Document:

Exhibit 10.55

 Exhibit 10.55 
 AIR COMMERCIAL REAL ESTATE ASSOCIATION 
 STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE — NET 
 (DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS) 
 1. Basic Provisions (“Basic
Provisions”). 
 1.1 Parties: This Lease (“Lease”), dated for reference purposes only August 1,
2009 
 is made by and between Alameda Produce Market, LLC, a Delaware limited liability company 
 (“Lessor”) 
 and American Apparel, Inc., a Delaware corporation (“Lessee”), 
 (collectively the “Parties,” or individually a “Party”). 
 1.2
Premises: That certain real property, including all improvements therein or to be provided by Lessor under the terms of this Lease, and commonly known as two industrial buildings described below 
 located in the County of Los Angeles 
 , State of California , and generally described as (describe briefly the nature of the property and, if applicable, the “Project”, if the property is located within a Project)

 Building 3 (including the basement) and Building 4 (excluding the fire pump room) located at 747 Warehouse
Street, Los Angeles, CA, excluding all driveways and corridors between buildings 
 (“Premises”). (See
also Paragraph 2) 
 1.3 Term: Ten years and zero (0) months (“Original Term”) commencing August 1,
2009 
 (“Commencement Date”) and ending July 31, 2019 (“Expiration Date”). (See also
Paragraph 3) 
 1.4 Early Possession: N/A (“Early Possession Date”). 
 (See also Paragraphs 3.2 and 3.3) 
 1.5 Base Rent: $275, 000.00 per month (“Base Rent”), payable on the 1st day of each month commencing 
 August 1, 2009 
 . (See also Paragraph 4)

 If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted. 
 1.6 Base Rent and Other Monies Paid Upon Execution: 
 (a) Base Rent: $0.00 for the period _____________________________________________________________ 
 (b) Security Deposit: $0.00 (“Security Deposit”). (See also Paragraph 5) 
 (c) Association Fees: $0.00 for the period 
 (d) Other: $0.00 for 
 (e) Total Due Upon Execution
of this Lease: $0.00 
 1.7 Agreed Use: Garment design, manufacturing, warehousing and distribution, and related
office, all as permitted by law 
 . (See also Paragraph 6) 
 1.8 Insuring Party: Lessor is the “Insuring Party” unless otherwise stated herein. (See also Paragraph 8)

 1.9 Real Estate Brokers: (See also Paragraph 15) 
 (a) Representation: The following real estate brokers (the “Brokers”) and brokerage relationships exist in this
transaction (check 
 applicable boxes): 
 None represents Lessor exclusively (“Lessor’s Broker”); 
 None represents Lessee exclusively (“Lessee’s Broker”); or 
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 Magnum
Properties (Attn: Mike Meraz) represents both Lessor and Lessee (“Dual Agency”). (b) Payment to Brokers: Upon execution and delivery of this Lease by both Parties and clearing of the base rent check for August 2009, 
 Lessor shall pay to the Broker the fee agreed to in their separate written agreement (or if there is no such agreement, the
sum of $275, 000.00 or % of the total Base Rent) for the brokerage services rendered by the Brokers. 
 1.10
Guarantor. The obligations of the Lessee under this Lease are to be guaranteed by N/A 
 (“Guarantor”).
(See also Paragraph 37) 
 1.11 Attachments. Attached hereto are the following, all of which constitute a part of
this Lease: 
 an Addendum consisting of Paragraphs 1 through 15; 
 a plot plan depicting the Premises attached as Exhibit A; 
 a current set of the Rules and Regulations attached as Exhibit B; 
 a Work Letter; 
 other (specify): 
 2. Premises. 
 2.1 Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the rental,
and 
 upon all of the terms, covenants and conditions set forth in this Lease. Unless otherwise provided herein,
any statement of size set forth in this Lease, 
 or that may have been used in calculating Rent, is an
approximation which the Parties agree is reasonable and any payments based thereon are not 
 subject to revision
whether or not the actual size is more or less. Note: Lessee is advised to verify the actual size prior to executing this Lease. 
 2.2 Condition. Lessor shall deliver the Premises to Lessee broom clean and free of debris on the Commencement Date or the Early Possession Date, whichever first occurs (“Start Date”), and, so long as the required
service contracts described in Paragraph 7.1(b) below are obtained by Lessee and in effect within thirty days following the Start Date, warrants that the existing electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air
conditioning systems (“HVAC”), loading doors, sump pumps, if any, and all other such elements in the Premises, other than these constructed by Lessee, shall be in good operating condition on said date, that the structural elements of the
roof, bearing walls and foundation of any buildings on the Premises (the “Building”) shall be free of material defects, and that the Premises do not contain hazardous levels of any mold of fungi defined as toxic under applicable state or
federal law. If a non compliance with said warranty exists as of the Start Date, or if one of such systems or elements should malfunction or fail within the appropriate warranty period, Lessor shall, as Lessor’s sole obligation with respect to
such matter, except as otherwise provided in this Lease, promptly after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, malfunction or failure, rectify same at Lessor’s expense.
The warranty periods shall be as follows: (i) 6 months as to the HVAC systems, and (ii) 30 days as to the remaining systems and other elements of the Building. If Lessee does not give Lesser the required notice within the appropriate warranty
period, correction of any such non compliance, malfunction or failure shall be the obligation of Lessee at Lessee’s sole cost and expense. 
 2.3 Compliance. Lessor warrants that to the best of its knowledge the improvements on the Premises Lessee shall at its sole cost cause the Premises to comply with the building codes,
applicable laws, covenants or restrictions of record, regulations, and ordinances (“Applicable Requirements”) applicable to the Premises, that were in effect at the time that each improvement, or portion thereof, was constructed. Said
warranty does not apply to the use to which Lessee will put the Premises, modifications which may be required by the Americans with Disabilities Act or any similar laws as a result of Lessee’s use (see Paragraph 50), or to any Alterations or
Utility Installations (as defined in Paragraph 7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible for determining whether or not the Applicable Requirements, and especially the zoning, are appropriate for Lessee’s intended use,
and acknowledges that past uses of the Premises may no longer be allowed. If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided, promptly after receipt of written notice from Lessee setting forth with
specificity the nature and extent of such non-compliance, rectify the same at Lessor’s expense. If Lessee does not give Lessor written notice of a non-compliance with this warranty within 6 months following the Start Date, correction of that
non-compliance shall be the obligation of Lessee at Lessee’s sole cost and expense. If the Applicable Requirements are hereafter changed so as to require during the term of this Lease the construction of an addition to or an alteration of the
Premises and/or Building, the remediation of any Hazardous Substance, or the reinforcement or other physical modification of the Unit, Premises and/or Building (“Capital Expenditure”), Lessor and Lessee shall allocate the cost of such work
as follows: 
 (a) Subject to Paragraph 2.3(c) below, if such Capital Expenditures are required as a result of
the specific and unique use of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof, provided, however that if such Capital Expenditure is required during the last 2 years of this
Lease and the cost thereof exceeds 6 months’ Base Rent, Lessee may instead terminate 
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 this Lease
unless Lessor notifies Lessee, in writing, within 10 days after receipt of Lessee’s termination notice that Lessor has elected to pay the difference between the actual cost thereof and an amount equal to 6 months’ Base Rent. If Lessee
elects termination, Lessee shall immediately cease the use of the Premises which requires such Capital expenditure and deliver to Lessor written notice specifying a termination date at least 90 days thereafter. Such termination date shall, however,
in no event be earlier than the last day that Lessee could legally utilize the Premises without commencing such Capital Expenditure. 
 (b) if such Capital Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as, governmentally mandated seismic modifications), then Lessor shall pay for such Capital Expenditure and
Lessee shall only be obligated to pay, each month during the remainder of the term of this Lease, on the date that on which the Base Rent is due, an amount equal to 144th of the portion of such cost reasonably attributable to the Premises. Lessee
shall pay interest on the balance but may prepay its obligation at any time. if, however, such Capital expenditure is required during the last 2 years of this Lease or if Lessor reasonably determines that is not economically feasible to pay its
share thereof, Lessor shall have the option to terminate this Lease upon 90 days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within 10 days after receipt of Lessor’s termination notice that Lessee will pay for such
Capital Expenditure. If Lessor does not elect to terminate, and fails to tender its share of any such Capital Expenditure, Lessee may advance such funds and deduct same, with interest, from Rent until Lessor’s share of such costs have been
fully paid. If Lessee is unable to finance Lessor’s share, or if the balance of the Rent due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee on an offset basis, Lessee shall have the right to terminate
this Lease upon 30 days written notice to Lessor. 
 2.4 Acknowledgements. Lessee acknowledges that: (a) it has
been advised by Lessor and/or Brokers to satisfy itself with respect to 
 the condition of the Premises
(including but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable Requirements and the Americans with Disabilities Act), and their suitability for Lessee’s intended
use, (b) Lessee has made such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate to its occupancy of the Premises, and (c) neither Lessor, nor Lessor’s agents, nor
Brokers have made any oral or written representations or warranties with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that: (i) Brokers have made no representations, promises or warranties
concerning Lessee’s to honor the Lease or suitability to occupy the Premises, and (ii) it is Lessor’s sole responsibility to investigate the financial capability and/or suitability of all proposed tenants. 
 2.5 Lessee as Prior Owner/Occupant. The warranties made by Lessor in Paragraph 2 shall be of no force or effect if
immediately prior to the Start Date Lessee was the owner or occupant of the Premises. In such event, Lessee shall be responsible for any necessary corrective work. 
 3. Term. 
 3.1 Term. The commencement Date,
Expiration Date Original Term of this Lease are as specified in Paragraph 1.3. 
 3.2 Early Possession. If Lessee
totally or partially occupies the Premises prior to the commencement Date, the obligation to pay base rent shall be abated for the period of such early possession. All other terms of this Lease (including but not limited to the obligations to pay
Real Property taxes and insurance Premiums and to maintain the Premises) shall be in effect during such period. Any such early possession shall not affect the Expiration Date. 
 3.3 Delay in Possession. Lessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises
to Lessee by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession by such date, lessor shall not be subject to any liability therefor, nor shall such failure affect the validity of this Lease. Lessee shall not,
however, be obligated to pay Rent of perform its other obligations until Lessor delivers possession of the Premises and any period of rent abatement that Lessee would otherwise have enjoyed shall run from the date of delay caused by the acts or
omissions of Lessee. If possession is not delivered within 60 days after the commencement Date, Lessee may, at its option, by notice in writing within 10 days after the end of such 60 day period, cancel this Lease, in which event the Parties shall
be discharged from all obligations hereunder. If such written notice is not received by Lessor within said 10 day period, Lessee’s right to cancel shall terminate. If possession of the Premises is not delivered within 120 days after the
Commencement Date, this Lease shall terminate unless other agreements are reached between lessor and Lessee, in writing. 
 3.4 Lessee Compliance. Lessor shall not be required to deliver possession of the Premises to Lessee until Lessee complies with its obligation to provide evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee
shall be required to perform all of its 
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 obligations
under this Lease from and after the Start Date, Including the payment of Rent, notwithstanding Lessor’s election to withhold possession 
 pending receipt of such evidence of insurance. Further, if Lessee is required to perform any other conditions prior to or concurrent with the Start Date, the Start Date shall occur but
Lessor may elect to withhold possession until such conditions are satisfied. 
 4. Rent. 
 4.1. Rent Defined. All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security
Deposit) are deemed to be rent (“Rent”). 
 4.2 Payment. Lessee shall cause payment of Rent to be
received by Lessor in lawful money of the United States, without offset or deduction (except as specifically permitted in this Lease), on or before the day on which it is due. All monetary amounts shall be rounded to the nearest whole dollar. In the
event that any invoice prepared by Lessor is inaccurate such inaccuracy shall not constitute a waiver and Lessee shall be obligated to pay the amount set forth in this Lease. Rent for any period during the term hereof which is for less than one full
calendar month shall be prorated based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time to time designate in writing.
Acceptance of a payment which is less than the amount then due shall not be a waiver of Lessors rights to the balance of such Rent, regardless of Lessor’s endorsement of any check so stating. In the event that any check, draft, or other
instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee agrees to pay to Lessor the sum of $25 in addition to any Late Charge and Lessor, at its option, may require all future Rent be paid by cashier’s check.
Payments will be applied first to accrued late charges and attorney’s fees, second to accrued interest, then to Base Rent and Common Area Operating Expenses, and any remaining amount to any other outstanding charges or costs. 
 4.3 Association Fees. In addition to the Base Rent, Lessee shall pay to Lessor each month an amount equal to any owner’s
association or condominium fees levied or assessed against the Premises. Said monies shall be paid at the same time and in the same manner as the Base Rent. 
 5. Security Deposit. Lessee shall deposit with Lessor upon execution hereof the Security Deposit as security for Lessee’s faithful performance of its obligations under this Lease. If
Lessee fails to pay Rent, or otherwise Defaults under this Lease, Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount due already due Lessor, for Rents which will be due in the future, and/ or to
reimburse or compensate Lessor for any liability, expense, loss or damage which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of the Security Deposit, Lessee shall within 10 days after written request
therefor deposit monies with Lessor sufficient to restore said Security Deposit to the full amount required by this Lease. If the Base Rent increases during the term of this Lease, Lessee shall, upon written request from Lessor, deposit additional
monies with Lessor so that the total amount of the Security Deposit shall at all times bear the same proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Agreed Use be amended to accommodate
a material change in the business of Lessee or to accommodate a sublessee or assignee, Lessor shall have the right to increase the Security Deposit to the extent necessary, in Lessor’s reasonable judgment, to account for any increased wear and
tear that the Premises may suffer as a result thereof. If a change in control of Lessee occurs during this Lease and following such change the financial condition of Lessee is, in Lessor’s reasonable judgment, significantly reduced, Lessee
shall deposit such additional monies with Lessor as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level based on such change in financial condition. Lessor shall not be required to keep the Security Deposit
separate from its general accounts. Within 90 days after the expiration or termination of this Lease, Lessor shall return that portion of the Security Deposit not used or applied by Lessor. No part of the Security Deposit shall be considered to be
held in trust, to bear interest or to be prepayment for any monies to be paid by Lessee under this Lease. 
 6.
Use. 
 6.1 Use. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use which
is reasonably comparable thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is unlawful, creates damage, waste or a nuisance, or that disturbs occupants of or causes damage to neighboring
premises or properties. Other than guide, signal and seeing eye dogs, Lessee shall not keep or allow in the Premises any pets, animals, birds, fish, or reptiles. Lessor shall not unreasonably withhold or delay its consent to any written request for
a modification of the Agreed Use, so long as the same will not impair the structural integrity of the improvements on the Premises or the mechanical or electrical systems therein, and /or is not significantly more burdensome to the Premises. If
Lesser elects to withhold consent, Lessor shall within 7 days after such request give written notification of same, which notice shall include an explanation of Lessor’s objections to the change in the Agreed Use. 
 6.2 Hazardous Substances. 
 (a) Reportable Uses Require Consent. The term “Hazardous Substance” as used in this Lease shall mean any product, 
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 substance, or
waste whose presence, use, manufacture, disposal, transportation, or release, either by Itself or in combination with other materials expected to be on the Premises, is either: (i) potentially injurious to the public health, safety or welfare, the
environment or the Premises, (ii) regulated or monitored by any governmental authority, or (iii) a basis for potential liability of Lessor to any governmental agency or third party under any applicable statute or common law theory. Hazardous
Substances shall include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by-products or fractions thereof. Lessee shall not engage in any activity in or on the Premises which constitutes a Reportable Use
of Hazardous Substances without the express prior written consent of Lessor and timely compliance (at Lessee’s expense) with all Applicable Requirements. “Reportable Use” shall mean (i) the installation or use of any above or below
ground storage tank, (ii) the generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with respect to which a report, notice, registration or business plan is required to be filed
with, any governmental authority, and/or (iii) the presence at the Premises of a Hazardous Substance with respect to which any Applicable Requirements requires that a notice be given to persons entering or occupying the Premises or neighboring
properties. Notwithstanding the foregoing, Lessee may use any ordinary and customary materials reasonably required to be used in the normal course of the Agreed Use, ordinary office supplies (copier toner, liquid paper, glue, etc.) and common
household cleaning materials, so long as such use is in compliance with all Applicable Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk of contamination or damage or expose Lessor
to any liability therefor. In addition, Lessor may condition its consent to any Reportable Use upon receiving such additional assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises and/or the environment against
damage, contamination, injury and/or liability, including, but not limited to, the installation (and removal on or before Lease expiration or termination) of protective modifications (such as concrete encasements) and/or increasing the Security
Deposit. 
 (b) Duty to Inform Lessor. If Lessee knows, or has reasonable cause to believe, that a Hazardous
Substance has come to be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give written notice of such fact to Lessor, and provide Lessor with a copy of any report, notice, claim
or other documentation which it has concerning the presence of such Hazardous Substance. 
 (c) Lessee
Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under, or about the Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Lessee’s expense, comply with
all Applicable Requirements and take all investigatory and/or remedial action reasonably recommended, whether or not formally ordered or required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the
Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous Substance brought onto the Premises during the term of this Lease, by or for Lessee, or any third party.

