Document:

Exhibit 10.42

 

SUBLEASE

 

THIS SUBLEASE is made as of
this 25th day of October, 1999, and is by and between RADIATION THERAPY
SERVICES, INC., a Florida corporation (“RTSI-Sublessor”) with
Administrative Offices located at 2234 Colonial Blvd. Ft. Myers, FL 33907, and
Westchester MRI SPECIALISTS, P.C., a New York corporation (“RMS-Sublessee”)
with Administrative Offices located at 3680 Broadway Ft. Myers, FL 33901.

 

WITNESSETH:

 

WHEREAS, on October 25,
1999 “Landlord”, 34 South Bedford Road Associates, a New York partnership with
Administrative Offices located at c/o: Mount Kisco Medical Group, 110 South
Bedford Road, Mt. Kisco, New York 10549, and RTSI, “Tenant”, entered into the
Agreement Of Lease covering the 34 South Bedford Road, Mt. Kisco, New York medical
offices (“Premises”). A copy of the Agreement Of Lease is attached hereto as
Exhibit “A”.

 

WHEREAS, Sublessor-RTSI
represents and warrants that the Agreement Of Lease is in full force and effect
and no defaults thereunder have occurred or, to the best of its knowledge, are
threatened;

 

WHEREAS, Sublessee-RMS
desires to sublet the Premises and Sublessor-RTSI is willing to sublet the
Premises on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE,
Sublessor-RTSI, for and in consideration of the rents, covenants, and
agreements hereinafter contained on the part of Sublessee-RMS to be paid, kept
and performed, does hereby sublet and demise unto Sublessee-RMS, and
Sublessee-RMS hereby takes and hires from Sublessor-RTSI the Premises together
with all personal property and fixtures now installed or to be installed at the
Premises.

 

TO HAVE AND TO HOLD the same
unto Sublessee-RMS, its successors and assigns for the same terms, covenants,
conditions and provisions as set forth in the Agreement Of Lease (Exhibit “A”).

 

AND Sublessor-RTSI and
Sublessee-RMS hereby agree as follows

 

1.                         The terms,
covenants, conditions and provisions of the Sublease are the same as those set
forth in the Agreement To Lease (Exhibit “A”).

 

IN WITNESS WHEREOF,
Sublessor-RTS and Sublessee-RMS have hereunto set their hands and seals the day
and year first above written.

 

	
  SUBLESSOR:

  Radiation Therapy
  Services, Inc.

  	
   

  	
  SUBLESSEE:

  Westchester MRI
  Specialists, P.C.

  
	
  By:

  	
   

  	
  By:

  
	
   

  	
   

  	
   

  
	
  /s/ Daniel E. Dosoretz

  	
   

  	
  /s/ Howard M. Sheridan

  
	
  Daniel E. Dosoretz, M.D. 

  	
   

  	
  Howard M. Sheridan, M.D.

  
	
  Chief Executive Officer

  	
   

  	
  President

  

 

1

 

AGREEMENT OF LEASE, made as
of the 30th day of October, 1999, between 34 SOUTH BEDFORD ROAD ASSOCIATES, a
New York partnership, having an office c/o Mount Kisco Medical Group, 110 South
Bedford Road, Mount Kisco, New York 10549 (“Landlord”) and RADIATION THERAPY
SERVICES, INC., a Florida Corporation, having an office located at 2234
Colonial Blvd., Fort Myers, FL 33907 (“Tenant”), as hereinafter defined.

 

ARTICLE 1

 

Certain
Terms

 

1.01 The following terms
shall have the meanings set forth opposite each of them:

 

“ADDITIONAL RENT” -

 

As defined in Paragraph
3.01.

 

“AFFILIATE” -

 

As defined in Paragraph
13.04.

 

“ALL RISK” -

 

As defined in Paragraph
11.02 (A)

 

“BASE RENT” -

 

Two Hundred Sixty Four
Thousand ($264,000) Dollars per annum, payable in monthly installments of
Twenty Two Thousand ($22,000) Dollars per month, payable in advance. On the
fifth and tenth anniversary of the Commencement Date, the Base Rent shall be
increased by the percentage increase in the CPI over the rate in effect on the
Commencement Date, not to exceed 30% over the amount being paid in the
preceding Rent Year. The foregoing rental is calculated at the rate of Twenty
Four ($24) Dollars per rentable square foot. Upon finalization of floor area,
Landlord’s Architect shall determine the amount of such rentable square footage
constituting the Demised Premises (as hereafter defined) and the parties hereto
shall execute and deliver to one another a stipulation confirming the Base Rent
based upon such determination. The total square footage contained in the
Building (as hereafter defined) is stipulated to be 38,784.

 

“BUILDING” -

 

The two buildings erected in
the Town and Village of Mount Kisco, State of New York, and known as 34 South
Bedford Road, Mount Kisco, New York;

 

“COSTS OF OPERATION” -

 

As defined in Paragraph 4.03
A.

 

“COMMENCEMENT DATE” -

 

The date of the closing of
the sale of the Demised Premises pursuant to the Realty Agreement. Such closing
shall not occur for purposes of this Lease until Tenant shall have completed
all of Tenant’s Work and received a certificate of occupancy for the Demised
Premises, together with all licenses permits and approvals required to conduct
business therein.

 

 

“CPI” -

 

The Consumer Price Index For
Urban Wage Earners And Clerical Workers (Revised Series) (CPI-W.), All Items,
for New York, New York - Northeastern, New Jersey (1982-1984 equals 100) of the
United States Department of Labor Bureau of Labor Statistics. If such index is
no longer published at any time, the consumer price index shall mean a
comparable index generally used in commercial buildings located in Mount Kisco,
New York;

 

“DEMISED PREMISES” -

 

That portion of the first
floor of the building designated as the “New Building” shown in cross hatch on
the floor plan annexed hereto as Exhibit A, stipulated to being 11,000
rentable square feet, subject to adjustment as herein provided.

 

“EFFECTIVE DATE” -

 

The date this Lease is
executed by all of the parties hereto and a fully executed copy is delivered by
TOLCHIN & SONS PROPERTY GROUP, LLC, to Tenant marked “Approved” at the
foot thereof.

 

“EXPIRATION DATE” - The
fifteenth anniversary of the day immediately preceding the Commencement Date,
or if there shall be an Option Term (as hereafter defined) then the last day of
the Option Term.

 

“FORCE MAJEURE” -

 

Acts of God, governmental
restrictions or guidelines, strikes, labor disturbances (whether or not
lawful), shortages of materials and supplies, accident, inclement weather,
delays occasioned by the need for insurance adjustment, breakage, repair and
any other cause or events whatsoever beyond Landlord’s reasonable control.

 

“HAZARDOUS MATERIALS” OR
“ENVIRONMENTAL LAWS” -

 

As defined in Exhibit C.

 

“IMPOSITIONS” -

 

As defined in Paragraph
4.01.

 

“INITIAL OPTION TERM” -

 

See Option Term.

 

“MANAGING AGENT” -

 

Tolchin & Sons
Property Group, LLC and/or its designee.

 

“OPTION TERM”

 

The Initial Option Term
shall be a period of five (5) years commencing on the expiration of the
Term and expiring on the fifth (5th) anniversary thereof. The Second Option
Term shall be a period of ten (10) years commencing on the expiration of
the Initial Option Term and expiring on the tenth (10th) anniversary thereof.

 

“PLANNING AND CONSTRUCTION
TERM” -

 

That period of time from the
date the Demised Premises are made available to Tenant and the Commencement
Date.

 

2

 

“PROPORTIONATE SHARE” -

 

That percentage resulting
from dividing (a) the number of rentable square feet of space leased by
Tenant by (b) the total number of rentable square feet of space in the
Building stipulated to be as of the date hereof 38,784, as the same may change
from time to time, which as of the Effective Date is 28.36%.

 

“REAL PROPERTY” -

 

The real property bounded
and described in Exhibit B.

 

“REALTY AGREEMENT” -

 

That certain Agreement of
Purchase and Sale dated August 27, 1998, between 34 SOUTH BEDFORD ROAD
ASSOCIATES, as Seller, and TOLCHIN & SONS PROPERTY GROUP, LLC, as
Purchaser, as amended by Agreement bearing the same date, pertaining to the
sale of Premises known as 34 South Bedford Road, Mount Kisco, New York.

 

“RENT YEAR” -

 

The period commencing on the
1st day of the Term and ending with the day preceding the first anniversary of
such 1st day, and each twelve-month period thereafter measured from each
anniversary date, except that if the period between the last such anniversary
and the Expiration Date is less than twelve months, then the last Rent Year
shall be such lesser period.

 

“REPLACEMENT COST” -

 

As defined in Paragraph
11.02 (B).

 

“REPRESENTATIONS” -

 

As defined in Paragraph
28.01

 

“SECOND OPTION TERM” -

 

See Option Term.

 

“SECURITY DEPOSIT” -

 

$44,000 deposited pursuant
to Article 32 hereof.

 

“SUPERIOR LEASES” -

 

As defined in Paragraph
12.01.

 

“SUPERIOR MORTGAGES” -

 

As defined in Paragraph
12.01

 

“TENANT” -

 

RADIATION THERAPY SERVICES, INC.,
a Florida Corporation, having an office located at 2234 Colonial Blvd., Fort
Myers, FL 33907.

 

“TENANT’S CHANGES” AND
“CHANGES” -

 

As defined in Paragraph
8.01.

 

3

 

“TENANT’S UTILITIES WORK” -

 

As defined in Paragraph
5.01.

 

“TERM” -

 

The period beginning on the
Effective Date and ending at noon on the Expiration Date.

 

“TRIPLE NET” -

 

Rental which imposes the
responsibility for ALL expenses arising from the property, including the costs
of repairs of every nature, upon the tenant.

 

“UTILITIES” -

 

As defined in Paragraph 5.01.

 

ARTICLE 2

 

Demise
and Premises

 

2.01 Landlord hereby leases
to Tenant, and Tenant hereby hires from Landlord, the Demised Premises for the
Planning and Construction Term and thereafter during the Term (as the same may
be extended) for the rents hereinafter reserved and upon and subject to the
conditions (including limitations, restrictions and reservations) and covenants
hereinafter provided. Each party hereto agrees to observe and perform all of
the conditions and covenants herein contained on its part to be observed and
performed.

 

2.02 It is understood that
Landlord shall deliver the Demised Premises “as is”, that Tenant is fully
familiar with all aspects of (including, without limitation, the condition of)
the Demised Premises, The Demised Premises shall be leased to Tenant in “as is”
condition, which shall be that condition as of the date this Lease is executed.
Landlord makes no representation whatsoever to Tenant, and Tenant fully accepts
the risk, regarding the quality of the Demised Premises. The foregoing
notwithstanding, Landlord shall, at it’s own cost and expense during
construction, repair or replace any structural defect in the Buildings existing
on the date hereof during the course of Tenant’s work specified in Article 33
of this Lease. The opening for business by Tenant shall conclusively evidence
full performance by Landlord of the foregoing covenant.

 

2.03 Tenant covenants that
it shall perform the work specified in Article 33 of this Lease and
acknowledges that the performance of the specified work is an integral part of
the consideration given to Landlord for this Lease.

 

ARTICLE 3

 

Rent

 

3.01
Tenant shall pay to Landlord without notice or demand and without abatement,
deduction or set-off, in lawful money of the United States of America {or by
check, subject to collection, drawn on a bank or trust company which is a
member of the New York Clearing House Association), at the office of the
Landlord as specified on Page 1 hereof or at such other place as Landlord
may designate in writing, the Base Rent reserved under this Lease for each year
of the Term, payable in equal monthly installments in advance on the first day
of each and

 

4

 

every calendar month during
the Term; and Additional Rent consisting of all such other sums of money due
hereunder including, without being limited to, its Percentage Share of
Impositions, its Percentage Share of Costs of Operation, costs, expenses and
other payments as shall become due from and payable by Tenant hereunder (for
default in payment of which Landlord shall have the same remedies as for a
default in payment of Base Rent) (“Additional Rent”). There shall be no Base
Rent or Additional Rent due hereunder for the first ninety days after the date
hereof. It is intended by the parties hereto that the Base Rent and Additional
Rent shall be absolutely net to Landlord so that this Lease shall be considered
a so called “triple net” lease.

 

3.02 Tenant shall pay the
Base Rent and Additional Rent herein reserved promptly as and when the same
shall become due and payable under this Lease. If the Commencement Date shall
occur on a day other than the first day of a calendar month the Base Rent and
Additional Rent shall be prorated for the period from the Commencement Date to
the last day of the said calendar month and shall be due and payable on the
Commencement Date. If the Expiration Date shall occur on a day other than the
last day of a calendar month, the Base Rent and Additional Rent shall be
prorated for the period from the first day of said month to the Expiration
Date.

 

3.03 Whenever used in this
Lease, the term (insofar as it pertains to this Lease) “fixed rent”, “minimum
rent”, “base rent” or “basic rent”, or any such term using the word “rental”,
“rents”, or “rentals” in lieu of “rent”, shall mean Base Rent; and whenever
used in this Lease, the term (insofar as it pertains to this Lease) “rent”,
“rental”, “Rent”, or the plural of any of them, shall mean Base Rent and
Additional Rent.

 

3.04 If Tenant shall fail to
pay within ten (10) days of when due any installment or payment of Base
Rent or Additional Rent, Tenant shall be required to pay a late charge of $.05
for each $1.00 which remains so unpaid. Such late charge is intended to
compensate Landlord for additional expenses incurred by Landlord in processing
such late payments. In addition to such late charge, Tenant shall pay interest
on amounts so unpaid from the date such payment was due (without grace period)
to the date payment is credited to Landlord’s account as good funds at the
Prime Lending rate as published in the Wall Street Journal from time to time,
plus two (2%) percent per annum. Nothing herein shall be intended to violate
any applicable law, code or regulation, and in all instances all such charges
shall be automatically reduced to any maximum applicable legal rate or charge.
Such charge shall be imposed monthly for each late payment.

 

3.05 It is the purpose and
intent of Landlord and Tenant that the Base Rent shall be absolutely net to
Landlord, and that all taxes, assessments, costs, expenses and other charges
and obligations of every kind and nature whatsoever relating to the Demised
Premises or the Building and improvements situated thereon which may arise or
become due during or out of the Term shall be paid by Tenant, and that Landlord
shall be indemnified and saved harmless by Tenant from and against the same.

 

ARTICLE 4

 

Payment
of Taxes, Assessments, Cost of Operation, Etc.

 

4.01 Tenant shall pay
Landlord, as additional Rent, Tenant’s Proportionate Share of all Impositions
as hereafter defined. Such payment shall be made to Landlord no later than 10
days following submission by Landlord to Tenant of a computation thereof
together with a copy of the applicable bills, if available. Tenant shall pay
(except as hereinafter in Section 4.02 hereof provided), before any fine,
penalty, interest or cost may be added thereto, or become due, or be imposed by
operation of lav; for the non-payment thereof, its Proportionate Share of all
taxes, assessments, water and sewer rents, rates and charges, charges for
public utilities, excises, levies, licenses and permit fees, and other
governmental charges (including, without limitation, sales taxes on rent, if
any), general and special, ordinary and extraordinary,

 

5

 

unforeseen and foreseen, of
any kind and nature whatsoever which at any time during the term of this Lease
or any renewal term thereof may be assessed, levied, confirmed, imposed, or
become a lien On, the Demised Premises or any buildings or improvements now or
hereafter situated thereon or any part thereof (including, without limitation,
buildings and improvements during the course of construction), or any
appurtenance thereto, or on or as a result of any personal property on the
Demised Premises, (all of the foregoing of which collectively are herein
referred to as “Impositions”, and any of the same being herein referred to as
an “Imposition”); provided, however, that

 

(A) If, by law, any
Imposition may at the option of the taxpayer be paid in installments (whether
or not interest shall accrue on the unpaid balance of such Imposition), Tenant
may exercise the option to pay the same (and any accrued interest on the unpaid
balance of such Imposition) in installments and, in such event, shall pay such
installments as may become due during the Term, as the same respectively become
due and before any fine, penalty, further interest or cost may be added
thereto. The amount of all installments of any such Imposition, which are to
become due and payable after the expiration of the Term shall be the
responsibility of and shall be paid by Landlord.

 

(B) Any Imposition
relating to a fiscal period of the taxing authority, a part of which period is
included within the Term, and a part of which is included in a period of time
prior to or after the expiration of the Term shall (whether or not such
Imposition shall be assessed, levied, confirmed, imposed upon or become a lien
upon the Demised Premises, or shall become payable during the Term, and any
renewal term) be adjusted between Landlord and Tenant as of the Commencement
Date and/or the Expiration Date as the case may be, so that Tenant shall pay
its Proportionate Share of that portion of such Imposition which that part of
such fiscal period included in the period of time after the Commencement Date
and before the expiration of the Term, bears to such fiscal period, and
Landlord shall pay the remainder thereof, provided, however, that Tenant shall
not be entitled to receive any apportionment to the extent that Tenant shall be
in default in the performance of any of Tenant’s covenants, agreements and
undertakings in this Lease provided. Payment of any amount found to be due
either Landlord or Tenant shall be made within ten (10) days after written
request therefor.

 

4.02 Nothing herein
contained shall require Tenant to pay municipal income taxes, state income
taxes or federal income taxes assessed against Landlord, or estate, succession,
inheritance or transfer taxes of Landlord, or corporation franchise taxes of
Landlord, or corporation franchise taxes imposed upon any corporate owner of
the fee of the Demised Premises. If as a result of the failure of Tenant to
timely pay any Additional Rent due hereunder any fine, penalty, interest or
cost is imposed upon Landlord, then in addition to all other remedies available
to Landlord at law or in equity, Tenant shall pay such fine, penalty, interest
or cost to Landlord, but nothing contained herein shall be construed as a waiver
of default granted by Landlord pertaining to any such late payment.

 

4.03 Regarding Costs of
Operation, the following shall be applicable:

 

A. “Costs of Operation”
shall mean all costs and expenses incurred by Landlord in connection with the
operation, maintenance, and repair of any and all parts of the Real Property
and of the Building and the improvements thereon and therein, including,
without limitation, the following: all materials, supplies and equipment,
purchased or hired therefor; service contracts; fuel, electricity, gas, water;
cleaning and sanitary; refurbishing; painting; repairs and maintenance to
common areas, interior and exterior, and to any structural elements of the
Building including without limitation, the roof, whether or not characterized
as capital repairs or replacements; equipment and tools used in connection with
the maintenance and operation of the Real Property or the Building; snow
removal; extermination; all insurance costs of Landlord applicable to the Real
Property and the Building (including, without limitation, primary and excess
liability, and further including vehicle insurance, fire and extended coverage,
vandalism, broad form with all risk replacement cost endorsement coverages
including, without limitation, riot, strike, and war risk insurance, flood
insurance, ordinance and legal compliance coverage, demolition cost, rent
insurance and sign insurance); legal (other than those for preparation of this
and other leases) and accounting fees, commissions and charges; all cost to

 

6

 

Landlord of compliance with
all laws, rules and/or regulations (other than those which are the
responsibility of individual tenants) pertaining to the Real Property and/or
the Building, including without limitation cost of compliance with the
Americans with Disabilities Act; damages and other losses; taxes (including,
without limitation, sales and use taxes); security systems, and management fees
or if no managing agent is employed by Landlord, a sum in lieu thereof which is
not in excess of then prevailing rates for management fees payable in
Westchester County for similar office buildings, it being understood that
presently the management fee is 5% of Base Rent and base rent(s) payable
under other leases in the Building.

