Document:

Exhibit 10.1

 

LEASE AGREEMENT

 

FOR

 

LANDMARK INDUSTRIAL PARK

 

BETWEEN

 

NATOMAS MEADOWS, LLC,

AS LANDLORD

 

AND

 

OVERSTOCK.COM, INC. AS TENANT

 

DATED

 

April 8, 2008

 

1

 

TABLE OF CONTENTS

 

	
  1.

  	
  Table of Contents

  	
  2

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Article 1, Leased Premises

  	
  3

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Article 2, Leased Premises

  	
  4

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Article 3, Rent

  	
  7

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Article 4, Insurance

  	
  8

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Article 5, Condition and Maintenance
  of the Property

  	
  9

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Article 6, Authorized Use; Compliance
  with Laws

  	
  13

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Article 7, Right of Entry by Landlord

  	
  16

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Article 8, Assignment and Subletting

  	
  16

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Article 9, Damage or Destruction

  	
  17

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Article 10, Injuries and Property
  Damage

  	
  18

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Article 11, Surrender of Premises

  	
  20

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Article 12, Quiet Enjoyment

  	
  21

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Article 13, Default and Bankruptcy

  	
  21

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Article 14, Miscellaneous

  	
  23

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Signature Page

  	
  27

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Exhibit A

  	
  28

  
	
   

  	
   

  	
   

  
	
  18.

  	
  Exhibit B

  	
  29

  
	
   

  	
   

  	
   

  
	
  19.

  	
  Exhibit C

  	
  30

  
	
   

  	
   

  	
   

  
	
  20.

  	
  Exhibit D

  	
  31

  

 

2

 

LEASE AGREEMENT

 

FOR

 

LANDMARK INDUSTRIAL PARK

 

THIS AGREEMENT TO LEASE (the “Lease”) dated as of this 8th day
of April, 2008, by and between NATOMAS MEADOWS, LLC, a California limited
liability company, hereinafter called “Landlord,” and OVERSTOCK.COM, INC. a
Delaware corporation qualified to do business in Utah, hereinafter called “Tenant.”

 

WITNESSETH:

 

WHEREAS, Tenant desires to lease from Landlord, for the term set forth
below, for Tenant’s use, the Leased Premises, as hereinafter defined, now being
constructed on that certain real property known as “The Landmark Industrial
Park”, located at approximately 4800 West and 1862 South, Salt Lake City, Utah
(hereinafter the “Property”).

 

NOW, THEREFORE, in consideration of the covenants and premises
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, it is agreed by the parties
hereto as follows:

 

ARTICLE 1

LEASED
PREMISES

 

1.1           LEASED
PREMISES:  Landlord hereby demises and
leases to Tenant, and Tenant hereby leases and takes from Landlord,
approximately 686,865 gross square feet of office and warehouse space (the “Leased
Premises”) located in that certain building (the “Building) now being
constructed upon the Property, a site plan of which building and space is
attached hereto as Exhibit A (the “Site Plan”), together with (i) the
building standards listed on Exhibit B hereto, and the tenant improvements
to be constructed by Landlord in the Leased Premises which are described on Exhibit C
attached hereto (the “Tenant Improvements”), (ii) the exclusive use of the
dock, trailer storage area and car parking area adjacent to the Leased
Premises, as noted on the Site Plan, and (iii) the exclusive right to use
and enjoy all improvements, ingresses and egresses located on the Property as a
part of or outside of the Building, including without limitation driveways,
common access ways in the truck court area between the buildings and otherwise,
sidewalks and landscaping, for the term and upon the rental herein set forth.

 

1.2           OPTION
TO MOVE:  [Intentionally deleted.]

 

3

 

ARTICLE 2

LEASED PREMISES

 

2.1 TERM: 
This Lease shall be for a term of approximately seven (7) years (the
“Term”) commencing on the Commencement Date, as hereinafter defined, and ending
on August 31, 2015 (the “Fixed Expiration Date”), or on such earlier or
later date upon which the Term shall sooner or later end pursuant to any of the
terms, conditions or covenants of this Lease or
pursuant to law (the “Expiration Date”).

 

2.2 POSSESSION:  After execution of this Lease, Landlord shall
deliver either possession of the Leased Premises to Tenant on August 1,
2008 or non-exclusive occupancy for the purpose of installing tenant’s
equipment and improvements and otherwise preparing the Leased Premises for
occupancy, including a Tenant call center, of a temporary or permanent nature
(the “Call Center”), including a code-compliant rest restroom facility in
proximity to the Call Center.   Landlord
and Tenant agree to reasonably cooperate and coordinate such that early
possession and construction of the Call Center does not materially interfere
with Landlord’s construction of the Building and completion of the Leased
Premises.  Landlord shall deliver
occupancy of the Leased Premises to Tenant for its sole use and occupancy under
this Lease on or about September 1, 2008 or as soon thereafter as
construction of the Leased Premises has been substantially completed and an
occupancy permit obtained (the “Commencement Date”).  Landlord in any case shall use commercially
reasonable efforts to assure that occupancy permits shall at least allow
operation of the Call Center by September 1, 2008.  If the Commencement Date has not occurred by October 1,
2008, for reasons other than delays attributable to Tenant, Tenant shall have
the right to immediately cancel this lease without any liability or penalty
whatsoever, and  Landlord shall return to Tenant all monies
paid by Tenant to Landlord.

 

2.3 OPTION TO RENEW:  (A)  If this Lease is then still in full
force and effect, and if Tenant shall not then be in default under any of the
material terms of this Lease (after any applicable notice and cure periods),
the initial Term of this Lease may be extended for two additional consecutive periods
of (2) years each (each such 2-year period is referred to herein as the “Extended
term”).  Tenant shall give written notice
to Landlord of its desire to elect to extend the Term (the exercise of either
election is referred to herein as an “Option to Renew”) to include the Extended
Term by not later than March 1, 2015, in the case of the first 2-year
option to renew period that would begin on September 1, 2015 and end on August 31,
2017 (the First Option Period”), and March 1, 2017, in the case of the
second 2-year option to renew period that would begin on September 1, 2017
and end on August 31, 2019 (the “Second Option Period”); provided that the
Section Option Period may only be exercised by Tenant if the First Option
Period had previously been exercised.  If
Tenant does not give timely written notice to Landlord of its election to
extend the Term for the particular Extended Term in question, with time being
of the essence, the Term shall expire and this Lease shall terminate as of the
end of the Fixed Expiration Date, or as of the end of the First Option Period
if the First Option Period had previously been exercised pursuant to the first
Option to Renew.  If the Term is extended
for either or both of the Extended Terms, all of the same terms, provisions and
conditions set forth in

 

4

 

the Lease shall continue in
full force and effect, except that in each case the “Base Rent” shall be equal
to the then prevailing market rent for comparable space in the geographic
locality of the Leased Premises (“Market Rent”).  If the Parties reasonably cannot agree on what
Market Rent is, then each party shall select a qualified professional broker or
appraiser to determine the fair rental value for the Premises.  If the fair rental value as determined by
each party’s professional shall be within five percent (5%) of the other
professional’s determination, then Market Rent shall be the average of those
two values.  If the two professionals’
determinations of fair rental value are not within five percent (5%) of each
other, then the two professionals shall select a third qualified professional
appraiser or broker, who shall make a determination as to the fair rental value
of the Premises.  In that event, the
Market Rent shall be the average of the fair rental values that are numerically
closest to each other.

 

(b)  In any case where an Extended Term
is in effect, any reference in this Lease to the word “Term” shall mean the
initial term hereof as set forth in Section 2.1 together with the
applicable Extended term and the Fixed Expiration Date shall also be extended
accordingly, with the Base Rent adjusted in accordance with the immediately
preceding subparagraph

 

5

 

ARTICLE 3

RENT

 

3.1 RENT:

 

(a)           Tenant shall pay to Landlord, payable in advance on
the first day of each month, together with any other charges provided for in
this Lease at the monthly rate set forth in this Section 3.1(a) (the
“Base Rent”).  Rent for any period during
the term of this Lease that is for less than one month shall be a pro rata
portion of the monthly installment.  The
Base Rent shall be as follows:

 

	
  Year

  	
   

  	
  PERIOD

  	
   

  	
  SQUARE

  FOOTAGE

  	
   

  	
  RENTAL

  RATE

  	
   

  	
  GROSS

  RENT

  	
   

  	
  RENT

  CREDIT

  (*)

  	
   

  	
  NET

  RENT

  	
   

  	
  EFFECTIVE

  RENTAL

  RATE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  September 1,
  2008 to January 31, 2009

  	
   

  	
  232,900

  	
   

  	
  $

  	
  0.3300

  	
   

  	
  $

  	
  76,857

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  76,857

  	
   

  	
  $

  	
  0.3300

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  February 1,
  2009 to May 31, 2009

  	
   

  	
  435,400

  	
   

  	
  $

  	
  0.3300

  	
   

  	
  $

  	
  143,682

  	
   

  	
  $

  	
  12,474

  	
   

  	
  $

  	
  131,208

  	
   

  	
  $

  	
  0.3014

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  June 1, 2009 to August 31, 2009

  	
   

  	
  525,400

  	
   

  	
  $

  	
  0.3300

  	
   

  	
  $

  	
  173,382

  	
   

  	
  $

  	
  12,474

  	
   

  	
  $

  	
  160,908

  	
   

  	
  $

  	
  0.3063

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  September 1,
  2009 to May 31, 2010

  	
   

  	
  686,865

  	
   

  	
  $

  	
  0.3401

  	
   

  	
  $

  	
  233,603

  	
   

  	
  $

  	
  14,574

  	
   

  	
  $

  	
  219,029

  	
   

  	
  $

  	
  0.3189

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  June 1, 2010 to August 1, 2010

  	
   

  	
  686,865

  	
   

  	
  $

  	
  0.3401

  	
   

  	
  $

  	
  233,603

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  233,603

  	
   

  	
  $

  	
  0.3401

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  September 1, 2010 to August 31, 2011

  	
   

  	
  686,865

  	
   

  	
  $

  	
  0.3504

  	
   

  	
  $

  	
  240,677

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  240,677

  	
   

  	
  $

  	
  0.3504

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  September 1, 2011 to August 31, 2012

  	
   

  	
  686,865

  	
   

  	
  $

  	
  0.3611

  	
   

  	
  $

  	
  248,027

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  248,027

  	
   

  	
  $

  	
  0.3611

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  September 1, 2012 to August 31, 2013

  	
   

  	
  686,865

  	
   

  	
  $

  	
  0.3750

  	
   

  	
  $

  	
  257,574

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  257,574

  	
   

  	
  $

  	
  0.3750

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  September 1, 2013 to August 31, 2014

  	
   

  	
  686,865

  	
   

  	
  $

  	
  0.3834

  	
   

  	
  $

  	
  263,344

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  263,344

  	
   

  	
  $

  	
  0.3834

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  September 1, 2014 to August 31, 2015

  	
   

  	
  686,865

  	
   

  	
  $

  	
  0.3950

  	
   

  	
  $

  	
  271,312

  	
   

  	
  $

  	
  —

  	
   

  	
  $

  	
  271,312

  	
   

  	
  $

  	
  0.3950

  	
   

  

 

* = Rent Credit Summary

 

	
  Period

  	
   

  	
  Square

  Footage

  	
   

  	
  New

  Rent

  	
   

  	
  Current

  Rent

  WSL2

  	
   

  	
  Rent

  Credit

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  February 1,
  2009 to May 31, 2009

  	
   

  	
  207,900

  	
   

  	
  $

  	
  68,607

  	
   

  	
  $

  	
  56,133

  	
   

  	
  $

  	
  12,474

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 1,
  2009 to August 31, 2009

  	
   

  	
  207,900

  	
   

  	
  $

  	
  68,607

  	
   

  	
  $

  	
  56,133

  	
   

  	
  $

  	
  12,474

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  September 1,
  2009 to May 31, 2010

  	
   

  	
  207,900

  	
   

  	
  $

  	
  70,707

  	
   

  	
  $

  	
  56,133

  	
   

  	
  $

  	
  14,574

  	
   

  

 

6

 

(b)           All
rent and additional rent payable under this Lease shall be paid at the office
of Landlord stated herein, or at such other place as Landlord may hereafter
designate by notice to Tenant, except as otherwise provided in the Lease
without any offset or deduction whatsoever. 
Should any rental payment by Tenant to Landlord hereunder not be made
within ten (10) days after the date when due, Tenant shall pay Landlord a
one-time late payment charge equal to ten percent (10%) of the unpaid payment
of any rent.  This late payment charge
shall be deemed additional rent and at Landlord’s election shall be added to
the rent for the month in which the rent shall be due, and Landlord shall have
all rights with respect to additional rent as for non-payment of any and all
other rents due under the terms of this Lease. 
The demand for and collection of the aforesaid late payment charge shall
in no way be deemed a waiver of any and all other remedies that Landlord may
have under the Lease by way of summary proceeding or otherwise in the event of
a default in payment of rent.

