Document:

EXHIBIT 10.5

                                                             Ms Maureen McKnight
                                                           #409-1730 Pendrell St
                                                             Vancouver BC Canada
                                                                         V6G 3A3
                                                               Tel: 604-681-7642

August 22, 2005

Brant Little - Advisor
C/o Apolo Gold & Energy Inc
#1209-409 Granville St
Vancouver BC Canada V6C 1T2

Re:      Beowawe Property - Nevada

Further to various meetings and discussions related to the Beowawe Property in
Nevada under option to Atna Resources Ltd of Vancouver, I wish to confirm the
following:

1.   This property is currently under option by Atna Resources Ltd who in turn
     have advised that its partner in the project, Prospector Consolidated
     Resources Inc have advised in writing that they were submitting a
     Quit-Claim Deed terminating their option to participate in the exploration
     of this property.

2.   I have previously brought to your attention the opportunity pertaining to
     the property and advised you that I would expect a finders fee should you
     complete an agreement with Atna Resources Ltd.

3.   I am advised further by you that you have entered into a Letter of Intent
     with Atna Resources Ltd wherein you can become a 55% partner by spending
     roughly $2,200,000 over a four year period. This Letter of Intent is
     subject to a 30 day testing period wherein you have the right to opt out if
     not satisfied.

4.   As agreed with Apolo - I wish to receive a total of 1,000,000 freely
     tradable common shares of Apolo Gold & Energy Inc as a finder's fee for
     this introduction. I recognize that you have yet to sign a definitive Joint
     Venture Agreement and I also recognize that you are about to file an SB-2
     statement re financing. Please include the 1,000,000 shares in your SB2,
     which I acknowledge will be cancelled should the Joint Venture Agreement
     not be executed and you terminate the Letter of Intent.

Please acknowledge the terms as outlined above.
                                                    Accepted As Presented

                                                     Apolo Gold & Energy Inc

/s/ Maureen McKnight                                 /s/ Robert Dinning
--------------------                                 ----------------------
Maureen McKnight                                     Authorized Signatory

<PAGE>Exhibit 10.1

 

LEASE
AGREEMENT

 

between

 

CENTERPOINT
INTERMODAL LLC,

an Illinois limited liability company

 

(“Lessor”)

 

and

 

WAL-MART
STORES EAST, LP,

a Delaware limited partnership

 

(“Lessee”)

 

 

TABLE OF
CONTENTS

 

	
  1.

  	
  PREMISES

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  TERM

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  RENTAL

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  LESSOR’S CONSTRUCTION

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  COMPLETION

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  ACCEPTANCE OF LESSEE’S
  BUILDING

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  USE
  OF PREMISES

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  EQUIPMENT, FIXTURES AND
  SIGNS

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  MAINTENANCE BY LESSOR

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  MAINTENANCE BY LESSEE

  	
   

  
	
   

  	
   

  	
   

  
	
  11.

  	
  CARE OF
  PREMISES; COMPLIANCE WITH LAWS

  	
   

  
	
   

  	
   

  	
   

  
	
  12.

  	
  INSURANCE; INDEMNITIES

  	
   

  
	
   

  	
   

  	
   

  
	
  13.

  	
  ACCESS
  BY LESSOR

  	
   

  
	
   

  	
   

  	
   

  
	
  14.

  	
  UTILITIES AND WASTE
  DISPOSAL

  	
   

  
	
   

  	
   

  	
   

  
	
  15.

  	
  CONDEMNATION

  	
   

  
	
   

  	
   

  	
   

  
	
  16.

  	
  DEFAULT
  CLAUSE

  	
   

  
	
   

  	
   

  	
   

  
	
  17.

  	
  ASSIGNMENT AND SUBLETTING

  	
   

  
	
   

  	
   

  	
   

  
	
  18.

  	
  MUTUAL WAIVER OF
  SUBROGATION

  	
   

  
	
   

  	
   

  	
   

  
	
  19.

  	
  CASUALTY
  LOSS

  	
   

  
	
   

  	
   

  	
   

  
	
  20.

  	
  TAXES AND OTHER IMPOSITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  21.

  	
  LESSEE’S
  FIXTURES, EQUIPMENT AND GOODS

  	
   

  
	
   

  	
   

  	
   

  
	
  22.

  	
  ALTERATIONS AND IMPROVEMENTS

  	
   

  

 

i

 

	
  23.

  	
  COVENANT OF TITLE
  AND QUIET ENJOYMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  24.

  	
  HAZARDOUS SUBSTANCES

  	
   

  
	
   

  	
   

  	
   

  
	
  25.

  	
  RIGHT
  TO MORTGAGE

  	
   

  
	
   

  	
   

  	
   

  
	
  26.

  	
  EXTENSION OR RENEWAL

  	
   

  
	
   

  	
   

  	
   

  
	
  27.

  	
  NOTICES

  	
   

  
	
   

  	
   

  	
   

  
	
  28.

  	
  SHORT
  FORM LEASE

  	
   

  
	
   

  	
   

  	
   

  
	
  29.

  	
  CONSENT

  	
   

  
	
   

  	
   

  	
   

  
	
  30.

  	
  GOVERNING LAW;
  JURISDICTION; VENUE

  	
   

  
	
   

  	
   

  	
   

  
	
  31.

  	
  NET LEASE

  	
   

  
	
   

  	
   

  	
   

  
	
  32.

  	
  GUARANTY

  	
   

  
	
   

  	
   

  	
   

  
	
  33.

  	
  LESSOR’S TRANSFER OF
  PREMISES

  	
   

  
	
   

  	
   

  	
   

  
	
  34.

  	
  OPTION TO PURCHASE

  	
   

  
	
   

  	
   

  	
   

  
	
  35.

  	
  MISCELLANEOUS

  	
   

  

 

ii

 

TABLE OF
EXHIBITS

 

	
  LEGAL DESCRIPTION

  	
  EXHIBIT “A”

  
	
  SITE PLAN

  	
  EXHIBIT “A-1”

  
	
  FIRST HALF OF BUILDING #1

  	
  EXHIBIT “A-2(a)”

  
	
  REMAINDER OF BUILDING #1

  	
  EXHIBIT “A-2(b)”

  
	
  FIRST HALF OF BUILDING #2

  	
  EXHIBIT “A-2(c)”

  
	
  REMAINDER OF BUILDING #2

  	
  EXHIBIT “A-2(d)”

  
	
  TITLE COMMITMENT

  	
  EXHIBIT “B”

  
	
  INITIAL SPECIFICATIONS

  	
  EXHIBIT “C”

  
	
  STATUS OF LESSOR’S WORK AS OF EACH POSSESSION DATE

  	
  EXHIBIT “C-1”

  
	
  ACKNOWLEDGMENT OF COMPLETION

  	
  EXHIBIT “D”

  
	
  SCHEDULE OF ENVIRONMENTAL REPORTS

  	
  EXHIBIT “E”

  
	
  PERMITTED HAZARDOUS SUBSTANCES

  	
  EXHIBIT “F”

  
	
  FORM OF SUBORDINATION, NON-DISTURBANCE AND
  ATTORNMENT AGREEMENT

  	
  EXHIBIT “G”

  
	
  FORM OF ESTOPPEL CERTIFICATE

  	
  EXHIBIT “H”

  
	
  LESSOR GUARANTY

  	
  EXHIBIT “I”

  
	
  LESSEE GUARANTY

  	
  EXHIBIT “J”

  

 

iii

 

LEASE
AGREEMENT

 

THIS
LEASE AGREEMENT (this “Lease”) is executed and made as of the 24th day
of August, 2005 (“Date of this Lease”), by and between CENTERPOINT
INTERMODAL LLC, an Illinois limited liability company (hereinafter “Lessor”),
and WAL-MART STORES EAST, LP, a Delaware limited partnership (hereinafter “Lessee”).

 

WITNESSETH:

 

1.             PREMISES.  Lessor, in consideration of the covenants and
agreements hereinafter contained, does hereby demise and lease to Lessee (i) those
certain parcels of real property (the “Land”) containing approximately
168.22 gross acres, in the aggregate, which Land is situated in Elwood, Will
County, Illinois, within the project commonly known as CenterPoint Intermodal
Center (the “Project”) and is more particularly described in Exhibit A
attached hereto and by this reference made a part hereof and depicted on the
Site Plan attached hereto as Exhibit A-1 and by this reference made
a part hereof, and (ii) all buildings, structures, driveways, parking
lots, walkways, landscaping and other appurtenances thereto and all other
improvements now existing or hereafter constructed or placed on the Land in
accordance with this Lease, at any time during the Term (as defined in Section 2),
including specifically, but without limitation, two (2) buildings to be
constructed, one of which will contain approximately one million five hundred
ninety-seven thousand two hundred eighty (1,597,280) rentable square feet (“Building #1”)
and the other of which will contain approximately one million seven hundred
sixty-seven thousand one hundred sixty-eight (1,767,168) rentable square feet (“Building #2”).  Building #1 and Building #2 are
referred to herein collectively as the “Buildings” and each as a “Building”.  The Land and the Buildings are referred to
herein collectively as the “Premises”. 
As used herein “rentable square feet” shall mean the total square
footage of each Building measured from the outside of the exterior walls of
such Building (also known as the “shell envelope” of the Building).

 

Attached
hereto as Exhibit B and by this reference incorporated herein is a
commitment for a policy of leasehold title insurance (the “Commitment”)
from Chicago Title Insurance Company (the “Title Company”) setting forth
the state of title to the Premises and all exceptions thereto, as of the date
of the Commitment.  Lessor, at its
expense, shall procure an ALTA form policy of leasehold insurance consistent
with the Commitment in an amount not less than the anticipated cost of Lessor’s
Work (as defined in Section 4) with extended coverage, and shall deliver
same to Lessee on the Delivery Date (as defined in Section 6).  Lessor shall have the right to insure or bond
over all possible and then existing mechanics’ lien claims.

 

2.             TERM.  To have and to hold the Premises for and
during the full term, commencing on the Delivery Date and ending September 30,
2021 (hereinafter sometimes referred to in this Lease as the “Term”);
provided, however, that if the Delivery Date is a day other than the first day
of a calendar month, the full term of this Lease will commence on the Delivery
Date and end on the last day of the one hundred eightieth (180th)
calendar month immediately following the month in which the Delivery Date
occurs; subject, further, to the provisions of Section 6 concerning
occupancy rights prior to the Delivery Date and the provisions of Section 26
concerning extensions or renewals hereof. 
The initial term of this Lease is sometimes referred to in this Lease as
the “Primary Term”.  Immediately
after the Term hereof

 

1

 

has been ascertained, at the request of
either party, the parties shall execute an amendment to this Lease indicating
the actual commencement and termination dates.

 

3.             RENTAL.  From and after the later of (a) the
Delivery Date or (b) September 1, 2006, Lessee shall pay to the
Lessor, on the first day of each calendar month, as base rent for the Premises,
without demand and without set-off, except as expressly provided to the
contrary in this Lease, a fixed annual rent (hereinafter the “Base Rent”)
of:  Eleven Million One Hundred
Sixty-Seven Thousand Nine Hundred Forty-Nine Dollars ($11,167,949.00) per year
payable monthly in advance in monthly installments of Nine Hundred Thirty
Thousand Six Hundred Sixty-Two and 42/100 Dollars ($930,662.42) during the
initial Term.  Lessee agrees that in the
event any payment of Rent (as defined in this Section 3) is late and is
not paid by the tenth (10th) day following receipt by Lessee of
notice from Lessor of nonpayment, a late charge equal to two percent (2%) of
the unpaid Rent shall be paid by Lessee; provided, however, if such notice is
given by Lessor to Lessee on two (2) occasions during a twelve (12) month
period, no further notice shall be required, and Lessee shall pay said late
charge to Lessor in the event the payment of Rent is not paid within five (5) days
of the date when due.  Amounts of money
payable by Lessee pursuant to this Lease, other than Base Rent, are sometimes
referred to in this Lease as “Additional Rent”.  Base Rent and Additional Rent are
collectively referred to as “Rent.” 
Rent for any fractional month of the Term shall be prorated.

 

Lessee
shall pay Rent to Lessor, at Lessor’s address set forth below, or at such other
address as Lessor may from time to time designate in writing to Lessee for the
payment of Rent.  Until further notice,
Lessor’s address for payment of Rent is as follows:

 

CenterPoint Intermodal LLC

2023 Paysphere Circle

Chicago, Illinois 60674

 

4.             LESSOR’S CONSTRUCTION.  Subject
to the terms and conditions of this Section 4, Lessor, at its sole cost
and expense, shall promptly commence to construct and perform the work
described in the initial specifications therefor listed in Exhibit C
attached hereto and made a part hereof (the “Lessor’s Work”) upon approval
of the Plans and Specifications (defined below) by Lessee and the issuance of a
building permit by the Village of Elwood, Illinois.  The final construction drawings and
specifications, are hereinafter sometimes referred to as the “Plans and
Specifications”.  Lessor shall
deliver the Plans and Specifications to Lessee in phases for Lessee’s review
and approval.  Such delivery to Lessee
shall be made to the following:

 

Van Emery

H&M Company, Inc.

50 Security Drive

Jackson, Tennessee
38305

(731) 664-6300 Office

(713) 616-5366
Mobile

(731) 668-6841 Fax

vemery@hmcompany.com

 

2

 

and

 

David Sibert

Wal-Mart Stores, Inc.

Sam Walton
Development Complex

2001 SE 10th
Street, Dept. 9562

Bentonville,
Arkansas 72712-0550

(479) 204-2494
Direct

(479) 273-1964 Fax

david.sibert@wal-mart.com

 

Lessee shall review the phases of the Plans and
Specifications that Lessee receives and, within five (5) days following
receipt of each such phase, shall provide to Lessor its written approval or its
specific detailed written objection; provided, however, Lessee may not object
to the Plans and Specifications to the extent they would change the scope of
Lessor’s Work as specified in, or the cost as contemplated by, Exhibit C
attached hereto or to the extent of any portion thereof required by applicable
law or municipal ordinance.  In the event
Lessee objects to any portion thereof, Lessor shall provide Lessee with a
revised set of Plans and Specifications within five (5) days following
delivery of Lessee’s notice of objection. 
All of Lessor’s Work shall be done in a professional, workmanlike manner
and in conformity with all applicable governmental rules, regulations, codes
and laws in all material respects. 
Lessor shall indemnify Lessee for Claims (as defined in Section 12G
below) resulting from any mechanics’ lien claims in connection with Lessor’s
Work, which indemnification obligation shall survive the termination of this
Lease in the event of Lessee’s purchase of the Premises.  After Lessor and Lessee agree upon the final
Plans and Specifications, no material changes or deviations in the Plans and
Specifications shall be made by Lessor without the prior written consent of
Lessee, which consent may be granted or withheld in Lessee’s absolute
discretion.

 

Lessee
agrees to provide Lessor with the information and documentation reasonably
requested by Lessor in writing from time to time, within five (5) business
days after receipt of Lessor’s request, in order for Lessor to cause Completion
(as defined in Section 6) of the Lessor’s Work within the time periods
required by this Lease.  Lessee
acknowledges that Lessor will not be able to cause Completion of the Lessor’s
Work to occur within the time periods required by this Lease in the event that Lessee
fails to provide all such information and documentation within said five (5) business
day period, and such failure shall be a Lessee’s Delay (as defined in Section 5).

 

During
the Term of this Lease, Lessor shall build no other buildings, structures or
improvements upon the Premises except the improvements described in Exhibit C,
nor shall Lessor erect any barriers or other obstacles on the Land that impede
the free flow of pedestrian or vehicular traffic to and from the Buildings,
without the prior written consent of Lessee, which may be withheld for any
reason.

 

3

 

Subject
to Lessor’s reasonable scheduling requirements, Lessee shall have the right to
inspect the Premises to monitor the progress of construction of the Lessor’s
Work; provided, however, that such right may not be exercised unless Lessee is
accompanied at all times during the course of said inspection by Lessor or a
representative of Lessor.

 

Lessee
shall not have the right to review the books and records of Lessor or any
contractor with respect to the cost of performing Lessor’s Work.

 

5.             COMPLETION.  It is agreed by the parties that the timely
possession of the Premises is a material inducement to Lessee’s execution of
this Lease and that the estimated date of Completion of Lessor’s Work shall be
on or before September 30, 2006 (the “Anticipated Delivery Date”);
provided that such date shall be subject to extension for a Lessee Delay and
for a Permitted Delay (as hereinafter defined).

