Document:

exv10w17

Exhibit 10.17

INDUSTRIAL REAL PROPERTY LEASE

	Landlord: 	 	 Holman/Shidler Investment Corporation, Trustee
	 
	Tenant:  	 	Palco Welding Products of Canada, Ltd., a Canadian corporation

Dated as of August 11, 1988

Property located at

2220 Wyecroft Road

Oakville, Ontario

 

 

TABLE
OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Parties
	 	 	1	 
	 
	 	 	 	 
	ARTICLE I

DEFINITIONS
	 
	 	 	 	 
	Paragraph 1.1 Defined Terms
	 	 	1	 
	Paragraph 1.2 Additional Definitions
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II

DEMISE AND ACCEPTANCE
	 
	 	 	 	 
	Paragraph 2.1 Demise of Premises
	 	 	3	 
	Paragraph 2.2 Term
	 	 	4	 
	Paragraph 2.3 Acceptance of Premises
	 	 	4	 
	 
	 	 	 	 
	ARTICLE III

RENT
	 
	 	 	 	 
	Paragraph 3.1 Base Monthly Rent
	 	 	4	 
	Paragraph 3.2 Additional Rent
	 	 	4	 
	Paragraph 3.3 Payment of Rent
	 	 	4	 
	Paragraph 3.4 Triple Net Lease
	 	 	5	 
	 
	 	 	 	 
	ARTICLE IV

USE OF LEASED PREMISES
	 
	 	 	 	 
	Paragraph 4.1 Limitation on Type
	 	 	5	 
	Paragraph 4.2 Compliance With Laws and Private Restrictions
	 	 	5	 
	Paragraph 4.3 Insurance Requirements
	 	 	6	 
	 
	 	 	 	 
	ARTICLE V

TRADE FIXTURES AND LEASEHOLD IMPROVEMENTS
	 
	 	 	 	 
	Paragraph 5.1 Leasehold Improvements
	 	 	7	 
	Paragraph 5.2 Alterations Required by Law
	 	 	8	 
	Paragraph 5.3 Landlord’s Improvements
	 	 	8	 
	Paragraph 5.4 Liens
	 	 	8	 
	 
	 	 	 	 
	ARTICLE VI

REPAIR, MAINTENANCE AND SECURITY
	 
	 	 	 	 
	Paragraph 6.1 Tenant’s Obligation to Maintain
	 	 	8	 
	Paragraph 6.2 Environmental Condition
	 	 	9	 
	Paragraph 6.3 Security
	 	 	10	 

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	 	 	Page	 
	ARTICLE VII

WASTE DISPOSAL AND UTILITIES
	 
	 	 	 	 
	Paragraph 7.1 Waste Disposal
	 	 	10	 
	Paragraph 7.2 Utilities
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VIII

REAL PROPERTY TAXES
	 
	 	 	 	 
	Paragraph 8.1 Real Property Taxes Defined
	 	 	11	 
	Paragraph 8.2 Tenant’s Obligation To Pay
	 	 	12	 
	Paragraph 8.3 Taxes on Tenant’s Property
	 	 	12	 
	Paragraph 8.4 Tax Segregation
	 	 	12	 
	Paragraph 8.5 Tax Contest
	 	 	13	 
	 
	 	 	 	 
	ARTICLE IX

INSURANCE
	 
	 	 	 	 
	Paragraph 9.1 Tenant’s Insurance
	 	 	13	 
	Paragraph 9.2 Landlord’s Insurance
	 	 	14	 
	Paragraph 9.3 Policies
	 	 	15	 
	Paragraph 9.4 Release and Waiver of Subrogation
	 	 	15	 
	 
	 	 	 	 
	ARTICLE X

LIMITATION ON LANDLORD’S LIABILITY

AND INDEMNITY
	 
	 	 	 	 
	Paragraph 10.1 Limitation on Landlord’s Liability
	 	 	16	 
	Paragraph 10.2 Indemnification of Landlord
	 	 	16	 
	 
	 	 	 	 
	ARTICLE XI

DAMAGE TO LEASED PREMISES
	 
	 	 	 	 
	Paragraph 11.1 Duty To Restore
	 	 	16	 
	Paragraph 11.2 Tenant’s Right To Terminate
	 	 	17	 
	Paragraph 11.3 No Abatement of Rent
	 	 	18	 
	 
	 	 	 	 
	ARTICLE XII

CONDEMNATION
	 
	 	 	 	 
	Paragraph 12.1 Definitions
	 	 	18	 
	Paragraph 12.2 Total Condemnation
	 	 	18	 
	Paragraph 12.3 Partial Condemnation
	 	 	18	 
	Paragraph 12.4 Temporary Taking
	 	 	19	 
	Paragraph 12.5 Division of Condemnation Award
	 	 	19	 
	 
	 	 	 	 
	ARTICLE XIII

DEFAULT AND REMEDIES
	 
	 	 	 	 
	Paragraph 13.1 Events of Default
	 	 	19	 
	Paragraph 13.2 Landlord’s Remedies
	 	 	21	 

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	 	 	Page	 
	Paragraph 13.3 Landlord’s Right To Cure
	 	 	23	 
	Paragraph 13.4 Waiver
	 	 	24	 
	Paragraph 13.5 Late Charge
	 	 	24	 
	 
	 	 	 	 
	ARTICLE XIV

ASSIGNMENT AND SUBLETTING
	 
	 	 	 	 
	Paragraph 14.1 By Tenant
	 	 	24	 
	Paragraph 14.2 By Landlord
	 	 	26	 
	 
	 	 	 	 
	ARTICLE XV

TERMINATION
	 
	 	 	 	 
	Paragraph 15.1 Surrender of the Leased Premises
	 	 	27	 
	Paragraph 15.2 Holding Over
	 	 	28	 
	 
	 	 	 	 
	ARTICLE XVI

GENERAL PROVISIONS
	 
	 	 	 	 
	Paragraph 16.1 Financial Information
	 	 	28	 
	Paragraph 16.2 Landlord’s Right To Enter
	 	 	29	 
	Paragraph 16.3 Subordination
	 	 	30	 
	Paragraph 16.4 Tenant’s Attornment
	 	 	30	 
	Paragraph 16.5 Estoppel Certificates
	 	 	30	 
	Paragraph 16.6 Force Majeure
	 	 	31	 
	Paragraph 16.7 Notices
	 	 	31	 
	Paragraph 16.8 Attorneys’ Fees
	 	 	31	 
	Paragraph 16.9 Corporate Authority
	 	 	32	 
	Paragraph 16.10 Option To Extend
	 	 	32	 
	Paragraph 16.11 CPI Rent Adjustment
	 	 	32	 
	Paragraph 16.12 Brokerage Commissions
	 	 	33	 
	Paragraph 16.13 Termination by Exercise of Option
	 	 	33	 
	Paragraph 16.14 Guaranty
	 	 	33	 
	Paragraph 16.15 Memorandum of Lease
	 	 	34	 
	Paragraph 16.16 Entire Agreement
	 	 	34	 
	Paragraph 16.17 Miscellaneous
	 	 	34	 

EXHIBITS

	 	 	 

	Exhibit A

	 	Legal Description
	 
	 	 
	Exhibit B

	 	Base Monthly Rent
	 
	 	 
	Exhibit C

	 	Guaranty
	 
	 	 
	Exhibit D

	 	Memorandum of Lease

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INDUSTRIAL REAL PROPERTY LEASE

          THIS LEASE, made as of August 11, 1988 between
HOLMAN/SHIDLER INVESTMENT CORPORATION, a Hawaii corporation, Trustee (“Landlord”), whose
address is Four Embarcadero Center, Suite 3150, San Francisco, California 94111 and PALCO
WELDING PRODUCTS OF CANADA, LTD., a Canadian corporation (“Tenant”), whose
address is 101 South Hanley, St. Louis, Missouri 63105,

W I T N E S S E T H:

          In consideration of the mutual covenants contained herein, the parties agree as follows:

ARTICLE I

DEFINITIONS

          1.1 Defined Terms. For purposes of this Lease, the following terms shall have the
following meanings.

          (a) Additional Rent. The term “Additional Rent” shall have the meaning set forth in
Paragraph 3.2 hereof.

          (b) Base Monthly Rent. The term “Base Monthly Rent” shall have the meaning set
forth in Paragraph 3.1 hereof.

          (c) CPI Adjustment Date. The term “CPI Adjustment Date” shall mean the date 120
months from the first day of the first full calendar month following the Commencement Date and the
first day of each Extension Period.

          (d) Existing Mortgage. The term “Existing Mortgage” shall mean that certain
Mortgage, Deed of Trust, Assignment of Leases and Rents and Security Agreement from Landlord to The
Chase Manhattan Bank, N.A., dated as of August 11, 1988 affecting the Leased Premises, as
amended from time to time (except that Tenant shall not be bound by any such amendment, except
with Tenant’s consent).

          (e) Commencement Date. The term “Commencement Date” shall mean August 11, 1988.

          (f) Consumer Price Index. As used in this Lease, “Consumer Price Index” shall mean
the Consumer Price Index for All Urban Consumers, U.S. City Average, All Items, 1982-1984 equals
100, published by the United States Department of Labor, Bureau of Labor Statistics. If the
federal

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government revises or ceases to publish the Consumer Price Index, Landlord and Tenant shall convert
to the revised index or adopt the successor index in accordance with the
guidelines therefor issued by the federal government.

          (g) Expiration Date. The term “Expiration Date”
shall have the meaning set forth in Paragraph 2.2 hereof.

          (h) Extension Period. The term “Extension
Period” shall have the meaning set forth in Paragraph 16.10.

          (i) Guaranty. The term “Guaranty” shall have the
meaning set forth in Paragraph 16.14 hereof.

          (j) Landlord’s Improvements. The term “Landlord’s Improvements” shall mean all
improvements Landlord may construct on the Leased Premises at Landlord’s expense at any time.

          (k) Law. The term “Law” shall mean any judicial decision, statute,
constitution, ordinance, resolution, regulation, rule, administrative order or other requirement of
any municipal, county, state, provincial, federal or other government agency or authority having
jurisdiction over the parties to this Lease or the Leased Premises or both, in effect either at the
Effective Date of this Lease or any time during the Lease Term, including, without limitation, any
regulation, order or policy of any quasiofficial entity or body (e.g., board of fire examiners,
public utilities or special district).

          (l) Lease Term. The term “Lease Term” shall have the meaning set forth in
Paragraph 2.2 hereof.

          (m) Leased Premises. The term “Leased Premises” shall mean the real property
described in Exhibit A attached hereto including all improvements thereon.

          (n) Leasehold Improvements. The term “Leasehold Improvements” shall mean all
improvements, additions, alterations and fixtures installed in the Leased Premises at Tenant’s
expense after the Commencement Date (and not in replacement of similar work existing on the Leased
Premises as of the Commencement Date) at any time which are permanently attached or affixed to the
Leased Premises.

          (o) Lender. The term “Lender” shall mean any beneficiary, mortgagee, secured
party, or other holder of any deed of trust, mortgage charge, or other written security device or
agreement affecting Landlord’s interest in the Leased Premises, and the note or other obligations
secured by it.

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          (p) Operating Expenses. The term “Operating Expenses” shall include those
expenses to be borne by Tenant pursuant to Paragraphs 6.1, 6.3, 7.1 and 7.2 hereof.

          (q) Palco. The term “Palco” shall have the meaning set forth in Paragraph 16.14
hereof.

          (r) Pollution Hazard. The term “Pollution Hazard” shall have the meaning set
forth in Paragraph 6.2(b) hereof.

          (s) Private Restrictions. The term “Private Restrictions” shall mean all
recorded covenants, conditions and restrictions, private agreements, reciprocal easement
agreements, and any other recorded or unrecorded instruments, in effect on the Commencement Date
or thereafter entered into by or consented to by Tenant, affecting the use of the Leased Premises
from time to time.

          (t) Real Property Taxes. The term “Real Property Taxes” shall have the meaning
set forth in Paragraph 8.1 hereof.

          (u) Trade Fixtures. The term “Trade Fixtures” shall mean all movable equipment,
furniture, furnishings, and other personal property installed in the Leased Premises by Tenant at
Tenant’s expense (and not in replacement of similar work or materials existing on the Leased
Premises as of the Commencement Date) which are not permanently attached to the Leased Premises;
provided, howevar, that all of
Tenant’s signs and Tenant’s equipment not necessary for the operation of the Leased Premises
without regard to the particular business conducted thereon (i.e., systems and facilities integral
to the buildings and other improvements) shall be Trade Fixtures whether or not permanently
attached or affixed to the Leased Premises.

          1.2 Additional Definitions. Any term that is given a special meaning by any
provision in this Lease shall have such meaning when used in this Lease or any addendum or
amendment hereto.

ARTICLE II

DEMISE AND ACCEPTANCE

          2.1 Demise of Premises. Landlord hereby demises and leases to Tenant, and Tenant
hereby leases from Landlord, the Leased Premises for the Lease Term upon and subject to the terms
and conditions of this Lease.

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          2.2 Term. This Lease shall be for a period of one hundred eighty (180) months (plus
the partial month, if any, immediately following the Commencement Date) (the “Lease Term”)
commencing on the Commencement Date and ending at midnight of the last day of the one hundred
eightieth (180th) full calendar month thereafter (the “Expiration Date”), unless this Lease is
sooner terminated or extended according to the terms hereof or by mutual agreement of the parties.
If this Lease is so extended, the term “Lease Term” shall include any Extension Period.

          2.3 Acceptance of Premises. Tenant agrees to accept possession of the Leased
Premises in the condition existing as of the Commencement Date. Landlord makes no warranty,
express or implied, as to the condition of the Leased Premises or the suitability of the Leased
Premises for Tenant’s use or for any other purpose. Tenant acknowledges that it has had
possession of the Leased Premises prior to the date of this Lease and is fully aware of and
familiar with the condition of the Leased Premises.

ARTICLE III

RENT

          3.1 Base Monthly Rent. Commencing on the Commencement Date and continuing
throughout the Lease Term and any Extension Period, Tenant shall pay to Landlord as monthly rent
(the “Base Monthly Rent”) the amounts indicated during the periods indicated in Exhibit B hereto.