 (d) Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and
ground lessor, if any, harmless from and against any and all loss of rents and/or damages, liabilities, judgments, claims, expenses, penalties, and attorneys’ and consultants’ fees arising out of or involving any Hazardous Substance
brought onto the Premises by or for Lessee, or any third party (provided, however, that Lessee shall have no liability under this Lease with respect to underground migration of any Hazardous Substance under the Premises from adjacent properties not
caused or contributed to by Lessee). Lessee’s obligations shall include, but not be limited to, the effects of any contamination or injury to person, property or the environment created or suffered by Lessee, and the cost of investigation,
removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. No termination, cancellation or release agreement entered into by Lessor and Lessee shall release Lessee from its obligations under
this Lease with respect to Hazardous Substances, unless specifically so agreed by Lessor in writing at the time of such agreement. 
 (e) Lessor Indemnification. Lessor and its successors and assigns shall indemnify, defend, reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages, including the cost
of remediation, which result from Hazardous Substances which existed on the Premises prior to Lessee’s occupancy or which are caused by the gross negligence or willful misconduct of Lessor, its agents or employees. Lessor’s obligations. as
and when required by the Applicable Requirements, shall include, but not be limited to, the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease. 
 (f) Investigations and Remediations. Lessor shall retain the responsibility and pay for any investigations or remediation
measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises prior to Lessee’s occupancy, unless such remediation measure is required as a result of Lessee’s use
(including “Alterations”, as defined in paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall cooperate fully in any such activities at the request of Lessor, including allowing
Lessor and Lessor’s agents to have reasonable access to the Premises at reasonable times in order to carry out Lessor’s investigative and remedial responsibilities. 
 (g) Lessor Termination Option. If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term of this
Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof required by the Applicable 
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 Requirements
and this Lease shall continue In full force and effect, but subject to Lessor’s rights under Paragraph 6.2(d) and Paragraph 13), Lessor 
 may, at Lessor’s option, either (i) investigate and remediate such Hazardous Substance Condition, if required, as soon as reasonably possible at Lessor’s expense, in which event
this Lease shall continue in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds 12 times the then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee, within 30 days after receipt
by Lessor of knowledge of the occurrence of such Hazardous Substance Condition, of Lessor’s desire to terminate this Lease as of the date 60 days following the date of such notice, In the event Lessor elects to give a termination notice, Lessee
may, within 10 days thereafter, give written notice to Lessor of Lessee’s commitment to pay the amount by which the cost of the remediation of such Hazardous Substance Condition exceeds an amount equal to 12 times the then monthly Base Rent or
$100,000, whichever is greater. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days following such commitment. In such event, this Lease shall continue in full force and effect, and Lessor shall proceed to
make such remediation as soon as reasonably possible after the required funds are available. If Lessee does not give such notice and provide the required funds or assurance thereof within the time provided, this Lease shall terminate as of the date
specified in Lessor’s notice of termination. 
 6.3 Lessees Compliance with Applicable Requirements. Except
as otherwise provided in this Lease, Lessee shall, at Lessee’s sole expense, fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the requirements of any applicable fire insurance underwriter or rating
bureau, and the recommendations of Lessor’s engineers and/or consultants which relate in any manner to the such Requirements, without regard to whether such Requirements are now in effect or become effective after the Start Date. Lessee shall,
within 10 days after receipt of Lessor”s written request, provide Lessor with copies of all permits and other documents, and other information evidencing Lessee’s compliance with any Applicable Requirements specified by Lessor, and shall
immediately upon receipt, notify Lessor in writing (with copies of any documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving the failure of Lessee or the Premises to comply
with any Applicable Requirements. Likewise, Lessee shall immediately give written notice to Lessor of: (i) any water damage to the Premises and any suspected seepage, pooling, dampness or other condition conducive to the production of mold; or (ii)
any mustiness or other odors that might indicate the presence of mold in the Premises. 
 6.4 Inspection;
Compliance. Lessor and Lessor”s “Lender” (as defined in Paragraph 30) and consultants shall have the right to enter into Premises at any time, in the case of an emergency, and otherwise at reasonable times after reasonable notice, for
the purpose of inspecting the condition of the Premises and for verifying compliance by Lessee with this Lease. The cost of any such inspections shall be paid by Lessor, unless a violation of Applicable Requirements, or a Hazardous Substance
Condition (see paragraph 9.1) is found to exist or be imminent, or the inspection is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor for the cost of such inspection, so long as such
inspection is reasonably related to the violation or contamination. In addition, Lessee shall provide copies of all relevant material safety data sheets (MSDS) to Lessor within 10 days of the receipt of a written request therefor. 
 7. Maintenance; Repairs, Utility Installations; Trade Fixtures and Alterations. 
 7.1 Lessee’s Obligations. 
 (a) In General. Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3 (Lessee’s Compliance with Applicable Requirements), 7.2 (Lessor’s Obligations), 9
(Damage or Destruction), and 14 (Condemnation), Lessee shall, at Lessee’s sole expense, keep the Premises, Utility Installations (intended for Lessee’s exclusive use, no matter where located), and Alterations in good order, condition and
repair (whether or not the portion of the Premises requiring repairs, or the means of repairing the same, are reasonably or readily accessible to Lessee, and whether or not the need for such repairs occurs as a result of Lessee’s use, any prior
use, the elements or the age of such portion of the Premises), including, but not limited to, all equipment or facilities, such as plumbing, HVAC equipment, electrical, lighting facilities, elevators, boilers, pressure vessels, fire protection
system, fixtures, walls (interior and exterior), foundations, ceilings, roofs, roof drainage systems, floors, windows, doors, plate glass, skylights, landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks and parkways
located in, on, or adjacent to the Premises. Lessee, in keeping the Premises in good order, condition and repair. shall exercise and perform good maintenance practices, specifically including the procurement and maintenance of the service contracts
required by Paragraph 7.1(b) below. Lessee’s obligations shall include restorations, replacements or renewals when necessary to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair.
Lessee shall, during the term of this Lease, keep the exterior appearance of the Building in a first-class condition (including, e.g. graffiti removal) consistent with the exterior appearance of other similar facilities of comparable age and size in
the vicinity, including, when necessary, the exterior repainting of the Building. 
 (b) Service Contracts.
Lessee shall, at Lessee’s sole expense, procure and maintain contracts, with copies to Lessor, in customary form and substance for, and with contractors specializing and experienced in the maintenance of the following equipment and
improvements, if any, if and when installed on the Premises: (i) HVAC equipment, (ii) boiler, and pressure vessels, (iii) fire extinguishing systems, including fire alarm and/or smoke detection, (iv) landscaping and irrigation systems, (v) roof
covering and drains, and (vi) clarifiers, and (vii) d elevators. 
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 However, Lessor
reserves the right, upon notice to Lessee, to procure and maintain any or all of such service contracts, and Lessee shall reimburse 
 Lessor, upon demand, for the cost thereof. 
 (c) Failure to Perform. If Lessee fails to
perform Lessee’s obligations under this Paragraph 7.1, Lessor may enter upon the Premises after 10 days’ prior written notice to Lessee (except in the case of an emergency, in which case no notice shall be required), perform such
obligations on Lessee’s behalf, and put the Premises in good order, condition and repair, and Lessee shall promptly pay to Lessor a sum equal to 115% of the cost thereof. 
 (d) Replacement. Subject to Lessee’s indemnification of Lesser as set forth in Paragraph 8.7 below, and without
relieving lessee of liability resulting from Lessee’s failure to exercise and perform good maintenance practices, if an item described in Paragraph 7.1(b) cannot be repaired other than at a cost which is in excess of 50% of the cost of
replacing such item, then such item shall be replaced by Lesser, and the cost thereof shall be ported between the Parties and Lessee shall only be obligated to pay, each month during the remainder of the term of this Lease, on the date on which Base
Rent is due, an amount equal to the product of multiplying the cost of such replacement by a fraction, the numerator of which is one, and the denominator of which is 144 (ie. 1/144th of the cost per month). Lessee shall pay interest on the
unamortized balance but may prepay its obligation at any time 
 7.2 Lessor’s Obligations. Subject to the
provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 9 (Damage or Destruction) and 
 14 (Condemnation),
it is intended by the Parties hereto that Lessor have no obligation, in any manner whatsoever, to repair and maintain the Premises, or the equipment therein, all of which obligations are intended to be that of the Lessee. It is the intention of the
Parties that the terms of this Lease govern the respective obligations of the Parties as to maintenance and repair of the Premises, and they expressly waive the benefit of any statute now or hereafter in effect to the extent it is inconsistent with
the terms of this Lease. 
 7.3 Utility Installations; Trade Fixtures; Alterations. 
 (a) Definitions. The term “Utility Installations” refers to all floor and window coverings, air and/or vacuum
lines, power panels, electrical distribution, security and fire protection systems, communication cabling, lighting fixtures, HVAC equipment, plumbing, and fencing in or on the Premises. The term “Trade Fixtures” shall mean Lessee’s
machinery and equipment that can be removed without doing material damage to the Premises. The term “Alterations” shall mean any modification of the improvements, other than Utility Installations or Trade Fixtures, whether by addition or
deletion. “Lessee Owned Alterations and/or Utility Installations” are defined as Alterations and/or Utility Installations made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a). 
 (b) Consent. Lessee shall not make any Alterations or Utility Installations to the Premises without Lessor’s prior
written consent, which may be withheld in Lessor’s sole and absolute discretion. Lessee may, however, make non-structural Utility Installations to the interior of the Premises (excluding the roof) without such consent but upon notice to Lessor,
as long as they are not visible from the outside, do not involve puncturing, relocating or removing the roof or any existing walls, will not affect the electrical, plumbing, HVAC, and/or life safety systems, and the cumulative cost thereof during
this Lease as extended does not exceed a sum equal to $25,000 per Job 3 month’s Base Rent in the aggregate or a sum equal to one month’s Base Rent in any one year. Notwithstanding the foregoing, Lessee shall not make or permit any roof
penetrations and/or install anything on the roof without the prior written approval of Lessor. Lessor may, as a precondition to granting such consent approval, require Lessee to utilize a contractor chosen and/or approved by Lessor. Any Alterations
or Utility Installations that Lessee shall desire to make and which require the consent of the Lessor shall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon Lessee’s: (i) acquiring all
applicable governmental permits, (ii) furnishing Lessor with copies of both the permits and the plans and specifications prior to commencement of the work, and (iii) compliance with all conditions of said permits and other Applicable Requirements in
a prompt and expeditious manner. Any Alterations or Utility Installations shall be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with as-built plans and specifications. For
work which costs an amount in excess of one month’s Base Rent, Lessor may condition its consent upon Lessee providing a lien and completion bond in an amount equal to 150% of the estimated cost of such Alteration or Utility Installation and/or
upon Lessee’s posting an additional Security Deposit with Lessor. 
 (c) Liens; Bonds. Lessee shall pay,
when due, all claims for labor or materials furnished or alleged to have been furnished to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic’s or materialmen’s lien against the Premises or any
interest therein. Lessee shall give Lessor not less than 10 days notice prior to the commencement of any work in, on or about the Premises, and Lessor shall have the right to post notices of non-responsibility. If Lessee shall contest the validity
of any such lien, claim or demand, then Lessee shall, at its sole expense defend and protect itself, Lessor and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement
thereof. If Lessor shall require, Lessee shall furnish a surety bond in an amount equal to 150% of the amount of such contested lien, claim or demand, indemnifying Lessor against liability for the same. If Lessor elects to participate in any such
action, Lessee shall pay Lessor’s attorneys’ fees and costs. 
 7.4 Ownership; Removal; Surrender; and
Restoration. 
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 (a) Ownership.
Subject to Lessor’s right to require removal or elect ownership as hereinafter provided, all Alterations and Utility Installations made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at any time,
elect in writing to be the owner of all or any specified part of the Lessee Owned Alterations and Utility Installations. Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the
expiration or termination of this Lease, become the property of Lessor and be surrendered by Lessee with the Premises. 
 (b) Removal. By delivery to Lessee of written notice from Lessor not earlier than 90 and not later than 30 days prior to the end of the term of this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility
Installations be removed by the expiration or termination of this Lease. Lessor may require the removal at any time of all or any part of any Lessee Owned Alterations or Utility Installations made without the required consent. 
 (c) Surrender; Restoration. Lessee shall surrender the Premises by the Expiration Date or any earlier termination date, with
all of the improvements, parts and surfaces thereof broom clean and free of debris, and in good operating order, condition and state of repair, ordinary wear and tear excepted. “Ordinary wear and tear” shall not include any damage or
deterioration that would have been prevented by good maintenance practice. Notwithstanding the foregoing, if this Lease is for 12 months or less, then Lessee shall surrender the Premises in the same condition as delivered to Lessee on the Start Date
with NO allowance for ordinary wear and tear. Lessee shall repair any damage occasioned by the installation, maintenance or removal of Trade Fixtures, Lessee owned Alterations and/or Utility Installations, furnishings, and equipment as well as the
removal of any storage tank installed by or for Lessee. Lessee shall completely remove from the Premises any and all Hazardous Substances brought onto the Premises by or for Lessee, or any third party (except Hazardous Substances which were
deposited via underground migration from areas outside of the Premises, or if applicable, the Premises) even if such removal would require Lessee to perform or pay for work that exceeds statutory requirements. Trade Fixtures shall remain the
property of Lessee and shall be removed by Lessee. Any personal property of Lessee not removed on or before the Expiration Date or any earlier termination date shall be deemed to have been abandoned by Lessee and may be disposed of or retained by
Lessor as Lessor may desire. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) without the express written consent of Lessor shall constitute a holdover under the provisions of Paragraph 26 below. 
 8. Insurance; Indemnity. 
 8.1 Payment For Insurance. Lessee shall pay for all insurance required under Paragraph 8.2(a) and 8.4 except to the extent of the cost attributable to liability insurance carried by Lessor
under Paragraph 8.2(b) in excess of $2,000,000 per occurrence. Premiums for policy periods commencing prior to or extending beyond the Lease term shall be prorated to correspond to the Lease term. Payment shall be made by Lessee to Lessor within 10
days following receipt of an invoice. 
 8.2 Liability Insurance. 
 (a) Carried by Lessee. Lessee shall obtain and keep in force a Commercial General Liability policy of insurance protecting
Lessee and Lessor as an additional insured against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such
insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $4 $2,000,000 per occurrence with an annual aggregate of not less than $2 $5,000,000. Lessee shall add Lessor as an additional insured by means of
an endorsement at least as broad as the Insurance Service Organization’s “Additional Insured-Managers or Lessors of Premises” Endorsement. The policy shall not contain any intra-insured exclusions as between insured persons or
organizations, but shall include coverage for liability assumed under this Lease as an “insured contract” for the performance of Lessee’s indemnity obligations under this Lease. The limits of said insurance shall not, however, limit
the liability of Lessee nor relieve Lessee of any obligation hereunder. Lessee shall provide an endorsement on its liability policy(ies) which provides that its insurance shall be primary to and not contributory with any similar insurance carried by
Lessor, whose insurance shall be considered excess insurance only. 
 (b) Carried by Lessor. Lessor shall may
maintain liability insurance as described in Paragraph 8.2(a), in addition to, and not in lieu of, the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein, 
 8.3 Property Insurance - Building, Improvements and Rental Value. 
 (a) Building and Improvements. The Insuring Party shall may obtain and keep in force a policy or policies in the name of
Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender insuring loss or damage to the Premises, excluding all tenant improvements, lessee’s personal property, Trade Fixtures, and Alterations and Utility Installations. The
amount of such insurance shall be equal to the full insurable replacement cost of the Premises, as the same shall exist from time to time, or the amount required by any Lender, but in no event more than the commercially reasonable and available
insurable value thereof. If Lessor is the Insuring Party, however, Lessee Owned Alterations and Utility installations, Trade Fixtures, and Lessee’s personal property shall be insured by Lessee under Paragraph 8.4 rather than by Lessor. If the
coverage is available and commercially appropriate, such policy or policies shall insure against all risks of direct physical loss or damage (except the perils of flood and/or 
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 earthquake
unless required by a Lender), including coverage for debris removal and the enforcement of any Applicable Requirements requiring the upgrading, demolition, reconstruction or replacement of any portion of the Premises as the result of a covered loss,
Said policy or policies shall also contain an agreed valuation provision in lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an increase in the annual property insurance coverage amount by a factor of not
less than the adjusted U.S. Department of Labor Consumer Price Index for All Urban Consumers for the city nearest to where the Premises are located. If such insurance coverage has a deductible clause, the deductible amount shall not exceed $1,000
per occurrence, and Lessee shall be liable for such deductible amount in the event of an Insured Loss. 
 (b)
Rental Value. The Insuring Party may obtain and keep in force a policy or policies in the name of Lessor with loss payable to Lessor and any Lender, insuring the loss of the full Rent for one year with an extended period of indemnity for an
additional 180 days (“Rental Value insurance”. Said insurance shall contain an agreed valuation provision in lieu of any coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent otherwise
payable by Lessee, for the next 12 month period. Lessee shall be liable for any deductible amount in the event of such loss. 
 (c) Adjacent Premises. If the Premises are part of a larger building, or of a group of buildings owned by Lessor which are adjacent to the Premises, the Lessee shall pay for any increase in the premiums for the property insurance of
such building or buildings if said increase is caused by Lessee’s acts, omissions, use or occupancy of the Premises. 
 8.4 Lessee’s Property; Business Interruption Insurance. 
 (a) Property Damage. Lessee shall
obtain and maintain insurance coverage on all of Lessee’s personal property, Trade Fixtures, 
 and Lessee
Owned Alterations and Utility Installations. Such insurance shall be full replacement cost coverage with a deductible of not to exceed $1,000 per occurrence. The proceeds from any such insurance shall be used by Lessee for the replacement of
personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations. Lessee shall provide Lessor with written evidence that such insurance is in force. 
 (b) Business Interruption. Lessee shall obtain and maintain loss of income and extra expense insurance in amounts as will
reimburse Lessee for direct or indirect loss of earnings attributable to all perils commonly insured against by prudent lessees in the business of Lessee or attributable to prevention of access to the Premises as a result of such perils. 

(c) No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of
insurance specified herein are adequate to cover Lessee’s property, business operations or obligations under this Lease. 
 8.5 Insurance Policies. Insurance required herein shall be by companies duly licensed or admitted to transact business in the state where the Premises are located, and maintaining during the policy term a “General Policyholders
Rating” of at least A-, VI, as set forth in the most current issue of “Best’s Insurance Guide”, or such other rating as may be required by a Lender. Lessee shall not do or permit to be done anything which invalidates the required
insurance policies. Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies of such insurance or certificates evidencing the existence and amounts of the required insurance. No such policy shall be cancelable or subject
to modification except after 30 days prior written notice to Lessor. Lessee shall, at least 10 days prior to the expiration of such policies, furnish Lessor with evidence of renewals or “insurance binders” evidencing renewal thereof, or
Lessor may order such insurance and charge the cost thereof to Lessee, which amount shall be, payable by Lessee to Lessor upon demand. Such policies shall be for a term of at least one year, or the length of the remaining term of this Lease,
whichever is less. If either Party shall fail to procure and maintain the insurance required to be carried by it, the other Party may, but shall not be required to, procure and maintain the same. 
 8.6 Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor each hereby release and relieve
the other, and waive their entire right to recover damages against the other, for loss of or damage to its property arising out of or incident to the perils required to be insured against herein. The effect of such releases and waivers is not
limited by the amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective property damage insurance carriers waive any right to subrogation that such companies may have against Lessor
or Lessee, as the case may be, so long as the insurance is not invalidated thereby. 
 8.7 Indemnity. Except for
Lessor’s gross negligence or willful misconduct, Lessee shall indemnify, protect, defend and hold harmless the Premises, Lessor and its agents, Lessor’s master or ground lessor, partners and Lenders, from and against any and all claims,
loss of rents and/or damages, liens, judgments, penalties, attorneys’ and consultants’ fees, expenses and/or liabilities arising out of, involving, or in connection with, the use and/or occupancy of the Premises by Lessee. If any action or
proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend the same at Lessee’s expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense.
Lessor need not have first paid any such claim in order to be defended or indemnified. 
 8.8 Exemption of Lessor
and its Agents from Liability. Notwithstanding the negligence or breach of this Lease by Lessor or its agents, neither Lessor nor its agents shall be liable under any circumstances for: (i) injury or damage to the person or goods, wares, merchandise
or other property of Lessee, Lessee’s employees, contractors, invitees, customers, or any other person in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water or rain, indoor air
quality, the presence of mold or from the breakage, leakage, 
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 obstruction or
other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or lighting fixtures, or from any other cause, whether the said injury or damage results from conditions arising upon the Premises or upon other portions of the building of
which the Premises are a part, or from other sources or places, (ii) any damages arising from any act or neglect of any other tenant of Lessor or from the failure of Lessor or its agents to enforce the provisions of any other lease in the Project,
or (iii) injury to Lessees business or for any loss of income or profit therefrom. Instead, it is intended that Lessee’s sole recourse in the event of such damages or injury be to file a claim on the insurance policy(ies) that Lessee is
required to maintain 
 pursuant to the provisions of paragraph 8. 
 8.9 Failure to Provide Insurance. Lessee acknowledges that any failure on its part to obtain or maintain the insurance
required herein will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely difficult to ascertain. Accordingly, for any month or portion thereof that Lessee does not
maintain the required insurance and/or does not provide Lessor with the required binders or certificates evidencing the existence of the required insurance, the Base Rent shall be automatically increased, without any requirement for notice to
Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater. The parties agree that such increase in Base Rent represents fair and reasonable compensation for the additional risk/costs that Lessor will incur by
reason of Lessee’s failure to maintain the required insurance. Such increase in Base Rent shall in no event constitute a waiver of Lessee’s Default or Breach with respect to the failure to maintain such insurance, prevent the exercise of
any of the other rights and remedies granted hereunder, nor relieve Lessee of its obligation to maintain the insurance specified in this Lease. 
 9. Damage or Destruction. 
 9.1 Definitions.