 

Notwithstanding
the foregoing, Lessor agrees to complete the portion of the Lessor’s Work
described on Exhibit “C-1” attached hereto as to portions of each
Building (each a “Portion of a Building”) referenced below, to permit
Lessee to receive and install racking (except that while tiered racking may be
placed in the applicable portion of Building #1, no permanent racking
shall be installed in Building #1 until Completion).  Within fifteen (15) days after each Possession
Date referenced below, Lessor shall provide Lessee with a temporary or
conditional permit from the Village of Elwood allowing Lessee to accept
inventory in and ship inventory out of the applicable Portion of a Building (“Temporary
Permit”).  All of Lessee’s activity
in the Premises shall be subject to the requirements set forth below.  Each Portion of a Building shall be delivered
in accordance with the following schedule and each Possession Date shall
be extended by Permitted Delay and Lessee Delay:

 

	
  Portion of a Building

  	
   

  	
  Possession Date

  
	
   

  	
   

  	
   

  
	
  Fifty Percent (50%) of Building #1, as depicted on

  Exhibit A-2(a) (“First Half of Building #1”)

  	
   

  	
  June 1,
  2006

  
	
   

  	
   

  	
   

  
	
  Remainder of Building #1, as depicted on

  Exhibit A-2(b) (“Remainder of Building #1”)

  	
   

  	
  June 30,
  2006

  
	
   

  	
   

  	
   

  
	
  Fifty Percent (50%) of Building #2, as depicted on

  Exhibit A-2(c) (“First Half of Building #2”)

  	
   

  	
  August 1,
  2006

  
	
   

  	
   

  	
   

  
	
  Remainder of Building #2, as depicted on

  Exhibit A-2(d)  (“Remainder of Building #2”)

  	
   

  	
  August 31,
  2006

  

 

Exhibit C-1
attached hereto identifies certain portions of Lessor’s Work that will and will
not be completed as of the foregoing possession dates.

 

Lessee
shall have the right to enter a Portion of a Building from and after the time
that Lessor has completed the Lessor’s Work with respect to that Portion of a
Building for the purposes set forth above in this Section 5; provided,
however, Lessee agrees (i) any such early

 

4

 

entry by Lessee shall be
at Lessee’s sole risk, (ii) Lessee shall not interfere with Lessor or
Lessor’s contractors completing work within the Premises, (iii) Lessee,
together with its employees, agents and independent contractors, will abide by
the reasonable rules of Lessor and Lessor’s contractor, (iv) all
access shall be in such a manner as not to render the insurance on the Premises
void, (v) all such access shall be allowed only to the extent permitted by
governmental authority, and (vi) no access shall be permitted until
insurance requirements reasonably required by Lessor and consistent with the
insurance requirements set forth in Section 12 below have been satisfied
by Lessee.  Lessor acknowledges that such
access may result in damage to the base course or pavement resulting from truck
traffic and agrees that Lessor shall be solely responsible for necessary
repairs to such base course or pavement resulting from truck traffic.

 

Lessor
shall provide Lessee with not less than thirty (30) days’ written notice of the
anticipated possession date as to each Portion of a Building and Lessee shall
complete its fixturing work (including temporary racking) in Building #1
within thirty-five (35) days following delivery of possession thereof with
regard to each of the First Half of Building #1 and the Remainder of
Building #1 and shall complete its fixturing work in Building #2
within seventy (70) days following delivery of possession thereof with regard
to each of the First Half of Building #2 and the Remainder of
Building #2.

 

Lessee
shall, and does hereby agree to, indemnify, defend and hold the Lessor, its
partners, officers, directors, employees, agents, attorneys and their
respective successors and assigns, harmless from and against any and all
claims, demands, suits, obligations, payments, damages, losses, penalties,
liabilities, costs and expenses (including, but not limited to, reasonable
attorneys’ fees) arising out of Lessee or Lessee’s Group’s (as defined below)
actions taken in, on or about the Premises in the exercise of the rights
granted pursuant to this Section 5; provided, however, Lessee shall
not indemnify any such parties for their own negligence or willful acts.

 

The
Lessor shall not be considered in breach of, or in default of, the construction
obligations set forth herein in the event of actual delay in the performance of
or inability to perform such obligations due to circumstances beyond the
control of Lessor, including, without limitation, acts of God, the public
enemy, general strikes or other labor troubles (excluding strikes or labor
troubles of Lessor or Lessor’s contractors resulting from the acts of Lessor),
any delay caused by any action, inaction, order, ruling, moratorium,
regulation, statute, condition or other decision of any governmental agency
having jurisdiction over any portion of the Premises, or by delays in
inspections or in issuing approvals or permits by governmental agencies, which
were beyond the control of Lessor, fires, floods, earthquakes, epidemics, and
quarantine restrictions, and weather or other matters beyond the control of
Lessor (collectively, “Permitted Delay”); it being the purpose and
intent of this paragraph that in the event of the occurrence of any such
Permitted Delay, the time or times for performance of the obligations of Lessor
with respect to this Lease shall be extended for the period of the Permitted
Delay; provided, that Lessor shall, within two (2) days after the
beginning of any Permitted Delay, notify Lessee, in writing, and of the cause
or causes thereof, and the period of the estimated duration of the Permitted
Delay.

 

5

 

As
used herein, “Lessee Delays” means any actual delay in the Completion of
the Premises resulting from any of the following:  (1) Lessee’s failure to complete, on or
before the due date therefor, any action item which is Lessee’s responsibility
pursuant to Sections 4 or 6 of this Lease (including, without limitation,
Lessee’s failure to conduct the inspection of the Premises and/or to execute
and deliver the Acknowledgment of Completion in the form attached hereto as Exhibit D
as and when required under Section 6 below); (2) any delay in any way
whatsoever arising from Lessee’s entry of the Premises including, but not
limited to, early entry to install its racking, fixtures and equipment, as a
result of the selection of Lessee’s contractors to perform work or the
acceptance of inventory; (3) Lessee’s failure to install racking or other
fixtures or equipment within sufficient time to allow Lessor to cause
Completion of Lessor’s Work prior to the Anticipated Delivery Date; or (4) any
other act or omission of Lessee or any of Lessee’s agents, employees,
representatives, contractors, suppliers, invitees, assignees or any of their
respective successors or assigns (“Lessee’s Group”).  A Lessee Delay shall not include any delay
resulting from Lessee’s objections to the Plans and Specifications within the
time period set forth in Section 4 of this Lease and shall also not
include any delay resulting from the need to make corrections to Lessor’s Work
as determined by Lessee pursuant to its inspections.  Lessor shall provide Lessee with written
notice of the occurrence of a Lessee Delay on or before two (2) days
following the occurrence of such Lessee Delay, and provided Lessor delivers
such written notice to Lessee within such two (2) day period, the delay
caused by such Lessee Delay shall be deemed to have commenced as of the
occurrence of such Lessee Delay.  In the
event Lessor fails to provide Lessee with such written notice within such two (2) day
period, the delay caused by the Lessee Delay shall be deemed to have commenced
on the date on which Lessor delivers written notice to Lessee of the occurrence
of such Lessee Delay.

 

If
possession of any Portion of a Building is not delivered on or before the
applicable Possession Date referenced above, or if Lessor’s Work has not
reached Completion by the Anticipated Delivery Date (all such dates shall be
extended by the number of days of all Permitted Delay and Lessee Delay), this
Lease shall remain in full force and effect, and Lessee shall be paid on the
Delivery Date, as liquidated damages (“Construction Delay Credit”), an
amount equal to Ten Thousand Dollars ($10,000.00) for each day past the
Possession Date or Anticipated Completion Date, as applicable (as extended by
Permitted Delay and Lessee Delay), until possession is delivered or Completion
is reached, as applicable.  Such damages
have been determined by Lessor and Lessee to be reasonable and adequate to
compensate Lessee for Lessor’s failure to deliver possession or reach
Completion, as applicable.  In the event
that Lessor fails to make the payments referenced above on the Delivery Date,
such amounts may be deducted by Lessee from Rent thereafter due to Lessor under
this Lease.

 

In the
event possession of a Portion of a Building is not delivered by the scheduled
Possession Date or a Temporary Permit is not obtained within fifteen (15) days
thereafter, Lessor shall use its best efforts to make available to Lessee, at
no cost to Lessee, alternative storage space owned or controlled by Lessor in
the Chicago metropolitan area.

 

In the
event that Completion does not occur on or before March 1, 2007, subject
to extension of that date due to Permitted Delay and Lessee’s Delay, provided
Lessee is not in

 

6

 

default hereunder, Lessee
shall be entitled, as Lessee’s sole and exclusive remedy, to terminate this
Lease, upon written notice to Lessor on or before March 10, 2007.

 

6.             ACCEPTANCE OF LESSEE’S BUILDING.  The term “Delivery Date”, as used in
this Lease, shall mean the later to occur of (i) the Anticipated Delivery
Date, or (ii) the date upon which Lessor has accomplished Completion, as
defined below, provided that in no event shall the Delivery Date occur earlier
than February 1, 2006.

 

Lessor
shall provide monthly reports to Lessee with respect to the progress of and
anticipated date for Completion of Lessor’s Work.  Upon Completion of Lessor’s Work, Lessor
shall provide a Notice of Completion to Lessee, and shall schedule an
inspection of the Premises with Lessee, at which time a joint determination of
punchlist items shall be prepared. 
Lessee shall make itself available for such inspection within five (5) business
days after Completion of Lessor’s Work so that there is no delay in performing
such inspection.  Within five (5) business
days after the completion of the inspection of the Premises, if the work has
been so completed, Lessee and Lessor shall each execute and deliver an
Acknowledgment of Completion in the form attached hereto as Exhibit D.

 

Lessor’s
Notice of Completion shall include all of the following with respect to the
Buildings and the work performed by Lessor, to the extent that the same are
available when the Certificate of Occupancy described in L below is issued:

 

A.                            A
Copy of the Roofing Guarantee for each Building (15-year guarantee by
manufacturer on materials and labor);

 

B.                            Bills
of Lading for the structural steel, bar joists, and roof decking;

 

C.                            Soil
Density Tests;

 

D.                            Concrete
Cylinder Test Reports of all requested areas;

 

E.                             Certification
of parking lot paving specifications conformance, certified by an engineer
approved by Lessee;

 

F.                             Sprinkler
contractor’s material and test certificate;

 

G.                            Copies
of applicable warranties and Lessor’s assignment of such warranties to Lessee
on all mechanical systems encompassed within the Premises;

 

H.                            Certificates
of insurance as required herein from Lessor;

 

I.                              Copies
of final lien waivers from the general contractor and all subcontractors that
have performed Lessor’s Work.

 

J.                             An
as-built topographic survey certified by an engineer licensed in the state
where the Premises are located, prepared in accordance with the Minimum

 

7

 

Standard
Detail Requirements for ALTA/ACSM Land Title Surveys adopted in 1999 and
certified to Lessor, Lessee and the Title Company.

 

K.                            Notice
of Termination of SWPPP described in Section 11B below.

 

L.                             Copies
of a final, conditional or temporary certificate of occupancy for the Premises;
and

 

M.                           An
Acknowledgment of Completion executed by Lessor, showing completion of all of
Lessor’s Work.

 

N.                            An
AIA form G704 Certificate of Substantial Completion executed by the
architect for the Project, which shall define “Contract Documents”, as
referenced in such form, to include the Plans and Specifications.

 

To the
extent that any of items A through K are not delivered by Lessor prior to
or concurrently with Completion (as defined below), the same shall be delivered
not later than thirty (30) days thereafter.

 

“Completion”
shall be deemed to have occurred upon delivery of items L, M and N
above.  To the extent that Completion is
delayed (i) by Lessee Delay, the date of Completion will be the date
Completion would have occurred but for such Lessee Delay, or (ii) as a
result of requirements of any governmental authority not a part of the Lessor’s
Work, the date of Completion will be the date all other requirements to reach
Completion have been performed.

 

In the
event a conditional or temporary certificate of occupancy, rather than a final
certificate of occupancy, is delivered as item L above, Lessor shall
deliver a final certificate of occupancy within thirty (30) days thereafter, as
extended by Permitted Delay and Lessee Delay.

 

On or
prior to the date of Completion of the Premises, a representative of Lessor and
a representative of Lessee together shall inspect the Premises and, within
fifteen (15) days thereafter, generate a punchlist of defective or incomplete
items relating to the Lessor’s Work. 
Lessor shall, within thirty (30) days, as extended due to Permitted
Delay and/or Lessee Delay, after such punchlist is prepared and agreed upon by
Lessor and Lessee, complete such incomplete work and remedy such defective work
as are set forth on the punchlist.

 

For a
period of two (2) years following the date of Completion (the “Warranty
Period”), Lessor hereby warrants to Lessee that (i) the materials and
equipment furnished by Lessor’s contractors in the completion of the Lessor’s
Work will be of good quality and new, (ii) such materials and equipment
and the work of such contractors shall be free from defects not inherent in the
quality required or permitted hereunder, and (iii) that Lessor’s Work will
conform substantially to the Plans and Specifications (the foregoing referred
to herein as “Lessor’s Warranty”). 
This warranty shall exclude damages or defects caused by abuse by
Lessee, its employees, invitees, licensees, contractors and agents, improper or
insufficient maintenance, improper operation, or normal wear and tear under
normal usage.  After expiration of the
Warranty Period, Lessor agrees to assign to Lessee on a nonexclusive basis the
benefit of all

 

8

 

construction warranties
pertaining to the Premises to the extent that they do not relate to structural
or other portions of the Premises that Lessor is required to maintain and
repair under this Lease.  In the event of
the exercise of the Right to Purchase (as defined in Section 34), Lessor’s
Warranty shall survive, notwithstanding the termination of this Lease.

 

7.             USE OF PREMISES. 
It is anticipated that the primary use of the Premises will be for the
storage and warehousing of goods and materials intended for sale in Wal-Mart,
Sam’s Club or other stores operated by or through Lessee (“Primary Use”).  Lessor further agrees that, subject to the
provisions of this Section 7, the Premises may be used for any lawful
purpose (“Permitted Use”).  It is
expressly agreed that nothing contained in this Lease shall be construed to contain
a covenant, either express or implied, to either use or commence the operation
of a business or thereafter continuously use or operate a business in the
Premises.  Lessor recognizes and agrees
that Lessee may, at Lessee’s sole discretion and at any time during the term of
this Lease, cease the use or operation of its business in the Premises, and
Lessor hereby waives any remedies based on such cessation, including but not
limited to legal action for damages or for equitable relief which might be available
to Lessor because of such cessation of business activity by Lessee.  Notwithstanding the foregoing, Lessee’s use
of the Premises must comply with the terms of this Lease and the Permitted
Exceptions (as hereinafter defined in Section 11).

 

8.             EQUIPMENT, FIXTURES AND SIGNS.  Lessee shall have the right to erect,
install, maintain and operate on the Premises such equipment, fixtures and
signs as Lessee may deem advisable, including a rooftop satellite dish, subject
to all applicable laws, rules and regulations, the Permitted Exceptions
and the terms of this Lease.  It is
understood that any work of any kind made and done under this Section 8
shall be made and done at Lessee’s sole cost, and Lessee agrees to indemnify,
defend and hold Lessor harmless from any and all mechanics’ liens that may be
filed by reason thereof, as well as all claims, damages, costs, expenses and
other liabilities associated therewith (including reasonable attorneys’ fees
and costs).

