Document:

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                                                                     EXHIBIT 4.9

                             METAL MANAGEMENT, INC.

                          EMPLOYEE STOCK PURCHASE PLAN

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                                                                               .

                               TABLE OF CONTENTS

<Table>
<Caption>
                                                                                PAGE
                                                                                ----
<S>        <C>    <C>                                                           <C>
sec. 1.    PURPOSE............................................................    1
sec. 2.    DEFINITIONS........................................................    1
           2.1    Account.....................................................    1
           2.2    Board.......................................................    1
           2.3    Business Day................................................    1
           2.4    Code........................................................    1
           2.5    Committee...................................................    1
           2.6    Company.....................................................    1
           2.7    Compensation................................................    1
           2.8    Eligible Employee...........................................    1
           2.9    Enrollment Period...........................................    1
           2.10   Exercise Date...............................................    2
           2.11   Fair Market Value...........................................    2
           2.12   1933 Act....................................................    2
           2.13   1934 Act....................................................    2
           2.14   Offering Period.............................................    2
           2.15   Participating Employee......................................    2
           2.16   Participating Employer......................................    2
           2.17   Plan........................................................    2
           2.18   Plan Administrator..........................................    2
           2.19   Purchase Price..............................................    2
           2.20   Recordkeeper................................................    2
           2.21   Stock.......................................................    2
           2.22   Stock Purchase Form.........................................    2
           2.23   Subsidiary..................................................    2
sec. 3.    SHARES RESERVED UNDER THE PLAN.....................................    2
sec. 4.    EFFECTIVE DATE.....................................................    3
sec. 5.    PLAN ADMINISTRATOR.................................................    3
sec. 6.    PARTICIPATION......................................................    3
           6.1    Requirements................................................    3
           6.2    Continuing Authorization....................................    3
           6.3    Termination.................................................    3
sec. 7.    GRANTING OF OPTIONS................................................    3
           7.1    General Rule................................................    3
           7.2    Statutory Limitation........................................    4
           7.3    Insufficient Number of Shares of Stock......................    4
sec. 8.    METHOD OF PAYMENT..................................................    4
           8.1    Initial Authorization.......................................    4
           8.2    Continuing Election.........................................    4
           8.3    Election Amendment..........................................    4
           8.4    Election Revocation and Withdrawal Rights...................    4
</Table>

                                       i
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<Table>
<Caption>
                                                                                PAGE
                                                                                ----
<S>        <C>    <C>                                                           <C>
           8.5    Account Credits, General Assets and Taxes...................    5
           8.6    No Cash Payments............................................    5
sec. 9.    EXERCISE OF OPTION.................................................    5
           9.1    General Rule................................................    5
           9.2    Automatic Refund............................................    5
           9.3    Delivery of Stock...........................................    5
sec. 10.   TERMINATION OF EMPLOYMENT..........................................    6
           10.1   General Rule................................................    6
           10.2   Leaves of Absence...........................................    6
sec. 11.   TRANSFERABILITY....................................................    6
sec. 12.   ADJUSTMENT.........................................................    6
sec. 13.   CORPORATE TRANSACTIONS.............................................    6
sec. 14.   SECURITIES REGISTRATION............................................    6
sec. 15.   AMENDMENT OR TERMINATION...........................................    7
MISCELLANEOUS.................................................................    7
           16.1   Shareholder Rights..........................................    7
           16.2   No Contract of Employment...................................    7
           16.3   Withholding.................................................    7
           16.5   Construction................................................    7
           16.6   Rule 16b-3..................................................    8
</Table>

                                       ii
<PAGE>

                                    SEC. 1.

                                    PURPOSE

     The primary purpose of this Plan is to encourage Stock ownership by each
Eligible Employee of the Company by permitting the purchase of Stock at a
discount that is permissible under sec. 423 of the Code. The Company intends
that this Plan constitute an "employee stock purchase plan" within the meaning
of sec. 423 of the Code and, further, intends that any ambiguity in this Plan or
any related offering be resolved to effect such intent.

                                    SEC. 2.

                                  DEFINITIONS

     2.1  Account -- means the separate bookkeeping account that shall be
established and maintained by the Plan Administrator for each Participating
Employee for each Offering Period to record the payroll deductions made on his
or her behalf to purchase Stock under this Plan.

     2.2  Board -- means the Board of Directors of the Company.

     2.3  Business Day -- means a day that the NASDAQ National Market is open if
the Stock is listed on such exchange.

     2.4  Code -- means the Internal Revenue Code of 1986, as amended.

     2.5  Committee -- means the Compensation Committee of the Board.

     2.6  Company -- means Metal Management, Inc., a corporation incorporated
under the laws of the State of Delaware, and any successor to Metal Management,
Inc.

     2.7  Compensation -- means a Participating Employee's base pay, unless
otherwise uniformly defined by the Plan Administrator on a prospective basis.

     2.8  Eligible Employee -- means each employee of the Company or a
Subsidiary except --

          (a) an employee who customarily is employed (within the meaning of
     Code sec. 423(b)(4)(B)) 20 hours or less per week by the Company or such
     Subsidiary,

          (b) an employee who has not been continuously employed (within the
     meaning of Code sec. 423(b)(4)(A)) by the Company or such Subsidiary for at
     least 90 days,

          (c) an employee who would own (immediately after the grant of an
     option under this Plan) stock possessing 5% or more of the total combined
     voting power or value of all classes of stock of the Company based on the
     rules set forth in sec. 423(b)(3) and sec. 424 of the Code, and

          (d) any highly compensated employee (within the meaning of Code
     Section 414(q)) whose annual Compensation rate is at least $170,000, or
     other group of highly compensated employees as designated by the Plan
     Administrator.

The Plan Administrator may from time to time prior to an Enrollment Period
adjust the foregoing eligibility requirements by (1) reducing the minimum hours
per week threshold under sec. 2.8(a), (2) reducing or increasing (up to a
maximum of 2 years) the minimum period of employment under sec. 2.8(b), and (3)
requiring employees to be customarily employed for a minimum number of months
per year (not to exceed 5 months).

     2.9  Enrollment Period -- means the period set by the Plan Administrator
which precedes the beginning of the related Offering Period and which shall
continue for no more than 15 days or such other period as set from time to time
by the Plan Administrator.

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     2.10  Exercise Date -- means for each Offering Period the last Business Day
of such Offering Period or such other day or days as within such Offering Period
as may be set by the Plan Administrator.

     2.11  Fair Market Value -- means (1) the closing price on any date for a
share of Stock as reported by the NASDAQ National Market or, if no such closing
price is available on such date, (2) such closing price as so reported for the
immediately preceding day by the NASDAQ National Market, or, if no newspaper or
trade journal reports such closing price or if no such price quotation is
available, (3) the price that the Plan Administrator acting in good faith
determines through any reasonable valuation method that a share of Stock might
change hands between a willing buyer and a willing seller, neither being under
any compulsion to buy or to sell and both having reasonable knowledge of the
relevant facts.

     2.12  1933 Act -- means the Securities Act of 1933, as amended.

     2.13  1934 Act -- means the Securities Exchange act of 1934, as amended.

     2.14  Offering Period -- means each calendar quarter or such other period
as set from time to time by the Plan Administrator, however in no event will any
Offering Period be longer than 27 months.

     2.15  Participating Employee -- means for each Offering Period each
Eligible Employee who is employed by a Participating Employer and who has
satisfied the requirements set forth in sec. 6 of this Plan for such Offering
Period.

     2.16  Participating Employer -- means for each Offering Period, the Company
and each Subsidiary that the Plan Administrator designates as a Participating
Employer for such Offering Period.

     2.17  Plan -- means this Metal Management, Inc. Employee Stock Purchase
Plan as in effect on the Effective Date and as thereafter amended from time to
time.

     2.18  Plan Administrator -- means the Board or the Committee or an
executive officer so designated by the Board or the Committee.

     2.19  Purchase Price -- means for each Offering Period the lesser of 85% of
the Fair Market Value for a share of Stock on the first Business Day of such
Offering Period or 85% of the Fair Market Value for a share of Stock on the last
Business Day of such Offering Period.

     2.20  Recordkeeper -- means the entity selected by the Plan Administrator
to provide administrative services under this Plan.

     2.21  Stock -- means the common stock of the Company, $0.01 par value per
share.

     2.22  Stock Purchase Form -- means the form that an Eligible Employee shall
be required to properly complete in writing and timely file with the Plan
Administrator before the end of an Enrollment Period in order to purchase Stock
under this Plan for the related Offering Period and which shall require an
Eligible Employee to provide such information and to take such action as the
Plan Administrator in his or her discretion deems necessary or helpful to the
orderly administration of this Plan, including authorizing payroll deductions to
purchase Stock under this Plan.

     2.23  Subsidiary -- means each corporation which is a subsidiary of the
Company (within the meaning of sec. 424(f) of the Code).

                                    SEC. 3.

                         SHARES RESERVED UNDER THE PLAN

     There shall be (subject to sec. 12) a total of 1,000,000 shares of Stock
reserved for issuance upon the exercise of options granted under this Plan as of
the Effective Date. All such shares of Stock shall be reserved to the extent
that the Company deems appropriate from authorized but unissued shares of Stock
or from shares of Stock which have been reacquired by the Company. The proceeds
which the Company receives from the sale of any shares of Stock under this Plan
shall be used for general corporate purposes and shall be added to the general
funds of the Company.
                                       2
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                                    SEC. 4.

                                 EFFECTIVE DATE

     The effective date of this Plan shall be the date the Board acts to adopt
this Plan if the shareholders of the Company at any time within 12 months before
or after such date approve such adoption of this Plan.

                                    SEC. 5.

                               PLAN ADMINISTRATOR

     This Plan shall be administered by the Plan Administrator. The Plan
Administrator acting in the Plan Administrator's absolute discretion shall
exercise such powers and take such action as expressly called for under this
Plan and, further, the Plan Administrator shall have the power to interpret this
Plan and to take such other action in the administration and operation of this
Plan as the Plan Administrator deems equitable under the circumstances, which
action shall be binding on the Company, on each affected Participating Employee
and Participating Employer and on each other person directly or indirectly
affected by such action. The Plan Administrator shall have the power to delegate
to the Recordkeeper, or to any other person or entity, the duty to perform such
administrative functions as it deems appropriate under the circumstances. Any
person to whom the duty to perform an administrative function is delegated shall
act on behalf of and shall be responsible to the Plan Administrator for such
function.

                                    SEC. 6.

                                 PARTICIPATION

     6.1  Requirements.  Each Eligible Employee who is employed by a
Participating Employer during an Enrollment Period shall satisfy the
requirements to be a Participating Employee for the related Offering Period if

          (a) he or she has properly completed and filed a Stock Purchase Form
     with the Plan Administrator on or before the last day of such Enrollment
     Period to purchase shares of Stock pursuant to options granted under this
     Plan, and

          (b) his or her employment as an Eligible Employee continues
     uninterrupted throughout the period which begins on the date he or she
     properly completed and filed the Stock Purchase Form with the Plan
     Administrator and ends on the first day of the related Offering Period, and
     no Eligible Employee's employment shall be treated as interrupted by a
     transfer directly between the Company and any Subsidiary or between one
     Subsidiary and another Subsidiary.

     6.2  Continuing Authorization.  Any election made on a Stock Purchase Form
shall continue in effect until amended under sec. 8.3 or revoked under sec. 8.4.

     6.3  Termination.  A Participating Employee's status as such shall
terminate for an Offering Period (for which he or she has an effective election
under a Stock Purchase Form) at such time as his or her account is withdrawn
under sec. 8.4 or his or her employment terminates under sec. 10.

                                    SEC. 7.

                              GRANTING OF OPTIONS

     7.1  General Rule.  Subject to sec. 7.2 and sec. 7.3, each Participating
Employee for each Offering Period automatically shall be granted an option as of
the first Business Day of such Offering Period to purchase at the Purchase Price
a maximum number of whole shares of Stock, which number shall be determined by
dividing $6,250.00 (or such other amount as set from time to time by the Plan
Administrator) by the Fair Market Value of a share of Stock on the first
Business Day of such Offering Period.

                                       3
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     7.2  Statutory Limitation.  No option granted under this sec. 7 to any
Eligible Employee shall permit his or her rights to purchase shares of Stock
under this Plan or under any other employee stock purchase plan (within the
meaning of sec. 423 of the Code) established by the Company or any Subsidiary to
accrue (within the meaning of sec. 423(b)(8) of the Code) at a rate that exceeds
$25,000 of the Fair Market Value of such Stock for any calendar year.

     7.3  Insufficient Number of Shares of Stock.  If the number of shares of
Stock reserved for purchase for any Offering Period is insufficient to cover the
number of shares that Participating Employees elect to purchase on the Exercise
Date for such Offering Period, then the number of shares of Stock that each
Participating Employee has a right to purchase at the end of such Offering
Period shall be reduced to the number of shares of Stock that the Plan
Administrator shall determine by multiplying the number of shares of Stock
reserved under this Plan by a fraction, the numerator of which shall be the
number of shares of Stock which such Participating Employee elected to purchase
at the end of such Offering Period and the denominator of which shall be the
total number of shares of Stock that all Participating Employees elected to
purchase at the end of such Offering Period.

                                    SEC. 8.