 (a) “Premises Partial Damage” shall mean damage or destruction to the improvements on the Premises,
other than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 6 months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing within 30 days from the date of the damage or
destruction as to whether or not the damage is Partial or Total. Notwithstanding the foregoing, Premises Partial Damage shall not include damage to windows, doors, and/or other similar items which Lessee has the responsibility to repair or replace
pursuant to the provisions of Paragraph 7.1. 
 (b) “Premises Total Destruction” shall mean damage or
destruction to the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in 6 months or less from the date of the damage or destruction. Lessor shall notify Lessee in writing
within 30 days from the date of the damage or destruction as to whether or not the damage is Partial or Total. 
 (c) “Insured Loss” shall mean damage or destruction to improvements on the Premises, other than Lessee Owned Alterations and Utility Installations and Trade Fixtures, which was caused by an event required to be covered by
the insurance described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved. 
 (d) “Replacement Cost” shall mean the cost to repair or rebuild the improvements owned by Lessor at the time of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and
upgrading required by the operation of Applicable Requirements, and without deduction for depreciation. 
 (e)
“Hazardous Substance Condition” shall mean the occurrence or discovery of a condition involving the presence of, or a contamination by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the Premises which requires
repair, remediation, or restoration. 
 9.2 Partial Damage - Insured Loss. If a Premises Partial Damage that is
an Insured Loss occurs, then Lessor shall, at Lessor’s expense, repair such damage (but not Lessee’s Trade Fixtures or Lessee Owned Alterations and Utility Installations) as soon as reasonably possible and this Lease shall continue in full
force and effect; provided, however, that Lessee shall, at Lessor’s election, make the repair of any damage or destruction the total cost to repair of which is $10,000 or less, and, in such event, Lessor shall make any applicable insurance
proceeds available to Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are not sufficient to effect such repair, the Insuring Party shall promptly
contribute the shortage in proceeds (except as to the deductible which is Lessee’s responsibility) as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, by reason of the unique nature of
the improvements, full replacement cost insurance coverage was not commercially reasonable and available, Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises unless
Lessee provides Lessor with the funds to cover same, or adequate assurance thereof, within 10 days following receipt of written notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof within said 10
day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall remain in full force and effect. If such funds or assurance are not received, Lessor may nevertheless elect by written
notice to Lessee within 10 days thereafter to: (i) make such restoration and repair as is commercially reasonable with Lessor paying any shortage in proceeds, in which case this Lease shall remain in full force and effect, or (ii) have this Lease
terminate 30 days thereafter. Lessee shall 
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 not be entitled
to reimbursement of any funds contributed by Lessee to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some insurance coverage, but the
net proceeds of any such insurance shall be made available for the repairs if made by either Party. 
 9.3
Partial Damage - Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by a negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessee’s expense), Lessor may either: (i)
repair such damage as soon as reasonably possible at Lessor’s expense, in which event this Lease shall continue in full force and effect, or (ii) terminate this Lease by giving written notice to Lessee within 30 days after receipt by Lessor of
knowledge of the occurrence of such damage. Such termination shall be effective 60 days following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee shall have the right within 10 days after receipt of the
termination notice to give written notice to Lessor of Lessee’s commitment to pay for the repair of such damage without reimbursement from Lessor. Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days
after making such commitment. In such event this Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible after the required funds are available. If Lessee does not make the required
commitment, this Lease shall terminate as of the date specified in the termination notice. 
 9.4 Total
Destruction.. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease shall terminate 
 60 days following such Destruction. If the damage or destruction was caused by the gross negligence or willful misconduct of Lessee, Lessor shall have the right to recover Lessor’s damages from Lessee, except as provided in
Paragraph 8.6. 
 9.5 Damage Near End of Term. If at any time during the last 6 months of this Lease there is
damage for which the cost to repair exceeds one month’s Base Rent, whether or not an Insured Loss, Lessor may terminate this Lease effective 60 days following the date of occurrence of such damage by giving a written termination notice to
Lessee within 30 days after the date of occurrence of such damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend this Lease or to purchase the Premises, then Lessee may preserve this Lease by, (a)
exercising such option and (b) providing Lessor with any shortage in insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the earlier of (i) the date which is 10 days after Lessee’s receipt of Lessor’s
written notice purporting to terminate this Lease, or (ii) the day prior to the date upon which such option expires. If Lessee duly exercises such option during such period and provides Lessor with funds (or adequate assurance thereof) to cover any
shortage in insurance proceeds, Lessor shall, at Lessor’s commercially reasonable expense, repair such damage as soon as reasonably possible and this Lease shall continue in full force and effect. If Lessee fails to exercise such option and
provide such funds or assurance during such period, then this Lease shall terminate on the date specified in the termination notice and Lessee’s option shall be extinguished. 
 9.6 Abatement of Rent; Lessee’s Remedies. 
 (a) Abatement. In the event of Premises Partial Damage or Premises Total Destruction or a Hazardous Substance Condition for which Lessee is not responsible under this Lease, the Rent
payable by Lessee for the period required for the repair, remediation or restoration of such damage shall be abated in proportion to the degree to which Lessee’s use of the Premises is impaired, but not to exceed the proceeds received from the
Rental Value insurance. All other obligations of Lessee hereunder shall be performed by Lessee, and Lessor shall have no liability for any such damage, destruction, remediation, repair or restoration except as provided herein. 
 (b) Remedies. If Lessor is obligated to repair or restore the Premises and does not commence, in a substantial and meaningful
way, such repair or restoration within 90 days after such obligation shall accrue, Lessee may, at any time prior to the commencement of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual notice,
of Lessee’s election to terminate this Lease on a date not less than 60 days following the giving of such notice. If Lessee gives such notice and such repair or restoration is not commenced within 30 days thereafter, this Lease shall terminate
as of the date specified in said notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue in full force and effect. “Commence” shall mean either the unconditional authorization of the preparation of
the required plans, or the beginning of the actual work on the Premises, whichever first occurs. 
 9.7
Termination; Advance Payments. Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in
addition, return to Lessee so much of Lessee’s Security Deposit as has not been, or is not then required to be, used by Lessor. 
 10. Real Property Taxes. 
 10.1 Definition. As used herein, the term “Real
Property Taxes” shall include any form of assessment; real estate, general, special, ordinary or extraordinary, or rental levy or tax (other than inheritance, personal income or estate taxes); improvement bond; and/or license fee imposed upon
or levied against any legal or equitable interest of Lessor in the Premises or the Project, Lessor’s right to other income therefrom, and/or Lessor’s business of leasing, by any authority having the direct or indirect power to tax and
where the funds are generated with reference to the Building address and where the proceeds so generated are to be applied by the city, county or other local taxing authority of a jurisdiction within which the Premises are 
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 located. Real
Property Taxes shall also Include any tax, fee, levy, assessment or charge, or any Increase therein:.(i) Imposed by reason of events 
 occurring during the term of this Lease, including but not limited to, a change in the ownership of the Premises, and (ii) levied or assessed on machinery or equipment provided by Lessor to Lessee pursuant to this Lease.

 10.2 Payment of Taxes, In addition to Base Rent, Lessee shall pay to Lessor an amount equal to the Real
Property Tax installment due at least 20 days prior to the applicable delinquency date. If any such installment shall cover any period of time prior to or after the expiration of termination of this Lease, Lessee’s share of such installment
shall be prorated. In the event lessee incurs a late charge on any Rent payment, Lessor may estimate the current Real Property Taxes, and require that such taxes be paid in advance to Lessor by Lessor monthly in advance with the payment of the Base
Rent. Such monthly payments shall be an amount equal to the amount of the estimated installment of taxes divided by the number of months remaining before the month in which said installment becomes delinquent, When the actual amount of the
applicable tax bill is known, the amount of such equal monthly advance payments shall be adjusted as required to provide the funds needed to pay the applicable taxes. If the amount collected by Lessor is insufficient to pay such Real Property Taxes
when due, Lessee shall pay Lessor, upon demand, such additional sum as is necessary. Advance payments may be intermingled with other moneys of Lessor and shall not bear interest. In the event of a Breach by Lessee in the performance of its
obligations under this Lease, then any such advance payments may be treated by lessor as on additional Security Deposit. 
 10.3 Joint Assessment, if the Premises are not separately assessed lessee’s liability shall be an equitable proportion of the Real Property taxes for all of the land and improvements included within the tax parcel assessed, such
proportion to be conclusively determined by lessor from the respective valuations assigned in the assessor’s work sheets or such other information as may be reasonably available. 
 10.4 Personal Property Taxes. Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon Lessee Owned
Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee. When possible, Lessee shall cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all
other personal property to be assessed and billed separately from the real property of Lessor, If any of Lessee’s said property shall be assessed with Lessor’s real property, Lessee shall pay Lessor the taxes attributable to Lessee’s
property within 10 days after receipt of a written statement setting forth the taxes applicable to Lessee’s property. 
 11. Utilities and Services. Lessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other utilities and services supplied to the Premises, together with any taxes thereon. If any such services are not
separately metered or billed to Lessee, Lessee shall pay a reasonable proportion, to be determined by Lessor, of all charges jointly metered or billed. There shall be no abatement of rent and Lessor shall not be liable in any respect whatsoever for
the inadequacy, stoppage, interruption or discontinuance of any utility or service due to riot, strike, labor dispute, breakdown, accident, repair or other cause beyond Lessor’s reasonable control or in cooperation with governmental request or
directions. 
 12. Assignment and Subletting. 
 12.1 Lessor’s Consent Required. 
 (a) Subject to paragraph 9 of the Addendum, Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or 
 encumber (collectively, “assign or assignment”) or sublet all or any part of Lessee’s interest in this Lease
or in the Premises without Lessor’s prior written consent, which may be withheld in Lessor’s sole and absolute discretion. 
 (b) Unless Lessee is a corporation and its stock is publicly traded on a national stock exchange, a change in the control of lessee shall constitute an assignment requiring consent. The transfer, on a cumulative basis, of 25
50% or more of the voting control of Lessee to persons or entities other than Dov Charney shall constitute a change in control for this purpose. 
 (c) The involvement of Lessee or its assets in any transaction, or series of transactions (by way of merger, sale, acquisition, financing, transfer, leveraged buy-out or otherwise),
whether or not a formal assignment or hypothecation of this Lease or Lessee’s assets occurs, which results or will result in a reduction of the Net Worth of Lessee by an amount greater than 25% of such Net Worth as it was represented at the
time of the execution of this Lease or at the time of the most recent assignment to which Lessor has consented, or as it exists immediately prior to said transaction or transactions constituting such reduction, whichever was or is greater, shall be
considered an assignment of this Lease to which Lessor may withhold its consent. “Net Worth of Lessee” shall mean the net worth of Lessee (excluding any guarantors) established under generally accepted accounting principles. 
 (d) An assignment or subletting without consent shall, at Lessor’s option, be a Default curable after notice per
Paragraph 13.1(c), or a noncurable Breach without the necessity of any notice and grace period, If Lessor elects to treat such unapproved assignment or subletting as a noncurable ‘Breach Lessor may either’ (i) terminate this Lease or (ii)
upon 30 days written notice increase-the monthly ‘Base Rent to 110% of the ease Rent then in effect. Further, in the event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the Premises held by Lessee shall
be subject to similar adjustment to 110% of the price previously in effect, and (ii) all fixed and non-fixed rental adjustments scheduled during the remainder of the Lease term shall be increased to 110% of the scheduled adjusted rent. 

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 (e)
Lessee’s remedy for any breach of Paragraph 12.1 by Lessor shall be limited to compensatory damages and/or injunctive relief. 
 (f) Lessor may reasonably withhold consent to a proposed assignment or subletting if Lessee is in Default at the time consent is requested. 
 (g) Notwithstanding the foregoing, allowing a de minimis portion of the Premises, ie. 20 square feet or less, to be used by a third party vendor in connection with the installation of a
vending machine or payphone shall not constitute a subletting. 
 12.2 Terms and Conditions Applicable to
Assignment and Subletting. 
 (a) Regardless of Lessor’s consent, no assignment or subletting shall: (i) be
effective without the express written assumption by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary liability of Lessee for the payment of Rent or
for the performance of any other obligations to be performed by Lessee. 
 (b) Lessor may accept Rent or
performance of Lessee’s obligations from any person other than Lessee pending approval or disapproval of an assignment. Neither a delay in the approval or disapproval of such assignment nor the acceptance of Rent or performance shall constitute
a waiver or estoppel of Lessor’s right to exercise its remedies for Lessee’s Default or Breach. 
 (c)
Lessor’s consent to any assignment or subletting shall not constitute a consent to any subsequent assignment or subletting. 
 (d) In the event of any Default or Breach by Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone else responsible for the performance of Lessee’s obligations under this Lease, including any
assignee or sublessee, without first exhausting Lessor’s remedies against any other person or entity responsible therefor to Lessor, or any security held by Lessor. 
 (e) Each request for consent to an assignment or subletting shall be in writing, accompanied by information relevant to Lessor’s determination as to the financial and operational
responsibility and appropriateness of the proposed assignee or sublessee, including but not limited to the intended use and/or required modification of the Premises, if any, together with a fee of $500 as consideration for Lessor’s considering
and processing said request. Lessee agrees to provide Lessor with such other or additional information and/or documentation as may be reasonably requested. (See also Paragraph 36) 
 (f) Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment, entering into such
sublease, or entering into possession of the Premises or any portion thereof, be deemed to have assumed and agreed to conform and comply with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during
the term of said assignment or sublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease to which Lessor has specifically consented to in writing. 
 (g) Lessor’s consent to any assignment or subletting shall not transfer to the assignee or sublessee any Option granted
to the original Lessee by this Lease unless such transfer is specifically consented to by Lessor in writing. (See Paragraph 39.2) 
 12.3 Additional Terms and Conditions Applicable to Subletting. The following terms and conditions shall apply to any subletting by Lessee of all or any part of the Premises and shall be deemed included in all subleases under
this Lease whether or not expressly incorporated therein: 
 (a) Lessee hereby assigns and transfers to Lessor
all of Lessee’s interest in all Rent payable on any sublease, and Lessor may collect such Rent and apply same toward Lessee’s obligations under this Lease; provided, however, that until a Breach shall occur in the performance of
Lessee’s obligations, Lessee may collect said Rent. In the event that the amount collected by Lessor exceeds Lessee’s then outstanding obligations any such excess shall be refunded to Lessee. Lessor shall not, by reason of the foregoing or
any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee for any failure of Lessee to perform and comply with any of Lessee’s obligations to such sublessee. Lessee hereby irrevocably authorizes
and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance of Lessee’s obligations under this Lease, to pay to Lessor all Rent due and to become due under the sublease. Sublessee
shall rely upon any such notice from Lessor and shall pay all Rents to Lessor without any obligation or right to inquire as to whether such Breach exists, notwithstanding any claim from Lessee to the contrary. 
 (b) In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to Lessor, in which event
Lessor shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration of such sublease; provided, however, Lessor shall not be liable for any prepaid rents or security deposit paid
by such sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor. 
 (c) Any matter
requiring the consent of the sublessor under a sublease shall also require the consent of Lessor. 
 (d) No
sublessee shall further assign or sublet all or any part of the Premises without Lessor’s prior written consent. 
 (e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure the Default of Lessee within the grace period, if any, specified in such notice. The sublessee shall have
a right of reimbursement and offset from and against Lessee for any such Defaults cured by the sublessee. 
 13.
Default; Breach; Remedies. 
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 13.1 Default;
Breach. A “Default is defined as a failure by the Lessee to comply with or perform any of the terms, covenants, conditions or Rules and Regulations under this Lease. A “Breach” is defined as the occurrence of one or more of the
following Defaults, and the failure of Lessee to cure such Default within any applicable grace period: 
 (a) The
abandonment of the Premises; or the vacating of the Premises without providing a commercially reasonable level of security, or where the coverage of the property insurance described in Paragraph 8.3 is jeopardized as a result thereof, or without
providing reasonable assurances to minimize potential vandalism. 
 (b) The failure of Lessee to make any payment
of Rent or any Security Deposit required to be made by Lessee hereunder, whether to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulfill any obligation under this Lease which endangers or
threatens life or property, where such failure continues for a period of 3 business days following written notice to Lessee. THE 
 ACCEPTANCE BY LESSOR OF A PARTIAL PAYMENT OF RENT OR SECURITY DEPOSIT SHALL NOT CONSTITUTE A WAIVER OF ANY OF LESSOR’S RIGHTS, INCLUDING LESSOR’S RIGHT TO RECOVER POSSESSION OF THE PREMISES. 
 (c) The failure of Lessee to allow Lessor and/or its agents access to the Premises or the commission of waste, act or acts
constituting public or private nuisance, and/or an illegal activity on the Premises by Lessee, where such actions continue for a period of 3 business days following written notice to Lessee. 
 (d) The failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the
service contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) an Estoppel Certificate or financial statements, (v) a requested subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii) any document
requested under Paragraph 42, (viii) material safety data sheets (MSDS), or (ix) any other documentation or information which Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of 10
days following written notice to Lessee. 
 (e) A Default by Lessee as to the terms, covenants, conditions or
provisions of this Lease, or of the rules adopted under Paragraph 40 hereof, other than those described in subparagraphs 13.1(a), (b), (c) or (d), above, where such Default continues for a period of 30 days after written notice; provided, however,
that if the nature of Lessee’s Default is such that more than 30 days are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said 30 day period and thereafter diligently prosecutes
such cure to completion. 
 (f) The occurrence of any of the following events: (i) the making of any general
arrangement or assignment for the benefit of creditors; (ii) becoming a “debtor” as defined in 11 U.S.C. §101 or any successor statute thereto (unless, in the case of a petition filed against Lessee, the same is dismissed within 60
days); (iii) the appointment of a trustee or receiver to take possession of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease, where possession is not restored to Lessee within 30 days; or
(iv) the attachment, execution or other judicial seizure of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease, where such seizure is not discharged within 30 days; provided, however, in the
event that any provision of this subparagraph is contrary to any applicable law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions. 
 (g) The discovery that any financial statement of Lessee or of any Guarantor given to Lessor was materially false.