 

9.             MAINTENANCE BY LESSOR.

 

A.                            Lessor
shall, at its own cost and expense, perform all required repairs and
replacements to the roof (including the roof membrane), foundation (beneath the
floor slab) and structural frame of the Buildings.  Lessor’s obligation shall exclude the cost of
any repair required because of the act or negligence of Lessee or Lessee’s
Group, the cost of which shall be the responsibility of Lessee.  Unless the same is caused solely by the
negligent action or inaction of Lessor, its employees or agents, or is not
covered by the insurance required to be carried by Lessee pursuant to the terms
of this Lease, Lessor shall not be liable to Lessee or to any other person for
any damage to property occasioned by failure in any utility system or by the
bursting or leaking of any vessel or pipe in or about the Premises, or for any
damage occasioned by water coming into the Premises or arising from the acts or
neglects of occupants of adjacent property or the public.  During the Warranty Period, Lessor shall make
any repair or replacement to the Premises resulting from defective materials
and/or workmanship installed by Lessor or construction by Lessor.  If Lessor, within thirty (30) days after
Lessee shall give written notice to Lessor, subject to extension of such time
period due to Permitted

 

9

 

Delay and/or
Lessee Delay, shall fail to make the repairs required of Lessor herein, Lessee
may, at its option, make the repairs, in which event the Lessor covenants to
reimburse Lessee for the reasonable cost thereof actually incurred and, except
in the case of an Emergency Repair (as described below), for one percent (1%)
of said cost for administration fees.  If
within fifteen (15) days after Lessee has given such notice to Lessor, Lessor
shall fail to reimburse Lessee for the cost of such work and, if applicable,
the administration fee, Lessee may deduct such costs from the Base Rent then or
thereafter due to Lessor under this Lease. 
The quality of all work performed by Lessee must equal or exceed the quality
of Lessor’s Work.  Such costs must be
reasonably documented and copies of such documentation must be delivered to
Lessor with the written demand for reimbursement.  Lessee shall be permitted to continue to set
off against succeeding installments of Base Rent until the total amount of such
cost actually incurred by Lessee has been recovered by Lessee.  Notwithstanding the notice requirements
described above, if the repairs should be required to avoid an imminent danger
to person or property (an “Emergency Repair”), then only such notice as
shall be appropriate or practical under the circumstances shall be required
prior to Lessee’s exercise of its right to make the repairs.

 

B.                            Lessor
further agrees to make all repairs to the Premises when such repairs are
necessitated by the negligent act or omissions of the Lessor or its employees,
contractors or agents.

 

10.          MAINTENANCE BY LESSEE.  From and after the Delivery Date and
throughout the Term, Lessee shall, at its own cost and expense, but subject to
the obligations of Lessor under the Lessor’s Warranty and under Section 9
of this Lease, maintain and make all repairs and replacements to the entire
exterior and interior of the Premises, including, without limitation, routine
maintenance of any exterior walls of the Buildings (including painting as
reasonably necessary), repair, maintenance and replacement of the interior of
the Buildings, including, but not limited to, the electrical systems, heating,
air conditioning and ventilation systems, plate glass, windows and doors,
sprinkler and plumbing systems.  Lessee’s
obligations to repair, maintain and replace the Premises shall also include,
without limitation, repair, maintenance and replacement of all plumbing and
sewage facilities within and about the Premises (including, specifically, but
without limitation, the portion of water and sewer lines between the boundary
of the Land and Buildings), fixtures, interior walls, floors, floor slab,
ceilings, windows, doors, storefronts, plate glass, skylights, all electrical
facilities and equipment including, without limitation, lighting fixtures,
lamps, fans and any exhaust equipment and systems, electrical motors, and all
other appliances and equipment of every kind and nature located in, upon or
about the Premises including, without limitation, exterior lighting and
fencing, and any sidewalks, parking areas and access ways (including, without
limitation, curbs and striping) and the landscaping and grounds surrounding the
Buildings.  All glass, both interior and
exterior, is at the sole risk of Lessee; and any broken glass shall be promptly
replaced at Lessee’s expense by glass of like kind, size and quality.  At the expiration of this Lease or any
renewal hereof, Lessee agrees to surrender promptly the Premises to Lessor in
the same condition

 

10

 

as when received, ordinary wear and tear and
destruction by fire, the elements or other unavoidable casualties excepted
(subject to Lessee’s obligations under Section 12 hereof).

 

11.          CARE OF PREMISES; COMPLIANCE WITH LAWS.

 

A.                            Lessee
agrees to keep the Premises in a neat and clean condition (ordinary wear and
tear excepted), shall refrain from permitting any nuisance or fire hazard
therein, and shall permit no unlawful or immoral practice to be carried on
within the Premises within its knowledge or consent by it or any person.  The Land was conveyed by the United States of
America, acting by and through the Deputy Assistant Secretary of the Army
(I&H) pursuant to a delegation of authority from the Secretary of the Army
(“Army”), under and pursuant to the powers and authorities contained in
the provisions of Section 2923 of the National Defense Authorization Act
For Fiscal Year 1996, Public Law No. 104 106, Division B, Title XXIX,
Subtitle B, Sections 2901 et seq., approved February 10, 1996 (“Federal
Act”) by a Quit Claim Deed of Conveyance with Land Use Restrictions and
Covenants and Groundwater Restrictions and Covenants recorded with the Will
County Recorder’s Office on August 11, 2001 as Document Number R200008624
(“Initial Deed”).  In connection
with the Initial Deed a Memorandum of Agreement (hereinafter “MOA”)
dated August 2, 2000 was recorded as an exhibit to the Initial Deed.  The Premises is part of a larger commercial
and industrial development commonly known as “CenterPoint Intermodal Center @
Deer Run” (“Park”) and is subject to that certain Declaration of
Protective Covenants, Restriction and Easements recorded in Will County,
Illinois on June 27, 2002 as document number R-2002105580, as same has
been and may hereafter be amended from time-to-time (“Declaration”).  Among other matters, the Declaration provides
for and requires the payment of a proportionate share of certain costs and
reserves for the operation, maintenance, repair and improvement of the Park
(said costs being called the “Member’s Proportionate Share” of “Association
Costs” as those terms are defined in the Declaration).  The lease of the Premises shall be subject
to, and Lessee shall at all times during the Term comply with, all presently
existing covenants, conditions, agreements, easements, encumbrances and
restrictions of record, all as set forth in the Commitment, all applicable laws
and ordinances, the Initial Deed, the MOA and the Declaration (collectively, “Permitted
Exceptions”) (provided that no modifications to the same which change
Lessee’s compliance obligations thereunder shall be made by Lessor without
Lessee’s consent, unless Lessor desires to amend the same without Lessee’s
consent, which Lessor may do in its sole discretion, in which case Lessee shall
not be subject to any such amendment to the extent that Lessee did not consent
to the same) and all present and future governmental requirements, foreseen or
unforeseen, ordinary as well as extraordinary, or to the use or manner of use
of the Premises or to the sidewalks, parking areas, curbs and access ways
adjoining the Premises.  Lessee shall pay
all amounts due under the Declaration relating to the Premises.

 

11

 

(i)            Lessee Compliance Obligation.  In the event that such governmental
requirement (a) is applicable as a result of Lessee’s particular use,
occupancy, operation or alteration of the Premises or as a result of any Lessee
Change (as defined in Section 22) during the initial fifteen (15) year
Term and thereafter whether or not due to Lessee’s particular use, occupancy,
operation or alteration of the Premises and (b) requires a renovation,
improvement or replacement to the Premises (hereinafter referred to as a “Lessee
Compliance Obligation”), then (except as described below) Lessee shall be
required to make such renovation, improvement or replacement and take any other
required action, at Lessee’s sole cost and expense.  Lessee shall also observe and comply with the
requirements of all policies of public liability, fire and other policies of
insurance at any time in force with respect to the Premises.

 

(ii)           Code Modification.  If, as a result of one or more governmental
requirements, it is necessary, from time to time during the initial fifteen
(15) year Term or during the performance of Lessor’s Work, to perform an
alteration or modification of the Premises (a “Code Modification”) which
is not a Lessee Compliance Obligation, then Lessor shall have the obligation to
pay the cost of the work which is required to perform the Code
Modification.  If Lessee receives a
written notice from a governmental authority requiring a Code Modification,
Lessee shall promptly send a copy of such notice to Lessor.  Any Code Modification which is a Lessee
Compliance Obligation shall be the sole and exclusive responsibility of Lessee
in all respects; any such Code Modification shall be promptly performed by
Lessee at its expense in accordance with the applicable governmental
requirement.  If a Code Modification is
not a Lessee Compliance Obligation, Lessor shall promptly perform the Code
Modification in accordance with applicable governmental requirements; provided,
however, Lessor shall not interfere with the conduct of Lessee’s business at
the Premises.

 

B.                            In
connection with any earth-disturbing activities performed pursuant to this
Lease, including but not limited to the performance of any of Lessor’s Work,
Lessor shall comply with all federal, state or local laws, regulations,
ordinances, permits or other authorizations, approvals or other requirements
relating to storm water discharges or the control of erosion or sediment
discharges from construction projects, including but not limited to the Clean
Water Act, 33 U.S.C. § 1251 et seq.
and the July 2003 NPDES General Permit for Stormwater Discharges
Associated with Construction Activities (the “EPA General Permit”)
(collectively the “Storm Water Requirements”).  Lessor agrees to assume operational control
over storm water compliance, to develop a comprehensive storm water pollution
prevention plan and to submit a Notice of Intent for coverage under the EPA
General Permit or analogous state permit as follows:

 

12

 

(i)            For
purposes of this Lease, the parties adopt the definition of “Operational
Control” developed by the U.S. Environmental Protection Agency (“EPA”)
in the EPA General Permit and associated Fact Sheet: Operational Control shall
mean control over construction plans and specifications, including the ability
to make modifications to those plans and specifications, or day-to-day
operational control of those activities at the Premises which are necessary to
ensure compliance with the Comprehensive SWPPP (as hereinafter defined) for the
site or other permit conditions. 
Operational Control relates only to control of storm water compliance,
and not control of vertical building construction.  The parties agree that Lessor and Lessor’s
general contractor (the “General Contractor”) shall have Operational
Control over the Premises.

 

(ii)           Lessor
shall develop (and provide Lessee with a copy for reference) a comprehensive
Storm Water Pollution Prevention Plan for the Premises (the “Comprehensive
SWPPP”) which shall, at a minimum, meet the requirements of the EPA General
Permit or the relevant state General Permit for Storm Water Discharges
Associated with Construction Activities (collectively the “General Permit”
or “Permit”), and any other Storm Water Requirements.  Consistent with EPA’s guidance in the EPA
General Permit and Fact Sheet, Lessor shall state in the Comprehensive SWPPP
that Lessor and the General Contractor shall have Operational Control over the
Premises, and that Lessor and the General Contractor shall be responsible for
installing and maintaining all erosion and sediment controls (or storm water
Best Management Practices (“BMPs”)) on the Premises.  Without limitation, Lessor and the General
Contractor shall have Operational Control over, and shall include in the
Comprehensive SWPPP, appropriate BMPs for any fuel storage, concrete washout,
trash collection, or site entrance or exit areas on the Premises.  Throughout work on the Premises, Lessor shall
ensure that the Comprehensive SWPPP is readily available at the site, or at a
location designated pursuant to the applicable Permit, for review by any
contractor or employee, as well as any local, state or federal inspector.  Lessor and the General Contractor shall submit
any Notice of Intent or other permit application required by the relevant
Permit or Storm Water Requirements prior to initiating any ground-disturbing
activities covering the number of acres disturbed by the construction
activities planned on the Premises.  At
the conclusion of all activities covered by the Permit and completion of all
Storm Water Requirements, Lessor and the General Contractor shall submit the
Notice of Termination required by the EPA General Permit or analogous state
permit (and provide Lessee with a copy for reference).

 

(iii)          Lessor
agrees that it will retain in files that are readily accessible all records
required by the applicable Permit or other Storm Water Requirements applicable
to the construction project on the Premises for a

 

13

 

minimum of five (5) years, or for such longer time as may be
required by said Permit or Storm Water Requirements.  Such records shall, without limitation,
include the Permit, the Comprehensive SWPPP (including but not limited to all
erosion and sediment control drawings), all reports of inspection of the storm
water controls on the Premises, all rainfall records, notices of violation or
orders and responses thereto, and other documents relative to storm water
controls on the Premises.  Lessor shall
at any time, upon request of Lessee, provide Lessee with copies of any or all
such records at Lessor’s sole expense and within seven (7) days of Lessee’s
written request.

 

12.          INSURANCE; INDEMNITIES.

 

A.                            Lessee
covenants and agrees that from and after the Delivery Date, Lessee will carry
and maintain, at its sole cost and expense, the following types of insurance,
in the amounts specified and in the form hereinafter provided for:

 

(i)            Liability
insurance in the commercial general liability form covering the Premises and
Lessee’s use thereof against claims for personal injury or death, property
damage and product liability occurring upon, in or about the Premises, such
insurance to be written on an occurrence basis (not a claims made basis), with
combined single limit coverage of not less than Three Million Dollars
($3,000,000.00) and with a general aggregate limit of not less than
$5,000,000.00 for each policy year.  The
insurance coverage required under this Section 12 shall, in addition,
extend to any liability of Lessee arising out of the indemnities by Lessee in Section 12.G
and, if necessary, the policy shall contain a contractual endorsement to that
effect.

 

(ii)           Insurance
on the “All-Risk” or equivalent form on a replacement cost basis against
loss or damage to the Buildings and all other improvements now or hereafter
located on the Land (including, without in any manner limiting the generality
of the foregoing, flood insurance if the Premises are located in a flood hazard
area), having a deductible not greater than One Million Dollars
($1,000,000.00); but in any event in amounts not less than 100% of the actual
replacement value of the Buildings and such other improvements.

 

(iii)          Boiler
and machinery insurance covering losses to or from any steam boilers, pressure
vessels or similar apparatus requiring inspection under applicable state or
municipal laws or regulations which are located at the Premises or on any other
building systems for which such coverage is available, in amounts determined by
Lessee to be appropriate or for such higher amounts as may at any time be
reasonably required by Lessor and having a deductible of not more than One Million
Dollars ($1,000,000.00);

 

14

 

coverage shall be on a broad form comprehensive basis, including loss
of income with a limit of coverage which is reasonably acceptable to Lessor.

 

(iv)          Business
automobile liability insurance having a combined single limit of not less than
Two Million Dollars ($2,000,000) per occurrence and insuring Lessee against
liability for claims arising out of ownership, maintenance, or use of any
owned, hired, borrowed or non-owned automobiles.

 

(v)           Workmen’s
compensation insurance to the extent required by the laws of the state of
wherein the Premises are located, covering all persons employed by Lessee in
the conduct of its operations on the Premises (including the all states
endorsement and, if applicable, the volunteers endorsement), together with
employer’s liability insurance of at least One Million Dollars ($1,000,000).

 

(vi)          Rent
loss insurance (a) with loss payable to Lessor, (b) covering all
risks required to be covered by insurance (or self-insurance) provided in this
Lease, (c) containing an extended period of indemnity endorsement which
provides that after the physical loss to the Premises has been repaired, the
continued loss of income will be insured until such income either returns to
the same level it was at prior to the loss, or the expiration of eighteen (18)
months from the date that the Premises are repaired, notwithstanding that the
policy may expire prior to the end of such period, and (d) in an amount
equal to one hundred percent (100%) of all Rent and other amounts due from
Lessee under the Lease for a period of eighteen (18) months from the date of
the loss.  The amount of such insurance
shall be determined at least once a year based upon Lessor’s reasonable
estimate of the Rent and other amounts due from Lessee under the Lease for the
succeeding eighteen (18) month period.

 

B.                            All
policies of the insurance provided for in Section 12.A shall be issued in
a form reasonably acceptable to Lessor by insurance companies with a rating of
not less than “A-,” and financial size of not less than Class-VII, in the most
current available “Best’s Insurance Reports”, and licensed to do business in
the state in which the Buildings are located. 
Lessee shall have the right to increase the deductible amounts under the
policies of insurance required above, subject to the approval of Lessor, such
approval not to be unreasonably withheld. 
Each and every such policy:

 

(i)            Shall
name Lessor, as well as Lessor’s Mortgagee, as defined in Section 25, and
any other party reasonably designated by Lessor, as an additional insured (but
only as respects the policies identified in Section 12(A)(i), (ii), (iii),
(iv) and (vi) above);

 

15

 

(ii)           Shall
be evidenced by a certificate of insurance delivered to Lessor prior to
delivery of possession of the Premises to Lessee and thereafter within ten (10) days
after renewal of each such policy, and as often as any such policy shall expire
or terminate.  Renewal or additional
policies shall be procured and maintained by Lessee in like manner and to like
extent;

 

(iii)          Shall
contain a provision that the insurer waives any right of subrogation against
Lessor on account of any loss or damage occasioned to Lessor, its property, the
Premises or its contents arising from any risk covered by all risks fire and
extended coverage insurance of the type and amount required to be carried
hereunder, provided that such waiver does not invalidate such policies or
prohibit recovery thereunder;

 

(iv)          Shall
contain a provision that the insurer will give to Lessor and such other parties
in interest at least thirty (30) days notice in writing in advance of any
material change, cancellation, termination or lapse, or the effective date of
any reduction in the amounts of insurance; and

 

(v)           Shall
be written as a primary policy which does not contribute to and is not in
excess of coverage which Lessor may carry.