          3.2 Additional Rent. Commencing on the Commencement Date and continuing throughout
the Lease Term, Tenant shall pay, as additional rent, Real Property Taxes as required by Paragraph
8.2 hereof, Operating Expenses, and amounts required to be paid by Tenant under Paragraph 9.1 and
Paragraph 13.3 hereof (collectively, the “Additional Rent”).

          3.3 Payment of Rent. All rent required to be paid in monthly installments shall be
paid in advance on the first day of each calendar month during the Lease Term. All rent
(including Base Monthly Rent and Additional Rent) shall be paid in lawful money of the United
States, without any abatement, deduction or offset whatsoever, and without any prior demand
therefor, to Landlord in immediately available funds by wire transfer to Landlord’s account
no. 4050-4174 with Citibank, N.A., New York, New York (A.B.A.
No. 021-0000-89) or such other account as Landlord may designate by written notice from time to
time. Tenant’s obligation to pay rent shall be prorated to account for

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partial calendar months at the commencement and the expiration or sooner termination of the Lease
Term.

          3.4 Triple Net Lease. This Lease is what is commonly called a “Net, Net, Net
Lease,” it being understood that Landlord shall receive the rent set forth in Paragraph 3.1 hereof
free and clear of any and all other impositions, taxes, liens, charges or expenses of any nature
whatsoever in connection with the ownership and operation of the Leased Premises (excluding
payments of any mortgage or deed of trust voluntarily incurred by Landlord).

ARTICLE IV

USE OF LEASED PREMISES

          4.1 Limitation on Type. Tenant may use the Leased Premises for any legal purpose,
provided that Tenant shall-not discontinue the use of the Leased Premises for its current purpose
(manufacturing) unless Tenant shall have first given Landlord prior written notice thereof.
Tenant shall not do or permit anything to be done in or on the Leased Premises which might cause
structural injury to the Leased Premises or might place any loads upon any floor, wall or ceiling
which might damage or endanger any portion of the Leased Premises. Tenant shall not operate any
equipment in or on the Leased Premises which will injure the Leased Premises, which will overload
existing electrical systems or mechanical equipment servicing the Leased Premises, or which will
impair the efficient operation of the sprinkler system (if any) within the Leased Premises. Tenant
shall not commit nor permit to be committed any waste upon the Leased Premises, and Tenant shall
keep the Leased Premises in a condition free of any nuisances.

          4.2 Compliance With Laws and Private Restrictions.

          (a) Tenant shall not use or permit any person to use the Leased Premises for any use or
purpose in violation of any Laws or Private Restrictions. Tenant shall, at its own cost and
expense, abide by and promptly observe and comply with all Laws and Private Restrictions applicable
to the use or occupancy of the Leased Premises.

          (b) Tenant shall not use or permit any person to use the Leased Premises for any purpose or in
any manner other than in full compliance with all applicable Laws, including without limitation all
zoning, land-use, antipollution, environmental, health and safety Laws.

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          (c) Notwithstanding subparagraphs (a) and (b) of this Paragraph 4.2, in the event that
Tenant shall desire in good faith to contest or otherwise review by appropriate legal or
administrative proceeding any Law or Private Restriction, Tenant shall, at least fifteen (15) days
prior to commencing such proceeding, give Landlord written notice of its intention to do so.
Tenant may forego compliance with such Law or Private Restriction being contested if, but only if,
both (i) such noncompliance is permitted during the pendency of such proceedings without the
foreclosure of any lien or the imposition of any fine or penalty or judgment for damages, and (ii)
Tenant shall obtain and furnish Landlord with a bond or other security device, and otherwise comply
with any applicable reasonable requirements of the Existing Mortgage, and sufficient to protect
Landlord’s interest in the Leased Premises and to reimburse Landlord for any liability which might
be incurred if such proceedings are determined adversely to Tenant. Any such contest shall be
prosecuted to completion (whether or not this Lease shall have expired or terminated in the
interim) and shall be conducted without delay and solely at Tenant’s expense. Tenant shall
indemnify and defend Landlord against any and all expense (including attorneys’ fees), liability or
damage resulting from such contest or other proceeding. At the request of Tenant, Landlord shall
join in any contest or other proceeding which Tenant may desire to bring pursuant to this
paragraph. Tenant shall pay all of Landlord’s reasonable expenses (including attorneys’ fees)
arising out of such joinder. Within ten (10) days after the final determination of such contest
or other proceeding. Tenant shall pay any amount and perform any obligation determined to be due,
together with any costs, expenses and interest, whether or not this Lease shall have then expired
or terminated.

          4.3 Insurance Requirements. Tenant shall not use the Leased Premises in any
manner or for any purpose (other than the manner in which and the purpose for which the Leased
Premises are used on the Commencement Date), or permit any use of the Leased Premises or any act to
be committed on the Leased Premises, if any such use or act will increase the existing rate of
insurance upon the Leased Premises or cause a cancellation of any insurance policy covering the
Leased Premises. Tenant shall not sell, keep or use, or permit to be kept, used, or sold, in or
about the Leased Premises any article which may be prohibited by the standard form of fire
insurance policy. Tenant shall, at its sole cost and expense, comply with all requirements of
any insurance company, insurance underwriter, or Board of Fire Underwriters which are necessary to
maintain, at
standard rates, the insurance coverage required under this Lease.

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ARTICLE V

TRADE FIXTURES AND LEASEHOLD IMPROVEMENTS

          5.1 Leasehold Improvements. Except for Minor Work (as hereinafter defined), Tenant
shall not construct any Leasehold Improvements or otherwise alter the Leased Premises without
Landlord’s prior approval, and not until Landlord shall have first approved the plans and
specifications therefor, which approvals shall not be unreasonably withheld. All such Leasehold
Improvements and alterations (including Minor Work) shall be constructed and installed by Tenant at
Tenant’s expense, using a licensed contractor first approved by Landlord (except such approval
shall not be required for Minor Work), in substantial compliance with the approved plans and
specifications therefor (if such plans and specifications are required hereunder) and in strict
accordance with all Laws and Private Restrictions. All such construction and installation shall be
done in a good and workmanlike manner using new materials (or such other materials as Landlord
shall expressly permit in writing) of good quality. Tenant shall not commence construction of any
Leasehold Improvements or alterations until (i) all required governmental approvals and permits
shall have been obtained, (ii) all requirements regarding insurance imposed by this Lease shall
have been satisfied, and (iii) Tenant shall have given Landlord at least five (5) days’ prior
written notice of its intention to commence such construction. The term “Minor Work,” as used
herein, shall mean any construction or Leasehold Improvements or alteration of the Leased Premises
not involving any structural change or change in the character of the improvements, and involving a
cost of less than one hundred thousand dollars ($100,000), provided that, for purposes of
determining such cost, multiple construction or alteration projects shall be aggregated to the
extent they are related to each other, whether undertaken simultaneously or sequentially. Landlord
shall respond to Tenant’s requests for approval under this Paragraph 5.1 promptly (and immediately
in the event of emergency) and in any event within fifteen (15) business days after receipt of such
request. All Leasehold Improvements shall remain the property of Tenant during the Lease Term but
shall not be damaged, altered or removed from the Leased Premises. At the expiration or sooner
termination of the Lease Term, all Leasehold Improvements shall be surrendered to Landlord as a
part of the realty and shall then become Landlord’s property, and Landlord shall have no obligation
to reimburse Tenant for all or any portion of the value or cost thereof; provided, however, that if
Landlord shall require Tenant to remove any Leasehold Improvements in accordance with the
provisions of Paragraph 15.1, then

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Tenant shall so remove such Leasehold Improvements prior to the expiration or sooner termination of
the Lease Term.

          5.2
Alterations Required by Law. Tenant shall, at its sole cost, make any alteration,
addition or change of any sort, whether structural or otherwise, to the Leased Premises that is
required by any Law.

          5.3 Landlord’s Improvements. All fixtures, improvements or equipment which now
comprise the Leased Premises, or which are installed, constructed on or attached to the Leased
Premises at Landlord’s expense shall become a part of the realty and belong to Landlord.

          5.4 Liens. Tenant shall keep the Leased Premises free from any liens arising out of
any work performed, materials furnished, or obligations incurred by Tenant, its agents, employees
or contractors relating to the Leased Premises. If any claim of lien is recorded. Tenant shall bond
against or discharge the same or provide other security reasonably satisfactory to Landlord prior
to the time such lien may be foreclosed and in any event within ten (10) business days after the
same has been recorded against the Leased Premises.

ARTICLE VI

REPAIR, MAINTENANCE AND SECURITY

          6.1 Tenant’s Obligation To Maintain.

          (a) Tenant shall, at all times and at Tenant’s sole cost and expense, clean, keep, and
maintain in good order, condition, and repair the Leased Premises and every part thereof and all
fixtures and improvements therein and thereon, through regular inspections and servicing (and
replacement where appropriate), including without limitation (i) all plumbing and sewage facilities
(including all sinks, toilets, faucets and drains), including repair of leaks around ducts, pipes,
vents, or other parts of the heating, ventilation and air conditioning systems (“HVAC”) or plumbing
system, (ii) all fixtures, interior walls, floors, ceilings, windows, doors, entrances, plate
glass, showcases, and skylights, (iii) all electrical facilities and all equipment including all
lighting fixtures, lamps, bulbs and tubes, fans, vents, exhaust equipment and systems, (iv) all
fire extinguisher equipment, (v) any landscaping (including any necessary replanting) and
irrigation systems, (vi) all parking areas (including any necessary painting, striping, patching or
resurfacing), (vii) the exterior, floors and roof of all buildings contained within the Leased
Premises

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(including any necessary painting or resurfacing of walls and any patching, resurfacing or
replacement of roofs to preserve the same or to repair leaks) and (viii) all structural parts of
the improvements. All glass, both interior and exterior, is the sole responsibility of Tenant, and
any broken glass shall promptly be replaced by Tenant at Tenant’s expense with glass of the same
kind (to the extent permitted by applicable building codes), size and quality. Tenant shall be
responsible for the maintenance, repair and replacement when necessary of all HVAC equipment which
serves the Leased Premises and shall keep the same in good condition through regular inspection and
servicing at least once every three (3) months.

          (b) All repairs and replacements required of Tenant hereunder shall be promptly made with new
materials (or, with Landlord’s consent, other materials) of like kind and quality. If the work
results in a change in the character of the improvements on the Leased Premises or affects the
structural parts of the Leased Premises or if the estimated cost of any item of repair or
replacement is in excess of one hundred thousand dollars ($100,000), then Tenant shall first obtain
Landlord’s written approval as to the scope of work, materials to be used, and the contractor.
Landlord shall respond to Tenant’s request for approval promptly (and immediately in the event of
emergency) and in any event within fifteen (15) business days after receipt of such request.

          6.2 Environmental Condition.

          (a) Tenant shall not, or permit any other person to, store, discharge, dispose of, dump,
disperse, release, treat or generate pollutants, contaminants or hazardous or toxic substances,
wastes or materials (as determined under applicable Law) in, on, about, under or from the Leased
Premises unless such storage, discharge, disposal, dumping, dispersion, release, treatment or
generation is carried out in full compliance with all applicable Laws.

          (b) Immediately following obtaining knowledge of the presence of or any discharge, disposal,
dumping, dispersion or release of pollutants, contaminants or hazardous or toxic substances, wastes
or materials prohibited by Law (“Pollution Hazard”), Tenant shall immediately upon discovery
thereof (i) notify Landlord of such Pollution Hazard, (ii) obtain from reputable environmental
consultants, and deliver to Landlord, three (3) detailed estimates of the cost of remedying such
Pollution Hazard, and (iii) begin appropriate remedial action and diligently pursue such remedial
action to completion, all at Tenant’s sole cost and expense.

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          (c) In the event of a Pollution Hazard remediation of which is likely, in Landlord’s
reasonable estimation, to cost more than twenty-five thousand dollars ($25,000), Tenant shall
provide Landlord, immediately upon Landlord’s request, with adequate financial assurances that
Tenant will meet its obligations under Paragraph 6.2 (b) above. The financial assurances required
under this Paragraph 6.2 (c) shall take the form of a bond or letter of credit in form and substance
satisfactory to Landlord in an amount equal to Landlord’s reasonable estimate of the anticipated
cost of the remedial action required under Paragraph 6.2 (b) hereof and shall be provided within ten
(10) days of Landlord’s written request.

          (d) Upon Landlord’s request, from time to time (but not more frequently than four (4) times in
any twelve (12) month period), Tenant shall provide Landlord with a written list of all toxic and
hazardous substances, materials or wastes stored, discharged, disposed of, released, treated or
used by Tenant in, on or about the Leased Premises.

          6.3 Security. Tenant shall employ and coordinate the services of reasonably skilled
and responsible persons as security guards, janitors and maintenance workers, and such additional
staff, all as may be necessary and appropriate for the security, protection and maintenance of the
Leased Premises. Such individuals shall be under the supervision, direction and control of Tenant
who shall fix their compensation and have the exclusive right to employ and terminate employment of
any and all such individuals or such individuals’ employer; such individuals shall not be or be
deemed to be the employees of Landlord for any purpose whatsoever.

ARTICLE VII

WASTE  DISPOSAL  AND  UTILITIES

          7.1 Waste Disposal. Tenant shall store its waste in accordance with all applicable
Laws either inside the building(s) contained within the Leased Premises or within outside trash
enclosures which are designed for such purpose. All entrances to such outside trash enclosures
shall be kept closed, and waste shall be stored in such manner as not to be visible from the
exterior of such outside enclosures. Tenant shall cause all of its waste to be regularly removed
from the Leased Premises at Tenant’s sole cost. Tenant shall keep all fire corridors and mechanical
equipment rooms in the Leased Premises free and clear of all obstructions at all times.

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          7.2 Utilities. Tenant shall promptly pay, as the same become due, all charges for
water, gas, electricity, telephone, sewer service, waste pick-up, and any other utilities,
materials or services furnished directly to or used by Tenant on or about the Leased Premises
during the Lease Term.

