IN PARTICULAR, LESSOR REPRESENTS NOW AND WILL,
IF ACCURATE, REPRESENT AS OF THE COMMENCEMENT DATE, THAT LESSOR HAS RECEIVED NO
NOTICE OF VIOLATION OF THE AMERICANS WITH DISABILITIES ACT IN CONNECTION WITH
OPERATION OF THE ASSETS.
(B)
COSTS ASSOCIATED WITH MAKING SUCH REPAIRS,
CORRECTIONS, INVESTMENTS OR ADJUSTMENTS AS ARE NECESSITATED BY STRUCTURAL OR
OTHER DEFECTS OF OR IN THE ASSETS OF WHICH LESSOR HAD ACTUAL KNOWLEDGE AND
FAILED TO DISCLOSE TO LESSEE IN WRITING PRIOR TO THE COMMENCEMENT DATE.
(C)
COSTS OF REPAIRS OR OTHER WORK OCCASIONED
BY FIRE, WINDSTORM OR OTHER INSURED CASUALTY TO THE EXTENT OR INSURANCE PROCEEDS
RECEIVED.
(D)
COSTS OF REPAIRS OR REBUILDING NECESSITATED
BY CONDEMNATION.
(E)
ANY INTEREST ON BORROWED MONEY OR DEBT
AMORTIZATION.
(F)
DEPRECIATION OF THE ASSETS.
E.
PLACE OF PAYMENT.
RENT AND SUCH OTHER
AMOUNTS AS LESSEE IS REQUIRED TO PAY LESSOR SHALL BE PAYABLE AT LESSOR'S NOTICE
ADDRESS REFLECTED IN SECTION 20.E. HEREOF.
4.
ASSUMED PAYMENTS.
LESSOR AND LESSEE
UNDERSTAND THAT LESSOR HAS A SIGNIFICANT AMOUNT OF ACCOUNTS PAYABLE AND OTHER
INDEBTEDNESS RELATING TO THE ASSETS, THE PRECISE AMOUNTS OF WHICH MAY NOT HAVE
NOT BEEN DETERMINED AS OF THE COMMENCEMENT DATE.
ON OR BEFORE APRIL 1, 1999,
LESSOR SHALL PROVIDE LESSEE WITH INFORMATION AND A SCHEDULE AS DESCRIBED IN
SECTION 2.8. HEREOF REFLECTING THE PRECISE NATURE AND AMOUNTS OF ALL SUCH
ACCOUNTS PAYABLE AND INDEBTEDNESS, INCLUDING THE AMOUNTS, TERMS AND CONDITIONS
OF PAYMENT (INCLUDING BALLOON PAYMENTS, IF ANY), AND CURRENT STATUS OF THE
OBLIGATIONS, WHICH SCHEDULE SHALL BE ATTACHED TO THIS LEASE AS EXHIBIT 10 AND BE
INCORPORATED BY REFERENCE HEREIN.
UPON COMPLETION OF EXHIBIT 10, LESSOR SHALL
INCUR NO FURTHER OBLIGATIONS NOR CHANGE ANY EXISTING OBLIGATIONS (EXCEPT BY
PAYMENT) RELATING TO THE ASSETS.
Subject to the provisions of this Section 4, Lessee shall, during the Lease
Term, pay, in accordance with the specific terms and conditions contained on
Exhibit 10, such long terms liabilities and accounts payable owed by Lessor (the
"Assumed Payments").
Lessee shall make the Assumed Payments directly to
Lessor's lenders and creditors listed on Exhibit 10, and Lessor shall obtain
such consent from its lenders and creditors as are necessary to permit Lessee to
make such payments directly to them.
During the Due Diligence Period, Lessor shall use its best efforts to ensure
that the total Assumed Payments shall not exceed One Hundred Thirty Thousand
Dollars ($130,000) per month.
Upon expiration of the Due Diligence Period, and
for the balance of the Lease term, Lessor shall use its best efforts to ensure
that the total Assumed Payments shall not exceed One Hundred Twenty-Five
Thousand Dollars ($125,000) per month.
Should the total Assumed Payments exceed
One Hundred Thirty Thousand Dollars ($130, 000) per month during the Due
Diligence Period, or One Hundred Twenty-Five Thousand Dollars per month
($125,000) thereafter during the Lease Term, Lessee may, at its option, (i) pay
such additional amount and set such payments off against rent or other payments
due hereunder, (ii) terminate the Lease, or (iii) pursue such additional
remedies as