 

C.                            Lessee
shall also, from and after each Possession Date, carry and maintain, at its
sole cost and expense, insurance on the “All-Risk” or equivalent form
against loss or damage to the personal property of Lessee within the Buildings,
including, without limitation, stored inventory, with companies, amounts and
terms of coverage reasonably deemed prudent by Lessee.  Lessor shall have no interest in or claim of
any nature to the proceeds of any such insurance.  At the request of Lessor, Lessee shall
provide Lessor with a certificate of such insurance, issued by the carrier or
its agent, setting forth the terms of coverage. 
Lessee waives any claim against Lessor for damage to the personal
property of Lessee arising from negligence of Lessor to the extent such damage
is covered by the insurance which Lessee is required to maintain pursuant to
this subsection C.

 

D.                            Any
insurance provided for in this Section 12 may be maintained by means of a
policy or policies of blanket insurance, covering additional items or locations
or insureds; provided, however, that:

 

(i)            Lessor
and any other parties in interest from time to time designated by Lessor to
Lessee shall be named as an additional insured thereunder as its interest may
appear;

 

(ii)           The
coverage afforded Lessor and any such other parties in interest will not be
reduced or diminished by reason of the use of such blanket policy of insurance;

 

16

 

(iii)          Any
such policy or policies shall specify therein the amount of the total insurance
allocated to the Lessee’s improvements and property; and

 

(iv)          The
requirements set forth in this Section 12 are otherwise satisfied.

 

E.             Lessor
covenants and agrees that, from and after the date on which Lessor achieves
Completion (and with regard to clause (ii) below, only until the Delivery
Date if the Delivery Date is later than the Completion Date), Lessor will, at
the expense of Lessor, carry and maintain:

 

(i)            Liability
insurance in the commercial general liability form, covering the Buildings and
the Land, against claims for personal injury or death and property damage upon,
in or about the Land and the Buildings, such insurance to be written on an
occurrence basis (not a claims made basis) with combined single limit coverage
of not less than $3,000,000.00 and with a general aggregate limit of not less
than $5,000,000.00 for each policy year, and

 

(ii)           Insurance
on the “All-Risk” or equivalent form on a replacement cost basis against
loss or damage to the Buildings and all other improvements now or hereafter
located on the Land (including, without in any manner limiting the generality
of the foregoing, flood insurance if the Premises are located in a flood hazard
area), having a deductible or self-insured retention amount as reasonably
determined by Lessor; but in any event in amounts not less than 100% of the
actual replacement value of the Buildings and such other improvements.

 

All
policies of insurance required to be carried by Lessor pursuant to this Section 12.E
shall be issued by insurance companies with a rating of not less than A-, with
a financial size of not less than VII. 
With respect to the policies of insurance carried by Lessor pursuant to
this Section 12.E, Lessor shall, within ten (10) business days after
receipt of a written request from Lessee, deliver to Lessee a certificate
evidencing the required coverage and containing a provision that each insurer
will give to Lessee at least thirty (30) days notice in writing in advance of
any material reduction, cancellation, termination or lapse of insurance.  Notwithstanding the foregoing, in no event
shall Lessor be obligated to insure or, except in the event of Lessor’s
negligence or willful misconduct, have any liability with respect to Lessee’s
inventory, racking, trade fixtures, equipment or other property and Lessee
hereby releases Lessor from all such liability.

 

F.                             Notwithstanding
anything to the contrary contained herein, Lessee shall have the right to
self-insure provided (i) Lessee, prior to electing to self-insure, gives
thirty (30) days advance written notice to Lessor and (ii) the senior
unsecured long term debt rating from Standard & Poor’s and Moody’s
Corporation of Lessee and Wal-Mart Stores, Inc. equals or exceeds their
respective senior unsecured long term debt rating from Standard & Poor’s
and

 

17

 

Moody’s
Corporation as of the date of this Lease. 
“Self-insure” shall mean that Lessee is itself acting as though
it were the third-party insurer providing the insurance required under the
provisions of this Lease, and Lessee shall pay any amounts due in lieu of
insurance proceeds because of self-insurance, which amounts shall be treated as
insurance proceeds for all purposes under this Lease.  To the extent Lessee chooses to provide any
insurance required by this Lease by “self-insurance,” then Lessee shall have
all of the obligations and liabilities of an insurer, and the protection afforded
Lessor, Lessor’s lender, and the Property shall be the same as if provided by a
third-party insurer under the coverages required under this Lease, and evidence
of same reasonably acceptable to Lessor and Lessor’s lender, if any, shall be
provided by Lessee.  In the event that
Lessee elects to self-insure and an event or claim occurs for which a defense
and/or coverage would have been available from a third-party insurer, Lessee
shall (i) provide written notice of same within thirty (30) days
thereafter, and (ii) undertake the defense of any such claim, including a
defense of Lessor, at Lessee’s sole cost and expense, and use its own funds to
pay any claim or replace any property or otherwise provide the funding which
would have been available from insurance proceeds but for such election by
Lessee to self-insure.  Lessee shall pay
such amount in the same manner and within the same time period that insurance
proceeds would have been available to Lessor had Lessor been carrying third
party all risk insurance on the Premises.

 

G.                            Each
party hereby agrees to indemnify, defend, protect and hold the other party
harmless from and against any and all losses, costs, liabilities, damages and
expenses, including, but not limited to, penalties, fines, and costs actually
incurred (collectively, “Claims”), to the extent such Claims (i) are
caused or result from the activities (including the negligence or willful
misconduct) of the indemnifying party or its respective agents, contractors or
employees in or on the Premises, and (ii) are not insured under (or
required to be insured by) the indemnified party’s property insurance pursuant
to the provisions of this Lease; provided, however, that the foregoing
indemnity shall not extend to any Claims to the extent resulting from the
negligence or willful misconduct of the indemnified party.  The foregoing mutual indemnity is intended to
be consistent with the waivers as set forth in this Section 12.G and Section 18
of this Lease, pursuant to which (a) each party has waived its respective
rights against the other party to the extent any losses, damages or other
Claims are insured or required to be insured under property damage policies by
such party pursuant to the provisions of this Lease, and (b) has agreed to
cause such party’s respective insurance carrier to include a waiver of
subrogation in their respective property damage insurance policies.  The foregoing indemnities, and the waivers
set forth in Section 18, are not intended to and shall not relieve any
insurance carrier of its obligations to provide insurance coverage pursuant to
insurance policies obtained pursuant to the provisions of this Lease.  The provisions of this Section 12 shall
survive the expiration or earlier termination of this Lease.

 

18

 

13.          ACCESS BY LESSOR.  Lessor and its authorized representatives
shall have the right to enter the Premises within 24-hours written notice to
examine the condition thereof, to show the same to any prospective purchasers
or lenders and/or to make all necessary repairs required of Lessor under this
Lease, but such rights shall be exercised in a manner so as not to interfere
unreasonably with Lessee’s operations. 
At any time within nine (9) months prior to the expiration of this
Lease or any renewals hereof, Lessor, upon giving verbal notice not less than
two (2) business days in advance, may show the Premises to prospective
tenants, and within such period, with the express written permission of Lessee,
not to be unreasonably withheld, delayed or conditioned, may attach to either
of the Buildings or erect on the Land a notice advertising said property for
sale or letting, but such rights shall be exercised in a manner so as not to
interfere unreasonably with Lessee’s operations.  A representative of Lessee shall be permitted
to accompany Lessor during such periods of access.

 

14.          UTILITIES AND WASTE DISPOSAL.  Lessee agrees to pay for all utilities used
upon or within the Premises, including, but not limited to, electricity, gas,
phone, heat, power, water and sewer, provided suitable meters have been
installed by Lessor as part of the Lessor’s Work, to the extent required by the
Plans and Specifications, to measure Lessee’s consumption of same.  Lessee shall provide for the regular removal
of all trash, rubbish and garbage from the Premises.

 

15.          CONDEMNATION. 
In the event that part of the Premises shall be taken or condemned, and
the part so taken shall remove twenty-five percent (25%) or more of the total
parking area for the Buildings, or the part so taken shall result in cutting
off direct access to adjacent public streets or highways such that Lessee is no
longer reasonably able to continue to conduct its normal business operations,
or shall result in the loss of more than twenty-five percent (25%) of either of
the Buildings, then, and in either such event, Lessee may elect to terminate
this Lease as of the date of the taking by such authority.  Such notice of election to terminate shall be
given in writing to Lessor within sixty (60) days after official notice to
Lessee of the taking.  In the event of an
expropriation of any portion of either of the Buildings and if this Lease shall
not be terminated as hereinabove provided, the Lease shall continue as to that
portion of the Buildings which shall not have been expropriated or taken, in
which event Lessor shall, to the extent only of the available proceeds from the
taking, promptly and with due diligence, restore said Premises, as nearly as
practicable, to a complete unit of like quality and character as existed just
prior to such expropriation.  The
proceeds of a partial taking which does not result in a termination of this
Lease shall be the sole and exclusive property of Lessor.  The Base Rent and any other charges payable
by Lessee hereunder shall abate during the period of demolition and restoration
to the extent of the portion of the Buildings that Lessee is unable to and does
not in fact use.  Following restoration
by Lessor, Base Rent and such other charges shall be reduced in the proportion
the ground floor square foot area of the Building or Buildings so expropriated
shall bear to the total ground floor square foot area of the Building or
Buildings prior to such expropriation. 
Subject to the following paragraph, Lessee hereby assigns to Lessor,
Lessee’s interest in all condemnation awards, if any.  Neither Lessor nor Lessee shall have any
right or claim to any award obtained by the other party.

 

19

 

If the whole of the Premises shall be taken or
condemned by any competent authority for any public use or purpose during the
Term of this Lease or any extension hereof, or if this Lease terminates in
accordance with this Section 15 as a result of a partial taking, to
the extent permitted by law and subject to the rights of any lender with
respect to the Premises, Lessee shall be allowed to pursue a claim against the
condemning authority (“Lessee’s Claim”) that shall be independent of and
wholly separate from any action, suit or proceeding relating to any award to
Lessor for reimbursement of relocation expenses and for Lessee’s equipment and
personal property, provided:  (i) Lessee’s
Claim shall in no way limit, affect, alter or diminish in any kind or way
whatsoever Lessor’s award as a result of such taking, sale or condemnation; (ii) Lessee’s
Claim shall in no event include any claim for any interest in real property, it
being expressly understood and agreed that all sums paid with respect to the
real property interests taken, sold or condemned shall be the sole property of
Lessor; and (iii) Lessee’s Claim shall in no event be joined with Lessor’s
proceeding or argued or heard concurrently therewith unless the tribunal
hearing Lessee’s Claim orders such joinder.

 

16.          DEFAULT CLAUSE.

 

A.                            Lessee
agrees that the occurrence of any one or more of the following events shall be
considered a default under this Lease:

 

(i)            Entry
of an order, judgment or decree shall be entered by any court adjudicating
Lessee a bankrupt or insolvent, or approving a petition seeking reorganization
of Lessee or appointing a receiver, trustee or liquidator of Lessee, or of all
or a substantial part of its assets, if such order, judgment or decree shall
continue unstayed and in effect for any period of sixty (60) days; or

 

(ii)           Lessee
shall file an answer admitting the material allegations of a petition filed
against Lessee in any bankruptcy, reorganization or insolvency proceeding or
under any laws relating to the relief of debtors, readjustment or indebtedness,
reorganization, arrangements, composition or extension; or

 

(iii)          Lessee
shall make any assignment for the benefit of creditors or shall apply for or
consent to the appointment of a receiver, trustee or liquidator of Lessee, or
any of the assets of Lessee; or 

 

(iv)          Lessee
shall file a voluntary petition in bankruptcy, or shall admit in writing its
inability to pay its debts as they come due, or shall file a petition or an
answer seeking reorganization or arrangement with creditors or take advantage
of any insolvency law; or 

 

(v)           A
decree or order appointing a receiver of the property of Lessee shall be made
and such decree or order shall not have been vacated within sixty (60) days
from the date of entry or granting thereof; or

 

20

 

(vi)          Lessee
shall default in making any payment of Rent or other payment required to be
made by Lessee hereunder within ten (10) days after Lessee’s receipt of
written notice of such default from Lessor; or 

 

(vii)         Lessee
shall fail to carry all required insurance under this Lease; or

 

(viii)        If
Lessee shall default in the performance of any covenant, promise or agreement
on the part of Lessee contained in this Lease not otherwise specified in this Section 16A
and such default shall continue for thirty (30) days after notice thereof in
writing by Lessor to Lessee, or if such default or condition which gives rise
thereto cannot with due diligence and good faith be cured within such thirty
(30) day period, if Lessee shall not in good faith and within the period of
thirty (30) days commence the curing of such default and pursue the curing of
such default continuously and diligently and in good faith to the end that such
default shall be cured within such minimum period in excess of thirty (30) days
as may be reasonably necessary to cure such default through pursuing such cure
promptly, diligently, continuously and in good faith.

 

B.                            Upon
the occurrence of any default and at any time thereafter, Lessor may, at its
election, exercise any one or more of the following described remedies, in
addition to all other rights and remedies provided at law, in equity or
elsewhere herein: 

 

(i)            Lessor
may terminate this Lease by giving to Lessee written notice of Lessor’s
election to do so, in which event the Term and all right, title and interest of
Lessee hereunder shall end on the date stated in such notice;

 

(ii)           Lessor
may terminate the right of Lessee to possession of the Premises without
terminating this Lease, by giving written notice to Lessee that Lessee’s right
of possession shall end on the date stated in such notice, whereupon the right
of Lessee to possession of the Premises or any part thereof shall cease on the
date stated in such notice; 

 

(iii)          Lessor
may enforce the provisions of this Lease and may enforce and protect the rights
of Lessor by a suit or suits in equity or at law for the performance of any
covenant or agreement herein, and for the enforcement of any other appropriate
legal or equitable remedy, including without limitation (a) injunctive
relief, (b) recovery of all moneys currently due from Lessee under any of
the provisions of this Lease, and (c) any other damages incurred by Lessor
by reason of Lessee’s default under this Lease;

 

(iv)          Lessor
may reenter and take possession of the Premises or any part of the Premises,
repossess the same, expel Lessee and those claiming through or under Lessee,
and remove the effects of both or either, using such force for

 

21

 

such purposes as may be necessary, without being liable for
prosecution, without being deemed guilty of any manner of trespass, and without
prejudice to any remedies for arrears of Rent or other amounts payable under
this Lease or as a result of any other breach of this Lease; and

 

(v)           Lessor
may perform any of Lessee’s obligations hereunder that Lessee has failed to
perform and the cost thereof shall constitute Rent payable by Lessee to Lessor
on the first day of the next calendar month.

 

C.                            Should
Lessor take possession pursuant to legal proceedings or pursuant to any notice
provided by law, Lessor may, from time to time, without terminating this Lease,
rent the Premises or any part of the Premises, for such term or terms (which
may be greater or less than the period which would otherwise have constituted
the balance of the Term) and on such conditions and upon such other terms
(which may include concessions of free rent and alteration and repair of the
Premises) as Lessor, in its commercially reasonable discretion, may determine,
and Lessor may collect and receive the Rent due in connection therewith.  Lessor shall not be required to accept any
tenant offered by Lessee or any third party or observe any instruction given by
Lessee relative to such reletting. 
Lessor shall however use commercially reasonable efforts to relet the
Premises, to the extent required by law. 
Lessor will in no way be responsible or liable for any failure to relet
the Premises, or any part of the Premises, or for any failure to collect any
rent due upon such reletting.  No such
reentry or taking possession by Lessor will be construed as an election on
Lessor’s part to terminate this Lease unless a written notice of such intention
is given to Lessee.  No written notice
from Lessor under this Section 16 or under a forcible or unlawful entry
and detainer statute or similar law will constitute an election by Lessor to
terminate this Lease unless such notice specifically so states.  Lessor reserves the right following any such
reentry or reletting to exercise its right to terminate this Lease by giving
Lessee such written notice, in which event this Lease will terminate as
specified in such notice.