 (h) If the performance of Lessee’s obligations under this Lease is guaranteed: (i) the death of a
Guarantor, (ii) the termination of a Guarantor’s liability with respect to this Lease other than in accordance with the terms of such guaranty, (iii) a Guarantor’s becoming insolvent or the subject of a bankruptcy filing, (iv) a
Guarantor’s refusal to honor the guaranty, or (v) a Guarantor’s breach of its guaranty obligation on an anticipatory basis, and Lessee’s failure, within 60 days following written notice of any such event, to provide written
alternative assurance or security, which, when coupled with the then existing resources of Lessee, equals or exceeds the combined financial resources of Lessee and the Guarantors that existed at the time of execution of this Lease. 
 13.2 Remedies. If Lessee fails to perform any of its affirmative duties or obligations, within 10 days after written notice
(or in case of an emergency, without notice). Lessor may, at its option, perform such duty or obligation on Lessee’s behalf, including but not limited to the obtaining of reasonably required bonds, insurance policies, or governmental licenses,
permits or approvals. Lessee shall pay to Lessor an amount equal to 115% of the costs and expenses incurred by Lessor in such performance upon receipt of an invoice therefor. In the event of a Breach, Lessor may, with or without further notice or
demand, and without limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach: 
 (a) Terminate Lessee’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession to Lessor. In such event Lessor shall be entitled to
recover from Lessee: (i) the unpaid Rent which had been earned at the time of termination; (ii) the worth at the time of award of the amount by which the unpaid rent which would have been earned after termination until the time of award exceeds the
amount of such rental loss that the Lessee proves could have been reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent for the balance of the term after the time of award exceeds the amount of such rental
loss that the Lessee proves could be reasonably avoided; and (iv) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee’s failure to perform its obligations under this Lease or which in the
ordinary course of things would be likely to result therefrom, including but 
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 not limited to
the coat of recovering possession of the Premises, expenses of reletting, including necessary renovation and alteration of the Premises, 
 reasonable attorneys’ fees, and that portion of any leasing commission paid by Lessor in connection with this Lease applicable to the unexpired term of this Lease. The worth at the
time of award of the amount referred to in provision (iii) of the immediately preceding sentence shall be computed by discounting such amount at the discount rate of the Federal Reserve Bank of the District within which the Premises are located at
the time of award plus one percent. Efforts by Lessor to mitigate damages caused by Lessee’s Breach of this Lease shall not waive Lessor’s right to recover damages under Paragraph 12. If termination of this Lease is obtained through the
provisional remedy of unlawful detainer, Lessor shall have the right to recover in such proceeding any unpaid Rent and damages as are recoverable therein, or Lessor may reserve the right to recover all or any part thereof in a separate suit. If a
notice and grace period required under Paragraph 13.1 was not previously given, a notice to pay rent or quit, or to perform or quit given to Lessee under the unlawful detainer statute shall also constitute the notice required by Paragraph 13.1. In
such case, the applicable grace period required by Paragraph 13.1 and the unlawful detainer statute shall run concurrently, and the failure of Lessee to cure the Default within the greater of the two such grace periods shall constitute both an
unlawful detainer and a Breach of this Lease entitling Lessor to the remedies provided for in this Lease and/or by said statute. 
 (b) Continue the Lease and Lessee’s right to possession and recover the Rent as it becomes due, in which event Lessee may sublet or assign, subject only to reasonable limitations. Acts of maintenance, efforts to relet,
and/or the appointment of a receiver to protect the Lessor’s interests, shall not constitute a termination of the Lessee’s right to possession. 
 (c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the Premises are located. The expiration or termination of this Lease
and/or the termination of Lessee’s right to possession shall not relieve Lessee from liability under any indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by reason of Lessee’s occupancy of
the Premises, 
 13.3 Inducement Recapture. Any agreement for free or abated rent or other charges, or for the
giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration for Lessee’s entering into this Lease, all of which concessions are hereinafter referred to as “inducement Provisions,” shall be
deemed conditioned upon Lessee’s full and faithful performance of all of the terms, covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any such Inducement Provision shall automatically be deemed deleted from this lease
and of no further force or effect, and any rent, other charge, bonus, inducement or consideration theretofore abated, given or paid by Lessor under such an inducement Provision shall be immediately due and payable by Lessee to Lessor,
notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by Lessor of rent or the cure of the Breach which initiated the operation of this paragraph shall not be deemed a waiver by Lessor of the provisions of this paragraph
unless specifically so stated in writing by Lessor at the time of such acceptance. 
 13.4 Late Charges. Lessee
hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not limited to, processing and
accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if any Rent shall not be received by Lessor within 5 days after such amount shall be due, then, without any requirement for notice to Lessee, Lessee
shall immediately pay to Lessor a one-time late charge equal to 10% of each such overdue amount or $100, whichever is greater. The Parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur by
reason of such late payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee’s Default or Breach with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies
granted hereunder. In the event that a late charge is payable hereunder, whether or not collected, for 3 consecutive installments of Base Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessor’s
option. become due and payable quarterly in advance. 
 13.5 Interest. Any monetary payment due Lessor hereunder,
other than late charges, not received by Lessor, when due as to scheduled payments (such as Base Rent) or within 30 days following the date on which it was due for non-scheduled payment, shall bear interest from the date when due, as to scheduled
payments, or the 31st day after it was due as to non-scheduled payments. The interest (“Interest”) charged shall be computed at the rate of 10% per annum but shall not exceed the maximum rate allowed by law. Interest is payable in addition
to the potential late charge provided for in Paragraph 13.4. 
 13.6 Breach by Lessor. 
 (a) Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable time to
perform an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event be less than 30 days after receipt by Lessor, and any Lender whose name and address shall have been furnished Lessee in
writing for such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however, that if the nature of Lessor’s obligation is such that more than 30 days are reasonably required for its
performance, then Lessor shall not be in breach if performance is commenced within such 30 day period and thereafter diligently pursued to completion. 
 (b) Performance by Lessee on Behalf of Lessor. In the event that neither Lessor or Lender cures said breach within 30 days after receipt of said notice, or if having commenced said cure
they do not diligently pursue it to completion, then Lessee may elect to cure said breach 
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 at
Lessee’s expense and offset from Rent the actual and reasonable cost to perform such cure, provided, however, that such offset shall not exceed an amount equal to the greater of one month’s Base Rent or the Security Deposit, reserving
Lessee’s right to seek reimbursement from Lessor for any such expense in excess of such offset. Lessee shall document the cost of said cure and supply said documentation to Lessor. 
 14. Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain or sold under the threat
of the exercise of said power (collectively “Condemnation”), this Lease shall terminate as to the part taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than 10% of the Building, or
more than 25% of that portion of the Premises not occupied by any building, is taken by Condemnation, Lessee may, at Lessee’s option, to be exercised in writing within 10 days after Lessor shall have given Lessee written notice of such taking
(or in the absence of such notice, within 10 days after the condemning authority shall have taken possession) terminate this Lease as of the date the condemning authority takes such possession. If Lessee does not terminate this Lease in accordance
with the foregoing, this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be reduced in proportion to the reduction in utility of the Premises caused by such Condemnation.
Condemnation awards and/or payments shall be the property of Lessor, whether such award shall be made as compensation for diminution in value of the leasehold, the value of the part taken, or for severance damages; provided, however, that Lessee
shall be entitled to any compensation paid by the condemnor for Lessee’s relocation expenses, loss of business goodwill and/or Trade Fixtures, without regard to whether or not this Lease is terminated pursuant to the provisions of this
Paragraph. All Alterations and Utility Installations made to the Premises by Lessee, for purposes of Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled to any and all compensation which is payable
therefor. In the event that this Lease is not terminated by reason of the Condemnation, Lessor shall repair any damage to the Premises caused by such Condemnation. 
 15. Brokerage Fees. 
 15.1 Additional Commission.
In addition to the payments owed pursuant to Paragraph 1.9 above, and unless Lessor and the Brokers otherwise agree in writing, Lesser agrees that: (a) if Lessee exercises any Option, (b) if Lessee or anyone affiliated with Lessee acquires any
rights to the Premises or other premises owned by Lessor and located within the same Project, if any, within which the Premises is located, (c) if Lessee remains in possession of the Premises, with the consent of Lessor, after the expiration of this
Lease, or (d) if Base Rent is increased, whether by agreement or operation of an escalation clause herein, then, Lessor shall pay Brokers a fee in accordance with the schedule of the Brokers in effect at the time of the execution of this Lease.

 15.2 Assumption of Obligations. Any buyer or transferee of Lessor’s interest in this Lease shall be
deemed to have assumed Lessor’s obligation hereunder. Brokers shall be third party beneficiaries of the provisions of Paragraphs 1.9,15,22 and 31. If Lessor fails to pay to Brokers any amounts due as and for brokerage fees pertaining to this
Lease when due, then such amounts shall accrue interest. In addition, if Lessor fails to pay such amounts within 10 days after said notice, Lessee shall pay said monies to its Broker and offset such amounts against Rent. In addition, Lessee’s
Broker shall be deemed to be a third party beneficiary of any commission agreement entered into by and/or between Lessor and Lessor’s Broker for the limited purpose of collecting any brokerage fee owed. 
 15.3 Representations and Indemnities of Broker Relationships. Lessee and Lessor each represent and warrant to the other that
it has had no dealings with any person, firm, broker or finder (other than the Brokers, if any) in connection with this Lease, and that no one other than said named Brokers is entitled to any commission or finder’s fee in connection herewith.
Lessee and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for compensation or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any
dealings or actions of the indemnifying Party, including any costs, expenses, attorneys’ fees reasonably incurred with respect thereto. 
 16. Estoppel Certificates. 
 (a) Each Party (as
“Responding Party”) shall within 10 days after written notice from the other Party (the “Requesting Party”) execute, acknowledge and deliver to the Requesting Party a statement in writing in form similar to the then most current
“Estoppel Certificate” form published by the AIR Commercial Real Estate Association, plus such additional information, confirmation and/or statements as may be reasonably requested by the Requesting Party. 
 (b) If the Responding Party shall fail to execute or deliver the Estoppel Certificate within such 10 day period, the
Requesting Party may execute an Estoppel Certificate stating that: (i) the Lease is in full force and effect without modification except as may be represented by the Requesting Party, (ii) there are no uncured defaults in the Requesting Party’s
performance, and (iii) if Lessor is the Requesting Party, not more than one month’s rent has been paid in advance. Prospective purchasers and encumbrancers may rely upon the Requesting Party’s Estoppel Certificate, and the 
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Party shall be estopped from denying the truth of the facts contained in said Certificate. 
 (c) If Lessor
desires to finance, refinance, or sell the Premises, or any part thereof, Lessee and all Guarantors shall within 10 days after written notice from Lessor deliver to any potential lender or purchaser designated by Lessor such financial statements as
may be reasonably required by such lender or purchaser, including but not limited to Lessee’s financial statements for the past 3 years. All such financial statements shall be received by Lessor and such lender or purchaser in confidence and
shall be used only for the purposes herein set forth. 
 17. Definition of Lessor. The term “Lessor” as
used herein shall mean the owner or owners at the time in question of the fee title to the Premises, or, if this is a sublease, of the Lessee’s interest in the prior lease. In the event of a transfer of Lessor’s title or interest in the
Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit) any unused Security Deposit held by Lessor. Upon such transfer or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall
be relieved of all liability with respect to the obligations and/or covenants under this Lease thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or covenants in this Lease to be performed by the Lessor shall be
binding only upon the Lessor as hereinabove defined. 
 18. Severability. The invalidity of any provision of this
Lease, as determined by a court of competent jurisdiction, shall in no way affect the validity of any other provision hereof. 
 19. Days. Unless otherwise specifically indicated to the contrary, the word “days” as used in this Lease shall mean and refer to calendar days. 
 20. Limitation on Liability. The obligations of Lessor under this Lease shall not constitute personal obligations of Lessor or its partners, members, directors, officers or shareholders,
and Lessee shall look to the Premises, and to no other assets of Lessor, for the satisfaction of any liability of Lessor with respect to this Lease, and shall not seek recourse against Lessor’s partners, members, directors, officers or
shareholders, or any of their personal assets for such satisfaction, 
 21. Time of Essence. Time is of the
essence with respect to the performance of all obligations to be performed or observed by the Parties under this Lease. 
 22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between the Parties with respect to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be
effective, Lessor and Lessee each represents and warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the nature, quality, character and financial responsibility of the other Party to this Lease and as to
the use, nature, quality and character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof by either Party. 
 23. Notices. 
 23.1 Notice Requirements. All notices required or permitted by this Lease or applicable law shall be in writing and may he delivered in person (by hand or by courier) or may be sent by
regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or by facsimile transmission, and shall be deemed sufficiently given if served in a manner specified in this Paragraph 23. The addresses noted adjacent
to a Party’s signature on this Lease shall be that Party’s address for delivery or mailing of notices. Either Party may by written notice to the other specify a different address for notice, except that upon Lessee’s taking possession
of the Premises, the Premises shall constitute Lessee’s address for notice. A copy of all notices to Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may from time to time hereafter designate in
writing. 
 23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall
be deemed given on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mail the notice shall be deemed given 72 hours after the same is addressed as required herein and mailed
with postage prepaid. Notices delivered by United States Express Mail or overnight courier that guarantee next day delivery shall be deemed given 24 hours after delivery of the same to the Postal Service or courier. Notices transmitted by facsimile
transmission or similar means shall be deemed delivered upon telephone confirmation of receipt (confirmation report from fax machine is sufficient), provided a copy is also delivered via delivery or mail. If notice is received on a Saturday. Sunday
or legal holiday, it shall be deemed received on the next business day. 
 24. Waivers. 
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 (a) No waiver
by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a waiver of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term,
covenant or condition hereof, Lessor’s consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of Lessor’s consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the
basis of an estoppel to enforce the provision or provisions of this Lease requiring such consent. 
 (b) The
acceptance of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of moneys or damages due Lessor, notwithstanding any qualifying statements or conditions made by Lessee
in connection therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specifically agreed to in writing by Lessor at or before the time of deposit of such payment. 
 (c) THE PARTIES AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL MATTERS RELATED THERETO AND HEREBY WAIVE
THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THIS LEASE. 
 25. Disclosures Regarding The Nature of a Real Estate Agency Relationship. 
 (a) When entering
into a discussion with a real estate agent regarding a real estate transaction, a Lessor or Lessee should from the outset understand what type of agency relationship or representation it has with the agent or agents in the transaction. Lessor and
Lessee acknowledge being advised by the Brokers in this transaction, as follows: 
 (i) Lessor’s Agent. A
Lessor’s agent under a listing agreement with the Lessor acts as the agent for the Lessor only. A Lessor’s agent or subagent has the following affirmative obligations: To the Lessor: A fiduciary duty of utmost care, integrity, honesty, and
loyalty in dealings with the Lessor. To the Lessee and the Lessor: a. Diligent exercise of reasonable skills and care in performance of the agent’s duties. b. A duty of honest and fair dealing and good faith, c. A duty to disclose all facts
known to the agent materially affecting the value or desirability of the property that are not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential
information obtained from the other Party which does not involve the affirmative duties set forth above. 
 (ii)
Lessee’s Agent. An agent can agree to act as agent for the Lessee only. In these situations, the agent is not the Lessor’s agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part from
the Lessor. An agent acting only for a Lessee has the following affirmative obligations. To the Lessee: A fiduciary duty of utmost care, integrity, honesty, and loyalty in dealings with the Lessee. To the Lessee and the Lessor a. Diligent exercise
of reasonable skills and care in performance of the agent’s duties. b. A duty of honest and fair dealing and good faith, c. A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are
not known to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential information obtained from the other Party which does not involve the affirmative duties set forth
above. 
 (iii) Agent Representing Both Lessor and Lessee. A real estate agent, either acting directly or through
one or more associate licenses, can legally be the agent of both the Lessor and the Lessee in a transaction, but only with the knowledge and consent of both the Lessor and the Lessee. In a dual agency situation, the agent has the following
affirmative obligations to both the Lessor and the Lessee: a. A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either Lessor or the Lessee. b. Other duties to the Lessor and the Lessee as stated above in
subparagraphs (i) or (ii). In representing both Lessor and Lessee, the agent may not without the express permission of the respective Party, disclose to the other Party that the Lessor will accept rent in an amount less than that indicated in the
listing or that the Lessee is willing to pay a higher rent than that offered. The above duties of the agent in a real estate transaction do not relieve a Lessor or Lessee from the responsibility to protect their own interests. Lessor and Lessee
should carefully read all agreements to assure that they adequately express their understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice is desired, consult a competent
professional. 
 (b) Brokers have no responsibility with respect to any default or breach hereof by either Party.
The Parties agree that no lawsuit or other legal proceeding involving any breach of duty, error or omission relating to this Lease may be brought against Broker more than one year after the Start Date and that the liability (including court costs
and attorneys’ fees), of any Broker with respect to any such lawsuit and/or legal proceeding shall not exceed the fee received by such Broker pursuant to this Lease; provided, however, that the foregoing limitation on each Broker’s
liability shall not be applicable to any gross negligence or willful misconduct of such Broker. 
 (c) Lessor and
Lessee agree to identify to Brokers as “Confidential” any communication or-information given Brokers that is considered by such Party to be confidential. 
 26. No Right To Holdover. Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration or termination of this Lease. In the event that Lessee holds
over, then the Base Rent shall be increased to 150% of the Base Rent applicable immediately preceding the 
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 expiration or
termination. Nothing contained herein shall be construed as consent by Lessor to any holding over by Lessee. 
 27. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. 
 28. Covenants and Conditions; Construction of Agreement. All provisions of this Lease to be observed or performed by Lessee
are both covenants and conditions. In construing this Lease, all headings and titles are for the convenience of the Parties only and shall not be considered a part of this Lease. Whenever required by the context, the singular shall include the
plural and vice versa. This Lease shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning as a whole, as if both Parties had prepared it. 
 29. Binding Effect; Choice of Law. This Lease shall be binding upon the Parties, their personal representatives, successors
and assigns and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto concerning this Lease shall be initiated in the county in which the Premises are located. 
 30. Subordination; Attornment; Non-Disturbance. 
 30.1 Subordination. This Lease and any Option granted hereby shall be subject and subordinate to any ground lease, mortgage, deed of trust, or other hypothecation or security device
(collectively, “Security Device”), now or hereafter placed upon the Premises, to any and all advances made on the security thereof, and to all renewals, modifications, and extensions thereof. Lessee agrees that the holders of any such
Security Devices (in this Lease together referred to as “Lender”) shall have no liability or obligation to perform any of the obligations of Lessor under this Lease. Any Lender may elect to have this Lease and/or any Option granted hereby
superior to the lien of its Security Device by giving written notice thereof to Lessee, whereupon this Lease and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates of the documentation or recordation
thereof. 
 30.2 Attornment. In the event that Lessor transfers title to the Premises, or the Premises are
acquired by another upon the foreclosure or termination of a Security Devise to which this Lease is subordinated (i) Lessee shall, subject to the non-disturbance provisions of Paragraph 30.3, attorn to such new owner, and upon request, enter into a
new lease, containing all of the terms and provisions of this Lease, with such new owner for the remainder of the term hereof, or, at the election of the new owner, this Lease will automatically become a new lease between Lessee and such new owner,
and (ii) Lessor shall thereafter be relieved of any further obligations hereunder and such new owner shall assume all of Lessor’s obligations, except that such new owner shall not: (a) be liable for any act or omission of any prior lessor or
with respect to events occurring prior to acquisition of ownership; (b) be subject to any offsets or defenses which Lessee might have against any prior lessor, (c) be bound by prepayment of more than one month’s rent, or (d) be liable for the
return of any security deposit paid to any prior lessor which was not paid or credited to such new owner. 
 30.3
Non-Disturbance. With respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee’s subordination of this Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a
“Non-Disturbance Agreement”) from the Lender which Non-Disturbance Agreement provides that Lessee’s possession of the Premises, and this Lease, including any options to extend the term hereof, will not be disturbed so long as Lessee
is not in Breach hereof and attorns to the record owner of the Premises. Further, within 60 days after the execution of this Lease, Lessor shall, if requested by Lessee, use its commercially reasonable efforts to obtain a Non-Disturbance Agreement
from the holder of any pre-existing Security Device which is secured by the Premises, In the event that Lessor is unable to provide the Non-Disturbance Agreement within said 60 days, then Lessee may, at Lessee’s option. directly contact Lender
and attempt to negotiate for the execution and delivery of a Non-Disturbance Agreement. 
 30.4 Self-Executing.
The agreements contained in this Paragraph 30 shall be effective without the execution of any further documents; provided, however, that, upon written request from Lessor or a Lender in connection with a sale, financing or refinancing of the
Premises, Lessee and Lessor shall execute such further writings as may be reasonably required to separately document any subordination, attornment and/or Non-Disturbance Agreement provided for herein. 
 31. Attorneys’ Fees. If any Party or Broker brings an action or proceeding involving the Premises whether founded in
tort, contract or equity, or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to reasonable attorneys’ fees. Such fees may be awarded in the same suit
or recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term, “Prevailing Party’ shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief
sought, as the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense. The attorneys’ fees award shall not be computed in accordance with any court fee schedule, but
shall be such as to fully reimburse all attorneys’ fees reasonably incurred. In addition, Lessor shall be entitled to attorneys’ fees, costs and expenses incurred in the preparation and service of-notices of 
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 Default and
consultations in connection therewith, whether or not a legal action is subsequently commenced in connection with such Default or resulting Breach ($200 is a reasonable minimum per occurrence for such services and consultation). 
 32. Lessor’s Access; Showing Premises; Repairs. Lessor and Lessors agents shall have the right to enter the Premises at
any time, in the case of an emergency, and otherwise at reasonable times after reasonable prior notice for the purpose of showing the same to prospective purchasers, lenders, or tenants, and making such alterations, repairs, improvements or
additions to the Premises as Lessor may deem necessary or desirable and the erecting, using and maintaining of utilities, services, pipes and conduits through the Premises and/or other premises as long as there is no material adverse effect to
Lessee’s use of the Premises. All such activities shall be without abatement of rent or liability to Lessee. 
 33. Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without Lessor’s prior written consent. Lessor shall not be obligated to exercise any standard of reasonableness in determining
whether to permit an auction. 
 34. Signs. Lessor may place on the Premises ordinary “For Sale” signs
at any time and ordinary “For Lease” signs during the last 6 months of the term hereof. Except for ordinary “for sublease” signs, Lessee shall not place any sign upon the Premises without Lessor’s prior written consent. All
signs must comply with all Applicable Requirements. 
 35. Termination; Merger. Unless specifically stated
otherwise in writing by Lessor, the voluntary or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or lesser
estate in the Premises; provided, however, that Lessor may elect to continue any one or all existing subtenancies. Lessor’s failure within 10 days following any such event to elect to the contrary by written notice to the holder of any such
lesser interest, shall constitute Lessor’s election to have such event constitute the termination of such interest. 
 36. Consents. Except as otherwise provided herein, wherever in this Lease the consent of a Party is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed. Lessor’s actual
reasonable costs and expenses (including but not limited to architects’, attorneys’, engineers’ and other consultants’ fees) incurred in the consideration of, or response to, a request by Lessee for any Lessor consent, including
but not limited to consents to an assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid by Lessee upon receipt of an invoice and supporting documentation therefore. Lessor’s consent to any act, assignment or
subletting shall not constitute an acknowledgment that no Default or Breach by Lessee of this Lease exists, nor shall such consent be deemed a waiver of any then existing Default or Breach, except as may be otherwise specifically stated in writing
by Lessor at the time of such consent. The failure to specify herein any particular condition to Lessor’s consent shall not preclude the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with
reference to the particular matter for which consent is being given. In the event that either Party disagrees with any determination made by the other hereunder and reasonably requests the reasons for such determination, the determining party shall
furnish its reasons in writing and in reasonable detail within 10 business days following such request. 
 37.
Guarantor. 
 37.1 Execution, The Guarantors, if any, shall each execute a guaranty in the form most recently
published by the AIR Commercial Real Estate Association, and each such Guarantor shall have the same obligations as Lessee under this Lease. 
 37.2 Default. It shall constitute a Default of the Lessee if any Guarantor fails or refuses, upon request to provide: (a) evidence of the execution of the guaranty, including the authority
of the party signing on Guarantor’s behalf to obligate Guarantor, and in the case of a corporate Guarantor, a certified copy of a resolution of its board of directors authorizing the making of such guaranty, (b) current financial statements,
(c) an Estoppel Certificate, or (d) written confirmation that the guaranty is still in effect. 
 38. Quiet
Possession. Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and provisions on Lessee’s part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment of
the Premises during the term hereof. 
 39. Options. If Lessee is granted an Option, as defined below, then the
following provisions shall apply: 
 39.1 Definition. “Option” shall mean: (a) the right to expand the
Premises or to extend or reduce the term of or renew this Lease or to extend or reduce the term of or renew any lease that Lessee has on other property of Lessor; (b) the right of first refusal or first offer to lease either the 
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 Premises or
other property of Lessor; (c) the right to purchase, the right of first offer to purchase or the right of first refusal to purchase the Premises or other property of Lessor. 
 39.2 Options Personal To Original Lessee. Any Option granted to Lessee in this Lease is personal to the original Lessee, and
cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession of the Premises and, if requested by Lessor, with Lessee certifying that Lessee has no intention of thereafter
assigning or subletting. 
 39.3 Multiple Options. In the event that Lessee has any multiple Options to extend or
renew this Lease, a later Option cannot be exercised unless the prior Options have been validly exercised. 
 39.4 Effect of Default on Options. 
 (a) Lessee shall have no right to exercise an Option: (i)
during the period commencing with the giving of any notice of Default and continuing until said Default is cured, (ii) during the period of time any Rent is unpaid (without regard to whether notice thereof is given Lessee), (iii) during the time
Lessee is in Breach of this Lease, or (iv) in the event that Lessee has been given 3 or more notices of separate Default, whether or not the Defaults are cured, during the 12 month period immediately preceding the exercise of the Option. 