ARTICLE  VIII

REAL  PROPERTY  TAXES

          8.1 Real Property Taxes Defined. The term “Real Property Taxes” as used herein shall
mean (i) all taxes, assessments, levies, and other charges of any kind or nature whatsoever,
general and special, foreseen and unforeseen (including all installments of principal and interest
required to pay any general or special assessments for public improvements and any increases
resulting from reassessments caused by any change in ownership) now or hereafter -imposed by any
governmental or quasi-governmental authority or special district having the direct or indirect
power to tax or levy assessments, which are levied or assessed against, or with respect to the
value, occupancy or use of, all or any portion of the Leased Premises (as now constructed or as may
at any time hereafter be constructed, altered, or otherwise changed) or Landlord’s interest
therein; any improvements located within the Leased Premises (regardless of ownership); the
fixtures, equipment and other property of Landlord, real or personal, that are an integral part of
and located on the Leased Premises; or parking areas, public utilities, or energy within the Leased
Premises; and (ii) all charges, levies or fees imposed by reason of environmental regulation or
other governmental control of the Leased Premises. If at any time during the Lease Term the
taxation or assessment of the Leased Premises prevailing as of the Commencement Date shall be
altered so that in lieu of or in addition to any Real Property Tax described above there shall be
levied, assessed or imposed (whether by reason of a change in the method of taxation or assessment,
creation of a new tax or charge, or any other cause) an alternate or additional tax or charge (1)
on the value, use or occupancy of the Leased Premises or Landlord’s interest therein or (2) on or
measured by the gross receipts, income or rentals from the Leased Premises, on Landlord’s business
of leasing the Leased Premises, or computed in any manner with respect to the operation of the
Leased Premises, then any such alternate or additional tax or charge, however designated, shall be
included within the meaning of the term “Real Property Taxes” for purposes of this Lease. If any
Real Property Tax is based upon property or rents unrelated to the Leased Premises, then only that
part of such Real Property Tax that is fairly allocable to the Leased

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Premises shall be included within the meaning of the term “Real Property Taxes.” Notwithstanding
the foregoing, the term “Real Property Taxes” shall not include estate, inheritance, transfer, gift
or franchise taxes of Landlord or the federal or state net income tax imposed on Landlord’s income
from all sources.

          8.2 Tenant’s Obligation To Pay. Not less than ten (10) days after Landlord’s receipt
of any tax bill for Real Property Taxes, Landlord shall deliver to Tenant a true, correct and
complete copy of such tax bill. As additional rent, Tenant shall pay directly to the appropriate
governmental or quasi-governmental authorities all Real Property Taxes no later than ten (10) days
before such Real Property Tax becomes delinquent (or, as to any tax bill Tenant receives less than
fifteen (15) days prior to such delinquency date, no later than five (5) business days after
receipt of such tax bill). Concurrently with any such payment, Tenant shall supply Landlord with
written evidence that all Real Property Taxes then due and payable pursuant to this Article shall
have been paid prior to delinquency. If any Lender which is a bank, savings or thrift institution,
insurance company or other financial institution requires Landlord to impound any sums to pay Real
Property Taxes on a periodic basis during the Lease Term, then Tenant, on notice from Landlord
indicating this requirement, shall pay to Landlord such sums as the Lender requires to be impounded
on the same periodic basis in accordance with the Lender’s requirements. Landlord shall impound the
Real Property Tax payments received from Tenant in accordance with the requirements of the Lender.
Amounts impounded shall be maintained in an interest bearing account until paid, and Tenant shall
be entitled to interest earned thereon. Tenant shall only be required to pay those Real Property
Taxes or installments thereof which are payable with respect to periods during the Lease Term, with
appropriate proration at the beginning and end of the Lease Term.

          8.3 Taxes on Tenant’s  Property. Tenant shall pay before delinquency any and all taxes,
assessments, license fees, and public charges levied, assessed, or imposed against Tenant or
Tenant’s interest in this Lease or the property of Tenant situated within the Leased Premises which
become payable during the Lease Term if nonpayment thereof could give rise to a lien on the Leased
Premises.

          8.4 Tax  Segregation. In the event that the Leased Premises are not separately taxed or
assessed with respect to any Real Property Tax, then such Real Property Tax shall be equitably
apportioned and allocated between the Leased Premises and the other areas with which it is
assessed, and Tenant shall be obligated to pay, pursuant to this

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Article, only the proportion of such Real Property Tax which is so allocated to the Leased
Premises.

          8.5 Tax Contest. In the event that Tenant shall desire in good faith to contest or
otherwise review by appropriate legal or administrative proceeding any Real Property Tax, Tenant
shall, no later than ten (10) days after Tenant receives notice of the Real Property Tax assessment
Tenant desires to contest, give Landlord written notice of its intention to do so. Tenant may
withhold payment of the Real Property Tax being contested if, but only if, both (i) nonpayment is
permitted during the pendency of such proceedings without the foreclosure of any tax lien or the
imposition of any fine or penalty and (ii) Tenant shall obtain and furnish Landlord with a bond or
other security device, and otherwise comply with the reasonable requirements of Section 1.07(c) of
the Existing Mortgage, and sufficient to protect Landlord’s interest in the Leased Premises in an
amount not less than one hundred fifty percent (150%) of the amount contested. Any such contest
shall be prosecuted to completion (whether or not this Lease shall have expired or terminated in
the interim) and shall be conducted without delay and solely at Tenant’s expense. Tenant shall
indemnify and defend Landlord against any and all expense, liability or damage resulting from such
contest or other proceeding. At the request of Tenant, Landlord shall join in any contest or other
proceedings which Tenant may desire to bring pursuant to this paragraph. Tenant shall pay all of
Landlord’s reasonable expenses (including attorneys’ fees) arising out of such joinder. Within ten
(10) days after the final determination of the amount due from Tenant with respect to the Real
Property Tax contested, Tenant shall pay the amount so determined to be due, together with all
costs, expenses and interest, whether or not this Lease shall have then expired or terminated.

ARTICLE  IX

INSURANCE

          9.1
Tenant’s Insurance. Tenant shall, at its own expense and cost, maintain the
following policies of insurance in full force and effect during the Lease Term and any Extension
Period:

          (a) Property insurance insuring against loss or damage resulting from all-risk perils with
respect to the building structures on the Leased Premises in an amount not less than 100% of the
full insurance replacement cost thereof.

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          (b) Business interruption insurance insuring against loss of income resulting from the same
perils described above in an amount not less than one year of total Base Monthly Rent and
Additional Rent, calculated at the rate payable during the next ensuing year of the Lease Term.

          (c) Comprehensive general liability insurance applying to the use and occupancy of the Leased
Premises, or any part thereof, and the business operated by Tenant on the Leased Premises. Such
insurance shall include Broad Form Contractual liability insurance coverage insuring all of
Tenant’s indemnity obligations under this Lease. The general liability coverage shall have a
minimum combined single limit of liability of at least one million dollars ($1,000,000) and a
general aggregate limit of two million dollars ($2,000,000) (except products liability as to which
the aggregate liability is $1,000,000). The Company will maintain a $1,000,000 all risks umbrella
policy. Such coverage may be subject to a deductible not in excess of one hundred thousand dollars
($100,000) (except for products liability coverage as to which the deductible shall be in a
reasonable and customary amount). All such policies shall be written to apply to all bodily injury,
property damage, personal injury and other covered loss, however occasioned, occurring during the
policy term and shall be endorsed to add Landlord and any Lender with a first lien mortgage as an
additional insured and to provide that such coverage shall be primary and that any insurance
maintained by Landlord shall be excess insurance only. All such insurance shall provide for
severability of interest; shall provide that an act or omission of one of the named insureds shall
not reduce or avoid coverage to the other named insureds; and shall afford coverage for all claims
based on acts, omissions, injury and damage, which claims occurred or arose (or the onset of which
occurred or arose) in whole or in part during the policy period. Tenant shall also maintain
workers’ compensation insurance in accordance with applicable law and employers’ liability
insurance with coverage no less than that customarily maintained by similar employers in the area.

          9.2 Landlord’s  Insurance. If at any time during the Term the amount or coverage of any
insurance which Tenant is required to carry hereunder is, in Landlord’s absolute discretion, less
than the amount or type of insurance coverage that Landlord believes appropriate, Landlord shall
have the right to obtain such other or additional insurance as Landlord believes appropriate
(“Other Insurance), and Tenant shall pay the cost of such insurance as Additional Rent hereunder,
to the extent the cost of Other Insurance required under this Lease and under all Other Leases (as
defined in Paragraph 13.1(b) hereof)

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does not exceed ten thousand dollars ($10,000) per year, in the aggregate.

          9.3 Policies. Tenant shall furnish to Landlord on the date of this Lease and
thereafter within thirty (30) days prior to the expiration of each such policy, certificates of
insurance issued by the insurance carrier of each policy of insurance carried by Tenant pursuant
hereto showing that all premiums have been paid for the full policy period. Each certificate shall
expressly provide that such policies shall not be cancellable or subject to reduction of coverage
or otherwise be subject to modification except after thirty (30) days’ prior written notice to the
parties named as insureds herein. Landlord, Landlord’s successors and assigns and any nominee of
Landlord holding any interest in the Leased Premises, including the holder of any fee mortgage,
shall be named as additional insureds under each policy of insurance maintained by Tenant. All
insurance policies carried by Tenant pursuant to this Article IX shall be issued by insurance
companies with a rating of “Good” or better as rated in Best’s Insurance Guide. Any deductible
amounts under any insurance policies required hereunder shall be subject to Landlord’s prior
written approval. If Tenant shall fail to procure any insurance required under this Lease or to
deliver the certificates required under this Paragraph 9.3 Landlord may, at its option and in
addition to Landlord’s other remedies in the event of a default by Tenant hereunder, procure such
insurance for the account of Tenant, and the cost thereof shall be paid to Landlord as additional
rent on demand.

          9.4 Release and Waiver of Subrogation. The parties hereto release each other, and
their respective authorized representatives, from any claims for injury to any persons or damage to
property that are caused by or result from risks insured against under any insurance policies
carried by the parties and in force at the time of such damage, but only to the extent such claims
are covered by such insurance. This release shall be in effect only so long as the applicable
insurance policies contain a clause to the effect that this release shall not affect the right of
the insured to recover under such policies. Each party shall cause each insurance policy obtained
by it to provide that the insurance company waives all rights of recovery by way of subrogation
against either party in connection with any damage covered by such policy.

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ARTICLE X

LIMITATION ON LANDLORD’S

LIABILITY AND INDEMNITY

     10.1 Limitation on Landlord’s Liability. Except for loss proximately caused by
Landlord’s active negligence or willful misconduct, and then only to the extent such loss is not
covered by insurance actually carried or required to be carried pursuant to this Lease, Landlord
shall not be liable to Tenant, nor shall Tenant be entitled to terminate this Lease or to any
abatement of rent, for any injury to Tenant, its agents, employees, contractors or invitees;
damage to Tenant’s property; or loss to Tenant’s business resulting from any cause, including
without limitation any (i) failure or interruption of any HVAC or other utility system or service;
(ii) governmental regulation, including a rationing or other control of utility services or use of
the Leased Premises; (iii) penetration of water into or onto any portion of the Leased Premises
through roof leaks or otherwise; or (iv) the presence in, on, under or about the Leased Premises of
any hazardous or toxic substances, materials or wastes.

     10.2 Indemnification of Landlord. Tenant shall hold harmless, indemnify and defend
Landlord, and its employees, agents and contractors, with competent counsel reasonably satisfactory
to Landlord, from all liability, penalties, losses, damages, costs, expenses, causes of action,
claims and/or judgments arising by reason of any death, bodily injury, personal injury or property
damage (i) resulting from any cause or causes whatsoever (other than the active negligence or
willful misconduct of Landlord, any Lender or any agent of Landlord or Lender) occurring in or
about or resulting from an occurrence in or about the Leased Premises, or (ii) resulting from the
negligence or willful misconduct of Tenant, its agents, employees and contractors, wherever the
same may occur, or (iii) resulting from any failure by Tenant to perform and observe its covenants
and obligations under this Lease. The provisions of this paragraph shall survive the expiration
or sooner termination of this Lease with respect to any claims or liability occurring prior to such
expiration or sooner termination.

ARTICLE XI

DAMAGE TO LEASED  PREMISES

     11.1 Duty To Restore. If the Leased Premises are damaged by any casualty after
the Commencement Date, Tenant

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shall restore fully the Leased Premises to the condition existing prior to such casualty (unless
the Lease is terminated pursuant to Paragraph 11.2) and insurance proceeds relating to such damage
shall be used in the restoration of the Leased Premises; provided that, so long as the Existing
Mortgage is in effect, such proceeds shall be paid to the then current holder of the Existing
Mortgage and applied in accordance with the terms of Section 1.09(a) thereof. If this Lease is
not so terminated, then upon the issuance of all necessary governmental permits, Tenant shall
commence and diligently prosecute to completion the restoration of the Leased Premises, to the
extent then allowed by Law, to substantially the same condition as that existing immediately prior
to such damage.

          11.2 Tenant’s Right To Terminate.

          (a) If any of the following occurs, Tenant shall have the option to terminate this Lease,
which option may be exercised only by delivery to Landlord of a written notice of election to
terminate within thirty (30) days after such occurrence:

     (i) The Leased Premises are damaged by any casualty and restoration cannot be
substantially completed within three hundred sixty (360) days after the date of such damage
(as determined by an engineer selected by Tenant and approved by Landlord and any Lender,
which approval shall not be unreasonably withheld); or

     (ii) The Leased Premises are damaged by any casualty within twelve (12) months of
the last day of the Lease Term or any proper extension thereof and the restoration cannot
be substantially completed within one hundred eighty (180) days after the date of such
damage (as determined by an engineer selected by Tenant and approved by Landlord and any
Lender, which approval shall not be unreasonably withheld).

          (b) As a condition precedent to termination of the Lease pursuant to this Paragraph 11.2, all
insurance proceeds available from insurance carried by Tenant which covers loss to property that is
Landlord’s property or would become Landlord’s property on termination of this Lease shall be paid
to and become the property of Landlord (subject to the terms of any first mortgage held by a
Lender), and, if such insurance proceeds are insufficient to restore the Leased Premises, Tenant
shall pay the amount of such deficiency to Landlord, subject to applicable provisions of the
Existing Mortgage.