 

D.                            In
the event that Lessor does not elect to terminate this Lease, but on the
contrary elects to take possession of the Premises, then, in addition to all
other rights and remedies of Lessor, Lessee shall pay to Lessor (i) Rent
and other sums as provided in this Lease that would be payable under this Lease
if such repossession had not occurred, less (ii) the net proceeds, if any,
of any reletting of the Premises after deducting all of Lessor’s reasonable
expenses in connection with such reletting, including without limitation all
repossession costs, brokerage commissions, attorneys’ fees, expenses of
employees, alteration and repair costs, and expenses of preparation for such
reletting.   If, in connection with any
reletting, the new lease term extends beyond the Term, or the Premises covered
by such new lease includes other premises not part of the Premises, a fair apportionment
of the rent received from such reletting will be made in determining the net
proceeds from such reletting.  Lessee
will pay such Rent and other sums to Lessor monthly on the day on which such
sums would have been

 

22

 

payable under
this Lease if possession had not been retaken, and Lessor shall be entitled to
receive such Rent and other sums from Lessee on each such day.

 

E.                             In
the event that Lessor elects to terminate this Lease, then, in addition to all
other rights and remedies of Lessor, Lessee shall remain liable to pay to
Lessor as damages an amount equal to (i) all Rent due hereunder accrued
and unpaid for the period up to and including the date of such termination,
plus (ii) all other additional sums payable by Lessee or for which Lessee
is liable or in respect of which Lessee has agreed to indemnify Lessor under
any of the provisions of this Lease, which may then be owing and unpaid, plus (iii) all
costs and expenses, including, without limitation, court costs and reasonable
attorneys’ fees incurred by Lessor in the enforcement of any of its rights and
remedies hereunder.

 

In the alternative, Lessor shall have the right, from time to time, to
recover from Lessee upon demand, and Lessee shall remain liable to pay Lessor
for, (i) all Rent and other amounts due and owing under this Lease,
accrued and unpaid for the period up to and including the date of such
termination, plus (ii) damages equal to the sum of (y)  all Rent and all other sums which would have
accrued under this Lease after the date of termination had it not been
terminated, such damages to be due and payable as such sums would have become
due, less (z) such amounts as Lessor may actually receive from reletting after
first paying all costs of such reletting, including, without limitation, the
expenses enumerated in Section 16D and the net amounts of rent collected
remaining after such expenses shall operate only as an off setting credit
against the amount due hereunder with any excess or residue belonging solely to
Lessor.

 

F.                             If
this Lease shall terminate as a result of or while there exists a default
hereunder, any funds of Lessee held by Lessor may be applied by Lessor to any
damages payable by Lessee (whether provided for herein or by law) as a result
of such termination or default.

 

G.                            Neither
the commencement of any action or proceeding, nor the settlement thereof; nor
entry of judgment thereon shall bar Lessor from bringing subsequent actions or
proceedings from time to time, nor shall the failure to include in any action
or proceeding any sum or sums then due be a bar to the maintenance of any
subsequent actions or proceedings for the recovery of such sum or sums so
omitted.

 

H.                            If
any statute or rule of law shall limit any of Lessor’s remedies as
hereinabove set forth, Lessor shall nonetheless be entitled to any and all
other remedies hereinabove set forth, provided, however, that the remedies set
forth above shall be the exclusive remedies available to Lessor.  In no event shall Lessor have the right to
accelerate Rent or any other sums due and payable under the terms of this
Lease.  Consequential damages are not
recoverable.

 

23

 

I.                              No
agreement to accept a surrender of the Premises and no act or omission by
Lessor or Lessor’s agents during the Term shall constitute an acceptance or
surrender of the Premises unless made in writing and signed by Lessor.  No re-entry or taking possession of the
Premises by Lessor shall constitute an election by Lessor to terminate this
Lease unless a written notice of such intention is given to Lessee.

 

J.                             No
provision of this Lease shall be deemed to have been waived by either party
unless such waiver is in writing and signed by the party making such
waiver.  Lessor’s acceptance of Base Rent
or Additional Rent following a default hereunder shall not be construed as a
waiver of such default (except as to acceptance by Lessor of payment in full of
all Base Rent and Additional Rent past due at the time of such
acceptance).  No custom or practice which
may grow up between the parties in connection with the terms of this Lease
shall be construed to waive or lessen either party’s right to insist upon
strict performance of the terms of this Lease, without a written notice thereof
to the other party.

 

K.                            The
rights granted to Lessor in this Section 16 shall be cumulative of every
other right or remedy provided in this Lease, and the exercise of one or more
rights or remedies shall not prejudice or impair the concurrent or subsequent
exercise of other rights or remedies or constitute a forfeiture or waiver of
Base Rent, Additional Rent or damages accruing to Lessor by reason of any
default.  If a default shall occur, Lessee
shall pay to Lessor, on demand, all reasonable expenses incurred by Lessor as a
result thereof, including reasonable attorneys’ fees, court costs and
expenses.  Other than in connection with
a claim arising from the negligence or intentional misconduct of Lessor, its
employees, agents or representatives, if Lessor shall be made a party to any
litigation commenced against Lessee as a result of this Lease, Lessor’s
ownership of the Premises or the relationship of Lessor and Lessee arising by
virtue of this Lease, Lessee shall pay all reasonable costs incurred by Lessor
in connection with such litigation. 
Notwithstanding anything to the contrary contained herein, in the event
any third party prevails in any action to which Lessor is made a party and it is
ultimately determined that there was no liability on the part of Lessor, Lessee
shall pay all reasonable costs incurred by Lessor in connection with such
litigation.

 

L.                             Nothing
contained in this Lease will relieve Lessor of any obligation which Lessor may
have under law to mitigate its damages resulting from a default.

 

M.                           If
Lessor fails to perform or observe or otherwise breaches any term of this Lease
and such failure shall continue for more than thirty (30) days after Lessee
gives Lessor written notice of such failure, or, if such failure does not arise
out of a failure by Lessor to pay a sum of money and cannot reasonably be
corrected within such thirty (30) day period, if Lessor does not commence to
correct such default within such thirty (30) day period and thereafter
diligently prosecute the correction of same to completion within a reasonable
time, a “Lessor Event of Default” shall exist under this Lease.  Upon the occurrence of a

 

24

 

Lessor Event
of Default, Lessee may at Lessee’s option, cure the Lessor Event of Default and
the actual cost of such cure and an amount equal to one percent (1%) thereof as
a reasonable charge for administrative expenses together with interest at the
Delinquency Rate shall be payable by Lessor to Lessee within thirty (30)
calendar days after written demand; provided, however, that if a failure by
Lessor to perform or observe any term of this Lease gives rise to circumstances
or conditions which constitute an emergency threatening human health or safety
or substantial damage to the Premises or Lessee’s personal property, or
materially impeding the conduct of the business of Lessee at the Premises,
Lessee shall be entitled to take immediate curative action (prior to the
expiration of any notice and cure period set forth above) to the extent
necessary to eliminate the emergency.  If
Lessor does not pay to Lessee the amount of such cost, upon written demand,
Lessee may set off such cost against installments of Base Rent or other amounts
due Lessor under this Lease.  Such cost
must be reasonably incurred and must not exceed the scope of the Lessor Event
of Default in question; and if such costs are chargeable as a result of labor
or materials provided directly by Lessee, rather than by unrelated third
parties, the costs shall not exceed the amount which would have been charged by
a qualified third party unrelated to Lessee. 
The quality of all work performed by Lessee must equal or exceed the
quality of Lessor’s Work.  Such costs
must be reasonably documented and copies of such documentation must be
delivered to Lessor with the written demand for reimbursement.  Lessee shall be permitted to continue to set
off against succeeding installments of Base Rent until the total amount of such
cost actually incurred by Lessee has been recovered by Lessee.  In the event and to the extent that the
Premises shall be rendered untenantable by reason of Lessor’s failure to
perform any obligation described herein, including without limitation Lessor’s
failure to make repairs, and the expiration of any cure periods in favor of
Lessor, Rent due hereunder shall abate to the extent and in proportion to which
that portion of the Buildings or either Building that is untenantable compares
to the Building or Buildings as a whole until Lessor shall have satisfactorily
performed such obligation; provided, however, Lessee shall not be entitled to
any such abatement to the extent Lessee is still using the portion of the
Premises that Lessee claims to be untenantable. 
Alternatively, Lessee shall have the right to perform such obligations
at the expense of Lessor as hereinabove provided.  Nothing contained in this Section 16.M
shall create or imply the existence of any obligation by Lessee to cure any
Lessor Event of Default.

 

17.          ASSIGNMENT AND SUBLETTING.

 

A.                            Lessee
may assign, mortgage, pledge, encumber or otherwise transfer this Lease, or any
interest hereunder, or sublet the Premises, in whole or in part, at any time,
without the consent of Lessor.  Any
assignee shall execute and deliver an assumption agreement reasonably
acceptable to Lessor, and shall become liable jointly and severally with Lessee
(and any guarantor of the Lessee’s obligations hereunder), directly to Lessor
for all obligations of Lessee hereunder, without,

 

25

 

however,
relieving Lessee of any of its liability hereunder unless agreed upon by the
parties hereto in writing (Lessee acknowledging and agreeing that Lessor shall
have no such obligation to agree to release Lessee in such an event).  Notwithstanding any other term or provision
contained in this Lease to the contrary, no assignment or subletting shall
relieve Lessee (or any guarantor) of its obligations hereunder, and Lessee
shall continue to be liable as a principal and not as a guarantor or surety, to
the same extent as though no assignment or sublease had been made; provided,
however, in the event of any assignment permitted hereunder where the assignee
has a senior unsecured long term debt rating from Standard & Poor’s and
Moody’s Corporation equal to or higher than the rating of Wal-Mart Stores, Inc.
as of the date of this Lease, and the assignee executes and delivers an
assumption agreement reasonably acceptable to Lessor, and no default then
exists with respect to Lessee’s obligations under this Lease, then, and only
then, the assigning Lessee (and any guarantor of Lessee’s obligations
hereunder) will be relieved of liability under this Lease arising from and
after the date of the assignment, provided that Lessee and any guarantor of
Lessee’s obligations hereunder shall continue to be liable as a principal and
not as a guarantor or surety, to the same extent as though no assignment had
been made, with respect to any and all obligations and liabilities of Lessee
hereunder which arose or occurred prior to the date of such assignment.

 

B.                            If
Lessee should desire to assign this Lease or sublet the Premises (or any part
thereof), Lessee shall give Lessor written notice no later than thirty (30)
days in advance of the proposed effective date of any proposed assignment or
sublease, specifying (i) the name and business of the proposed assignee or
sublessee, (ii) a description of the intended use of the Premises by the
proposed assignee or sublessee; (iii) the amount and location of the space
within the Premises proposed to be so subleased, and (iv) the proposed
effective date and duration of the assignment or subletting.  No subletting shall relieve Lessee (or any
guarantor) of any liability hereunder unless agreed upon by the parties hereto
in writing (Lessee acknowledging and agreeing that Lessor shall have no such
obligation to agree to release Lessee in such an event).

 

C.                            It
is expressly acknowledged and agreed by Lessor that Lessee may sublease the
entire Premises to a third party who shall provide transportation and logistics
services to Lessee, and that with the exception of the obligation to pay Base
Rent and Real Estate Taxes and Other Impositions (as hereinafter defined), the
remaining obligations of Lessee hereunder may be performed by such third-party
operator either in its own name or on behalf of Lessee, and Lessor agrees to
accept performance of such obligations by such third-party operator as if such
obligations had been performed by Lessee, but the agreement to accept
performance by the third party operator shall not relieve Lessee (or any
guarantor) of any liability hereunder.

 

26

 

18.          MUTUAL WAIVER OF SUBROGATION.  Each of Lessor and Lessee hereby releases the
other and its respective employees, agents and every person claiming by,
through or under either of them, and Lessee hereby releases all other tenants
in the area of which the Premises is a part, and the employees and agents of
said tenants, from any and all liability or responsibility (to them or anyone
claiming by through or under them by way of subrogation or otherwise) for any
loss or damage to any property (real or personal) caused by fire or any other
insured peril covered by any property insurance policies for the benefit of
either party, to the extent any such loss would be covered by property
insurance required to be carried under the provisions of this Lease, even if
such loss or damage shall have been caused by the fault or negligence of the
other party, its employees or agents, or such other tenant or any employee or
agent thereof.  The parties hereto shall
cause their respective insurance companies insuring the property of either
Lessor or Lessee against any such loss, to waive any right of subrogation that
such insurers may have against Lessor or Lessee, as the case may be.

 

19.          CASUALTY LOSS. 
The term “Total Destruction” of the Premises as used in this section is
defined as damage to or destruction of the Premises by fire or other causes
covered by the extended coverage referred to in Section 12, to the extent
that the cost of repair or reconstruction will exceed fifty percent (50%) of
the cost of rebuilding or reconstructing the Premises at the time of such
disaster.  The term “Partial
Destruction” of the Premises as used in this section is defined as
such damage to the extent that the cost of repair or reconstruction will be
fifty percent (50%) or less of the cost of rebuilding or reconstructing the
Premises at the time of such disaster.

 

A.                            In
the event of Total Destruction of the Premises at any time in the Term, except
during the last twelve (12) months thereof, or in the event of Partial
Destruction of the Premises at any time during the Term, Lessor shall promptly
rebuild or restore the Premises to as nearly as possible its condition
immediately prior to such destruction or damage, such work to be commenced
within ninety (90) days from the time of disaster and thereafter to be
prosecuted with due diligence until such rebuilding or restoration is completed;
provided, however, that the obligation of Lessor to proceed with restoration is
subject to compliance by Lessee with its obligation to make insurance or
self-insurance proceeds available to Lessor in accordance with Section 12
to cover the cost of restoration or repair of the Premises.  In addition to the insurance proceeds to be
delivered by Lessee, Lessee shall also pay and deliver to Lessor, prior to
delivery of any insurance proceeds, the full amount of any deductible provided
for in any policy of insurance required to be carried by Lessee in Section 12.  If the insurance proceeds are inadequate to
pay the full cost of restoration by Lessor of the Premises pursuant to this Section 19,
Lessee shall also be responsible for paying in full the amount of the
restoration cost of the Premises which exceeds the amount of available
insurance proceeds.  Rent due under this
Lease shall abate from and after the date of the casualty during the period of
any such restoration.

 

B.                            In
the event of Total Destruction of the Premises during the last twelve (12)
months of the Term, either Lessor or Lessee shall have the right and option to

 

27

 

terminate this
Lease by giving written notice to the other within thirty (30) calendar days
following the occurrence of the casualty, provided that Lessee may avoid the
termination of the Lease by exercising any available renewal option, in which
event Lessor shall promptly commence restoration or repair of the Premises in
accordance with Section 19.A above. 
Rent shall abate as of the date of the casualty and, upon the giving of
such termination notice, all obligations hereunder with respect to periods from
and after the effective date of termination shall thereupon cease and terminate
(provided that Lessee shall remain obligated to make the payments as described
in Section 12.F above even if this Lease has been terminated).

 

C.                            If
Permitted Delay and/or Lessee Delay prevents Lessor from commencing the
rebuilding or restoration of the Premises within the dates above provided, or
if, after such commencement, Lessor should be prevented from performing said
work, the period of such delays shall not be counted in computing the dates
hereinabove provided for the commencement and/or completion of the rebuilding
or restoration of the Premises. 
Notwithstanding the foregoing, if, for any reason, Lessor should fail to
commence and be diligently performing the work of rebuilding or restoration
within thirty (30) days from the date of Lessor’s receipt of insurance or other
proceeds to restore the Premises, as well as a building permit required for
such rebuilding or restoration, subject to the extension of said time period as
a result of Permitted Delay and Lessee Delay, Lessee shall have the option of (i) terminating
this Lease by giving written notice to Lessor within thirty (30) days after the
expiration of the thirty (30) day period or (ii) Lessee may take over such
rebuilding or restoration and complete it. 
In such event, and if and only if Lessor is then insuring the Premises
under Section 12.E(ii) above, Lessor shall reimburse Lessee for the
cost thereof plus one percent (1%) thereof as a reasonable administrative fee
plus interest thereon at the maximum rate permitted under applicable law.

 

D.                            In
the event of termination of this Lease pursuant to this Section 19, any
unearned Rent paid by Lessee shall be prorated and refunded to Lessee.  In addition, Lessee shall pay in full to
Lessor the full amount of insurance proceeds which would have been paid to
Lessor for the purpose of fully restoring the Premises as a result of the
casualty.