                               METHOD OF PAYMENT

     8.1  Initial Authorization.  Each Participating Employee's initial election
on a Stock Purchase Form shall specify the amount, if any, that he or she
authorizes his or her Participating Employer to deduct from his or her
Compensation each pay period (determined in accordance with such Participating
Employer's standard payroll policies and practices) during the Offering Period
for which the election made on such form is in effect; provided

          (a) the minimum amount elected to be deducted from a Participating
     Employee's Compensation during any pay period in an Offering Period shall
     not be less than 1% of the Participating Employee's base pay during the pay
     period, and

          (b) the maximum amount elected to be deducted from a Participating
     Employee's Compensation during any pay period in an Offering Period shall
     not exceed the lesser of 15% of the Participating Employee's base pay
     during the pay period or such other amount as set from time to time by the
     Plan Administrator.

     8.2  Continuing Election.  An election made on a Stock Purchase Form once
timely filed under sec. 6.1 shall continue in effect until amended under
sec. 8.3 or revoked under sec. 8.4.

     8.3  Election Amendment.  An election made on a Stock Purchase Form may be
amended during any Enrollment Period and such amendment shall be effective for
the related Offering Period if timely filed under sec. 6.1. Unless otherwise
uniformly authorized for Participating Employees by the Plan Administrator on a
prospective basis, a Participating Employee may not amend a payroll deduction
election for an Offering Period during such Offering Period, but may revoke an
election pursuant to sec. 8.4.

     8.4  Election Revocation and Withdrawal Rights.

     (a) Revocation. A Participating Employee shall have the right during any
Offering Period to revoke an election made on a Stock Purchase Form, and stop
the payroll deductions that he or she previously had authorized for such
Offering Period, if he or she files an election revocation with the Plan
Administrator on a Stock Purchase Form 10 days before the Exercise Date for such
Offering Period. In such case, payroll deductions shall stop as soon as
practicable after the Plan Administrator actually receives the election
revocation.

     (b) Withdrawal. If a Participating Employee revokes his or her election, he
or she may elect to withdraw the entire balance credited to his or her Account
for such Offering Period without interest, and any such election shall be made
on a Stock Purchase Form. If a Participating Employee makes such a withdrawal
election, such balance shall be paid to him or her in cash (without interest) as
soon as practicable after the

                                       4
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Plan Administrator receives his or her withdrawal election on a Stock Purchase
Form. If no such election is made, such Account balance shall be applied to
exercise his or her option under sec. 9.

     8.5  Account Credits, General Assets and Taxes.  Each payroll deduction
made for a Participating Employee shall be credited to his or her Account as of
the pay day as of which the deduction is made. A Participating Employee's
payroll deductions will begin on the first payroll paid following the first
Business Day in the Offering Period. All payroll deductions shall be held by the
Company or by one, or more than one, Subsidiary (as determined by the Plan
Administrator) as part of the general assets of the Company or any such
Subsidiary, and each Participating Employee's right to the amounts credited to
his or her Account shall be those of a general and unsecured creditor. No
interest will accrue on a Participating Employee's contributions to this Plan.
The Company or such Subsidiary shall have the right to withhold on payroll
deductions to the extent such person deems necessary or appropriate to satisfy
applicable tax laws.

     8.6  No Cash Payments.  No Participating Employee may make any contribution
to his or her Account except through payroll deductions made in accordance with
this sec. 8, unless the Participating Employee is on leave of absence and his or
her employment relationship is treated as continuing intact as provided under
sec. 10.2, in which case the Participating Employee may elect to make cash
payments to the Company in lieu of payroll deductions during such leave of
absence in the amount of his or her authorized payroll deduction election.

                                    SEC. 9.

                               EXERCISE OF OPTION

     9.1  General Rule.  Each Participating Employee automatically shall be
deemed to exercise his or her option granted for each Offering Period on the
related Exercise Date for the purchase of as many whole shares of Stock subject
to such option as the balance credited to his or her Account as of that date
will purchase at the Purchase Price for such shares of Stock.

     9.2  Automatic Refund.  If a Participating Employee's Account has a
remaining balance after his or her option has been exercised as of an Exercise
Date under this sec. 9, such balance automatically shall be refunded to the
Participating Employee in cash (without interest) as soon as practicable
following such Exercise Date unless such balance is attributable to a fractional
share, in which event such Account balance will be carried forward (without
interest) to the immediately following Offering Period.

     9.3  Delivery of Stock.  As soon as practicable after each Exercise Date,
the Plan Administrator will cause shares of Stock issued upon exercise of
Participating Employee's option to be registered in book-entry form in the
Participating Employee's name. The Recordkeeper shall record the purchase of
Stock to a separate bookkeeping account established and maintained by the
Recordkeeper for the Participating Employee (the Participating Employee's "Share
Account"). The Recordkeeper shall provide periodic statements to each
Participating Employee or former Participating Employee of the number of shares
of Stock held for his or her Share Account and of the dividends paid on those
shares. A Participating Employee or former Participating Employee may request
the Recordkeeper deliver to the Participating Employee or former Participating
Employee certificates representing all of the shares of Stock credited to his or
her Share Account. Such certificates shall be provided at the Participating
Employee's or former Participating Employee's expense. Any request for a
certificate shall be treated as a request for Stock certificates for all shares
of Stock credited to the Participating Employee's or former Participating
Employee's Share Account. No Participating Employee (or any person who makes a
claim through a Participating Employee) shall have any interest in any shares of
Stock subject to an option until such option has been exercised and the related
shares of Stock actually have been registered.

                                       5
<PAGE>

                                    SEC. 10.

                           TERMINATION OF EMPLOYMENT

     10.1  General Rule.  If a Participating Employee's employment as an
Eligible Employee terminates on or before the Exercise Date for an Offering
Period for any reason whatsoever, his or her Account shall be distributed as if
he or she had elected to withdraw his or her Account in cash under sec. 8.4
immediately before the date his or her employment had so terminated. However, if
a Participating Employee is transferred directly between the Company and a
Subsidiary or between one Subsidiary and another Subsidiary while he or she has
an Stock Purchase Form election in effect, his or her employment shall not be
treated as terminated merely by reason of such transfer and any such Stock
Purchase Form election shall (subject to all the terms and conditions of this
Plan) remain in effect after such transfer for the remainder of such Offering
Period.

     10.2  Leaves of Absence.  For purposes of sec. 10.1, a Participating
Employee's employment relationship will be treated as continuing intact while
the individual is on military leave, sick leave, or other bona fide leave of
absence if the period of such leave does not exceed 3 months, or if longer, so
long as the individual's right to reemployment with the Company or a Subsidiary
is provided either by statute or by contract.

                                    SEC. 11.

                                TRANSFERABILITY

     Neither the balance credited to a Participating Employee's Account nor any
rights to the exercise of an option or to receive shares of Stock under this
Plan shall be transferable other than by will or by the laws of descent and
distribution, and any option shall be exercisable during a Participating
Employee's lifetime only by the Participating Employee.

                                    SEC. 12.

                                   ADJUSTMENT

     The number, kind or class (or any combination thereof) of shares of Stock
reserved under sec. 3, and the Purchase Price of such shares of Stock as well as
the number, kind or class (or any combination thereof) of shares of Stock
subject to grants under this Plan shall be adjusted by the Plan Administrator in
an equitable manner to reflect any change in the capitalization of the Company,
including, but not limited to such changes as stock dividends or stock splits.

                                    SEC. 13.

                             CORPORATE TRANSACTIONS

     In the event of (1) a merger, consolidation or other corporate transaction
as a result of which shareholders of the Company receive cash, stock or other
property in exchange for their Stock or (2) a proposed liquidation or
dissolution of the Company, any Offering Period then in progress will be
shortened, and the Exercise Date for such Offering Period accelerated, to a
specified date before such corporate transaction, liquidation or dissolution,
unless the successor entity agrees to assume the Company's obligations under
this Plan.

                                    SEC. 14.

                            SECURITIES REGISTRATION

     As a condition to the receipt of shares of Stock under this Plan, an
Eligible Employee shall, if so requested by the Company, agree to hold such
shares of Stock for investment and not with a view of resale or distribution to
the public and, if so requested by the Company, shall deliver to the Company a
written statement satisfactory to the Company to that effect. Furthermore, if so
requested by the Company, the

                                       6
<PAGE>

Eligible Employee shall make a written representation to the Company that he or
she will not sell or offer for sale any of such Stock unless a registration
statement shall be in effect with respect to such Stock under the 1933 Act and
any applicable state securities law or the Eligible Employee shall have
furnished to the Company an opinion in form and substance satisfactory to the
Company of legal counsel satisfactory to the Company that such registration is
not required. Any certificates representing shares of Stock issued pursuant to
this Plan may at the discretion of the Company bear a legend to the effect that
such Stock has not been registered under the 1933 Act or any applicable state
securities law and that such Stock cannot be sold or offered for sale in the
absence of an effective registration statement as to such Stock under the 1933
Act and any applicable state securities law or an opinion in form and substance
satisfactory to the Company of legal counsel satisfactory to the Company that
such registration is not required.

                                    SEC. 15.

                            AMENDMENT OR TERMINATION

     This Plan may be amended by the Board or the Committee from time to time to
the extent that the Board or the Committee deems necessary or appropriate in
light of, and consistent with, sec. 423 of the Code, and any such amendment
shall be subject to the approval of the Company's shareholders to the extent
such approval is required under sec. 423 of the Code or to the extent such
approval is required to satisfy any requirements under other applicable law. The
Board or the Committee also may terminate this Plan or any offering made under
this Plan at any time; provided, however, the Board or the Committee shall not
have the right to modify, cancel, or amend any option outstanding after the
beginning of an Offering Period unless (1) each Participating Employee consents
in writing to such modification, amendment or cancellation, (2) such
modification only accelerates the Exercise Date for the related Offering Period
or (3) the Board or the Committee acting in good faith deems that such action is
required under applicable law.

                                    SEC. 16.

                                 MISCELLANEOUS

     16.1  Shareholder Rights.  No Participating Employee shall have rights as a
shareholder of the Company as a result of the grant of an option until such
option has been exercised and the related shares of Stock actually have been
registered.

     16.2  No Contract of Employment.  The grant of an option to a Participating
Employee under this Plan shall not constitute a contract of employment and shall
not confer on a Participating Employee any rights upon his or her termination of
employment.

     16.3  Withholding.  Each option shall be made subject to the condition that
the Participating Employee consents to whatever action the Plan Administrator
directs to satisfy the federal and state tax withholding requirements, if any,
that the Plan Administrator in its discretion deems applicable to the exercise
of such option.

     16.4  Notice of Disqualifying Disposition.  A Participating Employee or
Former Participating Employee shall notify the Company if within two years after
the date of grant of his or her option for an Offering Period, the Participating
Employee or former Participating Employee disposes of shares of Stock acquired
on the related Exercise Date that are represented by certificates which have
been delivered by the Recordkeeper. Such notice shall state the date of
disposition, the number of shares disposed of, the nature of the disposition and
the price, if any, received for the shares upon disposition.

     16.5  Construction.  All references to sections (sec.) are to sections
(sec.) of this Plan unless otherwise indicated. This Plan shall be construed
under the laws of the State of Delaware. Finally, each term set forth in sec. 2
shall have the meaning set forth opposite such term for purposes of this Plan
and, for purposes of such definitions, the singular shall include the plural and
the plural shall include the singular.

                                       7
<PAGE>

     16.6  Rule 16b-3.  The Plan Administrator shall have the right to amend any
option to withhold or otherwise restrict the transfer of any Stock or cash under
this Plan to an Eligible Employee as the Plan Administrator deems appropriate in
order to satisfy any condition or requirement under Rule 16b-3 to the extent
Rule 16 of the 1934 Act might be applicable to such grant or transfer.

     IN WITNESS WHEREOF, the Company has caused its duly authorized officer to
execute this Plan to evidence its adoption of this Plan.

                                          METAL MANAGEMENT, INC.

                                          By:
                                            ------------------------------------

Date:

                                       8exv10w1

 

EXHIBIT 10.1

Lease,
entered into as of September 13, 2005, by and between LaSalle
National Bank and
 Trust Company of Chicago, as Trustee
under Trust Agreement dated June 26, 1997 and
known as
Trust Number 123103-06 and Home Products International, Inc.

 

 

MIDWAY BUSINESS CENTER

CHICAGO, ILLINOIS

LEASE

BETWEEN

LA SALLE BANK, NA

OF CHICAGO, as Trustee under Trust Agreement dated June 26, 1997

and known as Trust Number 123103-06,

Landlord

AND

Home Products International, Inc.

Tenant

 

 

MIDWAY BUSINESS CENTER

LEASE

     THIS
LEASE (“Lease”) is entered into as of the
29th day of July 2005 by and between LaSalle
National Bank and Trust Company of Chicago, as Trustee under Trust Agreement dated June 26, 1997
and known as Trust Number 123103-06 (together with its successors and assigns, “Landlord”) and Home
Products International, Inc., a Delaware corporation (together with its permitted successors and
assigns, “Tenant”).