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     11.3 No Abatement of Rent. There shall be no abatement of Base Monthly Rent or
other sums due hereunder, irrespective of any event of damage to the Leased Premises, unless and
until this Lease shall have terminated as a result of such damage.

ARTICLE XII

CONDEMNATION

     12.1 Definitions. As used in this Lease, the following terms shall have the
following meanings:

     (a) The term “Condemnation” shall mean (i) any taking by the exercise of the power of eminent
domain, whether by legal proceedings or otherwise, by any person or entity having the legal power
to do so, (ii) a voluntary sale or transfer by Landlord to any condemnor, either under threat of
condemnation or while legal proceedings for condemnation are pending, or (iii) any taking by
inverse condemnation.

     (b) The term “substantially all” shall mean a portion of the Leased Premises (that is, less
than all of the Leased Premises) which leaves remaining a balance that may not be economically
operated for the purpose for which the Leased Premises was operated prior to the Condemnation in
question, in Tenant’s reasonable judgment.

     (c) The term “less than substantially all” shall mean a portion of the Leased Premises that is
not all or substantially all (as defined above) of the Leased Premises.

     (d) The term “Date of Taking” shall mean the date the condemnor has the right to possession of
the property being condemned.

     (e) The term “Award” shall mean all compensation, sums, or anything of value awarded, paid or
received on a total or partial Condemnation.

     12.2 Total Condemnation. If all or substantially all of the Leased Premises are
taken by Condemnation, this Lease shall terminate on the Date of Taking.

     12.3 Partial Condemnation. If less than substantially all of the Leased Premises
are taken by Condemnation, this Lease shall terminate as to the portion taken and otherwise remain
in full force and effect, except that the amount of Base Monthly Rent due hereunder, from time to
time, shall be reduced, from and after the Date of Taking in

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the same proportion as the Award bears to the fair market value of the Leased Premises on the Date
of Taking. Landlord shall have no obligation to restore the Leased Premises, or otherwise
compensate Tenant (except through such rent reduction), in the event of such partial Condemnation.

     12.4 Temporary Taking. If all or substantially all of the Leased Premises is
temporarily taken by Condemnation for a period which either exceeds one (1) year or which extends
beyond the expiration of the Lease Term, then Landlord and Tenant shall each independently have the
option to terminate this Lease, effective on the date possession is taken by the condemnor. If
any portion of the Leased Premises is temporarily taken by Condemnation for a period of less than
one year, this Lease shall continue in full force and effect with no abatement of rent.

     12.5 Division of Condemnation Award. Any Award made as a result of any Condemnation
of the Leased Premises shall belong to and be paid to Landlord (except that any Award for partial
Condemnation described in Section 12.3 hereof shall (subject to the terms of any first mortgage
held by a Lender) be paid to Landlord net of reasonable restoration expenses), and Tenant hereby
assigns to Landlord all of its right, title and interest in any such award; provided, however, that
Tenant shall be entitled to receive any condemnation award that is made directly to Tenant
expressly (i) for the taking of personal property or Trade Fixtures belonging to Tenant, (ii) for
the interruption of Tenant’s business or its moving costs, and/or (iii) for any temporary taking
where this Lease is not terminated as a result of such taking. The rights of Landlord and Tenant
regarding any Condemnation shall be determined as provided in this Article, and each party hereby
waives the provisions of any law allowing either party to petition a court to terminate this Lease
in the event of a partial taking of the Leased Premises.

ARTICLE XIII

 DEFAULT AND REMEDIES

     13.1 Events of Default. Tenant shall be in default of its obligations under this
Lease if any of the following events shall occur:

     (a) Tenant shall have failed to pay Base Monthly Rent, Additional
Rent, or any other rent or payment due Landlord on the date due hereunder;
provided that Landlord shall give Tenant notice of such failure and three (3)
days

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to cure such failure; provided further that, if Landlord gives any such notice, from time to time,
then for the one (1) year period thereafter Tenant shall be in default immediately upon any
failure to pay any such amount due Landlord hereunder on the date such payment is due; or

     (b) Any default by the Tenant shall have occurred under any other Industrial Real Property
Lease entered into between Landlord and Tenant or any affiliate of Tenant (each an “Other Lease”),
unless at the time of such default either
(i) the original Landlord (or the holder of the Existing Mortgage or a successor
thereunder, including a purchaser at foreclosure or grantee of a deed in lieu of
foreclosure) is either (A) no longer the owner of the fee estate in the Leased Premises,
or (B) no longer the owner of the fee estate in the premises leased under such other
lease, or
(ii) the Continuing Lease Guaranty by Guarantor guarantying such Other Lease shall have terminated
in accordance with the terms of paragraph 6 thereof; or

     (c) Tenant shall have failed to perform any term, covenant, or condition of this Lease except
those requiring the payment of Base Monthly Rent, Additional Rent, or any other rent or payment due
Landlord, and Tenant shall have failed to cure such failure within ten (10) days after written
notice from Landlord specifying the nature of such breach, provided, however, that if any such
breach cannot reasonably be cured within such ten (10) day period then Tenant may have a reasonable
period to cure such breach provided, however, that Tenant commences to cure the breach within said
ten (10) day period and thereafter diligently pursues such cure to completion; or

     (d) Tenant shall have made a general assignment of its assets for the benefit of its
creditors; or

     (e) Tenant shall have sublet the Leased Premises or assigned its interest in the Lease in
violation of the provisions contained in Article XIV, whether voluntarily or by operation of law;
or

     (f) Tenant shall have permitted the sequestration or attachment of, or execution on, or the
appointment of a custodian or receiver with respect to, all or any substantial part of the property
of Tenant or on any property essential to the conduct of Tenant’s business and Tenant shall have
failed to obtain a return or release of such property within thirty (30) days thereafter, or prior
to sale pursuant to such sequestration, attachment or levy, whichever is earlier; or

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          (g) Tenant shall have abandoned the Leased Premises; or

          (h) A court shall have made or entered any decree or order with respect to Tenant or Tenant
shall have submitted to or sought a decree or order (or a petition or pleading shall have been
filed in connection therewith) which: (i) grants or constitutes (or seeks) an order for relief, appointment
of a trustee, or confirmation of a reorganization plan under the bankruptcy laws of the United States;
(ii) approves as properly filed (or seeks such approval of) a petition seeking liquidation or
reorganization under said bankruptcy laws or any other debtor’s relief law or statute of the United
States or any state thereof; or (iii) other-wise directs (or seeks) the winding up or liquidation
of Tenant; and such petition, decree or order shall have continued in effect for a period of thirty
(30) or more days.

          13.2 Landlord’s Remedies. In the event of any default by Tenant, Landlord shall
have the following remedies, in addition to all other rights and remedies provided by any Law or
otherwise provided in this Lease, to which Landlord may resort cumulatively, or in the alternative:

          (a) Landlord may, at Landlord’s election, keep this Lease in effect and enforce all of its
rights and remedies under the Lease, including (i) the right to recover the rent and other sums as
they become due by appropriate legal action, and (ii) the right to invoke the remedies of
injunctive relief and specific performance to compel Tenant to perform its obligations under this
Lease.

          (b) Landlord may, at Landlord’s election, terminate this Lease and re-enter the Leased
Premises by giving Tenant written notice of termination, in which event this Lease shall terminate
on the date set forth for termination in such notice. Any termination under this subparagraph
shall not relieve Tenant from the payment of any sums then due Landlord or from any claim against
Tenant for damages or rent previously accrued or then accruing. In no event shall any act or
omission by Landlord, in the absence of a written election by Landlord to terminate this Lease,
constitute a termination of this Lease, including, without limitation:

     (i) Appointment of a receiver or keeper in order to protect Landlord’s interest
hereunder;

     (ii) Consent or refusal to consent to any subletting of the Leased Premises or
assignment of this Lease by Tenant, whether pursuant to the provisions hereof or
otherwise; or

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     (iii) Any other action by Landlord or Landlord’s agents intended to mitigate the
adverse effects of any breach of this Lease by Tenant, including without limitation any
action taken to maintain and preserve the Leased Premises or any action taken to relet the
Leased Premises or any portions thereof, for the account of Tenant and in the name of
Tenant.

          (c) In the event Tenant breaches this Lease and abandons the Leased Premises, this Lease shall
not terminate unless Landlord gives Tenant written notice of its election to so terminate this
Lease. No act by or on behalf of Landlord intended to mitigate the adverse effect of such
breach, including those described by subparagraphs (b)(i), (ii) and (iii) immediately preceding,
shall constitute a termination of Tenant’s right to possession unless Landlord gives Tenant written
notice of termination. Should Landlord not terminate this Lease by giving Tenant written notice,
Landlord may enforce all its rights and remedies under this Lease, including the recovery of rent
as it becomes due under the Lease.

          (d) In the event Landlord terminates this Lease, Landlord shall be entitled, at Landlord’s
election, to damages as provided under applicable law or as set forth in these subparagraphs
13.2(d)(i)-(iii). For purposes of computing such damages (i) an interest rate of fifteen percent
(15%) per annum (or the maximum rate allowed by law if such rate is less than 15% per annum) shall
be used where permitted, and (ii) rent due under this Lease shall include Base Monthly Rent,
Additional Rent and all other rent or other charges payable by Tenant hereunder, prorated on a
monthly basis where necessary to compute such damages. Such damages shall include without
limitation:

     (i) The worth at the time of award of the amount by which the unpaid rent for the
balance of the term after the time of award exceeds the amount of such rental loss that
Tenant proves could be reasonably avoided, computed by discounting such amount at the
discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one
percent (1%); and

     (ii) Any other amount necessary to compensate Landlord for all detriment proximately
caused by Tenant’s failure to perform Tenant’s obligations under this Lease or for expenses
incurred by Landlord in performing Tenant’s obligations under this Lease, or which in the
ordinary course of things would be likely to result therefrom,

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including, without limitation, the following: (a) expenses for cleaning, repairing or
restoring the Leased Premises; (b) expenses for altering, remodeling or otherwise
improving the Leased Premises for the purpose of reletting, including installation of
leasehold improvements (whether such installation be funded by a reduction of rent, direct
payment or allowance to a new tenant, or otherwise); (c) broker’s fees, advertising costs
and other expenses of reletting the Leased Premises; (d) costs of carrying the Leased
Premises, such as taxes, insurance premiums, utilities and security precautions; (e)
expenses in retaking possession of the Leased Premises; (f) attorneys’ fees and court
costs incurred by Landlord in retaking possession of the Leased Premises and in reletting
the Leased Premises; and (g) the portion of any brokerage commission paid by Landlord in
procuring this Lease attributable to the remaining balance of the Lease Term.

     (iii) For purposes of this Article, the rent due for any calendar month after which
Tenant has terminated the operation of its business as herein specified or has abandoned
the Leased Premises shall be deemed to be the average monthly rent, including the Base
Monthly Rent and all additional rent hereunder, which were due for the twelve (12) month
period immediately prior to such termination or for such shorter period of time as this
Lease shall have been in effect.

          (e) Nothing in this paragraph shall limit Landlord’s right to indemnification from Tenant as
provided in Paragraph 10.2.

          13.3 Landlord’s Right To Cure. All covenants and agreements to be kept or
performed by Tenant under any of the terms of this Lease shall be performed by Tenant at Tenant’s
sole cost and expense and without any abatement of rent. If Tenant shall fail to pay any sum of
money required to be paid by it hereunder (other than Monthly Rent and Additional Rent payable
under this Lease) or shall fail to perform any other act on its part to be performed hereunder
(whether such payment or performance is due to Landlord or any third party), Landlord may, but
shall not be obliged to, and without waiving any default of Tenant or releasing Tenant from any
obligations to Landlord hereunder, make any such payment or perform any such other act on Tenant’s
part to be made or performed as in this Lease provided (including but not limited to Tenant’s
obligations pursuant to Paragraphs 4.2, 6.1 and 6.2 hereof). All sums so paid by

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Landlord and all necessary incidental costs, together with interest thereon at the rate of fifteen
percent (15%) per annum (or the maximum rate allowed by law if such rate is less than 15% per
annum) from the date of such payment by Landlord, shall be paid to Landlord forthwith on demand,
and Landlord shall have (in addition to any other right or remedy of Landlord) the same rights and
remedies (including, but not limited to, Landlord’s remedies under Paragraph 13.5 hereof) in the
event of nonpayment thereof by Tenant as in the case of default by Tenant in the payment of rent.

          13.4 Waiver. One party’s consent to or approval of any act by the other party
requiring the first party’s consent or approval shall not be deemed to waive or render unnecessary
the first party’s consent to or approval of any subsequent similar act by the other party. The
receipt by Landlord of any rent or payment with or without knowledge of the breach of any other
provision hereof shall not be deemed a waiver of any such breach unless such waiver is in writing
and signed by Landlord. No delay or omission in the exercise of any right or remedy accruing to
either party upon any breach by the other party under this Lease shall impair such right or remedy
or be construed as a waiver of any such breach theretofore or hereafter occurring. The waiver by
either party of any breach of any provision of this Lease shall not be deemed to be a waiver of any
subsequent breach of the same or any other provisions herein contained.

          13.5 Late Charge. In the event any amount of Base Monthly Rent, Additional Rent or
any other payment due Landlord hereunder shall remain unpaid for five (5) calendar days after such
amount becomes due, Tenant shall pay Landlord, without notice or demand, a late charge equal to
five percent (5%) of such overdue amount to partially compensate Landlord for its administrative
costs in connection with such overdue payment.