 

20.          TAXES AND OTHER IMPOSITIONS.

 

A.                            Commencing
on the Delivery Date and continuing through the remainder of the Term, Lessee
shall be solely obligated to pay in full all Real Estate Taxes and Other
Impositions (as hereinafter defined) for the Premises, including, but not
limited to, the Buildings and the Land, which accrue during the Term.  Lessee acknowledges and agrees that Real
Estate Taxes and Other Impositions are payable by Lessee on an accrual basis
and, accordingly, Lessee shall be liable for all Real Estate Taxes and Other
Impositions which accrue from and after the Delivery Date and thereafter
throughout the Term, without regard for the date or

 

28

 

dates on which
installments of Real Estate Taxes and Other Impositions may, in fact, be
due.  With respect to any Real Estate
Taxes or Other Impositions, Lessee shall have the right to file with or against
the authority imposing such tax or imposition a protest or challenge of the
validity of any such sum provided that (i) Lessee shall timely file and
diligently pursue to protest or challenge and keep Lessor apprised in writing
of the status thereof, and (ii) the existence of the protest or challenge
will prevent the exercise by any taxing authority of any right or remedy,
affecting the Premises or Lessor, which may be available as a result of
non-payment of the sum being protested or challenged.

 

B.                            The
term “Real Estate Taxes and Other Impositions”, as used in this Lease
shall mean all ad valorem taxes, bond assessments, public facilities
assessments (including the SSA Tax, as hereinafter defined), water and sanitary
taxes, assessments, liens, licenses and permit fees or any other taxes imposed,
assessed or levied against the Land and the Premises, and all other charges,
impositions or burdens of whatever kind and nature, whether or not
particularized by name, and whether general or special, ordinary or extraordinary,
foreseen or unforeseen, which at any time during the Term may be created,
assessed, confirmed, adjudged, imposed or charged upon or with respect to the
Premises, the Land, or any improvements made thereto, or on any part of the
foregoing or any appurtenances thereto, or directly upon this Lease or the rent
payable hereunder or amounts payable by any subtenants or other occupants of
the Premises, or upon this transaction or any documents to which Lessee is a
party or successor-in-interest, or against Lessor because of Lessor’s estate or
interest herein, by any governmental authority, or under any law, including
among others, all rental, sales, use, inventory or other similar taxes and any
special tax bills and general, special or other assessments and liens or
charges made on local or general improvements or any governmental or public
power or authority whatsoever.

 

C.                            Notwithstanding
the foregoing, if any Real Estate Taxes or Other Imposition shall be created,
levied, assessed, adjudged, imposed, charged or become a lien with respect to a
period of time which commences before the Delivery Date or ends after the
expiration date of the Term (other than an expiration date of the Term by
reason of breach of any of the terms hereof by Lessee), then Lessee shall only
be required to pay that portion which accrues during the Term.  Notwithstanding the foregoing, Lessee shall
be responsible for that portion of the Real Estate Taxes attributable to the
improvements constituting Lessor’s Work and any other improvements made by
Lessee (“Improvements”) from and after the date the Premises are
assessed for the value of the Improvements. 
If Lessee is permitted to pay (by the assessing and collecting
authorities) and elects to pay any imposition in installments, Lessee shall
nevertheless pay any and all installments thereof which are due prior to the
expiration of the Term or sooner termination of the Term.  Nothing contained in this Lease shall require
Lessee to pay any income or excess profits or taxes assessed against Lessor, or
any corporation, capital stock and franchise taxes

 

29

 

imposed upon
Lessor.  Lessor agrees to deliver to
Lessee copies of all notices of Real Estate Taxes and Other Impositions which
Lessor receives.

 

D.                            Lessee
agrees to pay all Real Estate Taxes and Other Impositions directly to the
appropriate authority prior to the delinquency thereof.  Lessee acknowledges that ad valorem real
property taxes for the Premises are payable in arrears.  Accordingly, the property taxes (or a portion
thereof) which will accrue during the final year will not be payable until a
date after the end of the Term.  The
provisions of this Section 20.D shall survive expiration of this
Lease.  For example, if the Term ends September 30,
2021, Lessee shall be obligated to pay the 2020 real estate taxes when due in
2021 and the 2021 real estate taxes for the period commencing January 1,
2021 and ending September 30, 2021 when the bills for the real estate
taxes are issued in 2022.

 

E.                             Lessee
shall furnish Lessor, not later than thirty (30) days after the last day upon
which they may be paid without any fine, penalty, interest or additional cost,
evidence of the payment of all Real Estate Taxes and Other Impositions, including
the SSA Tax, as applicable.

 

F.                             By
Ordinance of the Village of Elwood, Will County, Illinois, referred to as
Ordinance No. 738, a special service area known as Village of Elwood
Special Service Area No. 1 (“Ordinance”) was established for and
with regard to certain property including the Land.  A special service area tax (“SSA Tax”)
in addition to all other taxes will be levied and collected for the purposes
set forth in the Special Tax Roll and Report – CenterPoint Intermodal Center
dated October 6, 2003.  The
documents establishing and related to the Ordinance shall be deemed to be
Permitted Exceptions and Lessee shall pay the SSA Tax relating to the Premises.

 

G.                            In
the event the tax parcels which cover the Premises include more property than
the Premises, Lessee shall pay its pro rata share thereof, which pro rata share
shall be (i) as to land value, a fraction, the numerator of which is the
number of square feet of land contained in the Premises and the denominator of
which is the total square footage of the land covered by the applicable tax
parcels, and (ii) as to improvements, a fraction, the numerator of which
is the assessed value of the improvements on the Land and the denominator of
which is the assessed value of all of the improvements on the applicable tax
parcels, provided that a separate assessed valuation of improvements on the
Land is available, and otherwise based on the square footage of the
improvements on the Land and the aggregate square footage of the improvements
on the tax parcels (the “Premises’ Share of the Tax Parcels”).  At Lessee’s request, Lessor shall file a
petition to create a separate tax parcel for the Premises, or, if necessary,
shall file a plat of resubdivision.

 

21.          LESSEE’S FIXTURES, EQUIPMENT AND GOODS.  Any and all fixtures, equipment and goods
installed by Lessee shall be and remain the property of Lessee, and Lessee

 

30

 

may, at any time, during the Term hereof
remove any and all fixtures, equipment and goods installed by it in, on or
about the Premises; provided that Lessee shall promptly repair any damage or
injury to the Premises caused by such removal.

 

22.          ALTERATIONS AND IMPROVEMENTS.  After Completion of the Lessor’s Work, Lessee
or any of its assignees or subtenants shall have the right, in accordance with
this Section 22, to make any alterations or improvements to the Premises
for the purpose of its business or the business of its assignees or subtenants
(“Lessee Change”); provided, that (i) for any Lessee Change having
a cost in excess of Fifty Thousand Dollars ($50,000), Lessee shall give Lessor
written notice of any Lessee Change prior to commencement of any work and
provide a set of plans and specifications for the proposed Lessee Change; (ii) no
Lessee change may affect any structural element of the Buildings or system in
the Buildings, nor be visible from the exterior of the Buildings without the
prior written consent of Lessor, not to be unreasonably withheld or denied; (iii) all
Lessee Changes shall be made in accordance with the requirements of all
governmental authorities having jurisdiction thereover and the Permitted
Exceptions; and (iv) no Lessee Change may cause the value of the property
to be materially diminished thereby. 
Lessor agrees to sign promptly, at no expense or liability to Lessor,
applications, permits or consents which may be required by public authorities
in connection with alterations, improvements, or stockroom additions to the
Premises which are in compliance with this Section 22 and are requested by
Lessee, its assignees or subtenants. 
Subject to the following sentence, Lessor may require Lessee to have all
or any portion of such items designated by Lessor to be removed from the
Premises upon the expiration or earlier termination of this Lease (except in
the event of an early termination that is the result of Lessee’s purchase of
the Premises), or to remain in the Premises, in which event they shall be and
become the property of Lessor upon the expiration or earlier termination of
this Lease.  Lessee may request Lessor to
identify whether or not a particular Lessee Change will be required to be
removed at the time that Lessee seeks Lessor’s consent for such Lessee Change,
or if no consent is required for a particular Lessee Change, Lessee may seek
such determination prior to its construction. 
Lessee shall repair all damage to the Premises caused by the
installation or removal of any Lessee Changes.

 

23.          COVENANT OF TITLE AND QUIET ENJOYMENT.  Lessor covenants, represents and warrants
that (i) as of the date of this Lease the Land is zoned I-4 by the Village
of Elwood, which classification permits warehouses, storage and distribution
facilities (provided that Lessor does not make any representation or warranty
regarding Lessee’s intended use thereof); (ii) Lessor has the full right
and power to execute and perform this Lease and to grant the estate demised
herein; and (iii) Lessor is the owner of the Premises.  Furthermore, on payment of the rent and
performance of the covenants and agreements hereof Lessee shall peaceably and
quietly have, hold and enjoy the Premises and all rights, easements,
appurtenances and privileges belonging or in any wise appertaining thereto
during the Term without molestation or hindrance of any person whomsoever
claiming through or under Lessor.

 

24.          HAZARDOUS SUBSTANCES.  

 

A.                            For
purposes of this Lease:

 

31

 

(i)            “Contamination”
as used herein means the release of or uncontained or uncontrolled presence of
Hazardous Substances (as hereinafter defined) into any environmental media
from, upon, within, below, into or on any portion of the Premises, the
Building, or the Project in amounts or concentrations exceeding action levels
set by applicable governmental agencies.

 

(ii)           “Environmental
Claim” shall mean and include any demand, notice of violation, inquiry,
cause of action, proceeding, or suit for damages, losses, injuries to person or
property, damage to natural resources, fines, penalties, interest, cost recovery,
or request for contribution resulting from or in any way arising in connection
with any Hazardous Substance or any Environmental Law.

 

(iii)          “Environmental
Laws” as used herein means all federal, state, and local laws, regulations,
orders, permits, ordinances or other requirements, concerning protection of
human health, safety and the environment, all as may be amended from time to
time (including without limitation common law).

 

(iv)          “Environmental
Remediation” shall mean any investigation, cleanup, removal, containment,
remediation, or other action relating to Contamination.

 

(v)           “Hazardous
Substances” as used herein means any hazardous or toxic substance,
material, chemical, pollutant, contaminant or waste as those terms are defined
by any applicable Environmental Laws (including, without limitation, the
Comprehensive Environmental Response, Compensation and Liability Act,
42 U.S.C. 9601 et seq. (“CERCLA”)
and the Resource Conservation and Recovery Act, 42 U.S.C. 6901 et seq. (“RCRA”) and any solid wastes,
polychlorinated biphenyls, urea formaldehyde, asbestos, radioactive materials,
radon, explosives, petroleum products and oil.

 

B.                            Lessor
represents that, except as set forth in environmental reports delivered by
Lessor to Lessee as set forth in the Schedule attached hereto as Exhibit E,
(i) Lessor has not treated, stored or disposed (as those terms are defined
under RCRA) of any Hazardous Substances upon or within the Premises and (ii) to
Lessor’s actual knowledge, no Hazardous Substances are present on or under the
Land as of the date of this Lease in amounts or concentrations exceeding action
levels set by applicable governmental agencies as of the date of this Lease.

 

C.                            Lessee
represents that all its activities on the Premises or the Project during the
course of this Lease will be conducted in compliance with Environmental
Laws.  Lessee, at Lessee’s sole cost and
expense, shall be responsible for obtaining all permits or licenses or
approvals under Environmental

 

32

 

Laws necessary
for Lessee’s operation of its business on the Premises and shall make all
notifications and registrations required by any applicable Environmental
Laws.  Lessee, at Lessee’s sole cost and
expense, shall at all times comply with the terms and conditions of all such
permits, licenses, approvals, notifications and registrations and with any
other applicable Environmental Laws affecting in any way the Premises.

 

D.                            Except
for the Permitted Hazardous Substances (as hereinafter defined), Lessee shall
not cause or permit any Hazardous Substances to be brought upon, kept, stored
or used in or about the Premises, the Buildings, or the Project without the
prior written consent of Lessor, which consent may be granted or withheld in the
reasonable discretion of Lessor; provided, however, that the consent of Lessor
shall not be required for the use of a portion of the Premises as a battery
charging area or for the storage and distribution (but not processing or
packaging) of the Hazardous Substances described on Exhibit F (the “Permitted
Hazardous Substances”).

 

E.                             Lessee
shall not cause or permit the release of any Hazardous Substances by Lessee’s
Group into any environmental media such as air, water or land, or into or on
the Premises, the Buildings or the Project in any manner that violates any
Environmental Law or which results in Contamination.  In the event an act or omission by a member
of Lessee’s Group (regardless of whether permitted under this Lease and
regardless of whether done in compliance with Environmental Laws) results in
the presence of Contamination on the Premises, Lessee shall (i) take all
steps reasonably necessary to contain and control any release and any
associated Contamination, (ii) promptly clean up, remediate or otherwise
conduct Environmental Remediation of any release and any associated
Contamination to the extent required by, and take any and all other actions
required under, applicable Environmental Laws, and return the Premises to the
same or substantially similar condition as at the Delivery Date, if and to the
extent the Premises have been impacted by the acts or omissions of Lessee’s
Group subsequent to the Delivery Date, (iii) promptly, but not later than (3) three
business days after the discovery of a Hazardous Substance on the Premises,
notify Lessor of the Hazardous Substance and, to the extent the presence of
Hazardous Substances results from an act or omission of Lessee’s Group,
thereafter regularly update Lessor of Lessee’s actions to comply with this
Lease, and (iv)  to the extent that Lessee is unable to return the
Premises to the same or substantially similar condition as of the Delivery
Date, promptly obtain a so called “no further remediation letter” or comparable
acknowledgment from each federal, state or local governmental agency with
jurisdiction over the Hazardous Substance that the Premises have been fully
remediated to applicable action levels set by government agencies without
reliance on institutional controls (e.g. deed restrictions) specific to the
Premises or engineered barriers, except to the extent engineered barriers are
present on the Premises prior to discovery of Hazardous Substances.

 

33

 

F.                             Regardless
of any consents granted by Lessor pursuant to Section 24.D allowing
Hazardous Substances upon the Premises, Lessee shall under no circumstances
whatsoever cause or permit any activity on the Premises which would (i) cause
the Premises to become subject to regulation as a hazardous waste treatment,
storage or disposal facility under RCRA or the regulations promulgated
thereunder; (ii) result in a release of Hazardous Substances into the
storm sewer system serving the Project; or (iii) result in the
installation of any underground storage tank, underground piping, sump, pit,
pond, lagoon or other underground storage or treatment vessel on or under the
Premises.  For any Hazardous Substances
Lessor allows Lessee to store, keep or use on the Premises where such Hazardous
Substances are stored in a tank, drum, barrel or similar container which is
fifty-five gallons or more in size, Lessee shall use secondary containment that
complies with regulatory requirements.

 

G.                            Lessee
shall and hereby does indemnify Lessor and hold and defend Lessor harmless from
and against any and all Claims suffered by Lessor (excluding indirect or
consequential damages and excluding those Claims arising from Lessor’s own
negligence or willful act, but including diminution in land value), by reason
of or arising out of release, storage, generation, handling, treatment,
transportation, disposal, or arrangement for transportation or disposal, of any
Hazardous Substances by any member of Lessee’s Group (whether accidental,
intentional, or negligent), or by reason of Lessee’s breach of any of the
provisions of this Section 24.  Such
Claims shall include, without limitation, (i) any and all reasonable
expenses that Lessor may incur to comply with any Environmental Laws as a
result of Lessee’s failure to comply therewith; (ii) any and all
reasonable costs and expenses that Lessor may incur in studying or remedying
any Contamination at or arising from the Premises as a result of a failure by
Lessee to comply with this Section 24 or Environmental Laws; (iii) any
and all reasonable costs and expenses that Lessor may incur in performing
Environmental Remediation or studying, removing, disposing, or otherwise
addressing any Hazardous Substances which are present at the Premises as a
result of a failure by Lessee to comply with this Section 24 or
Environmental Laws; (iv) any and all fines, penalties or other sanctions
assessed upon Lessor by reason of Lessee’s Group’s (or any member thereof)
failure to comply with Environmental Laws; (v) removing or otherwise
resolving any environmental liens; and (vi) any and all reasonable legal
and professional fees and costs and expenses incurred by Lessor in connection
with the foregoing.  The indemnity
contained herein shall survive the termination or expiration of this Lease.