 

B. From time to time,
Landlord shall furnish to Tenant a written statement of the Costs of Operation
and shall also show the amount of estimated payments, if any, made by Tenant
for the Costs of Operation in question. Within 10 days of submission of such a
written statement, Tenant shall pay Landlord, as Additional Rent, the
Proportionate Share of such Costs of Operation; there shall be credited against
such payment any estimated payments made by Tenant with respect to such Costs
of Operation.

 

C. Landlord may submit to
Tenant Landlord’s estimate, reasonably determined, of Costs of Operation due
and payable or to become due and payable during any Rent Year, together with
the computation thereof and the basis therefor, in which event on the first day
of each month thereafter Tenant shall pay to Landlord one-twelfth of such
estimated sum (plus, if such statement is submitted after the commencement of
any Rent Year, then one-twelth of such sum times the number of months, or
partial months, which have elapsed since such commencement) as Additional Rent,

 

D. Landlord’s failure to
render a statement with respect to Costs of Operation for any period shall not
prejudice Landlord’s right to thereafter render a statement with respect
thereto or with respect to any subsequent period.

 

4.04 A. Landlord may
submit to Tenant Landlord’s estimate, reasonably determined, of Tenant’s
Proportionate Share of Impositions due and payable during any Tax Year,
together with the computation thereof and the basis therefor. In such event, on
the first day of each month during the calendar year in which such Tax Year
commences Tenant shall pay to Landlord one-twelfth of such estimate, except
that the first such payment and any future payments shall be adjusted by Landlord
to the end that 30 days prior to the dates when Taxes are due, without
penalties, Landlord shall have received an amount sufficient to pay all of such
Tenant’s Proportionate Share of such Impositions without penalty.

 

B. To the extent that such
estimated payments are less than the amount of such actual Impositions, Tenant
shall pay to Landlord the difference within 10 days next following rendition by
Landlord of an invoice therefor; to the extent that such estimated payments are
greater than the amount of such Impositions, the difference shall be credited
against the next monthly installment or installments of Base Rent until paid,
or if the last Rent Year is involved, such difference shall be paid to Tenant
within 10 days of rendition of such Landlord’s statement.

 

C. If Landlord, fails to
furnish an Imposition estimate for a Tax Year until after the commencement of
the calendar year in which such Tax Year begins, then until the first day of
the month following the month in which such estimate is furnished to Tenant,
Tenant shall continue to pay to Landlord on the first day of each month the
same monthly amount payable during the previous Tax Year as an Imposition
estimate.

 

D. Landlord’s failure to
render a statement with respect to Impositions for any Tax Year shall not
prejudice Landlord’s right to thereafter render a statement with respect
thereto or with respect to any subsequent Tax Year.

 

4.05 Only Landlord may, at
any time and from time to time, commence a protest, action or proceeding (a) to
reduce the assessment applicable to Impositions, or (b) for a refund of
Impositions. Tenant shall have no right to participate (without Landlord’s
prior written approval, which shall not be unreasonably withheld) in any such
action, and Tenant hereby

 

7

 

waives any and all right
which Tenant may have {whether at law, equity, or otherwise) to commence or
participate in any such action. If Landlord shall receive a refund for any Tax
Year, Tenant shall be entitled to that portion of any refund applicable to
Impositions, payment for which shall have been made by Tenant as Additional
Rent {including any interest paid on such refund by the taxing authorities),
after deducting from such refund and interest that portion (or all, as the case
may be) of the costs and expenses (including experts’ and attorneys’ fees) of
obtaining such refund; and Landlord shall be entitled to the balance of any
such refund.

 

ARTICLE 5

 

 Utilities

 

5.01 Tenant shall provide
and pay for heat, electricity, air conditioning, alarm, sprinkler, oil, gas,
water, sewer, and any and all other services and utilities (“Utilities”) for
the Demised Premises, and Landlord shall not be required to furnish, or be
liable for any interruption of, any services, utilities or facilities to, or
about, the Building. As part of Tenant’s Work; Tenant shall, at Tenant’s cost
and expense, cause to be installed in the Demised Premises sprinkler and
mechanical rooms for the Demised Premises, a new heating, ventilating and air-conditioning
unit on the roof of the Building to service the Demised Premises, new meters
and separate service from the utility companies to such meters, to measure the
consumption of all Utilities in the Demised Premises (collectively the
foregoing work in this sentence is called “Tenant’s Utilities Work”), and
Tenant shall pay the charges of all Utilities consumed directly to the utility
or other company supplying the same. In addition, Tenant shall as part of
Tenant’s Work, at Tenant’s cost and expense, cause to be installed within and
throughout the Demised Premises, and connected to Tenant’s Utilities Work, all
Utilities work necessary for Tenant’s use of the Demised Premises. None of the
existing Utilities or meters in the Building shall be available for use by
Tenant. In that regard, and prior to commencing other Tenant’s Work, Tenant
shall, at Tenant’s cost and expense, cause the Utilities to be separated from
those used for other space in the Building. Tenant shall not make any
installations, alterations, additions or changes to the Utility equipment or
systems in the Building without prior written consent of Landlord in each such
instance, which consent shall not be unreasonably withheld. Tenant shall comply
with the rules and regulations applicable to the service, equipment,
wiring and requirements of Landlord and of the companies supplying utilities to
the Building. Tenant agrees that its use of Utilities in the Building will not
exceed the capacity of existing feeders to the Building or the risers, wiring
and piping installations therein, and Tenant shall not use any Utility
equipment which, in Landlord’s reasonable judgment, will overload such
installations or interfere with the use thereof by other Tenants in the
Building. If, in Landlord’s or Tenant’s judgment, Tenant’s Utility requirements
necessitate installation of additional risers or other proper and necessary
equipment or services, the same shall be provided or installed by Tenant at
Tenant’s expense.

 

ARTICLE 6

 

Use

 

6.01 The Demised Premises
shall be used and occupied, in accordance with applicable law, solely as an
office for a radiological out-patient private practice, radiation out-patient
practice and services related thereto, including medical imaging equipment,
nuclear medicine and radiation treatment, computers and other related office
and medical equipment.

 

6.02 Tenant shall not use
the Demised Premises or any part thereof or allow the same to be used or
occupied in violation of any certificate of occupancy covering the use of the
Demised Premises or allow any condition to exist on the Demised Premises or any
part thereof or any article to be brought thereon, which may be dangerous,
unless safeguarded as required

 

8

 

by law.

 

6.03 Tenant shall not suffer
or permit the Demised Premises or any part thereof to be used in any manner, or
anything to be done therein, or suffer or permit anything to be brought into or
kept therein, which would in any way (i) violate any of the provisions of
any grant, lease, or mortgage to which this Lease is subordinate, (ii) violate
any laws or requirements of public authorities, (iii) make void or
voidable any fire or liability insurance policy then in force with respect to
the Building, (iv) make unobtainable from reputable insurance companies
authorized to do business in New York at standard rates any fire insurance with
extended coverage, or liability, boiler or other insurance required to be
furnished under the terms of any lease or mortgage to which this Lease is
subordinate, (v) cause or in Landlord’s reasonable opinion be likely to
cause physical damage to the Demised Premises or any part thereof, (vi) constitute
a public or private nuisance, (vii) impair in the reasonable opinion of
the Landlord the appearance, character or reputation of the Demised Premises,
(viii) discharge objectionable fumes, vapors or odors into or from the
Demised Premises, (ix) cause Tenant to default in any of its other
obligations under this Lease. In the event that Tenant’s use of the Demised
Premises shall increase premiums under any liability or property damage
insurance (including rent) obtained by Landlord in connection with the Demised
Premises, Tenant shall pay such increase to Landlord.

 

6.04 If any governmental
license or permit, including a Certificate of Occupancy, shall be required for
the proper and lawful conduct of Tenant’s business in the Demised Premises, or
any part thereof, then Tenant, at its expense, shall duly procure and
thereafter maintain such license or permit, but in no event shall failure to
procure and maintain same by Tenant affect Tenant’s obligations hereunder.
Tenant shall not at any time use or occupy, or suffer or permit anyone to use
or occupy the Demised Premises, or do or permit anything to be done on or about
the Demised Premises, in violation of the Certificate of Occupancy for the
Demised Premises or the Building.

 

6.05 Tenant shall not place
a load upon any floor of the Building exceeding the floor load per square foot
which such floor was designed to carry and which is allowed by certificate,
rule, regulation, permit or law.

 

ARTICLE 7

 

Access
and Reservation of Landlord Rights

 

7.01 Landlord or Landlord’s
agents or employees shall have the right to enter and/or pass through the
Demised Premises or any part thereof, at reasonable times during reasonable
hours and upon reasonable prior oral or written notice, (i) to examine the
Demised Premises or to show them to lessors of superior leases, holders of
mortgages, insurance carriers, or prospective purchasers, mortgagees or lessees
of the Demised Premises and (ii) for the purpose of making repairs or
changes in or to the Demised Premises upon the failure of Tenant to timely do
so (provided, however, that this right shall not be deemed as obligating
Landlord to make any repairs which are the responsibility of Tenant in
accordance with the terms hereof). Landlord’s rights under this Section shall
be exercised in such manner as will not unreasonably interfere with Tenant’s
use and occupancy of the Demised Premises. Landlord, its agents or employees,
shall also have the right to enter on and/or pass through the Demised Premises,
or any part hereof without notice at such times as such entry shall be required
by circumstances of emergency affecting the Demised Premises; included among
the foregoing emergencies shall be a situation where water has entered the
Building, in which event upon Landlord learning thereof Landlord may, but shall
not be obligated to enter the Demised Premises and remove such water, and
unless caused by Landlord’s negligence, Tenant shall pay Landlord for the cost
of such removal as Additional Rent.

 

7.02 In addition to all
other rights as permitted by law, Landlord hereby reserves unto itself the
right without notice to Tenant and without any liability to Tenant therefore,
without

 

9

 

constituting of being deemed
an eviction of Tenant or disturbance in Tenant’s use or possession of the
Demised Premises, the following : (1) to install pipes, conduits, wires
and ducts serving the Building and to use and maintain the same provided that
the foregoing shall not unreasonably interfere with Tenant’s use of the Demised
Premises; (2) to install and maintain such signage on the interior and exterior
of the Building as it shall determine; (3) to name the Building and to
change such name and to seek or consent to a change in the street address of
the Building in Landlord’s sole discretion; (4) for the purpose of making
repairs, decorations, improvements, alterations, or additions to the Building
or the Real Property, to enter the Demised Premises, temporarily close off
access ways, corridors, doors and other areas in the Building and to
temporarily suspend and/or interrupt services or use of the common areas within
the Building or within or on the Real Property; (5) to retain and use keys
to the Demised Premises and to all doors located therein, and to use the same
when Landlord deems such use necessary or appropriate; (6) to reserve to
itself or to grant to any other tenant the exclusive right to conduct a
particular business or render a particular service in the Building or on the
Real Property; (7) to subdivide the Real Property and thereafter to sell
any portion or all thereof and reallocate common charges as a result thereof;
(8) to take any and all other actions or to refrain from taking actions
which Landlord shall deem reasonable in connection with the operation,
preservation and maintenance of the Building and/or the Real Property and to
add costs thereof to Costs of Operation. If Landlord shall perform any
activities in or about the Building or Real Property after regular business
hours at the request of the Tenant, then Tenant shall pay as Additional Rent
all costs of overtime or any other expenses incurred as a result of such
request. In no event shall the exercise by Landlord of any of its legal rights
or any rights reserved to it under this provision or any other provision of
this Lease be deemed to give rise to any claim for set-off or abatement of rent
or any other claim against Landlord.

 

ARTICLE 8

 

Tenant’s
Changes

 

8.01 Tenant shall not, at
any time or from time to time during the Term, make such alterations,
additions, installations, substitutions, or improvements (hereinafter collectively
called “changes” and, as applied to changes provided for in this Article,
“Tenant’s Changes”) in and to the Demised Premises, without Landlord’s prior
written consent in all instances, which consent shall not be unreasonably
withheld. The foregoing notwithstanding, and without limitation, Landlord may,
in its sole and absolute discretion, decline to consent to any changes to the
structural elements of the Building and to any change which shall negatively
impact any systems serving others in the Building. If Landlord shall consent,
all Tenant’s Changes shall comply, whether structural or non-structural, with
the following conditions: (a) such changes will not result in a violation
of or require a change in the Certificate of Occupancy applicable to the
Demised Premises, unless Tenant shall have obtained the same or shall covenant
to do so and provide to Landlord such bond or other security as it shall
require; (b) the outside appearance, character or use of the Demised
Premises or the Building shall not be affected, and no Tenant’s Changes shall
weaken or impair the structural strength or lessen the value of the Building;
(c) the proper functioning of any of the mechanical, electrical, sanitary
and other service systems of the Building shall not be adversely affected; (d) in
performing the work involved in making such changes, Tenant shall be bound by
and observe all of the conditions and covenants contained in this Article and
in Article 33; (e) at the Expiration Date, Tenant shall on Landlord’s
written request restore the Demised Premises to their condition prior to the
making of any changes permitted by this Article, reasonable wear and tear
excepted, unless at the time of granting of Landlord’s consent, such
requirement was waived by Landlord; (f) before proceeding with any change
Tenant shall submit to Landlord plans and specifications for the work to be
done, and shall request Landlord’s approval in writing, and, if such change
requires approval by or notice to the lessor of a superior lease or the holder
of a superior mortgage, Tenant shall not proceed with the change until such
approval has been received, or such notice has been given, as the case may be,
and all applicable conditions and provisions of said superior lease or superior
mortgage with respect to the proposed change or alteration have been met or
complied with at Tenant’s expense (including, without limitation, all costs

 

10

 

incurred by Landlord in
reviewing and analyzing Tenant’s request for changes); and Landlord, if it
approves the change (only if Landlord’s approval is required in accordance with
the foregoing), will request such approval or give such notice, as the case may
be; any change for which approval has been received shall be performed strictly
in accordance with the approved plans and specifications, and no substantial
amendments or additions to such plans and specifications shall be made without
the prior written consent of Landlord; and Tenant shall not be permitted to
install and make a part of the Demised Premises any materials, fixtures or
articles which are subject to liens, conditional sales contracts, security
agreements or chattel mortgages; (g) Tenant shall not interfere with the
access or egress of other tenants nor otherwise interfere with the peaceful use
of the Building by such other tenants; and (h) Tenant shall comply with
all other terms and conditions of this Lease in connection with Tenant’s Changes.
Neither approval of the plans and specifications nor supervision of the
alteration by the Landlord shall constitute a representation or warranty by
Landlord as to the accuracy, adequacy, sufficiency, or propriety of such plans
and specifications or the quality of workmanship or the compliance of such
alteration with applicable law. Tenant shall pay the entire cost of the
alteration and, if requested by Landlord, and if such cost shall exceed
$25,000, Tenant shall deposit with Landlord prior to the commencement of the
alteration, the full cost of such improvement in form and amount required by
Landlord and/or its lender. As construction is completed, Tenant may direct
Landlord to disburse such sums from said deposit based upon Landlord’s
architect’s or engineer’s certification of the percentage of completion. All
costs of the foregoing shall be borne by Tenant.

 

8.02 All Tenant’s Changes
shall at all times comply with laws, orders and regulations of governmental
authorities having jurisdiction thereof, and all rules and regulations of
Landlord, and Tenant, at its expense, shall obtain all necessary governmental
permits and certificates for the commencement and prosecution of Tenant’s
Changes and for final approval thereof upon completion, and shall cause Tenant’s
Changes to be performed in compliance therewith and with all applicable
requirements of insurance bodies, and in good and first class workmanlike
manner, using materials and equipment of at least first class quality.
Throughout the performance of Tenant’s Changes, Tenant, at its expense, shall
carry, or cause to be carried, worker’s compensation insurance in statutory
limits, and general liability insurance for any occurrence on, in or about the
Demised Premises, of which Landlord, managing agent and any mortgagee shall be
named as parties insured, in such limits as Landlord may reasonably prescribe
(but not less than those specified in Article 11), with insurers admitted
to do business in the State of New York having a rating of no less than “A/10” in
the most current edition of Bests Key Rating Guide. Tenant shall furnish
Landlord with reasonably satisfactory evidence that such insurance is in effect
at or before the commencement of Tenant’s Changes and, on request, at
reasonable intervals thereafter during the continuance of Tenant’s Changes. No
Tenant’s Changes shall involve the removal of any fixtures, equipment or other
property in the Demised Premises, unless such fixtures, equipment or other
property shall be promptly replaced, at Tenant’s expense and free of superior
title, liens and claims, with fixtures, equipment or other property (as the
case may be) of like utility and at least equal value acceptable to Landlord
(which replaced fixtures, equipment or other property shall thereupon become the
property of Landlord), unless Landlord shall otherwise expressly consent in
writing.

 

8.03 Tenant, at its expense,
and with diligence and dispatch, shall procure the cancellation or discharge of
all notices of violation arising from or otherwise connected with Tenant’s
Changes which shall be issued by the appropriate department of the municipality
where the Building is located or any other public authority having or asserting
jurisdiction. Upon completion of any Tenants Changes, Tenant shall promptly furnish
Landlord with sworn owner’s and contractor’s statements and full and final
waivers of lien covering all labor and materials included in such Tenant’s
Changes, Tenant shall not permit any mechanics lien to be filed against the
Building, or any part thereof, arising out of any Tenant’s Changes performed,
or alleged to have been performed, by or on behalf of Tenant. Tenant shall
defend, indemnify and save harmless Landlord against any and all mechanics and
other liens in connection with Tenant’s Changes, repairs or installations,
including but not limited to the liens of any conditional sales of, or chattel
mortgages upon, any materials, fixtures, or articles so installed in and
constituting part of the Demised Premises and against all costs, attorney’s fees,
fines,

 

11

 

expenses and liabilities
reasonably incurred in connection with any such lien, conditional sale or
chattel mortgage or any action or proceeding brought thereon. Tenant, at its
expense, shall commence the necessary proceedings to procure the satisfaction
or discharge of all such liens within ten (10) days of the filing of such
lien against the Demised Premises or the Building and shall, within the minimum
time period possible under the laws of the State of New York, cause such lien
to be discharged. If Tenant shall fail to comply with the foregoing
requirements within the aforesaid time periods, then, in addition to any other
right or remedy, Landlord may, but shall not be obligated to, discharge the
same either by paying the amount claimed to be due or by procuring the
discharge of such lien by deposit or by bonding proceedings. If Landlord is
required to make any repairs or perform any maintenance or do any work of any
nature whatsoever with respect to Tenant’s Changes, then Tenant shall pay to
Landlord immediately upon demand the cost of any such repairs or maintenance as
Additional Rent. However, nothing herein shall be construed to impose a duty on
Landlord to mitigate its damages by undertaking any repair which is Tenant’s
obligation.

 

ARTICLE 9

 

Personal
Property

 

9.01 All fixtures,
equipment, improvements and appurtenances attached to or built into the Demised
Premises at the Commencement Date or during the Term, whether or not by or at the
expense of Tenant, shall be and remain a part of the Demised Premises, shall be
deemed the property of Landlord and shall not be removed by Tenant except as
hereinafter in this Article expressly provided. Tenant shall remove all of
Tenant’s medical equipment and accessories, machines and trade fixtures
(including, without limitation, all medical equipment or machines bolted to the
floor) on the Expiration or earlier termination of this Lease, provided that it
restore the Demised Premises as provided in Article 19 hereof.