 

 

3.2 NO
SET-OFF:  The Base Rent shall be paid to
Landlord without notice, demand, abatement, deduction or set-off, and as additional
rent, all other payments that Tenant in any of the provisions of this Lease
assumes and agrees to pay and/or deposit (which, together with the Base Rent
are hereinafter referred to as “Rental”) and, in the event of any non-payment
or non-deposit thereof, Landlord shall have (in addition to all other rights
and remedies) all the rights and remedies provided for herein or by law in the
case of non-payment of any Rental.

 

3.3 PAYMENT
OF TAXES:  Beginning on and after the
Commencement Date, Tenant shall pay when due its “Pro Rata Share” (as
determined under Section 5.6(b)(iii) below) of all real or personal
property taxes, license fees and assessments levied or imposed against, or
measured by, the land and improvements of which the Leased Premises are a part
or measured by the rent payable hereunder during the term of the Lease or any
extension thereof, by state, municipal or other governmental authority (but
excluding Federal, state or municipal income or corporate franchise taxes) or
by private body pursuant to applicable covenants, conditions and restrictions
that relate to the terms of this Lease (“CCR’s”), regardless of whether payment
of such tax is due during the Term of the Lease or may be postponed until a
time after the lease Term (herein “Taxes”). 
Payment of such Taxes relating to a particular taxable year, prorated in
the event that the Taxes are payable for a partial lease year, shall be paid at
the time and in the manner as provided in Section 5.6 as part of the “CAM’s”.  If Tenant fails to pay when due any of such
Taxes as set forth herein, Landlord may pay the same under the provisions
of Article 13, set forth below. 
Tenant’s obligations to pay Taxes hereunder, with respect to the period
covered by the Lease, shall survive the Expiration Date.

 

3.4 SECURITY DEPOSIT:  Tenant shall not be obligated to pay to
Landlord any security deposit; provided that
nothing herein should be construed as limiting Tenant’s obligations under
the Lease.

 

7

 

ARTICLE 4

INSURANCE

 

4.1 BUILDING INSURANCE:  Landlord shall cause to be issued, and Tenant
shall pay when due as part of the CAM’s, commencing on and after the Commencement
Date and thereafter during the Term, its Pro Rata Share (as determined under Section 5.6(b)(iii) below)
of the cost of, property and lost rents insurance for the Building insuring
against the perils of fire and extended coverage property insurance, vandalism,
terrorism and malicious mischief, and all risks to the Building improvements
constituting the Leased Premises (subject to customary insurance policy
exclusions) in an amount substantially equal to one hundred (100%) percent of
its full replacement cost (including demolition and debris removal costs and
compliance costs at the time of construction) without regard to depreciation
(herein, the “Building Insurance”), or such other coverage (including, without
limitation, lost rents and earthquake coverage) as Landlord in its discretion
may reasonably determine.

 

4.2 LIABILITY AND OTHER INSURANCE:

 

(a) Tenant shall at all
times during the Term, at Tenant’s sole cost and expense, with Landlord named
as an additional insured, maintain with a financially responsible insurance
company, commercial general liability insurance, including without limitation
contractual and fire-legal liability, to afford protection on an “occurrence
basis” against claims for personal injury (including without limitation bodily
injury or death) or property damage, occurring on, in or about the Leased
Premises, the Property or any adjoining properties, with coverage limits of at
least the following amounts (which amounts may be increased from time to time,
upon prior written notice to Tenant, as Landlord in its reasonable discretion
may determine based on commercially reasonable practices in the national
industrial markets in general):

 

Bodily Injury,
$2,000,000.00 each occurrence; Property Damage, $2,000.000.00; or in lieu thereof,
a combined limit of bodily injury and property damage liability of not less
than $2,000,000.00 per occurrence.

 

(b)           Tenant shall also maintain such
insurance covering Tenant’s property as Tenant shall reasonably determine,
certificates of which upon reasonable request of Landlord shall be furnished to
Landlord.

 

(c)           Tenant
shall also maintain worker’s compensation and disability benefits insurance
covering Tenant’s employees at the Leased Premises, and such other and
additional insurance, and in such amounts, as may from time to time reasonably
be required by law, against such other hazards as are commonly insured against
in the case of similarly situated premises or with respect to persons engaged
in the business similar to Tenant’s business conducted from the Leased
Premises.

 

(d)           Each
policy of insurance required to be obtained by Tenant as herein provided and
each certificate therefore issued by the insurer shall provide that: (i) no
act or omission of Tenant shall affect or limit the obligation of the insurance
company to pay to Landlord the amount of any loss sustained, and (ii) such
policy (or if such policy is an umbrella or blanket policy, such policy as it
relates to the Leased Premises) shall not be canceled without 

 

8

 

at least
thirty (30) days’ prior written notice to Landlord.  All general liability policies shall name
Landlord and, if requested by Landlord, any mortgagee of the Property, as an
additional insured, as their interests may appear.

 

(e)           Tenant
acknowledges that Landlord will not carry insurance on Tenant’s inventory,
furniture or furnishings or any fixtures, improvements or equipment installed
by Tenant, or appurtenances removable by Tenant.

 

4.3 SUBROGATION:  Landlord shall not be liable to Tenant or
anyone claiming by, through or under Tenant, including an insurance carrier or
carriers, for any insurable loss or damage, and no such carriers shall have the
right to subrogate against Landlord.

 

ARTICLE 5

CONDITION AND MAINTENANCE OF THE
PROPERTY

 

5.1 CONDITION OF THE PREMISES:  (a) Landlord agrees that the Leased
Premises shall be, at the Commencement Date, subject to normal “punch list”
items requiring correction, which Landlord will be obligated to correct, and
upon completion of the office and other improvements shall contain all of the
elements of Landlord Improvements as are set forth on Exhibit B hereto; (b) the
Leased Premises shall, at the Commencement Date, be in all material respects in
compliance with the Hazardous Materials Laws (as defined in Section 6.3(b))
and applicable provisions of the Americans with Disabilities Act; (c) Landlord
shall be responsible for replacement of the roof as and when needed and the
structure portions of the Leased Premises; (d) Landlord herby represents
and warrants that the building and all improvements comprising the Leased
Premises and all mechanical systems, including without limitation heating,
ventilation and air conditioning systems (“HVAC”) and water sprinkling systems,
shall be in good working condition for the first twenty four (24) months of the
Term of this Lease; and (e) Landlord shall enforce, for the benefit of
Landlord and Tenant, any service or product warranty provided to Landlord with
respect to the Leased Premises by any third party workman or vendor, in cases
where such warranty periods extend beyond 24 months from the Commencement Date
of this Lease.

 

9

 

5.2 MAINTENANCE OF LEASED PREMISES BY
TENANT:  Except as specifically provided
in Section 5.3 hereof, Tenant agrees to maintain and to take care of that
portion of the Leased Premises to which the
Tenant has exclusive possession and to keep the same in a clean, attractive and
sanitary condition, all at the sole cost and expense of Tenant, including
without limitation the sweeping of truck dock areas used by Tenant.  Tenant shall not commit or suffer, and shall
use all reasonable precaution to prevent, waste, damage or injury to the Leased
Premises and shall perform all necessary, reasonably or customary operation,
maintenance, replacement and repairs of any kind on or with respect to the
Leased Premises, including without limitation, exterior entrances, doors,
walls, ceilings, glass, windows, moldings, to the extent the same are not part
of the structural portions or the roof of the Building, and the servicing of
and general repairs (beyond the warranty period) to the electrical wiring,
plumbing and HVAC systems (including spring and fall servicing, and replacement
of filters as recommended by the manufacturers) and the truck dock leveler
systems.  Further, Tenant agrees to pay
when due all charges for water, heat, gas, electricity and other public
utilities used on the Leased Premises including the replacement of light bulbs,
tubes, ballasts and other starters within a reasonable time after they fail to
operate properly.

 

5.3 REPAIR AND MAINTENANCE OF PROPERTY BY
LANDLORD:  Landlord shall be responsible for, and keep in good order, repair and condition,
at Landlord’s expense, the roof and structural portions of the Building.  There shall be no allowance to Tenant for
diminution of rental value and no liability on the part of Landlord by reason
of inconvenience, annoyance or injury to business or person arising from
Landlord or others making repairs, alterations, additions or improvements in or
to any portion of the Building or the Leased Premises or in and to the
fixtures, appurtenances or equipment thereof, to the extent these do not
interfere materially and significantly with Tenant’s use and enjoyment of the
Premises, and provided, however, that Landlord shall provide Tenant with thirty
(30) days advance notice in writing (where practicable) of any such work.  It is specifically agreed that Tenant shall
not be entitled to any set off or reduction of rent by reason of any failure of
Landlord to comply with the covenants of this or any other article of this
Lease, except as specifically provided herein.  The provisions of this Article 5 shall
not apply in the case of fire or other casualty, which are dealt with in Article 9
hereof.  Anything herein contained to the contrary notwithstanding, in no event shall
Landlord be liable to Tenant for damages in connection with the undertakings of
Landlord pursuant to this Section 5.3 except in the case of Landlord’s
gross negligence or willful misconduct; however, Tenant shall have the option
to terminate this contract upon thirty (30) days advance written notice.

 

5.4 ERECTION AND REMOVAL OF SIGNS:  Tenant shall have the right, at its expense, subject to all applicable municipal ordinances and
regulations and CCR’s, to affix or display on the Building such signs
identifying the Tenant and/or its business as Tenant may consider necessary or
desirable, and as may be reasonably approved by Landlord, consistent with the
CCR’s and other signs within the Park. 
All of Tenant’s signs shall be removed by Tenant at or prior to the
expiration or termination of this Lease.