ARTICLE XIV

ASSIGNMENT AND SUBLETTING

          14.1 By Tenant. The following provisions shall apply to any assignment or
subletting by Tenant:

          (a) Tenant shall not sublet the Leased Premises or assign or encumber its interest in this
Lease, whether voluntarily or by operation of law without Landlord’s prior written consent, which
consent shall not be unreasonably withheld or delayed. Without limiting the generality of the
foregoing, (i) it shall be reasonable for Landlord to withhold such consent if, on the date such
consent is requested,

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Tenant is in default hereunder, (ii) unless the proposed assignee is substantially more solvent
than Tenant and Guarantor (on a consolidated basis), it shall be reasonable for Landlord to
withhold such consent if, on the date Landlord’s consent is requested, the Guaranty is no longer in
full force and effect or if, on the date Landlord’s consent is requested, the Guaranty provides
materially less security to Landlord than it provided on the Commencement Date, in Landlord’s
reasonable judgment, and (iii) it shall be unreasonable for Landlord to withhold such consent as to
an assignment to an affiliate of Tenant or a deemed assignment under paragraph (e) below unless, in
either case, the Guaranty is no longer in full force and effect or Tenant is in monetary or
material nonmonetary default hereunder. Any attempted subletting, assignment or encumbrance
without Landlord’s prior written consent shall be voidable and, at Landlord’s election, shall
constitute a default by Tenant hereunder.

          (b) Tenant agrees to reimburse Landlord for all reasonable costs and attorneys’ fees incurred
by Landlord in conjunction with the processing and documentation of any such requested assignment,
subletting, transfer, change of ownership or hypothecation of the Leased Premises or Tenant’s
interest in this Lease. No such assignment, subletting, transfer, change of ownership or
hypothecation shall be effective until (i) Tenant shall have paid such costs and fees; (ii) each
such assignee or transferee (excluding a subtenant) shall have agreed in writing for the benefit of
Landlord to assume, to be bound by, and to perform the obligations of this Lease to be performed by
Tenant, and (iii) an executed copy of such sublease, assignment, encumbrance, or other agreement of
transfer shall have been delivered to Landlord.

          (c) Consent by Landlord to one or more assignments or encumbrances of this Lease or to one or
more sublettings of the Leased Premises shall not be deemed to be a consent to any subsequent
assignment, encumbrances or subletting.

          (d) No subletting or assignment, even with the consent of Landlord, shall relieve Tenant of
its personal and primary obligation to pay the rent and to perform all of the other obligations to
be performed by Tenant hereunder. The acceptance of rent by Landlord from any person shall not be
deemed to be a waiver by Landlord of any provision of this Lease or to be a consent to any
assignment or subletting.

          (e) Subject to Paragraph 14.1(a) above, if Tenant is a corporation, any dissolution, merger,
consolidation or

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other reorganization of Tenant, or the sale or other transfer in the aggregate over the Lease
Term of a controlling percentage of the capital stock of Tenant, shall be deemed a voluntary
assignment of Tenant’s interest in this Lease. The phrase “controlling percentage” means the
ownership of and the right to vote stock possessing more than fifty percent (50%) of the total
combined voting power of all classes of Tenant’s capital stock issued, outstanding and entitled to
vote for the election of directors. If Tenant is a partnership, a withdrawal or change,
voluntary, involuntary or by operation of law, of any general partner, or the dissolution of the
partnership, shall be deemed a voluntary assignment.

          (f) If Tenant transfers or assigns this Lease or all or part of its interest in this Lease
in accordance with this Article, then Tenant shall pay to Landlord fifty percent (50%) of all net
consideration received by Tenant as a result of such assignment as and when received by Tenant. If
Tenant Sublets all or part of the Leased Premises in accordance with this Article, then Tenant
shall pay to Landlord fifty percent (50%) of the positive difference, if any, between (i) all rent
and other consideration paid by the subtenant to Tenant less (ii) all costs incurred by Tenant
incident to the sublease agreement (including an amount equal to the resulting product of the rent
payable hereunder to Landlord by Tenant during the time period covered by such payments by the
subtenant times a fraction whose numerator is the leasable area of that portion of the Leased
Premises so sublet and whose denominator is Tenant’s gross leasable area). Said consideration
shall be payable to Landlord on the same basis, whether periodic or in lump sum, that such
consideration is paid to Tenant by its subtenant, and, in calculating Landlord’s share of any
periodic payments, all costs incurred by Tenant incident to the sublease agreement (other than the
payment of rent to Landlord hereunder) shall be amortized over the term of the sublease. Landlord
shall have the right to require Tenant to certify the accuracy of the amount of compensation so
paid and to conduct annual independent audits thereof at Landlord’s sole cost.

          14.2 By Landlord. Landlord and its successors in interest shall have the
right to transfer their interest in the Leased Premises and this Lease at any time and to any
person or entity. In the event of any conveyance of the Leased Premises and assignment by
Landlord of this Lease to another, the Landlord originally named herein (and in the case of any
subsequent transfer, the transferor), from the date of such transfer, (i) shall be automatically
relieved, without any further act by any person or entity, of all liability for the performance of
the obligations of the Landlord hereunder which may accrue after the date of such

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transfer, and (ii) shall be relieved of all liability for the performance of the obligations of the
Landlord hereunder which have accrued before the date of transfer if its transferee agrees to
assume and perform all such obligations of the Landlord hereunder and such transferee is not
substantially less solvent than Landlord. In the event the Landlord’s interest in the Leased
Premises is transferred to multiple transferees, such transferees shall designate, by a written
notice to Tenant delivered upon such transfer, the name and address of a single person to whom all
rent and notices to be paid or given by Tenant hereunder shall be addressed and who shall be the
sole authorized party to give notices to Tenant hereunder; Tenant’s payment of rent to such
designated person shall satisfy Tenant’s obligation to pay rent to Landlord; Tenant’s delivery of
notices to such designated person shall constitute notice to Landlord and Tenant may rely upon
notices from such designated person as being notice from Landlord. After the date of any such
transfer, the term “Landlord” as used herein shall mean the transferee of such interest in the
Leased Premises.

ARTICLE XV

TERMINATION

          15.1 Surrender of the Leased Premises.
Immediately prior to the Expiration Date or upon the earlier termination of this Lease, Tenant
shall remove all Tenant’s Trade Fixtures and other personal property and vacate and surrender the
Leased Premises to Landlord in the same condition as existed at the Commencement Date, reasonable
wear and tear excepted. Without limiting the generality of the foregoing, Tenant shall surrender
the Leased Premises with all interior walls cleaned, all carpets shampooed and cleaned, all HVAC
equipment within the Leased Premises in operating order and in good repair, and all floors cleaned,
all to the reasonable satisfaction of Landlord. If Landlord so requests, Tenant shall, at its
sole cost and prior to the expiration or earlier termination of this Lease, remove any Leasehold
Improvements not constructed or installed in compliance with Paragraph 5.1 hereof designated by
Landlord, and repair all damage caused by such removal. If the Leased Premises are not so
surrendered at the termination of this Lease, Tenant shall be liable to Landlord for all costs
incurred by Landlord in returning the Leased Premises to the required condition, plus interest,
from the date of demand for payment of such costs to the date paid, on all costs incurred at the
rate of fifteen percent (15%) per annum (or the maximum rate allowed by law if such rate is less
than 15% per annum). Tenant shall indemnify Landlord against loss or liability resulting from
delay by Tenant in so

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surrendering the Leased Premises, including, without limitation, any claims made by any succeeding
tenant or losses to Landlord due to lost opportunities to lease to succeeding tenants.

          15.2 Holding Over. Unless earlier terminated in accordance with this Lease
or duly extended pursuant to Paragraph 16.10 hereof, this Lease shall terminate without further
notice on the Expiration Date. Any holding over by Tenant after termination of the Lease shall
not constitute a renewal or extension of the Lease or give Tenant any rights in or to the Leased
Premises except as expressly provided in this Lease. Any holding over after such expiration with
the consent of Landlord shall be construed to be a tenancy from month to month on the same terms
and conditions herein specified insofar as applicable except that Base Monthly Rent shall be
increased to an amount equal to two hundred percent (200%) of the Base Monthly Rent required during
the last month prior to such termination.

ARTICLE XVI

GENERAL PROVISIONS

          16.1 Financial Information. Tenant shall furnish
to Landlord:

          (a) As soon as available and in any event within 45 days after the end of each quarterly
accounting period in each fiscal year of Tenant, copies of a consolidated balance sheet of Tenant
and its consolidated subsidiaries as of the last day of such quarterly accounting period, and
copies of the related consolidated statements of income and of changes in shareholders’ equity and
in financial position of Tenant and its consolidated subsidiaries for such quarterly accounting
period and for the elapsed portion of the current fiscal year ended with the last day of such
quarterly accounting period, all in reasonable detail and with appropriate notes, if any, and
stating in comparative form the figures for the corresponding dates and periods in the previous
fiscal year, all prepared in accordance with generally accepted accounting practice consistently
applied, certified as complete and correct in all material respects by the chief financial officer
of Tenant (subject to year-end audit adjustments), and otherwise in form satisfactory to Landlord;

          (b) As soon as available and in any event within 90 days after the end of each fiscal year of
Tenant, copies of a consolidated balance sheet of Tenant and its consolidated subsidiaries as of
the end of such fiscal year, and

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copies of the related consolidated statements of income and of changes in shareholders’ equity and
in financial position of Tenant and its consolidated subsidiaries for such fiscal year, all in
reasonable detail and with appropriate notes, if any, and all prepared in accordance with
generally accepted accounting practice consistently applied and stating in comparative form the
corresponding figures as of the end of and for the previous fiscal year, and accompanied by an
opinion or report thereon, in scope and substance satisfactory to Landlord, by Arthur Young &
Company or such other firm of independent certified public accountants of recognized standing in
the financial community as may be selected by Tenant and reasonably acceptable to Landlord, and
otherwise in a form satisfactory to Landlord;

          (c) Concurrently with each of the financial statements furnished pursuant to subsection (a) or
(b) above, a certificate signed by the chief financial officer of Tenant, to the effect that in the
opinion of such officer, based upon a review made under his or her supervision, Tenant has
performed and observed all of, and is not in default in the performance or observance of any of,
its obligations under this Lease (or, if such be not the case, specifying all such defaults and
failures, and the nature thereof, of which such officer may have knowledge and the action proposed
to be taken in respect thereof);

          (d) Copies of all regular and periodic reports or other reports which Tenant or any subsidiary
shall make or be required to file with the Securities and Exchange Commission or any other federal
or state regulatory agency or with any municipal or other local body, and such other information
relating to the business, affairs and financial condition of Tenant and its subsidiaries as
Landlord may from time to time reasonably request.

          16.2 Landlord’s Right To Enter. Tenant shall permit
Landlord and its agents to enter the Leased Premises at all reasonable times, upon not less than
one (1) business day’s notice, for the purpose of (i) inspecting the same; (ii) posting notices of
nonresponsibility; (iii) exhibiting the Leased Premises to prospective purchasers, lenders or
tenants; (iv) determining whether Tenant is performing all its obligations hereunder; (v)
discharging Tenant’s obligation (including the obligations to repair and maintain the Leased
Premises) when Tenant has failed to do so after written notice from Landlord; and/or (vi) placing
upon the Leased Premises ordinary “for lease” or “for sale” signs. Landlord shall not use, copy or
publish any confidential or proprietary information of Tenant’s obtained by Landlord in any such
entry upon the Leased Premises and Landlord shall maintain all such information in confidence.

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          16.3 Subordination. This Lease is subject and subordinate to any underlying ground
leases, mortgages, charges and deeds of trust which affect the Leased Premises and are of public
record as of the Commencement Date, and to all renewals, modifications, consolidations,
supplements, replacements and extensions thereof. However, if the lessor under any such lease or
any Lender holding such mortgage, charge or deed of trust shall advise Landlord that it desires or
requires this Lease to be prior and superior thereto, then, upon written request of Landlord to
Tenant, Tenant shall promptly execute, acknowledge and deliver any and all documents or instruments
which Landlord or such lessor or Lender deems necessary or desirable to make this Lease prior
thereto. At Landlord’s election, this Lease shall become and thereafter remain subject and
subordinate to any and all future mortgages, charges or deeds of trust affecting the Leased
Premises which may hereafter be executed and placed of public record after the Commencement Date,
or any renewals, modifications, consolidations, supplements, replacements or extensions thereof,
for the full amount of all advances made or to be made thereunder and without regard to the time or
character of such advances, so long as the Lender holding the security instrument to which this
Lease is to be subordinated agrees that it will recognize Tenant’s rights under this Lease and not
disturb its quiet possession of the Leased Premises so long as Tenant is not in default hereunder.
Tenant agrees, within ten (10) business days after Landlord’s written request therefor, to
execute, acknowledge and deliver to Landlord any and all documents or instruments requested by
Landlord or such Lender as may be reasonably necessary or proper to assure the subordination of
this Lease to any such mortgage, charge or deed of trust; provided that such documents and
instruments shall not impose upon Tenant obligations other than those set forth in this Lease and
further provided that Tenant has received or contemporaneously receives a written document in form
and substance reasonably sufficient to evidence such Lender’s agreement to recognize Tenant’s
rights as above provided.

          16.4 Tenant’s Attornment. Tenant shall attorn (i) to any purchaser of the
Leased Premises at any foreclosure sale or private sale conducted pursuant to any security
instrument encumbering the Leased Premises, (ii) to any grantee or transferee designated in any
deed given in lieu of foreclosure, or (iii) to the lessor under any underlying ground lease in
effect on the date hereof should such ground lease be terminated.

          16.5 Estoppel Certificates. At all times during the Lease term, Tenant
agrees, following any request by Landlord (which requests Landlord agrees not to make more

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frequently
than four (4) times in any twelve (12) month period), to promptly execute and
deliver to Landlord an estoppel certificate (i) certifying that this Lease is unmodified and in
full force and effect, or, if modified, stating the nature of such modification and certifying that
this Lease, as so modified, is in full force and effect, (ii) stating the date to which the rent
and other charges are paid in advance, if any, (iii) acknowledging that there are not, to Tenant’s
knowledge, any uncured defaults on the part of Landlord hereunder, or if there are uncured defaults
on the part of Landlord, stating the nature of such uncured defaults, and (iv) certifying such
other information about the Lease as may be reasonably required by Landlord. Tenant’s failure to
deliver an estoppel certificate (or other response to Landlord’s request therefor, if such
certificate cannot practicably be given) within ten (10) business days after delivery of Landlord’s
request therefor (unless such request was not actually received by Tenant) shall be a conclusive
admission by Tenant that, as of the date of the request for such statement, (i) this Lease is
unmodified except as may be represented by Landlord in said request and is in full force and
effect, (ii) there are no uncured defaults in Landlord’s performance, and (iii) no rent has been
paid in advance.