1.FUNDAMENTAL LEASE TERMS. Certain fundamental lease terms (the “Fundamental Lease Terms”) are
set forth below in this Section 1:

	 	 	 	 	 	 	 	 	 
	 

	 	 	1.1	 	 	Building and Address:
	 	5501 and 5455 S. Archer Avenue, Unit A and
5350 S. Cicero Avenue, Chicago, IL 60638
	 
	 	 	 	 	 	 	 	 
	 

	 	 	1.2	 	 	Tenant:
	 	Home Products International, Inc.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	1.3	 	 	Tenant’s Notice Address,

Telephone and Facsimile No.:
	 	885 North Chestnut Street

Seymour, Indiana 47274

Phone: (812) 522- 5130 Ext. 3403

Fax: (812) 523- 2258
	 
	 	 	 	 	 	 	 	 
	 

	 	 	1.4	 	 	Landlord:
	 	LaSalle Bank and Trust Company of Chicago,
as Trustee under Trust Agreement dated June
26, 1997 and known as Trust Number 123103-06
	 
	 	 	 	 	 	 	 	 
	 

	 	 	1.5	 	 	Landlord’s Notice Address:
	 	c/o New Management, Ltd.

212 N. Sangamon Street

Suite 1- A

Chicago, IL 60607

Attn: Property Manager
	 
	 	 	 	 	 	 	 	 
	 

	 	 	1.6	 	 	Premises:
	 	Approximately 205,077 square feet located at
the Midway Business Center in Chicago,
Illinois, as shown on the plan attached hereto
and made a part hereof as Exhibit A and
identified as (i) 5501 S. Archer Avenue, (ii)
5455 S. Archer Avenue, Unit C- 2, Space A,
(iii) 5507 S. Archer Avenue, (iv) 5350 S.
Cicero Avenue, and (v) 5350 S. Cicero
Avenue, Chicago, IL 60638
	 
	 	 	 	 	 	 	 	 
	 

	 	 	1.7	 	 	Initial Term:
	 	10 years

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	1.8	 	 	Option Term:	 	Tenant shall have three (3) Five (5) year
options beginning at the end of the initial lease
term.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	1.9	 	 	Rent Commencement Date:	 	October 1, 2005
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	1.10	 	 	Lease Commencement Date:	 	August 1, 2005
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	1.11	 	 	Rent:
	 	Lease Period:
	 	Monthly Base Rent :

	 

	 	 	 	 	 	 	 	08/01/05- 09/30/05
	 	$	 .00	 
	 

	 	 	 	 	 	 	 	10/01/05- 07/31/06
	 	$	52,636.43	 
	 

	 	 	 	 	 	 	 	08/01/06- 09/30/06
	 	$	 .00	 
	 

	 	 	 	 	 	 	 	10/01/06- 07/31/07
	 	$	53,661.82	 
	 

	 	 	 	 	 	 	 	08/01/07- 09/30/07
	 	$	 .00	 
	 

	 	 	 	 	 	 	 	10/01/07- 07/31/08
	 	$	54,687.20	 
	 

	 	 	 	 	 	 	 	08/01/08- 07/31/09
	 	$	55,883.48	 
	 

	 	 	 	 	 	 	 	08/01/09- 07-31-10
	 	$	56,908.87	 
	 

	 	 	 	 	 	 	 	08/01/10- 07/31/11
	 	$	58,105.15	 
	 

	 	 	 	 	 	 	 	08/01/11- 07/31/12
	 	$	59,301.43	 
	 

	 	 	 	 	 	 	 	08/01/12- 07/31/13
	 	$	60,497.72	 
	 

	 	 	 	 	 	 	 	08/01/13- 07/31/14
	 	$	61,694.00	 
	 

	 	 	 	 	 	 	 	08/01/14- 07/31/15
	 	$	62,890.28	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	1.12	 	 	Option Term Rent:	 	Option Term Base Rent shall be at the rate equal to 102.0% of the Base Rent applicable
during the final Lease Year of the Initial Term
or Option Term as the case may be. Rent
during the Option Term shall escalate yearly at
the rate of 102.0% above the previous Lease
Year’s Base Rent.
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	1.13	 	 	Security Deposit:	 	$62,890.00
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	1.14	 	 	Tenant’s Proportionate Share:	 	15.76%
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	1.15	 	 	Permitted Use:	 	Warehouse and related office
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	1.16	 	 	Brokers:	 	Paine-Wetzel and Epic-Savage

2.DEFINED TERMS

     2.1
Affiliate: means any person or entity controlling controlled by or under common control
with Tenant. For purposes hereof, “control” shall mean the ownership of not less than fifty percent
(50%) of the economic ownership interests in an entity, along with the power to control the
management and policy- making decisions of such entity.

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     2.2 Alteration: means any alteration, decoration, improvement or addition to the
Premises, or installation of any utility, mechanical, communication or alarm system in the
Premises.

     2.3 Calendar Year: means the twelve (12) month period January through December of
any year (or portion thereof).

     2.4 Intentionally Omitted.

     2.5 Center: means the Midway Business Center.

     2.6 HPI: means Home Products International, Inc.

     2.7 City: means the City of Chicago.

     2.8 Events of Bankruptcy: means the occurrence of any one or more of the following
events or circumstances:

	 	(a)	 	If Tenant shall file in any court a voluntary petition in bankruptcy or insolvency or
for reorganization within the meaning of the Federal Bankruptcy Code, or for arrangement
within the meaning of such Code (or for reorganization or arrangement under any future
bankruptcy or reform act for the same or similar
relief), or for the appointment of a receiver or trustee for all or a portion of the
property of Tenant, or
	 
	 	(b)	 	If an involuntary petition shall be filed against Tenant, and such petition shall not
be vacated or withdrawn within thirty (30) days after the date of filing thereof, or
	 
	 	(c)	 	If Tenant shall make an assignment for the benefit of creditors, or
	 
	 	(d)	 	If Tenant shall be adjudicated a bankrupt or shall admit in writing an inability to
pay its debts as they become due, or
	 
	 	(e)	 	If a receiver shall be appointed for the property of Tenant by order of a court of
competent jurisdiction (except where such receiver shall be appointed in an involuntary
proceeding, and be withdrawn within thirty (30) days from the date of his appointment).

     2.9 Events of Force Majeure: means any accident, inability to obtain fuel or materials, strike
or lockout (whether legal or illegal), act of God or other event, occurrence or circumstance beyond
Landlord’s reasonable control.

     2.10 Hazardous Materials: means (i) substances defined as “hazardous substances”, “toxic
substances” or “hazardous wastes” in the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended (42 U.S.C., Sec. 9061, et. seq.), the Hazardous Materials
Transportation Act (49 U.S.C., Sec. 1802), the Resource Conservation and Recovery Act (42 U.S.C.,
Sec. 6901 et. seq.), the Toxic Substances Control Act of 1976, as

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amended (15 U.S.C., Sec. 2601, et. seq.) or in any other federal, state or local laws and
ordinances now or hereafter in effect governing similar matters, or in any regulations adopted or
publications promulgated pursuant thereto (collectively, “Environmental Laws”); (ii) asbestos and
asbestos containing materials; and (iii) petroleum and petroleum based products.

     2.11 Land: means the land on which the Building is located, which Land is legally described on
Exhibit C attached hereto.

     2.12 Landlord’s Representative: means Property Manager.

     2.13 Laws: means all laws (including, without limitation, Environmental Laws); statutes
(including, without limitation, the Americans with Disabilities Act); codes; ordinances;
governmental rules, regulations or requirements; judicial decrees or orders; administrative rulings
or orders; covenants, conditions or restrictions of record of which Tenant has received copies; and
governmental permits, licenses, approvals or certificates (including, without limitation, any
certificate of occupancy for the Premises or the Building) now or hereafter in effect and
applicable to the Premises, the Property or the use, occupancy or operation of the Premises or the
Property.

     2.14 Lease Year: means each consecutive twelve (12) month period beginning with the Lease
Commencement Date, except that if the Lease Commencement Date is other than the first day of a
calendar month, then the first Lease Year shall be the period
from the Lease Commencement Date through the date twelve (12) months after the last day of the
calendar month in which the Lease Commencement Date occurs, and each subsequent Lease Year shall be
the period of twelve (12) months following the last day of the prior Lease Year.

     2.15 Material Alteration: means any Alteration which: (i) affects the roof or structural
components of the Building, (ii) affects any HVAC, utility or mechanical systems or equipment in
the Building, and (iii) costs more than $25,000 to complete (including all labor and material
costs).

     2.16 Mortgagee: means the mortgagee, from time to time, under any mortgage granted by Landlord
and now or hereafter encumbering the Property or any portion thereof.

     2.17 Property: means collectively, the Land, the Building and all other buildings and
improvements located in the Center, which Property is located at the southwest corner of South
Cicero Avenue and South Archer Avenue, Chicago, Illinois.

     2.18 Rent: means collectively, Base Rent, Additional Rent and all other amounts to be paid by
Tenant to Landlord under this Lease.

     2.19 Taxes: means all real estate taxes and assessments and similar governmental charges,
special or otherwise, direct or indirect, ordinary or extraordinary (including, without limitation,
those levied or assessed by special taxing districts now or hereafter created) levied or assessed
upon or with respect to the Property and/or Landlord’s leasehold interest in the Property, and ad
valorem taxes for Landlord’s personal property used in connection therewith. Should any political
subdivision or governmental authority having jurisdiction over the Property, impose a tax,
assessment, charge or fee which Landlord shall be required to pay, either by way of

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substitution for such real estate taxes and ad valorem personal property taxes, or in addition to
such real estate taxes and ad valorem personal property taxes, or impose an income or franchise tax
or a tax on rents which may be in addition to or in substitution for a tax levied against the
Property and/or Landlord’s personal property used in connection with the Property, such taxes,
assessments, fees or charges shall be deemed to constitute Taxes hereunder. “Taxes” shall also
include all reasonable fees and costs incurred by Landlord in connection with any appeal or protest
for the purpose of reducing or limiting the increase in any Taxes, provided that (and only to the
extent that) such appeal or protest is successful. “Taxes” shall not include inheritance, income,
transfer or franchise taxes paid by Landlord, other than as described above. In determining the
amount of Taxes for any Calendar Year, the amount of special assessments to be included shall be
limited to the amount of the installment (plus any interest payable thereon) of such special
assessment which would have been required to have been paid during such year if Landlord had
elected to have such special assessment paid over the maximum period of time permitted by law,
regardless of whether Landlord made such election. Except as provided in the preceding sentence,
all references to Taxes “for” a particular Calendar
Year shall be deemed to refer to non-delinquent Taxes actually paid (or if unpaid which were due
and payable) by Landlord during such Calendar Year.

     2.20 Tenant’s Representative: Richard Simpson

3.
AGREEMENT TO LEASE.

     3.1 Landlord hereby leases to Tenant, and Tenant hereby accepts and leases from Landlord, the
Premises for the Initial Term set forth in Section 1.7, and any Option Term for which Tenant has
properly exercised its Option to Renew, subject to the terms and conditions set forth in this
Lease.

     3.2 Tenant may exercise its option to renew the term of this Lease for each Option Term set
forth in Section 1.8 and the Base Rent set forth in Section 1.11 by giving Landlord written notice
provided no later than 180 days prior to the expiration of the Initial Term of this Lease (or prior
Option Term, as the case may be. The option to renew shall be null and void, and any attempted
exercise thereof shall be of no effect, if as of the date of such notice, an Event of Default (as
hereinafter defined) has occurred and is continuing.

     3.3 The Landlord shall have the right to terminate this Lease Agreement at any time after the
end of the fifth Lease Year only if (i) the Landlord has “firm plans” to redevelop the Property and
to convert to a non-industrial use, and (ii) provided the Landlord delivers to the Tenant in
writing notice of such termination not less than one (1) year prior to the date of such
termination. As used herein, the Landlord shall be deemed to have “firm plans” in the event
Landlord has received necessary site plan and/or zoning approvals as necessary to redevelop the
Property to any such non-industrial use in accordance with all Laws. Notwithstanding anything
contained herein to the contrary, Tenant, at Tenant’s option, shall have no obligation to vacate
the Premises (and the term of this Lease shall so continue) until a date which is thirty (30) days
prior to such date as Landlord shall commence construction or demolition work with respect to the
Property.

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     3.4 In the event that Landlord shall receive a Bona Fide Offer (as hereinafter defined) to
lease any portion of the Building (other than the Premises) at any time and from time to time
during the term of this Lease or any Option Term from any person or entity, Landlord shall so
notify Tenant together with a true and correct copy of said Bona Fide Offer. For purposes hereof,
a “Bona Fide Offer” shall be deemed to be a written offer to lease such portion of the Building by
a person or entity that is not related or affiliated with Landlord which Landlord intends to accept
(subject to this paragraph). Tenant may, at Tenant’s option and within ten (10) days after receipt
of Landlord’s notice of said Bona Fide Offer and receipt of a copy thereof, offer to lease the
portion of the Building governed by such Bona Fide Offer upon the same rental rate set forth in
such offer, subject to the terms and conditions of this Lease, in which event, Landlord shall lease
the additional portion of the Building to Tenant upon said terms and conditions and at said rental
rate. In such event, the parties shall enter into a written amendment to this Lease as necessary to
reflect that such additional portion of the Building constitutes a part
of the Premises and the additional terms and conditions and rental rate governing such
additional space. Failure of Tenant to exercise such right prior to the end of such ten (10) day
period shall be deemed to be Tenant’s election not to exercise its rights hereunder and Landlord
shall have the right to enter into a lease with any such person on the same terms and conditions
set forth in the Bona Fide Offer. Tenant’s election not to exercise its right of first refusal
hereunder shall not prejudice Tenant’s rights hereunder as to any further Bona Fide Offer. The
terms and conditions contained in this paragraph shall be binding upon the heirs, successors and
assigns of Landlord. Tenant’s rights hereunder are subject to any and all option, right of first
offer or rights of first refusal rights granted to existing tenants of the Building as of the date
hereof.

4. RENT.

     4.1 Place and Manner of Payment. Tenant shall pay Rent to Landlord at the address set forth in
Section 1.5 hereof or to such other person or at such other address as Landlord may designate from
time to time, without offsets or deductions of any kind whatsoever (except as otherwise expressly
set forth under the terms of this Lease), at the times and in the manner set forth in this Lease.
Tenant’s covenant to pay Rent shall be independent of every other covenant in this Lease.