 

H.                            Lessor
shall have the right, but not the obligation, to enter the Premises at
reasonable times throughout the Term, after prior written notice to Lessee, for
the purpose of:  (i) auditing and
inspecting the Premises for Lessee’s compliance with this Section 24; (ii) inspecting
documentation related to Lessee’s activities on the Premises or the
environmental condition of the Premises; and (iii) performing such
environmental investigations, assessments and Environmental Remediation

 

34

 

as Lessor may
desire in its reasonable discretion to perform (which may include invasive and
subsurface work at the Premises), except that any activities performed under
this Section 24H shall not unreasonably interfere with Lessee’s operations
and shall be at no out-of-pocket cost to Lessee.

 

I.                              Lessor
shall and hereby does indemnify Lessee and hold and defend Lessee harmless from
and against any and all reasonable and actual Claims suffered by Lessee (but
excluding indirect or consequential damages and excluding Claims arising from
Lessee’s own negligence or willful act) by reason of the storage, release,
generation, handling, treatment, transportation, disposal or arrangement for
transportation or disposal, of any Hazardous Substances by Lessor or any of
Lessor’s agents, contractors or employees on the Premises or by reason of
Lessor’s breach of its warranties in subsection B of this Section 24.  For purposes of such indemnity, such
expenses, losses and liability shall include the following:  (i) any and all reasonable costs and
expenses which Lessee may actually incur to comply with any Environmental Laws;
(ii) any and all reasonable costs and expenses which Lessee may incur in
studying or remedying (including without limitation Environmental Remediation)
any Contamination as required by any Environmental Laws or governmental agency
with jurisdiction over the Premises, (iii) any and all reasonable costs
and expenses which Lessee may actually incur in performing Environmental
Remediation, studying, removing, disposing or otherwise addressing any
Hazardous Substance released, generated, treated transported or disposed of by
Lessor at the Premises as a result of its failure to comply with this Section 24
or Environmental Laws; (iv) any and all fines, penalties or other
sanctions assessed upon Lessee by any governmental agency with jurisdiction
over the Premises; and (v) any and all reasonable legal and reasonable
professional costs and expenses which Lessee may actually incur in connection
with the foregoing.  Notwithstanding the
foregoing, Lessee hereby acknowledges and agrees that Lessor shall have the
right, duty and obligation to undertake and perform all such Environmental
Remediation, studying, remedying, removing, disposing or otherwise addressing
any Hazardous Substances which are the responsibility of Lessor under this subsection I,
in compliance with all Environmental Laws, and Lessee shall not perform such
acts unless (x) Lessee is specifically required by Environmental Laws to
perform such acts, and (y) Lessor has failed or refused to perform such
acts after having been afforded reasonable written notice by Lessee and having
had reasonable opportunity to perform such acts.  The indemnity contained herein shall survive
the termination or expiration of this Lease.

 

J.                             If
Contamination is found to exist in, on or under the Land not caused by Lessee’s
Group and such Contamination actually prevents (by virtue of the application or
enforcement of applicable Environmental Laws by a governmental authority or by
Lessee’s reasonable determination, which shall be based upon an independent
analysis or study performed by a qualified, licensed consultant selected by
Lessee and reasonably approved by Lessor, that there exists on the

 

35

 

Premises an
imminent and substantial endangerment to the health of Lessee’s employees or
invitees that results in physical injury, sickness or disease of Lessee, its
employees or its invitees) Lessee from occupying any material part of the
Premises for the conduct of Lessee’s normal business operations, Lessee shall
provide notice of such Contamination to Lessor, and Lessor shall promptly take
such steps as may be commercially reasonable under the circumstances to
eliminate or remediate the Contamination to a level which will allow Lessee to
conduct its normal business operations within the Premises.  If Lessor is unable to restore the Premises
to a condition which will allow the conduct of Lessee’s normal business
operations within the Premises, and Lessee is unable to conduct Lessee’s normal
business operations within the Premises for a period of sixty (60) or more
continuous calendar days, then Lessee shall have the right to terminate this
Lease by giving a second written notice to Lessor at any time following the
expiration of such sixty (60) day period. 
Rent will be abated while the Premises cannot be used for Lessee’s
normal business operations.  If such
written notice is given, this Lease shall terminate on the later to occur of (i) the
date on which Lessee gives the written notice or (ii) the date on which
Lessee actually vacates the Premises. 
Unless the Contamination is the result of facts or circumstances which
constitute a breach by Lessor of or material inaccuracy in the representations,
warranties and covenants of Lessor contained in subsection B of this Section 24,
above, the foregoing right to terminate this Lease shall be the sole and
exclusive remedy of Lessee with respect to the existence of such Contamination.  If the Contamination results from a breach or
material inaccuracy of the representations, warranties and covenants by Lessor
in subsection B of this Section 24, above, nothing contained in this
subsection J is intended to limit or impair the right of Lessee to demand
performance by Lessor of its indemnity and other obligations under subsection I
of this Section 24.

 

K.                            During
the Term, Lessee shall promptly provide Lessor with copies of all summons,
citations, directives, information requests, notices of potential
responsibility, orders or decrees, Environmental Claims, complaints,
investigations, judgments, letters, notices of environmental liens and other
communications, written or oral, received by Lessee from any governmental
authority, or any other entity or individual concerning (i) any actual or
alleged release of any Hazardous Substance on, to, or from the Premises; or (ii) any
actual or alleged violation of or responsibility under Environmental Laws.  Lessee agrees to promptly provide Lessor with
copies of all documents submitted to any federal, state or local agency or
authority related to any Hazardous Substance releases or Contamination at, on,
or under the Premises.

 

L.                             Upon
written request by Lessor, Tenant shall provide Lessor with (i) copies of
all environmental reports and tests prepared or obtained by or for Tenant and
related to the Premises; (ii) copies of transportation and disposal
contracts (and related manifests, schedules, reports, and other information)
entered into or obtained by Lessee with respect to any Hazardous Substance;

 

36

 

(iii) copies
of any authorizations or permits issued to Lessee under Environmental Laws with
respect to the Premises; and (iv) any other relevant documents and
information with respect to environmental matters relating to the
Premises.  Lessee shall be obligated to
provide such documentation only to the extent that the documentation is within
Lessee’s possession or control.

 

25.          RIGHT TO MORTGAGE.  Lessee, upon request of Lessor, will
subordinate this Lease to any first mortgage or deed of trust (a “Mortgage”)
which now or hereafter affects the Premises and to any renewals, modifications
or extensions of such mortgage, provided that the lender holding such Mortgage
first executes and delivers to Lessee a subordination, non-disturbance and
attornment agreement (“Non-Disturbance Agreement” or “SNDA”),
which shall be in the form attached hereto as Exhibit G or other
form reasonably acceptable to Lessee. 
Additionally, as a condition to the effectiveness of this Lease, Lessor
shall cause each lender described in the Commitment as holding a Mortgage
encumbering the Premises to execute and deliver to Lessee a Non-Disturbance
Agreement within thirty (30) days following the execution of this Lease.

 

Lessee
agrees, at any time, and from time to time, within fifteen (15) days after
Lessor’s written request, to execute, acknowledge and deliver to Lessor, an
estoppel certificate in the form attached to this Lease as Exhibit H.

 

26.          EXTENSION OR RENEWAL.  So long as no default by Lessee has occurred
and is then continuing under this Lease, Lessee shall have the right and option
to renew this Lease and extend the Term hereof for ten (10) successive
periods of five (5) years (each, a “Renewal Term”), upon the same
terms and conditions as this Lease (except that (i) the Base Rent will
increase in the manner hereinafter provided, (ii) there will be no period
of rent-free occupancy at the commencement of any Renewal Term and (iii) Lessor
will have no obligation to construct any improvements or grant any rental
abatement prior to commencement of accrual of Rent and Additional Rent for any
Renewal Term), by giving Lessor at least twelve (12) months previous written
notice of its election to make each such extension.  The Base Rent during each Renewal Term shall
be in accordance with the following schedule:

 

	
  Renewal Term

  	
   

  	
  Annual Base Rent

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  $

  	
  12,748,954

  	
   

  
	
  2

  	
   

  	
  $

  	
  13,386,401

  	
   

  
	
  3

  	
   

  	
  $

  	
  14,055,721

  	
   

  
	
  4

  	
   

  	
  $

  	
  14,758,507

  	
   

  
	
  5

  	
   

  	
  $

  	
  15,496,433

  	
   

  
	
  6

  	
   

  	
  $

  	
  16,271,254

  	
   

  
	
  7

  	
   

  	
  $

  	
  17,084,817

  	
   

  
	
  8

  	
   

  	
  $

  	
  17,939,058

  	
   

  
	
  9

  	
   

  	
  $

  	
  18,836,011

  	
   

  
	
  10

  	
   

  	
  $

  	
  19,777,811

  	
   

  

 

37

 

Upon the giving of such notice within the time
specified therefor, this Lease shall be considered as having been extended for
the period specified in such notice without the necessity of the execution of
any additional instruments.

 

All of Lessee’s unexercised rights and options to
renew this Lease and extend the Term shall automatically terminate upon the
earliest to occur of (i) the expiration or termination of this Lease, (ii) the
termination of Lessee’s right to possession of the Premises, (iii) the
failure of Lessee to timely or properly exercise any right and option to renew,
or (iv) any assignment or subletting of the Premises, except a subletting
to a third party operator or an assignment or subletting to any entity that is
controlled by, controls or is under common control with Lessee (each an “Affiliate”).  Lessor and Lessee acknowledge and agree that
no real estate brokerage commission or finder’s fee shall be payable by Lessor
in connection with any exercise by Lessee of any right or option to renew this
Lease.

 

27.          NOTICES.  Any
notice given in connection with this Lease shall be in writing addressed as follows
and shall be deemed given upon actual receipt and upon refusal of receipt,
postage prepaid, by certified mail, overnight mail, Federal Express, return
receipt requested:

 

	
  If
  to Lessee:

  

  Wal-Mart Stores East, LP

  Attention: Realty Management

  2001 SE 10th Street

  Bentonville, Arkansas 72712

  	
   

  	
  If to Lessor:

  

  CenterPoint Intermodal LLC

  Attention: Mr. Sean Maher

  1808 Swift Drive

  Oak Brook, Illinois 60523

  
	
   

  	
   

  	
   

  
	
  with
  a copy to:

  

  Wal-Mart Stores East, LP

  Real Estate Distribution Centers

  2001 SE 10th Street

  Bentonville, Arkansas 72712

  	
   

  	
   

  

 

28.          SHORT FORM LEASE.  Lessor and Lessee agree to execute at the
time of execution of this Lease a Short Form Lease, the form and content
of which is reasonably acceptable to Lessor and Lessee, which Lessee may elect
to record at its own expense, which shall set forth the legal description of
the Land and the term of the Lease and refer to other pertinent provisions.

 

29.          CONSENT.  Unless
expressly provided or reserved to the contrary herein, Lessor and Lessee
covenant that whenever their consent or approval is required hereunder, they
will not unreasonably withhold, condition, or delay such consent or approval.

 

30.          GOVERNING LAW; JURISDICTION; VENUE.  This Lease shall be governed by and construed
in accordance with the laws of the state in which the Premises is situated (the
“Situs State”), without regard to the internal law of the Situs State
regarding conflicts of laws.  The parties
mutually consent and submit to the jurisdiction of the Federal and

 

38

 

State courts for the county in which the
Premises are situated (the “Situs County”), and agree that any action,
suit or proceeding concerning this Lease shall be brought only in the Federal
or State court for the Situs County.  The
parties mutually acknowledge and agree that they will not raise, in connection
with any such suit, action or proceeding brought in any Federal or State court
for the Situs County, any defense or objection based upon lack of personal
jurisdiction, improper venue, inconvenience of forum or the like. 

 

31.          NET LEASE.  This Lease shall be deemed and construed to
be a fully “net lease,” and Lessee shall pay, absolutely net throughout the
Term, all Rent, free of any deductions of any kind and, except as specifically
provided herein, without deduction or setoff whatsoever in the manner set out
above, and under no circumstances or conditions, whether now existing or
hereafter arising, or whether beyond the present contemplation of the parties,
shall Lessor be expected or required to make any payment of any kind whatsoever
relating to the Premises or be under any other obligation or liability
hereunder or otherwise, except as herein otherwise expressly set forth.  Except for debt service on any indebtedness
of Lessor, if any, and except for Lessor’s repair and restoration obligations
and any other obligations of Lessor specifically set forth herein, Lessee shall
pay all costs, expenses and charges of every kind and nature relating to the
Premises which may arise or become due or payable prior to, during or after
(but attributable to a period falling within) the Term, including all costs,
expenses and charges related to all Permitted Exceptions, and Lessee hereby
agrees to indemnify Lessor against and hold Lessor harmless from the same.  All the obligations of Lessee hereunder shall
be absolute and shall not be affected for any reason whatsoever.  The parties intend that the obligations of
Lessee under this Lease shall be separate and independent covenants and
agreements and shall continue unaffected unless such obligations have been
modified or terminated pursuant to an express provision of this Lease. 

 

32.          GUARANTY.

 

A.                            The
obligations of Lessor hereunder shall be guaranteed by CenterPoint Properties
Trust, a Maryland real estate investment trust, pursuant to a guaranty in the
form of Exhibit I attached hereto.

 

B.                            The
obligations of Lessee hereunder shall be guaranteed by Wal-Mart Stores, Inc.,
a Delaware corporation, pursuant to a guaranty in the form of Exhibit J
attached hereto.

 

33.          LESSOR’S TRANSFER OF PREMISES.  In the event that Lessor transfers its
interest in the Premises and this Lease, then upon the assumption in writing of
the obligations of Lessor by the transferee, Lessor shall be automatically
released from performance under this Lease and from all liabilities and
expenses hereunder and the transferee of Lessor’s interest shall assume all
liabilities and obligations of “Lessor” hereunder from the date of such
transfer; provided, however, that in no event shall the original Lessor
executing this Lease be relieved from (i) liabilities and expenses arising
hereunder prior to the Delivery Date, or (ii) liabilities and expenses
which have accrued prior to the date of such transfer, including but not
limited to, claims for latent construction defects.  Notwithstanding the foregoing, any transfer
occurring prior to the Delivery Date shall be subject to Lessee’s reasonable
prior written approval.

 

39

 

34.          OPTION TO PURCHASE.

 

A.                            Lessor
hereby grants to Lessee the right to purchase (the “Right to Purchase”),
at Lessee’s option, the Premises upon the occurrence of either event described
in Section 34.B herein.

 

B.                            Lessee
may exercise the Right to Purchase upon the occurrence of either of the
following events:

 

(i)            The
Completion of Lessor’s Work; or

 

(ii)           The
end of the Primary Term.

 

C.                            In
order to exercise the Right to Purchase described in Section 34B(i) (“RTP
1”), Lessee shall give written notice to Lessor on or before thirty (30)
days following the date that the Plans and Specifications have been completed
and approved in writing by Lessee.  In
the event that such notice is not given to Lessor by Lessee on or before said
date, Lessor shall provide Lessee with written notice of Lessee’s failure to
exercise such right, and thereafter, Lessee shall have an additional ten (10) days
(the “RTP 1 Cure Period”) within which to exercise RTP 1.  It shall be conclusively deemed that Lessee
has not exercised RTP 1 and such right shall terminate in the event Lessee does
not exercise RTP 1 within the RTP 1 Cure Period.  In the event that Lessee properly exercises
RTP 1, the closing of the purchase (“Closing”) of the portion of the
Premises consisting of Building #1 shall take place the earlier of (i) December 15,
2006 or (ii) thirty (30) days following the Delivery Date and the Closing
of the purchase of the portion of the Premises consisting of Building #2 shall
occur on a date designated by Lessor, but not earlier than thirty (30) days
following the Delivery Date and not later than the earlier of (i) December 15,
2006 or (ii) ninety (90) days following the Delivery Date; provided,
however, in no event shall either Closing occur prior to the actual date of
Completion (without regard to Permitted Delay). 
Notwithstanding the foregoing, in the event the actual date of
Completion is delayed beyond December 15, 2006 as a result of Lessee
Delay, the Closing shall take place on December 15, 2006 and at Closing,
Lessor and Lessee shall deposit in an escrow to be established with the Escrow
Agent (as hereinafter defined), out of sale proceeds, an amount equal to one
hundred fifty percent (150%) of the cost of performing the balance of Lessor’s
Work, which cost shall be determined by mutual agreement of Lessor and
Lessee.  In such event, Lessor shall
diligently proceed to Completion following the Closing.  Lessor shall be paid out of the escrow an
amount equal to one hundred fifty percent (150%) of the amount of the Lessor’s
Work performed from time to time.  The
Closings shall occur at the office of Chicago Title Insurance Company (“Escrow
Agent”) at 10:00 a.m. on the dates referenced above.  The cost of the Closing shall be shared
equally by Lessor and Lessee.