          16.6 Force Majeure. Any prevention, delay or stoppage due to strikes, lockouts,
inclement weather, labor disputes, inability to obtain labor, materials, fuels or reasonable
substitutes therefor, governmental restrictions, regulations, controls, action or inaction, civil
commotion, fire or other acts of God, and other causes beyond the reasonable control of the party
obligated to perform (except financial inability) shall excuse the performance, for a period equal
to the period of any said prevention, delay or stoppage, of any obligation hereunder except the
obligation of Tenant to pay rent or any other sums due hereunder.

          16.7 Notices. Any notice required or desired to be given regarding this Lease shall
be in writing and shall be personally served, or in lieu of personal service may be given by mail.
If served by mail, such notice shall be deemed to have been given (i) on the fifth (5th) business
day after mailing if such notice was deposited in the Canadian mail, certified and postage prepaid,
addressed to the party to be served at its address first above set forth and (ii) in all other
cases when actually received. Either party may change its address by giving notice of same in
accordance with this paragraph.

          16.8 Attorneys’ Fees. In the event either party shall bring any action or
legal proceeding for an alleged breach of any provision of this Lease, to recover rent, to

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terminate this Lease or to otherwise enforce, protect or establish any term or covenant of this
Lease or right of either party, the prevailing party shall be entitled to recover as a part of such
action or proceedings, or in a separate action brought for that purpose, all costs and expenses,
including reasonable attorneys’ fees, incurred in such action or proceedings and in any appeal in
connection therewith.

          16.9
Corporate Authority. If Tenant is a corporation (or a partnership), each
individual executing this Lease on behalf of said corporation (or
partnership) represents and
warrants that he is duly authorized to execute and deliver this Lease on behalf of said corporation
in accordance with the by-laws of said corporation (or partnership in accordance with the
partnership agreement of said partnership) and that this Lease is binding upon said corporation
(or partnership) in accordance with its terms. If Tenant is a corporation Tenant shall, within
thirty (30) days after execution of this Lease, deliver to Landlord a certified copy of the
resolution of the board of directors of said corporation authorizing or ratifying the execution of
this Lease. Each individual executing this Lease on behalf of Landlord warrants that he is duly
authorized to execute and deliver this Lease on behalf of Landlord in accordance with the
partnership agreement of Landlord and that this Lease is binding upon Landlord in accordance with
its terms. Landlord shall within thirty (30) days after execution of this Lease, deliver to
Tenant a certified copy of a resolution of the board of directors of the general partner of
Landlord authorizing or ratifying the execution of this Lease.

          16.10 Option To Extend. Provided there exists no uncured default by Tenant under
this Lease, Tenant shall have the option to extend the Lease Term for three (3) successive periods
of five (5) years each (each such period is herein referred to as an “Extension Period”). Tenant
may exercise its option with respect to the first extension period by written notice to the
Landlord given not later than nine (9) months prior to the Expiration Date and with respect to each
succeeding Extension Period not later than nine (9) months prior to expiration of the Extension
Period then in effect. Each such extension shall be upon all the same terms and conditions
specified in this Lease except that Base Monthly Rent shall be adjusted as provided in paragraph
16.11 hereof.

          16.11 CPI Rent Adjustment. Commencing with the first CPI Adjustment Date and
thereafter on each successive CPI Adjustment Date the Base Monthly Rent payable pursuant

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to paragraph 3.1 hereof shall be subject to increase as follows:

          (a)
 Effective on each CPI Adjustment Date, the Base Monthly Rent shall be the sum of (i) the
Base Monthly Rent for the immediately preceding month payable under paragraph 3.1 hereof plus (ii)
the product obtained by multiplying such Base Monthly Rent by the percentage increase in the
Consumer Price Index measured from the last month for which the Consumer Price Index was published
immediately preceding the month ending 5 years prior to such CPI Adjustment Date to the last month
for which the Consumer Price Index is published immediately preceding the CPI Adjustment Date in
question. Notwithstanding the foregoing, in no event shall the Base Monthly Rent after any CPI
Adjustment Date be less than one hundred twenty percent (120%) nor more than one hundred
twenty-five percent (125%) of the Base Monthly Rent for the month immediately preceding such CPI
Adjustment Date.

          16.12 Brokerage Commissions. Tenant and Landlord each warrants to the other that
it has not had any dealings with any real estate brokers or salesmen or incurred any obligations
for the payment of real estate brokerage commissions or finder’s fees which would be earned or due
and payable by reason of the execution of this Lease.

          16.13 Termination by Exercise of Option. If this Lease is terminated pursuant to
its terms by the proper exercise of an option to terminate specifically granted to Landlord or
Tenant by this Lease, then this Lease shall terminate fifteen (15) days after the date the option
to terminate is properly exercised (unless another date is specified in that part of the Lease
creating the option, in which event the date so specified for termination shall prevail), the rent
and all other charges due hereunder shall be prorated as of the date of termination, and neither
Landlord nor Tenant shall have any further rights or obligations under this Lease except for those
that have accrued prior to the date of termination Notwithstanding anything to the contrary in
Section 10.1 hereof, Tenant acknowledges that it shall have no right to terminate this Lease, nor
any right to an abatement of rent, by reason of any act or omission by Landlord, Tenant’s sole
remedy for such act or omission being damages or injunctive relief.

          16.14 Guaranty. Tenant’s obligations under this Lease shall be guaranteed by Palco
Acquisition Company, a Delaware corporation (“Palco” or the “Guarantor”), pursuant to a Continuing
Lease Guaranty (the “Guaranty”) of even date herewith attached as Exhibit C hereto. Tenant shall
cause Guarantor to execute and deliver the Guaranty to Landlord on

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the date hereof. The Guaranty shall remain in full force and effect during the entire Lease Term
irrespective of any transfer or assignment of this Lease or any interest of Tenant therein or in
the Leased Premises.

          16.15 Memorandum of Lease. On the Commencement Date, Landlord and Tenant shall
execute, acknowledge and file for recordation a memorandum of this Lease substantially in the form
of Exhibit D attached hereto.

          16.16 Entire Agreement. This Lease, the Exhibits attached to this Lease (which by
this reference are incorporated herein), and the Guaranty are the entire agreement between the
parties respecting the Leased Premises. Except as otherwise provided in any addendum or
amendment to this Lease, Tenant acknowledges that neither Landlord nor Landlord’s agent(s) has made
any representation or warranty as to (i) whether the Leased Premises may be used for Tenant’s
intended use under existing Law or (ii) the suitability of the Leased Premises for the conduct of
Tenant’s business or the condition of any improvements located thereon. Tenant expressly waives
all claims for damage by reason of any statement, representation, warranty, promise or other
agreement of Landlord or Landlord’s agent(s), if any, not contained in this Lease or in any
addendum or amendment hereto. Except as otherwise provided herein, no subsequent change or
addition to this Lease shall be binding unless in writing and signed by the parties hereto.

          16.17 Miscellaneous. Should any provision of this Lease prove to be invalid or
illegal, such invalidity or illegality shall in no way affect, impair or invalidate any other
provision hereof, and such remaining provisions shall remain in full force and effect. Time is of
the essence with respect to the performance of every provision of this Lease. The captions used
in this Lease are for convenience only and shall not be considered in the construction or
interpretation of any provision hereof. Any executed copy of this Lease shall be deemed an
original for all purposes. This Lease shall, subject to the provisions as to assignment, apply
to and bind the respective heirs, successors, executors, administrators and assigns of Landlord and
Tenant. This Lease shall be construed and enforced in accordance with the laws of the Province of
Ontario. The language in all parts of this Lease shall in all cases be construed as a whole
according to its fair meaning, and not strictly for or against either Landlord or Tenant. When
the context of this Lease requires, the neuter gender includes

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the masculine, the feminine, a partnership or corporation or joint venture, and the singular
includes the plural.

          IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease with the intent to be
legally bound thereby, as of the date first above written.

	 	 	 

	Witnessed By:

	 	Landlord

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OAKVILLE,

ONTARIO

EXHIBIT
A

Part of Block K on Plan 844 (Town of Oakville), designated as Part 1 on a Plan of Survey of Record
in the said Office as 20R-4861 AND Part of Block I on Plan 844 (Town of Oakville), designated as
Part 35 on a Plan of Survey of Record in the said Office as 20R—4378, registered in the Land
Registry Office No. 20 for the Land Titles Division of Halton at Milton.

SUBJECT TO the rights in the nature of an easement or licence reserved in favour of LAURALEE FARMS
LIMITED, its successors and assigns, and its servants, workmen or agents, to enter upon the side
four feet and the rear ten feet of the lands and premises conveyed herein, at any time or times,
until the obligations of the Transferor as set out in the Subdivision Agreement between the said
Transferor and the Town of Oakville have been assumed by the Town of Oakville, in order to permit
the said Transferor to carry out the obligations imposed under its Subdivision Agreement with the
Town of Oakville, including, but without limiting the generality of the foregoing, the right to
undertake modifications and rectifications to the surface drainage features, and effect any
corrective measures required by the said Town of Oakville, without
such re-entry being deemed to be
a trespass.

To the intent that, for the period of time required until the date that the said Town of Oakville
assumes the obligations of the Transferor under the Subdivision Agreement for said Plan 844, the
burden of these covenants shall be annexed to and run with each and every part of the lands hereby
conveyed, and the benefit thereof shall be annexed and run with each and every part of the lands of
the said Transferor adjoining or near the lands hereby conveyed, including without limitations the
lands within the said Plan 844, as set out in Transfer 156560.

TOGETHER
WITH a right-of-way in common with others entitled thereto upon and over those parts of
Block I on said Plan 844, designated as Parts 12, 17 and 18 on 20R-4378, for the purposes of
constructing, maintaining and operating a railway industrial spur or siding, as set out in
Instrument 148160.

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TOGETHER
WITH a right-of-way over that part of Block M on said Plan 844, designated as Part 5 on
20R—3261, for the purposes and with the covenants as set out in Instrument 108541, as assigned by
Instruments 116047, 272713 and 283438.

TOGETHER WITH an easement in favour of VICTOR EQUIPMENT COMPANY OF CANADA LTD., its successors and
assigns, over that part of said Block K on Plan 844, designated as Part 3 on 20R—4861, to
construct, operate, maintain, replace and repair and to permit others to construct, operate,
maintain, replace and repair underground sewers, drains, pipes, conduits, wires and services
generally with such aboveground accesses, manholes, catch basins, hydrants, service boxes and other
appurtenances as it desires, at its expense and for so long as it desires, as set out in Transfer
156560.

SUBJECT TO a right-of-way in favour of LAURALEE FARMS LIMITED, its successors and assigns,
appurtenant to that part of Block K on Plan 844, designated as Parts
2 and 3 on 20R-4861 and Part
22 on 20R—4378, over said part of Block I on Plan 844, designated as Part 35 on 20R—4378, for the
purposes of constructing, maintaining and operating a railway industrial spur or siding in common
with the Transferee herein, its successors and assigns, as set out in Transfer 156560.

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Exhibit B

Base
Monthly Rent

	 	 	 	 	 
	Time Period	 	Monthly Rent Amount	 
	1st 2-1/2 Years
	 	$	25,000	 
	2nd 1-1/2 Years
	 	$	28, 645.83	 
	Next 5 Years
	 	$	32,291.66	 

 

 

EXHIBIT C

CONTINUING LEASE GUARANTY

     THIS
GUARANTY, made as of August ___, 1988, by PALCO
ACQUISITION COMPANY (“Guarantor”) for the benefit
of HOLMAN/SHIDLER INVESTMENT CORPORATION, a Hawaii corporation, Trustee (“Landlord”),

W I T N E S S E T H:

     1. For
valuable consideration, receipt of which is acknowledged, and to induce Landlord to enter
into that certain Industrial Real Property Lease of even date herewith (the “Lease”) between
Landlord, as landlord, and Palco Welding Products of Canada, Ltd., a Canadian corporation formed
under the Canada Business Corporations Act (“Tenant”), as tenant, relating to certain premises
commonly known as 2220 Wyecroft Road, Oakville, Ontario, Canada, Guarantor hereby absolutely,
unconditionally and irrevocably guarantees to, Landlord, and agrees fully to pay, perform and
discharge, as and when payment, performance and discharge are due, all of the covenants,
obligations and liabilities of Tenant under the Lease and all written amendments, modifications,
renewals, extensions, supplements, substitutions and replacements of the Lease (the “Guaranteed
Obligations”). The obligations of Guarantor under this Guaranty shall be absolute, unconditional
and irrevocable and shall continue and remain in full force and effect until all of the Guaranteed
Obligations have been fully paid, performed and discharged.

     2. The obligations of Guarantor under this Guaranty shall not be affected, modified or impaired by
the occurrence of any of the following events, whether or not with notice to, or the consent of,
Guarantor: (a) the waiver, surrender, compromise, settlement, release or termination of any or all
of the Guaranteed Obligations; (b) the failure to give notice to Guarantor of the occurrence of an
event of default under the Guaranteed Obligations; (c) the extension of the time for the payment,
performance or discharge of any or all of the Guaranteed Obligations;
(d) the amendment or
modification (whether material or otherwise) of the Lease or the Guaranteed Obligations in any
respect (provided that, except with Landlord’s consent, no such amendment or modification entered
into after Tenant has assigned the Lease to an unaffiliated third party shall be binding on
Landlord to the extent Landlord’s obligations hereunder would be
increased thereby); (e) any
failure, omission, delay or lack on the part of Landlord to enforce, assert or exercise any right,
power or remedy conferred on Landlord under the Lease; (f) the voluntary or involuntary
liquidations, dissolution, sale or other disposition of all

-1-

 

or substantially all of the assets, marshalling of assets and liabilities, receivership,
insolvency, bankruptcy, assignment for the benefit of creditors, reorganization, arrangement,
composition with creditors or adjustment of debts, or other similar proceedings affecting Tenant or
Guarantor or any of the assets of either of them; (g) the release or discharge by operation of law
of Tenant from the payment, performance or discharge of any or all of the Guaranteed Obligations;
(h) the release or discharge by operation of law of Guarantor from any or all of the obligations of
Guarantor under this Guaranty; (i) the invalidity or unenforceability of any or all of the
Guaranteed Obligations; or (j) any assignment of the Lease (except as otherwise provided in
paragraph 6 hereof) or any subletting of all or any portion of the leased premises. Guarantor
acknowledges that Landlord would not enter into the Lease without this Guaranty and that Landlord
is relying on this Guaranty.