     4.2 Rent. From and after the Rent Commencement Date as defined in Section 1.9, Tenant shall
pay annual Base Rent in the respective amounts set forth in Section 1.11 hereof. The Base Rent
payable for each Lease Year shall be paid in twelve (12) equal monthly installments, paid in
advance not later than the first (1st) day of each month. If the Rent Commencement Date is other
than the first (1st) day of a month, then the installment of Base Rent for such initial month shall
be prorated on a per diem basis for such fractional period and shall be paid on the Rent
Commencement Date unless otherwise noted.

     4.3 Additional Rent. In addition to paying the Base Rent, from and after the Lease
Commencement Date Tenant shall pay as “Additional Rent” which shall be due and payable within
thirty (30) days of Landlord’s written request therefor the amounts determined as set forth below.

	 	 	 	 	 
	 

	 	Taxes:
	 	Tenant will pay Tenant’s Proportionate Share of all increases in Taxes
relating to the

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	 	 	 	Property over the Taxes paid with respect to
the Property during the 2006 base Calendar
Year (i.e., 2005 Taxes payable in 2006).
	 
	 	 	 	 
	 

	 	Property Insurance:
	 	Tenant will pay Tenant’s Proportionate Share
of all increase in property insurance premiums
relating to the Property over the insurance
premiums with respect to the Property paid
during the 2006 base Calendar Year.

     4.4
Rent Abatement. Landlord shall provide the Tenant with six months (6) months free Rent as
follows; Two months at the beginning of each of the first (3) Lease Years beginning with the Lease
Year commencing August 1, 2005.

5. LANDLORD’S SERVICES AND UTILITIES.

     5.1 As long as no Event of Default has occurred and is continuing under this Lease,
Landlord shall furnish the following services:

     (i) Repairs and maintenance (and if necessary, replacements) of air conditioning and heating
units providing service to the Premises. Notwithstanding anything contained herein to the
contrary, if any repairs, maintenance or replacements are necessitated by the negligence or willful
misconduct of Tenant, its agents, servants or employees, then the reasonable cost thereof shall be
billed directly to Tenant, and Tenant shall pay Landlord therefor within fifteen (15) days after
receiving such bill;

     (ii) Domestic water service in common with other tenants. In the event that water is not
separately metered for the Premises and Tenant uses a materially greater amount of water than the
usual amount used in similar buildings, then Landlord may bill Tenant for the additional cost of
such increased use and for the cost of determining such increased use, and Tenant shall pay
Landlord therefor within fifteen (15) days after receiving such bill. If as of the Rent
Commencement Date, water service is not separately metered for the Premises, Landlord reserves the
right to install separate meters for the Premises at Tenant’s sole cost and expense during the Term
of this Lease.

     (iii) Dock levelers. The Landlord shall deliver the Premises with the minimum of twenty (20)
working dock levelers out of existing dock areas which are reserved for the exclusive use of
Tenant. Landlord is not obligated to create new dock areas only to repair or replace existing
equipment for tenant’s occupancy. During the term hereof, it shall be the Tenant’s responsibility
to maintain and or replace levelers at Tenant’s sole expense;

     (iv) Sanitary sewer service in common with other tenants. If Landlord determines that
additional sanitary sewer capacity is required or that a separate sanitary sewer line servicing the
Premises exclusively is or may be prudent based on the nature of the
Permitted Use (e.g., excessive
amounts or unique nature of discharge from the Premises), Landlord may increase such capacity
and/or install a separate sanitary sewer

7

 

line servicing the Premises, all at Tenant’s sole cost (which cost shall include a reasonable
administrative fee payable to Landlord in connection therewith). Tenant shall pay any such costs to
Landlord within fifteen (15) days after being billed therefor without mark-up. If a separate
sanitary sewer line is installed serving the Premises and such service is not separately metered to
the Premises, then Landlord may bill Tenant for the
cost of sanitary sewer service furnished to the Premises through such separate line, and Tenant
shall pay Landlord therefor within fifteen (15) days after receiving such bill.

     (v) Maintenance in reasonable repair of exterior lighting, driveways and sidewalks; regular
mowing of grass, trimming, weed removal, and general landscape maintenance as reasonably necessary;
removal of snow and ice from the driveways and sidewalks as reasonably necessary.

     (vi) Coordination of any repairs and other maintenance of any railroad tracks serving the
Building and if Tenant uses such rail tracks, Tenant shall reimburse Landlord or the railroad
company from time to time within ten (10) days of written request, as Additional Rent, for its
Share (as hereinafter defined) of the actual costs (without markup) of such repair and maintenance
and any other sums specified in any agreement to which Landlord or Tenant is a party respecting
such tracks. Such costs to be borne annually by all tenants in the Building using such rail
tracks, based upon the actual number of rail cars shipped and received by such tenant during each
such calendar year during the term in proportion to all rail cars shipped or received by all
tenants and occupants of the Building.

     5.2 Tenant shall pay for all water, gas, heat, light, power, telephone, sewer, and other
utilities and services used on or from the Premises, including without limitation, Tenant’s share
as determined by Landlord for the use of any central station signaling system installed in the
Premises or the Building together with any taxes, penalties, and surcharges or the like pertaining
thereto and any maintenance charges for utilities. Without limiting the foregoing, Tenant shall be
responsible for bringing telephone lines from the feed connection located in the Center to the
Premises. Subject to Landlord’s obligations with respect to the Premises pursuant to Exhibit B,
Tenant shall thereafter furnish all electric light bulbs, tubes and ballasts, Tenant shall pay such
proportion of all charges jointly metered with other premises as determined by Landlord, in its
reasonable discretion. Any such utility charges paid by Landlord and assessed against Tenant shall
be due to Landlord within ten (10) days and shall be Additional Rent hereunder.

     5.3 Landlord shall not be obligated to provide any services other than those expressly set
forth above in this Section. Landlord does not warrant that any of the services mentioned above
will be free from Events of Force Majuere. Any such interruption of service shall never be deemed
an eviction (actual or constructive) or a disturbance of Tenant’s use and possession of the
Premises or any part thereof and shall never render Landlord liable to Tenant for damages or
relieve Tenant from performance of Tenant’s obligations under this Lease; provided, that in the
event any such interruption shall prohibit or materially interfere with Tenant’s use and occupancy
of all or portions of the Premises for more than ten (10) consecutive days, then Tenant shall have
the right to abate Rent with respect to such portions of the Premises for such periods of
interruption.

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6. SECURITY DEPOSIT. As additional security for the full and prompt performance by Tenant of all
its obligations hereunder, Tenant has upon execution of this Lease paid to Landlord the amount set
forth in Section 1.13 hereof (the “Security Deposit”), which amount may be applied by Landlord for
the purpose of curing any Event of Default by Tenant under this Lease. Landlord shall be permitted
to commingle the Security Deposit with Landlord’s general funds; provided, however, in no event
shall such Security Deposit be deemed the property of Landlord. Landlord shall not be required to
pay any interest on the Security Deposit. If any portion of the Security Deposit is applied to cure
an Event of Default by Tenant, Tenant shall, within five (5) days after written demand therefor,
deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original
amount, and Tenant’s failure to do so shall be a breach of this Lease. If no Event of Default has
occurred hereunder or if Landlord has not applied the full amount of the Security Deposit to said
Event of Default, then the Security Deposit, or any portion thereof not so applied by Landlord,
shall be paid in cash to Tenant when all Rent payments due hereunder have been made, and Tenant
shall have vacated the Premises in accordance with the provisions of this Lease. The Security
Deposit is not an advance payment of Rent or an account of Rent, or any part or settlement thereof,
or a measure of Landlord’s damages. In the event Landlord transfers all or any part of its
interest in the Building or this Lease, Landlord shall have the right to transfer the Security
Deposit to the transferee. Upon such transfer, Tenant shall thereby release Landlord from all
liability or obligation for the return of the Security Deposit, which shall be promptly returned to
the Tenant within thirty days (30) after vacating the premises.

7. USE. Tenant shall use and occupy the Premises for the Permitted Use only and for no other
purpose, unless otherwise expressly agreed in writing by Landlord. Tenant shall not use or occupy
the Premises, or permit the Premises to be used or occupied contrary to or in violation of any
Laws, or in any manner which would: (i) cause structural injury to the Premises or the Building;
(ii) invalidate any insurance policy affecting the Premises or the Building; (iii) increase the
amount of premiums for any insurance policy affecting the Premises or the Building; (iv) may be
dangerous to persons or property; (v) create a nuisance, or disturb any other occupant of the
Building; or (vi) injure the reputation of the Building.

8. CONDITION OF PREMISES; LANDLORD’S WORK. Tenant is leasing the Premises in “as is” condition,
with exception, that prior to the Lease Commencement Date Landlord will improve the Premises in
accordance with the provisions of Exhibit B hereto as specifically contained herein. The Landlord
will deliver the Premises to the Tenant in a broom clean condition in compliance with all Laws.
The parties agree that notwithstanding anything contained herein to the contrary, Tenant shall have
no obligation to repair, replace or remediate any portion of or condition of the improvements which
does not comply with all Laws in effect as of the Lease Commencement Date.

9. EARLY POSSESSION. If Tenant takes possession of all or any part of the Premises prior to the
Lease Commencement Date, all of the covenants and conditions of this Lease shall be binding upon
the parties hereto the same as if the Lease Commencement Date had been fixed as of the date when
Tenant took such possession; provided Tenant shall have no obligation to pay Rent until the Rent Commencement Date.

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	10.	 	ASSIGNMENT AND SUBLETTING.

     10.1 Prohibitions. Tenant shall not, without the prior written consent of Landlord: (a)
assign, convey or mortgage this Lease or any interest hereunder, other than to an Affiliate; (b)
permit any assignment of, or lien upon this Lease or Tenant’s interest herein by operation of law
or otherwise; (c) sublet the Premises or any part thereof, other than to an Affiliate; or (d)
permit the use of the Premises by any parties other than Tenant, its agents and employees.
Landlord shall not unreasonably withhold its consent to any such assignment or subletting. Tenant
acknowledges and agrees that Landlord has a vital interest in the nature, variety and location of
tenants in the Building as a who le and that Landlord’s right to withhold its consent to any
proposed assignment or subletting for reasonable business concerns and purposes is a material
consideration for the rental rate and terms contained in this Lease. Neither an assignment or
subletting to an Affiliate, nor Landlord’s consent to any other assignment, subletting or transfer,
nor Landlord’s election to accept any assignee, sublessee or transferee as Tenant hereunder, shall
release the original Tenant from any covenant or obligation under this Lease. Landlord’s consent
to any assignment or subletting shall not constitute a waiver of Landlord’s right to consent to any
future assignment or subletting.

     10.2 Notice to Landlord. Tenant shall give Landlord written notice of any proposed sublease
or assignment (including, without limitation, a proposed sublease, or assignment to an Affiliate)
at least fifteen (15) days prior to the effective date of such proposed sublease or assignment.
Such notice shall contain the name of the proposed sublessee or assignee, a copy of the proposed
sublease or assignment document, a description of the intended use of the Premises by the proposed
sublessee or assignee, and such other information as Landlord may reasonably request to evaluate
the character, reputation and creditworthiness of the proposed assignee or sublessee and the
proposed use of the Premises by such proposed assignee or sublessee. In connection with a sublease
or assignment to an Affiliate, such notice shall be accompanied by reasonable evidence that the
proposed sublessee or assignee is an Affiliate.

     10.3 Sharing of Profits. Without limitation of any other provision hereof, should Tenant
propose to assign this Lease or sublet the Premises to any person or entity other than an
Affiliate, and the rent payable to Tenant thereunder by such sublesee or assignee shall exceed the
Rent payable by Tenant hereunder, then Tenant agrees to pay as Additional Rent hereunder an amount
equal to fifty percent (50%) of the “profits” actually received by Tenant from the assignment or
sublease. For purposes of this Section, “profits” shall mean the amount of any and all
consideration received by Tenant in connection with such sublease or assignment, minus the amount
of Rent to be paid by Tenant under this Lease for the portion of the Term and the portion of the
Premises covered by such sublease or assignment, minus all reasonable, out-of-pocket costs incurred
by Tenant in connection with such assignment or sublease.

     10.4 Transfers of Ownership Interests in Tenant. If Tenant is a partnership or a corporation
whose partnership interests or stock are not publicly traded, any event or transaction or series of
events or transactions resulting in a transfer of control of Tenant shall be deemed to be a
voluntary assignment of this Lease by Tenant and shall be subject to
the provisions of this Section
10. For purposes of this Section 10.4, the term “control” shall have the meaning set forth in
Section 2.1 hereof. Tenant shall pay to Landlord as Additional Rent hereunder, all reasonable costs
and expenses (including, without limitation, reasonable attorneys’ fees) paid or incurred by

10

 

Landlord in connection with any proposed assignment or subletting hereunder, regardless of whether
Landlord withholds or grants its consent to such assignment or subletting.