 

9.02 All items of Personal
Property, or of the type or nature similar to items of Personal Property, may
be used by Tenant and, if consumable, consumed by Tenant in the operation of
the Demised Premises for the permitted use. If Tenant desires to replace any
non-consumable items of Personal Property, it may do so subject to Landlord’s
prior written consent which Landlord shall not unreasonably withhold or delay,
provided that Tenant shall replace such items with others of at least equal quality
and value.

 

ARTICLE 10

 

Repairs
and Maintenance

 

10.01 Tenant shall, at all
times during the Term, at its sole cost and expense, maintain the Demised
Premises in good first class order and shall provide all cleaning and
janitorial service to the Demised Premises, including among other things the
cleaning of exterior windows, necessary to maintain the same in such first
class order. Tenant, at Tenant’s sole cost and expense, shall make all
necessary repairs to the Demised Premises, of whatever nature other than
structural repairs referred to below, including but not limited to interior and
exterior, extraordinary as well as ordinary, foreseen or unforeseen, and will
keep all improvements and the fixtures, machinery and equipment located in or
on the Demised Premises, or servicing the same and every part thereof in good
first class order and repair. Tenant shall be solely responsible for the
maintenance, repair and/or replacement of any computer, communications,
plumbing fixtures, heating, ventilating and air conditioning units and similar
equipment installed by Tenant or at its request, whether or not located in the
Demised Premises. Landlord shall have no duty whatsoever to make any repairs to
the Demised Premises, or to the fixtures, machinery and equipment located
thereon or serving the same, during the Term of this Lease or any Option Term
thereof. Landlord shall make structural repairs to the Building and the Demised
Premises which in its reasonable judgement are

 

12

 

necessary, and the same
shall be added to Landlord’s Costs of Operation. If any part of the Demised
Premises shall be damaged solely by the negligence of the Landlord, its agents
or employees, then Landlord shall repair such damage at its sole cost and
expense.

 

10.02 In the event Tenant
defaults in making any repairs to, or maintenance of, the Demised Premises and,
at its option, Landlord elects to make such repairs (at the expense of Tenant
and subject to any other terms of this Lease) during Tenant’s continued
occupancy of the Demised Premises (which election shall not waive any other
rights Landlord may have hereunder, including, but not limited to, the right of
eviction), Landlord shall have no liability to Tenant by reason of any inconvenience,
annoyance, interruption or injury to Tenant’s business arising from Landlord
making said repairs. Tenant shall pay to Landlord, immediately upon demand, and
as Additional Rent, the cost of any repairs or maintenance performed by
Landlord which are the responsibility of Tenant under this Lease. Nothing
contained in this paragraph shall be construed to impose upon Landlord any duty
to mitigate damages which might be incurred by it.

 

10.03 When used in this
Lease the term “repair” shall be deemed to include restoration and replacement
as may be necessary to achieve and/or maintain good working order and condition
consistent with comparable buildings in the Mount Kisco, New York area.

 

ARTICLE 11

 

Insurance

 

11.01 Tenant, at its own
cost and expense, shall procure and maintain for the mutual benefit of, and
naming Landlord, Landlord’s Managing Agent, Landlord’s mortgagee and Tenant,
commercial general liability insurance in an amount not less than $10,000,000
combined single limit of liability, on an occurrence basis, for bodily injury,
death and property damage arising out of any one occurrence occurring in, upon,
adjacent, or connected with the Demised Premises or any part thereof and, from
time to time during the Term, for such higher limits, if any, as are currently
carried with respect to similar properties in the area where the Demised
Premises are located.

 

11.02 (A) Tenant at its
own cost and expense, during the Term, shall keep the leasehold improvements on
the Demised Premises together with all other betterments and improvements
forming part of the Demised Premises, and all personal property including
without limitation, all machinery and equipment, whether or not attached to or
affixed to the Building {“Tenant’s Assets”), insured against loss or damage by
fire and such other risks as are from time to time customarily included in the
broad form of extended coverage endorsements (commonly known as “all risk”
endorsements) attached to the fire insurance policies in the State of New York,
with insurers admitted to do business in the State of New York having a rating
of no less than “A/10” in the most current edition of Bests Key Rating Guide,
in an amount sufficient to prevent the assured from becoming a co-insurer
within the terms of the applicable policies, but in any event in an amount not
less than one hundred (100%) percent of the full replacement cost of Tenant’s
Assets.

 

(B) The term
“replacement cost” shall mean the full cost of repair or replacement of
Tenant’s Assets, without deduction for depreciation.

 

(C) If Landlord claims
that the amount of fire insurance carried by Tenant is not sufficient to cover
the replacement cost of Tenant’s Assets as from time to time existing, then
Tenant, at the request of Landlord, shall obtain a written appraisal of the
insurance company or companies underwriting the risk or of a party acceptable
to such company or companies and the replacement cost as given in said
appraisal shall be deemed the replacement cost of the Tenant’s Assets.

 

11.03 Tenant shall also provide,
at Tenant’s sole cost and expense (i) insurance

 

13

 

protecting Landlord and
Managing Agent against any and all lost Rents and Additional Rents under this
Lease (fixed, additional or otherwise) for a period of one (1) year as a
result of any injury or damage to the Demised Premises or the Building, and
(ii) insurance covering all plate glass in the Demised Premises.

 

11.04 (A) All insurance
required under this Article 11 shall name as an insured thereunder and as
loss payee, Landlord (and, if requested by Landlord, Landlord’s mortqagee) and
Landlord’s Managing Agent, and shall be in form reasonably satisfactory to
Landlord, shall contain agreements by the insurer, without disclaimers and with
waiver of subrogation, that the policy shall not be subject to cancellation,
termination or change except after at least 30 days’ prior written notice to
Landlord, Landlord’s Managing Agent, and Landlord’s mortgagee, shall be issued
by an insurance company or companies reasonably satisfactory to Landlord,
qualified to do business in the State of New York, and shall provide that the
act or omission of one insured shall not invalidate the policy as to any other
insured. All policies required pursuant to this Article 11, or duly
executed certificates for the same, shall be deposited with Landlord and
Managing Agent not less than 10 days prior to the commencement of the Term and
any Option Term and upon renewals of said policies not less than 30 days prior
to the expiration of the term of such coverage. All such policies or
certificates shall be delivered together with satisfactory evidence of the
payment of the premium therefor when such payment is due.

 

(B) There shall be
maintained deductibles in such amounts as Tenant shall reasonably determine but
in no event in excess of $5,000 with respect to property insurance and $10,000
with respect to liability insurance.

 

(C) All dividend and
return premiums on each policy furnished by the Tenant shall belong to Tenant.
If at any time Tenant shall neglect to effect the insurance required hereby,
the Landlord may procure such insurance as the agent of the Tenant, and the
amount of the premiums paid for such insurance by Landlord shall become
immediately due from the Tenant as Additional Rent.

 

(D) Only Landlord
and/or Landlord’s mortgagee shall be authorized to settle any claims resulting
from destruction or damage to Tenant’s Assets or the Demised Premises, but
Landlord shall consult with Tenant in connection therewith. The foregoing
notwithstanding, Tenant shall be permitted to negotiate adjustment of insurance
claims regarding medical equipment provided that any shortfall between the
amount of the recovery and the actual cost to replace such equipment shall be
paid for by Tenant.

 

11.05 Landlord shall insure
the Building against damage or destruction by fire or other casualties under a
policy of insurance, including broad form, extended coverage “all risk”
endorsements. Said insurance shall be in an amount equal to not less than one
hundred (100%) percent of the full insurable replacement value of the Building
and may contain a deductible in such amount, as Landlord determines after
consultation with Tenant, provided, however, (a) in the event the Demised
Premises shall be damaged by fire or other cause, Tenant shall be responsible
for, and shall pay to Landlord, as Additional Rent, the amount of the
deductible and (b) if Tenant shall notify Landlord that it objects to the
amount of the deductible, then Landlord shall cause the insurance to be amended
to eliminate the deductible. From time to time, Landlord may, in its sole
discretion increase or add to the amounts and types of coverage consistent with
community standards.

 

ARTICLE 12

 

Subordination,
Attornment, Notice to Lessor and Mortgagees

 

12.01 This Lease, and all
rights of Tenant hereunder, are and shall be (a) subject and subordinate
in all respects to all present and future ground leases, over-riding leases and
underlying leases and/or grants of term of the Real Property and/or the
Building in which the

 

14

 

Demised Premises shall be
located( “superior leases”) (b) subject and subordinate to all mortgages
and building loan agreements, which may now or hereafter affect the land and/or
the Building and/or any superior leases, (c) at the option of the holder
of the first mortgage on the Building, subordinate to the first mortgage
thereon, and (d) if consented to by such holder of the first mortgage, at
the option of the holder of any junior or secondary mortgages, subordinate to
such junior or secondary mortgages (any of which mortgages referred to in
clauses (b), (c) and (d) hereof, whether or not subordinate, are
herein referred to as “superior mortgages”), whether or not the superior leases
or superior mortgages shall also cover other lands and/or buildings, and the
foregoing shall extend to each and every advance made or hereafter to be made
under the superior mortgages, and to all renewals, modifications, replacements
and extensions of the superior leases and superior mortgages and spreaders,
consolidations and modifications of the superior mortgages. This Section shall
be self-operative (after the holder of any superior mortgages exercises its
option or grants its consent, as above provided) and no further instrument of
subordination shall be required. In confirmation of such subordination, Tenant
shall within 10 days after receipt thereof execute and deliver at its own cost
and expense any instrument, in recordable form, if required, that Landlord, the
lessor of any superior lease or the holder of any superior mortgage or any of
their respective successors or prospective successors in interest may request
to evidence such subordination. If Tenant fails to execute any such instrument
within said 10-day period, (a) such failure shall, at Landlord’s sole
election, constitute a material default by Tenant under this Lease and, in such
event, Tenant agrees to pay as liquidated damages, in addition to all other
remedies available to Landlord, an amount equal to $100 per day for each day
that Tenant fails to deliver such certificate to Landlord after the expiration
of such 10-day period and (b) Tenant irrevocably appoints Landlord as its
attorney-in-fact, in Tenant’s name, to execute such instrument.

 

Tenant agrees without
further instruments of attornment in each case, to attorn to lessor under any
superior lease, or to the holder of any superior mortgage or any successor to
such holder’s interest, upon such holder’s or successor’s request, as the case
may be, to waive the provisions of any statute or rule or lav; now or
hereafter in effect which may give or propose to give Tenant any right of
election to terminate this Lease or to surrender possession of the Demised
Premises in the event a superior lease is terminated or a superior mortgage is
foreclosed, and that unless and until said lessor, or holder, as the case may
be, shall elect to terminate this Lease, Tenant’s obligations under this Lease
shall not be affected in any way whatsoever by any such proceeding or
termination (it being understood, however, that such holder or successor in
interest shall under no circumstances be bound by any payment of rent for more
than one month in advance, except for the Security Deposit, if any, or be bound
by any amendment or modification of the Lease without the consent of such
holder or successor in interest), and Tenant shall take no steps to terminate
this Lease without giving written notice to said lessor under the superior
lease, or holder of a superior mortgage, and a reasonable opportunity to cure
(without such lessor or holder being obligated to cure), any default on the
part of the Landlord under this Lease. In confirmation of such attornment,
Tenant shall within 10 days execute and deliver at its own cost and expense any
instrument, in recordable form, if required, that Landlord, the lessor of any
superior lease or the holder of any superior mortgage or any of their
respective successors in interest may request to evidence such attornment. If Tenant
fails to execute any such instrument within said 10-day period, (a) such
failure shall constitute a material default by Tenant under this Lease and, in
such event, Tenant agrees to pay as liquidated damages, in addition to all
other remedies available to Landlord, an amount equal to $100 per day for each
day that Tenant fails to deliver such certificate to Landlord after the
expiration of such 10-day period and (b) Tenant irrevocably appoints
Landlord as its attorney-in-fact, in Tenant’s name, to execute such instrument.

 

15

 

ARTICLE 13

 

Assignment,
Mortgaging, Subletting

 

13.01 Neither this Lease nor
the Term or Option Term and estate hereby granted, nor any part hereof or
thereof, nor the interest of Tenant in any sublease or the rentals thereunder,
shall be assigned, mortgaged, pledged, encumbered or otherwise transferred by
Tenant by operation of law or otherwise, and neither the Demised Premises nor
any part thereof, shall be encumbered in any manner by reason of any act or
omission on the part of Tenant or anyone claiming under or through Tenant, or
shall be sublet or be used or occupied or permitted to be used or occupied by
anyone other than Tenant or for any purpose other than as permitted by this Lease,
except as expressly otherwise provided in this Article. Subject to the consent
of Landlord’s mortgagee, and except as hereafter specified, Tenant may sublet
and/or assign all, but not less than all of the Demised Premises with the
express prior written consent of Landlord, which consent shall not be
unreasonably withheld. The foregoing notwithstanding, Tenant shall not sublet
the Demised Premises to any current tenant of the Building or any prospective
tenant which shall have dealt with Landlord, directly or indirectly, within six
(6) months preceding such sublease. If Tenant shall sublease the Demised
Premises and pursuant to such sublease. Tenant shall be entitled to receive
rental or any other form of compensation for the use and occupancy or operation
of the Demised Premises which is in excess of the Rent and Additional Rent to
be paid by Tenant to Landlord under this Lease, Tenant shall remit to Landlord
50% of such excess on the first day of each month during the duration of such
sublease. Any failure of Tenant to remit such sum when due shall constitute a
default by Tenant in the payment of rental hereunder.

 

13.02 If this Lease be
assigned, whether or not in violation of the provisions of this Lease, Landlord
may collect rent from the assignee. If the Demised Premises or any part thereof
be sublet or be used or occupied by anybody other than Tenant, whether or not
in violation of this Lease, Landlord may after default by Tenant, and
expiration of Tenant’s time to cure such default, collect rent from the
subtenant or occupant. In either event, Landlord may apply the net amount
collected to the rents herein reserved, but no such assignment, subletting,
occupancy or collection shall be deemed a waiver of any of the provisions of
Section 13.01, or the acceptance of the assignee, subtenant or occupant as
Tenant, or a release of Tenant from the further performance by Tenant of
Tenant’s obligations under this Lease. The consent by Landlord to assignment,
mortgaging, subletting or use or occupancy by others shall not in any way be
considered to relieve Tenant from obtaining the express written consent of
Landlord to any other or further assignment, mortgaging, or subletting or use
or occupancy by others not expressly permitted by this Article. Tenant agrees
to pay to Landlord reasonable counsel fees incurred by Landlord in connection
with any proposed assignment of Tenant’s interest in this Lease or any proposed
subletting of the Demised Premises or any part thereof (including, without
limitation, the preparation and/or review of any and all documents in
connection with any rights under this Article 13) whether or not such
transaction is concluded.

 

13.03 Anything contained in
the this article to the contrary notwithstanding, Tenant may sublet all or any
portion of the Demised Premises to NY Radiation Therapy Management Services, Inc.
and to Westchester MRI Specialists P.C., provided Tenant is and remains
directly or indirectly the sole owner of each of them or an affiliate and
Tenant fully complies with the provisions of Article 13.04, below. The
parties hereto acknowledge that the Landlord has a unique interest in the
identity and nature of any occupant in the Building, and, therefor,
notwithstanding any law or rule of law to the contrary, Landlord may
withhold its consent to any particular subtenant (other than those named above)
as well as any sublease of the entire Demised Premises, in its sole and
absolute discretion, subject only to those laws relating to unlawful
discrimination. Without limiting the generality of the foregoing, and except
for the corporations named above, so long as the Mt. Kisco Medical Group P.C,
(“MKMG”) or its successors or assigns shall conduct a medical practice having
more than twenty physicians in the Town and Village of Mt, Kisco, the Demised
Premises shall not be used by: a medical management services or similar
organization which provides management or administrative services to physician
practices (“MSO”); a physician practice management company which

 

16

 

provides management or
administrative services to physician practices (“PPMC”); any medical practice
with more than three physicians; any medical practice which is part of a
multi-site medical practice (e.g. a “group without walls”); or any medical
practice which is a party to a management, administrative services or a similar
agreement with an MSO or PPMC. The provisions of this Section to the
contrary notwithstanding, the Demised Premises or any part thereof may be
leased to the extent otherwise permitted herein to any of the following: any
affiliate of MKMG, any medical specialty not competitive as of August 27,
1998 with MKMG, psychiatry practices, employee assistance programs,
rehabilitative medicine practices, chiropractic practices, oral surgery
practices, dental practices, occupational health programs, neurosurgical
practices or physiatry practices.

 

13.04 This Lease may be
assigned or sublet to a corporation, partnership or limited liability company
which is controlled and 100% owned by Tenant or under common control through
representatives having not less than the full right and power to make all
decisions without restriction (sometimes the foregoing is in this Lease called
“affiliate”), or the Demised Premises may be sublet to a subtenant approved by
Landlord in writing pursuant to this Article or named in this Article 13
so long as the Demised Premises continue to be used for the permitted use; the
transfer is not principally for the purpose of transferring the leasehold estate
created hereby; Tenant shall remain liable to Landlord to the full extent of
this Lease; the assignee or sublessee assumes by documents satisfactory to
Landlord all of Tenant’s obligations to be performed under this Lease with
respect to the space assigned or sublet; and subject to all of the other terms
and conditions of this Lease, provided that Tenant notifies Landlord thereof
within 20 days prior to the occurrence of any such event.

 

13.05 If any suit be brought
by anyone other than Tenant alleging that the plaintiff therein was injured by
virtue of Landlord’s failure or refusal to grant its consent under this Article 13,
Tenant shall indemnify and hold Landlord harmless from and against any and all
loss, cost, damage or expense (including all legal fees and costs) arising from
such suit.

 

ARTICLE 14

 

Compliance
with Laws and Requirements of Public Authorities

 

14.01 Tenant shall promptly
notify Landlord of any written notice it receives of the violation of, and
Tenant shall comply with, any law, statute, code, rule, regulation or
requirement of any Federal, State, Municipal or other public authorities which
shall, with respect to the Demised Premises, or the use and occupation of any
of the foregoing or the abatement of any nuisance, impose any violation, order
or duty arising from (i) Tenant’s or any other party’s use of the Demised
Premises, (ii) the manner of conduct of any business or operation of its
installations, equipment or other property therein, (iii) any cause or
condition created by or at the instance of Tenant or any other party, or (iv) breach
of any of Tenant’s obligations hereunder.

 

14.02 Tenant and its
employees and agents shall, at their cost and expense, faithfully observe and
comply with all laws, statutes, codes, rules, regulations and requirements
referred to in Section 14.01 hereof.

 

14.03 The Landlord named as
such in this Lease hereby represents and warrants to the Tenant named as such
in this Lease that, as of the date hereof, as follows:

 

A. The Landlord is not aware
of any violations of law, rules or regulations, codes, ordinances or other
governmental action involving use of the Demised Premises. Landlord agrees to
disclose any information or knowledge it may have concerning use of the Real
Property, restrictions on the Real Property or any present or future plans
known to it that any governmental agency or private individual will have or may
have concerning the Real Property, or the Landlord, if it has knowledge of the
same.

 

17

 

B. Landlord, to the best of
its knowledge, warrants that neither Landlord nor any of its agents, have any
knowledge of any hazardous waste or hazardous materials being placed by prior
owners or tenants on the Real Property, which would be disadvantageous to
construction of otherwise be considered as having hazardous waste or toxic
material qualities in the opinion of any governmental agency or other
jurisdiction regulating such environmental control.