     3. The obligations of Guarantor under this Guaranty are independent of the Guaranteed Obligations.
Guarantor agrees that Landlord shall have the right to proceed against Guarantor directly and
independently of Tenant. A separate action may be brought and prosecuted against Guarantor whether
or not an action is brought against Tenant or Tenant is joined in any such action. Guarantor
authorizes Landlord and Tenant, without notice to, demand of, or consent from Guarantor and without
releasing or affecting Guarantor’s liability under this Guaranty, from time to time to amend,
modify, renew, extend, supplement or replace the Lease or the Guaranteed Obligations or otherwise
change the terms of the Lease or the Guaranteed Obligations (provided that no such amendment,
modification, supplement, extension, replacement or change which is not in writing, or which is
entered into, without Landlord’s consent, after Tenant has assigned the Lease to an unaffiliated
third party, shall be binding on Guarantor to the extent Guarantor’s obligations hereunder are
increased thereby), to take and hold security for the Guaranteed Obligations, and to enforce,
waive, surrender, impair, compromise or release any such security or any or all of the Guaranteed
Obligations or any person or entity liable for any or all of the Guaranteed Obligations. Guarantor
shall be and remain bound under this Guaranty not-withstanding any such act or omission by Tenant
or Landlord. Guarantor waives all rights to require Landlord to proceed against Tenant, to proceed
against or exhaust any security held by Landlord, or to pursue any other remedy in Landlord’s
power. Landlord shall have the right to exercise any right or remedy it may have against Tenant or
any security held by Landlord. Guarantor waives all rights, if any, to the benefit of, or to direct
the application of, any security held by Landlord. Guarantor waives any and all

-2-

 

defenses it may have to payment or performance of its obligations hereunder, other than a defense
arising out of full payment, performance and discharge of the Guaranteed Obligations, including,
without limitation (a) any defense arising out of any written amendment, modification, renewal,
extension or replacement or other change to the Guaranteed
Obligations, (b) any defense arising out
of the absence, impairment or loss of any right of reimbursement or subrogation or other right or
remedy of Guarantor against Tenant or any security held by Landlord, and (c) any defense arising by
reason of any disability or other defense of Tenant or by reason of the cessation or reduction from
any cause whatsoever of the liability of Tenant. The cessation or reduction of the liability of
Tenant for any reason other than full payment, performance and discharge of the Guaranteed
Obligations shall not release or affect in any way the liability of Guarantor under this Guaranty.

     4. If Tenant becomes insolvent or is adjudicated bankrupt or files a petition for reorganization,
arrangement, composition or similar relief under any present or future provision of the Federal
Bankruptcy Code, or any other state or federal insolvency law, or if such a petition is filed
against Tenant, or Tenant makes a general assignment for the benefit of creditors, and in any such
proceeding any or all of the Guaranteed Obligations are terminated or rejected or any or all of the
Guaranteed Obligations are modified or abrogated, Guarantor agrees that Guarantor’s liability
hereunder shall not thereby be affected or modified and such liability shall continue in full force
and effect as if no such action or proceeding had occurred. This Guaranty shall continue to be
effective or be reinstated, as the case may be, if any payment of the Guaranteed Obligations must
be returned by Landlord upon the insolvency, bankruptcy or reorganization of Tenant, Guarantor, or
otherwise, as though such payment had not been made.

     5. Guarantor assumes the responsibility for being and keeping Guarantor informed of the financial
condition of Tenant and of all other circumstances bearing upon the risk of failure to pay, perform
or discharge any of the Guaranteed Obligations which diligent inquiry would reveal, and Guarantor
agrees that Landlord has no duty to advise Guarantor of information known to Landlord regarding
such condition or any such circumstance. Guarantor acknowledges that repeated and successive
demands may be made and payments or performance made hereunder in response to such demands as and
when, from time to time, Tenant defaults in the payment, performance or discharge of the Guaranteed
Obligations. Notwithstanding any such payments and performance hereunder, this Guaranty shall
remain in full force and effect and shall apply to any and all subsequent

-3-

 

defaults by Tenant. It is not necessary for Landlord to inquire into the capacity, authority or
powers of Tenant or the partners, directors, officers, employees or agents acting or purporting to
act on behalf of Tenant, and all of the Guaranteed Obligations made or created in good faith
reliance upon the purported exercise of such powers shall be guaranteed hereunder. Guarantor hereby
subordinates all indebtedness of Tenant to Guarantor now or hereafter held by Guarantor to all
indebtedness of Tenant to Landlord.

     6. Guarantor will cause Tenant to maintain and preserve the enforceability of the Lease as the same
may be modified and will not permit the Tenant to take or to fail to take actions of any kind, the
taking of which or the failure to take which would give rise to a defense to Guarantor’s
obligations hereunder other than a defense based upon termination of this Guaranty in accordance
with paragraph 7 hereof. Guarantor unconditionally guarantees that the representations and
warranties made by Tenant in the Lease are true and correct as of the date hereof.

     7. This Guaranty shall terminate prior to the full payment, performance and discharge of all of the
Guaranteed Obligations if, but only if, (a) without violating any of the terms and conditions of
Section 14.1 of the Lease, all of the Tenant’s rights, title and interests in, to and under the
Lease are assigned to, and assumed by, an assignee whose Average Annual Cash Flow (as defined in
Exhibit A attached hereto) for the three calendar years prior to the calendar year during which
such assignment becomes effective was not less than one hundred ten percent (110%) of the Average
Annual Cash Flow of Tenant and Guarantor, determined on a consolidated basis, during the period
determined as provided on Exhibit A, and (b) Tenant and/or such assignee shall provide to Landlord
reasonably satisfactory evidence that the condition in subparagraph (a) above is satisfied. Upon
satisfaction of the foregoing conditions, Landlord shall promptly execute and deliver to Guarantor
a document reasonably satisfactory to Guarantor confirming the termination of this Guaranty.

     8. If Tenant and Guarantor fail to pay, perform and discharge, as and when payment, performance and
discharge are due, all of the Guaranteed Obligations, Landlord shall have the right, but no
obligation, and without releasing Tenant or Guarantor from any of the Guaranteed Obligations, to
pay, perform and discharge any or all of the Guaranteed Obligations on behalf of Tenant and
Guarantor. Guarantor shall, on demand, pay to Landlord all sums
expended by Landlord in the payment, performance and discharge of the Guaranteed Obligations, together with interest on all
such sums from the date of expenditure to the date

-4-

 

all such sums are paid by Tenant or Guarantor to Landlord at the maximum annual interest rate
allowed by law for business loans (not primarily for personal, family or household purposes) not
exempt from the usury law on such date of expenditure, or, if there is no such maximum annual
interest rate, at the rate of eighteen percent (18%) per annum. Guarantor waives all presentments,
demands for performance, notices of nonperformance, protests, notices of protest, notices of
dishonor ard notices of acceptance of this Guaranty. Guarantor agrees to pay all costs and
expenses, including reasonable attorneys’ fees, which are incurred by Landlord in the enforcement
of this Guaranty. If any provision of this Guaranty is held to be invalid or unenforceable, the
validity or enforceability of the other provisions of this Guaranty
shall not be affected. This
Guaranty may not be amended or modified in any respect except by a written instrument signed by
Guarantor and Landlord. As used in this Guaranty, the singular shall include the plural. This
Guaranty shall bind and inure to the benefit of Guarantor and Landlord and their respective
transferees, personal representatives, heirs, successors and assigns. This Guaranty shall be
governed by and construed in accordance with the laws of the State of California. The address of
Guarantor is set forth below.

     IN
WITNESS WHEREOF, Guarantor has executed this Continuing Lease Guaranty as of the date first
hereinabove written.

	 	 	 	 	 
	 	PALCO ACQUISITION COMPANY, a
Delaware corporation

 	 
	 	By:  	 	 
	 	 	Title  	 	 
	 	 	 	 
	 	Guarantor’s address:

101 South Hanley

St. Louis, MO 63105

Attn: Mr. Randy Curran 	 

-5-

 

	 	 	 	 	 

EXHIBIT A

     For purposes of this section, Cash Flow means pre-tax earnings plus depreciation, depletion,
amortization and other non–cash charges, less the sum of (i) the current payments on long—term
indebtedness and (ii) capital expenditures, all determined in accordance with generally accepted
accounting principles.

     The period during which Cash Flow is to be averaged in the case of Guarantor and any Tenant shall
be (1) in the case of an assignment effective before May 15, 1989, the twelve months ending
September 30, 1988, (2) in the case of an assignment
effective between May 16, 1989 and May 15,
1990, the twelve months ending September 30, 1989, (3) in the case of an assignment effective
between May 16, 1990 and May 15, 1991, the twenty–four months ending september 30, 1991, and (4) in
the case of any assignment effective after May 16, 1991, the most recent 36 fiscal quarters for
which figures are available.

-6-

 

Exhibit D

Recording Requested By

And When Recorded Mail To:

_________________________________________________________

_________________________________________________________

_________________________________________________________

MEMORANDUM OF LEASE

     THIS
MEMORANDUM OF LEASE, dated

,

 by and
between

 (“Landlord”), and

(“Tenant”),

W I T N E S S E T H:

     1. That by this Memorandum of Lease, and on the terms and conditions set forth in that certain
Lease dated
___________________ ,executed by and between the parties hereto, all of which terms and
conditions are hereby made a part hereof as fully and completely as if herein specifically set out
in full, Landlord has leased and does hereby lease to Tenant and Tenant has leased and does

			
	hereby lease from Landlord	 	 

			
	located	 	 
	 

     2. The Lease shall be for a term of ___________ (_______________) _____________
commencing on
________________________________________, and
ending______________________________________________________________
Tenant has the option to extend the term for _________ (__________)
additional period of
___________ (_____ ) years in accordance with the provisions of paragraph _________
of said Lease.

     IN
WITNESS WHEREOF, this Memorandum of Lease has been executed the day and year first above
written.

	 	 	 	 	 	 	 

	 	 	Landlord
	 
	 	 	 	 	 	 
	 	 	 
	Witnessed By:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Its	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

-1-

 

	 	 	 	 	 	 	 

	 	 	Tenant
	 
	 	 	 	 	 	 
	 	 	 
	Witnessed By:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Its	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

[Add Acknowledgments]

-2-

 

	 	 	 	 	 	 	 

	 	 	Tenant
	 
	 	 	 	 	 	 
	 	 	 
	Witnessed By:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Its	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

[Add Acknowledgments]

-2-exv10w18

Exhibit 10.18

AMENDING AGREEMENT

THIS AGREEMENT made as of the 18 day of March 2003.

BETWEEN:

HOLMAN/SHIDLER INVESTMENT CORPORATION,

TRUSTEE

(hereinafter called the “Landlord”)

OF THE FIRST PART

- and -

THERMADYNE WELDING PRODUCTS CANADA, LIMITED

(hereinafter called the “Tenant”)

OF THE SECOND PART

- and -

THERMADYNE HOLDING CORPORATION

(hereinafter called the “Guarantor”)

OF THE THIRD PART

WHEREAS:

	A.	 	By a lease dated the
11th day of August, 1988 (the “Lease”), the Landlord as landlord leased to
Palco Welding Products Canada, Ltd. certain lands and premises (the “Premises”) now municipally
known as 2070 Wyecroft Road, Oakville, Ontario, Province of Ontario for and during a term (the
“Term”) of fifteen (15) years commencing on the
11th
 day of August, 1988 and expiring on the
3lst day
of August, 2003.

 

 

	B.	 	Pursuant to articles of amendment dated September 26, 1988, Palco Welding Products Canada Ltd.
changed its name to Thermadyne Welding Products Canada, Limited.
	 
	C.	 	By a Continuing Lease Guaranty annexed as Exhibit “C” to the Lease (the “Guaranty”), Palco
Acquisition Company provided a guarantee of all of the covenants, obligations and liabilities of
the Tenant under the Lease.
	 
	D.	 	Pursuant to articles of amendment dated September 12, 1988, Palco Acquisition Company changed
its name to Thermadyne Industries, Inc. Pursuant to articles of amendment dated September 24, 1993
Thermadyne Industries, Inc. changed its name to TDII Company. Pursuant to articles of amendment
dated January 18, 1994 TDII Company changed its name to Thermadyne Holdings Corporation.
	 
	E.	 	The Landlord and the Tenant have agreed to enter into this Agreement in order to, among other
things, extend the Lease Term. The Guarantor has executed this Agreement to confirm that its
guarantee of the obligations of the Tenant to the Landlord pursuant to the Guaranty remains in full
force and effect and binding upon the Guarantor notwithstanding the extension of the Lease Term and
the amendments to the Lease as set out herein.
	 
	F.	 	Any capitalized terms used herein, and not defined herein, shall have the same meanings as
attributed thereto in the Lease.

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of the sum of TWO DOLLARS ($2.00) and
the mutual covenants and agreements herein contained the parties hereto agree with each other as
follows:

	1.	 	The parties hereto hereby acknowledge, confirm and agree that the foregoing recitals are true in
substance and in fact.
	 