	11.	 	REPAIRS AND ALTERATIONS.

     11.1 Tenant’s Repair Obligations. Subject to Section 11.4 hereof Tenant will, at its own
expense, keep the Premises in good condition and repair during the Term as follows: (a) repairs to
all heating, ventilating or air conditioning systems or units and security systems which solely
serve the Premises (i.e. are not systems or units also serving other tenants or premises in the
Building), (b) repairs of all damage to the Premises (including, without limitation, dock levelers)
except to the extent caused by Landlord or its agents, (c) repairs (or replacement) of all damaged
or broken glass, fixtures, improvements and appurtenances, and (d) repairs of all electrical and
plumbing systems in the Premises. If Tenant does not fulfill its
obligations under this Section
11.1, Landlord may, but need not, make such repairs and replacements, and Tenant shall pay Landlord
the cost thereof, plus an additional ten percent (10%) to cover Landlord’s overhead and related
expenses, forthwith upon being billed for same. Landlord may enter the Premises at all reasonable
times (and upon prior notice) to make such repairs and replacements and any other repairs,
alterations, improvements, and additions to the Premises or to the Building or to any equipment
located in the Building to the extent Landlord is obligated to so maintain such items under the
terms of this Lease. Tenant shall not be obligated to repair or replace the roof or any structural
elements in the Premises. Notwithstanding anything contained herein to the contrary, if any damage
to the Property or to the Premises or to any equipment thereon or appurtenance thereto results from
any negligent act or omission of Tenant or of Tenant’s contractors, agents or employees, Landlord
shall notify Tenant thereof and in the event Tenant fails to repair such damage within a
reasonable time period then Landlord may, at Landlord’s option, repair such damage and Tenant
shall, upon demand by Landlord, reimburse Landlord forthwith for the total cost of such repairs,
plus an additional ten percent (10%) to cover Landlord’s overhead and related expenses.

     11.2 Prohibition on Material Alterations. Tenant shall not, without the prior written consent
of Landlord, make any Material Alterations. Landlord may withhold its consent to any Material
Alterations in its reasonable discretion. Tenant may, without obtaining Landlord’s consent, paint
and make minor decorative changes within the Premises (e.g., wallpaper and picture hanging).

     11.3 Performance of Alterations. The work necessary to make any Alterations shall be done by
employees of or contractors employed by Tenant and which are reasonably approved by Landlord, which
approval will not be unreasonably withheld, Tenant shall deliver to Landlord, for its review and
approval prior to commencing any such Material Alterations, copies of all contracts and
subcontracts related to such Material Alterations, and plans, working drawings and specifications
necessary to perform such work. Landlord’s review of Tenant’s plans, specifications or working
drawings shall impose no responsibility or liability on Landlord, and shall not constitute a
representation, warranty or guarantee by Landlord, with respect to the completeness, design,
sufficiency or compliance thereof with any Laws. All Alterations performed by Tenant or its
contractors shall be done in a first-class, workmanlike manner using only new and good grades of
materials and shall comply with all insurance requirements and all Laws. Tenant shall permit
Landlord to supervise all Alterations, and Landlord may charge a

11

 

supervising fee not to exceed ten percent (10%) of the total cost of the Alterations, including
without limitation, all labor and material costs, if Tenant’s employees or contractors perform the
Alterations. Tenant shall promptly pay to Tenant’s contractors, when due, the cost of all fees
upon completion of the Alterations, Tenant shall deliver to Landlord evidence of payment and full
and final waivers of all liens for labor, services or materials. Except to the extent caused by
Landlord’s gross negligence or willful misconduct, Tenant shall indemnify, defend and hold Landlord
and its partners and their respective officers, shareholders, directors, agents and employees
harmless from all claims, causes of action, liabilities, losses, costs, damages, liens and expenses
related to any Alterations, whether performed by or under the direction of Landlord, and whether
performed in compliance with this Section 11 or any other conditions imposed by Landlord.

     11.4 Landlord’s Repair Obligation. Landlord shall repair the structural elements of the
Building and the foundation and the roof at its sole cost and expense. Notwithstanding anything
contained in Section 11.1 to the contrary, in the event any component of the building systems,
including, without limitation, any HVAC, plumbing or electrical systems require replacement during
the term of this Lease and such replacement would constitute a capital expenditure in accordance
with generally accepted accounting principles, then Landlord shall replace such components at
Landlord’s sole cost and expense.

12. CERTAIN RIGHTS RESERVED BY LANDLORD. Landlord shall have the following rights, exercisable
without notice (except as expressly provided below) and without liability to Tenant for damage or
injury to property, person or business, and without effecting an eviction, constructive or actual,
or disturbance of Tenant’s use or possession of the Premises or giving rise to any claim for
set-off or abatement of Rent:

	 	(a)	 	To change the name or street address of the Building upon reasonable prior notice;
	 
	 	(b)	 	To install, affix and maintain all signs within and on the exterior of the Building
and on the Land;
	 
	 	(c)	 	Intentionally Omitted;
	 
	 	(d)	 	To show the Premises to prospective tenants at reasonable hours during the last six
(6) months of the Term and, if vacated during such year, to prepare the Premises for re-occupancy, and to show the Premises to prospective purchasers and lenders of the Building
at reasonable hours upon reasonable prior verbal notice at any time during the Term;
	 
	 	(e)	 	To retain at all times, and to use in appropriate instances, keys to all doors within
and into the Premises. No locks shall be changed without the prior written consent of
Landlord;
	 
	 	(f)	 	To decorate or to make repairs, alterations, additions, or improvements, whether
structural or otherwise, in and about the Building or the Property, or any part thereof,
and for such purposes to enter upon the Premises upon reasonable prior verbal notice
(except in an emergency, in which case no

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notice shall be necessary), and during the continuance of any such work, to temporarily
close roads, drives, doors, entryways, public space and corridors in the Building or on the
Property, and to interrupt or suspend temporarily Building services and facilities, all
without abatement of Rent or affecting any of Tenant’s obligations hereunder, so long as
the Premises are reasonably accessible; provided, however, in the event any interruption,
suspension or interference with the Building or Property shall prevent Tenant from using
all or any portions of the Premises for a period of ten (10) consecutive days, then Rent
shall abate with respect to such portions of the Premises for such period of interference
or interruption. Landlord agrees to use reasonable efforts to minimize the effect of any
such interference or interruption on Tenant’s use and occupancy of the Premises.

	 	(g)	 	To have and retain a paramount title to the Premises free and clear of any act of
Tenant purporting to burden or encumber it;
	 
	 	(h)	 	To grant to anyone the exclusive right to conduct any business or render any service
in or to the Property, provided such exclusive right shall not operate to exclude Tenant
from the Permitted Use;
	 
	 	(i)	 	To approve the location of equipment and articles in and about the Premises and the
Building so as not to exceed the legal live load; and
	 
	 	(j)	 	To prohibit the placing of vending or dispensing machines of any kind in or about the
Premises, except for vending or dispensing machines for the sole use of Tenant and its
employees.

13. COVENANT AGAINST LIENS. Tenant covenants and agrees not to suffer or permit any lien of
mechanics or materialmen to be placed against the Property or the Premises, and in the case of any
such lien attaching, to pay off and remove or bond over any such lien to Landlord’s satisfaction
within fifteen (15) days after the filing thereof. If any such lien attaches, and Tenant fails to
remove or bond over such lien to Landlord’s satisfaction within said 15-day period, Landlord may,
but shall not be obligated to, pay the amount necessary to remove such lien without being
responsible for making an investigation as to the validity or accuracy thereof, and the amount so
paid, together with all costs and expenses (including, without limitation, reasonable attorneys’ fees)
incurred by Landlord in connection therewith, shall be deemed Additional Rent hereunder, payable upon demand.
Notwithstanding anything contained herein to the contrary, Tenant shall have the right to contest
in good faith and with reasonable diligence, the validity of any such lien or claimed lien if
Tenant shall give to Landlord such security as may reasonably be deemed satisfactory to Landlord to
assure payment thereof and to prevent any sale, foreclosure, or forfeiture of the Premises, the
Building or the Property by reason of non-payment thereof, provided further, however, that on final
determination of the lien or claim of lien, Tenant shall immediately pay any judgment rendered,
with all proper costs and charges, and shall have the lien released and any judgment satisfied.

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14. WAIVERS AND INDEMNITIES.

     14.1 Waiver. To the extent not expressly prohibited by law, Tenant waives all claims it may
have against Landlord and its partners, and their respective officers, shareholders, directors,
agents and employees, for any damage to person or property or loss of business due to the Property,
the Premises or any part of either thereof or any appurtenances thereto or improvements thereon not
being in good condition or becoming out of repair, or due to the happening of any accident in or
about the Property or the Premises or due to any act or neglect of any tenant or occupant of the
Property or of any other person, including Landlord and its partners, and their respective
officers, shareholders, directors, agents and employees. This provision shall apply particularly
(but not exclusively) to damage caused by water, snow, frost, steam, sewage, gas, faucets and
plumbing fixtures, and shall apply without distinction as to the person whose act or neglect was
responsible for the damage and whether the damage was due to any of the causes specifically
enumerated above or to some other cause of an entirely different kind. Tenant further agrees that
all Tenant’s property upon the Premises shall be there at the risk of Tenant only, and that
Landlord shall not be liable for any damage thereto or theft thereof, unless due to gross
negligence or willful misconduct of the Landlord, its employees, contractors or agents.

     14.2 Indemnification. Except in the event caused by the gross negligence or willful
misconduct of Landlord or its employees, contractors or agents, Tenant hereby agrees to indemnify,
defend and hold harmless Landlord and its partners and their respective officers, shareholders,
directors, agents and employees against any claims or liability for injury or damage to person
(including accidental death) or property (or for loss or misappropriation of property) (i)
occurring in or about the Premises, or (ii) arising from any breach or default on the part of
Tenant under this Lease, or (iii) arising from any negligent act or omission of Tenant or any
employee, agent, servant, invitee or contractor of Tenant, or (iv) arising out of or related to
Tenant’s operations or activities on or use of the Premises or the Property, and from any cost
relating to any of the foregoing (including, without limitation, attorneys’ fees).

     14.3 No Implicit Waivers. No waiver of any condition expressed in this Lease shall be implied
by any neglect of Landlord to enforce any remedy on account of the violation of such condition
if such violation be continued or repeated subsequently, and no express waiver shall affect
any condition other than the one specified in such waiver and that one only for the time and
in the manner specifically stated. No receipt of moneys by Landlord from Tenant after
the termination in any way of the Term or of Tenant’s right of possession hereunder or
after the giving of any notice shall reinstate, continue or extend the Term or affect any notice
given to Tenant prior to the receipt of such moneys, it being agreed that after the service of
notice of the commencement of a suit or after final judgment for possession of the Premises,
Landlord may receive and collect any Rent due, and the payment of said Rent shall not waive or
affect said notice, suit or judgment.

15. DEFAULTS AND LANDLORD’S REMEDIES.

     15.1 Defaults. It shall be a default (“Event of Default”) under this Lease if: (i) default
shall be made in the payment of Rent or any installment thereof or in the payment of any other sum
required to be paid by Tenant under this Lease, or under the terms of any other agreement

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between Landlord and Tenant, and such default shall continue for ten (10) days; or (ii) default
shall be made in the performance of any of the other covenants or conditions which Tenant is
required to observe and perform under this Lease, and such default shall continue for thirty (30)
days after written notice to Tenant (unless such default shall give rise to a hazardous condition
requiring an immediate cure, in which case, no notice is necessary and Tenant must cure such
default immediately); provided, however, that Landlord shall not be entitled to exercise its
remedies on account of any default described in this clause (ii) if (a) such default cannot
reasonably be cured within thirty (30) days, and (b) Tenant commences to cure such default within
said thirty (30) day period and thereafter diligently and continuously proceeds with such cure, and
(c) Tenant cures such default within a reasonable period of time not to exceed ninety (90) days
after Landlord’s notice of such default; or (iii) the interest of Tenant in this Lease is levied on
under execution or other legal process, or (iv) an Event of Bankruptcy occurs, or (v) Tenant
dissolves or ceases to exist, or (vi) Tenant shall abandon or vacate the Premises during the Term
for more than thirty (30) consecutive days.

     15.2 Landlord’s Remedies. Upon an Event of Default under this Lease, Landlord at its option
may, without notice or demand of any kind to Tenant or any other person, exercise any one or more
of the following described remedies in addition to all other rights and remedies provided at law or
in equity:

	 	(a)	 	Landlord may terminate this Lease and the Term created hereby, in which event
Landlord may forthwith repossess the Premises and be entitled to recover forthwith as
damages a sum of money equal to all Rent accrued and unpaid for the period up to and
including the date of termination, plus as final and liquidated damages (and not as a
penalty), Landlord’s reasonable estimate of the amount of Rent that would be payable from
the date of such termination through the balance of the scheduled Term, less the fair
rental value of the Premises for said period (taking into consideration the time to relet
the Premises, and taking into consideration and reducing said fair rental value by,
the reasonable cost of reletting the Premises), plus any other sum of money and damages owed
by Tenant to Landlord.
	 
	 	(b)	 	Landlord may terminate Tenant’s right of possession and may repossess the Premises by
forcible entry or detainer suit or otherwise, without terminating this Lease, in which
event Landlord may, but shall be under no obligation to, relet the Premises for the
account of Tenant, for such rent and upon such terms as shall be satisfactory to Landlord.
For the purpose of such reletting, Landlord is authorized to make any repairs in or to the
Premises that may be necessary or appropriate, and Tenant shall, upon written demand, pay
the reasonable cost thereof. If Landlord shall fail or refuse to relet the Premises, or if
the Premises are relet and a sufficient sum shall not be realized from such reletting to
pay all of the costs and expenses (i) of such repairs, (ii) of such reletting (including,
without limitation, all brokerage, advertising, and legal expenses), and (iii) of the
collection of the rent accruing therefrom, and to satisfy the Rent provided for in this
Lease, then Tenant shall pay to Landlord as damages a sum

15

 

equal to the amount of the Rent reserved in this Lease for such period or periods, as such
Rent becomes due, or, if the Premises have been relet, Tenant shall satisfy and pay any
such deficiency upon demand therefor from time to time. Tenant agrees that Landlord may
file suit to recover any sums falling due under the terms of this paragraph (b) from time
to time and that no suit or recovery of any portion due Landlord hereunder shall be any
defense to any subsequent action brought for any amount not theretofore reduced to judgment
in favor of Landlord.

