a) This Lease is contingent on the review of the title matters associated
with the property.

          (b) This Lease is contingent upon Tenant executing and delivering the
Financing Indemnity Letter and paying Tenant’s Rate Lock Payment.

5. Reports

Tenant acknowledges that Landlord is seeking financing from an institutional
lender to fund the Expansion Allowance. Tenant agrees to cooperate with
Landlord and its lender, and to deliver all materials, including, without
limitation, construction and design information, contracts, surveys, due
diligence materials, assignments and consents requested by lender in connection
with the financing of the Expansion Allowance. Tenant hereby agrees to provide
an ALTA As-built survey and geotechnical reports certified in favor of Landlord
and its mortgage lender, and to provide an owners’/lenders’ title insurance
policy for the Expansion Property at Tenant’s cost.

4

 

This Addendum is Understood and Agreed upon by:

	 	 	 	 	 
	Signed on May 3, 2004	 	“LANDLORD”

LIPPMAN & LIPPMAN, L.P.
	at                                                         
	 	 	 	 
	 
	 	 	 	 
	

	 	By:
	 	DONMARTIN, LLC, as its sole general partner
	 
	 	 	 	 
	

	 	By:	 	 /s/ Martin Lippman
	

	 	 	 	

	

	 	 	 	      Martin Lippman
	 
	 	 	 	 
	

	 	 	 	/s/ Martin Lippman
	

	 	 	 	

	

	 	 	 	Martin Lippman
	 
	 	 	 	 
	

	 	 	 	/s/ Donnabeth Lippman
	

	 	 	 	

Donnabeth Lippman
	 
	 	 	 	 
	 	 	“TENANT”

DICK’S SPORTING GOODS. INC.
	 
	 	 	 	 
	Signed
on May 5, 2004
	 	By:
	 	/s/ Joseph Queri, Jr.
	at                                                         

	 	 	 	

	 

	 	 	 	Joseph Queri, Jr.
	 

	 	Its:
	 	Senior Vice President - Real Estate

5

 

HAZARDOUS MATERIALS RIDER

Dick’s Clothing & Sporting Goods, Inc.

Tenant shall (i) not cause or permit any Hazardous Material to be brought upon,
released, kept or used in or about the Premises by Tenant, its agents,
employees, contractors or invitees, without the prior written consent of
Landlord (which consent Landlord shall not unreasonably withhold or delayed as
long as Tenant demonstrates to Landlord’s reasonable satisfaction that such
Hazardous Material is necessary or useful to Tenant’s business and will be
used, kept and stored in a manner that complies with all laws relating to any
such Hazardous Material so brought upon or used or kept in or about the
Premises). If Tenant breaches the obligations stated in the preceding
sentence, or if the presence or release of Hazardous Material on the Premises
caused or permitted by Tenant results in contamination of the Premises by
Hazardous Material or otherwise occurs for which Tenant is legally liable to
Landlord for damage resulting therefrom, then Tenant shall indemnify, defend
and hold Landlord harmless from any and all claims, judgments, damages,
penalties, fines, costs, liabilities or losses (including, without limitation,
diminution on value of the Premises, damages for the loss or restrictions on
use of rentable or usable space or of any amenity of the Premises, damages
arising from any adverse impact on marketing of the Premises, and reasonable
sums paid in settlement of claims, attorneys’ fees, consultant fees and expert
fees) which arise during or after the lease term as a result of such
contamination. The indemnification set forth herein shall run to the benefit
of any bank or other lender to which Landlord or Landlord’s successors and
assigns may grant a security interest in the Property and or assigns may grant
a security interest in the Property and or the Premises. This indemnification
of Landlord by Tenant includes, without limitation, costs incurred in
connection with any investigation of site conditions or any cleanup, remedial,
removal or restoration work required by any federal, state or local
governmental agency or political subdivision because of Hazardous Material
present in the soil or ground water on or under the Premises caused or
permitted by Tenant, its agents, employees, contractors or invitees. Without
limiting the foregoing, if the presence or release of any Hazardous Material on
the Premises caused or permitted by Tenant results in any contamination of the
Premises, Tenant shall promptly take all actions at its sole expense as are
necessary to return the Premises to the condition existing prior to the
introduction of any such Hazardous Material to the Premises; provided that
Landlord’s approval of such actions shall first be obtained, which approval
shall not be unreasonably withheld so long as such actions would not
potentially have any material adverse long-term or short-term effect on the
Premises.

Landlord represents that to the best of their knowledge, they are not aware of
the existence of any hazardous material or related environmental concerns with
respect to the Original Property. Furthermore, Landlord shall indemnify Tenant
for any breach of this representation. Tenant represents that it has
undertaken environmental investigations of the Expansion Real Property, and
Landlord makes no representation whatsoever about the Expansion Real Property.
Tenant accepts the Expansion Real Property as is and shall be responsible at
its sole expense, for remediating all Hazardous Material in accordance with
applicable laws. This provision shall survive the expiration or earlier
termination of this Lease.

As used herein, the term “Hazardous Material” means any hazardous or toxic
substance, material, or waste which is or becomes regulated by any local
governmental authority, the State

1

 

of Pennsylvania or the United States Government. The term “Hazardous Material”
includes, without limitation, any material or substance which is (i) defined as
a “hazardous waste,” “extremely hazardous waste” or “restricted hazardous
waste” under Pennsylvania Health and Safety Code.

Administrative Code, Division 4, Chapter 20; (viii) designated as a “hazardous
substance” pursuant to Section 311 of the Federal Water Pollution Control Act
(33 U.S.C. Section 1317); (ix) defined as a “hazardous waste” pursuant to
Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C.
Section 6901 et seq. (42 U.S.C. Section 6903); (x) defined as a “hazardous
substance” pursuant to Section 101 of the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. Section 9601 et seq. (42 U.S.C.
Section 9601); or (xi) or any substance requiring remediation under any
federal, state, municipal or other governmental statute, ordinance, rule,
regulation or policy.

AGREED BY:

	 	 	 	 	 
	Signed on May 5, 2004

at                                                          	 	“TENANT”

DICK’S SPORTING GOODS, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Joseph Queri, Jr.

Joseph Queri, Jr.
	

	 	Its:
	 	Senior Vice President - Real Estate
	 
	 	 	 	 
	 	 	“LANDLORD”

LIPPMAN & LIPPMAN, L.P.
	 
	 	 	 	 
	Signed on May 3, 2004

	 	 
	 	 
	at                                                          
	 	By:
	 	DONMARTIN, LLC, as its sole general partner
	 
	

	 	By:	 	 /s/ Martin Lippman

	

	 	 	 	       Martin Lippman
	 
	 	 	 	 
	

	 	 	 	/s/ Martin Lippman

Martin Lippman
	 
	 	 	 	 
	

	 	 	 	/s/ Donnabeth Lippman

	

	 	 	 	Donnabeth Lippman

2

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