 

In order to
exercise the Right to Purchase described in Section 34B(ii) (“RTP
2”), Lessee shall give written notice to Lessor on or before August 31,

 

40

 

2020.  In the event that such notice is not given to
Lessor by Lessee on or before said date, Lessor shall provide Lessee with
written notice of Lessee’s failure to exercise such right, and thereafter,
Lessee shall have an additional ten (10) days (the “RTP 2 Cure
Period”) within which to exercise RTP 2.  It shall be conclusively deemed that Lessee
has not exercised RTP 2 and such right shall terminate in the event Lessee does
not exercise RTP 2 within the RTP 2 Cure Period.  In the event that Lessee properly exercises
RTP 2, the Closing of the purchase shall take place on the last day of the
Primary Term.

 

The Closing
shall occur at the office of Escrow Agent at 10:00 a.m. on the date
referenced above.  The cost of the
Closing shall be shared equally by Lessor and Lessee.

 

D.                            Lessor
shall have the obligation to deliver a title insurance policy with extended
coverage in the amount of the Purchase Price subject only to Schedule B
exceptions in existence on the Delivery Date, Real Estate Taxes and Other
Impositions not then due and payable and such exceptions arising out of the
acts of Lessee or anyone claiming by, through or under Lessee.  With regard to RTP 1, the cost of the
title insurance shall be paid by Lessor; provided, however, Lessor’s obligation
to pay such cost shall be subject to a credit in an amount equal to the cost of
the leasehold title policy paid by Lessor pursuant to Section 1 above (the
“Title Credit”), and Lessee shall be responsible for that portion of the
cost of the title policy equal to the Title Credit.  With regard to RTP 2, the cost of the
title insurance shall be paid by Lessee. 
After such Closing, except for Lessor’s Warranty and such other rights
and obligations that specifically survive, Lessor and Lessee shall have no
further obligation or liability hereunder one to the other; provided, however
at the Closing Lessee shall have paid or made provision for the payment of all
amounts due under the terms of this Lease from Lessee to Lessor.

 

E.                             In
the event Lessee exercises a Right to Purchase, the purchase price for the
Premises (the “Purchase Price”), which shall be paid by Lessee to Lessor
at Closing, shall be as follows:

 

(i)            In
the event of the occurrence described in Section 34.B(i) above, the
Purchase Price with respect to Building 1 shall be Seventy-Three Million Nine
Hundred Sixty-Seven Thousand Eight Hundred Forty-Four and 24/100 Dollars
($73,967,844.24) and with respect to Building 2 shall be Eighty-Three Million
Four Hundred Ten Thousand Five Hundred Forty-Seven and 76/100 Dollars
($83,410,547.76).

 

(ii)           In
the event of the occurrence described in Section 34.B(ii) above, the
Purchase Price shall be Two Hundred Three Million Fifty-Three Thousand Six
Hundred Fifteen Dollars ($203,053,615.00).

 

F.                             Lessor
shall provide Lessee with a survey of the Premises (the “Survey”)
prepared by a surveyor registered in the State of Illinois and certified by
such

 

41

 

surveyor as
having been prepared in accordance with the then current Minimum Standard
Retail Requirements for ALTA/ACSM Land Title Surveys, including items 1,
2, 3, 4, 5, 6, 7(a), 7(b)(1), 7(c), 8, 9, 10, 11(a), 14, 15 and 16 of
Table A thereof, containing the certification of the surveyor of the
number of net square feet contained in the Premises, exclusive of any land
lying within roadways, streets, highways, alleys, canals, wetlands, flood
plains or rights of way or areas that are, by dedication or easement or use
over time, open to public use.  The
Survey will show each Schedule B exception contained in the Commitment and
its effect on the Premises.

 

G.                            At
Closing, Lessor shall convey marketable fee simple title to the Premises to
Lessee, by special warranty deed in a form acceptable to Lessee, subject only
to the Permitted Exceptions (the “Deed”).  The Deed shall specifically list the
Permitted Exceptions on an exhibit and shall not contain language such as or
similar in context to “subject to all matters of record.”  In addition, the Deed shall include the
following language:  “Without limiting
the foregoing, but in addition thereto, the conveyance herein set forth is
expressly made subject to the notices, covenants, conditions and restrictions
imposed by the Department of the Army pursuant to that certain Quit Claim Deed
recorded in Will County, Illinois as document number R2000-086264, and all of
the notices, covenants, conditions and restrictions imposed by the Department
of the Army pursuant to that certain Quit Claim Deed are incorporated herein
and made a part hereof by this reference.”

 

H.                            With
regard to RTP 1, any Real Estate Taxes and Other Impositions, including
SSA Taxes, shall be prorated and adjusted on the basis of the actual days in
the calendar year, Lessor to have the last day, to the date of Closing;
provided that Lessor shall have no obligation for the payment of, and Lessee
shall pay, the amount of Real Estate Taxes related to the value of the
Improvements.  Real Estate Taxes and
Other Impositions, including SSA Taxes, for 2005 and all prior years shall be
paid by Lessor.  If Closing occurs before
the tax rate is fixed for the then-current year, taxes will be apportioned upon
the basis of the tax rate for the preceding year applied to the latest assessed
valuation, to be adjusted between the parties based on actual taxes for the
year in which Closing occurs at the time actual taxes are determined; provided
that Lessor shall have no obligation for the payment of, and Lessee shall pay,
the amount of Real Estate Taxes related to the value of the Improvements.  If the Premises are part of a tax parcel that
includes other property in addition to the Premises, Lessor agrees to cooperate
with Lessee to establish a separate tax parcel as soon as possible.  Until such separate tax parcel is
established, Lessor and Lessee shall each deliver its prorated share of the Premises’
Share of the Tax Parcels, plus an additional ten percent (10%), to Escrow Agent
for payment to the taxing authority before delinquency; provided that Lessor
shall have no obligation for the payment of, and Lessee shall pay, the amount
of Real Estate Taxes related to the value of the Improvements.  Rollback taxes relating to any period prior
to Closing shall be paid by Lessor.  All

 

42

 

other
assessments shall be paid by Lessee. 
Lessor will provide to Lessee such real property tax information for the
Premises as Lessee requests.  With regard
to RTP 2, there shall not be any prorations or adjustments, except for
prepaid rent, if any.

 

I.                              Any
federal, state and county documentary or revenue stamps, transfer, sales and
other taxes relating to the sale of the Premises shall be paid by Lessor at
Closing.  Municipal transfer taxes, if
any, shall be paid by the party obligated to pay such taxes pursuant to the
applicable ordinance.  Both parties agree
to execute any tax forms required.

 

J.                             Lessor
makes the following representations and warranties which are true and accurate
as of the date of this Lease and, with regard to RTP 1, as of Closing:

 

(i)            Lessor
has received no notice of and, to the best of the knowledge of Lessor, there
are no violations of city, county, state, federal, building, land use, fire,
health, safety, environmental, hazardous materials or other governmental or
public agency codes, ordinances, regulations, or orders with respect to the
Premises, or any lands adjacent to the Premises.

 

(ii)           Lessor
has received no notice of and, to the best of the knowledge of Lessor, there is
no litigation that is pending or threatened with respect to the Premises or
Lessor’s interest therein.

 

(iii)          The
provisions of Section 24B above regarding Hazardous Substances are hereby
incorporated by reference.

 

(iv)          Except
as disclosed to Lessee in writing, Lessor has not entered into any unrecorded
leases, arrangements, agreements, understandings, options, contracts, or rights
of first refusal affecting or relating to the Premises in any way.

 

(v)           The
individual signing this Lease on behalf of Lessor has the authority to bind the
Lessor to the agreements set forth herein.

 

(vi)          At
Closing all utility services including water, gas, electrical, telephone and sanitary
sewer to the Premises will be available at no expense to Lessee for the
installation thereof, except customary tap in fees.

 

Lessor hereby indemnifies and agrees to defend and hold Lessee harmless
from all claims, costs, liabilities, judgments or expenses resulting from any
representations and warranties in this Section 34.J being untrue and
affirms that the provisions of Section 24.I shall be applicable in the
event of the exercise of either Right to Purchase.  If Lessee determines prior to Closing that
there is a material untruth or inaccuracy of any of the representations and
warranties made by Lessor above, then Lessee shall send Lessor written notice
of such information. 

 

43

 

In such event,
Lessor shall, within thirty (30) days thereafter, commence to cure the
condition giving rise to the breach of the representation or warranty and at
all times thereafter diligently pursue the cure of such condition.  If such condition cannot reasonably be corrected
prior to Closing, the Closing shall occur as scheduled and the parties shall
agree upon the cost of correcting the condition.  One hundred twenty-five percent (125%) of
such agreed upon amount shall be held in escrow out of sale proceeds until the
correction is completed by Lessor.  If
Lessor does not take action and diligently proceed within such thirty (30) day
period as set forth above, Lessee shall be entitled to obtain funds from such
escrow for purposes of paying for the cost of completing the work.  In the event that Lessor elects not to cure
such condition, Lessee may revoke its exercise of RTP 1.

 

All representations and warranties shall survive the Closing for a
period of one (1) year.

 

K.                            Lessee
represents that the individual signing this Lease on behalf of Lessee has the
authority to bind Lessee to the agreements set forth herein.

 

L.                             Lessee’s
Right to Purchase shall automatically terminate upon the earliest to occur of (i) the
expiration or termination of this Lease, (ii) the termination of Lessee’s
right to possession of the Premises, (iii) as to each separate Right to
Purchase (but not the other Right to Purchase), the failure of Lessee to timely
or properly exercise any Right to Purchase, subject to the notice and cure
periods described in Section 34.C above, or (iv) the assignment or
subletting of the Premises, except for a subletting to a third party operator,
and except for an assignment or subletting to an Affiliate.  Lessor and Lessee acknowledge and agree that
no real estate brokerage commission or finder’s fee shall be payable by either
party in connection with any exercise by Lessee of any Right to Purchase and
each party indemnifies the other against brokerage or commission claims arising
out of the indemnifying party’s action.

 

M.                           Lessee
and Lessor agree to cooperate with one another if either party notifies the
other that it desires to complete a like-kind exchange under Section 1031
of the Internal Revenue Code.  Each party
agrees to execute any documents requested by the other party (the “Exchanging
Party”), provided the party so executing documents incurs no additional
liabilities in connection therewith.  In
the event that a party elects to engage in such like-kind exchange, the rights
of the Exchanging Party and the obligations of the other party under this Section 34
may, at the Exchanging Party’s option, be assigned to a qualified intermediary
and one or more exchange trusts in order to consummate same.

 

N.                            Within
five (5) years following Closing, in the event Lessee enters into an
agreement to sell the Premises to an unrelated third party (said agreement is
hereinafter referred to as the “Sales Agreement”), Lessor shall have a
right of first refusal to purchase the Premises, on substantially the same
terms and conditions

 

44

 

as provided in
the Sales Agreement.  Lessor shall have
fifteen (15) days after receipt of a copy of such agreement to exercise such
right, which Lessor shall do by executing and delivering to Lessee an agreement
containing the same business terms and conditions as are contained in the Sales
Agreement.  If Lessor shall not deliver
such executed agreement to Lessee within such fifteen (15) day period, then
Lessor shall be deemed to have failed to exercise, and to have waived, such
right with respect to the Sales Agreement. 
At the Closing, Lessor and Lessee shall execute a memorandum of Lessor’s
right of first refusal, which memorandum shall be recorded with the Will County
Recorder of Deeds at Lessor’s cost.

 

35.          MISCELLANEOUS.

 

A.                            Upon
the termination of this Lease, whether by lapse of time or otherwise, the
Premises and related improvements shall be surrendered to Lessor in the same
condition as on the date of Completion (except as altered by any Lessee Change
that Lessor permits to remain on the Premises), reasonable wear and tear and
damage by casualty excepted, subject to the terms of Section 21 regarding
fixtures, equipment and goods of Lessee.

 

B.                            One
or more waivers of any covenant or condition of this Lease by Lessor or Lessee
shall not be construed as a waiver of the further breach of the same covenant
or condition, or of any other covenant or condition herein contained.  Each provision hereunder shall be deemed to
be both a covenant and a condition.

 

C.                            The
covenants, conditions and agreements of this Lease shall be binding upon and
shall inure to the benefit of the successors, heirs and assigns of the parties
hereto.

 

D.                            This
Lease and the terms hereof may be changed or modified only by execution of such
change or modification in writing by the parties hereto or their successors,
heirs and assigns.

 

E.                             If
Lessee remains in possession of the Premises after the expiration of the term
of this Lease, or any renewals hereof, without the execution of a new lease or
an agreement extending the term hereof, or without the exercise of the renewal
options herein granted to Lessee, but with the written approval of Lessor,
Lessee shall be deemed to be occupying the Premises as a tenant from month to
month, subject to all of the terms of this Lease as may be applicable to a
month-to-month tenancy, and at the Rent provided for herein, prorated on a
monthly basis.  If Lessee so remains in
possession without the written approval of Lessor, Lessee shall be tenant holding
over at a Base Rent equal to 150% of the Base Rent in effect at the end of the
Term.

 

F.                             The
captions, paragraph numbers and table of contents appearing in this Lease are
inserted only as a matter of convenience and in no way define, limit,

 

45

 

construe or
describe the scope or intent of this Lease nor in any way affect this Lease.

 

G.                            If
any term, covenant or condition of this Lease or the application thereof to any
person or circumstance shall, to any extent, be invalid or unenforceable, the
remainder of this Lease, or the application of such term, covenant or condition
to persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby; and each term, covenant or
condition of this Lease shall be valid and enforced to the fullest extent
permitted by law.

 

H.                            This
Lease, the exhibits and amendments or addenda, if any, attached hereto and
forming a part hereof, set forth all the covenants, promises, agreements,
conditions, provisions and understandings between Lessor and Lessee concerning
the Premises and there are not covenants, promises, agreements, conditions,
provisions or understandings, either oral or written, between them other than
are herein set forth.

 

I.                              Lessor
represents that it dealt with no broker or brokers and Lessee represents that
it dealt with no broker or brokers, in connection with the negotiation,
execution and delivery of this lease. 
Lessor shall defend, indemnify and hold harmless Lessee from and against
any claims or demands for brokerage commission and finder’s fees arising as a
result of the acts of Lessor.  Lessee
shall defend, indemnify and hold harmless Lessor from and against any claims or
demands for brokerage commission and finder’s fees arising as a result of the
acts of Lessee. 

 

J.                             All
amounts that are not paid to the party entitled to such payment within the time
period due under this Lease shall bear interest from the date such amount was
due until paid in full at the rate of ten percent (10%) per annum (“Delinquency
Rate”).

 

[Signatures on Following
Page]

 

46

 

IN
WITNESS WHEREOF, the parties have executed this Lease the day and year first
hereinabove written.

 

	
  LESSOR:

  	
  LESSEE:

  
	
   

  	
   

  
	
  CENTERPOINT
  INTERMODAL LLC,

  	
  WAL-MART STORES
  EAST, LP, 

  
	
  an Illinois
  limited liability company

  	
  a Delaware
  limited partnership

  
	
   

  	
   

  	
   

  
	
  BY:

  	
  CENTERPOINT PROPERTIES TRUST,

  	
  BY:

  	
  WSE MANAGEMENT, LLC, 

  
	
   

  	
  a Maryland real estate investment trust,

  	
   

  	
  a Delaware limited liability company and 

  
	
   

  	
  its sole member and manager

  	
   

  	
  general manager 

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael M. Mullen

  	
   

  	
   

  	
  By:

  	
  /s/ Shannon Letts

  	
   

  
	
   

  	
  Name:

  	
  Michael M. Mullen

  	
   

  	
   

  	
   

  	
  Shannon Letts

  
	
   

  	
  Title:

  	
   Chief Executive
  Officer

  	
   

  	
   

  	
   

  	
  Director, Distribution
  Center

  
	
   

  	
   

  	
   

  	
   

  	
  Real Estate

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul S. Fisher

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Paul S. Fisher

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   Chief Financial
  Officer

  	
   

  	
   

  	
   

  
											

 

47

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