	 	(c)	 	Landlord may perform the obligation that is the subject of such Event of Default for
the account and at the expense of Tenant. All costs incurred by Landlord in performing
such obligation, plus an administrative fee equal to ten percent (10%) of such costs, plus
all reasonable attorneys’ fees and expenses of Landlord incurred in enforcing any of the
obligations of Tenant under this Lease shall become Additional Rent hereunder and shall be
due and payable by Tenant on demand.
	 
	 	(d)	 	The non-prevailing party shall pay the costs and expenses incurred by the prevailing
party, including reasonable attorney’s fees, incurred in enforcing the provisions of this
Lease. Tenant shall pay Landlord’s cost and expense, including reasonable attorney’s fees,
incurred as a result of Landlord, without its fault, being made party to any litigation
pending by or against Tenant or any person claiming through or under Tenant.

16. SURRENDER OF POSSESSION.

     16.1 Condition of Premises. At the termination of this Lease by lapse of time or otherwise,
or upon a termination of Tenant’s right of possession without terminating this Lease, Tenant shall
surrender possession of the Premises to Landlord and deliver all keys to the Premises to Landlord,
and shall return the Premises and all equipment and fixtures of Landlord to Landlord in as good
condition as when Tenant originally took possession, ordinary wear and tear, loss or damage by fire
or other insured casualty, and damage resulting from the acts of Landlord or any of its employees
and agents excepted, failing which Landlord may restore the Premises and such equipment
and fixtures to such condition and Tenant shall pay the cost thereof to Landlord on demand.
All Alterations, whether temporary or permanent in character, made by Landlord or Tenant in or upon the
Premises shall become Land lord’s property, and unless Landlord requests their removal, shall remain upon
the Premises at the termination of this Lease by lapse of time or otherwise or upon a termination of
Tenant’s right to possess the Premises, without compensation to Tenant, excepting, however, Tenant’s movable
furniture, equipment and trade fixtures, provided that they may be removed without damage to the Premises or the
Building. If Tenant does not remove such property upon the scheduled expiration or within fifteen
(15) days after any (i) earlier termination of this Lease, or (ii) upon the termination of Tenant’s
right to possess the Premises, at Landlord’s election: (a) Tenant shall be conclusively presumed to
have conveyed the same to Landlord under this Lease as a bill of sale without payment or credit by
Landlord, or (b) Tenant shall be conclusively presumed to have forever abandoned such property, and
without accepting title thereto, Landlord may, at Tenant’s expense, remove, store, destroy, discard
or otherwise dispose of all or any part thereof without

16

 

incurring liability to Tenant or to any other person, and Tenant shall pay Landlord upon demand the
expenses incurred in taking such actions. Tenant’s obligations
under this Section 16.1 shall
survive the expiration or earlier termination of the Term of this Lease.

     16.2 Holding Over. If Tenant retains possession of the Premises or any part thereof after the
termination of this Lease, whether by lapse of time or otherwise, or after a termination of
Tenant’s right to possess the Premises, then Landlord may, at Landlord’s sole election at any time
after the termination of this Lease or Tenant’s right of possession, serve written notice on Tenant
that such holding over constitutes either: (a) the creation of a month-to-month tenancy upon each
of the terms herein provided as may be applicable to such month-to-month tenancy, except that
Tenant shall pay to Landlord Base Rent for each month or portion thereof in the amount set forth
below, plus all Additional Rent (including, without limitation, the Operating Expense Amount and
Estimated Payments) coming due during such period, or (b) the creation of a tenancy at sufferance
upon each of the terms herein provided as may be applicable to such tenancy at sufferance, except
that Tenant sha ll pay to Landlord a per diem rent equal to the per diem Base Rent set forth below,
plus the per diem amount of all Additional Rent (including, without limitation, the Operating
Expense Amount and Estimated Payments). If no written notice is served by Landlord, then a tenancy
at sufferance with Rent as stated in (b) above shall have been created. The provisions of this
Section shall not operate as a waiver by Landlord of any right of re-entry herein provided. If
Tenant remains in possession more than thirty (30) days after the termination of this Lease,
whether by lapse of time or otherwise, or after a termination of Tenant’s right to possess the
Premises, at Landlord’s option expressed in a written notice to Tenant delivered no later than ten
(10) days after such 30-day period and not otherwise, such holding over shall constitute a renewal
of this Lease for a period of one (1) year commencing on the thirty- first (31st) day after the
termination of this Lease or of Tenant’s right of possession at the Base Rent set forth below, plus
all Additional Rent (including, without limitation, the Operating Expense Amount and Estimated Payments)
coming due during such period. In addition to and not in limitation of all other remedies set out in this
Section, Tenant shall be liable for all direct damages sustained by Landlord on account of Tenant’s holding over.
Base Rent payable during any holding over shall be as follows:

          (i) During the first sixty (60) days following the termination of this Lease or the
termination of Tenant’s right of possession, one hundred fifty percent (150%) of the Base Rent for
the calendar month immediately preceding the termination date of this Lease or the termination of
Tenant’s right of possession; and

          (ii) From and after the sixty- first (61st) day following the termination of this Lease or
the termination of Tenant’s right of possession, two hundred percent (200%) of the Base Rent for
the calendar month immediately preceding the termination date of this Lease or the termination of
Tenant’s right of possession.

17. INSURANCE.

     17.1 Waiver of Subrogation. Landlord and Tenant each hereby waive all claims against the
other for loss of or damage to the Property or Premises or to the contents thereof, which loss or
damage is covered by valid and collectible fire and extended coverage insurance policies, to the
extent that such loss or damage is recoverable under said insurance policies (or

17

 

would have been covered and recoverable had the insurance required under this Lease been maintained
as required under this Lease). Inasmuch as this mutual waiver will preclude the assignment of any
such claim by subrogation (or otherwise) to an insurance company (or any other person), Landlord
and Tenant each agree to give each insurance company which has issued, or in the future may issue,
to it policies of fire and extended coverage insurance, written notice of the terms of this mutual
waiver, and to have said insurance policies properly endorsed, if necessary, to prevent the
invalidation of said insurance coverage by reason of said waiver.

     17.2 Tenant’s Insurance. Tenant shall, at Tenant’s expense, obtain and keep in full force
during the entire term of this Lease: (a) a policy of commercial general liability insurance with a
broad form comprehensive general liability endorsement applicable to the Premises and its
appurtenances insuring Landlord, any mortgagees of Landlord, the management company managing the
Center and Tenant against any liability arising out of the ownership, use, occupancy or maintenance
of the Premises and all areas appurtenant thereto, which insurance shall have combined single
limits of not less than $2,000,000 for bodily injury or death of any person or persons or property
damage or destruction or in any one accident or occurrence and shall contain a contractual
liability endorsement covering Tenant’s indemnity obligations under this Lease; (b) Plate glass
insurance and all risks of physical loss insurance written at replacement cost value and with a
replacement cost endorsement covering all of Tenant’s property in the Premises, and all leasehold
improvements in the Premises made by Tenant, if any, for damage or other loss caused by fire or
other casualty or cause including, but not limited to, vandalism and malicious mischief, theft,
explosion, and water damage of any type, including sprinkler leakage and bursting of pipes, with endorsements
for assumed contractual liability with respect to liabilities assumed by Tenant under the provisions of this
Lease (provided, however that Tenant may self insure for damage to or breakage of plate glass in the Premises);
(c) Business interruption insurance covering periods of not less than one (1) year; (d) property damage
insurance for Tenant’s trade fixtures, stock and all property located on the Premises for the full
replacement value thereof; and (e) workers’ compensation insurance as required by statute with
employers liability coverage of not less than $500,000.00 per occurrence and a waiver of
subrogation with respect to Landlord.

     Landlord shall have the right to cause such limits to be increased from time to time (but no
more than once every five (5) years) based upon limits then customarily required of tenants in
similar Property in the Chicago, Illinois area. The limit of any such insurance shall not,
however, limit the liability of Tenant hereunder. Tenant may provide this insurance under a
blanket policy, provided that said insurance shall have a landlord’s protective liability
endorsement attached thereto. If Tenant shall fail to procure and maintain said insurance,
Landlord may, but shall not be required to, procure and maintain same at the expense of Tenant and
Tenant shall reimburse Landlord for same, immediately upon demand, as additional Rent. Insurance
required hereunder shall be obtained from companies satisfactory to Landlord. All insurance
policies to be carried by Tenant hereunder shall be written as primary policies not contributing
with or in excess of coverage, which Landlord may carry.

     17.3 Evidence of Insurance; Form of Insurance. Tenant shall deliver to Landlord, prior to
right of entry and thereafter at least 30 days prior to expiration thereof, copies of all insurance
policies or original copy of a certificate of insurance required herein or insurance binders
evidencing the existence and amounts of such insurance with loss payable clauses satisfactory to

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Landlord. Any company writing any insurance which Tenant is required to maintain or cause to be
maintained pursuant to this Lease shall at all times be a company with at least a Best’s rating of
A-VII and each such company shall be licensed and qualified to do business in Illinois. The form of
such insurance shall be subject to Landlord’s approval (which approval shall not be unreasonably
withheld). All policies of insurance to be carried by Tenant hereunder (other than any worker’s
compensation insurance) shall (i) specify Tenant and “owner(s) and its (or their) principals,
beneficiaries, partners, officers, directors, employees, agents and mortgagee(s)” (and any other
designees of Landlord as the interest of such designees shall appear) as additional insureds and
(ii) contain endorsements that the insurer(s) will give to Landlord and its designees at least
thirty (30) days’ advance written notice of any change, cancellation, termination or lapse of said
insurance.

     18. FIRE OR CASUALTY. If the Premises or the Building or the Center (including machinery or
equipment used in the operation of the Center) shall be destroyed or damaged by fire or other cause
and if the Premises, the Building and the Center can be repaired and restored
within two hundred seventy (270) days after such damage and sufficient insurance
proceeds are made available to Landlord to repair such damage and restore the Premises,
Building and Center, then Landlord shall, to the extent insurance proceeds are actually made
available to Landlord for purposes of repair and restoration, repair and restore same with
reasonable promptness; provided, however, that Landlord shall only be obligated to repair or
restore any improvements made to the Premises (including, without limitation, the Tenant
Improvements or any Alterations) to the extent that (i) Landlord paid for the initial construction
of such improvements (either directly or through an allowance granted to Tenant), and (ii) Landlord
receives the insurance proceeds related to such improvements under the insurance described in
clause (b) of Section 17.2 hereof. Tenant agrees to execute all documents and take all actions
necessary to make the insurance proceeds described in clause (ii) of the immediately preceding
sentence available to Landlord for the repair and restoration of the Premises. Notwithstanding
anything contained herein to the contrary, if the Premises or the Building are substantially
damaged or destroyed during the last twelve (12) months of the Term, either Landlord or Tenant
shall have the right to terminate this Lease as of the date of the fire or other casualty by giving
notice to the other within thirty (30) days after the date of the fire or casualty, in which event,
Rent shall be apportioned on a per diem basis and paid to the date of such fire or casualty.
Notwithstanding anything contained herein to the contrary, if such damage renders the Premises
untenantable in whole or in part and cannot reasonably be repaired and estored within two hundred
seventy (270) days, or if sufficient insurance proceeds are not made available to Landlord for
repair or restoration and Landlord elects to not obtain or provide alternative financing, or if
Landlord elects to demolish the Building or cease its operation, then either party shall have the
right to cancel and terminate this Lease as of the date of such damage upon giving notice to the
other party at any time within ninety (90) days after such damage shall have occurred. In the event
any fire or casualty renders the Premises untenantable, in whole or in part, and if this Lease
shall not be terminated by reason of such damage, then Rent shall abate during the period beginning
with the date of such fire or other casualty and ending with the date when the Premises are again
rendered tenantable, by an amount bearing the same ratio to the total amount of Rent for such
period as the untenantable portion of the Premises bears to the entire Premises. Notwithstanding
anything contained herein to the contrary, if any fire or other casualty is caused by the
negligence or willful misconduct of Tenant or its agents or employees, Tenant shall not be entitled
to terminate this Lease on account

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of such fire or other casualty, and Rent shall only abate to the extent Landlord actually recovers
rent loss insurance proceeds specifically allocated to the Rent due under this Lease.

     19. CONDEMNATION. If the whole or any part of the Premises or the Building or any substantial
portion of the parking area on the Land shall be taken or condemned by any competent authority for
any public use or purpose or if any adjacent property or street shall be condemned or improved in
such a manner as to require the use of any part of the Premises or of the Building or such parking
area, the Term, at the option of Landlord, shall end upon the date when the possession of the part
so taken shall be required for such use or purpose, and current Rent shall be apportioned as of
the date of such termination. Tenant shall have no right to any apportionment of or share in any
condemnation award or judgment for damages made for the taking of any part of the Premises or the Property
but may seek its own award for loss of or damage to Tenant’s business or its property resulting from such taking,
provided that such an award to Tenant does not in any way diminish the award payable to Landlord on account
of such taking.

     20. NOTICES. All notices to be given by one party to the other under this Lease shall be in writing
(except as expressly provided herein to the contrary), mailed, sent by overnight courier, hand
delivered, or sent by facsimile transmission as follows:

	 	(a)	 	To Landlord:

c/o New Management, Ltd.

212 N. Sangamon Street

Suite 1-A

Chicago, IL 60607

Attn: Property Manager

or to such other person or at such other address or to such other facsimile telephone
number designated by notice sent to Tenant, and during the Term with a copy to the address
to which Rent is then being paid under this Lease.

	 	(b)	 	To Tenant: at the address or to the facsimile telephone number set forth in
Section 1.3 above, and during the Term at the Premises or to such other address or
facsimile telephone number designated by notice to Landlord.