(b) The period of time within which an Option may be exercised shall not be extended or enlarged by reason of
Lessee’s inability to exercise an Option because of the provisions of Paragraph 39.4(a). 
 (c) An Option
shall terminate and be of no further force or effect, notwithstanding Lessee’s due and timely exercise of the Option, if, after such exercise and prior to the commencement of the extended term or completion of the purchase, (i) Lessee fails to
pay Rent for a period of 30 days after such Rent becomes due (without any necessity of Lessor to give notice thereof), or (ii) if Lessee commits a Breach of this Lease. 
 40. Multiple Buildings. If the Premises are a part of a group of buildings controlled by Lessor, Lessee agrees that it will abide by and conform to all reasonable rules and regulations
which Lessor may make from time to time for the management, safety, and care of said properties, including the care and cleanliness of the grounds and including the parking, loading and unloading of vehicles, and to cause its employees, suppliers,
shippers, customers, contractors and invitees to so abide and conform. Lessee also agrees to pay its fair share of common expenses incurred in connection with such rules and regulations. 
 41. Security Measures. Lessee hereby acknowledges that the Rent payable to Lessor hereunder does not include the cost of
guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the Premises, Lessee, its agents and invitees and their property from the acts of
third parties. 
 42. Reservations. Lessor reserves to itself the right, from time to time, to grant, without the
consent or joinder of Lessee, such easements, rights and dedications that Lessor deems necessary, and to cause the recordation of parcel maps and restrictions, so long as such easements, rights, dedications, maps and restrictions do not unreasonably
interfere with the use of the Premises by Lessee. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate any such easement rights, dedication, map or restrictions. 
 43. Performance Under Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one Party
to the other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the right to make payment “under protest” and such payment shall not be regarded as a voluntary payment and there shall
survive the right on the part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover
such sum or so much thereof as it was not legally required to pay. A Party who does not initiate suit for the recovery of sums paid “under protest” with 6 months shall be deemed to have waived its right to protest such payment. 

44. Authority; Multiple Parties; Execution. 
 (a) If either Party hereto is a corporation, trust, limited liability company, partnership, or similar entity, each individual executing this Lease on behalf of such entity represents and
warrants that he or she is duly authorized to execute and deliver this Lease on its behalf. Each Party shall, within 30 days after request, deliver to the other Party satisfactory evidence of such authority. 
 (b) If this Lease is executed by more than one person or entity as “Lessee”, each such person or entity shall be
jointly and severally liable hereunder. It is agreed that any one of the named Lessees shall be empowered to execute any amendment to this Lease, or other document ancillary thereto and bind all of the named Lessees, and Lessor may rely on the same
as if all of the named Lessees had executed such document. 
 (c) This Lease may be executed by the Parties in
counterparts, each of which shall be deemed an original and all of which 
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 together shall
constitute one and the same instrument. 
 45. Conflict. Any conflict between the printed provisions of this
Lease and typewritten or handwritten provisions shall be controlled by the typewritten or handwritten provisions. 
 46. Offer. Preparation of this Lease by either Party or their agent and submission of same to the other Party shall not be deemed an offer to lease to the other Party. This Lease is not intended to be binding until executed and
delivered by all Parties hereto. 
 47. Amendments. This Lease may be modified only in writing, signed by the
Parties in interest at the time of the modification. As long as they do not materially change Lessees obligations hereunder, Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be reasonably required by a Lender in
connection with the obtaining of normal financing or refinancing of the Premises. 
 48. Waiver of Jury Trial.
THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT. 
 49. Mediation and Arbitration of Disputes. An Addendum requiring the Mediation and/or the Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease is not
attached to this Lease. 
 50. Americans with Disabilities Act. Since compliance with the Americans with
Disabilities Act (ADA) is dependent upon Lessee’s specific use of the Premises, Lessor makes no warranty or representation as to whether or not the Premises comply with ADA or any similar legislation. In the event that Lessee’s use of the
Premises requires modifications or additions to the Premises in order to be in ADA compliance, Lessee agrees to make any such necessary modifications and/or additions at Lessee’s expense. 
 LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND 

BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE 
 THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE 

INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES. 
 ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL ESTATE ASSOCIATION OR BY ANY 
 BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH 

IT RELATES. THE PARTIES ARE URGED TO: 
 1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE. 
 2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION 
 SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, 
 THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE PREMISES FOR

 LESSEE’S INTENDED USE. 
 WARNING: IF THE PREMISES IS LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES IS
LOCATED. 
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 The parties
hereto have executed this Lease at the place and on the dates specified above their respective signatures. 
 Executed at: Los Angeles, CA 
 On: 
 By LESSOR: 
 Alameda Produce Market, LLC 
 By 
 Name Printed: Richard Meruelo 
 Title: Chairman 
 By: 
 Name Printed: 
 Title: 
 Address: 761 Terminal St., Bldg. 1, 2nd
Floor 
 Los Angeles, CA 90021 
 Telephone:( ) 
 Facsimile:( ) 
 Federal ID No. 
 BROKER: 
 Magnum Properties 
 Attn: Mike Meraz 
 Title: 
 Address: 222 E. Washington Blvd.

 Los Angeles, CA 90021 
 Telephone: (323) 585 – 3000 
 Facsimile: (323)
585 – 3335 
 Federal ID No. 
 Executed at: Los Angeles, CA 
 On: 07/30/2009

 By LESSEE: 
 American Apparel, Inc. 
 By: 
 Name Printed: Adrian Kowalewski 
 Title: Executive Vice President & Chief Financial Officer 
 By: 
 Name Printed: 
 Title: 
 Address: 747 Warehouse St. 
 Los Angeles, CA 90021 
 Telephone:() 
 Facsimile:( ) 
 Federal ID No. 
 BROKER: 
 same 
 Attn: 
 Title: 
 Address: 
 Telephone:( ) 
 Facsimile:( ) 
 Federal ID No. 
 NOTICE: These forms are often
modified to meet changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form: AIR Commercial Real Estate Association, 800 W 6th Street, Suite 800, Los Angeles, CA 90017. Telephone No.
(213) 687-8777. Fax No.: (213) 687-8616. 
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 © Copyright 2001 - By AIR Commercial Real Estate Association. All rights reserved. No part of these works may be reproduced in any form without permission in writing. 
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 ADDENDUM

 TO STANDARD INDUSTRIAL/COMMERCIAL 
 SINGLE-TENANT LEASE – 1 NET 
 DATED AS OF AUGUST 1, 2009 
 BY AND BETWEEN ALAMEDA
PRODUCE MARKET, LLC, AS LESSOR, 
 AND AMERICAN APPAREL, INC., AS LESSEE 
 This Addendum is the Addendum referred to in that certain Standard Industrial/Commercial Single-Tenant Lease–Net dated
as of August 1, 2009 by and between Alameda Produce Market, LLC, a Delaware limited liability company, as Lessor, and American Apparel, Inc., a Delaware corporation, as Lessee (the “Form Lease”). All initially capitalized terms used and
not defined in this Addendum shall have the same meanings ascribed to such terms in the Form Lease. In the event of any inconsistency between the provisions of this Addendum and the Form Lease, the provisions of this Addendum shall govern and
control. The Form Lease and this Addendum (including the exhibits, addenda and any other attachments thereto) constitute the lease agreement between Lessor and Lessee with respect to the Premises. 
 1. Common Areas. The term “Common Areas” means all areas and facilities outside the Premises or other buildings
(including associated docks) of the Project and within the exterior boundary line of the Project that are provided and designated by Lessor from time to time for the general non-exclusive use of Lessor, Lessee and other tenants of the Project and
their respective employees, suppliers, shippers, customers, contractors and invitees, including parking areas, loading and unloading areas, trash areas, roadways, walkways, driveways and landscaped areas. Lessee’s right and the right of
Lessee’s employees, suppliers, shippers, customers, contractors and invitees (collectively, “Lessee’s Permittees”) to use the Common Areas shall be in accordance with and subject to this Lease and the rules and regulations
attached to the Lease as Exhibit B (“Rules and Regulations”) as such Rules and Regulations may be modified from time to time by Lessor in its sole discretion, and Lessee agrees to comply with and to cause Lessee’s Permittees to comply
with the Rules and Regulations. Lessor shall not be responsible to Lessee for the non-compliance with said Rules and Regulations by other tenants or persons within the Project. Under no circumstances shall the right herein granted to use the Common
Areas be deemed to include the right to store any property, temporarily or permanently, in the Common Areas. Any such storage shall be permitted only by the prior written consent of Lessor or its representative, which consent may be revoked at any
time. In the event that any unauthorized storage shall occur then Lessor shall have the right, without notice, in addition to such other rights and remedies that it may have, to remove the property and charge the cost of removal and storage to
Lessee, which cost shall he immediately payable upon demand by Lessor. Lessor has the right, in Lessor’s sole discretion, from time to time: 
 (a) To make changes to the Common Areas, including, without limitation, changes in the location, size, shape and number of driveways, entrances, parking spaces, parking areas, fees charged
or to be charged to the tenants or other users of the Common Areas, loading and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways and utility receways; 
 (b) To close temporarily any of the Common Areas for Lessor’s purposes (including maintenance, repair, construction and
film and entertainment production) so long as reasonable access to the Premises remains available; 
 (c) To
designate other land outside the boundaries of the Project to be a part of or to remove land from the Common Areas; 
 AD-1 Lessor’s initials ,Lessee’s initials 

 

 

  
 (d) To add or
remove land or other facilities to or from the Common Areas; 
 (e) To use the Common Areas while engaged in
making additional improvements, repairs or alterations to the Project, or any portion thereof; and 
 (f) To do
and perform such other acts and make such other changes in, to or with respect to the Common Areas and Project as Lessor may deem to be appropriate. 
 Lessor and Lessee acknowledge that the portion of the Project located at the northwest corner of Alameda and 7th Streets (“Eminent Domain Property”) is currently the subject of
an eminent domain action filed by the Los Angeles County Metropolitan Transportation Authority, which is currently in possession of such property. If and when the Eminent Domain Property becomes available to Lessor, Lessor may make such available
for parking for Lessee and Lessee’s Permittees, in which event the parties shall agree on terms related to such. 
 2. Lessee Parking; Paving by Lessor. Lessee and Lessee’s Permittees may park in the Common Areas only in marked parking stalls in the area shown as “Parking Area” on the attached Exhibit A. Lessee’s rights to
parking in the Parking Area shall be on a non-exclusive basis in the proportion of the square footage of Buildings 3 and 4 to the square footage of all Buildings in the Project. Lessor shall, at its cost, pave that portion of the Parking Area that
is currently unpaved. Except as otherwise expressly provided in Paragraph 5 below, Lessee and Lessee’s Permittees shall not park in any other areas of the Common Areas. The Parking Area is part of the Common Areas to which Lessor reserves its
rights as set forth in Paragraph 1(a) through (f) of this Addendum, including, without limitation, the right to reconfigure the Parking Area and/or relocate the Parking Area, including to other properties. The Parking Area shall be used for parking
only of vehicles no larger than full-size passenger automobiles or pick-up trucks (“Permitted Size Vehicles”), unless Lessor otherwise designates from time to time an area for parking of vehicles larger than Permitted Size Vehicles. Lessee
shall not permit or allow any vehicles that belong to or are controlled by Lessee or Lessee’s Permittees to be loaded, unloaded or parked in areas other than those designated by Lessor for such activities. Lessee shall not service or store any
vehicles in the Common Areas. If Lessee permits or allows any of the prohibited activities, then Lessor shall have the right, without notice, and in addition to such other rights and remedies that it may have, to remove or tow away the vehicle
involved and charge the cost to Lessee, which cost shall be immediately payable upon demand to Lessor. 
 3. Rent
Escalations. Lessee agrees that the monthly Base Rent to be paid by Lessee during the Term as provided in Paragraph 1.5 of the Form Lease shall be increased on August 1 of each year (“Adjustment Date”), beginning August 1, 2010, to an
amount equal to (i) the amount of the Base Rent applicable in July of the year of the applicable Adjustment Date, plus (ii) the product obtained by multiplying such amount by the percentage increase in the Consumer Price Index (defined below) from
August 2009 to June of the year of the applicable Adjustment Date, provided, each annual percentage increase shall be at least two percent (2%) but not more than five percent (5%). As used herein, “Consumer Price Index” means the Consumer
Price Index for All Urban Consumers, All Items, for the Los Angeles, Orange County/Riverside Area (1982-1984=100) issued by the United States Department of Labor, Bureau of Labor Statistics (or the index that is most similar to such index if such
index ceases to exist). In no event shall the Base Rent for any month be less than the Base Rent for the immediately preceding month. 
 AD-2 Lessor’s initials Lessee’s initials 