 

C. Landlord represents to
the best of its knowledge that there are no underground gas tanks or other fuel
tanks beneath the Real Property.

 

D. Landlord further
represents that to the best of its knowledge there have been no environmental
violations on the Real Property and that it has no knowledge of any environmental
problems on the Real Property.

 

14.04 If Landlord shall sell
or otherwise transfer all or any portion of the Real Property, no successor
Landlord shall be liable to Tenant with respect to any matter or thing done or
omitted to be done by the predecessor Landlord hereunder, but the predecessor
Landlord shall remain liable therefore.

 

ARTICLE 15

 

Quiet
Enjoyment

 

15.01 Landlord covenants
that if, and so long as, Tenant pays all of the Base Rent and Additional Rent
due hereunder, and keeps and performs each and every covenant, agreement, term,
provision and condition herein contained on the part and on behalf of Tenant to
be kept and performed, Tenant shall quietly enjoy the Demised Premises without
hindrance or molestation by Landlord or by any other person lawfully claiming
the same, subject to the covenants, agreements, terms, provisions and
conditions of this Lease and to any superior leases and/or superior mortgages.

 

ARTICLE 16

 

Non-Liability
and Indemnification

 

16.01 Neither Landlord nor
any agent or employee of Landlord shall be liable to Tenant, its employees,
agents, contractors and licensees, and Tenant shall hold Landlord harmless for
any injury or damage to Tenant or to any other persons for any damage to, or
loss (by theft, vandalism or otherwise) of any property of Tenant and/or of any
other person, irrespective of the cause (unless caused by Landlord’s negligence
or that of its agents and employees) of such injury, damage or loss, including,
without limitation, that caused by water regardless of its source. Landlord
shall not be liable in any event for loss of, or damage to, any property
entrusted to any of Landlord’s employees or agents by Tenant without Landlord’s
specific written consent. Landlord shall not be liable for the security or
physical safety of Tenant, its employees, agents or visitors, including,
without limitation, after hours use of the Demised Premises, the Building or
the Real Property.

 

16.02 Tenant shall defend,
indemnify and save harmless Landlord and its agents and employees against and
from all liabilities, obligations, damages, penalties, claims, costs, charges
and expenses, including reasonable architects’ and attorneys’ fees, which may
be imposed upon or incurred by or asserted against Landlord and/or its agents
by reason of any of the following occurring during the Term, or during any
period of time prior to the Commencement Date that Tenant may have been given
access to or possession of all or any part of the Demised Premises or Real
Property: (a) any work or thing done in on or about the Demised Premises
or the Real Property or any part thereof by or at the instance of Tenant, its

 

18

 

agents, contractors,
subcontractors, servants, employees, licensees or invitees; (b) any
negligence or otherwise wrongful act or omission on the part of Tenant or any
of its agents, contractors, subcontractors, servants, employees, subtenants,
licensees or invitees; (c) any accident, injury or damage to any person or
property occurring in, on or about the Demised Premises, the Building, the Real
Property or any part thereof, or vault, passageway or space adjacent thereto;
(d) any failure on the part of Tenant to perform or comply with any of the
covenants, agreements, terms, provisions, conditions or limitations contained
in this Lease on its part to be performed or complied with, (e) storage or
use on the Demised Premises of any “Hazardous Materials” or in violation of any
“Environmental Laws” as those terms are defined in Exhibit C, which
Exhibit is incorporated herein in its entirety. In case any action or
proceeding is threatened or brought against Landlord by reason of any such
claim, Tenant upon written notice from Landlord shall at Tenant’s expense
resist or defend such action or proceeding by counsel approved by Landlord in
writing, which approval Landlord shall not unreasonably withhold. Landlord
shall be entitled to participate in such defense to whatever extent it deems
advisable and Tenant shall instruct counsel to provide full and complete
information to Landlord immediately on request.

 

16.03 Except as otherwise
expressly provided herein, this Lease and the obligations of Tenant to pay Base
Rent and Additional Rent hereunder and perform all of the other covenants,
agreements, terms, provisions and conditions hereunder on the part of Tenant to
be performed shall in no wise be affected, impaired or excused for any reason
whatsoever, including without limitation, because Landlord is unable to fulfill
any of its obligations under this Lease or is unable to supply or is delayed in
supplying any service, express or implied, to be supplied or is unable to make
or is delayed in supplying any equipment or fixtures, or if Landlord is
prevented or delayed from so doing by reason of Force Majeure; provided that
Landlord shall in each instance exercise reasonable diligence to effect
performance when and as soon as possible.

 

16.04 With respect to any
parking areas, roadways and driveways on or about the Real Property or the
Demised Premises used by Tenant, its personnel or visitors, such use shall be
at their own risk and Landlord shall not be liable for any injury to person or
property, or for loss or damage to any automobile or its contents, resulting
from theft, collision, vandalism or any other cause whatsoever. Landlord shall
have no obligation whatsoever to provide a guard or any other personnel or
device to patrol, monitor, guard or secure any parking areas.

 

16.05 The indemnities
provided in this Article 16 and any other indemnities of Landlord by
Tenant shall survive the expiration of the Term, the Option Term, or any
termination of this Lease for any reason whatsoever.

 

ARTICLE 17

 

Destruction
and Damage

 

17.01 If the Demised
Premises and/or access thereto, or any part thereof, shall be damaged by fire
or other cause, Tenant shall give immediate notice thereof to Landlord, and
this Lease shall continue in full force and effect except as hereinafter set
forth. In such event, Landlord shall, subject to compliance with the provisions
of any superior mortgage or superior lease, and to its rights under Section 17.03,
repair the damage and restore and rebuild the Demised Premises with reasonable
diligence as nearly as may be practicable to its condition immediately prior to
such damage. If the proceeds of Tenant’s insurance coverage are in the opinion
of Landlord insufficient to restore and rebuild the Demised Premises,
Landlord’s obligation to repair the damage and restore and rebuild the Demised
Premises shall be subject to Tenant’s payment to Landlord of such insufficiency
prior to commencement of any work.

 

17.02 If the Demised
Premises shall be partially or totally damaged or rendered partially or totally
untenantable by fire or other cause without the fault or neglect of Tenant,
Tenant’s employees, agents, contractors, visitors or licensees, until such
repairs are made the Rent shall

 

19

 

be apportioned according to
the part of the Demised Premises which is usable by Tenant and shall be abated
from the date of such damage to the date rent loss insurance shall be
exhausted. However, if the proceeds of Tenant’s insurance coverage are in the
opinion of Landlord insufficient to restore and rebuild the Demised Premises,
Landlord’s obligation to repair the damage and restore and rebuild the Demised
Premises shall be subject to Tenant’s payment to Landlord of such insufficiency
prior to commencement of any work.

 

17.03 If the Demised
Premises are totally or substantially damaged or are rendered wholly or
substantially untenantable by fire or other cause, and if Landlord shall decide
not to restore or not to rebuild the same, or if the Building shall be so
damaged that Landlord shall decide to demolish it or not to rebuild it (whether
or not the Demised Premises have been damaged), then in any of such events
Landlord may, within one hundred twenty (120) days after the occurrence of such
casualty, give Tenant notice of such decision, and thereupon the Term of this
Lease shall expire upon the date set forth in such notice as fully and
completely as if such date were the Expiration Date of this Lease. Tenant shall
then forthwith quit, surrender and vacate the Demised Premises. Such
termination and surrender shall be without prejudice to Landlord’s rights and
remedies against Tenant under the Lease provisions in effect prior to such
termination, and the Rent reserved hereunder shall be apportioned as of such
date if not earlier abated pursuant to Section 17.02.

 

17.04 Unless Landlord shall
serve a termination notice as provided for in Section 17.03 hereof,
Landlord shall make the repairs and restorations as above-described, with all
reasonable expedition subject to delays due to adjustment of insurance claims
and Events of Force Majeure. No damages, compensation or claims shall be
payable by Landlord for delay, inconvenience, loss of business or annoyance
arising from any repair or restoration of any portion of the Demised Premises
or of the Building.

 

17.05 For purposes of this
Article 17, casualty damage which Landlord is responsible to repair shall
not be deemed to include damage caused by vandalism, unknown cause or other act
not normally covered under fire and extended coverage insurance policies
applicable to office buildings in the area in which the Building is located.

 

17.06 The provisions of this
Article shall be considered an express agreement governing any case of
damage or destruction of the Demised Premises by fire or other casualty, and
any laws now or hereinafter in force providing for such a contingency in the
absence of an express agreement shall have no application in such case.

 

17.07 Notwithstanding any of
the foregoing provisions of this Article, if Landlord or the lessor of any
superior lease or the holder of any superior mortgage shall be unable to
collect all of the insurance proceeds applicable to damage or destruction of
the Demised Premises or the Building by reason of some action or inaction on
the part of Tenant or any of its employees, agents or contractors, then,
without prejudice to any other remedies which may be available against Tenant,
the abatement of Tenant’s rent provided for in this Article shall not be
effective to the extent of the uncollected insurance proceeds.

 

20

 

ARTICLE 18

 

Eminent
Domain; Condemnation

 

18.01 In the event that the
Real Property, Building, or any part of the Demised Premises, shall be taken in
condemnation proceedings or by the exercise of any right of eminent domain or
by agreement between any superior lessors and lessees and/or Landlord on the
one hand and any governmental authority authorized to exercise such right on
the other hand, Landlord shall be entitled to collect from any condemnor the
entire award or awards that may be made in any such proceeding without
deduction therefrom for any estate hereby vested in or owned by Tenant, to be
paid out as in this Article provided. Tenant hereby expressly assigns to
Landlord all of its right, title and interest in or to every such award and
also agrees to execute any and all further documents that may be required in
order to facilitate the collection thereof by Landlord.

 

18.02 At any time during the
Term if title to the whole or a substantial portion of the Real Property, the
Building or Demised Premises shall be taken in condemnation proceedings or by
the exercise of any right of eminent domain or by agreement between any
superior lessors and lessees and/or Landlord on the one hand and any
governmental authority authorized to exercise such right on the other hand, at
Landlord’s option, this Lease shall terminate and expire on the date of such
taking and the Base Rent and Additional Rent provided to be paid by Tenant
shall be apportioned and paid to the date of such taking.

 

18.03 Either party may elect
to terminate this Lease if the Demised Premises shall be reduced by more than
20% by notice of such election to the other party given not later than thirty
{30} days after (i) notice of such taking is given by the condemning
authority, or (ii) the date of such taking, whichever occurs later. Upon
the giving of such notice this Lease shall terminate on the date of service of
such notice and the Base Rent and Additional Rent due and to become due, shall
be prorated and adjusted as of the date of the taking. If both parties fail to
give such notice upon such partial taking, and this Lease continues in force as
to any part of the Demised Premises not taken, the rents apportioned to the
part taken shall be prorated and adjusted as of the date of taking and from such
date the Base Rent and Additional Rent shall be reduced to the amount
apportioned to the remainder of the Demised Premises.

 

18.04 Notwithstanding the
foregoing provisions of this Article and subject to the interests of any
mortgagee or lessor or grantor under any superior mortgage or superior lease,
Tenant shall be entitled to appear, claim, prove and receive in the proceedings
relating to any taking mentioned in the preceding Sections of this Article,
such portion of each award made therein as represents any moving or relocation
expenses to which Tenant may be entitled, and any special awards or allowances
provided by law to Tenants whose space has been taken by eminent domain, so
long as the foregoing does not reduce Landlord’s award and does not include the
value of the leasehold estate which shall belong to Landlord.

 

18.05 In the event of any
such taking of all or any part of the Demised Premises which does not result in
a termination of this Lease, subject to compliance with the provisions of any superior
mortgage and superior lease, Tenant (or Landlord as and to the extent provided
in Article 17 hereof as if damage and destruction covered thereby were
involved) shall proceed with reasonable diligence to repair, alter and restore
the remaining part of the Demised Premises to substantially the same condition
as it was in immediately prior to the date of such taking to the extent that
the same may be feasible, so as to. constitute a Tenantable Demised Premises.

 

21

 

ARTICLE 19

 

Surrender

 

19.01 On the last day of the
Term, or the Option Term if in effect, or upon any earlier termination of this
Lease, or upon any re-entry by Landlord upon the Demised Premises, Tenant shall
quit and surrender the Demised Premises to Landlord broom clean, in good order,
condition and repair except for ordinary wear and tear and damage by fire or
other insured casualty, restored as provided in Section 8.01, if
applicable.

 

19.02 Prior to such
surrender, Tenant shall (a) remove any Tenant’s property not part of the
personal property as otherwise provided herein, including, without being
limited to, all of Tenant’s machinery, equipment, medical equipment and
machines bolted to the floor and such fixtures as Landlord shall designate,
whether or not previously deemed to be the property of Landlord, (b) at
Landlord’s request, repair any damage and make any replacements to the Building
or the Demised Premises resulting from or necessitated by such removal, and
restore those parts of the Demised Premises from which the removal referred to
in subparagraph (a) above occurred, to a condition which will be suitable
for non-specialized medical office use, and (c) Tenant shall restore the
Demised Premises including, without limitation, any floor space area which may
have been removed in order to accommodate Tenant’s needs, the Demised Premises
to be restored to that state or condition as shall be useable for
non-specialized, medical office use. If Tenant shall fail to perform as provided
in this Section 19.02 hereof, Landlord shall have the right (but not the
obligation) to do so at Tenant’s cost and expense, without further notice or
demand upon Tenant, and Tenant shall indemnify Landlord against all loss or
liability resulting therefrom, including without limitation, any delay in
granting occupancy of the Demised Premises to a future occupant, and, at
Landlord’s option, Tenant shall be deemed a Tenant “at will” until compliance
with the removal, repair and restoration provisions of this Section 19.02
hereof has fully been satisfied.

 

19.03 Tenant hereby
indemnifies and agrees to hold Landlord harmless from and against any loss,
cost, liability, claim, damage, fine, penalty and expense, including reasonable
attorneys’ fees and disbursements, resulting from delay by Tenant in
surrendering the Demised Premises upon the termination of this Lease as
provided in this Article 19, including without limitation, any claims made
by any succeeding Tenant or prospective Tenant-based upon such delay.

 

19.04 In the event Tenant
remains in possession of the Demised Premises for a period of more than sixty
(60) days after the termination of this Lease without the execution by Landlord
and Tenant of a new Lease, Tenant, at the option of Landlord, shall be deemed
to be occupying the Demised Premises as a Tenant “at will”, at a monthly rental
equal to two times the Base Rent and Additional Rent payable during the last
month of the Term or any Option Term, subject to all of the other terms of this
Lease insofar as the same are applicable to an at will tenancy, and without in
any way whatsoever waiving the provisions of Section 19.03 hereof. In the
event of any holdover of less than sixty (60) days, Tenant shall pay Landlord
Rent and Additional Rent at the rate in effect during the last month of the
Term or any Option Term.

 

ARTICLE 20

 

Conditions
of Limitation

 

20.01 This Lease and the
Term and estate hereby granted are subject inter alia to the limitation that
whenever Tenant shall make an assignment for the benefit of creditors, or shall
file a voluntary petition under any bankruptcy or insolvency law, or an
involuntary petition alleging an act of bankruptcy or insolvency is filed
against Tenant, or whenever a petition shall be filed by or against Tenant
seeking any reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under any present or any future
federal

 

22

 

bankruptcy act or other
present or future applicable federal, state or other statute or lav;, or shall
seek or consent to or acquiesce in the appointment of any trustee, receiver or
liquidator of Tenant or of all or any substantial part of its properties, or
whenever a permanent or temporary receiver of Tenant or of, or for, the
property of Tenant shall be appointed, or if Tenant shall plead bankruptcy or
insolvency as a defense in any action or proceeding, then, Landlord, (a) at
any time after receipt of notice of the occurrence of any such event, or (b) if
such event occurs without the acquiescence of Tenant, at any time after the
event continues for 45 days, may give Tenant a notice of intention to end the
Term at the expiration of five (5) days from the service of such notice of
intention, and upon the expiration of said five (5) day period this Lease
and the Term and estate hereby granted, whether or not the Term shall
theretofore have commenced, shall terminate with the same effect as if that day
were the Expiration Date, but Tenant shall remain liable for damages as
provided as in Article 22.

 

20.02 This Lease and the
Term and estate hereby granted are subject to the further limitation that, (a) whenever
Tenant shall default in the payment of any installment of Base Rent, or in the
payment of any Additional Rent, on any day upon which the same shall be due and
payable, or (b) whenever Tenant shall do or permit anything to be done,
whether by action or inaction, contrary to any of Tenant’s obligations
hereunder, other than the payment of rent, and if such situation shall continue
and shall not be remedied by Tenant within fifteen (15) days after Landlord
shall have given to Tenant a notice specifying the same, or, in the case of a
happening or default which cannot with due diligence be cured within a period
of fifteen (15) days and the continuance of which for the period required for
cure will not subject Landlord to the risk of criminal liability or termination
of any superior lease or foreclosure of any superior mortgage, if Tenant shall
not duly institute within such fifteen (15) day period and promptly and
diligently prosecute to completion all steps necessary to remedy the same, or,
(c) whenever any event shall occur or any contingency shall arise whereby
this Lease or any interest therein or the estate hereby granted or any portion
thereof or the unexpired balance of the Term hereof would, by operation of law
or otherwise, devolve upon or pass to any person, firm or corporation other
than Tenant, except as expressly permitted by Article 13, or (d) whenever
Tenant shall abandon the Demised Premises, or a substantial portion of the
Demised Premises shall remain vacant for a period of ten (10) consecutive
days unless such vacancy arises as a result of a casualty; then in any such
event covered by subsections a, b, c or d of this Section 20.02 at any
time thereafter, Landlord may give to Tenant a notice of intention to end the
Term of this Lease at the expiration of three (3) days from the date of
the service of such notice of intention, and upon the expiration of said three
(3) days this Lease and the Term and estate hereby granted, whether or not
the Term shall theretofore have commenced, shall terminate with the same effect
as if that day were the Expiration Date, but Tenant shall remain liable for
damages as provided in Article 22.

 

23

 

ARTICLE 21

 

Re-Entry
by Landlord — Default Provisions

 

21.01 If this Lease shall
terminate for any reason whatsoever, Landlord or Landlord’s agents and
employees may, without further notice, immediately or at any time thereafter,
enter upon and re-enter the Demised Premises, or any part thereof, and possess
or repossess itself thereof either by summary dispossess proceedings, ejectment
or by any suitable action or proceeding at law, or by agreement, or otherwise,
and may dispossess and remove Tenant and all other persons and property from
the Demised Premises without being liable to indictment, prosecution or damages
therefor, and may repossess the same, and may remove any persons therefrom, to
the end that Landlord may have, hold and enjoy the Demised Premises and the
right to receive all rental income again as and of its first estate and
interest therein. In the event of any termination of this Lease under the
provisions of Article 20 or re-entry under this Article by reason of
default hereunder on the part of Tenant, Tenant shall thereupon pay to Landlord
the Base Rent and Additional Rent due up to the time of such termination of
this Lease or of such recovery of possession of the Demised Premises by
Landlord, as the case may be, and shall also pay to Landlord damages as
provided in Article 22.

 

21.02 In the event of any
breach or threatened breach by Tenant of any of the agreements, terms,
covenants or conditions contained in this Lease, Landlord shall be entitled to
enjoin such breach or threatened breach and shall have the right to invoke any
right and remedy allowed at law or in equity or by statute or otherwise as
though re-entry, summary proceedings, and other remedies were not provided for
in this Lease.