Mailed notices shall be sent by United States certified or registered mail, postage prepaid. Mailed
notices shall be deemed to have been given two (2) business days after posting in the United States
mails. Notices sent by overnight courier shall be deemed to have been given one (1) business day
after delivery to the overnight courier, notices which are hand delivered shall be deemed to have
been given on the day tendered for delivery, and notices sent by facsimile transmission shall be
deemed to have been given on the day and at the time transmitted, as evidenced by the confirmation
slip generated by the sender’s facsimile machine.

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21. ADDITIONAL COVENANTS OF TENANT. Tenant hereby covenants and agrees to comply with, and to cause
its employees, agents, clients, customers, invitees and guests to comply with, the following
provisions:

	 	(a)	 	Any sign, lettering, picture, notice, or advertisement installed within the Premises
shall be installed at Tenant’s cost and in compliance with all Laws. Without obtaining
Landlord’s prior, written consent (which consent may be withheld in Landlord’s reasonable
discretion) no sign, lettering, picture, notice, or advertisement may be placed on any
portion of the Premises, which is visible from outside the Premises.
	 
	 	(b)	 	Tenant shall not advertise the business, profession or activities of Tenant in any
manner which violates the letter or spirit of any code of ethics adopted by any
recognized association or organization pertaining thereto, or use the name of the Building
for any purpose other than for identifying Tenant’s business address, or use the name of
the business park, as it may from time to time be known, in which
the Building is located, or use any picture or likeness of the Building in any letterheads,
envelopes, circulars, notices, advertisements, containers or wrapping material, without
Landlord’s prior consent in writing.
	 
	 	(c)	 	Tenant shall not place any radio or television antenna on the roof of the Building or
on any other part of the Property other than inside the Premises, or operate or permit to
be operated any musical or sound producing instrument or device inside or outside the
Premises which may be heard outside the Premises. Tenant shall not make noises, cause
disturbances or vibrations or use or operate any electrical or electronic devices or other
devices that emit sound or other waves or disturbances, or create odors, any of which may
be offensive to other tenants and occupants of the Building or that would interfere with
the operation of any device or equipment or radio or television broadcasting or reception
from or within the Building or elsewhere.
	 
	 	(d)	 	Tenant shall not obstruct sidewalks or entrances in and about the Property. Tenant
shall not place objects against doors or windows, which would be unsightly from the
exterior of the Building, and will promptly, remove same upon notice from Landlord. Tenant
shall store and dispose of refuse as directed by Landlord, including, without limitation,
storing and disposing of all refuse in a neat and clean condition so as not to be visible
to members of the public and so as not to create any health or fire hazard.
In no event shall Tenant burn any refuse at any time in the Premises or on or about the
Property. Tenant shall not: (i) leave or store any pallets on or around the loading docks,
parking areas or anywhere on the Property outside of the Premises or park any truck
trailers in the parking areas on the Land for any purpose (including, without limitation,
storage purposes, temporary or permanent); or (ii) store any boxes, materials, goods or
equipment anywhere on the Property outside of the Premises.

21

 

	 	(e)	 	Tenant shall not make any room-to-room canvass to solicit business from other
tenants in the Building, and shall not exhibit, sell or offer to sell, use, rent or
exchange any item or service in or from the Premises unless expressly included within the
Permitted Use.
	 
	 	(f)	 	Tenant shall not waste electricity or water and agrees to cooperate fully with
Landlord to assure the most effective operation of the Building’s heating and air
conditioning systems, and shall not adjust any controls other than room thermostats
installed for Tenant’s use or take any action which could jeopardize the warranties
covering the heating, ventilating and air conditioning systems.
	 
	 	(g)	 	Door keys for doors in the Premises will be furnished at the commencement of the Term
by Landlord. Tenant shall not affix additional locks on doors and shall purchase duplicate
keys only from Landlord. At the end of the Term or upon a termination of Tenant’s right of
possession, Tenant shall return all keys to Landlord and will disclose to Landlord the
combination of any safes, cabinets or vaults left in the Premises.
	 
	 	(h)	 	Tenant assumes full responsibility for protecting the Premises from theft, robbery
and pilferage, which includes keeping doors locked and other means of entry to the
Premises (including, without limitation, truck docks) closed and secured.
	 
	 	(i)	 	Peddlers, solicitors, and beggars shall be reported promptly to Landlord.
	 
	 	(j)	 	Tenant shall not install or operate machinery or any mechanical devices of a nature
not directly related to the Permitted Use without the written permission of Landlord.
	 
	 	(k)	 	Tenant shall comply with all covenants, conditions and restrictions of record
encumbering or relating to the Property or any portion thereof of which Tenant has
received copies and with all rules and regulations issued from time to time by Landlord.
	 
	 	(l)	 	Tenant will not in any manner deface or injure the Property or any part thereof or
overload the floors of the Premises.
	 
	 	(m)	 	Tenant will not use the Premises for lodging or sleeping purposes or for any immoral
or illegal purposes.
	 
	 	(n)	 	Tenant shall not at any time manufacture, sell, use or give away, and shall not at
any time permit the manufacture, sale, use or gift of any spirituous, fermented,
intoxicating or alcoholic liquors on the Premises or Property.
Tenant shall not at any time sell, purchase or give away, or permit the sale, purchase or
gift of, food in any form by or to any of Tenant’s agents or employees or any other parties
on the Premises or Property.

22

 

	 	(o)	 	In no event shall Tenant permit on the Property flammables or explosives or any other article of an intrinsically dangerous nature. If by reason of Tenant’s failure to comply
with the provisions of this Section, any insurance coverage is jeopardized or insurance
premiums are increased, in addition to all other rights and remedies available to Landlord
upon a default by Tenant under this Lease, Landlord shall have the right to require Tenant
to make immediate payment of the increased insurance premium, if any.
	 
	 	(p)	 	Tenant shall not introduce, use, handle, generate, treat, transport, store or dispose
of, or permit the introduction, use, handling, generation, treatment, transportation,
storage or disposal of any Hazardous Materials in, on, under, to, from, around or about
the Premises, the Building or the Property, except for Hazardous Materials in quantities
or concentrations which comply with Environmental Laws (without the need for a special
permit). Tenant shall indemnify, defend and hold harmless Landlord, its partners and their
respective officers, directors, shareholders, servants, agents and employees from and
against all fines, penalties, liens, suits, procedures, claims, demands, liabilities,
damages (including consequential damages), actions, causes of action, costs and expenses
of every kind and nature whatsoever (including, without limitation, reasonable attorneys’,
engineers’, experts’ and consultants’ fees and costs of testing, monitoring, remediation,
removal and cleanup), contingent or otherwise, known or unknown, incurred or imposed,
arising directly or indirectly out of or in any way connected with Tenant’s breach of the
covenants set forth in this Section 21(p). Tenant’s obligations under the
immediately preceding sentence shall survive the expiration or earlier termination of this
Lease and a termination of Tenant’s right to possess the Premises.

22. ESTOPPEL CERTIFICATES; MORTGAGE ISSUES.

     22.1 Estoppel Certificates. Tenant agrees that from time to time upon not less than ten (10)
days prior request by Landlord or any Mortgagee, Tenant will deliver to Landlord or such Mortgagee
an estoppel certificate substantially in the form of Exhibit D attached hereto and made a part
hereof or in such other form as Landlord or such Mortgagee may request. In the event Tenant fails
or refuses to deliver any such certificate within said 10-day period, in addition to all other
rights and remedies available under this Lease, at law or in equity upon a default by Tenant under
this Lease: (i) Tenant hereby appoints Landlord as attorney-in-fact for Tenant with full power
and authority to execute and deliver in the name of Tenant any such certificate, and (ii) Tenant
shall be deemed to have accepted, agreed with and certified to, each of the statements set forth in
any such certificate.

     22.2 Subordination and Attornment. Landlord may sell the Land and become the tenant under a
ground or underlying lease of the Land and this Lease and all rights of Tenant hereunder will then
be subject and subordinate to such underlying lease and any extensions or modifications thereof.
This Lease and all of Tenant’s rights hereunder shall also be subject and subordinate to any
mortgage or mortgages (and the liens thereof) now or at any time hereafter in

23

 

force against the Building, the Land and/or the underlying leasehold estate, and to all advances
made or hereafter to be made upon the security thereof; Tenant shall execute such further
instruments subordinating this Lease to the lien or liens of any such mortgage or mortgages as
Landlord from time to time may request. Tenant covenants and agrees that, if by reason of any
default on the part of Landlord as tenant under said underlying lease, or as the mortgagor under
any mortgage to which this Lease is subject and subordinate, said underlying lease is terminated or
such mortgage is foreclosed by summary proceedings, voluntary agreement or otherwise, Tenant, at
the election of the landlord under said underlying lease or the owner of such mortgage, as the case
may be, will attorn to and recognize such landlord or mortgage owner as the “Landlord” under this
Lease; provided such agreement to attorn is conditioned upon such landlord’s or mortgage owner’s
agreement that so long as no Event of Default has occurred and is continuing, such landlord or
mortgage owner shall not disturb Tenant’s rights hereunder. Tenant further agrees to execute and
deliver at any time upon request of Landlord, any Mortgagee or any party, which shall succeed to
the interest of Landlord as tenant under said underlying lease, any instrument to evidence such
attornment and non-disturbance. Subject to the preceding sentence, Tenant waives the provision of
any law now or hereafter in effect which may give to Tenant any right of election to terminate this
Lease or to surrender possession of the Premises in the event any proceeding is brought by the
landlord under said underlying lease or the owner of such mortgage to terminate said underlying
lease or foreclose such mortgage. At the election of the owner of any such mortgage (expressed in a
document signed by such owner), such owner may make all or some of Tenant’s rights and interests in
this Lease superior to any such mortgage and the lien thereof.

     22.3 Notices to Mortgagees. Tenant agrees to give any Mortgagee for which it
has notice, by registered mail, a copy of any notice of default served upon Landlord. Tenant
further agrees that if Landlord shall have failed to cure such default, then such Mortgagee shall
have an additional thirty (30) days within which to cure such default, or if such default cannot
reasonably be cured by such Mortgagee within thirty (30) days, such Mortgagee shall have such
additional time as may be necessary to cure such default (including, without limitation, time
necessary to obtain possession of the Property if possession is necessary to cure such default),
and Tenant shall not pursue any remedies (except for any express rights to abate Rent hereunder) it
may have for such default and this Lease shall not be terminated, while such cure is being
diligently pursued.

     22.4 Quiet Possession. So long as no Event of Default shall have occurred and be continuing,
Tenant shall peaceably and quietly hold and enjoy the Premises for the Term, without hindrance or
interruption by Landlord or any other person or persons lawfully or equitably claiming by, through
or under Landlord, always subject, however, to the terms and conditions of this Lease.

23. MISCELLANEOUS.

     23.1 Definition of Landlord. For purposes of this Lease, Landlord shall mean Landlord
hereinabove named, except that in the event of any sale or other transfer of the Property or the
Building, the seller or transferor (and the beneficiaries of any selling or transferring land
trust) shall be and hereby is and are entirely freed and relieved of all agreements, covenants and
obligations of the Landlord hereunder accruing from and after the

24

 

effective date of such transfer, and without further agreement between the parties and the
purchaser or transferee on any sale or transfer, such purchaser or transferee shall be deemed and
held to have assumed and agreed to carry out any and all agreements, covenants and obligations of
the Landlord hereunder accruing from and after the effective date of such sale or transfer.

     23.2 Real Estate Brokers. Tenant represents that Tenant has dealt with no other broker in
connection with this Lease other than Epic/Savage as the Tenant’s broker and Paine-Wetzel as the
Landlord’s broker, and that in so far as Tenant knows, no other broker or finder negotiated this
Lease or is entitled to any fee or commission in connection herewith. Tenant agrees to indemnify,
defend and hold Landlord and its partners and their respective officers, shareholders, directors,
agents and employees free and harmless from and against all claims for broker’s commissions or
finder’s fees by any person claiming to have represented or procured, or to have been engaged by,
Tenant in connection with this transaction other than the Brokers. Landlord represents that
Landlord has dealt with no broker in connection with this Lease other than the Brokers and that
insofar as Landlord knows, no other broker or finder negotiated this Lease or is entitled to any
fee or commission in connection herewith. Landlord agrees to indemnify, defend and hold Tenant free
and harmless from and against all claims for broker’s commissions or finder’s fees by any person
claiming to have represented or to have been engaged by Landlord in connection with this
transaction.

     23.3 Cumulative Remedies. All rights and remedies of Landlord under this Lease shall be
cumulative, and none shall exclude any other rights and remedies allowed by law.

     23.4 Default Interest. All payments becoming due under this Lease shall be considered as Rent,
and if any such payments remain unpaid for more than ten (10) days after the date when due, such
payments shall bear interest from the date when due until the date paid at a rate of interest per
annum equal to four percent (4%) in excess of the rate announced or published from time to time by
Harris Trust and Savings Bank at its office in Chicago, Illinois as its prime or equivalent base
rate of interest adopted as a general benchma rk from which Harris Trust and Savings Bank
determines the floating interest rates chargeable on various loans to borrowers from time to time.
Landlord’s right to receive such interest shall not, in any way, limit any of Landlord’s other
remedies under this Lease or at law or equity.

     23.5 Grammatical Interpretation. The word “Tenant” wherever used herein shall be construed to
mean Tenants in all cases where there is more than one Tenant, and the necessary grammatical
changes required to make the provisions hereof apply either to corporations or individuals, men or
women, shall in all cases be assumed as though in each case fully expressed.