 

 

  
 4. Waiver of
Prior CAM Expenses; Allocation of costs; Capital Expenditures. Lessor waives its right to collect from Lessee any real estate taxes, insurance costs and other Common Area expenses that accrued but were not paid by Lessee under the Prior Leases
(defined below). During the Term of this Lease, Lessor shall be solely responsible for real estate 
 taxes
(other than increases caused by Lessee’s acts or omissions, use, or Alterations or Utility Installations or other tenant improvements), the costs of any insurance obtained by Lessor, and costs of any Common Area maintenance that Lessor may
choose to undertake, subject to Paragraphs 8.3(c) and 8.7 or other similar provisions. Lessee shall remain responsible to pay the 
 costs of all utilities and services to the Premises (including its prorata share of those commonly metered, such as water and sewer, and fire pump costs), the costs of Lessee’s own guards and 
 other security services, costs of insurance obtained by Lessee, any high rise fees applicable to 
 Building 3 or 4, and costs for Lessee’s trash disposal, pest control services, and service contracts. 
 Except for paving of the parking area 
 as provided in paragraph 2, 
 If Lessor makes any
capital improvements to the Premises or Common Areas, Lessee shall pay 
 to Lessor all capital expenditures made
by Lessor (100% if made to Premises, or 50% if made to the Common Areas), amortized over a 12 year period. 
 5.
Operating and Clean Covenant; Pest Control Requirements. Without 
 limiting in any way Paragraph 7.1 of the Form
Lease, Lessee shall keep the Premises in a neat, clean and sanitary condition, and in compliance with all Applicable Requirements. Lessee shall 
 cause the Premises to be kept in a clean and organized condition and shall at all times maintain the services of a reputable trash disposal service to cause all trash located within the
Premises, or generated by Lessee’s use of the Premises, to be removed from the Project at Lessee’s sole cost and expense. Lessee shall not permit any thing or matter to be maintained or exist within the Premises that emits or otherwise
causes bad or otherwise undesirable odors as determined by Lessor in its sole and absolute discretion. 
 In the
event that Lessee fails to cause all trash and other odor causing matter to be disposed of as provided in this Section and such failure continues for at least twenty-four (24) hours after Lessor shall have given Lessee written notice of such
failure, then Lessor shall have the right, without any further notice to Lessee, to enter the Premises and cause such trash and other matter to be disposed of and to bill to Lessee a reasonable amount for such disposal as determined by Lessor as
additional rent. If Lessee fails to pay Lessor for the disposal of such trash and other matter as billed to Lessee within ten (10) days of Lessee’s receipt of a bill for such disposal, Lessee shall be in default under this Lease and Lessor
shall be entitled to employ any of the remedies provided in Paragraph 13.2 of the Form Lease. 
 Additionally,
notwithstanding any provision of the Form Lease to the contrary, Lessee hereby acknowledges and agrees that it shall at all times maintain a service contract with a reputable pest and rodent control and extermination service provider which provides
for pest and rodent control and extermination services within the Premises at least once per month or at such greater frequency as may be necessary to adequately prevent pest and rodent infestation within the Premises. Lessee shall be solely
responsible for all costs and expenses associated with such pest and rodent control and extermination services provided within the Premises. 
 6. Floor Load Capacity. Lessee shall not place any load on any floor of the Premises which exceeds the Floor Load Capacity (as defined below), or use or operate any machinery, apparatus,
device, equipment or other appliance in or about the Premises that will in any manner injure either of the Buildings, the Project or any part thereof, or that will exceed the monthly watt usage of equipment now or hereafter in place to serve the
Premises, the Buildings 
 AD-3 Lessor’s initials Lessee’s initials 

 

 

  
 or the Project
or any portion thereof without Lessor’s prior written approval. “Floor Load Capacity” means one hundred fifty (150) pounds per square foot. 
 7. Signs and Structures. Lessee shall have no right to place or mount signs or any structure upon or modify in any way the exterior (including the roof) of any of Buildings 3 or 4, except
as permitted in writing by Lessor in its sole and absolute discretion, which permission shall be revocable. Without Lessee’s consent, Lessor reserves the right to place or mount any signage, images or structure on the exterior (including the
roof) of any or all of Buildings 1, 2, 3 and 4 as Lessor deems desirable and to retain any income that may be derived therefrom. 
 8. Leasehold Mortgage. Lessee may, during the Term hereof, subject its leasehold estate in the Premises to the lien of a leasehold mortgage or deed of trust (collectively, “Leasehold Mortgage”), but only upon the
terms, and subject to the conditions which are hereinafter set forth: 
 (a) In no event shall the Lessor’s
interest in the Premises he subjected to the lien of any such Leasehold Mortgage, and Lessor shall not be required to join in any such Leasehold Mortgage. 
 (b) Lessor shall have no liability whatsoever for payment of the principal sum secured by such Leasehold Mortgage, or any interest accrued thereon, or any other sum secured thereby or
accruing thereunder and the mortgagee thereunder shall seek no money judgment against Lessor or Lessor’s interest in the Premises. 
 (c) Such mortgagee shall be required to give Lessor notice of any default by Lessee under the Leasehold Mortgage. 
 (d) The loan secured by such Leasehold Mortgage shall be made by an institutional lender and prior to entering the loan secured by such Leasehold Mortgage, Lessee shall provide Lessor a
copy of the loan documents related to such loan for Lessor’s review and approval, not to be unreasonably withheld. 
 (e) Any Leasehold Mortgage which is recorded pursuant to this paragraph 9 shall contain the following provision: 
 “The Standard Industrial/Commercial Single-Tenant Lease – Net dated August 1, 2009 between Alameda Produce Market, LLC, as Lessor, and American Apparel, Inc., as Lessee, contains specific provisions governing the
rights and obligations of the parties, including obligations due the Lessor, and obligations of the mortgagee. To the extent that any conflict exists between the terms of this leasehold mortgage and the foregoing lease, the parties agree that the
terms of the lease shall be deemed controlling.” 
 Subject to all of the foregoing, in connection with any
such Leasehold Mortgage, Lessor agrees to supplement the Lease with leasehold mortgagee protection provisions reasonably acceptable to Lessor. 
 9. Worker’s Compensation Insurance. Lessee shall maintain worker’s compensation insurance to the extent required by applicable law. 
 AD-4 Lessor’s initials Lessee’s initials 

 

 

  
 10. Relocation.
At any time during the term, Lessor shall have the right, upon giving not less than sixty (60) days prior written notice, to relocate the Premises, provided that (i) the new premises are substantially equivalent in size, and (ii) all costs and
expenses directly related to the physical movement of Lessee shall be borne by Lessor. If relocation occurs, this Lease shall remain in full force and effect, and the new premises shall become the “Premises” for all purposes set forth in
this Lease. 
 11. Intentionally omitted. See attached page AD-8 
 12. Construction. Lessee acknowledges and agrees that certain construction, demolition, maintenance, repair and similar
activities may be undertaken within the Project during the Term, including, without limitation, removal of dirt from the area between Building 2 and the adjacent 7th Street Produce Market. Lessee understands and acknowledges that all such activities
may cause undesirable noise, dust, traffic and other inconvenience. Notwithstanding any such activities and the related effect, if any, upon Lessee and/or Lessee’s Permit tees, Lessee shall have no right to any rent abatement or reduction in
any monetary obligation under this Lease or otherwise. Lessee hereby expressly waives any rights or remedies with respect to any business interruption or other loss or inconvenience caused by any such activities within the Project or otherwise.

 13. Permits. Lessee shall be responsible for obtaining all licenses and permits necessary or appropriate for
it to operate its business in the Premises. Lessor shall not be responsible for any failure of Lessee to obtain or maintain any license or permit that is necessary or appropriate for Lessee to have in order to operate its business in the Premises.

 14. Arbitration of Disputes. If any dispute arises concerning the interpretation, validity, or performance of
this Lease or any of its terms and provisions, including but not limited to the issue of whether or not a dispute is arbitrable, or if any claims arise between Lessor and Lessee relating in any manner to Lessee’s occupancy of the Premises or
Lessee’s business or personal activities upon the Premises, then the parties shall submit such dispute for binding determination before a panel of three retired judges selected from JAMS/Endispute’s office in Los Angeles, California, or
any similar organization mutually acceptable to the parties. Each party shall choose one arbitrator from the list provided by the arbitrating organization, and the two arbitrators so selected shall agree upon a third arbitrator chosen from the same
list. The arbitration shall take place in Los Angeles County, California and shall be conducted in accordance with the then prevailing rules of the arbitrating organization, except as set forth in, this paragraph. The parties shall have all rights
for depositions and discovery as set forth in Section 1283.05 of the California Code of Civil Procedure. The arbitrators shall apply California substantive law and the California Evidence Code to the proceeding. The arbitrators shall have the power
to grant all legal and equitable remedies including provisional remedies and award compensatory damages provided by California law, but the arbitrators may not order relief in excess of what a court could order. The arbitrators shall not have
authority to award punitive or exemplary damages. The arbitrators shall not have the power to commit errors of law or legal reasoning or to make findings of fact except upon sufficiency of the evidence and any award may be vacated or corrected for
any such error. The arbitrators shall decide by majority vote and not by arithmetical averaging or other mathematical means. The arbitrators shall prepare and provide the parties with a written award including factual findings and the al reasoning
upon which the award is based. The arbitrators shall award costs and attorney’s fees in accordance 
 AD-5
Lessor’s initials Lessee’s initials 

 

 

  
 with the terms
of this Lease. Judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction. The parties understand that by agreement to binding arbitration they are giving up the rights they may otherwise have to a trial by a
court or a jury and all rights of appeal, and to an award of punitive or exemplary damages. Pending resolution of any 
 arbitration proceeding, either party may apply to any court of competent jurisdiction for any 
 provisional remedy, including but not limited to a temporary restraining order or a preliminary 
 injunction but excluding any dispute relating to discovery matters, and for enforcement of any 
 such order. The application for or enforcement of any provisional remedy by a party shall not 
 operate as a waiver of the within agreement to submit a dispute to binding arbitration. 
 Notwithstanding the foregoing, Lessor hereby reserves its rights to pursue any and all 
 claims
for or relating to the unlawful detainer of the Premises by Lessee under California Code of Civil Procedure Section 1161 et, seq. in a court of competent jurisdiction within the State of 
 California, including, without limitation, Lessor’s right to seek the return of possession of the Premises upon a
default under the Lease by Lessee, and all corresponding damages, interest, costs and attorneys’ fees relating thereto. 
 Except as otherwise provided in this Lease. 
 15. Prior Leases; Release of Claims. Lessee
(formerly doing business as American Apparel, Inc., a California corporation) is the current occupant of Buildings 3 and 4 of the Project pursuant to the Standard Industrial/Commercial Single-Tenant Lease-Net dated January 1, 2004 (the foregoing,
together with all amendments thereto, and any other leases between Lessor and Lessee or its parents, subsidiaries or other affiliates and their respective predecessors and assigns (“Lessee Affiliates”) are collectively referred to herein
as the “Prior Leases”). All Prior Leases are deemed terminated, provided the foregoing shall not relieve or release Lessee or Lessee Affiliates from any obligations or liabilities that arose or accrued prior to the Commencement Date.
Inconsideration of Lessor entering into this Lease, Lessee hereby releases and forever discharges Lessor and its parents, subsidiaries, and affiliates and their respective predecessors and assigns, and the respective members, shareholders, officers,
directors, employees, representatives, attorneys and agents of all of the foregoing (collectively, “Lessor Affiliates”) from any and all actions, causes of action, suits, debts, liabilities, obligations, claims, demands, damages, losses,
awards, fines, penalties, costs or expenses of any nature whatsoever (including attorneys’ fees and costs incurred in connection with any of the foregoing), known or unknown, suspected or unsuspected, fixed or contingent (collectively,
“Claims”), which Lessee or any of Lessee’s Affiliates have or have ever had against Lessor or any of the Lessor Affiliates; including, but not limited to, any Claims arising under the Lease or any other agreement, whether written or
oral, with respect to the Premises, the Building, any other portion of the Project or any other property owned or controlled by Lessor or any of the other Released Parties. Lessee also hereby releases and forever discharges the Released Parties from
any Claims which Lessee may hereafter ever have, own or hold against the Released Parties with respect to the Premises, the Building, any other portion of the Project or any other property owned or controlled by Lessor or any of the other Released
Parties, or with respect to the conduct of Lessor or any of the other Released Parties, or otherwise; including, but not limited to, any Claims arising under the Lease or any other agreement, whether written or oral, with respect to the Premises,
the Building, any other portion of the Project or any other property owned or controlled by Lessor or any of the other Released Parties. 
 Lessee hereby expressly waives the rights and benefits of California Civil Code § 1542, and does so understanding and acknowledging the significance of said express waiver, which
provides as follows: 
 AD-6 Lessor’s initials Lessee’s initials 

 

 

  
 “A GENERAL
RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE 
 CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER

 FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF 
 KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS 
 OR HER SETTLEMENT WITH THE DEBTOR.” 
 Lessee Initials: 
 AD-7 Lessor’s initials
Lessee’s initials 

 

 

  
 11.
Lessee’s Construction. Lessee shall have the right to build a pedestrian/conveyor bridge between buildings 3 and 4. All work shall be at Lessee’s sole cost and expense. Lessee shall obtain all applicable governmental permits and approvals
from any governmental agency having jurisdiction over the Premises. Lessee shall furnish Lessor with copies of both the permits and the plans and specifications prior to commencement of the work. All work shall be performed in a workmanlike manner
with good and sufficient materials. 
 Catering Trucks. Lessee shall have the right to park two (2) catering
trucks within lessees parking area at no charge to lessee or vendors. 
 Lessee Termination Right. Beginning
August 1, 2013 Lessee shall have the right to terminate this Lease upon 365 days written notice to Lessor. Lessee shall not have the right to give such notice prior to August 1, 2013. 
 AD-8 Lessor’s initials Lessee’s Initials 

 

 

  
 EXHIBIT A

 PROPERTY DATA 
 BUILDING 1 = 
 209,769 S.F.* 
 BUILDING 2= 
 416,445 S.F.* 
 BUILDING 3 = 
 409,733 S.F.* 
 BUILDING 4 = 
 381,576 S.F.* 
 TOTAL BUILDING = 
 1,417,523 S.F.* 
 SITE AREA 
 ZONING 
 1,933,135 S.F. (44.3 AC) 
 M2-2D 
 Eminent Domain Property 
 7TH STREET 
 Parking Area 
 SITE PLAN 
 SCALE: 1* =60’ 
 * APPROXIMATE SQUARE FOOTAGE 
 BUILDING 1 
 BUILDING 2 
 BUILDING 3 
 BUILDING 4 
 ADJACENT BUILDING 
 ADJACENT BUILDING 
 VICINITY MAP 
 NO SCALE 
 CITY OF LOS ANGELES 
 TERMINAL STREET 
 WAREHOUSE STREET 
 ALAMEDA ST 
 PARKING 
 PARKING 
 PARKING 

 

 

  
 EXHIBIT B

 Alameda Produce Market 
 Operating Rules and Regulations 
 September 1, 2000

 1. Hours of Operation: 
 Weekdays – The Bay Street gate is manned for 24 hour access to the Alameda Produce Market (the “Produce Market”). 
 Weekends/Holidays – All persons entering the Produce Market during weekends/holidays on foot shall sign in and sign out.
All trucks and autos are required to stop at the Bay Street gate and the driver shall sign in and sign out. 
 2.
An eight mile per hour speed limit and all traffic signs shall be observed at all times. 
 3. Stopping, loading
and unloading in designated through traffic lanes is prohibited. 
 Specific lanes have been provided for loading
and unloading. Each Lessee is responsible for the regulation of its vehicles and its customers’ vehicles. Vehicles shall be promptly loaded and unloaded and drivers will be asked to leave the Produce Market if they are interfering with normal
operations. Vehicles which break down will be towed at the expense of the vehicle owner if they cannot be repaired or moved out of the traffic lane within thirty (30) minutes after breakdown. 
 4. Lessees and their customers shall comply with the “No Parking” signs. Violators are subject to being towed away
at the vehicle owner’s expense. 
 5. Fork-lifts shall be driven in a safe manner and shall obey all traffic
regulations. Fork-lifts must display the Lessee name, telephone number and the fork-lift number. All fork-lifts must drive in reverse when carrying any load. Fork-lifts shall not be stored on the sidewalks after hours. 
 6. Lessee shall be responsible for the daily sweeping of its own Premises and adjacent loading area. Refuse shall not be
dumped or abandoned on sidewalks, streets or docks. Garbage disposal service vehicles shall not enter the Produce Market until after noon. Lessee must have an adequate number of trash bins so that all bins may be closed and locked daily when full.
Trash bins shall be watertight and regularly cleaned by Lessee. 
 7. In the event that Lessee fails to
thoroughly sweep and clean the loading area adjacent to Lessee’s Premises or fails to remove all trash or refuse from such adjacent areas, then Lessor shall have the right to cause such areas to be swept and cleaned at Lessee’s sole
expense and to assess fees to be paid by Lessee in accordance with the following schedule, with such fees to be due and payable by Lessee within ten (10) days of Lessor’s delivery to Lessee of an invoice setting forth the amount of such fees:

 1st Offense: Lessee shall reimburse Lessor for all costs incurred by Lessor in removing such trash or refuse.

 Addendum B Lessor’s Initials 
 Page 1 of 3 Lessee’s Initials 

 

 

  
 2nd Offense:
Lessee shall reimburse Lessor for all costs incurred by Lessor in removing such trash or refuse and pay Lessor an additional service fee in the amount of $50 .00. 
 3rd Offense: Lessee shall reimburse Lessor for all costs incurred by Lessor in removing such trash or refuse and pay Lessor an additional service fee in the amount of $75.00. 

4th Offense: Lessee shall reimburse Lessor for all costs incurred by Lessor in removing such trash or refuse and pay
Lessor an additional service fee in the amount of $100.00. 
 Subsequent Offenses: 
 Lessee shall reimburse Lessor for all costs incurred by Lessor in removing such trash or refuse and pay Lessor an additional
service fee in the amount of $250.00. As of the 5th offense, Lessor shall have the right to terminate the Lease at any time. 
 All of the fees described above shall be due as additional rent and Lessee’s failure to pay any such fees shall constitute a default under the Lease and grounds for the immediate termination of the Lease by Lessor. 