 

21.03 Each right and remedy
of Landlord provided for in this Lease shall be cumulative and shall be in
addition to every other right or remedy provided for in this Lease or now or
hereafter existing at law or in equity or by statute or otherwise, and the
exercise or beginning of the exercise by Landlord of any one or more of the
rights or remedies provided for in this Lease or now or hereafter existing at
law or in equity or by statute or otherwise shall not preclude the simultaneous
or later exercise by Landlord of any or all other rights or remedies provided
for in this Lease or now or hereafter existing at law or in equity or by
statute or otherwise.

 

ARTICLE 22

 

Damages

 

22.01 If this Lease is
terminated under the provisions of Article 20, or if Landlord shall
re-enter the Demised Premises under the provisions of Article 21 or in the
event of the termination of this Lease, or of re-entry by reason of default
hereunder on the part of Tenant, Tenant shall pay to Landlord as damages, at
the election of Landlord, either,

 

(a) on demand, a sum
which at the time of such termination of this Lease or at the time of any such
re-entry by Landlord, as the case may be, represents the excess of (1) the
aggregate of the Base Rent and the Additional Rent payable hereunder which
would have been payable by Tenant (conclusively presuming the Additional Rent
to be the same as was payable for the year immediately preceding such
termination) for the period commencing with such earlier termination of this Lease
or the date of any such re-entry, as the case may be, and ending with the
expiration of the Term, had this Lease not so terminated or had Landlord not so
re-entered the Demised Premises, over (2) the aggregate rental value
(calculated as of the date of such termination or re-entry) of the Demised
Premises for the same period, or,

 

(b) sums equal to the
Base Rent and the Additional Rent (as above presumed) payable hereunder which
would have been payable by Tenant had this Lease not so terminated,

 

24

 

or had Landlord not so
re-entered the Demised Premises, payable quarterly but otherwise upon the terms
therefor specified herein following such termination or such re-entry and until
the expiration of the Term, provided, however, that if Landlord shall relet the
Demised Premises or any portion or portions thereof during said period,
Landlord shall credit Tenant with the net rents received by Landlord from such
reletting, such net rents to be determined by first deducting from the gross
rents as and when received by Landlord from such reletting the expenses
incurred or paid by Landlord in terminating this Lease or in re-entering the
Demised Premises and in securing possession thereof, as well as the expenses of
reletting, including altering and preparing the Demised Premises or any portion
or portions thereof for new Tenants, brokers commissions, advertising expenses,
attorneys, fees’ and all other expenses properly chargeable against the Demised
Premises and the rental therefrom; it being understood that any such reletting
may be for a period shorter or longer than the remaining Term of this Lease,
but in no event shall Tenant be entitled to receive any excess of such net
rents over the sums payable by Tenant to Landlord hereunder, nor shall Tenant
be entitled in any suit for the collection of damages pursuant to this
Subsection to a credit in respect of any net rents from a reletting, except to
the extent that such net rents are actually received by Landlord. If the
Demised Premises or any part thereof should be relet in combination with other
space, then proper apportionment shall be made of the rent received from such
reletting and of the expenses of reletting.

 

If the Demised Premises or
any part thereof be relet by Landlord for the unexpired portion of the Term, or
any part thereof, before presentation of proof of such damages to any court,
commission, or tribunal, the amount of rent reserved upon such reletting shall,
prima facie, be the fair and reasonable rental value for the Demised Premises,
or part thereof, so relet during the term of the reletting. Landlord however
shall in no event and in no way be responsible or liable for any failure to
relet the Demised Premises or any part thereof or for failure to collect any
rent due upon any such reletting.

 

22.02 Suit or suits for the
recovery of such damages, or any installments thereof, may be brought by
Landlord from time to time at its election, and nothing contained herein shall
be deemed to require Landlord to postpone suit until the date when the Term
would have expired if it had not been so terminated under the provisions of
Article 20, or under any provision of law, or had, Landlord not re-entered
the Demised Premises. Nothing herein contained shall be construed to limit or
preclude recovery by Landlord against Tenant of any sums or damages to which,
in addition to the damages particularly provided above, Landlord may lawfully
be entitled by reason of any default hereunder or otherwise on the part of Tenant.
Nothing herein contained shall be construed to limit or prejudice the right of
the Landlord to prove for and obtain as liquidated damages by reason of the
termination of this Lease or re-entry on the Demised Premises for the default
of Tenant under this Lease, an amount equal to the maximum allowed by any
statute or rule of law in effect at the time when, and governing the
proceedings in which, such damages are to be proved whether or not such amount
be greater, equal to, or less than any of the sums referred to in Section 22.01.

 

22.03 Anything in this Lease
to the contrary notwithstanding, if Tenant shall at any time be in default
hereunder, and if Landlord shall institute an action or summary proceeding
against Tenant based upon such default, or if such default results from
non-payment of Base Rent or Additional Rent whether or not such an action or
proceeding is instituted, or if Tenant requests Landlord to review or execute
documents (including, without limitation, any sublease or occupancy documents) in
connection with this Lease, or otherwise if it is reasonably prudent for
Landlord to contact counsel, then Tenant shall reimburse Landlord, as
Additional Rent, for the expense of attorneys’ fees and disbursements thereby
incurred by Landlord.

 

ARTICLE 23

 

Waivers

 

23.01 Tenant, for itself,
and on behalf of any and all persons claiming through or under

 

25

 

Tenant, including creditors
of all kinds, does hereby waive and surrender all right and privilege so far as
is permitted by law, which they or any of them might have under or by reason of
any present or future law, of the service of any notice of intention to
re-enter and also waives any and all right of redemption or re-entry or
repossession in case Tenant shall be dispossessed or ejected by process of law
or in case of re-entry or repossession by Landlord or in case of any expiration
or termination of this Lease as herein provided.

 

23.02 Tenant waives Tenant’s
rights, if any, to designate the items against which any payments made by
Tenant are to be credited, and Tenant agrees that Landlord may apply any
payments made by Tenant to any items it sees fit, irrespective of and
notwithstanding any designation or request by Tenant as to the items against
which any such payments shall be credited.

 

23.03 Except to the extent
that a mandatory counterclaim is involved, Tenant waives Tenant’s rights, if
any, to assert a counterclaim in any summary proceeding brought by Landlord
against Tenant for non-payment of rent or Additional Rent, and Tenant agrees to
assert any such claim against Landlord only by way of a separate action or
proceeding.

 

23.04 To the extent
permitted by applicable law, Landlord and Tenant hereby waive trial by jury in
any action, proceeding or counterclaim brought by either against the other on
any matter whatsoever arising out of or in any way connected with this Lease,
the relationship of Landlord and Tenant, or Tenant’s use or occupancy of the
Demised Premises, or any emergency or other statutory remedy with respect
thereto.

 

ARTICLE 24

 

No
Other Waivers or Modifications

 

24.01 The failure of either
party to insist in any one or more instances upon the strict performance of any
one or more of the agreements, terms, covenants, conditions or obligations of
this Lease, or to exercise any right, remedy or election herein contained,
shall not be construed as a waiver or relinquishment for the future of the
performance of such one or more obligations of this Lease or of the right to
exercise such election, but the same shall continue and remain in full force
and effect with respect to any subsequent breach, act or omission. No executory
agreement hereafter made between Landlord and Tenant shall be effective to
change, modify, waive, release, discharge, terminate or effect an abandonment
of this Lease, in whole or in part, unless such executory agreement is in
writing, refers expressly to this Lease and is signed by the party against whom
enforcement of the change, modification, waiver, release, discharge or
termination or effectuation of the abandonment is sought.

 

24.02 The following specific
provisions of this Section shall not be deemed to limit the generality of
the foregoing provisions of this Article:

 

(a) No agreement to
accept a surrender of all or any part of the Demised Premises shall be valid
unless in writing and signed by Landlord. The delivery of keys to an employee
of Landlord or of its agent shall not operate as a termination of this Lease or
a surrender of the Demised Premises. If Tenant shall at any time request
Landlord to sublet the Demised Premises for Tenant’s account, Landlord or its
agent is authorized to receive said keys for such purposes without releasing
Tenant from any of its obligations under this Lease, and Tenant hereby releases
Landlord of any liability for loss or damage to any of Tenant’s Property in
connection with such subletting.

 

(b) The receipt or
acceptance by Landlord of rents with knowledge of breach by Tenant of any term,
agreement, covenant, condition or obligation of this Lease shall not be deemed
a waiver of such breach.

 

(c) No payment by
Tenant or receipt by Landlord of a lesser amount than the correct

 

26

 

Base Rent or Additional Rent
due hereunder shall be deemed to be other than a payment on account, nor shall
any endorsement or statement on any check or any letter accompanying any check
or payment be deemed to effect or evidence an accord and satisfaction, and
Landlord may accept such check or payment without prejudice to Landlord’s right
to recover the balance or pursue any other remedy in this Lease or at law
provided.

 

(d) If, in connection
with obtaining, continuing or renewing financing for which the Building, land
or a leasehold or any interest therein represents collateral in whole or in
part, a banking, insurance or other lender shall request modifications of this
Lease as a condition of such financing, Tenant will not unreasonably withhold,
delay or defer its consent thereto, provided that such modifications do not
increase the obligations of Tenant hereunder or adversely affect to a material
degree the Tenant’s leasehold interest hereby created; among other items, any
change in the Term or increase in the Base Rent shall be deemed material.

 

ARTICLE 25

 

Curing
Tenant’s Defaults

 

25.01 If Tenant shall
default in the performance of any covenant, agreement, term, provision or
condition herein contained, Landlord without thereby waiving such default, may
perform the same for the account and at the expense of Tenant without notice in
case of emergency and in any other case if such default continues after three
days from the due date of the giving by Landlord to Tenant of written notice of
intention so to do. Bills for any reasonable and necessary expense incurred by
Landlord in connection with any such performance by Landlord for the account of
Tenant, and reasonable and necessary bills for all costs, expenses and
disbursements, including (without being limited to) reasonable counsel fees,
incurred in collecting or endeavoring to collect the Base Rent or Additional
Rent or other charge or any part thereof or enforcing or endeavoring to enforce
any rights against Tenant under or in connection with this Lease, or pursuant
to law, shall be payable by Tenant within three (3) days of notice to
Tenant and if not paid when due, the amounts thereof shall immediately become
due and payable as Additional Rent under this Lease together with interest
thereon at the lesser of the maximum rate permitted by law or the rate of three
percent (3 %) per month or portion thereof from the date the said bills should
have been paid in accordance with their terms.

 

ARTICLE 26

 

Notices
- Service of Process

 

26.01 Any notice, statement,
demand, request or other communication required or permitted pursuant to this
Lease or otherwise shall be in writing and shall be deemed to have been
properly given if addressed to the other party at the address hereinabove set
forth, and (a) if sent to such address by (i) registered or certified
United States mail, return receipt requested, postage prepaid, or (ii) United
States Express Mail or private, reputable overnight courier, charges prepaid,
or (b) if personally delivered to such address to an officer, partner or
other authorized representative of the other party, receipt requested, then in
any of such events referred to in clauses (a) and (b) above, notice
shall be deemed to have been given, rendered or made upon such delivery, or if
rejected, when delivery was attempted. Either party may, by notice as
aforesaid, designate a different address or addresses for notices, statements,
demands or other communications intended for it. Notice given by counsel for
either party shall be deemed valid if addressed and sent as aforesaid.

 

26.02 Tenant shall give notice
to Landlord (and to the holder of any superior lease and superior mortgage of
which Tenant has notice) promptly after Tenant learns thereof, (i) of any
accident in or about the Demised Premises or the Building, (ii) of all
fires in the Demised

 

27

 

Premises, (iii) of all
damages to or defects in the Demised Premises, including the fixtures,
equipment and appurtenances thereof, for the repair of which Landlord might be
responsible or which constitutes Landlord’s property, and (iv) of all
damage to or defects in any parts or appurtenances of the Building’s sanitary,
electrical, heating, ventilating, air conditioning, elevator and other systems
located in or passing through the Demised Premises.

 

ARTICLE 27

 

Estoppel
Certificate, Memorandum

 

27.01 Tenant agrees, at any
time and from time to time, as requested by Landlord, or the holder of any
superior lease or superior mortgage, upon not less than ten (10) days’
prior notice, to execute and deliver without cost or expense to the Landlord a
statement prepared by Landlord or such holder certifying that this Lease is
unmodified and in full force and effect (or if there have been modifications,
that the same is in full force and effect as modified and stating the modifications),
certifying the dates to which the Base Rent and Additional Rent have been paid,
and stating whether or not, to the best knowledge of Tenant, Landlord is in
default in performance of any of its obligations under this Lease, and, if so,
specifying each such default of which the Tenant may have knowledge, specifying
that Tenant shall not look to the holder of a superior lease or superior
mortgage for the return of any Security Deposit to the extent that the Security
Deposit has not been transferred to such holder, and specifying as to such
other matters as may be reasonably requested and as are part of the standard
form or request of such holder, it being intended that any such statement
delivered pursuant thereto may be relied upon by any other person with whom the
Landlord, or the holder of any superior lease or superior mortgage, may be
dealing.

 

27.02 In addition, Tenant
shall furnish to Landlord annually within one hundred thirty five (135) days
after the end of each of Tenant’s fiscal years, financial statements certified
by a corporate officer as true, complete and correct to the best of his or her
knowledge and audited and prepared by an independent Certified Public
Accountant, including, but not limited to, a profit and loss statement on a
consolidated and consolidating basis including Tenant and affiliates.

 

27.03 Tenant agrees not to
record this Lease. At the request of Landlord, Landlord and Tenant shall
promptly execute, acknowledge and deliver a memorandum with respect to this
Lease sufficient for recording, which Landlord will record. Such memorandum
shall not in any circumstance be deemed to change or otherwise affect any of
the obligations or provisions of this Lease.

 

ARTICLE 28

 

No
Other Representations, Construction, Governing Law

 

28.01 This Lease supersedes
and revokes all previous negotiations, arrangements, letters of intent, offers
to lease, lease proposals, brochures, “Representations” (meaning covenants,
promises, assurances, agreements, representations, conditions, warranties,
statements and understandings), and information conveyed, whether oral or in
writing, between the parties hereto or their respective representatives or any
other person purporting to represent Landlord or Tenant. Tenant expressly
acknowledges and agrees that Landlord has not made and is not making, and
Tenant, in executing and delivering this Lease, is not relying upon, and has
not been induced to enter into this Lease by, any Representations, except to
the extent that the same are expressly set forth in this Lease or in any other
written agreement which may be made and executed between the parties
concurrently with the execution and delivery of this Lease and shall expressly
refer to this Lease, and no such Representations not so expressly herein set forth
shall be used in the interpretation or construction of this Lease, and Landlord

 

28

 

shall have no liability for
any consequences arising as a result of any such Representations not so
expressly herein set forth.

 

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

 

28.03 This Lease shall be governed
in all respects by the laws of the State of New York.

 

ARTICLE 29

 

Parties
Bound

 

29.01 The obligations of
this Lease shall bind and benefit the successors and assigns of the parties
with the same effect as if mentioned in each instance where a party is named or
referred to, except that no violation of the provisions of Article 13
shall operate to vest any rights in any successor or assignee of Tenant, and
that the provisions of this Article shall not be construed as modifying
the conditions of limitation contained in Article 20, However, the
obligations of Landlord under this Lease shall not be binding upon Landlord
herein named with respect to any period subseguent to the transfer of its
interest in the Building as owner or lessee thereof and in the event of such
transfer said obligations shall thereafter be binding upon each transferee of
the interest of Landlord herein named as such owner or lessee of the Building,
but only with respect to obligations arising during the period commencing with
such transfer and ending with a subsequent transfer within the meaning of this
Article, and such transferee, by accepting such interest, shall be deemed to
have assumed such obligations except only as may be expressly otherwise
provided elsewhere in this Lease. A Lease of Landlord’s entire interest in the
Building as owner or lessee thereof shall be deemed a transfer within the
meaning of this Article 29.

 

29.02 Tenant shall look
solely to the estate and interest of Landlord, its successors and assigns, in
the land and Building (or the proceeds thereof) for the collection of a
judgment (or other judicial process) requiring the payment of damages or money
by Landlord in the event of any default by Landlord hereunder, and no other
property or assets of Landlord (or of any partner, member, officer, director,
shareholder, principal, employee or agent of Landlord) shall be subject to
levy, execution or other enforcement procedure for the satisfaction of Tenant’s
remedies under or with respect to either this Lease, the relationship of
Landlord and Tenant hereunder or Tenant’s use and occupancy of the Demised
Premises.

 

ARTICLE 30

 

Brokerage

 

30.01 Tenant and Landlord
each represent to the other that, in the negotiation of this Lease, it dealt
with no broker or brokers. Each of the parties hereto hereby indemnifies the
other and agrees to hold the other harmless from any and all losses, costs,
damages, expenses, claims and liabilities, including, without limitation, court
costs and attorneys’ fees and disbursements, arising out of any inaccuracy or
alleged inaccuracy of the above representation.

 

29

 

ARTICLE 31

 

Miscellaneous
Provisions

 

31.01 All work that Tenant
does or shall do in the Demised Premises, shall be done by contractors licensed
to do business in the State of New York, and shall at all times comply with all
laws and/or requirements of public authorities. Tenant, as Additional Rent,
shall indemnify and hold harmless Landlord, against any loss or damage Landlord
may sustain by reason of, and against, any orders, decrees, judgments,
attorneys’ fees and expenses resulting from, failure of Tenant to comply with
the provisions hereof.

 

31.02 The Article headings
in this Lease and the Table of Contents prefixed to this Lease are inserted
only as a matter of convenience or reference, and are not to be given any
effect whatsoever in construing this Lease.

 

31.03 Any provision of this
Lease which requires a party not to unreasonably withhold its consent, (a) shall
be read as if the word “withhold” read “withhold, delay or defer”, and (b) shall
never be the basis for any award of damages (unless exercised in intentional
and deliberate bad faith) or give rise to a right of setoff to the other party,
but shall be the basis for a declaratory judgment or specific injunction with
respect to the matter in question.

 

31.04 This Lease is offered
to Tenant for signature with the express understanding that it shall not be
binding upon Landlord unless and until Landlord shall have executed and
delivered a fully executed copy to Tenant, and until the holder of any and all
superior mortgages shall have approved the same.

 

31.05 Notwithstanding any
contrary provision of this Lease, Tenant shall not under any circumstances
commence any action or proceeding or take any action based upon an alleged
breach or default of this Lease by or through Landlord unless and until (a) Tenant
first shall have notified Landlord thereof, specifying in detail the facts of
the alleged breach or default, and (b) Landlord shall not have cured, or
used due diligence to cure, said alleged breach or default within 30 days after
receipt of said notice, or if such an alleged breach or default cannot with due
diligence be cured within a period of thirty (30) days, if Landlord shall not
duly commence such cure within such thirty (30) day period and promptly and
diligently prosecute to completion all steps necessary to cure the same.

 

31.06 Notwithstanding any
cancellation or termination of this Lease, by expiration or otherwise, nothing
herein shall be construed to release Tenant from any liability or
responsibility (whether then or thereafter occurring) with respect to any acts,
omissions or obligations of Tenant occurring prior to such cancellation or
termination, all of which shall survive such cancellation or termination.

