THIRD AMENDMENT TO LEASE AGREEMENT

THIRD AMENDMENT TO LEASE AGREEMENT This THIRD AMENDMENT TO LEASE AGREEMENT ( Third Amendment ) made and entered into as of the 1st day of December, 2013, by and between DELANO CROSSINGS LLC, a Delaware limited liability company ( Landlord ) and CITY OF DELANO, a Minnesota municipal corporation d/b/a DELANO LIQUOR STORE ( Tenant ). WHEREAS, Landlord s predecessor in interest, KTJ Limited Partnership Forty-Two, a Minnesota limited partnership, and Tenant made and entered into that certain Retail Lease dated November 9, 2001, amended by First Amendment to Retail Lease dated February 4, 2003 (the First Amendment ), and further amended by Second Amendment to Retail Lease dated February 2006 (the Second Amendment ) (collectively, the Lease ) with respect to Suite 968 containing approximately 5,280 square feet of Leasable Floor Area ( Premises ) within the shopping center commonly known as the Delano Crossings Shopping Center located in the City of Delano, County of Wright, State of Minnesota ( Shopping Center ); and WHEREAS, Tenant and Landlord desire both to extend the Lease and expand the Premises to incorporate additional space of approximately 2,398 square feet of Leasable Floor Area, upon the terms and conditions as set forth below. NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Recitals. The foregoing recitals are true and correct and are incorporated as part of the agreement of the parties. 2. Definitions. Unless expressly indicated herein to the contrary, all capitalized or quoted terms shall have the meanings as either defined herein or as defined in the Lease. 3. Expansion Space; Delivery Date. As of the Effective Date (as defined below), the Premises shall be expanded to add thereto certain adjacent space consisting of approximately 2,398 square feet of Leasable Floor Area as more fully shown on the attached Exhibit A (the Expansion Space ). Thus, as of the Effective Date the Premises shall contain a total of 7,678 square feet of Leasable Floor Area. Landlord anticipates that the Expansion Space shall be delivered to Tenant approximately forty-five (45) days after the execution of this Third Amendment, contingent upon Landlord s receipt of all required permits to conduct Landlord s Work as described in Section 10 below. 4. Extension of Lease Term. The parties hereby agree that the Lease Term shall be extended for an additional ten (10) years so that the Lease Term shall now expire, unless terminated earlier pursuant to the terms of the Lease, at midnight on January 31, 2024 (the Extended Term ). 5. Minimum Rent. The parties acknowledge and agree that Minimum Rent under the Lease, commencing February 1, 2014 (the Effective Date ), and continuing through January 31, 2019, shall be at the rate of $12.00 per square foot of Leasable Floor Area within the Premises per annum, payable at the rate of $7,678.00 per month; and for the period February 1, 1

2019 through January 31, 2024, shall be at the rate of $13.00 per square foot of Leasable Floor Area within the Premises per annum, payable at the rate of $8,317.83 per month. 6. Rent Abatement. Notwithstanding the terms of Section 4 above, Tenant s obligation to pay Minimum Rent shall be waived for three (3) months commencing on the first day of the first full month after Tenant has commenced operating in the Expansion Space (the Rent Abatement Period ); provided, however, that Tenant shall be responsible for the payment of Additional Rent during such Rent Abatement Period. 7. Percentage Rent. Notwithstanding the terms of Sec. 1.11 of the Lease, no Percentage Rent shall be payable during the Extended Term. 8. Operating Expenses. In addition to Minimum Rent, Tenant shall be responsible for Tenant s Proportionate Share of Additional Rent. 9. Utilities. All utilities serving the Premises shall be separately metered and paid for by Tenant. 10. Landlord s Work. Landlord shall provide the Expansion Space to Tenant in a finished condition ready for Tenant s Work. Landlord s Work for purposes of this Third Amendment shall include the following: (a) (b) (c) (d) All demolition work, including demolition of the partition wall; Matching ceiling, flooring and paint; Adequate mechanical and electrical systems for use; and Any walls needed for storage/cooler rooms. 11. Tenant s Work. Tenant shall have the right to update or install new trade fixtures or to redecorate the Premises as expanded by the Expansion Space, and to install new exterior signage, provided that all such work shall be considered Tenant s Work under the Lease to be performed in accordance with the terms of Articles 12 and 13 thereof. 12. TI Allowance. In consideration of Tenant s entering into this Third Amendment, Landlord shall provide Tenant with an allowance toward the cost of performing Tenant s Work in an amount not to exceed the amount of Five and No/100 Dollars ($5.00) per square foot of Leasable Floor Area for a total of Thirty Eight Thousand Three Hundred Ninety and No/100 Dollars ($38,390.00) (the Tenant Allowance ). The TI Allowance will be paid to Tenant within thirty (30) days of Landlord s receipt from Tenant of final lien waivers evidencing that all invoices for Tenant s Work have been paid in full. 13. Expansion/Limited Termination Right. The expansion and limited termination right granted to Tenant in Section 7 of the Second Amendment is hereby revoked and of no further force or effect. 2

14. Notices. Any notice, demand, request, consent, approval or other communication to be given by one party to the other under or pursuant to the Lease shall be in writing (unless some other form of notice is specifically provided for in the Lease) and given by personal service, express mail, federal express, DHL or other similar form of overnight delivery service or mailing in the United States Mail (certified and return receipt requested) addressed to the parties at their respective addresses as follows: If to Landlord: If to Tenant: DELANO CROSSINGS LLC c/o United Properties Investment LLC 1331 17 th Street, Suite 605 Denver, CO 80202 Attn: Jamie Pollock CITY OF DELANO, a Minnesota municipal corporation d/b/a DELANO LIQUOR STORE P.O. Box 108 Delano, MN 55328 15. Ratification. Except as specifically modified herein, the other terms and conditions of the Lease shall remain in full force and effect in all respects and are hereby ratified and confirmed by the parties below, including, without limitation, the payment by Tenant of Additional Rent under Sections 1.12, 5.1 and 5.2 of the Lease for Real Estate Taxes, Insurance Premiums and Common Area Costs and Operating Expenses. LANDLORD: DELANO CROSSINGS LLC, a Delaware limited liability company United Properties Investment LLC, a Minnesota limited liability company Its: Manager Its: Its: 3

TENANT: CITY OF DELANO, a Minnesota municipal corporation d/b/a DELANO LIQUOR STORE Its: Mayor Its: Clerk/Treasurer Its: City Administrator 4

EXHIBIT A Graphic Depiction of Premises and Expansion Space 5