8. Displays are limited to one pallet in depth adjacent to the Premises. No display or product storage is permitted
outside of the designated display area. 
 9. Unsaleable produce must be disposed of by Lessee within twenty-four
(24) hours of notice by Lessor to Lessee. Lessor may, at Lessee’s cost, dispose of the same upon Lessee’s failure to comply, and, in such event, Lessee shall reimburse Lessor for all costs incurred by Lessor within ten (10) days of
Lessor’s delivery of an invoice to Lessee setting forth the amount of such costs. Such reimbursement amount shall be due as Additional Rent and Lessee’s failure to pay reimbursement amount shall constitute a default under said lease and
grounds for the immediate termination of the Lease by Lessor. 
 10. Overnight storage of produce must satisfy
the requirements of all regulatory agencies. 
 11. No scavengers or unauthorized selling are permitted at any
time. Repacking is permitted only in a Lessee’s Premises with written authorization from the Lessee, which authorization shall be carried at all times. 
 12. No littering, soliciting, drinking of alcoholic beverages or gambling is permitted within the common area of the Produce Market or within public view. 
 13. Each Lessee shall give Lessor copies of all citations, violations, fines, etc. issued to such Lessee by any regulatory
agency. 
 Addendum B Lessor’s Initials 
 Page 2 of 3 Lessee’s initials 

 

 

  
 14. Each Lessee
is responsible for the compliance of their employees, contractors, and customers with all Rules and Regulations contained in this Addendum B. 
 15. A copy of these Rules and Regulations will be attached to each lease file and shall become a part of said lease. 
 16. These Rules and Regulations may be amended by Lessor at any time and from time to time. Any amendment hereto shall become
effective when adopted by- Lessor. 
 Addendum B Lessor’s Initials 
 Page 3 of 3 Lessee’s InitialsUnassociated Document

  
     

    
      Exhibit
10.54

      

      THIS AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT AMENDS AND RESTATES IN ITS ENTIRETY THAT CERTAIN
LOAN AND SECURITY AGREEMENT DATED DECEMBER 27, 2005, AS AMENDED ENTERED INTO BY
DVL, INC., AS BORROWER AND PEMMIL FUNDING LLC, AS LENDER

       

      AMENDED AND
RESTATED

      LOAN AND SECURITY
AGREEMENT

      

      This
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT is made as of December 31,
2009, by and between DVL, INC., a Delaware corporation having its principal
place of business at 70 East 55th
Street, 7th
Floor, New York, New York 10022 (the "Borrower"), and PEMMIL FUNDING LLC, a New
York limited liability company (the “Lender”).

      

      WITNESSETH:

      

      WHEREAS, pursuant to that certain Loan
and Security Agreement, dated December 27, 2005, between Borrower and Lender, as
amended by Amendment No. 1 to Loan and Security Agreement, dated march 15, 2007,
and as further amended by Amendment No. 2 to Loan and Security Agreement, dated
November 10, 2008 (as amended, the “Original Loan Agreement”), Lender made a
loan (the “Original Loan”) to Borrower in the original principal amount of
$2,500,000;

      

      WHEREAS, the Borrower has to date made
principal payments on the Original Loan resulting in the outstanding principal
balance of the Original Loan being reduced to $1,128,563.21;

      

      WHEREAS, the Original Loan matures on
December 31, 2009;

      

      WHEREAS, the Original Loan
was secured by a first priority lien on the Shares which lien was
subsequently subordinated to a loan in favor of Conestoga Bank, as
successor-in-interest to First Penn Bank (the “Senior Lender”) in the amount
$1,500,000 pursuant to the terms of that certain Intercreditor Agreement, dated
June 5, 2006, between Senior Lender and the Lender;

      

      WHEREAS,
the Borrower has requested that the Lender extend the maturity date of the loan
to December 31, 2011 and in connection therewith the Lender has agreed to do so
subject to the Lender obtaining additional collateral for the Loan and subject
to the terms and conditions set forth herein;

      

      NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby amend and restate the Original Loan Agreement in its
entirety and agree as follows:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      1.             BACKGROUND

      

      1.1           Defined
Terms  As used in this Agreement, the following terms shall
have the following meanings (all terms defined in this Article I or other
provisions in the singular shall have the same meanings when used in the plural
and vice versa):

      

      "Affiliate" - With respect to a
specified Person, (i) a Person who, directly or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with, the
specified Person, (ii) any Person who is an officer, director, partner or
trustee of, or serves in a similar capacity with respect to, the specified
Person or of which the specified Person is an officer, partner or trustee, or
with respect to which the specified Person serves in a similar capacity, (iii)
any Person who, directly or indirectly, is the beneficial owner of 10% or more
of any class of equity securities of, or otherwise has a substantial beneficial
interest in, the specified Person or of which the specified Person has a
substantial beneficial interest and (iv) the spouse, issue, or parent of the
specified Person.

      

      “Asset Servicing Agreement” – That
certain Asset Servicing Agreement dated March 27, 1996, among Borrower,
Professional Services Corporation, K. M. Realty Corporation and NPO Management
LLC, as amended, extended or modified.

      

      “Borrower Subsidiary” – shall mean any
entity wholly-owned, directly or indirectly through one or more entities, by the
Borrower.

       

      “Business
Day” - Any day on which banking institutions in New York, New York, are open for
the transaction of banking business.

      

      “Capital Transactions” – shall mean a
sale, transfer, exchange or other disposition, refinancing, financing,
condemnation or casualty affecting all or a portion of the Borrower’s or a
Borrower Subsidiary’s assets.

      

      “Change of Control” - shall mean an
acquisition by an individual or legal entity or group (as defined in Section
13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”)) of more than
50% of the voting rights or capital stock of the Borrower, other than any
Permitted Holder.

       

      “Collateral” – shall mean the Pledged
Loans and the Shares.

       

      “Collateral Assignments” – as defined
in Section 4.1.

       

      “Corporation” – S2 Holdings, Inc., a
Delaware corporation.

       

      “Default Rate” – shall mean the
Interest Rate plus 6% per annum, compounded monthly.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      “Governmental Authority” - Any foreign,
federal, state, regional, local, municipal or other government, or any
department, commission, board, bureau, agency, public authority or
instrumentality thereof, or any court or arbitrator.

      

      “Interest Rate” – 12% per annum,
compounded monthly.

      

      “Lease” – shall mean a lease for space
at a Property.

       

      “Lien” -
Any mortgage, deed of trust, security interest, pledge, hypothecation,
assignment, attachment, deposit arrangement, encumbrance, lien (statutory,
judgment or otherwise), or other security agreement or preferential arrangement
of any kind or nature whatsoever (including any conditional sale or other title
retention agreement, any financing lease involving substantially the same
economic effect as any of the foregoing and the filing of any financing
statement under the UCC or comparable law of any jurisdiction).

      

      “Loan” - as defined in Section
2.1.

      

      “Loan Amount” –
$1,128,563.21

      

      “Loan Documents” – This Agreement, the
Note, the Collateral Assignments and any other documents entered into in
connection herewith and any and all
amendments, modifications, replacements, restatements, and substitutions
thereto..

      

      “Maturity Date”- December 31,
2011

      

      “Net Proceeds” – The excess, if any, of
(i) all cash amounts received by the Borrower or a Borrower Subsidiary in
connection with a Capital Transaction over (ii) the sum of (a) all reasonable
costs and expenses (including the satisfaction of any debt that is the subject
of such Capital Transaction) incurred in connection with such Capital
Transaction and (b) any payments required to be made by Borrower from such
Capital Transaction to the Gross Settlement Fund established in connection with
the disposition of the 1992 class action litigation in which the Borrower was a
defendant.

      

      "Note" - the Second
Amended and Restated Term Note, dated December 31, 2009, from Borrower to Lender
in the original principal amount of $1,128,563.21, together with any and all
amendments, modifications, replacements, restatements, and substitutions
thereto.

      

      "Obligations" - all of the
indebtedness, liabilities and obligations of the Borrower to the Lender, whether
now existing or hereafter arising, whether or not currently contemplated, direct
or indirect, joint or several, certain or contingent, matured or unmatured,
liquidated or unliquidated, secured or unsecured, arising by contract, operation
of law or otherwise, arising out of or incurred under this Agreement or the
Note, including, without limitation, the Loans, and including in every case
interest thereon and all other amounts payable in respect thereof pursuant to
this Agreement.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      “Organizational Documents” – With
respect to any Person, to the extent applicable, its certificate of limited
partnership, certificate of formation, certificate of incorporation, limited
partnership agreement, operating agreement, by-laws and all other equity holder
agreements, voting trusts and similar arrangements applicable to the equity
interests of such Person.

      

      “Permitted Holder” means any Person or
group that, as of the date of this Agreement, beneficially owns (as defined in
Section 13(d) of the Exchange Act) greater than 10% of the Company’s common
stock.

      

      “Pledged Loans” – means those certain
loans listed on Exhibit A hereto, together with any substitutions or
replacements therefor.

      

      “Properties” – means the real
properties and improvements located thereon which secure the Pledged
Loans.

      

      “Senior Lender” – as defined in the
Recitals.

      

      “Shares” – means 100
shares of common stock of the Corporation, together with any (i) stock
certificate representing a stock dividend or in connection with any increase or
reduction of capital, reclassification, merger, consolidation, or sale of
assets, combination of shares or stock splits, (ii) option, warrant, or right,
whether as an addition to or in substitution or in exchange for any of the
Shares, or otherwise, and (iii) dividend or distributions payable in cash
or property at such time, if at all, that the entire unpaid balance of principal
of and interest on the Note outstanding has become due and payable in accordance
with Article 5 hereof.

      

      “UCC” – The Uniform Commercial Code of
the State of New York as in effect from time to time.

      

      
1.2           Borrower.  Borrower
is a corporation organized under the laws of the State of Delaware.

      

      
1.3           Use of Loan
Proceeds.  Borrower represents and warrants that it previously
obtained from Lender for a loan in the amount of TWO MILLION FIVE HUNDRED
THOUSAND AND XX/100 ($2,500,000) (“Loan”), the proceeds of which were used for
the repayment of the Borrower’s existing indebtedness.

      

      
1.4           Loan.  Subject
to all of the terms, conditions and provisions of this Agreement, and of the
agreements and instruments referred to herein, the Lender agrees to make a loan
to the Borrower in a principal amount equal to the Loan Amount, and Borrower
agrees to accept and repay the Loan.

      

      1.5           Rules of
Interpretation.  

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      (a)           A
reference to any document or agreement shall include such document or agreement
as amended, modified or supplemented from time to time in accordance with its
terms and the terms of this Agreement.

       

      (b)           The
singular includes the plural and the plural includes the singular.

       

      (c)           A
reference to any law includes any amendment or modification to such
law.

       

      (d)           A
reference to any Person includes its permitted successors and permitted
assigns.

       

      (e)           The
words "include", "includes" and "including" are not limiting.

       

      (f)           The
words "herein", "hereof", "hereunder" and words of like import shall refer to
this Agreement as a whole and not to any particular section or subdivision of
this Agreement.

       

      (g)           Unless
otherwise expressly indicated, in the computation of periods of time from a
specified date to a later specified date, the word "from" means "from and
including," the words "to" and "until" each mean "to but excluding," and the
word "through" means "to and including."

       

      (h)           This
Agreement and the other Loan Documents are the result of negotiation among, and
have been reviewed by counsel to, among others, the Lender and the Borrower and
are the product of discussions and negotiations among all
parties.  Accordingly, this Agreement and the other Loan Documents are
not intended to be construed against the Lender merely on account of the
Lender's involvement in the preparation of such documents.

      

      2.            
LOAN PROVISIONS.

      

      2.1           Amount of Loan. 
Subject to the terms and conditions set forth in this Agreement, on the date
hereof, the Lender agrees to lend to the Borrower an aggregate amount equal to
the Loan Amount.

      

      
2.2           Maturity
Date.  The Loan shall mature on the Maturity Date.

      

      2.3           Interest Rate and Payment
Terms.  The Loan shall be payable as to interest and principal
in accordance with the provisions of this Agreement and the
Note.  This Agreement also provides for prepayment
rights.

       

      
        
          
          

        

        
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      2.3.1           Payment and Calculation of
Interest.  All interest shall be: (a) payable in arrears
commencing the first Business Day of the month immediately following the month
in which the Loan is made and on the first Business Day of each month thereafter
until the principal together with all interest and other charges payable with
respect to the Loan shall be fully paid; and (b) calculated at the Interest
Rate, or, from and after an Event of Default, the Default Rate, on the basis of
a 360 day year and the actual number of days elapsed; provided, however, that so long
as there is then no Event of Default, the Borrower shall not be required to make
monthly interest payments provided above except in connection with the mandatory
prepayments relating to a Capital Transaction required to be made under Section
2.3.3 hereof, and any accrued interest that is not paid when due as provided
above (subject to applicable grace periods under Section 5.1.1) shall be added
to the principal amount of the Loan.

      

      
2.3.2           Principal.   The
entire principal balance of the Loan shall be due and payable in full on the
Maturity Date.

      

      
2.3.3           Voluntary
Prepayment.  The Loan or any portion thereof may be prepaid in
full or in part by the Borrower at any time upon three (3) days prior written
notice to the Lender, without premium or penalty.  Any voluntary
prepayment shall be applied first to interest and then to
principal.

      

      2.3.4           Mandatory
Prepayment.  The Borrower shall be required to make a
prepayment on account of the Loan, which mandatory prepayment shall be applied
first to interest and then to principal:

      

      (i)           upon
the consummation of a Capital Transaction which results in Net Proceeds, in an
amount equal to 50% of the Net Proceeds,

      

      (ii)          in
full upon (x) the expiration, cancellation or termination of the Asset Servicing
Agreement or (y) a Change in Control;

      

      (iii)         during
the continuance of an Event of Default, (x) upon the receipt of any payments on
account of a Pledged Loan, 100% of the amount of such payment, and (y) upon the
receipt of any dividends or other payments on account of the Shares, 100% of the
amount of such dividend or other payment less any amounts from such dividend or
other payment required to be paid to the Senior Lender.

      

      2.3.5           Maturity.  On
the Maturity Date all accrued interest, principal and other charges due with
respect to the Loan shall be due and payable in full.

      

      2.3.6           Method and Application of
Payment; Date of Credit.  All payments of interest and
principal shall be made in lawful money of the United States in immediately
available funds, without counterclaim or setoff and free and clear of, and
without any deduction or withholding for, any taxes or other payments, unless
required by applicable law.  All payments received on account of the
Loan shall be applied first accrued and unpaid interest and then to
principal.

      

      

2.4           Acceleration.  The
Lender may, in its sole discretion, accelerate the Loan after the occurrence and
during the continuance of an Event of Default.

    
       

      
        
          
          

        

        
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      3.             REPRESENTATIONS,
WARRANTIES AND COVENANTS

      

      Section
3.1                Representations and
Warranties.  The Borrower hereby represents and warrants to the
Lender as follows:

       

      3.1.1           Organization. 
The Borrower (1) is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware, (2) has all requisite company
power to own its property and conduct its business as now conducted and as
presently contemplated, and (3) is in good standing as a foreign limited
liability company and is duly authorized to do business in each jurisdiction
where such qualification is necessary except where a failure to be so qualified
would not have a material adverse effect on the Borrower.

       

      3.1.2           Due
Execution.  The execution, delivery and performance of this
Loan Agreement and the other documents entered into in connection herewith to
which the Borrower is or is to become a party and the transactions contemplated
hereby and thereby (a) are within the authority of the Borrower, (b) have been
duly authorized by all necessary corporate action, (c) do not conflict with the
Organizational Documents, or (d) do not conflict with, cause a breach of default
under or give any other entity or person a right of termination, amendment or
acceleration or cancellation of, or result in the creation of a lien on any
asset of the Borrower, pursuant to the terms of any note, bond, mortgage,
indenture, contract, agreement, lease, license, permit, franchise or other
instrument or obligation to which the Borrower is a party or by which the
Borrower or any of its properties or assets is bound or affected, except, in the
case of this clause (e), as would not have a material adverse effect on the
Borrower.

       

      3.1.3           Enforceability.  The
execution and delivery of this Loan Agreement and the other documents to be
entered into in connection herewith to which the Borrower is or is to become a
party will result in valid and legally binding obligations of the Borrower
enforceable against it in accordance with the respective terms and provisions
hereof and thereof, except as enforceability is limited by bankruptcy,
insolvency, reorganization, moratorium or other laws relating to or affecting
generally the enforcement of creditors' rights and except to the extent that
availability of the remedy of specific performance or injunctive relief is
subject to the discretion of the court before which any proceeding therefor may
be brought.

       

      3.1.4           Consents.  The
execution, delivery and performance by the Borrower of this Loan Agreement and
the other documents to be entered into in connection herewith to which it is or
is to become a party and the transactions contemplated hereby and thereby do not
require the approval or consent of, or filing with, any governmental agency or
authority other than those already obtained, other than required filings with
the Securities and Exchange Commission.

       

      3.1.5           Litigation. 
There are no actions, suits, proceedings or investigations of any kind pending
or threatened against the Borrower before any governmental agency that, if
adversely determined, might, either in any case or in the aggregate, (i) have a
material adverse effect on the Borrower or (ii) materially impair the right of
the Borrower and its subsidiaries, considered as a whole, to carry on business
substantially as now conducted by them.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      3.1.6             No
Violations.  The Borrower is not in violation of any provision
of its Organizational Documents, or any agreement or instrument to which it may
be subject or by which it or any of its properties may be bound or any decree,
order, judgment, statute, license, rule or regulation, in any of the foregoing
cases in a manner that could result in the imposition of substantial penalties
or have a material adverse effect on the Borrower.

       

      3.1.7             Representations with Respect
to the Shares.  The Borrower is the legal and beneficial owner of
the Shares, and except for the lien granted hereunder to the Lender and the lien
granted in favor of Senior Lender, are owned by the Borrower free and clear of
any pledge, mortgage, hypothecation, lien, charge, encumbrance, security
interest or other encumbrance in such shares or the proceeds
thereof.  The pledge of the Shares pursuant to this Agreement creates
a valid security interest in such Shares as security for the prompt and full
satisfaction of the Obligations and the Lender shall, upon delivery of such
Shares to it, have a perfected security interest in such Shares junior only to
the lien of the Senior Lender.  The Shares represent all of the issued
and outstanding stock of the Corporation.

      

      3.1.8             Representations
with Respect to the Pledged Loans. Except
for the lien granted hereunder to the Lender, Borrower is the legal and
beneficial owner of the Pledged Loans, free and clear of any
Liens.  The pledge of the Pledged Loans pursuant to this Agreement
creates a valid security interest in the Pledged Loans as security for the
prompt and full satisfaction of the Obligations and the Lender shall, upon
delivery of such Pledged Loans to Lender, together with such assignment
documents as Lender may request Lender will have a perfected first priority
security interest in the Pledged Loans.  The Pledged Loans constitute
valid mortgage loans which are recorded in the appropriate land records and are
secured by the applicable Property.

      

      3.1.9             Taxes.  Borrower
and has made all required tax filings and have paid all federal, state and local
taxes applicable to them and/or their respective assets.

      

      3.1.10           Bankruptcy
Filings.  The Borrower is not contemplating either a filing of
a petition under any state or federal bankruptcy or insolvency laws or the
liquidation of all or a major portion of its assets or property, and the
Borrower has no knowledge of any Person contemplating the filing of any such
petition against any of the Borrower.