 

31.07 Anything contained in
this lease to the contrary notwithstanding, any rights not specifically
conferred upon Tenant shall be reserved to Landlord, and Landlord’s exercise of
such rights shall not be deemed to be an eviction or disturbance of Tenants use
or occupation of the Real Property and no such exercise shall create or give
rise to any abatement of rent, claim for set-off or any other claim. Without
limiting the generality of the foregoing, the following rights are specifically
reserved to Landlord: to retain and use when appropriate circumstances shall
arise keys to all doors within and into the Demised Premises; to place and
maintain signs on the exterior or interior of the Building; to name one or more
parts of the Building and to change such names as well as to consent to a
change in any street address; when required, to make repairs, decorations,
alterations, additions, or improvements, whether structural or otherwise, in
and about the Building and to enter the Demised Premises temporarily, restrict
access thereto and temporarily suspend services or use of common areas within
the Building or on the Real Property (and Tenant shall pay Landlord for all
expenses, including overtime, which may be incurred if done outside of ordinary
business hours at Tenant’s request); to show or inspect the Demised Premises at
all reasonable times and if the Demised Premises shall be vacant, or shall have
been abandoned, to prepare the Demised

 

30

 

Premises for reletting; to
install, use and maintain within and through the Demised Premises, all pipes,
conduits, wires and ducts serving the Building, or any Tenant therein, provided
that such maintenance, use and or installation does not unreasonably interfere
with the Tenant’s use of the demised premises during normal business hours; and
if Landlord shall so determine, to subdivide the Real Property as it sees fit
provided Tenant shall have adequate ingress and egress to and from the Demised
Premises.

 

31.08 This Lease may be
executed in one or more counterparts each of which shall be considered an
original of this Lease.

 

31.09 So long as Tenant
shall occupy the Demised Premises as an office for a radiological out-patient
private practice, radiation out-patient practice and services related thereto,
including medical imaging, nuclear medicine and radiation treatment, Landlord
shall not lease any other part of the Building for the same use. Nothing
contained herein shall prohibit leasing to a physician or dentist who utilizes
an xray or other equipment for incidental diagnostic purposes.

 

ARTICLE 32

 

Security
Deposit

 

32.01 Tenant has deposited
with Landlord the Security Deposit as security for the punctual performance by
Tenant of each and every obligation of Tenant under this Lease. In the event of
any default by Tenant, Landlord may apply or retain all or any part of the
Security Deposit to cure the default or to reimburse Landlord for any sum which
Landlord may spend by reason of the default. In the case of every such
application or retention Tenant shall, on demand, pay to Landlord the sum so
applied or retained which shall be added to the Security Deposit so that the
same shall be restored to its original amount. If at the end of the Term Tenant
shall not be in default under this Lease, the Security Deposit, or any balance
thereof, shall be returned to Tenant with twenty (20) days after the Expiration
Date. Tenant further covenants that it will not assign or encumber or attempt
to assign or encumber the monies deposited herein as security and that neither
the Landlord nor its successors or assigns shall be bound by any such
assignment, encumbrance, attempted assignment or attempted encumbrance.

 

ARTICLE 33

 

Tenant’s
Work

 

33.01 The parties hereto
acknowledge that it is the intention of Tenant to make alterations to the
Demised Premises in order to convert such premises to a state-of-the-art
radiological facility and as a full-service radiation facility, In
connection with such intention, Tenant shall within 90 days of the date hereof
prepare plans and specifications to convert the space from their present
condition as Tenant may determine subject to the approval of Landlord which
shall not be unreasonably withheld. Such plans and specifications shall include,
without limitation, sprinklers and all utility systems such as gas, water,
telephone, electric and HVAC systems. The choice of architects, engineers,
contractors, subcontractors and any other agents or independent contractors
shall be made by Tenant subject to Landlord’s prior written approval. Such
approval shall not be unreasonably withheld or delayed. Tenant shall obtain all
such permits and approvals as shall be necessary in order to complete Tenant’s
Work.

 

33.02 Subject to the
provisions of Section 13.04, below, upon receiving Landlord’s approval and
upon receiving all such other approvals and permits necessary to complete the
Tenant’s Work for a radiological facility and as a full-service radiation
facility, Tenant shall,

 

31

 

subject to the revisions of
Section promptly commence reconstruction of the Demised Premises. Tenant’s
Work shall be performed in compliance with all applicable federal, state, and
municipal laws and the rules and regulations of the departments and
bureaus having jurisdiction thereof and all such work shall be the subject of
completion bonds in form and substance, and with such carriers, reasonably
acceptable to Landlord. At the conclusion of Tenant’s Work, Tenant shall obtain
at its sole cost and expense a certificate of occupancy and all other permits
and approvals necessary or appropriate authorizing the use of the Demised
Premises as a full-service radiological facility.

 

33.03 Tenant acknowledges
that Landlord or other Tenants may be performing other construction work within
the Building during the time of Tenant’s Work. The parties shall coordinate
their respective work effort in order to complete all such work as promptly as
possible.

 

33.04 Tenant shall cause
Tenants plans to be prepared and shall cause Tenant’s Work to be performed all
at its own cost and expense and shall complete such work within twelve (12)
months of the date hereof. Notwithstanding the foregoing, Tenant may elect to
defer the installation of its linear accelerator or vault provided that if it
shall make such election, then it shall: (a) promptly obtain all permits
and approvals, other than building department approvals required for such
installation, (b) finish all of the Demised Premises to the requirements
of all applicable codes and regulations such that the final certificate of
occupancy contemplated to be issued for the Demised Premises upon the
completion of the work shall encompass and be applicable to the entirety of the
Demised Premises, notwithstanding that no linear accelerator or vault of shall
have been installed. Tenants Work shall be accomplished in a fashion and on a
schedule which does not result in any delay in the issuance of certificates of
occupancy for the Building and the Real Property or in reaching the
Commencement Date. Should Tenant desire to install a linear accelerator at a
later date, it shall do so in accordance with all of the terms and conditions
of this Lease, including, without limitation, those provisions pertaining to
non-interference with the usual business operations of any other Tenant in the
Building.

 

33.05 Tenant shall remove or
cause its builder to remove all tools, scaffolding, unused and discarded
building materials, waste, debris and rubbish of any sort in, on or about the
Demised Premises within a reasonable time during and after completion of
Tenant’s Work. During the time of Tenant’s Work, Tenant shall cause its builder
to keep the Demised Premises or any portion of the Real Property used by either
of them, clean, free of hazardous or unsafe conditions, and protected from the
elements.

 

33.06 Tenant’s Work shall be
subject to owners inspection and reasonable approval after completion to
determine whether the same complies with the requirements set forth in this
Lease and the plans and specifications approved by Landlord. Landlord shall
bear no liability or responsibility arising out of its approval of the plans
and specifications for Tenant’s Work or the approval of Tenant’s Work after
completion, and such approvals shall not be deemed a waiver of any provision of
this Lease.

 

33.07 Prior to the
Commencement Date Landlord shall permit Tenant to have access to the Demised
Premises at reasonable times and upon reasonable notice to Landlord to inspect
and make measurements and prepare for or perform Tenant’s Work, provided that
such entry shall not in Landlord’s reasonable judgment interfere with other
work being conducted in the Building. Landlord shall not be required to furnish
electricity, heat or other utility services to Tenant during said visits or
during the course of construction.

 

33.08 If, prior to the
Commencement Date, Tenant shall elect to place any of its fixtures or personal
property in or about the Demised Premises, Landlord shall have no liability for
any loss or damage to such fixtures, personal property or Building supplies
including, without limitation, any and all medical equipment, unless such loss
or damage results from the willful act of Landlord.

 

33.09 Tenant shall install
its medical equipment at such times and in such manner so is not to disturb or
interrupt the activities of other Tenants in the Building nor to disturb or

 

32

 

interrupt other construction
work which may be taking place in the Building during Tenant’s Work.

 

33.10 Subject to the prior
written consent of Landlord, Tenant, at Tenants sole cost and expense, may move
the interior walls of the Demised Premises for the purposes of installation,
repair, maintenance or removal of medical equipment. Such moving of walls shall
not unreasonably affect utility services or plumbing and electrical lines in
and to the Building or the Demised Premises and, if affected, Tenant shall as
soon as practicable restore said utility services or plumbing and electrical
lines to their operating condition immediately prior thereto. Tenant, at
Tenants sole cost and expense, shall restore any interior walls moved pursuant
to this paragraph to their condition prior to such moving and shall return all
such walls to such condition as shall be equal to or better than that which
existed prior to the moving.

 

33.11 In connection with
Tenants use of the Demised Premises, Tenant shall insure that all x-ray,
nuclear medicine, radiation equipment and other machinery and equipment to be
installed in the Demised Premises is installed, used and maintained in
compliance with all federal, state and municipal laws, ordinances and
regulations governing the installation, use and maintenance of such machinery
and equipment, as well as in accordance with manufacturers suggested repair and
maintenance specifications, and shall not at any time use or occupy the Demised
Premises in violation of the certificate of occupancy which will be issued for
the Demised Premises upon the completion of Tenant’s Work or of any certificate
of occupancy which may be issued at any time thereafter. In addition, Tenant
shall comply with all federal, state and municipal laws, ordinances, rules and
regulations regarding handling and disposal of any nuclear or other waste or by
products resulting from the installation, use or maintenance of Tenants nuclear
medicine and other machinery and equipment. The representations, covenants and
indemnities set forth in Exhibit C are incorporated herein as if fully set
forth herein at length.

 

33.12 During the period in
which Tenant’s Work is performed, or in the event that Tenant at any time
performs any construction or alteration of the Demised Premises, Tenant shall
maintain builders risk insurance covering both personal injury and property
damage liability as well as risks of damage and destruction during the course
of any construction or alteration in such adequate amounts as shall be
reasonably agreed upon by the parties. In addition, Tenant shall supply completed
structures coverage reasonably agreed upon by the parties. At all times during
any such period of construction, Tenant shall cause its contractors and
subcontractors to maintain in effect statutory workers compensation and
disability insurance and employers liability insurance in such adequate amounts
as shall be reasonably agreed upon by the parties, and Tenant shall cause its
contractors and subcontractors to provide Landlord with certificates of
insurance showing that such coverages are in full force and effect. Tenant
shall deliver to Landlord, at least 20 days prior to the time any insurance
coverage provided for in this Lease is first required to be carried by Tenant,
and thereafter at least 20 days prior to the expiration of any such policy, by
either a duplicate original or a certificate of insurance and true copy of all
policies procured by Tenant in compliance with its obligations hereunder
together with evidence of payment therefor. All policies of insurance provided
for in this Lease shall name Landlord, Tenant, and any holder of a mortgage or
superior lease affecting the real property as additional named insureds and
shall be adjusted with the insurance companies by Landlord. Except with respect
to coverage for medical equipment, the proceeds of any such insurance shall be
payable to Landlord.

 

33

 

ARTICLE 34

 

Tenant’s
Organizational Status

 

34.01 Tenant represents and
warrants that Tenant is a duly formed and existing professional corporation under
the laws of the state of New York, that Tenant has full right and authority to
enter into this Lease and that each and every person signing on behalf of
Tenant is authorized to do so. Tenant and each of its equity holders have all
necessary licenses, permits, approvals and certifications necessary for the
conduct of Tenant’s business in the Demised Premises. Upon Landlord’s request,
Tenant will provide evidence satisfactory to Landlord confirming these
representations.

 

ARTICLE 35

 

Option
to Extend the Term

 

35.01 Tenant may, by notice
to Landlord given on or before me tenth anniversary of the Commencement Date,
extend the term of this Lease for the Initial Option Term (a period of five (5) years).
If Tenant extends the term for the Initial Option Term, then Tenant may, by
notice to Landlord given on or before the date which is eighteen (18) months
prior to the expiration of the Initial Option Term, further extend this Lease
for me Second Option Term (a period often (10) years). Time is of the
essence. At any time, at the request of Landlord, Tenant shall execute and
deliver to Landlord or its mortgagee or designee a confirmation of the Term and
any Option Term in recordable form. All of the other terms and conditions of
the Lease shall be applicable to the Option Term other than Base Rent, any
further right to renew, and other than as may be reasonably necessary because
a, renewal term rather than an original term is involved. The Base Rent for the
Initial Option Term shall be increased by the percentage increase in the CPI
over the rate in effect on the Commencement Date, not to exceed 30% over the
amount being paid in the preceding Rent Year. If this Lease is extended for the
Second Option Term, then on the 20th and 25th anniversary of the Commencement Date
the Base Rent shall be again increased above the rent in effect in the
preceding Rent Year on each such anniversary by one hundred twenty percent
(120%) percent of the percentage increase in the CPI over the rate in effect on
the Commencement Date, but without limitation or “cap”. In no event shall the
Base Rent be less than that in effect in the preceding Rent Year.

 

34

 

ARTICLE 36

 

Signage

 

36.01 No sign, insignia,
advertisements, object, notice, or other lettering shall be exhibited,
inscribed painted or affixed by Tenant on any part of the outside or inside of
the Demised Premises or the Building without the prior written consent of
Landlord, which consent shall not be unreasonably withheld. In the event of the
violation of the foregoing by Tenant. Landlord may remove the same without any
liability, and may charge the expense incurred in such removal to the Tenant, Interior
signs and lettering on doors and directory tablet shall, if and when approved
by Landlord, be inscribed, painted or affixed for Tenant by Landlord at the
expense of Tenant, and shall be of a size, color and style reasonably
acceptable to Landlord. Tenant shall obtain at its sole cost and expense any
and all licenses or permits required for such signage and shall deliver copies
thereof to Landlord.

 

35

 

IN WITNESS WHEREOF, the
parties hereto have executed this Lease under seal on the day and year first
above written.

 

	
   

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  34 SOUTH BEDFORD ROAD
  ASSOCIATES

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Authorized Signatory

  
	
   

  	
   

  	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  RADIATION THERAPY
  SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ DANIEL E. DOSORETZ

  
	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  	
   

  
	
  The foregoing is hereby
  approved

  Tolchin & Sons Property Group, LLC.

  Dated: October 29, 1999

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Authorized Signatory

  	
   

  	
   

  	
   

  

 

36

 

	
  State of New York

  	
  )

  
	
   

  	
   

  
	
   

  	
  ) ss . :

  
	
   

  	
   

  
	
  County of Westchester

  	
  )

  

 

On the 25th day of October in
the year 1999 before me, the undersigned, a Notary Public in and for said
State, personally appeared, [ILLEGIBLE], personally known to me or proved to me
on the basis of satisfactory evidence to be the individual(s) whose
name(s) is (are) subscribed to the within instrument and acknowledged to
me that he/she/they executed the same in his/her/their capacity(ies), and that
by his/her/their signature(s) on the instrument, the individual(s), or the
person upon behalf of which the individuals(s) acted, executed the
instrument.

 

	
   

  	
   

  	
  /s/
  CARMEN AMUSO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CARMEN
  AMUSO

  
	
   

  	
   

  	
  Notary
  Public, State of New York

  
	
  State of New York

  	
  )

  	
  No. 4771159

  
	
   

  	
  ) ss.:

  	
  Qualified
  in Westchester County

  
	
  County of Westchester

  	
  )

  	
  Commission
  Expires Sept. 30, 2000

  

 

On the 25th day of October in
the year 1999 before me, the undersigned, a Notary Public in and for said
State, personally appeared Daniel Dosoretz, MD, personally known to me or
proved to me on the basis of satisfactory evidence to be the individual(s) whose
name(s) is (are) subscribed to the within instrument and acknowledged to
me that he/she/they executed the same in his/her/their capacity(ies), and that
by his/her/their signature(s) on the instrument, the individual(s), or the
person upon behalf of which the individuals(s) acted, executed the
instrument.

 

	
   

  	
   

  	
  /s/
  CARMEN AMUSO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CARMEN
  AMUSO 

  
	
   

  	
   

  	
  Notary
  Public, State of New York

  
	
   

  	
   

  	
  No. 4771159

  
	
   

  	
   

  	
  Qualified
  in Westchester County

  
	
   

  	
   

  	
  Commission
  Expires Sept. 30, 2000

  

 

37

 

EXHIBIT A

 

Site
Plan

 

TO
BE ANNEXED AND INITIALED BY THE PARTIES UPON COMPLETION OF INITIAL
ARCHITECTURAL FLOOR PLAN LAYOUT.

 

A-1

 

EXHIBIT B

 

REAL
PROPERTY DESCRIPTION

 

ALL that certain plot, piece
or parcel of land situate, lying and being in the Village and Town of Mt,
Kisco, County of Westchester and State of New York, bounded and described as
follows:

 

BEGINNING at a point on the
southerly side of South Bedford Road where the same is intersected by the
easterly line of the premises herein described and the westerly line of lands
now or formerly of the Village and Town of Mt. Kisco;

 

RUNNING THENCE along said
lands now or formerly of the Village and Town of Mt. Kisco the following
courses and distances:

 

1) South 24 degrees 55
minutes 55 seconds West 440.41 feet;

 

2) South 80 degrees 40
minutes 00 seconds West 118.69 feet;

 

3) South 84 degrees 21
minutes 20 seconds West 39.01 feet;

 

4) South 81 degrees 12
minutes 50 seconds West 67.04 feet;

 

5) South 82 degrees 50
minutes 00 seconds West 2.00 feet to lands now or formerly N & R
Shepard and L & H Roemer and Miriam Roemer;

 

RUNNING THENCE along said
lands of Shepard and Roemer and part of the way along a stone wall the
following courses and distances:

 

1) North 10 degrees 59
minutes 50 seconds East 223.01 feet;

 

2) North 12 degrees 53
minutes 20 seconds East 64.16 feet;

 

3) North 19 degrees 18
minutes 00 seconds East 22.73 feet;

 

4) North 32 degrees 03
minutes 20 seconds East 107.19 feet;

 

5) North 30 degrees 20
minutes 20 seconds East 40.75 feet; and

 

6) North 23 degrees 30
minutes 40 seconds East 87.78 feet to the southerly side of South Bedford Road;

 

RUNNING THENCE along the
southerly side of South Bedford Road South 68 degrees 52 minutes 20 seconds
East 18.37 feet; South 71 degrees 35 minutes 57 seconds East 218.72 feet and
South 84 degrees 24 minutes 46 seconds East 8.34 feet to the point or place of
BEGINNING.