 

5.5 IMPROVEMENTS
BY TENANT:  The Parties anticipate that
Tenant will construct significant improvements in the form of an office in the
south end of the Leased Premises and 

 

10

 

that the Parties will
reasonably cooperate in the construction of those improvements both in planning
and executing the improvements.  At this
time the Parties anticipate they will enter into an addendum to this Lease
specifying the manner and costs of the improvements as well as other material
terms associated therewith. Tenant may, with the prior written consent of
Landlord, whose consent shall not be unreasonably withheld or delayed, but in
any event at Tenant’s sole cost and expense, make alterations and improvements
to the Leased Premises, in a good and workmanlike manner, for Tenant’s
reasonable use of the Leased Premises. 
The Parties agree to cooperate in the planning and construction phases
of any improvements to achieve a cost-efficient construction of these
improvements and in good faith to discuss and settle the mutually agreeable
means of financing these improvements, taking into account all associated
circumstances.   Any alternations or
improvements to the Leased Premises, including partitions, all electrical
fixtures, lights and wiring, and other fixtures, equipment and improvements
installed by Tenant, shall become the property of the Landlord at the
expiration of the Term or sooner termination of the Lease, unless (a) such
alterations or improvements may reasonably be removed by Tenant without damage
to the Leased Premises, or (b) upon removal, Tenant repairs any and all
damage to the Leased Premises caused by such removal.  Any alterations or improvements made by
Tenant shall be done in a good and workmanlike manner in accordance with design
plans prepared by or under the direction of Tenant that were first submitted to
Landlord for its reasonable approval. 
Tenant shall be solely responsible for providing that all such
alterations and improvements comply in all respects with all applicable
Federal, state and local statutes, including without limitation, adequate
insurance, mechanics’ lien waivers, architect and engineer certifications, as
Landlord may reasonably request.  Tenant
shall also provide to a representative of Landlord, who may be a construction
manager, architect or otherwise, reasonable access to, and information
concerning, the construction of Tenant Improvements, for which Tenant shall
also provide upon request a reasonable reimbursement to Landlord for the time
involved.

 

5.6 ADDITIONAL RENT:  Tenant agrees to pay or reimburse Landlord,
as additional rental, for Tenant’s Pro Rata Share of all Operating Costs paid
or incurred by Landlord for Applicable Maintenance and Repairs, and for
Building Insurance and Taxes attributable to the Building and the Premises (all
such items of expense, together, referred to herein as the “CAMs”), all in
accordance with the provisions of this Section 5.6.

 

Landlord shall estimate each year the estimated
CAM’s (including Taxes and Building Insurance) and charge Tenant monthly
one-twelfth of such estimated CAM’s, and shortly after the end of the calendar
year in question, Landlord shall furnish to Tenant an itemized statement (“Landlord’s
CAM statement”) in reasonable detail of the CAM’s for the immediately preceding
year and thereupon there shall be an adjustment between Landlord and Tenant,
with payment to or repayment by Landlord, as the case may be, and Tenant’s CAM
contribution for the next ensuing year shall be adjusted upward or downward
based upon Landlord’s CAM Statement. 
Within ninety (90) days of Tenant’s receipt of a Landlord’s CAM
Statement, Tenant may question or contest any aspect of the Statement by
providing written notice to Landlord specifying in reasonable detail the basis
for such question or contest.  In such
case, Landlord shall provide such additional back-up to Landlord’s CAM
Statement as may be reasonably necessary to provide proof of the payment in
question.  In the case of any overpayment
or 

 

11

 

underpayment discovered as a
result of such inquiry, adjustment shall be made between Landlord and Tenant.

 

(a)   Definitions.

 

(i)            The term “Applicable Maintenance and
Repairs” shall mean all necessary, reasonable or customary operation,
maintenance, replacement or repair costs or expenses of any kind on or with
respect to the (A) exterior entrances, doors, walls, ceilings, glass,
windows, moldings, to the extent the same are not part of the structural
portions or the roof of the Building, common areas including without limitation
sidewalks, driveways, parking lots, landscaping, fences, and water, sewer and
gas connections, pipes, mains, and all other fixtures, machinery and equipment
and the servicing of and general repairs to the electrical wiring and plumbing
and HVAC systems (including spring and fall servicing, and replacement of
filters as recommended by the manufacturers); (B) the mowing of grass,
care of shrubs, general landscaping, snow removal, sweeping of parking lot and
truck dock areas, and the cleaning and painting of the exterior of the Building
as the same may or might be necessary or appropriate in order to maintain the
Property in a clean, attractive and sanitary condition; (C) the cost of
periodic maintenance and restoration of Building surfaces, including floors and
walls, and other surfaces both on the interior and exterior of the Building and
in exterior areas of the Property, as well as re-paving and re-striping of the
parking areas; and (D) compliance with applicable building codes or other
laws, statutes, ordinances, rules, code, regulations, orders, or
interpretations of all federal, state and county laws by municipal governments,
departments, commissions, boards and officers, or all orders, rules and
regulations of the National Board of Fire Underwriters or any other body
exercising similar functions, and other governmental or quasi-governmental
authorities having jurisdiction over the Building or Property, including,
without limitation, the Americans With Disabilities Act of 1990, present and
future safety, health and all environmental laws, ordinances and regulations
(together, the “Laws”) that are applicable to the Building, the Leased Premises
or the Property as a result of changes to such Laws, or their interpretation
thereof, after the Commencement Date (herein “Changes in Laws”), or the
maintenance of appropriate safety measures of the Building (including, for
example, a shared private security patrol for the exterior parking lots, roads
and other common areas).  To the extent
that any part of the Property or Building is or becomes irreparable or worn out
or exhausted by ordinary use, including without limitation the HVAC, the water
sprinkling system or the electrical or plumbing systems, Applicable Maintenance
and Repairs shall include the repair, replacement or improvement of such items,
as the case may be.  When used in this Article 5,
the term “repairs” shall include all necessary replacements, renewals, alterations
and additions.  All repairs made shall be
equal in quality and class to the original work and shall be made in compliance
with all applicable legal requirements and under the building code then in
effect.

 

(ii)           The term “Operating Costs” shall mean
the sum of all expenses and costs paid or incurred by Landlord in performing
and accomplishing the Applicable Maintenance and Repairs, including all costs
and expenses for labor, materials and other costs or expenses for such
Applicable Maintenance and Repairs, plus an administrative fee payable to
Landlord of 5% of the amount of the total CAM’s for such year.  By way of example, Operating Costs shall
include without limitation:  the cost of
all building and cleaning supplies and materials; the cost of all charges for
cleaning, maintenance, and service contracts and other services, the cost of
all 

 

12

 

accounting,
bookkeeping and other professional services, the reasonable costs of a real
estate management company (including one owned or controlled by Landlord) hired
or retained for the purpose of performing, overseeing or managing any or all
Applicable Maintenance and Repairs, and the cost of any replacement equipment,
as the same may relate to repairs and maintenance of the Leased Premises.

 

(iii)          The term “Pro Rata Share” shall mean
the percentage set forth in Exhibit D hereof.

 

(iv)          To the extent they do not interfere
materially and significantly with Tenant’s use of the Leased Premises, there
shall be no allowance to Tenant for diminution of rental value and no liability
on the part of Landlord by reason of inconvenience, annoyance or injury to
business or person arising from Landlord or others making repairs, alterations,
additions or improvements in or to any portion of the Building or the Leased
Premises or in and to the fixtures, appurtenances or equipment thereof.  It is specifically agreed that Tenant shall
not be entitled to any set off or reduction of rent by reason of any failure of
Landlord to comply with the covenants of this or any other article of this
Lease, except as specifically provided herein. 
The provisions of this Article 5 shall not apply in the case of
fire or other casualty, which are dealt with in Article 9 hereof.  Anything herein contained to the contrary
notwithstanding, in no event shall Landlord be liable to Tenant for damages in
connection with the undertaking of Landlord pursuant to this Section 5.6
except in the case of Landlord’s gross negligence or willful misconduct.

 

ARTICLE 6

AUTHORIZED USE; COMPLIANCE WITH LAWS

 

6.1 Tenant may use the Leased Premises for
the conduct of its product storage and distribution business, all lawful
activities associated therewith; provided that Tenant shall not (i) store
or do anything on or in the Leased Premises that would cause the existing fire
protection system to be deemed or declared inadequate or illegal under any
existing law or under existing and customary insurance rating guidelines or
policies, unless Tenant upgrades, at Tenant’s expense, the system to comply
with such laws or guidelines; (ii) do, bring or keep anything in or about
the Leased Premises that will cause a cancellation of any insurance policies
covering the Leased Premises, (iii) use the Leased Premises in any manner
that will constitute waste, nuisance or cause unreasonable annoyance to owners
or occupants of neighboring properties, or (iv) create or permit to be
created any lien, encumbrance or charge upon the Building or Property or any
part thereof or the income therefrom, or any assets of Landlord, or suffer any
other matter or thing whereby the estate, rights and interest of Landlord in
the Property or any part thereof, or any assets of Landlord, might be impaired,
or (v) do anything on the Leased Premises or the Property that will cause
damage to the Leased Premises or the Property or any part thereof, ordinary
wear and tear excepted.  The Leased
Premises shall not be used for any dangerous, noxious or offensive trade or
business, and Tenant will at all times use and operate the Leased Premises in
such a manner as to minimize the risk of indoor air quality problems or any diagnosable
illness that can be identified and attributed to contaminants in the Leased
Premises attributable to Tenant.

 

13

 

6.2 COMPLIANCE WITH LAWS:

 

(a) Throughout the term of
this Lease, Tenant, at its sole cost and expense, shall promptly comply with
all present and future safety, health, environmental, or other laws,
ordinances, orders, rules, regulations and requirements of all federal, state,
county and municipal governments, departments, commissions, boards and
officers, and all orders, rules and regulations of the National Board of
Fire Underwriters or any other body exercising similar functions (together, the
“Laws”) applicable to Tenant’s use of the Leased Premises.

 

(b) Tenant shall be
responsible for obtaining all permits, licenses and approvals of all
governmental authorities and public utilities that are necessary for the
operation of its business at the Leased Premises, provided that Landlord shall
provide its reasonable cooperation in securing any such permits, license and
approvals.

 

(c) Tenant shall not at
any time use or occupy the Leased Premises in violation of the certificate of
occupancy issued for the Building or the CCR’s.

 

(d) No abatement or
reduction of the Rental or other charges required to be paid by Tenant pursuant
to the terms of this Lease shall be claimed by or allowed to the Tenant for any
inconvenience, interruption or loss of business caused directly by any such
present or future Laws.

 

6.3 ENVIRONMENTAL MATTERS:

 

(a) Tenant shall not allow the use,
generation, handling, storage, transportation, treatment or disposal of “Hazardous
Materials” (as defined in Paragraph (b) of this Section 6.3) at or in
the Leased Premises or allow Hazardous Materials to be released or discharged
upon or from the Leased Premises or to be located at the Leased Premises
without the prior written consent of Landlord; provided that Tenant shall be
allowed to use, store, handle or otherwise use any household cleaning materials
or any other Hazardous Materials, including batteries, diesel generators and
fuel tanks, if used in the ordinary course of Tenant’s operations at or in the
Leased Premises in compliance with all applicable laws and regulations
regarding the use of same and not disruptive to, or creating of, an unhealthy
or noxious environment to any of Tenant’s employees, guests, invitees or other
tenants of Landlord.

 

(b) Tenant shall not cause or permit the
Leased Premises to be in violation of any Federal, State or local laws,
regulations, guidelines, codes, permits, rules, administrative and judicial
orders and ordinances relating to industrial hygiene, indoor air quality laws,
regulations and industry standards or to the environmental conditions on, under
or about the Leased Premises or the Property including, but not limited to,
soil and ground water conditions; provided, however, that Tenant shall not be
obligated to Landlord for any Hazardous Material Claims attributable to any
pre-existing conditions of the Leased Premises or the Property as of the
Commencement Date, as to which Landlord shall indemnify and hold Tenant
harmless, or to any condition caused by anyone other than Tenant, its
employees, agents, guests, invitees, licensees, contractors and any other
persons occupying or present on or in the Leased Premises (“Tenant Agents”).  Tenant agrees at all times to comply fully
and in a timely manner with, and to cause all Tenant’s Agents and any other
persons occupying or present on the Leased Premises 

 

14

 

to comply with, all such laws
and all applicable Federal, State and local laws, regulations, guidelines,
codes, permits, rules, executive, administrative and judicial orders and
ordinances and all provisions and requirements of any casualty, liability or
other insurance policy required to be carried by Tenant under the provisions of
this Lease (collectively, “Hazardous Materials Laws”) applicable to the use,
generation, manufacture, handling, storage, treatment, transport and disposal
of any flammable materials, explosives, radioactive materials, hazardous
wastes, toxic substances or similar materials, including, without limitation,
any substances now or hereafter defined as or included in the definition of “hazardous
substance,” “hazardous waste,” “hazardous material,” “pollutant or contaminant,”
or “toxic substance” under any applicable Federal, State or local laws or
regulations (including but not limited to

§ 101(14) of the Comprehensive Environmental Response, Compensation and
Liability Act (CERCLA), 42 U.S.C. § 9601(14); 101(33) of CERCLA, 42 U.S.C. §
9601(33); § 104(5) of the Resource Conservation and Recovery Act, 42
U.S.C. 6903(5)), (collectively, “Hazardous Materials”).