     23.6 Successors and Assigns. Each of the provisions of this Lease shall extend to and shall,
as the case may require, bind or inure to the benefit, not only of Landlord and of Tenant, but also
of their respective heirs, legal representatives, successors and assigns, provided this clause
shall not permit any assignment contrary to the provisions of Section 10 hereof.

     23.7 No Oral Modifications. All of the representations and obligations of Landlord are
contained herein, and no modification, waiver or amendment of this Lease or of any of its
conditions or provisions shall be binding upon Landlord unless contained in a writing signed by

25

 

Landlord or by a duly authorized agent of Landlord empowered by a written authorization signed by
Landlord.

     23.8 Irrevocable Offer; No Option. In consideration of Landlord’s administrative expense in
considering this Lease, Tenant’s submission to Landlord of this Lease, duly executed by Tenant,
shall constitute Tenant’s irrevocable offer to continue for twenty (20) days from and after receipt
by Landlord or until Landlord shall deliver to Tenant written notice of rejection of Tenant’s
offer, whichever shall first occur. If within said 20-day period Landlord shall neither return this
Lease duly executed by Landlord nor so advise Tenant of Landlord’s rejection of Tenant’s offer,
then Tenant shall be free to revoke its offer. Although Tenant’s execution of this Lease shall be
deemed an irrevocable offer by Tenant, the submission of this Lease by Landlord to Tenant for
examination shall not constitute a reservation of or option for the Premises. This Lease
shall become effective only upon execution thereof by both parties and delivery thereof to
Tenant.

     23.9 No Air Rights. No rights to light or air over any property, whether belonging to Landlord
or any other person, are granted to Tenant by this Lease.

     23.10 Intentionally Omitted.

     23.11 Landlord’s Title. Landlord’s title to the Property is and always shall be paramount to
the title of Tenant. Nothing herein contained shall empower Tenant to do any act which can, shall
or may encumber the title of Landlord to the Property.

     23.12 Recording Prohibited. Neither this Lease, nor any memorandum, affidavit or other
writing with respect hereto, shall be recorded in any public record by Tenant or by anyone acting
through, under or on behalf of Tenant, and the recording thereof in violation of this provision
shall make this Lease null and void at Landlord’s election.

     23.13 Relationship of Parties. Nothing contained in this Lease shall be deemed or construed
by the parties hereto or by any third party, to create the relationship of principal and agent,
partnership, joint venture or any association between Landlord and Tenant, it being expressly
understood and agreed that neither the method of computation of Rent nor any other provisions
contained in this Lease nor any acts of the parties hereto shall be deemed to create any
relationship between Landlord and Tenant other than the relationship of lessor and lessee.

     23.14 Limitation of Liability. Any claim against, or liability or obligation of, Landlord
under this Lease or relating to the Property or the Premises shall be limited solely to and
satisfied solely from the interest of Landlord in the Property, and no partner in Landlord, or
partner in a partner, shall be individually or personally liable for any claim arising out of this
Lease or relating to the Property or the Premises. A deficit capital account of any such partner
shall not be deemed an asset or property of Landlord.

     23.15 Excuse for Non-Performance. Except as expressly provided to the contrary in this Lease,
this Lease and Tenant’s obligation to pay Rent hereunder and to perform all of Tenant’s covenants
and agreements hereunder shall not be impaired or affected, and Landlord shall not be in default
hereunder, if Landlord is unable to fulfill any of its obligations under this Lease because of any
Events of Force Majeure.

26

 

     23.16
Late Charge. If any payment or installment of Rent owed by Tenant under this Lease or
under the Work Letter is not paid when due, in addition to the
amounts due under Section 23.4 hereof, Tenant shall pay, as a late charge, an amount equal to the greater of $100.00 or five
percent (5%) of the amount overdue.

     23.17 Parking. Tenant and its agents, employees, customers, guests and invitees shall not use
parking spaces on the Property designated by Landlord as “reserved parking”; provided, Landlord
shall not designate any parking adjacent to the Premises to be “reserved parking” for the benefit
of another tenant of the Center. Tenant agrees to comply with all rules and regulations, which
Landlord may promulgate from time to time with respect to use of the parking areas on the Property.
Tenant may use parking adjacent to its leased space so long as it does not block the main road way
or impedes any other tenants access to its space.

     23.18 Riders and Exhibits. All exhibits and riders attached to this Lease are made a part
hereof and are incorporated herein by reference.

	24.	 	EXCULPATION.

     This Lease is executed by LaSalle Bank and Trust Company of Chicago (“LB”), not personally but
as Trustee as aforesaid, in the exercise of the power of authority conferred upon it as such
Trustee and under the express direction of the beneficiaries of that certain Trust Agreement dated
June 26, 1997 and known as Trust Number 123103-06. It is expressly understood and agreed that
nothing herein contained shall be construed as creating any liability whatsoever against said Trustee or beneficiaries personally, or against any successor or assign of the foregoing, and in
particular without limiting the generality of the foregoing, there shall be no personal liability
to pay any indebtedness accruing hereunder or to perform any covenant, either express or implied,
herein contained, or to keep, preserve or sequester any property of said Trust, and that all
personal liability of said Trustee or beneficiaries of every sort, if any, is hereby expressly
waived by said Tenant, and by every person now or hereafter claiming any right or security
hereunder; and that so far as the said Trustee or beneficiaries or any successor or assign of the
foregoing are concerned the owner of any indebtedness or liability accruing hereunder shall look
solely to the Premises hereby leased, as the same is from time to time encumbered, for the payment
thereof. It is further understood and agreed that the said Trustee merely holds naked legal title
to the property herein described; that said Trustee has no control over, and under this Lease,
assumes no responsibility for, (1) the management or control of such property, (2) the upkeep,
inspection, maintenance or repair of such property, (3) the collection of rents or the rental of
such property, or (4) the conduct of any business which is carried on upon such premises.

     It is further agreed by the parties hereto that whenever and wherever the provisions of this
Lease contain any reference to the right of the Tenant to be indemnified, saved harmless, or
reimbursed by Landlord, for any costs, claims, loss, fines, penalties, damages or expenses of any
nature, including without limitation, attorneys’ fees, arising in any way out of the execution of
this instrument or the relationship of Tenant/Landlord under this instrument, then such obligation,
if any, on the part of the Landlord shall be construed to be only a right of reimbursement in favor
of Tenant out of the trust estate held under Trust No. 123103-06, from time to time, so far as the
same may reach; and in no case shall any claim of liability or right of

27

 

reimbursement be asserted against LB individually, or said beneficiaries individually, all such
personal liability, if any, being hereby expressly waived; and this agreement shall extend to and
inure for the benefit of the parties hereto, their respective successors and assigns, and all
parties claiming by, through and under them. In event of any question of apparent or claimed
liability or obligation resting upon the said trustee or said beneficiaries, these exculpatory
provisions shall be controlling.

     IN WITNESS WHEREOF, Landlord and Tenant have caused this instrument to be duly executed as of
29th day of July, 2005.

	 	 	 	 	 	 	 	 	 
	TENANT:	 	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 
	Home Products International, Inc.	 	 	 	LASALLE BANK, NA OF CHICAGO, not
	 	 	 	 	 	 	personally but solely as Trustee under Trust
	By:	 	/s/ Donald J. Holtz	 	 	 	Agreement dated June 26, 1997 and known as
	 

	 	 	 	 	 	 	 	 
	Its:	 	Chief Financial Officer	 	 	 	Trust Number 123103- 06
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ Lisa Wilburn
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Its:	 	Trust Officer
	 

	 	 	 	 	 	 	 	 

28

 

EXHIBIT A

PLAN OF THE PREMISES

[see attached]

 

 

 

 

EXHIBIT B

LANDLORD’S WORK

     Pursuant to a Lease (“Lease”) by and between Home Products International, Inc. (“Tenant”) and
LaSalle Bank, NA of Chicago, as Trustee under Trust Agreement dated June 26, 1997 and known as
Trust Number 123103-06 (together with its successors and assigns, “Landlord”), Tenant is leasing
space (“Premises”) as more fully described in the Lease in a center (“Center”) commonly known as
Midway Business Center. Tenant is leasing the Premises in “as is” condition. Except for what is
contained in the provisions of the Lease and this Exhibit B. Unless otherwise defined herein, all
defined terms used herein shall have the same meanings as set forth in the Lease.

SECTION I. Space Improvements:

Prior to Occupancy or as soon as reasonably practical, Landlord shall make at its sole cost and
expense, the following improvements to the Premises on Tenant’s behalf:

A. All lighting (including bulbs, tubes and ballasts) shall be operational and
repaired/replaced as necessary.

B. Landlord shall insure that all existing heating and air-conditioning units are in good
working order.

C. Landlord will provide up to four 10’x10’ wall openings in the CMU walls at tenants
choice of location of Tenant.

 

 

EXHIBIT C

LEGAL DESCRIPTION OF THE PROPERTY

[see attached]

 

 

EXHIBIT D

TENANT ESTOPPEL CERTIFICATE AND AGREEMENT

	 	 	 	 	 
	 

	 	TO:
	 	Tenant Representative
	 

	 	 	 	Home Products International, Inc.
	 

	 	 	 	4501 West 47th Street
	 

	 	 	 	Chicago, Illinois 60632
	 
	 	 	 	 
	 

	 	RE:
	 	Lease (the “Lease”)
dated ___ between LA SALLE BANK, NA
OF CHICAGO, as Trustee under Trust Agreement dated June 26, 1997 and
known as Trust Number 123103 -06, (“Landlord”) and Home Products
International (“Tenant”), for premises containing ___square feet
(the “Premises”) located at ______, in
the Midway Business Center, Chicago, Illinois.

Ladies and Gentlemen:

     The undersigned, the Tenant under the referenced Lease, hereby certifies and confirms to and
agrees with as follows:

	 	1.	 	The Lease is presently in full force and effect and has not been changed, altered,
amended or modified, orally or in writing, except as follows: The term “Lease” as used herein means, collectively, (i) the original Lease and (ii) all
amendments and other agreements referred to above. A copy of the entire Lease is attached
hereto as Exhibit A. The Lease represents the entire agreement between Landlord and Tenant.
The obligations of Tenant under the Lease are guaranteed by: (“Guarantor”).

	 	2.	 	Landlord has fulfilled all of its obligations under the Lease to date, regarding the
completion of the improvements and the Premises, and all alterations or additions thereto,
required to be completed by Landlord according to the Lease in accordance with the plans
and specifications therefor approved by Tenant. Landlord has satisfied all commitments, arrangements and understandings made to induce
Tenant to enter into the Lease. To Tenant’s knowledge, Landlord is not in default under the
Lease and no fact or conditions exist which, together with the giving of notice or the
passage of time, or both, would constitute such default.

	 	3.	 	Tenant has no existing defenses, claims or counterclaims against Landlord or
enforcement of the Lease by Landlord. Tenant has not advanced any funds by or on behalf of
Landlord, and Tenant is not entitled to any credit, rebate, rent abatement or any offset
or reduction in rent.

To Tenant’s knowledge, Tenant is not in default under the Lease and no fact, conditions
exist which, together with the giving of notice, or the passage of time, or both, would
constitute such default. Tenant’s interest under the Lease has not

 

 

been assigned, by operation of law or otherwise, and no sublease, concession agreement, or
license covering the Premises or any portion thereof has been entered into by Tenant.

	 	4.	 	No monetary obligations of Tenant under the Lease, including, without limitation,
rent have been prepaid for more than thirty (30) days in advance.
	 
	 	5.	 	The amount of the Security Deposit being held by Landlord is $ ___in the form
of cash. Landlord has not applied the Security Deposit to the payment of rent or any other
amounts due under the Lease.
	 
	 	6.	 	The total leasable area of the Premises for purposes of the Lease is set forth in the
Lease.
	 
	 	7.	 	The current fixed base rent to be paid to Landlord monthly is $___. The
last payment of Additional Rent on account of increases in real estate taxes and insurance
over a 2006 base year is $___.
	 
	 	8.	 	The Landlord has granted to Tenant free rent periods
as described in the Lease. ______
	 
	 	9.	 	Tenant has an option to expand, or extend the term of the
Lease.
	 
	 	10.	 	Tenant has paid Base Rent and Additional Rent, as defined in the Lease through and
including ___, 20___.
	 
	 	11.	 	Tenant has all necessary licenses and permits to carry on its business at the
Premises. Tenant has received no notice from any insurance company or governmental agency
or official of any defects or inadequacies in the Premises or the Property.
	 
	 	12.	 	There are no actions, whether voluntary or otherwise, pending against Tenant under
the bankruptcy laws of the United States or any state thereof, other than
	 
	 	13.	 	Tenant has no notice of any prior assignment or pledge of rents or of the Lease by
Landlord.
	 
	 	14.	 	Tenant has received no notice of any claim, litigation or proceeding (including
condemnation), pending or threatened, against or relating to the Premises. Tenant has
received no notice of, and has no knowledge of, any violations of any federal, state,
county or municipal statutes, laws, codes, ordinances or directives relating to the use or
conditions of the Premises or Tenant’s operation thereon.

     The
undersigned understands that ___ is acting in reliance upon the certifications
and agreements set forth herein, and agrees that ___ and its successors and assigns may rely
upon such certification and agreements as conclusive evidence of the matters set forth herein.

D-2

 

     IN WITNESS WHEREOF, the undersigned Tenant has executed and delivered this Estoppel
Certificate as of the ___ day of ___, 20___.

	 	 	 	 	 
	 	 	TENANT:
	 
	 	 	 	 
	 	 	Home Products International, Inc.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Its:	 	 
	 

	 	 	 	 

D-3

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