 

B-1

 

EXHIBIT C

 

Environmental
Covenants

 

Notwithstanding any contrary
provisions of the annexed Lease whatsoever, including, without limitation,
those pertaining to use and Permitted Use, Tenant shall not use, or permit the
use of the Demised Premises, so as to create or result in, directly or
indirectly, (a) any sudden or gradual spill, leak, discharge, escape,
seepage, infiltration, abandonment, dumping, disposal or storage (other than
household cleaners which may be stored and used, to the extent in accordance
with Legal Requirements, for their intended purposes) of any hazardous or
industrial waste, substance or contamination, effluent, sewage, pollution or
other detrimental or deleterious material or substance (including without
limitation asbestos), or the disposal, storage or abandonment on the Demised
Premises of any material, tank or container holding or contaminated by any of
the foregoing or residues thereof, or the installation of any material or
product containing or composed of any of the foregoing, in, on, from under or
above the Demised Premises (the foregoing occurrences being hereinafter
collectively called “Environmental Hazard”), or (b) any violation, or
state of facts or condition which would result in a violation, of any Federal,
State or local statute, law, code, rule, regulation or order applicable to any
Environmental Hazard (the foregoing being hereinafter collectively called
“Legal Violation”). In the event of the violation of the foregoing by Tenant,
in addition to all other rights and remedies of Landlord under this Lease,
regardless of when the existence of the Environmental Hazard or Legal Violation
is determined, and whether during the Term or after the Expiration Date, (I) Tenant
shall, immediately upon notice from Landlord, at Tenant’s sole cost and
expense, at Landlord’s option, either (x) take all action necessary to
test, identify and monitor the Environmental Hazard and to remove the
Environmental Hazard from the Demised Premises and dispose of the same and
restore the Demised Premises to the condition existing prior to such removal,
and/or to remedy any Legal Violation, all in accordance with applicable
Federal, State and local statutes, laws, codes, rules, regulations or orders or
(y) reimburse Landlord for all costs and expenses incurred by Landlord for
engineering or environmental consultant or laboratory services in testing,
investigating, identifying and monitoring the Environmental Hazard and in
removing and disposing of the Environmental Hazard and in restoring the Demised
Premises, and/or in remedying any Legal Violation, and (II) Tenant shall
and hereby does, indemnify and save harmless Landlord and Others in Interest
and shall defend (at Tenant’s sole cost and expense with legal counsel
acceptable to Landlord) against and from all liabilities, obligations, damages,
penalties, claims, costs, charges and expenses, including architects’ and
attorneys’ fees and disbursements which may be imposed upon or incurred by or
asserted against Landlord and Others in Interest, whether by any governmental
authority, Tenant or other third party, by reason of any violation or alleged
violation of any of the foregoing provisions of this Section. Notwithstanding
the foregoing, Tenant shall not be responsible for preexisting conditions or
acts of other tenants.

 

C-1Exhibit 10.43

 

LEASE

 

THIS LEASE (“Lease”) is made
and entered into as of the
                  
day of June, 2005, by and between, ARIZONA RADIATION ENTERPRISES, LLC, an
Arizona limited liability company, whose business address is 7337 East Thomas
Road, Scottsdale, Maricopa County, Arizona (“Landlord”), and ARIZONA RADIATION
THERAPY MANAGEMENT SERVICES, INC., an Arizona corporation, c/o 2234
Colonial Blvd. Fort Myers, Fl. 33097 (“Tenant”).

 

WITNESSETH:

 

ARTICLE 1

TERMS

 

1.1 Premises.
Landlord hereby demises and leases to Tenant and Tenant hereby hires and rents
from Landlord the premises located at 7337 East Thomas Road, Scottsdale,
Arizona, (“Premises”) upon the terms, covenants and conditions set forth
herein, which Premises has a Floor Area containing the approximate square
footage of 6,204 square feet.

 

1.2 Use. The Premises
are to be used for a medical office and radiation therapy center.

 

1.3 Commencement of Term.
The commencement of the Term of this Lease under which Tenant shall be
obligated to commence payment of Minimum Rent and Additional Rent shall be on
or about June 1, 2005 (“Commencement Date”). The commencement and ending
of the term will be placed in an addendum to the lease after the certificate of
occupancy is issued.

 

1.4 Length of the Term.
The term of this lease period is for Seven years (7) years (“Term”). The
starting date of this lease is the Commencement Date and, unless this Lease is
renewed in accordance with Article 4 below, the ending date is on or about
May 31, 2012 (“Expiration Date”).

 

ARTICLE 2

RENT

 

2.1 Rent. Minimum
rent shall be $16,949.77 per month plus applicable rental tax (“Minimum Rent”).
Tenant shall pay to Landlord without previous demand thereof and without any
abatement, reduction, setoff or deduction whatsoever, the Minimum Rent
(together with any applicable sales tax and local taxes if the same are ever
required by law), payable in equal monthly installments, in advance, on the
first day of each and every calendar month throughout the Term of this Lease.
The Minimum Rent shall commence to accrue on the Commencement Date. The first
such monthly installments of Minimum Rent shall be due and payable to Landlord
no later than the Commencement Date and each subsequent monthly installment
shall be due and payable to Landlord on the first day of each and every month
following the Commencement Date during the Term hereof. If the Commencement
Date is a date other than the first day of the month, Minimum Rent and other
charges for the period commencing with and including the Commencement Date
through the first day of the following month shall be prorated at the rate of
one-thirtieth (1/30) of the monthly Minimum Rent per day.

 

In addition, Tenant shall
pay as Additional Rent monthly payments of applicable taxes, assessments and
insurance on the property . This amount will be of 1/12 of the bill for real
estate

 

 

and assessment taxes and
1/12 of the bill on insurance. Estimated figures for taxes and insurance
monthly rate will be produced within ten (10) days after the signing of
this Lease. Each year Landlord will produce any insurance, real estate tax and
assessment bills to the Tenant to show how the estimated taxes and insurance
were computed as Additional Rent.

 

2.1.1 There will be an
increase in the Minimum Rent starting on the first anniversary of the lease if
the Consumer Price Index increases. Minimum Rent specified in this lease shall
be subject to increase in accordance with changes in the Consumer Price Index
for Urban Wage Earners and Clerical Workers (CPI-W) as promulgated by the
Bureau of Labor Statistics of the United States Department of Labor, using the
year 2005 as a base of 100. On each anniversary date there will be a rent
adjustment based on the percentage increase in the Consumer Price Index. If the
Consumer Price Index goes down the rent will not change for that year. Consumer
Price Index increases will apply on the anniversary date of each year of the
Commencement Date. The percentage increase in the Consumer Price Index will
increase the minimum rent for that year.

 

2.1.2 In the event that the
Consumer Price Index ceases to incorporate significant number of items, or if a
substantial change is made in the method of establishing such Consumer Price
Index shall be adjusted to the figure that would have resulted had no change
occurred in the manner of computing such Consumer Price Index, or a successor
or substitute index, is not available, a reliable governmental or other
nonpartisan publication, evaluating the information for use in determining the
Consumer Price Index, shall be used in lieu of such Consumer Price Index.

 

2.2    Late
Charge. Tenant shall pay to Landlord a late charge equal to five percent
(5%) of the monthly payment of Minimum Rent, Additional Rent and any other
payment or charge due hereunder if any such amount is received by Landlord more
than five (5) days after the same shall be due, such amount being the
agreed upon liquidated damages solely to defray the additional administrative
expenses incurred by Landlord in processing such payment.

 

2.3    Interest
on Past Due Rent. If Tenant shall fail to pay, when the same is due and
payable, Minimum Rent, or Additional Rent, such unpaid amounts shall bear
interest from the due date thereof to the date of payment, at the prime
interest rate of the Chase Manhattan Bank, N.A. as of such due date, plus three
percent (3%) (“Default Date”).

 

Definition of Rent. The term “Rent”
shall refer collectively to Minimum Rent and Additional Rent. The term “Additional
Rent” is sometimes used herein to refer to any and all other sums payable by
Tenant hereunder, including, but not limited to, parking charges and sums
payable on account of default by Tenant. All Rent shall be paid by Tenant
without offset, demand or other credit, and shall be payable only in lawful money
of the United States of America which shall be legal tender in payment of all
debts and dues, public and private, at the time of payment. All sums payable by
Tenant hereunder by check shall be obtained against a financial institution
located in the United States of America. The
rent shall be paid by Tenant at 2234 Colonial Blvd., Fort Myers, FL 33907.

 

2.4    Rent
Taxes. In addition to Minimum Rent and Additional Rent, Tenant shall and
hereby agrees to pay to Landlord each month a sum equal to any sales tax, tax
on rentals and any other similar charges now existing or hereafter imposed,
based upon the privilege of leasing the space leased hereunder or based upon
the amount of rent collected therefore.

 

2

 

ARTICLE 3

NET LEASE

 

3.1 Net Lease. This
Lease shall be deemed and construed to be a triple net lease and, except as
herein otherwise expressly provided, the Landlord shall receive the fixed
Minimum Rent and Additional Rent and all other payments hereunder to be made by
the Tenant absolutely free from any charges, assessments, imposition, expenses
or deductions of any kind and every kind or nature whatsoever. Tenant is to pay
for all real estate tax and assessments on any and all taxes of any We of nature.
Tenant is to pay for all insurance and any and all costs for repairs,
replacements, maintenance and improvements. Tenant will also pay any and all
expenses for common areas, utilities, and association fees required by the
complex. Tenant also is responsible for:

 

3.1.1 Parking lot repairs,
maintenance and replacements.

 

3.1.2 Installation of
outside and inside lighting for parking.

 

3.1.3 Any security, pest
control or contrasts for air conditioner and cleaning services, etc.

 

ARTICLE 4 

OPTION TO RENEW

 

4.1 Option to renew.
Provided that Tenant is not, and at no time has been, in default during the
Term under any of the covenants, terms, conditions, and provisions of this
Lease, then Tenant shall have three (3) options to renew this Lease (each
an “Option”) for consecutive five (5) year option periods, provided that,
in order to exercise this Option, Tenant is required to give to Landlord
written notice thereof not less than six (6) months before the date of
expiration of the Term of this Lease or during any option period. Any renewal
pursuant to this Option shall be on the same terms and conditions as are
contained in this Lease.

 

ARTICLE 5 

INSURANCE AND INDEMNITY

 

5.1 Liability Insurance.
Tenant shall, during the entire term hereof, keep in full force and effect
bodily injury and public liability insurance in an amount not less than FIVE
HUNDRED THOUSAND DOLLARS ($500,000) / ONE MILLION DOLLARS ($1,000,000) per
injury and accident, respectively; property damage insurance in an amount not
less than ONE HUNDRED THOUSAND DOLLARS ($100,000); and worker’s compensation
insurance in the maximum amount permitted under Arizona law.

 

Landlord may require such
insurance coverage to be increased after the first five years of the term of
this Lease, provided that such increase shall not cause the required limits of
coverage to exceed those then commonly prevailing in the marketplace for
similar situations. The policy(s) shall name Landlord, any person, firms
or corporations designated by Landlord, and Tenant as insured, and shall
contain a clause that the insurer will not cancel or change the insurance
without first giving the Landlord twenty (20) days prior notice. The insurance
shall be in an insurance company licensed by the State of Arizona and a copy of
the policy or a certificate

 

3

 

of insurance shall be
delivered to Landlord prior to the commencement of the term of this Lease. In
no event shall the limits of said insurance policies be considered as limiting
the liability of Tenant under this Lease. In the event that Tenant shall fail
to obtain or maintain in full force and effect any insurance coverage required
to be obtained by Tenant under this Lease, Landlord may procure same from
insurance carriers as Landlord may deem proper, irrespective that a lesser
premium for such insurance coverage may have been obtained from another
insurance carrier, and Tenant shall pay as additional rent, upon demand of
Landlord, any and all premiums, costs, charges and expenses incurred or
expended by Landlord in obtaining such insurance. Notwithstanding shall procure
insurance coverage required of Tenant hereunder, Landlord shall in no manner be
liable to Tenant for any insufficiency or failure of coverage with regard to
such insurance or any loss to Tenant occasioned thereby, and additionally, the
procurement of such insurance by Landlord shall not relieve Tenant of its
obligations under this Lease to maintain insurance coverage in the types and
amounts herein specified, and Tenant shall nevertheless hold Landlord harmless
from any loss or damage incurred or suffered by Landlord from Tenant’s failure
to maintain such insurance.

 

5.2 Plate Glass Insurance.
The replacement of any plate glass damaged or broken from any cause whatsoever
in and about the Premises shall be Tenant’s responsibility. Tenant shall,
during the entire term hereof, keep in full force and effect a policy of plate
glass insurance covering all the plate glass of the Premises, in amounts
satisfactory to Landlord. The policy shall name Landlord as additional insured
and shall contain a clause that the insurer will not cancel or change the
insurance without first giving the Landlord twenty (20) days prior notice. A
copy of the policy together with the declarations page therefore shall be
delivered to Landlord prior to the commencement of the term of this Lease.

 

5.3 Increases in Fire
Insurance Premium. Tenant agrees that it will not keep, use or sell in or
upon the Premises any article, machinery or equipment which may be prohibited
by the standard form of fire and extended risk insurance policy. Tenant agrees
to pay any increase in premiums for fire and extended coverage insurance that
may be charged during the term of this Lease on the amount of such insurance
which may be carried by Landlord on the Premises or the building of which it is
a part, resulting from the type of merchandise, machinery or equipment sold or
kept by Tenant in the Premises or resulting from Tenant’s use of the Premises,
whether or not Landlord has consented to the same.

 

5.4 Indemnification.
Tenant shall indemnify, defend and save Landlord harmless from and against any
and all claims, actions, damages, liability and expense in connection with loss
of life, personal injury and/or damage to or destruction of property arising
from or out of any occurrence in, upon or at the Premises, or any part thereof,
or the occupancy or use by Tenant of the Premises or any part thereof, or
occasioned wholly or in part by any act or omission of Tenant, its agents,
contractors, employees, servants, lessees or concessionaires. Landlord shall
indemnify, defend and save Tenant harmless from and against any and all claims,
actions, damages, liability and expense in connection with loss of life,
personal injury and/or damage to or destruction of property arising from or out
of any occurrence in, upon or at the Premises occasioned in whole or in part by
any negligent act or omission by Landlord, its agents, contractors, employees,
servants or concessionaires. In case the indemnifying party shall be made a
party to any litigation commenced by or against the other party, then such
other party shall protect and hold the indemnified party harmless and pay all
costs and attorney’s fees incurred by the indemnified party in connection with
such litigation, and any appeals thereof.

 

4

 

The defaulting party shall
also pay all costs, expenses and reasonable attorney’s fees that may be
incurred or paid by the other party in enforcing the covenants and agreements
in this Lease.

 

ARTICLE 6 

UTILITIES

 

6.1 Utilities. Tenant
shall be solely responsible for and shall promptly pay all charges for water,
gas, electricity, garbage, and any other utility used and consumed in the
Premises. In the event that such utilities charges, or any portion thereof
shall be separately metered for the Premises, tenant shall pay such meter
charges directly to the utility company supplying such service. In the event,
however, that such utilities charges, or any portion thereof, shall not be
separately metered for the Premises, tenant shall pay to Landlord its pro rata
share of such non-metered charges. If any such charges are not paid when due,
Landlord may, at its option pay the same, and any amount so paid by Landlord shall
thereupon become due to Landlord from tenant as additional rent. In no event,
however, shall Landlord be liable for an interruption or failure in the supply
of any such utilities to the Premises.

 

ARTICLE 7 

SUBORDINATION AND ATTORNMENT

 

7.1 Subordination.
Tenant hereby subordinates its rights hereunder to the lien of any ground or
underlying leases, any mortgage or mortgages, or the lien resulting from any
other method of financing or refinancing, now or hereafter in force against the
Premises and to all advances made or hereafter to be made upon the security
thereof. This Section shall be self-operative and no further instrument of
subordination shall be required by any mortgagee, but Tenant agrees upon
request of Landlord, from time to time, to promptly execute and deliver any and
all documents evidencing such subordination, and failure to do so shall
constitute a default under this Lease.

 

7.2 Attornment. In
the event any proceedings are brought for the foreclosure of, or in the event
of exercise of the power of sale under, any mortgage covering the Premises or
in the event a deed is given in lieu of foreclosure of any such mortgage,
Tenant shall attorn to the purchaser, or grantee in lieu of foreclosure, upon
any such foreclosure or sale and recognize such purchaser, or grantee in lieu
of foreclosure, as the Landlord under this Lease.

 

7.3 Financing Agreements.
Tenant shall not enter into, execute or deliver any financing agreement that
can be considered as having priority to any mortgage or deed of trust that
Landlord may have placed upon the Premises.

 

ARTICLE 8

ASSIGNMENT AND SUBLETTING

 

Tenant may not assign this
lease in whole or in part, nor sublet all or any portion of the Premises,
without the prior written consent of Landlord in each instance. The consent by
Landlord to any assignment or subletting shall not constitute a waiver of the
necessity for such consent to any subsequent assignment or subletting. It is
understood that Landlord may refuse to grant consent to any assignment or
subletting by Tenant with or without cause and without stating in its refusal
to grant such consent the reasons for which it refuses to grant such consent
and may not, under any circumstances, be required or compelled to grant such
consent. No assignment, under letting, occupancy or collection shall be deemed
acceptance of the assignee,

 

5

 

subtenant or occupant as
Tenant, or a release of Tenant from the further performance by Tenant of the
covenants on the part of Tenant herein contained. This prohibition against any
assignment or subleasing by operation of law, legal process, receivership,
bankruptcy or otherwise, whether voluntary or involuntary and a prohibition
against any encumbrance of all and any part of Tenant’s leasehold interest.
Tenant shall remain fully liable on this Lease and shall not be released from
performing any of the terms, covenants and conditions hereof or any rents or
other sums to be paid hereunder. Tenant acknowledges and agrees that any and
all right and interest of the Landlord in and to the Premises, and all right
and interest of the Landlord in this Lease, may be conveyed, assigned or
encumbered at the sole discretion of the Landlord at any time.

 

ARTICLE 9

FACILITIES

 

9.1 Control of Common
Areas by Landlord. All automobile parking areas, driveways, entrances and
exits thereto, and other facilities furnished by Landlord at or near the
Premises, including employee parking areas, the truck way or ways, loading
docks, package pick-up stations, pedestrian sidewalks and ramps, landscaped
areas, exterior stairways, and other areas and improvements provided by
Landlord for the general use, in common, of tenants, their officers, agents,
employees and customers, shall at all times be subject to the exclusive control
and management of Landlord, and Landlord shall have the right from time to time
to establish, modify and enforce reasonable rules and regulations with
respect to all facilities and areas mentioned in this Article. Landlord shall
have the right to construct, maintain and operate lighting facilities on all
said areas and improvements; from time to time to change the area, level,
location and arrangement of parking areas and other facilities hereinabove
referred to and to restrict parking by tenants, their officers, agents and
employees to employee parking areas. Landlord shall not have any duty to police
the traffic in the parking areas. Tenant is to maintain and repair parking and
at tenant’s expense.

 

6

 

ARTICLE 10

TENANTS FIXTURES AND IMPROVEMENTS

 

10.1 Alterations by
Tenant. Tenant shall not make any alterations, renovations, improvements or
other installations (collectively “Alterations”) in, on or to any part of the
Premises (including, without limitation, any alterations of the front, signs,
structural alterations, or any cutting or drilling into any part of the
Premises or any securing of any fixture, apparatus, or equipment of any kind to
any part of the Premises) unless and until Tenant shall have caused plans and
specifications therefore to have been prepared, at Tenant’s expense, by an
architect or other duly qualified person and shall have obtained Landlord’s
approval thereof. Tenant shall submit to Landlord detailed drawings and plans
of the proposed Alterations at the time Landlord’s approval is sought. If such
approval is granted, Tenant shall cause the work described in such plans and
specifications to be performed, at its expense, promptly, efficiently,
competently and in a good and workmanlike manner by duly qualified and licensed
persons or entities approved by Landlord, using first grade materials. All such
work shall comply with all applicable codes, rules, regulations and ordinances.
The Tenant shall at all times maintain fire insurance with extended coverage in
an amount adequate to cover the cost of replacement of all alterations,
decorations, additions or improvements to the Premises by Tenant in the event
of fire or extended coverage loss. Tenant shall deliver to the Landlord certificates
of such fire insurance policies, which shall contain a clause requiring the
insurer to give the Landlord ten (10) days notice of cancellation of such
policies.