 

(c) Tenant shall immediately advise
Landlord in writing of (i) any and all enforcement, cleanup, removal or
other governmental or regulatory actions, of which Tenant is aware or has
received notice, instituted, contemplated or threatened against the Leased
Premises pursuant to any applicable Hazardous Materials Laws; (ii) all
claims made or threatened in writing by any third party against Tenant or the
Leased Premises relating to damage, contribution, cost recovery, compensation,
loss or injury resulting from any Hazardous Materials/ (the matters set forth
in clauses (i) and (ii) above are hereinafter referred to as “Hazardous
Materials Claims”); and (iii) Tenant’s discovery of any occurrence or
conditions on the Leased Premises, the Property or any real property adjoining
or in the vicinity of the Property that could cause the Property or any part
thereof to be subject to any restrictions on the ownership, occupancy,
transferability or use of the Property or any part thereof under any Hazardous
Materials laws.

 

(d) Landlord shall have the right to
join and participate in, as a party if it so elects, any legal proceedings or
actions imitated in connection with any Hazardous Materials Claims caused by
Tenant or Tenant’s Agents, and to have its reasonable attorneys’ fees and
disbursements in connection therewith paid by Tenant.  Tenant shall be solely responsible for, and
shall indemnify and hold harmless Landlord, its directors, officers, employees,
agents, successors and assigns from and against, any loss, damage, cost,
expense and liability directly or indirectly arising out of or attributable to
the use, generation, handling, storage, transportation, release, threatened
release, discharge, disposal, or presence of Hazardous Materials on, under or
about the Leased Premises or the Property, that is caused by Tenant or Tenant’s
Agents; provided, however, that Tenant shall not be obligated to Landlord for
any Hazardous Materials Claims (or the payment of attorneys’ fees or
disbursements) attributable to any pre-existing conditions of the Leased
Premises or the Property as of the Commencement Date, for which Landlord shall
indemnify and hold harmless Tenant, its directors, officers, employees, agents,
successors and assign.  The indemnities
hereunder shall include, without limitation, the costs of any required or
necessary repair, cleanup or detoxification, and the preparation and
implementation of any closure, remedial or other required plans (including
without limitation, the costs arising from the imposition of any lien,
governmental or otherwise, for the recovery of environmental cleanup costs
expended in connection with any such Hazardous Materials Claims) and all costs
and expenses incurred by Landlord in connection therewith, including but not 

 

15

 

limited to reasonable attorneys’
fees and disbursements.  The foregoing
indemnity shall apply regardless of whether the generation, use, handling,
storage, transport, release, disposal, discharge of presence of any such
Hazardous Materials was or will be undertaken in accordance with applicable
laws, regulations, codes, or ordinances. 
The provisions of this Section 6.3 shall survive the expiration or
termination of this Lease.

 

ARTICLE 7

RIGHT OF ENTRY BY LANDLORD

 

Upon reasonable prior written
requests of Landlord from time to time, Tenant shall permit reasonable
inspections of, or access to, the Leased Premises by Landlord or Landlord’s
agents or representatives for the purposes of (a) ascertaining the
condition of the Leased Premises, (b) making such repairs or maintenance
as may be required or permitted to be made by Landlord under the terms of this
Lease, (c) making any repairs and performing any work therein that may be
necessary by reason of Tenant’s failure to make any repairs or perform any work
required to be made or performed by Tenant under this Lease, or (d) exhibiting
the Leased Premises to prospective lenders, purchasers or tenants.

 

ARTICLE 8

ASSIGNMENT AND SUBLETTING

 

LANDLORD’S
CONSENT.

 

8.1 Tenant shall not transfer, assign, sublet, enter into a license,
concession agreement or mortgage or hypothecate (“transfer”) this Lease or
Tenant’s interest in the Premises, in whole or in part, without first procuring
the written consent of Landlord.  The
foregoing prohibitions on transfer or assignment shall not apply if such
transfer or assignment is made in connection with a transaction in which the
Tenant is purchased or substantially all of Tenant’s assets are purchased and
the transfer is made to the purchaser or successor in interest of the Tenant.
The written notice to Landlord shall describe the area Tenant desires to
transfer, assign or sublet, the rent thereon, the consideration Tenant is to  receive, the name and business address of the
proposed transferee, assignee or sublessee, and a current financial statement
of the same.  Without in any way limiting
Landlord’s right to refuse consent to a transfer or  assignment, Landlord specifically reserves
the right to refuse consent if, in Landlord’s reasonable business judgment, the
credit worthiness of the proposed transferee or assignee is less than that of
Tenant. Landlord shall accept sublessees proposed, unless in the exercise of
reasonable business judgment the Landlord believes that the sublessee, is not
an acceptable tenant. In no event shall Landlord be obligated to give consent
for any such transfer if Tenant is in default under any of the terms or
conditions of this Lease.  If  Tenant violates  this Section 8.1, any attempted
transfer, assignment or sublet shall be void and confer no rights upon any
third party and Landlord shall have the right to declare said transfer as an
Event of Default under Article 9 hereof.

 

16

 

8.2  INCREASED RENT UPON SUBLETTING

 

If pursuant to Section 8.1, Landlord
agrees to a subletting of all or part of the Premises, and the rental payable
by the subtenant to Tenant is increased over the amount of rent paid by Tenant
to Landlord hereunder, then Landlord may also require Tenant to pay an amount
up to eighty percent (80%) of such increased rental to Landlord.  Such increased rent shall be payable on the
tenth day of each month after the subletting is approved by Landlord without
statement or demand.

 

ARTICLE 9

DAMAGE OR DESTRUCTION

 

9.1 FIRE OR OTHER CASUALTY:

 

(a) If the Leased Premises or any part
thereof shall be damaged by fire or other casualty, Tenant shall give immediate
notice thereof to Landlord, as provided in Section 14.8 hereof, and this
Lease shall continue in full force and effect except as hereinafter set forth.

 

(b) If the Leased Premises are partially
damaged or rendered partially  unusable
by fire or other casualty, the damages thereto shall be repaired by and at the
expense of Landlord, and the Rentals, until such repairs shall be substantially
completed, shall be apportioned from the day following the casualty according
to the part of the Leased Premises that is still usable; provided that if
insurance proceeds available for repair are not sufficient to so repair such
damage, Landlord at its discretion may elect to not make such repairs and shall
provide Tenant notice thereof as set forth in Section 9.1(d) hereof.

 

(c) If the Leased Premises are totally
damaged or rendered wholly unusable by fire or other casualty, then the rent
shall be proportionately paid up to the time of the casualty and thenceforth
shall cease until the date when the Leased Premises shall have been repaired
and restored by Landlord, subject to Landlord’s right to elect not to restore
the same and hereinafter provided.

 

(d) If the Leased Premises are rendered
wholly unusable or (whether or not the Leased Premises are damaged in whole or
in part) or if the Building shall be partially damaged and sufficient insurance
proceeds are not available to pay for the repair of such partial damage, then,
in any of such events, Landlord may elect to terminate this Lease by written
notice to Tenant, given within 45 days after such fire or casualty, specifying
a date for the expiration of the Lease, which date shall not be less than 30
days after the giving of such notice, and upon the date specified in such
notice the term of this Lease shall expire as fully and completely as if such
date were the date set forth above for the termination of this Lease and Tenant
shall forthwith quit, surrender and vacate the Leased Premises without
prejudice however, to Landlord’s rights and remedies against Tenant under the
provisions of the Lease in effect prior to such termination, and any Rental
owing shall be paid up to the date of such fire or casualty and any payments of
Rental made by Tenant which were on account of any period subsequent to such
date shall be returned to Tenant.  If
Landlord does not serve a termination notice as provided for herein, and
provided the repairs can reasonably be made within ninety (90) days and
provided Landlord commits to Tenant to make such repairs within said 90 days of
damage, Landlord shall make the 

 

17

 

repairs and restorations under
the conditions of (b) and (c) hereof, with all reasonable expedition,
subject to delays due to adjustment of insurance claims, labor troubles and
causes beyond Landlord’s control. However, if for any reason, Tenant is not
able to obtain commercially reasonable, temporary premises within a 30-mile
radius of the Leased premises, and is reasonably forced to enter into a longer
term lease with party other than Landlord, then Tenant may terminate the Lease
upon written notice, notwithstanding Landlord’s ability to make repairs within
ninety (90) days of the damage.  If
Landlord cannot reasonably accomplish such repairs within said 90 days, or does
not commit to so accomplish such repairs within 90 days, or if the insurance
proceeds are not adequate to make the necessary repairs and restorations and
Landlord does not otherwise commit to make such repairs and restorations, or if
the repairs are not substantially completed within such 90-day period (subject
to Section 14.5 below), then Tenant may terminate this Lease immediately
upon providing written notice to Landlord. 
After any such casualty, Tenant shall cooperate with any restoration by
removing from the Leased Premises as promptly as reasonably possible, all of
Tenant’s salvageable inventory and movable equipment, furniture, and other
property.  Tenant’s liability for Rental
shall resume thirty (30) days after written notice from Landlord that the
Leased Premises are substantially ready for Tenant’s occupancy.

 

9.2 NO LIABILITY:  Tenant acknowledges that Landlord will not
carry insurance on Tenant’s inventory, furniture and/or furnishings or any
fixtures or equipment, improvements, or appurtenances removable by Tenant.

 

ARTICLE 10

INJURIES AND PROPERTY DAMAGE

 

10.1 INDEMNIFICATION:

 

(a) Tenant shall not do or permit any
act or thing to be done upon the Leased Premises or any other part of the
Property that may subject Landlord to any liability or responsibility for
injury, damages to persons or property or to any liability by reason of any
violation of law or any other requirement of a governmental authority and shall
exercise such control over the Leased Premises as to fully protect Landlord
against any such liability.  Tenant shall
indemnify and save Landlord, its officers, employees, partners, agents,
contractors, successors, heirs and assigns, harmless from and against (a) all
claims of whatever nature by third parties arising from Tenant’s use of the
Leased Premises or any act, omission or negligence of Tenant, its contractors,
agents, employees, invitees or visitors, (b) all claims by third parties
arising from any accident, injury or damage whatsoever caused to any person or
to the property of any person and occurring during the Term in or about the
Leased Premises, and (c) any claims by any third party arising from any
breach, violation or nonperformance of any covenant, condition or agreement in
this Lease set forth and contained on the part of Tenant to be fulfilled, kept,
observed and performed.  This indemnity
and hold harmless agreement shall include indemnity from and against any and
all liability, fines, suites, demand, costs and expenses of any kind or nature
(including, without limitation, reasonable attorneys’ fees and disbursement)
incurred in or in connection with any such claim or proceeding brought by third
parties thereon, and the defense thereof, except to the extent such liability,
fines, claims or costs are occasioned  by
the gross negligence or willful acts of Landlord or its agents, in which case
Tenant’s liability to Landlord under this indemnity provision shall be reduced
only by the percentage of the loss, damage or 

 

18

 

liability resulting from or
attributable to such Landlord’s or its agent’s gross negligence.  The obligations of Tenant under this Article 10
shall not in any way be affected by the absence in any case of covering
insurance or by the failure or refusal of any insurance carrier to perform any
obligation on its part to be performed under insurance policies required to be
maintained by this Lease.  Tenant’
obligations under this Article shall survive the expiration of this Lease.