      

      3.1.11           Options.  No
Person holds a right of first refusal or option to purchase with respect to the
Shares or Pledged Loan.

      

      3.1.12           Investment
Company.  Borrower is not an “investment company” or a company
“controlled” by an “investment company,” within the meaning of the Investment
Company Act of 1940, as amended.

      

      3.1.13           Holding
Company.  Borrower is not a “holding company,” or a “subsidiary
company” of a “holding company,” or an “affiliate” of a “holding company” or of
a “subsidiary company” of a “holding company,” within the meaning of the Public
Utility Holding Company Act of 1935, as amended.

       

      
        
          
          

        

        
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      Section
3.2                Covenants.  The
Borrower covenants and agrees as follows:

      

      3.2.1           Books and
Records.  The Borrower shall keep and maintain proper and accurate
books, records and accounts reflecting all of the financial affairs of the
Borrower and all items of income and expense in connection with its business and
operations and in connection with any services, equipment or furnishings
provided in connection with the operation of the business of the Borrower,
whether such income or expense is realized thereby or by any other person or
entity.

      

      3.2.2           Tax
Returns.  The Borrower shall cause all tax returns required to
be filed by it to be filed on a timely basis and any taxes due on account
thereof to be paid on a timely basis, unless and to the extent that such taxes
are being diligently contested in good faith and by appropriate proceedings and
appropriate reserves therefor have been established.

      

      3.2.2           Organizational
Documents.  Except with the prior written consent of the
Lender, the Borrower shall not permit to be modified, amended, supplemented or
terminated in any material respect, or the Corporation’s Organizational
Documents, or any of them.

      

      3.2.4           Legal
Existence.  The Borrower will do or cause to be done all things
necessary to preserve and keep in full force and effect its legal existence,
rights and franchises.

      

      3.2.5           Security Agreements and
Financing Statements.  As of the date of closing hereunder,
there shall be no matters of record with respect to the Properties other than
those of record as of the date hereof.

       

      3.2.6           Insurance.  The
Borrower will maintain with financially sound and reputable insurers insurance
with respect to its properties and business against such casualties and
contingencies as shall be in accordance with the general practices of businesses
engaged in similar activities in similar geographic areas and in amounts,
containing such terms, in such forms and for such periods as may be reasonable
and prudent.

      

      3.2.7           Compliance with
Laws.  The Borrower will comply in all material respects with
(a) the applicable laws and regulations wherever its business is conducted, (b)
the provisions of its Organizational Documents, (c) all material agreements and
instruments by which it or any of its properties may be bound, and (d) all
applicable decrees, orders, and judgments.  If any authorization,
consent, approval, permit or license from any office, agency or instrumentality
of any government shall become necessary or required in order that the Borrower
may fulfill any of its obligations hereunder or any of the other Loan Documents
to which the Borrower is a party, the Borrower will promptly take or cause to be
taken all reasonable steps within the power of the Borrower to obtain such
authorization, consent, approval, permit or license and furnish the Lender with
evidence thereof.

       

      
        
          
          

        

        
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      3.2.8           Indemnification.  Borrowers
shall at all times, both before and after repayment of the Loan, at its sole
cost and expense defend, indemnify, exonerate and save harmless Lender and all
those claiming by, through or under Lender (“Indemnified Party”) (to the extent
not paid by Borrowers in this Section 3.2.8 or under the applicable provisions
of this or any other Loan Document) against and from all damages, losses,
liabilities, obligations, penalties, claims, litigation, demands, defenses,
judgments, suits, proceedings, costs, disbursements or expenses of any kind
whatsoever, including, without limitation, reasonable attorneys’ fees and
experts’ fees and disbursements, which may at any time (including, without
limitation, before or after discharge or foreclosure of the Security Documents)
be imposed upon, incurred by or asserted or awarded against the Indemnified
Party and arising from or out of:

      

      (i)           any
liability for damage to person or property arising out of any violation of any
applicable legal requirement by the Borrower,

      

      (ii)          as
a result of litigation that may arise in connection with the Borrower’s
activities (excluding the Loan or the Loan Documents), or

      

      (iii)         any
and all liabilities, damages, penalties, costs, and expenses, relating in any
manner to any brokerage or finder’s fees in respect of the Loan.

      

      Notwithstanding
the foregoing, an Indemnified Party shall not be entitled to indemnification in
respect of claims arising from acts of its own gross negligence or willful
misconduct to the extent that such gross negligence or willful misconduct is
determined by the final judgment of a court of competent jurisdiction, not
subject to further appeal, in proceedings to which such Indemnified Party is a
proper party.

      

      3.2.9           Costs and Expenses.
Borrower shall pay all legal fees reasonably incurred by Lender in connection
with the implementation of the Loan and the administration of the Loan, and
reasonably incurred by the Lender in connection with the enforcement of the
Lender’s rights under the Loan Documents.  Borrowers’ obligations to
pay such costs and expenses shall include, without limitation, all attorneys’
fees and other costs and expenses for preparing and conducting litigation or
dispute resolution arising from any breach by Borrower of any covenant,
warranty, representation or agreement under any one or more of the Loan
Documents.  Unless an Event of Default has occurred and is then
continuing, the Lender shall use its best efforts to notify the Borrower prior
to the incurrence of any such cost or expense if the aggregate amount of such
costs and expenses in any one calendar year will exceed $5,000.00; provided,
however, that the failure to provide such notice shall not affect in any manner
whatsoever on the Borrowers’ obligations hereunder.

      

      3.2.10           Transfer
of Shares; Issuance of Additional Share.  Except for
the lien granted in favor of the Senior Lender, the Borrower shall not
sell, assign or otherwise encumber the Shares until the Obligations are
satisfied in full.  The Borrower shall not consent to the issuance of,
or permit the Corporation to issue, any additional equity interests in the
Corporation.

      

      3.2.11           Transfer
of Pledged Loans.  The
Borrower shall not sell, assign or otherwise encumber the Pledged Loans until
the Obligations are satisfied in full.  The Borrower shall not consent
to any amendment, deferral, extension, modification, increase, renewal,
replacement, consolidation, supplement or waiver to the Pledged Loans or any
documents constituting a portion thereof.

       

      
        
          
          

        

        
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      3.2.12           Leases.  Borrower
shall notify Lender immediately upon becoming aware of the breach of any
material condition contained in any Lease by any lessee thereunder and Borrower
shall make all commercially reasonable efforts to cause said breach to be cured
by the lessee.  Borrower will not consent to any modification of a
Lease, the effect of which could have a material adverse effect on the value of
the applicable Property.

       

      3.2.13           Further
Assurances.  Borrower shall execute, re-execute, cause third
parties involved in the loan transaction to execute and/or re-execute and to
deliver to Lender or its legal counsel, as may be deemed appropriate, any
document or instrument signed in connection with the Loan which was incorrectly
drafted and/or signed, as well as any document or instrument which should have
been signed at or prior to the closing of the Loan, but which was not so signed
and delivered.  Borrower agrees to comply with any written request by
Lender within ten (10) days after receipt by Borrower of such
request.

      

      4.           COLLATERAL SECURITY,
PLEDGE

      

      As
security for the prompt and full satisfaction and payment of the Obligations,
the Borrower hereby pledges and assigns the Shares and the Pledged Loans to the
Lender and grants the Lender a security interest therein subject only, in the
case of the Shares, to the lien of the Senior Lender.  The Borrower
shall deliver, upon execution of this Agreement, Collateral Assignments of Note,
Mortgage and Other Documents from Borrower to Lender (the “Collateral
Assignments”) with respect to the Pledged Loans.

      

      5.           EVENTS
OF DEFAULT

      

      5.1           Default.  If any
one or more of the following events ("Events of Default") shall occur and be
continuing with respect to the Borrower, the entire unpaid balance of principal
of and interest on the Note outstanding shall immediately become due and payable
upon written notice to that effect given to the Borrower by the Lender (except
that in the case of the occurrence of any Event of Default described in
subparagraph 5.1.5 hereof, no such notice shall be required), without
presentment or demand for payment, notice of non-payment, protest or further
notice or demand of any kind, all of which are expressly waived by the
Borrower:

      

      5.1.1           Payments. 
Failure by the Borrower to make any payment of principal or interest upon the
Note when due; or

      

      5.1.2           Covenants. 
Failure by a Borrower to perform or observe in any material respect any of the
covenants or agreements contained in Section 3.2 hereof; or

      

      5.1.3           Representations and
Warranties.  Any representation or warranty made by the Borrower to
the Lender hereunder or in connection with the making of the Loans shall have
been false or misleading in any material respect when made or delivered;
or

       

      
        
          
          

        

        
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      5.1.4           Default under a Loan
Document.  Any other default in any material respect in the
performance of any term or provision of the Note, or of any of the other Loan
Documents, or a breach, or other failure to satisfy, in any material respect,
any other term, provision, condition or warranty under the Note, or any other
Loan Document, regardless of whether any then undisbursed portion of the Loan is
sufficient to cover any payment of money required thereby, and the specific
grace period, if any, allowed for the default in question shall have expired
without such default having been cured.

      

      5.1.5           Financial Status and
Insolvency.  The Borrower shall: (i) admit in writing its
inability to pay its debts generally as they become due; (ii) file a petition in
bankruptcy or a petition to take advantage of any insolvency act; (iii) make an
assignment for the benefit of creditors; (iv) consent to, or acquiesce in, the
appoint­ment of a receiver, liquidator or trustee of itself or of the whole
or any substantial part of its properties or assets; (v) file a petition or
answer seeking reorganiza­tion, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under the Federal Bankruptcy laws or
any other applicable law; (vi) have a court of competent jurisdiction enter an
order, judgment or decree appointing a receiver, liquidator or trustee of the
Borrower, or of the whole or any substantial part of the property or assets of
the Borrower, and such order, judgment or decree shall remain unvacated or not
set aside or unstayed for sixty (60) days; (vii) have a petition filed against
it seeking reorganization, arrangement, composition, readjustment, liquidation,
dissolution or similar relief under the Federal Bankruptcy laws or any other
applicable law and such petition shall remain undismissed for sixty (60) days;
(viii) have, under the provisions of any other law for the relief or aid of
debtors, any court of competent jurisdic­tion assume custody or control of
the Borrower or of the whole or any substantial part of its property or assets
and such custody or control shall remain unterminated or unstayed for sixty (60)
days; or (ix) have an attachment or execution levied against any substantial
portion of the property of the Borrower or against any substantial portion of
the Collateral which is not discharged or dissolved by a bond within sixty (60)
days; or

      

      5.1.6           Loan
Documents.  If any Loan Document for any reason other than the
satisfaction in full of all Obligations shall cease to be in full force and
effect (other than in accordance with its terms), thereby preventing the Lender
from obtaining the practical realization of the benefits thereof, or if any Loan
Document shall be declared null and void, or if the Liens and security interests
purported to be created by any of the Loan Documents shall cease to be valid,
perfected, first priority (except as otherwise expressly provided herein)
security interests;

      

      5.1.7           Judgments.  One
or more judgments or decrees shall be entered against the Borrower involving a
liability (not paid or fully covered by a reputable and solvent insurance
company) and such judgments and decrees either shall be final and non-appealable
or shall not be vacated, discharged or stayed or bonded pending appeal for any
period of sixty (60) consecutive days, and the aggregate amount of all such
judgments exceeds $250,000.

      

      5.1.8           Change of
Control.  If a Change of Control shall occur.

      

      5.1.9           Termination of Asset
Servicing Agreement.  If the Asset Servicing Agreement shall
expire or be cancelled or terminated.

       

      
        
          
          

        

        
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      5.1.10           Default of Other
Obligations.  Any failure by the Borrower to pay at maturity,
or within any applicable grace period, any obligation for borrowed money, or in
respect of any capitalized lease, in an aggregate amount exceeding $500,000, or
any failure to observe or perform any material term, covenant or agreement
contained in any agreement by which the Borrower is bound, evidencing or
securing borrowed money, or in respect of any capitalized lease, such that the
holder or holders thereof or of any obligations issued thereunder have
accelerated the maturity thereof.

      

      5.2           Remedies.  In case any one or more of
the Events of Default shall have occurred and be continuing, and whether or not
the Lender shall have accelerated the maturity of the Loans, the Lender, if owed
any amount with respect to the Loan, may proceed to protect and enforce its
rights by suit in equity, action at law or other appropriate proceeding, whether
for the specific performance of any covenant or agreement contained in this Loan
Agreement and the other documents entered into in connection herewith or any
instrument pursuant to which the Obligations to the Lender are evidenced,
including as permitted by applicable law the obtaining of the ex parte appointment of a
receiver, and, if such amount shall have become due, by declaration or
otherwise, proceed to enforce the payment thereof or any other legal or
equitable right of the Lender.  No remedy herein conferred upon the
Lender is intended to be exclusive of any other remedy and each and every remedy
shall be cumulative and shall be in addition to every other remedy given
hereunder or now or hereafter existing at law or in equity or by statute or any
other provision of law.  In addition to all of its other rights
and remedies hereunder the Lender shall have all of the rights and remedies of a
secured party under the UCC from time to time and shall comply with all
procedures thereunder for disposition and sale of the Collateral.  The
Lender shall have the right to sell or otherwise dispose of all or any of the
Collateral subject to appropriate UCC rules.  Such sales may be
adjourned and continued from time to time, with or without notice.  To
enable the Lender to effect any such sale, assignment and/or transfer and to
take any action and to execute any instrument which the Lender may deem
necessary or advisable to accomplish the purposes of this Agreement, the
Borrower hereby makes, constitutes and appoints the Lender as the true and
lawful attorney, in its name, place and stead, and for its account and risk, to
make, executed and deliver any and all assignments or other instruments which
the Lender may deem necessary or proper to effectuate the authority hereby
conferred by signing the Borrower’s name only or by signing the same as its
attorney-in-fact, as may be deemed by the Lender to be necessary or proper in
connection with any sale, assignment, or transfer of all or any part of the
Collateral.  The foregoing power of attorney is coupled with an
interest and shall be a continuing one and irrevocable so long as any portion of
the Obligations remains unpaid in whole or in part.  The Lender may
purchase all or any part of the Collateral at public sale or, if permitted by
law, private sale, subject to appropriate UCC rules, and in lieu of actual
payment of such purchase price, may set off the amount of such price against the
Obligations.

      

      5.3           Remedies of the
Essence.  The various rights and remedies of the Lender under
this Agreement are of the essence of the Agreement, and the Lender shall be
entitled to obtain a decree requiring specific performance of each such right
and remedy.

       

      
        
          
          

        

        
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      5.4           Recourse.  The
Loan shall be fully recourse to the Borrower and all of its assets.

      

      6.           MISCELLANEOUS

      

      6.1           Notices.  Any
notices, elections or demands permitted or required to be made under this
Agreement shall be in writing, signed by the party giving such notice, election
or demand and shall be given either by personal delivery sent postage prepaid by
registered or certified mail, return receipt requested or sent by overnight
carrier, or via facsimile followed by certified mail and shall be deemed to have
been given when evidence of receipt is received by the sender in each case
addressed as follows:

      

      if to Lender:

      

      Pemmil Funding LLC

      70 East 55th
Street, 7th
Floor

      New York, New York 10022

      Attention:  Mr. Jay
Chazanoff

      Facsimile No.:  (212)
350-9911

      

      if to
Borrower:

      

      DVL, INC.

      70 East 55th
Street, 7th
Floor

      New York, New York 10022

      Attention:  Chief Financial
Officer

      Facsimile No.:  (212)
350-9911

      

      with a copy to:

      

      Mr. Alan Casnoff

      1321 Intrepid Avenue

      Suite
200

      Philadelphia,
PA 19112

      Fax:  215-320-3785

      

      A party hereto may change the address
to which notices shall be sent by written notice to all other parties hereto
(said change of addresses to be effective upon receipt by all other parties
hereto).

      

      6.2           Lender's Right to Perform on
a Borrower's Behalf.  If the Borrower shall fail to observe or
perform any of the terms, conditions, covenants and agreements to be observed or
performed by it hereunder or under the Note, the Lender may (but shall not be
obligated to) do the same or cause it to be done or performed or observed,
either in its name or in the name and on behalf of the Borrower, and the
Borrower hereby authorizes the Lender so to do.

      

      6.3           Lender's Right to Use Agents
and to Act in Name of Borrower.  The Lender may exercise its
rights and remedies hereunder or under the Note through an agent or other
designee and, in the exercise thereof, the Lender or any such other Person may
act in its own name or in the name and on behalf of the Borrower.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      6.4           Governing
Law.  This Agreement shall be construed in accordance with and
governed by the laws of the State of New York, without regard to principles of
conflicts of law thereof.

      

      6.5           Counterparts. 
This Agreement may be signed in any number of counterparts, each of which shall
be an original, with the same effect as if the signatures thereto were upon the
same instrument.

      

      6.6           Entire
Agreement.  This Agreement embodies the entire agreement among
the Borrower and the Lender relating to the subject matter hereof and supersedes
all prior agreements, representations and understandings, if any, relating to
the subject matter hereof.

      

      6.7           Successors and
Assigns.  All of the provisions of this Agreement shall be
binding and inure to the benefit of the Borrower and the Lender and their
respective successors and assigns; provided, however, that the
Borrower is not permitted to make any assignment except with the prior written
consent of Lender.

      

      6.8           Captions.  Captions
to Sections and subsections of, and Schedules and Exhibits to, this Agreement
are included for convenience of reference only and shall not constitute a part
of this Agreement for any other purpose or in any way affect the meaning or
construction of any provision of this Agreement.

      

      6.9           Pronouns and
Gender.  All pronouns and variations thereof used herein shall,
regardless of the pronoun actually used, be deemed to refer to the masculine,
feminine, neuter, singular or plural as the identity of the person or persons
may, in the context in which such pronoun is used, require.

      

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          15

          
            

          

        

        
          
          

        

      

       

      IN WITNESS WHEREOF, this Agreement has
been executed as of the date and year first set forth above.

       

       

      
        
          	 	
                  LENDER:

                	 
	 	 	 
	 	
                  PEMMIL
      FUNDING LLC

                	 
	 	 	 	 
	
                   

                	
                  By: 

                	/s/ Jay
      Chazanoff	 
	 	 	
                  Name:
      Jay Chazanoff

                  Title:
      Executive Officer

                	 
	 	 	 	 	 
	 	 	 
	 	
                  BORROWER:

                	 
	 	 	 	 	 
	 	 	
                  DVL,
      INC.

                	 
	 	 	 	 	 
	 	 	
                  By: 

                	/s/ Alan
      Casnoff	 
	 	 	 	
                  Name:
      Alan Casnoff

                  Title:
      Chief Executive Officer

                	 

        

      

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      Exhibit
A

      

      PLEDGED
LOANS

      

      

      Loan made
by DVL, Inc., as successor in interest to Kenbee Management-Oklahoma, Inc. to
Sonya Associates Limited Partnership in the original principal amount of
$1,322,000

      

      Loan made
by DVL, Inc., as successor in interest to Kenbee Management-Oklahoma, Inc. to
Douglas Associates in the original principal amount of $1,496,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]