	2.	 	The Lease shall be amended from and after the date hereof as follows:

	 	(a)	 	The Lease Term is extended for a period of five (5) years (the “First Extension Period”) to be
computed from the
1st day
of September, 2003, and to be fully completed and ended on the
3lst day of
August, 2008 upon the same terms and conditions as are contained in the Lease save and except as
otherwise set out in this Agreement;
	 
	 	(b)	 	Sections 16.10 and 16.11 are deleted from the Lease with respect to the period from and after
the Effective Date;
	 
	 	(c)	 	Section 3.1 shall be amended by the addition of the following:
	 
	 	 	 	“The Base Monthly Rent payable during the First Extension Period shall be as follows:

- 2 -

 

	 	 	 	With respect to the period commencing September 1, 2003, and
ending
August 31st 2005, Two Hundred
and Forty-Three Thousand Five Hundred and Fifty Dollars Canadian ($243,550.00) per annum payable in
equal monthly installments of Twenty Thousand Two Hundred and Ninety-Five Dollars and Eighty-Three
Cents Canadian ($20,295.83) each, based upon a rate of Five Dollars Canadian ($5.00) per annum of
rentable area of the building (the “Building”) located on the Leased Premises.
	 
	 	 	 	For the period commencing September 1, 2005 and ending August 31, 2007, Two Hundred and Sixty-Seven
Thousand Nine Hundred and Five Dollars Canadian ($267,905.00) per annum payable in equal monthly
installments of Twenty-Two Thousand Three Hundred and Twenty-Five Dollars and Forty-One Cents
Canadian ($22,325.41) each, based upon a rate of Five Dollars and Fifty Cents Canadian ($5.50) per
annum of rentable area of the Building.
	 
	 	 	 	For the period commencing September 1, 2007 and ending August 31, 2008, Two Hundred and Eighty
Thousand Eighty-Two Dollars and Fifty Cents Canadian ($280,082.50) per annum payable in equal
monthly installments of Twenty-Three Thousand Three Hundred and Forty Dollars and Twenty-One Cents
Canadian ($23,340.21) each, based upon a rate of Five Dollars and Seventy-Five Cents Canadian.
($5.75) per annum of rentable area of the Building.
	 
	 	 	 	The Landlord and Tenant acknowledge and agree that for the purposes of calculating Base Monthly
Rent, the rentable area of the Building shall be deemed to be 48,710 square feet.”
	 
	 	(d)	 	Section 5.4 “Capital Improvements” shall be added to the Lease as follows:
	 
	 	 	 	“(a)     So long as the Tenant is not in default under this Lease, payment of Base Monthly Rent with
respect to the months of September, October, November and December, 2003 shall be deferred and the
Tenant shall apply the Base Monthly Rent that would otherwise be payable for such period, totaling
Eighty-One Thousand One Hundred and Eighty-Three Dollars ($81,183.00), towards the design and
construction of the Capital Improvements (as that term is defined below) in accordance with the
terms and provisions of this Section on or before the Improvement Completion Date as that term is
defined below.
	 
	 	 	 	On or before February 1, 2005, (the “Improvement Completion Date”) the Tenant agrees to design,
construct and complete, at its sole cost and expense, the Capital Improvements in a good and
workmanlike manner, in accordance with the Plans and Specifications, using new and first class
materials in accordance with all applicable federal, provincial and local laws, statutes,
regulations and by-laws and in accordance with the other provisions of this Lease. Upon the
completion of the Capital

- 3 -

 

	 	 	 	Improvements, the Capital Improvements shall be considered as Leasehold Improvements for the
purposes of this Lease.
	 
	 		 	(b)     The Landlord agrees to reimburse the Tenant for one-half of the cost incurred by the Tenant in
designing and constructing the Capital Improvements to a maximum reimbursement of Eighty-One
Thousand One Hundred and Eighty-Three Dollars ($81,183.00), (inclusive of Other Taxes) in
accordance with the following provisions, after the last of the following shall occur:

	 	(i)	 	the Capital Improvements, having been completed in accordance with the provisions of the Plans
and Specifications and the Lease and to the reasonable satisfaction of the Landlord;
	 
	 	(ii)	 	delivery by the Tenant to the Landlord of:
	 
	 		 	(A) an itemized list of all contractors, subcontractors and material and service suppliers that did
work or provided material or services in connection with the Capital Improvements;
	 
	 		 	(B) (1) a statutory declaration from the Tenant’s general contractor, each of its subcontractors
and each of the material and service suppliers that they have been paid in full (accompanied by
copies of paid invoices evidencing payment), that the statutory lien periods have expired and that
each has no further claim with respect to the Capital Improvements, as well as a clearance
certificate from each that all assessments under the Workers
Compensation Act have been paid in
full, (2) copies of all required governmental permits for the Capital Improvements, (3) an itemized
list detailing the Tenant’s actual cost of the Capital Improvements;
	 
	 		 	(C) a statutory declaration from the Tenant stating that all accounts for work, services and
materials with respect to or in connection with the Capital Improvements have been paid in full
(accompanied by copies of paid invoices evidencing payment), that the statutory lien periods have
expired and that no construction or any other liens have been or may be claimed with respect to the
Capital Improvements and that all assessments under the Workers
Compensation Act have been paid in
full.

	 		 	(c)     Despite the provisions of (b) above, the Landlord shall only pay (i) Ninety per cent (90%) of
one-half of the cost of the Capital Improvements upon the satisfactory completion as determined by
the Landlord of the items in (b) set out above, and (ii) the remaining Ten percent (10%) of
one-half of the cost on expiry of all lien rights pertaining to the Capital Improvements.

- 4 -

 

	 		 	(d)     In the event that one-half of the cost of the Capital Improvements incurred by the Tenant is
less than Eighty-One Thousand One Hundred and Eighty-Three Dollars ($81,183.00), the Tenant shall
forthwith pay the difference to the Landlord on the date for payment of the next installment of
Base Monthly Rent.
	 
	 		 	(e)     The Tenant acknowledges that the obligation of the Landlord to contribute towards the cost
incurred by the Tenant in designing and constructing the Capital Improvements (to a maximum
reimbursement of Eighty-One Thousand One Hundred and Eighty-Three Dollars ($81,183.00) inclusive of
Other Taxes) constitutes the whole of the Landlord’s obligations in respect of the Capital
Improvements.
	 
	 		 	(f)     For the purposes of this Lease, “Capital Improvements” means those leasehold alterations and
improvements that the Tenant requests be made to the Building, as approved by the Landlord, acting
reasonably, including without limitation the renovation of the existing four bathrooms and the
lower kitchen and training room and the construction of a photocopy room all to be constructed in
accordance with the Plans and Specifications. For the purposes of this Lease, “Plans and
Specifications” means the plans and specifications with respect to the Capital Improvements as
agreed upon between the Landlord and the Tenant, each acting reasonably.”

	 	(e)	 	The following shall be added to the Lease, as Section 6.4:
	 
	 	 	 	“6.4 Landlord’s Obligation to Maintain. With respect to that portion of the Lease Term commencing
with the Effective Date, the Landlord shall be responsible, at its sole expense, for any required
repairs and/or replacements to the roof and roof deck of the Building unless caused by or arising
from the negligence, willful acts or omissions of the Tenant or those for whom at law the Tenant is
responsible (in which ease the cost of such repair and/or replacement shall be the responsibility
of the Tenant). Save and except for the foregoing, the Landlord shall not be responsible for any
maintenance, repairs or replacements of any kind whatsoever to the Leased Premises or any portion
thereof.”
	 
	 	(f)	 	Section 16.08 is added to the Lease as follows:
	 
	 	 	 	“16.08 Severance. As soon as expeditiously possible after the execution of this Agreement and the
identification of the Excess Lands (as that term is defined below), the Landlord agrees to commence
to prepare an application and shall submit an application to the local Committee of Adjustment (or
other appropriate Land Division Committee or other appropriate authority with jurisdiction) to
obtain a severance of a developable portion of the Leased Premises, which portion is not currently
being used by the Tenant and is surplus to the Tenant’s

- 5 -

 

	 	 	 	needs, consisting of between 3 and 6 acres (the “Excess Land”) from the balance of the Leased
Premises (the “Remainder Land”). The exact dimensions and acreage of the Excess Lands is to be
determined by the Landlord acting reasonably on or before June 15, 2003. The Landlord shall
diligently proceed and process such application and any appeal therefrom as expeditiously as
possible, and shall be responsible for the general co-ordination with respect to obtaining the
severance. The Landlord shall be responsible at its sole cost and expense for satisfying all
conditions, dedications, payments or demands of any kind whatsoever imposed as a condition of
obtaining a severance (collectively, the “Conditions”). If approval to the severance is given but
any Conditions are attached respecting the Excess Land or the Remainder Land, which the Landlord,
in its absolute discretion, is not prepared to agree to, or if approval is given, but is appealed
and the Landlord is not prepared to defend such appeal, then the Landlord may, notwithstanding any
other provision contained in this Agreement or the Lease not pursue the severance and in such event
the Landlord shall have no liability to the Tenant pursuant to this provision. Notwithstanding any
provision in this Agreement or the Lease to the contrary, the Landlord shall not be obligated to
appeal any decision on the severance to the Ontario Municipal Board. Any such appeal to the Ontario
Municipal Board shall be at the sole discretion of the Landlord. The Tenant hereby agrees to fully
co-operate with the Landlord respecting such application and to execute (and consent where
required) to such applications at the Tenant’s cost and expense. In addition to the foregoing, the
Tenant acknowledges and agrees that, in connection with the development and use of the Excess
Lands, the Landlord retains the right to utilize the existing entrances, driveways and roads
located on the Remainder Lands together with the right to install, maintain or grant the right to
install or maintain cable, phone and other utility services in, on, over, under, through, along and
upon the Remainder Lands and may grant easements or licenses to third parties with respect to same,
provided that the Tenant’s use and enjoyment of the Remainder Lands is not materially affected. If
required by the Landlord or a third party, the Tenant shall provide its written consent to any
required easements or license as set out above.
	 
	 	 	 	In the event that the Landlord is successful in obtaining the severance on Conditions satisfactory
to the Landlord, in its sole discretion, then the Excess Land shall be removed from the Leased
Premises and the Landlord and Tenant shall enter into a mutually acceptable surrender agreement
whereby the Tenant surrenders to the Landlord the Excess Lands effective the tenth (10th) day after
a severance is obtained with all appeal periods having passed (the “Surrender Date”). Rent and
other costs, expenses and amounts payable under the Lease shall be adjusted between the parties
effective the Surrender Date and the Tenant shall comply with all of its other obligations under
the Lease regarding the surrender of the Excess Lands.”

- 6 -

 

	 	(g)	 	The following shall be added to the Lease as Section 1.1(v):
	 
	 	 	 	“1.1(v) Effective Date. The term “Effective Date” means
September 1, 2003”.
	 
	 	(h)	 	The third sentence of Section 9.1(c) shall be deleted and replaced with the following:
	 
	 	 	 	“The general liability coverage shall have a minimum combined single limit of liability of at least
Three Million Dollars ($3,000,000.00) and a general aggregate limit of at least Five Million
Dollars ($5,000,000.00) [except product liability as to which the aggregate liability is Two
Million Dollars
($2,000,000.00)].”
	 
	 	(i)	 	Section 6.2 shall be amended by the insertion of the following at the end of the section:
	 
	 	 	 	“In the event of an emergency or a perceived emergency, the Landlord and its agents shall have the
right to enter the Leased Premises without notice.”
	 
	 	(j)	 	Section 3.5 shall be added to the Lease as follows:
	 
	 	 	 	“3.5 Other Taxes. The Tenant covenants with the Landlord to pay, as and when the same become due,
all Other Taxes. The Tenant shall pay to the Landlord an amount equal to any Other Taxes, in
amounts and at the same times as any such amounts are payable by the Landlord or upon demand at
such other time or times as the Landlord from time to time determines. Notwithstanding any
provision in this Lease to the contrary, payment by the Tenant on account of Other Taxes shall be
deemed not to be Additional Rent, but the Landlord shall have all of the same remedies for and
rights of recovery of such payments as it has for the recovery of Additional Rent.”
	 
	 	(k)	 	The following shall be added to the Lease as Section 1.1(v):
	 
	 	 	 	“1.1(v) Other Taxes. “Other Taxes” means all goods and services taxes, and sales taxes, levied,
rated, charged or imposed on the Landlord or the Tenant in respect of this Lease, Rent payable
under this Lease, the rental of space under this Lease or the goods and services provided by the
Landlord hereunder, calculated in accordance with applicable legislation.”

	3.	 	The Landlord agrees to reimburse the Tenant, to a maximum amount of Nineteen Thousand Six
Hundred and Eighty-Five Dollars and Eighty-Six Cents Canadian ($19,685.86) (inclusive of Other
Taxes), toward the out-of-pocket costs incurred by the

- 7 -

 

	 	 	Tenant in replacing the Buildings two oldest heating, ventilating and air-conditioning rooftop
units with comparable rooftop units upon the Landlord being provided with invoices marked paid
evidencing the cost incurred by the Tenant.
	 
	4.	 	The parties confirm that in all other respects the terms, covenants and conditions of the Lease
remain unchanged, unmodified, and in full force and effect, except as modified by this Agreement.
	 
	5.	 	This Agreement shall enure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns, as the case may be.
	 
	6.	 	This Agreement shall be construed in accordance with the laws of the Province of Ontario.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date firstabove
written.

	 	 	 	 	 
	 	HOLMAN/SHIDLER INVESTMENT

CORPORATION, TRUSTEE

 	 
	 	By:  	 	 
	 	 	Name:  	c/s 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	THERMADYNE WELDING PRODUCTS

CANADA, LIMITED

 	 
	 	By:  	/s/ James H. Tate
 	 
	 	 	Name:  	James H. Tate c/s 	 
	 	 	Title:  	Senior V.P. and CFO 	 
	 
	 	 	 
	 	By:  	/s/ Patricia S. Williams
 	 
	 	 	Name:  	Patricia S. Williams 	 
	 	 	Title:  	V.P., General Counsel and Corporate Secretary 	 

- 8 -

 

	 	 	 	 	 

	 	 	 	 	 
	 	THERMADYNE HOLDINGS CORPORATION

 	 
	 	By:  	/s/ James H. Tate
 	 
	 	 	Name:  	James H. Tate c/s  	 
	 	 	Title:  	Senior V.P. and CFO 	 
	 
	 	 	 
	 	By:  	/s/ Patricia S. Williams
 	 
	 	 	Name:  	Patricia S. Williams 	 
	 	 	Title:  	V.P., General Counsel and Corporate Secretary 	 
	 

- 9 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00187-of-00352.parquet"}]]