 

(b) Landlord shall not do or permit any
act or thing to be done upon the Leased Premises or any other part of the Property
that may subject Tenant to any liability or responsibility for injury, damages
to persons or property or to any liability by reason of any violation of law or
any other requirement of a governmental authority and shall exercise such
control over the Leased Premises as to fully protect Tenant against any such
liability.  Landlord shall indemnify and
save Tenant, its officers, employees, partners, agents, contractors,
successors, heirs and assigns, harmless from and against (i) all claims of
whatever nature by Tenant or any third parties arising from the gross
negligence or willful misconduct on the part of Landlord, its contractors,
agents or employees resulting from Landlord’s performance of its services
hereunder or any breach, violation or non-performance of any covenant,
condition or agreement in this Lease set forth and contained on the part of
Landlord to be fulfilled, kept, observed and performed.  This indemnity and hold harmless agreement
shall include indemnity from and against any and all liability, fines, suites,
demands, costs and expenses of any kind or nature (including, without
limitation, attorneys’ fees and disbursements) incurred in or in connection
with any such claim or proceeding brought by Tenant or third parties thereon,
and the defense thereof, except to the extent such liability, fines, claims or
costs are occasioned by the willful misconduct or negligence of Tenant or by
such third parties, in which case Landlord’s liability to Tenant or to such
third parties under this indemnity provision shall be reduced by the percentage
of the loss, damage or liability resulting from or attributable to Tenant’s or
such third parties’ willful misconduct or negligence.  Notwithstanding the foregoing, the Landlord
shall not be liable for any loss or damage to Tenant even if due to the gross
negligence or intentional misconduct of Landlord or the extent of the recovery
by Tenant under any liability insurance carried by it.  Tenant shall make reasonably diligent efforts
to recover from its insurers the full amount of any insured claim.  Landlord’s obligations under this Article shall
survive the expiration of this Lease.

 

10.2 WAIVER OF LIABILITY:  To the extent permitted by law, and except as
otherwise provided herein, Tenant releases Landlord, and Landlord’s agents
from, and waives all claims for, damage to person or property sustained by
Tenant resulting from the Building or the Leased Premises or any part of either
or any equipment or appurtenance becoming out of repair or resulting from any
accident in or about the Building or resulting directly or indirectly from any
act or omission of any other tenant or occupant of the Building, or of any
other person other than Landlord or its agents. 
This section shall apply especially, but not exclusively, to i) fire,
steam, electricity, water, gas or rain, ii) leakage, obstruction or other
defects of pipes, sprinklers, wires, plumbing, air conditioning, boilers or
lighting fixtures; or iii) condition of the Leased Premises; provided that the
provisions of this Section shall not exempt Landlord from liability in the
event of Landlord’s gross negligence or willful misconduct, for example, but
not limitation, where Landlord has actual or constructive prior notice of such
risk of damage and fails to take such reasonable actions to stop or mitigate
such damage.  This Section shall
apply equally whether 

 

19

 

such damage be caused or result
from any thing or circumstance above mentioned or referred to, or any other thing
or circumstance whether of a like nature or of a wholly different nature.

 

ARTICLE 11

SURRENDER OF PREMISES

 

11.1 SURRENDER:  Tenant agrees to surrender the Leased
Premises at the expiration, or sooner termination, of the Term of this Lease,
or any extension thereof, in the same condition as when said premises were
delivered to Tenant, except as otherwise permitted by Landlord, or as altered,
pursuant to the provisions of this Lease, ordinary wear, tear and damage by
fire, the elements or other insured casualty excepted, and Tenant shall remove
all of its furniture, equipment and other personal property and surrender the
Leased Premises in broom clean condition.

 

11.2 HOLDOVER:  If the Leases Premises be not surrendered by
Tenant as and when required, Tenant shall indemnify Landlord against any
charges, loss or liability resulting therefrom, including, without limitation,
any claims made by any succeeding occupant founded on such delay.  Should the Landlord permit Tenant to holdover
the Leased Premises or any part thereof after the expiration of the term of
this Lease, such holdover shall constitute a tenancy from month-to-month only,
and shall in no event be construed as a renewal of this Lease and all
provisions of this Lease not inconsistent with a tenancy from month-to-month
shall remain in full force and effect. 
During the month-to-month tenancy, Tenant agrees to give Landlord thirty
(30) days prior written notice of its intent to vacate premises.  Tenant agrees to vacate the Leased Premises
upon thirty (30) days prior written notice from Landlord.  The rental for the month-to-month tenancy
shall be at a rate that is thirty-five (35%) percent greater than the Base Rent
that is then being paid by Tenant, unless otherwise mutually agreed in
writing.  Tenant’s obligations under this
Section 11.2 shall survive the expiration or sooner termination of this
Lease.

 

11.3 EMINENT DOMAIN:  If at any time during the term of this Lease
the entire premises or any part thereof shall be taken as a result of the
exercise of the power of eminent domain or by an agreement in lieu thereof,
this Lease shall terminate as to the part so taken as of the date possession is
taken by the condemning authority.  If
all or any substantial portion of the Leased Premises shall be taken, Landlord
may terminate this Lease at its option, by giving Tenant written notice of such
termination within one hundred twenty (120) days of such taking.  If all or a portion of the Leased Premises
taken are so substantial that Tenant’s use of the premises is substantially
impaired, Tenant may terminate this Lease at its option by giving Landlord
written notice of such termination within one hundred twenty (120) days of such
taking.  Otherwise, this Lease shall remain
in full force and effect, except that the Base Rent payable by Tenant hereunder
shall be reduced in the proportion that the area of the Leased Premises so
taken bears to the total area of the Leased Premises immediately prior to such
taking and the Tenant’s Pro Rata Share shall be so adjusted.  Landlord shall be entitled to and Tenant
hereby assigns to Landlord, the entire amount of any award in connection with
such taking without deduction therefrom for any leasehold estate vested in
Tenant by reason of this Lease; provided, however, that nothing in this Article shall
give Landlord any interest or preclude Tenant from seeking, on its own account,
any award attributable to the taking of personal property or trade fixtures
belonging to Tenant, or for loss of its leasehold estate or the

 

20

 

interruption
of Tennant’s business and any moving expenses incurred in connection with the
relocation of its business.

 

ARTICLE 12

QUIET ENJOYMENT

 

If and so long as Tenant pays the
rent required by this Lease and performs and observes all the covenants and
provisions hereof, Tenant shall quietly enjoy the Leased Premises, subject,
however, to the terms of this Lease, and Landlord will warrant and defend
Tenant in the enjoyment and peaceful possession of the Leased Premises
throughout the term of this lease.

 

ARTICLE 13

DEFAULT AND BANKRUPTCY

 

13.1 TENANT’S DEFAULT:

 

(a) If
Tenant shall make default in the fulfillment of any of the covenants and
conditions hereof except default in payment of Rental, Landlord may, at its
option, after ten (10) days prior written notice to Tenant, make
performance for Tenant and for the purpose advance such amounts as may be
necessary.  Any reasonable amounts so
advanced, or any expense incurred, or sum of money paid by Landlord by reason
of the failure of Tenant to comply with any covenant, agreement, obligation or
provision of this Lease, or in defending any action to which Landlord may be
subjected by reason of any such failure for any reason of this Lease, shall be
deemed to be additional rent for the Leased Premises and shall be due and
payable to Landlord on demand.  The
acceptance by Landlord of any installment of fixed rent, or of any additional
rent due under this or any other paragraph of this Lease, shall not be a waiver
of any other rent then due nor of the right to demand the performance of any
other obligation of the Tenant under this Lease.  Interest shall be paid to Landlord on all
sums advanced by Landlord at a monthly interest rate of 1 /2% per month.

 

(b) If
any execution or attachment shall be issued against Tenant or any of Tenant’s
property whereupon the Leased Premises shall be taken or occupied by someone
other than Tenant; or if this Lease be rejected under applicable provisions of
the U.S. bankruptcy code, then, in any one or more of such events, upon Landlord
serving a written thirty (30) days notice upon Tenant specifying the nature of
said default and upon the expiration of said thirty (30) days, if Tenant shall
have failed to comply with or remedy such default, or if the said failure or
omission complained of shall be of a nature that the same cannot be completely
cured or remedied within said thirty (30) day period, and if Tenant shall not
have diligently commenced curing such default within such thirty (30) day
period, and shall not thereafter with reasonable diligence and in good faith,
proceed to remedy or cure such default, then Landlord may, subject to any other
requirement of law, serve a written five (5) days’ notice of cancellation
of this Lease upon Tenant, and upon the expiration of said five (5) days
this Lease and the Term thereof shall end and expire as fully and completely as
if the expiration of such five (5) day period were the day herein
definitely fixed for the end and expiration of this Lease and the Term thereof
and Tenant shall then quit and surrender the Leased Premises to Landlord but
Tenant shall remain liable as hereinafter provided.

 

21

 

(c) If
Tenant shall make default in the payment of any Rental required hereunder, or
any part thereof, or in making any other payment herein provided for, then
Landlord may serve a written ten (10) days’ notice of default of any such
payment and unless cured within five (5) days thereafter, including any
interest or penalty charges applicable thereto, may serve a subsequent written
ten (10) days notice of cancellation of this Lease upon Tenant, and unless
during such latter ten (10) day period Tenant shall cure said default in
payment upon the expiration of said latter ten (10) days, this Lease and
the Term thereof shall end and expire as fully and completely as if the
expiration of such ten (10) day period were the day herein definitely
fixed for the end and expiration of this Lease and the Term thereof, and Tenant
shall then quit and surrender the Leased Premises to Landlord but Tenant shall
remain liable as hereinafter provided.

 

(d) In
the event of any default by Tenant under this Lease, then Landlord, in addition
to any other rights or remedies it may have under this Lease, may pursue any
and all claims it may have under applicable law, including without limitation
accelerating its right to receive from Tenant all Rentals, and any other sums
due under this Lease, that are otherwise payable for the remainder of the Term
and declare all such sums to be immediately due and payable along with
reasonable attorneys’ fees and costs associated with the collection of such
sums from Tenant.  In addition, except to
the extent limited by applicable law, Landlord may take possession pursuant to
this Lease and re-let the Leased Premises or any part thereof for such term or
terms (which may be for a term extending beyond the term of this Lease) and at
such rental or rentals and upon such other terms and conditions as Landlord may
deem reasonably advisable with the right to make alterations and repairs to the
Leased Premises.

 

13.2 REMEDIES NOT INCLUSIVE:  Mention in this Lease of any particular
remedy shall not preclude Landlord from any other remedy, in law or in equity,
except as such remedy may be precluded by other terms of this Lease.

 

13.3 ENFORCEMENT:  In the event that either party hereto seeks
to enforce the terms of this Lease against the other party by suit or
otherwise, the party prevailing in the suit shall be entitled to payment from
the other party of the costs and expenses incident thereto, including
reasonable attorneys’ fees and costs.

 

13.4 BANKRUPTCY:

 

(a) Anything
elsewhere in this Lease to the contrary notwithstanding, subject to then
current bankruptcy and similarly applicable laws, this Lease may be canceled by
Landlord by the sending of a written notice to Tenant within a reasonable time
after the happening of any one or more of the following events: (i) the
commencement of a case in bankruptcy or under the laws of the state naming
Tenant as a debtor, and the failure to have such case dismissed within 30 days
after the filing thereof; or (ii) the making by Tenant of an assignment or
any other arrangement for the benefit of creditors under any state
statute.  Neither Tenant nor any person
claiming  through or under Tenant, or by
reason of any statute or order of court, shall thereafter be entitled to
possession of the Leased Premises but shall forthwith quit and surrender the
Leased Premises.

 

22

 

(b) It
is stipulated and agreed that in the event of the termination of this Lease
pursuant to (a) hereof, Landlord shall forthwith, notwithstanding any
other provisions of this Lease to the contrary, be entitled to recover from
Tenant as and for liquidated damages an amount equal to the difference between
the rent reserved hereunder for the unexpired portion of the Term and the fair
and reasonable rental value of the Leased Premises for the same period.  In the computation of such damages the
difference between any installment of Rental becoming due hereunder after the
date of termination and the fair and reasonable rental value of the Leased
Premises for the period for which such installment was payable shall be
discounted to the date of termination at the rate of four percent (4%) per
annum.  If the Leased Premises or any
part thereof be re-let by the Landlord for the unexpired portion of the Term,
or any part thereof, before presentation of proof of such liquidated damages to
any court, commission or tribunal, the amount of Rental reserved upon such
re-letting shall be deemed to be the fair and reasonable rental value for the
part or the whole of the Leased Premises so re-let during the term of the
re-letting.  Nothing herein contained
shall limit or prejudice the right of the Landlord to prove for and obtain as
liquidated damages by reason of such termination, an amount equal to the
maximum allowed by any statute or rule of law in effect at the time when,
and governing the proceeding in which, such damages are to be proved, whether
or not such amount be greater, equal to, or less than the amount of the
difference referred to above.

 

ARTICLE 14

MISCELLANEOUS

 

14.1 RIGHTS OF SUCCESSORS AND ASSIGNS:  The covenants and agreements contained in
this Lease will apply to, inure to the benefit of, and be binding upon the
parties hereto, and their assigns, and upon their respective successors in
interest except as expressly otherwise provided above.

 

14.2 ESTOPPEL
STATEMENT:  Upon Landlord’s written
request from time to time, Tenant shall, without charge, execute, acknowledge
and deliver to Landlord a written statement certifying:  (i) the commencement date of this Lease;
(ii) the expiration date of this Lease; (iii) the rental amounts
under the lease; (iv) as to the existence of any default under this Lease
of which Tenant is aware; (v) as to the existence of any offsets,
counterclaims or defenses to this Lease on the part of Tenant; (vi) as to
the date to which Rental payments have been made; and (vii) such other matters
as may be reasonably requested by Landlord, by any prospective purchaser of
Landlord or the Property or by any mortgagee or prospective mortgagee of
Landlord.

 

14.3 SUBORDINATION,
ATTORNMENT AND NON-DISTURBANCE:  This
Lease is subject and subordinate to any mortgage that may now or hereafter
encumber the Leases Premises, and any renewals, modifications, consolidations,
replacements or extensions thereof; provided, however, that as a condition to
such subordination Landlord shall, from time to time, exercise cause the holder
of such mortgage to deliver to Tenant a written agreement that it shall not
disturb the possession of Tenant so long as Tenant is not in material default
hereunder (which default must be cured by Tenant), in the form typically utilized
by such holder of the mortgage.  If
Landlord’s interest in the Leased Premises is acquired by any mortgagee, or
purchaser at a foreclosure sale, Tenant shall attorn to the transferee of or
successor to Landlord’s interest in the Leased Premises and recognize such
transferee or successor as landlord under this Lease, and so 

 

23

 

long as
Tenant is not in default under this Lease Agreement (subject to applicable
rights to cure), this Lease shall, with regard to the Leased Premises, continue
in full force and effect as a direct lease between the lender or its successors
and assigns and Tenant.  In confirmation
of such subordination, Tenant shall execute promptly any certificate or
instrument of subordination that Landlord may request.  In the event that Landlord sells the Leased
Premises to any other person or entity, Tenant upon written notice of same
shall thereafter look only to such other person or entity for enforcement of
any provisions of this Lease Agreement.

 

14.4 INFORMATION
FOR MORTGAGEE:  Upon written request from
Landlord from time to time, but subject to any applicable laws that restrict
either the content or timing of such disclosure to Landlord, Tenant shall
furnish to Landlord audited financial statements of Tenant and any guarantor of
Tenant of the Lease obligations (including a balance sheet, income statement,
statement of cash flows and accompanying notes and other documentation) for the
immediately preceding fiscal year of Tenant, and guarantor if applicable, to
which the request relates.

 

14.5 EFFECT OF
UNAVOIDABLE DELAYS:  If either party to
this Lease, as the result of any (i) strikes, lockouts or labor disputes, (ii) inability
to obtain labor or materials or reasonable substitutes therefor, (iii) acts
of God, governmental action, condemnation, civil commotion, fire or other
casualty, or (iv) other conditions similar to those enumerated in this Section beyond
the reasonable control of the party obligated to perform, fails punctually to
perform any obligation on its part to be performed under this Lease, then such
failure shall be excused and not be a breach of this Lease by the party in
question, but only to the extent occasioned by such event.

 

14.6 BROKERAGE:  Landlord and Tenant each represent
that they have not dealt with any broker in connection with this Lease, and
that no brokers are entitled to any commissions in connection therewith.  Landlord and Tenant each agree to indemnify,
defend and hold the other, and their respective employees, agents, officers and
partners, harmless from and against any claims resulting from a breach of the
foregoing representation.

 

14.7 CONSTRUCTION
OF LEASE:

 

(a) This
Lease shall be construed without regard to any presumption or other rule requiring
construction against the party causing this Lease or any party thereof to be
drafted, it being acknowledged and understood that Tenant is sophisticated and
of substantial financial means.  Each
covenant, agreement, obligation or other provision of this Lease on Tenant’s
part to be performed shall be deemed to be and construed as a separate and
independent covenant of Tenant, not dependent on any other provision of this
Lease.

 

(b) The
Article, Section and Paragraph headings of this instrument are for
convenience only, and are not intended to be part of this Lease, or to be used
in determining the intent of the parties or interpreting this Lease.  All cross-references in this Lease, unless
specifically directed to another agreement or document, refer to provisions in
this Lease, and shall not be deemed to be references to any other transaction
or to any other agreement or document.

 

24

 

(c) With
respect to the use of pronouns in this Lease, the singular shall include the
plural and the masculine shall include the feminine or the neuter and vice
versa, as the context and the identity of the parties require.

 

14.8 NOTICES:  It is agreed that all notices required or
permitted to be given hereunder, or for purposes of billing process (other than
payment of rent, which may be sent by ordinary mail or by wire transfer),
correspondence, and any other legal purposes whatsoever, shall be deemed
effective when received by a communication in writing by United States mail,
postage prepaid and certified, or by overnight delivery service that provides
acknowledgement of receipt, or by facsimile transmission that provides
acknowledgment of transmission and addressed as follows:

 

If to Landlord, at the following address:

 

Natomas Meadows, LLC

1505 South Redwood Road

Salt Lake City, Utah 84130

Attention:  Brad Ross

Keri Cannon

Fax:  801-977-9387

 

If to Tenant, at the following address:

 

Mr. Stephen Tyron

Senior Vice President

Overstock.com, Inc.

6350 South 3000 East

Salt Lake City, Utah 84121

Fax:  (801) 947-3144

 

With a copy to

General
Counsel’s Office

Overstock.com, Inc.

6350 South 3000 East

Salt Lake City, Utah 84121

Fax:  (801) 947-3144

 

14.9 SURVIVAL OF OBLIGATIONS:  Any
obligation of Tenant which can only be, or which, by the provisions of this
Lease, may be, performed after the expiration or earlier termination of this
Lease, and Tenant’s liability to make any payment that is allocable to any
period during the term of this Lease, shall, unless expressly otherwise
provided in this Lease, survive the expiration or termination of this Lease.

 

14.10 GOVERNING LAW:  The terms of this Agreement shall be governed
by and construed in accordance with Utah law without regard to its conflicts of
law principles.

 

25

 

14.11 DOCUMENTATION:  The parties hereto agree to execute such
additional documentation as may be necessary or desirable to carry out the
intent of this Agreement.

 

14.12 REPRESENTATION REGARDING
AUTHORITY:  The persons who have executed
this Lease represent and warrant that they are duly authorized to execute this
Lease in their individual or representative capacity as indicated.

 

14.13 ENTIRE AGREEMENT:  This lease constitutes the entire agreement
and understanding between the parties hereto and supersedes all prior
discussions, understandings and agreements. 
This Lease may not be altered or amended except by a subsequent written
agreement signed by the party against which enforcement of such alteration or
amendment is sought.

 

14.14 SEVERABILITY:  If any provision of this Lease or the
application thereof to any person or circumstances shall be determined to be
invalid or unenforceable, the remaining provisions of this Lease or the
application of such application to persons or circumstances other than those to
which it is held invalid or unenforceable shall not be affected thereby and
shall be valid and enforceable to the fullest extent permitted by law.

 

14.15 WAIVER: 
Except as otherwise herein expressly provided to the contrary, no delay
on the part of either party hereto in exercising any power or right hereunder
shall operate as a waiver thereof; nor shall any single or partial exercise of
any power or right hereunder preclude other or further exercise thereof or the
exercise of any other power or right.  No
waiver shall be enforceable against either party hereto unless in writing,
signed by the party against whom such waiver is claimed, and shall be limited
solely to the one event.

 

[The next page is the signature page.]

 

26

 

IN WITNESS WHEREOF, the parties
hereto have caused these presents to be executed as of the day and year first
above written.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  NATOMAS MEADOWS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kern W. Schumacher

  
	
   

  	
   

  	
      Kern
  W. Schumacher, Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  OVERSTOCK.COM,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patrick
  M. Byrne

  
	
   

  	
   

  	
  Patrick M.
  Byrne

  
	
   

  	
   

  	
  Chairman
  and CEO

  
				

 

27

 

EXHIBIT A

 

Site Plan

 

 

28

 

EXHIBIT B

 

Building Standards

 

Landmark 4 Building Spec’s

 

SITE

 

	
  Zoning

  	
   

  	
  ·  M-1

  
	
   

  	
   

  	
   

  
	
  Area

  	
   

  	
  ·  686,865 sq. ft. building size

  
	
   

  	
   

  	
  ·  35.71 acre site

  
	
   

  	
   

  	
   

  
	
  Landscaping

  	
   

  	
  ·  30 foot landscaping setbacks at street
  curbs

  
	
   

  	
   

  	
  ·  Tree lined berms as buffers along streets

  
	
   

  	
   

  	
  ·  Shrubbery and trees around entry ways and
  parking islands

  
	
   

  	
   

  	
  ·  Lawn areas with irrigation

  
	
   

  	
   

  	
   

  
	
  Curb
  Cuts

  	
   

  	
  ·  40 foot for trucks

  
	
   

  	
   

  	
  ·  25 foot for automobiles

  
	
   

  	
   

  	
   

  
	
  Utility
  Services

  	
   

  	
  ·  All underground (electric, water, sewer)

  
	
   

  	
   

  	
  ·  Fiber Optics in place adjacent to site

  
	
   

  	
   

  	
  ·  ISDN capability

  
	
   

  	
   

  	
  ·  All separately metered or monitored

  
	
   

  	
   

  	
   

  
	
  Parking

  	
   

  	
  ·  One space per 1,623 sq. ft. – Total of 423
  spaces

  
	
   

  	
   

  	
  ·  Separate design for automobile and truck
  traffic

  
	
   

  	
   

  	
  ·  6” thick concrete dolly pad aprons of 55
  feet

  
	
   

  	
   

  	
   

  
	
  Truck
  Dock Areas

  	
   

  	
  ·  Minimum depth of 120 feet including 70 foot
  concrete apron

  

 

BUILDING EXTERIOR

 

	
  Office
  Potential

  	
   

  	
  ·  Curtain walls (glass in aluminum framing),
  fully visible

  
	
   

  	
   

  	
     from
  streets

  
	
   

  	
   

  	
  ·  High-performance, tinted insulating glass
  in thermal break

  
	
   

  	
   

  	
     frames

  
	
   

  	
   

  	
  ·  Multi-level windows

  
	
   

  	
   

  	
  ·  Glazed entry doors

  
	
   

  	
   

  	
  ·  Mountain views

  
	
   

  	
   

  	
   

  
	
  Truck
  Docks

  	
   

  	
  ·  48” high docks

  
	
   

  	
   

  	
  ·  One hundred twenty-eight (128) 9ft. x 10
  ft. overhead

  
	
   

  	
   

  	
     doors,
  seventy-two (72) with dock levelers.

  
	
   

  	
   

  	
  ·  Eight (8) 12’ wide x 14’ high overhead
  doors at grade level

  
	
   

  	
   

  	
  ·  One overhead door per 5,366 square feet

  

 

29

 

	
  Overhead
  Doors

  	
   

  	
  ·  Insulated sectional high-lift overhead
  doors with vision panels

  
	
   

  	
   

  	
  ·  Manual chain lift operation with spring
  counterbalance.

  
	
   

  	
   

  	
   

  
	
  Exterior
  Walls

  	
   

  	
  ·  Reinforced concrete tilt-up

  
	
   

  	
   

  	
  ·  Painted finish with accent stripes and
  reveals

  
	
   

  	
   

  	
  ·  EIFS system around window areas

  
	
   

  	
   

  	
  ·  All parking, driveway and truck dock areas
  lighted for security and convenience

  
	
   

  	
   

  	
   

  
	
  Exterior
  Lighting

  	
   

  	
  ·  Non-glare, metal halide wall packs on all
  exterior wall surfaces

  
	
   

  	
   

  	
   

  
	
  Roofing

  	
   

  	
  ·  60 mil, single ply roof, 30 year warranty

  
	
   

  	
   

  	
   

  
	
  Insulation

  	
   

  	
  ·  R-19 roof insulation

  
	
   

  	
   

  	
  ·  Wall insulation at office walls

  
	
   

  	
   

  	
  ·  Acoustic and thermal insulation at office
  areas

  

 

WAREHOUSE/MANUFACTURING

 

	
  Floor

  	
   

  	
  ·  6” thick, reinforced, 4,000 PSI

  
	
   

  	
   

  	
  ·  Laser screed construction

  
	
   

  	
   

  	
  ·  High quality floor flatness with minimum
  (ff) 35 and floor levelness (fl)17

  
	
   

  	
   

  	
  ·  Floor joints sealed with epoxy joint filler

  
	
   

  	
   

  	
  ·  Ashford formula sealer

  
	
   

  	
   

  	
   

  
	
  Clear
  Height

  	
   

  	
  ·  31’-6” minimum throughout

  
	
   

  	
   

  	
  ·  Average clear height 33’-0”

  
	
   

  	
   

  	
   

  
	
  Bay
  Size

  	
   

  	
  ·  50 ft. x 55 ft. typical, 62 ft. x 50 ft. at
  typical end bays

  
	
   

  	
   

  	
  ·  50 ft. x 60 ft. at doc wall for staging,
  60’ x 62’ corner dock bays

  
	
   

  	
   

  	
   

  
	
  Electrical
  Service

  	
   

  	
  ·  6,000 amps, 480/277 v. 3 phase with
  additional service as required

  
	
   

  	
   

  	
  ·  Flexible distribution system

  
	
   

  	
   

  	
   

  
	
  Lighting

  	
   

  	
  ·  T5 high bay fluorescent –f.c. average to
  tenant specification

  
	
   

  	
   

  	
  ·  Modular wiring system for future
  flexibility in storage area

  
	
   

  	
   

  	
  ·  Skylights throughout (1 per bay except at
  curtain wall bays)

  
	
   

  	
   

  	
   

  
	
  Heating

  	
   

  	
  ·  Gas unit heaters at roof level

  
	
   

  	
   

  	
  ·  Average 55 F(o) at 5 F(o) db
  outside temperature

  
	
   

  	
   

  	
   

  
	
  Fire
  Protection

  	
   

  	
  ·  ESFR system throughout, with booster pump

  
	
   

  	
   

  	
  ·  Perimeter fire hydrants with looped water
  supply

  

 

30

 

EXHIBIT C

 

Tenant Improvements

 

Landlord
agrees to construct the following improvements:

 

·                  Two
(2) women’s restrooms with the following fixtures in each:

 

·                  Three (3) water closets

 

·                  Two (2) sinks

 

·                  Two
(2) men’s restrooms with the following fixtures:

 

·                  Two (2) water closets in one,
three (3) in the other

 

·                  Two (3) urinals in each

 

·                  Two (2) sinks in each

 

·                  T-5
high bay efficient lighting shall be installed to achieve 25’ candle

 

·                  Landlord
shall provide Tenant with 6,000 amps.

 

·                  Landlord
agrees to provide Tenant a $150,000.00 allowance for a  generator  for the building designed to keep continual
power supply to the facility.

 

·                  One
Hundred Twenty Eight (128) 9’ W x 10’ H dock high doors, Seventy Two (72)  doors will be equipped with 35,000 pound
hydraulic pit levelers, seals, dock lights, and rail gaurds.

 

31

 

EXHIBIT
D ~ OVERSTOCK.COM LEASE AGREEMENT

 

	
   

  	
   

  	
  Total Building Square
  Footage

  	
   

  	
  686,865

  	
   

  	
   

  	
   

  

 

	
  Year

  	
   

  	
  PERIOD

  	
   

  	
  SQUARE 

  FOOTAGE 

  LEASED

  	
   

  	
  CAM 

  PERCENTAGE

  	
   

  
	
   

  	
   

  	
  September 1,
  2008 to January 31, 2009

  	
   

  	
  232,900

  	
   

  	
  33.91

  	
  %

  
	
  1

  	
   

  	
  February 1, 2009 to May 31, 2009

  	
   

  	
  435,400

  	
   

  	
  63.39

  	
  %

  
	
   

  	
   

  	
  June 1,
  2009 to August 31, 2009

  	
   

  	
  525,400

  	
   

  	
  76.49

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  September 1, 2009 to August 31, 2010

  	
   

  	
  686,865

  	
   

  	
  100.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  September 1, 2010 to August 31, 2011

  	
   

  	
  686,865

  	
   

  	
  100.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  September 1, 2011 to August 31, 2012

  	
   

  	
  686,865

  	
   

  	
  100.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  September 1, 2012 to August 31, 2013

  	
   

  	
  686,865

  	
   

  	
  100.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  September 1, 2013 to August 31, 2014

  	
   

  	
  686,865

  	
   

  	
  100.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  September 1, 2014 to August 31, 2015

  	
   

  	
  686,865

  	
   

  	
  100.00

  	
  %

  

 

32Exhibit 10.1

 

SEPARATION, CONSULTING AND MUTUAL
RELEASE AGREEMENT

 

THIS SEPARATION,
CONSULTING AND MUTUAL RELEASE AGREEMENT (the “Agreement”) is between BioFuel
Energy Corp., a Delaware corporation, together with its subsidiaries (the “Company”)
and  Michael N. Stefanoudakis (“Executive”)
(collectively, the “Parties”).

 

I.                                         COVENANTS

 

In consideration of the
mutual promises and covenants contained herein, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, it
is hereby agreed by and between the parties, as follows:

 

A.                                   Separation.  The Parties mutually agree that Executive
will cease all of his duties as an officer and employee with the Company as of
5:00 P.M., Mountain Standard Time on April 18, 2008 (the “Effective
Date”).

 

(1)                                  As a result of this
separation, Executive shall be legally-entitled to receive:

 

(a)                                  Payment for all unpaid, accrued salary, net of applicable
taxes and withholdings, earned by Executive in connection with his employment
with the Company through the Effective Date.

 

(b)                                 Payment for any unused vacation days, net of
applicable taxes and withholdings through the Effective Date.

 

(c)                                  After the Effective
Date, Executive shall be eligible for continuation of medical and dental
insurance coverage for eighteen (18) months or such longer period as covered
under the Consolidated Omnibus Budget Reconciliation Act, as amended (“COBRA”)
or similar applicable state laws and the insurance policies and rules applicable
to the Company.  If Executive does not
elect to continue medical and dental coverage under COBRA, Executive’s current coverage elections will
end on April 30, 2008 and Executive will not be eligible to receive
insurance or any other form of insurance benefit from the Company after the Effective
Date.  Provided that Executive elects to continue medical and dental coverage
under COBRA, Executive’s current coverage elections will be continued
and paid for by the Company through a date no later than October 31, 2008
(such date to be determined under Section C below) and may be continued at
Executive’s expense thereafter until the end of Executive’s eligibility under
COBRA.

 

(2)                                  All other benefits
provided by the Company, including 401(k) plan,
life insurance, AD & D insurance, LTD insurance and any other
benefit offered by the Company, will terminate as of the Effective Date,
provided however, that Executive will remain a participant under the Company’s
2007 Equity Incentive Compensation Plan (the “Plan”) through the Consulting
Period (defined below).

 

1

 

B.                                     Consulting Agreement.

 

(1)                                  The Company agrees to engage Executive to
provide consulting services to the Company from April 19, 2008 through October 18,
2008 (the “Consulting Period”) and to pay him in connection therewith the total
sum of an amount equal to $56,250 (the “Consultancy Payment”) to be paid in six
equal installments on the last day of each month in the Consulting Period;

 

(2)                                  During the Consulting Period, Executive
agrees to make himself available, upon reasonable notice, to answer questions
as the Company may reasonably request on an as-needed basis to assist the
Company with the transition of his duties;

 

(3)                                  During the Consulting Period, the Company
agrees to permit Executive to continue the use of his Company e-mail and
voicemail accounts as well as his Company blackberry and laptop.

 

C.                                     COBRA Payment.  The
Company agrees to pay the COBRA premium for Executive through a date no later
than October 31, 2008 (the “COBRA Payment”) subject to the following:  if Executive accepts other employment prior
to October 31, 2008 which provides medical and dental benefits, then he
shall notify the Company promptly and the COBRA Payment will cease as of the
date Executive becomes covered under the new health policy.

 

D.                                    Nondisparagement.  Executive agrees not to disparage the Company
or its officers, directors, shareholders, or employees, and the Company
agrees not to disparage Executive, in any matter likely to be harmful to the
other party or their personal or business reputation. The parties further agree
that notwithstanding this non-disparagement agreement, each party shall respond
accurately and fully to any question, inquiry, or request for information
required by legal or administrative process, or, in the case of the Company, to
fulfill any standard or legally required reporting or disclosure
requirements.  Executive authorizes, and
the Company designates, Thomas
J. Edelman, Scott H. Pearce, Daniel Simon and David J. Kornder to respond to
any request concerning employment references for Executive or any background
check into Executive’s employment.

 

E.                                      Public Statements.  The Parties agree that
the language set forth on Exhibit A will be filed by the Company on
a Form 8-K to disclose Executive’s separation from the Company.

 

F.                                      Release of All Claims
by Executive.  In consideration of the promises and covenants made herein, Executive,
on behalf of Executive and Executive’s heirs, executors, administrators,
personal representatives and assigns, does hereby RELEASE, ACQUIT AND FOREVER
DISCHARGE the Company and its past, present and future affiliates, parents,
subsidiaries and successors, and each of their past, present and future
officers, directors, shareholders, employees, agents, representatives,
attorneys, insurers and their respective successors and assigns (all of whom
are hereinafter collectively referred to as “Releasees”) from any and all
actions, causes of action, claims, demands, cost and expenses, including
attorneys’ 

 

2

 

fees
and liabilities of any kind or and nature whatsoever, in law or equity, whether
known or unknown, accrued or to accrue hereafter, which Executive ever had, now
has or may hereafter have against Releasees, as of the date of this Agreement
and through the Effective Date, arising out of any act, omission, transaction
or occurrence, including, without limitation, those related to Executive’s
employment by the Company or the termination thereof, other than Executive’s rights
under the 2007 Equity Incentive Compensation Plan, and the Second Amended and
Restated Limited Liability Company Agreement, the Tax Benefit Sharing Agreement
and the Registration Right Agreement of BioFuel Energy, LLC, each dated as of June 19,
2007 (the “Excluded Agreements”). 
Without limiting the generality of the foregoing, it is understood and
agreed that this Release constitutes a release of any claim or cause of action (i) in
tort, including but not limited to claims for slander, libel, negligence, gross
negligence, negligent supervision or training, conspiracy, intentional or
negligent infliction of emotional distress, mental anguish, invasion of
privacy, assault, battery, false imprisonment, tortious interference with
contractual relations, wrongful discharge, pain and suffering, breach of covenant of good faith and fair
dealing, invasion of privacy and (ii) for breach of any employment
or other agreement existing between Executive and the Company or (iii) otherwise
related, in any way, to Executive’s employment by the Company, including claims
under Title VII of the Civil Rights Act of 1964 (and all of its amendments),
the Age Discrimination in Employment Act, the Older Workers Benefit Protection
Act, the Americans with Disabilities Act, as amended, the Fair Credit Reporting
Act, the Sarbanes-Oxley Act, the Colorado Civil Rights Act, the Colorado Wage
Act, and any other statute or regulation governing the employment relationship
or Executive’s rights, or the Company’s obligations, in connection
therewith.  This Release also includes a
release of any right to bring an administrative claim or charge against the
Company regarding any matter relating to the Company, its business operations,
or Executive’s employment to the maximum extent permitted by law.  Executive agrees that this legal release is
intended to be interpreted in the broadest possible manner in favor of the
Company, to include all actual or potential legal claims that Executive may
have against the Company, except as specifically provided otherwise in this
Agreement. Executive covenants never to institute any action or other
proceeding based in whole or part upon any right or claim released by this
Agreement and acknowledges that if he does so, the Company is entitled to
recover from Executive any attorneys’ fees it expends to defend any such action
or proceeding.  Executive hereby warrants
that he has not assigned or transferred to any person any portion of any claim
that is released, waived and discharged above.

 

G.                                     Release of Claims by
the Company. In consideration of
the promises and covenants made herein, the Company, for itself, its
affiliates, and any other person or entity that could or might act on behalf of
it including, without limitation, its attorneys (all of whom are collectively
referred to as “Company Releasers”), does hereby RELEASE, ACQUIT AND FOREVER
DISCHARGE Executive, his heirs, representatives, assigns, attorneys, and any
and all other persons or entities that are now or may become liable to any
Company Releaser on account of Executive’s employment with the Company or
separation therefrom, all of whom are collectively referred to as “Company
Releasees,” of and from any and all actions, causes of action, claims, demands,
costs and expenses, including attorneys’ fees, of every kind and nature
whatsoever, in law or in equity, whether now known or unknown, that Company
Releasers, or any person acting under any of them, may now have, or claim at
any future time to have, based 

 

3

 

in
whole or in part upon any act or omission occurring  as of the date of this Agreement and through
the Effective Date, without regard to present actual knowledge of such acts or
omissions, except with regard to the Excluded Agreements.  The Company understands and agrees that by
signing this Agreement, it is giving up its right to bring any legal claim
against Executive concerning, directly or indirectly, Executive’s employment
relationship with the Company.  The
Company agrees that this legal release is intended to be interpreted in the
broadest possible manner in favor of Executive, to include all actual or
potential legal claims that the Company may have against Executive, except as
specifically provided otherwise in this Agreement.

 

H.                                    Indemnification of
Executive.
Notwithstanding the foregoing,
the Company agrees to defend and indemnify Executive against any legal action,
arbitration, proceeding, claim or charge, action and/or proceeding against
Executive, individually and/or with others, to the same extent that Executive
would have been entitled to be defended and/or indemnified had he continued his
employment with the Company.

 

II.                                     CONFIDENTIAL
INFORMATION

 

A.                                   Protection of Trade
Secrets and Confidential Information.

 

 

(1)                                  Definition of “Confidential
Information.” “Confidential Information” means all nonpublic information
relating to or arising from the Company’s business, including, without
limitation, trade secrets used, developed or acquired by the Company in
connection with its business.  Without
limiting the generality of the foregoing, “Confidential Information” shall
specifically include all information concerning the manner and details of the
Company’s operation, organization and management; financial information and/or
documents and nonpublic policies, procedures and other printed, written or
electronic material generated or used in connection with the Company’s
business; the Company’s business plans and strategies, including but not
limited to all information associated with any ethanol project which the
Company formed an intention to develop, form or acquire prior to the end of the Consulting Period.  “Confidential
Information” does not include information that is in the public domain through
no wrongful act on the part of Executive or known to Executive prior to
employment with the Company.

 

(2)                                  Executive’s Use of
Confidential Information.  Except in
connection with and in furtherance of Executive’s work on the Company’s behalf,
Executive shall not, without the Company’s prior written consent, at any time,
directly or indirectly: (i) use any Confidential Information for any
purpose; or (ii) disclose or otherwise communicate any Confidential
Information to any person or entity; or (iii) participate in any business
opportunity that inevitably will result in the disclosure or use of any
Confidential Information.

 

(3)                                  Acknowledgments.   Executive acknowledges that during his
employment with the Company, Executive had access to Confidential Information,
all of which was made accessible to Executive only in strict confidence; that
unauthorized disclosure of Confidential Information will damage the Company’s
business; that Confidential Information would be susceptible to immediate
competitive application by a competitor of the Company’s; that the 

 

4

 

Company’s business is substantially dependent on
access to and the continuing secrecy of Confidential Information; that
Confidential Information is novel, unique to the Company and known only to
Executive, the Company and certain key employees and contractors of the
Company; that the Company shall at all times retain ownership and control of
all Confidential Information; and that the restrictions contained in this
agreement are reasonable and necessary for the protection of the Company’s
legitimate business interests.

 

(4)                                  Records Containing
Confidential Information and Return of Company Property.  “Confidential Records” means all documents
and other records, whether in paper, electronic or other form, that contain or
reflect any Confidential Information. 
All Confidential Records prepared by or provided to Executive are and
shall remain Company property.  Executive
shall not, at any time, directly or indirectly: (i) copy or use any
Confidential Record for any purpose; or (ii) show, give, sell, disclose or
otherwise communicate any Confidential Record or the contents of any
Confidential Record to any person or entity. 
Upon the termination of the Consulting Period, Executive shall immediately
deliver to the Company (and shall not keep in Executive’s possession or deliver
to any other person or entity) all Confidential Records and all other Company
property in Executive’s possession or control, including the return of the
Company’s cellphone and files in Executive’s possession but Executive shall
retain the Company laptop and related computer accessory equipment.  This Agreement shall not prohibit Executive
from complying with any subpoena or court order, provided that Executive shall
at the earliest practicable date provide a copy of the subpoena or court order
to the Company’s President, it being the parties’ intention to give the Company
a fair opportunity to take appropriate steps to prevent the unnecessary and/or
improper use or disclosure of Confidential Information and Confidential
Records, as determined by the Company in its sole discretion.

 

(5)                                  Third-Parties’
Confidential Information.  Executive
acknowledges that, during his employment, the Company has received from third
parties confidential or proprietary information, and that the Company must
maintain the confidentiality of such information and use it only for authorized
purposes.  Executive shall not use or
disclose any such information without prior written authorization from the
Company or the third party to whom the information belongs.

 

III.                                 ADDITIONAL PROVISIONS

 

A.                                   Executive’s Voluntary
Execution of Agreement.  Except as expressly provided herein, Executive
acknowledges that he will not receive, nor is he entitled to, any payment or
consideration.  The mutual covenants,
promises and payments (including the COBRA Payment and the Consultancy Payment)
set forth herein are full and fair consideration for this Agreement including
the release provisions hereof.  Executive
acknowledges that in executing this Agreement, he has reviewed and understands
its terms and has had an opportunity to seek advice of counsel of his own
choosing, was fully advised of his rights under law, and has acted knowingly
and voluntarily in the execution of this Agreement.  By entering into this Agreement neither the
Company nor Executive admit any liability to the other.

 

5

 

B.                                     Cumulative Rights.  The Company’s rights and remedies under this
Agreement hereof are cumulative and are in addition to any other rights and
remedies the Company may have at law or in equity.

 

C.                                     Entire Agreement.  This Agreement constitutes the complete,
entire, final and exclusive agreement between Executive and the Company and
supersedes any prior agreement, whether written or oral, with regard to the
subject matter hereof.  This Agreement
has been entered into by the Parties without reliance on any promise or
representation, written or oral, other than those expressly contained herein.

 

D.                                    Modification of Agreement
Only in Writing.   This Agreement may not be
modified, except in writing, signed by Executive and a duly authorized officer
of the Company.

 

E.                                      Governing Law and
Jurisdiction.   This Agreement has been
drafted in accordance with and shall be construed and enforced in accordance
with and governed by the laws of the State of Colorado.

 

F.                                      Severability.   The Parties intend that this Agreement be
enforced according to its terms.  If any
one or more provision of this Agreement is determined to be invalid, illegal,
or unenforceable, in whole or in part, this determination will not affect or
impair any other provision of this Agreement. 
Any provision found to be invalid, illegal, or unenforceable shall be
deemed, without further action on the part of the parties, to be modified,
amended, or limited to the minimum extent necessary to render the provision
valid and enforceable.

 

G.                                     Waiver of Terms and
Conditions.   Except as specifically set
forth in this Agreement, no waiver of any term or provision of this Agreement
will be valid unless such waiver is in writing, signed by the party against
whom enforcement of the waiver is sought. 
The waiver of any term or provision of this Agreement shall not apply to
any subsequent breach of this Agreement.

 

H.                                    Attorneys’ Fees.   In the event of any proceeding, claim, or
action being filed or instituted between the parties with respect to this
Agreement, the prevailing party will be entitled to receive from the other
party all costs, damages and expenses, including reasonable attorneys’ fees,
incurred by the prevailing party in connection with that action or proceeding,
whether or not the controversy is reduced to judgment or award.  The prevailing party will be that party who
may be fairly said by the trier of fact to have prevailed on the major disputed
issues.

 

I.                                         No Other
Representation.   The Parties acknowledge that
no promise or representations have been made to induce them to sign this
Agreement other than as expressly set forth herein and that each has signed this
Agreement as a free and voluntary act.

 

J.                                        Captions.   The captions in this Agreement are for
convenience and reference only, and shall not define or limit any of the terms
or provisions of this Agreement.

 

6

 

SIGNATURE PAGE

 

IN WITNESS WHEREOF, the Parties execute this
Separation, Consulting and Mutual Release Agreement.

 

	
   

  	
  BIOFUEL ENERGY CORP.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott H. Pearce

  
	
   

  	
   

  	
  Name:

  	
  Scott H. Pearce

  
	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
	
   

  	
   

  	
  Date:

  	
  April 10, 2008

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Michael N. Stefanoudakis

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
    Date:  April 9, 2008

  	
   

  
					

 

7

 

EXHIBIT A

 

The following (or substantially similar) text shall be included in a Form 8-K
to be filed with the SEC by the Company:

 

“The Company announced that Michael N. Stefanoudakis, the Company’s
Vice President and General Counsel, has resigned his position with the Company
effective April 18, 2008 to pursue other business opportunities.  The Company thanks Mr. Stefanoudakis for
his service.  The Company and Mr. Stefanoudakis
have entered into a consulting agreement to facilitate an orderly transition of
his duties, which agreement is attached to this Form 8-K as Exhibit 10.1.”

 

8

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