 

10.2 Mechanic’s Liens.
No work performed by Tenant pursuant to this Lease, whether in the nature of
erection, construction, alteration or repair, shall be deemed to be for the
immediate use and benefit of Landlord so that no mechanic’s or other lien shall
be allowed against the estate of Landlord by reason of any consent given by
Landlord to Tenant to improve the Premises. Tenant shall place such contractual
provisions as Landlord may request in all contracts and subcontracts for Tenant’s
improvements assuring Landlord that no mechanic’s liens will be asserted
against Landlord’s interest in the Premises or the property of which the
Premises are a part. Said contracts and subcontracts shall provide, among other
things, the following: That notwithstanding anything in said contracts or
subcontracts to the contrary, Tenant’s contractors, subcontractors, suppliers
and materialmen (hereinafter collectively referred to as “Contractors”) will
perform the work and/or furnish the required materials on the sole credit of
Tenant; that no lien for labor or materials will be filed or claimed by the
Contractors against Landlord’s interest in the Premises or the property of
which the Premises are a part; that the Contractors will immediately discharge
any such lien filed by any of the Contractor’s suppliers, laborers, materialmen
or subcontractors; and that the Contractors will indemnify and save Landlord
harmless from any and all costs and expenses, including reasonable attorney’s
fees, suffered or incurred as a result of any such lien against Landlord’s
interest that may be filed or claimed in connection with or arising out of work
undertaken by the Contractors. Tenant shall pay promptly all persons furnishing
labor or materials with respect to any work performed by Tenant or its
Contractors on or about the Premises. If any mechanic’s or other liens shall at
any time be filed against the Premises or the property of which the Premises
are a part by reason of work, labor, services or materials performed of
furnished, or alleged to have been performed or furnished, to Tenant or to
anyone holding the Premises through or under Tenant, and regardless of whether
any such lien is asserted against the interest of Landlord or Tenant, Tenant
shall cause the same to be discharged of record or bonded to the satisfaction
of Landlord within thirty (30) days of notice of such lien. If Tenant shall
fail to cause such lien to be so discharged or bonded after being notified of
the filing thereof, then, in addition to being an Event of Default and any
other

 

7

 

right or remedy of Landlord,
Landlord may bond or discharge the same by paying the amount claimed to be due,
and the amount so paid by Landlord, including reasonable attorneys’ fees
incurred by Landlord either in defending against such lien or in procuring the
bonding or discharge of such lien, together with interest thereon at the
Default Rate, shall be due and payable by Tenant to Landlord as Additional
Rent.

 

10.3 Tenant’s Leasehold
Improvements and Trade Fixtures. All leasehold improvements (as
distinguished from trade fixtures and apparatus) installed in the Premises at
any time, whether by or on behalf of Tenant or by or on behalf of Landlord,
shall not be removed from the Premises at any time, unless such removal is
consented to in advance by Landlord; and at the expiration of this Lease
(either on the Expiration Date or upon such earlier termination as provided in
this Lease), all such leasehold improvements shall be deemed to be part of the
Premises, shall not be removed by Tenant when it vacates the Premises, and
title thereto shall vest solely in Landlord without payment of any nature to
Tenant.

 

All trade fixtures and
apparatus (as distinguished from leasehold improvements) owned by Tenant and
installed in the Premises shall remain the property of Tenant and shall be
removable at any time, including upon the expiration of the Term; provided
Tenant shall not at such time be in default of any terms or covenants of this
Lease, and provided further, that Tenant shall repair any damage to the
Premises caused by the removal of said trade fixtures and apparatus and shall
restore the Premises to substantially the same condition as existed prior to
the installation of said trade fixtures and apparatus and shall restore the
Premises to substantially the same condition as existed prior to the
installation of said trade fixtures and apparatus.

 

ARTICLE 11 

MAINTENANCE AND REPAIR OF PREMISES

 

11.1 Maintenance by
Tenant. Tenant shall at all times keep in good order, condition and repair
(which shall include the providing of replacements where necessary) the entire
Premises, including, without limitation, the roof, the exterior and all glass
and show window moldings; and all partitions, doors, interior walls, fixtures,
equipment and appurtenances thereto, including lighting, heating and plumbing
fixtures and any air conditioning system and sprinkler system situated within
and/or servicing the Premises. Said maintenance by Tenant shall include,
without limitation, periodic painting as is reasonably necessary. All cutting
and patching of the roof area required for any reason whatsoever shall be
performed by the Landlord’s roofing subcontractor. In the event that Tenant
causes such work to be performed by anyone other than the Landlord’s roofing
subcontractor, Landlord will have the right, at Tenant’s sole cost and expense
and without notice to Tenant, to cause said work and the roof area affected
thereby to be inspected and/or repaired by Landlord’s roofing subcontractor.
All repairs, replacements, or maintenance of any item or any type of the Premises
is the responsibility of the Tenant and to be paid for by tenant.

 

ARTICLE 12 

SIGNS

 

On or before the
Commencement Date, Tenant will at its sole cost and expense purchase and cause
to be installed upon the exterior of the Premises a sign which in all respects
conforms to the criteria established by Landlord. However, Tenant will not
install said sign without first obtaining Landlord’s written approval thereof.
Thereafter, Tenant will not place or suffer to be

 

8

 

placed or maintain on any
portion of the exterior (including windows) of the Premises any sign, awning,
canopy or advertising matter or other thing of any kind, without first
obtaining Landlord’s written approval and consent. Without limitation as to the
foregoing, Landlord specifically reserves the right at any time during the term
of this Lease to require Tenant to remove from the Premises any sign(s) situated
thereon and to replace same with a sign or signs which in all respects conform
to a sign standard designated by Landlord, all of which will be performed at
Tenant’s sole cost and expense. Tenant agrees to maintain any such sign,
awning, canopy, decoration, lettering, advertising matter or other thing as may
be approved in good condition and repair at all times and to repaint or replace
such signs from time to time when reasonably necessary and to illuminate such
signs in accordance with standards established by Landlord from time to time,
including hours of illumination. All signs in addition must be conform to code
and local ordinances rules, laws and regulations.

 

ARTICLE 13 

WASTE AND GOVERNMENTAL REGULATIONS

 

13.1 Nuisance or Waste.
Tenant shall not commit or suffer to be committed any waste upon the Premises
or any nuisance or other act or thing which may disturb the quiet enjoyment of
any other tenant in the building in which the Premises may be located.

 

13.2 Compliance with Laws.
Tenant, at its sole cost, will promptly comply with all applicable laws,
guidelines, rules, regulations and requirements, whether of federal, state, or
local origin, applicable to the Premises, including, but not limited to, the
Americans with Disabilities Act, 42 U.S.C. § 12101 et seq., and those for the
correction, prevention and abatement of nuisance, unsafe conditions, or other
grievances arising from or pertaining to the use or occupancy of the Premises.
Tenant at its sole cost and expense shall be solely responsible for taking any
and all measures which are required to comply with the requirements of the ADA
within the Premises. Any Alterations to the Premises made by or on behalf of
Tenant for the purpose of complying with the ADA or which otherwise require
compliance with the ADA shall be done in accordance with this Lease; provided,
that Landlord’s consent to such Alterations shall not constitute either
Landlord’s assumption, in whole or in part, of Tenant’s responsibility for
compliance with the ADA, or representation or confirmation by Landlord that
such Alterations comply with the provisions of the ADA.

 

13.3 Governmental
Regulations. Tenant shall, at Tenant’s sole costs and expense, comply with
all regulations of all county, municipal, state, federal and other applicable
governmental authorities, not in force or which may hereafter be in force,
pertaining to Tenant or its use of the Premises, and shall faithfully observe
in the use of the Premises all municipal and county ordinances and state and
federal statutes now in force or which may hereinafter be in force. Tenant
shall indemnify, defend and save Landlord harmless from penalties, fines,
costs, expenses suits, claims, or damages resulting from Tenant’s failure to
perform its obligations in this Section.

 

13.4 Rules and
Regulations. Landlord reserves the right from time to time to make
reasonable rules and regulations, governing loading of supplies, trash
collection, pest control, parking, noise, electrical overloads and similar
issues of general concern to all tenants in the event that the need therefore
should ever arise. Notice of such rules and regulations and amendments and
supplements thereto, if any, shall be given to the Tenant.

 

9

 

ARTICLE 14 

HAZARDOUS MATERIALS

 

14.1 Hazardous Materials.
Tenant shall not use or allow the Premises to be used for the Release, storage,
use, treatment, disposal or other handling of any Hazardous Materials, without
the prior consent of Landlord. The term “Release” shall have the same meaning
as is ascribed to it in the Comprehensive Environmental Response, Compensation
and Liability Act, 42 U.S.C. § 9601 et seq., as amended, (“CERCLA”). The term “Hazardous
Materials” means (i) any substance defined as a “hazardous substance”
under CERCLA, (ii) petroleum, petroleum products, natural gas, natural gas
liquids, liquefied natural gas, and synthetic gas, and (iii) any other
substance or material deemed to be hazardous, dangerous, toxic, or a pollutant
under any federal, state, or local law, code, ordinance or regulation (“Hazardous
Materials Laws”).

 

Tenant shall: (a) give
prior notice to Landlord of any activity or operation to be conducted by Tenant
at the Premises which involves the Release, use, handling, generation,
treatment, storage, or disposal of any Hazardous Materials (“Tenant’s Hazardous
Materials Activity”), (b) comply with all federal, state, and local laws,
codes, ordinances, regulations, permits and licensing conditions governing the
Release, discharge, emission, or disposal of any Hazardous Materials and
prescribing methods for or other limitations on storing, handling, or otherwise
managing Hazardous Materials, (c) at its own expense, promptly contain and
remediate any Release of Hazardous Materials arising from or related to Tenant’s
Hazardous Materials Activity in the Premises and remediate and pay for any
resultant damage to properly, persons, and/or the environment, (d) give
prompt notice to Landlord, and all appropriate regulatory, authorities, of any
Release of any Hazardous Materials in the Premises arising from or related to,
Tenant’s Hazardous Materials Activity, which Release is not made pursuant to
and in conformance with the terms of any permit or license duly issued by
appropriate governmental authorities, any such notice to include a description
of “measures taken or proposed to be taken by Tenant to contain and remediate
the Release and any resultant damage to property, persons, or the environment, (e) at
Landlord’s request, which shall not be more frequent than once per calendar
year, retain an independent engineer or other qualified consultant or, expert
acceptable to Landlord, to conduct, at Tenant’s expense, an environmental audit
of the Premises and immediate surrounding areas, and the scope of work to be
performed by such engineer, consultant, or expert shall be approved in advance
by Landlord, and all of the engineer’s, consultant’s or expert’s work product
shall be made available to Landlord, (f) at Landlord’s request from time
to time, executed affidavits, representations and the like concerning Tenant’s
best knowledge, and belief regarding the presence of Hazardous Materials in the
Premises, (g) reimburse to Landlord, upon demand, the reasonable cost of
any testing for the purpose of ascertaining if there has been any Release of
Hazardous Materials in the Premises, if such testing is required by any
governmental agency or Landlord’s Mortgagee, (h) upon expiration or
termination of this Lease, surrender the Premises to Landlord free from the
presence and contamination of any Hazardous Materials. Tenant shall indemnify,
protect, defend (by counsel reasonably acceptable to Landlord), and hold
Landlord and free and harmless from and against any and all claims,
liabilities, penalties, forfeitures, losses and expenses (including attorneys’
fees) or death of or injury to any person or damage to any property whatsoever
arising from or caused in whole or in part, directly or indirectly, by the
presence in or about the Premises of any of Tenant’s Hazardous Materials
Activity or by Tenant’s failure to comply with any Hazardous Materials Law
regarding Tenant’s Hazardous Materials Activity or in connection with any
removal, remediation, clean up, restoration and materials required hereunder to
return the

 

10

 

Premises and any other
property of whatever nature to their condition existing prior to Tenant’s
Hazardous Materials Activity.

 

14.2 Disclosure Warning
and Notice Obligations. Tenant shall comply with all laws, ordinances and
regulations in the State of Arizona regarding the disclosure of the presence or
danger of Tenant’s Hazardous Materials. Tenant acknowledges and agrees that all
reporting and warning obligations required under the Hazardous Materials Laws
with respect to Tenant’s Hazardous Materials Activity are the sole
responsibility of Tenant, whether or not such Hazardous Materials Laws permit
or require Landlord to provide such reporting or warnings, and Tenant shall be
solely responsible for complying with such Hazardous Materials Laws regarding the
disclosure of, the presence or danger of Tenant’s Hazardous Materials Activity.
Tenant shall immediately notify Landlord, in writing, of any complaints,
notices, warnings, reports or asserted violations of which Tenant becomes aware
relating to Hazardous Materials on or about the Premises. Tenant shall also
immediately notify Landlord if Tenant knows or has reason to believe Tenant’s
Hazardous Materials have or will be released in or about the Premises.

 

14.3 Environmental Tests
and Audits. Tenant shall not perform or cause to be performed, any
Hazardous Materials surveys, studies, reports or inspection, relating to the
Premises without obtaining Landlord’s advance written consent, which consent
may be withheld in Landlord’s sole discretion. At any time prior to the
expiration of the Term, Landlord shall have the right to enter upon the
Premises in order to conduct appropriate tests and to deliver to Tenant the
results of such tests to demonstrate that levels of any Hazardous Materials in
excess of permissible levels has occurred as a result of Tenant’s use of the
Premises.

 

14.4 Survival/Tenant’s
Obligations. The respective rights and obligations of Landlord and Tenant
under this Article shall survive the expiration or termination of this
Lease.

 

ARTICLE 15

DESTRUCTION OF PREMISES

 

15.1 Damage and
Destruction. If all or any part of the Premises shall be damaged or
destroyed by fire or other casualty, this Lease shall continue in full force
and effect, unless terminated as hereinafter provided, and Landlord shall
repair, restore or rebuild the Premises to the condition existing at the time
of the occurrence of the loss; provided, however, Landlord shall not be
obligated to commence such repair, restoration or rebuilding until insurance
proceeds are received by Landlord, and Landlord’s obligation hereunder shall be
limited to the proceeds actually received by Landlord under any insurance
policy or policies, if any, less those amounts (i) which have been
required to be applied towards the reduction of any indebtedness secured by a
mortgage covering the Premises or any portion thereof, and (ii) which are
used to reimburse Landlord for all costs and expenses, including but not
limited to attorneys’ fees, incurred by Landlord to recover any such insurance
proceeds.

 

Tenant agrees to notify
Landlord in writing not less than thirty (30) days prior, to the date Tenant
opens for business in the Premises of the actual cost of all permanent
leasehold improvements and betterments installed or to be installed by Tenant
in the Premises (whether same have been paid for entirely or partially by
Tenant), but exclusive of Tenant’s personal property, movable trade fixtures
and inventory. Similar notifications shall be given to Landlord not less than
thirty (30) days prior to the commencement of any proposed alterations,
additions or improvements to the Premises. If Tenant fails to comply, with the
foregoing provisions, any

 

11

 

loss or damage Landlord
shall sustain by reason thereof shall be borne by Tenant and shall be paid
immediately by Tenant upon receipt of a bill therefore and evidence of such
loss, and in addition to any other rights or remedies reserved by Landlord
under this Lease, Landlord’s obligations under this Article to repair,
replace and/or rebuild the Premises shall be deemed inapplicable, and in lieu
thereof, Landlord may, at its election, either restore or require Tenant to
restore the Premises to the condition which existed prior to such loss, and in
either case Tenant shall pay the cost of such restoration.

 

Tenant covenants and agrees
to repair or replace Tenant’s fixtures, furniture, furnishings, floor
coverings, equipment and stock in trade and reopen for business in the Premises
within thirty (30) days after notice from Landlord that the Premises are ready
for re-occupancy.

 

No damage or destruction to
the Premises shall allow Tenant to surrender possession of the Premises nor
affect Tenant’s liability for the payment of rents or charges or any other
covenant herein contained, except as may be specifically provided in this
Lease.

 

Notwithstanding anything to
the contrary contained in this Section or elsewhere in this Lease,
Landlord, at its option, may terminate this Lease by giving Tenant notice
thereof within one hundred and eighty (180) days from the date of the casualty
if:

 

(a) The Premises or the
building in which the Premises are located shall be damaged or destroyed as a
result of an occurrence which is not covered by Landlord’s insurance; or

 

(b) The Premises shall
be damaged or destroyed during the last two (2) years of the Term or any
renewals thereof; or

 

(c) The Premises are
damaged or destroyed to the extent of twenty five-percent (25%) or more of the
replacement cost thereof, in which event Landlord will have the option of
terminating this Lease or any renewal thereof by serving written notice upon
Tenant and any prepaid Rent or Additional Rent will be prorated as of the date
of destruction and the unearned portion of such Rent will be refunded to Tenant
without interest.

 

If the Premises shall be
damaged or destroyed and in the event that Landlord has elected to continue
this Lease, Landlord and Tenant shall commence their respective obligations
under this Article as soon as is reasonably possible and prosecute the
same to completion with all due diligence.

 

Except where the damage or
destruction results from the wrongful or negligent act or omission of Tenant,
the Minimum Rent shall be abated proportionately with the degree to which
Tenant’s use of the Premises is impaired during the period of any damage,
repair or restoration provided for in this Article; provided further, that in
the event Landlord elects to repair any damages as herein contemplated, any
abatement of Minimum Rent shall end ten (10) days after notice by Landlord
to Tenant that the Premises have been repaired. Tenant shall continue the
operation of its business on the Premises during any such period to the extent
reasonably practicable from the standpoint of prudent business management, and
any obligation of Tenant under the Lease to apply charges reserved as
Additional Rent shall remain in full force and nothing in the Section shall
be construed to abate Additional Rent. Except for the abatement of Minimum Rent
hereinabove provided, Tenant shall not be entitled to any compensation or
damage for loss in the use of the whole or any part of the Premises and/or any
inconvenience or

 

12

 

annoyance occasioned by any
damage, destruction, repair or restoration. If Minimum Rent is abated there
shall be all corresponding and appropriate reduction made to the Minimum Annual
Volume.

 

Unless this Lease is
terminated by Landlord, Tenant shall repair, restore and re-fixture all parts
of the Premises not insured under any insurance policies insuring Landlord in a
manner and to a condition equal to that existing prior to its destruction or
damage, including, without limitation, all exterior signs, trade fixtures,
equipment, display cases, furniture, furnishings and other installations of
personality of Tenant. The proceeds of all insurance carried by Tenant on its
property and improvements shall be held in trust by Tenant for the purpose of
said repair and replacement. Tenant shall give to Landlord prompt written
notice of, any damage to or destruction of any portion of the Premises
resulting from fire or other casualty.

 

ARTICLE 16 

EMINENT DOMAIN

 

16.1 Total Condemnation
of Premises. If the whole of the Premises shall be acquired or condemned by
eminent domain for any public or quasi-public use or purpose, then the Term of
this Lease shall cease and terminate as of the date of title vesting in such
proceeding and all rentals shall be paid up to that date.

 

16.2 Partial Condemnation
of Premises.

 

16.2.1 If twenty (20%)
percent or more of the Premises shall be acquired or condemned by eminent
domain for any public or quasi-public use or purpose, then the Tenant shall
have the option to cancel and terminate this Lease upon notice thereof given to
the Landlord within ninety (90) days after the vesting of title in such
proceeding.

 

16.2.2 In the event that
less than ten (10%) percent of the Premises shall be acquired or condemned by
eminent domain for any public or quasi-public use or purpose, or in the event
ten (10%) percent or more of the Premises shall have been so taken, and Tenant
shall not elect to terminate this Lease as set forth above, then the Landlord
shall promptly restore the Premises to a condition reasonably comparable under
the circumstances to its condition at the time of such condemnation, less the
portion lost in the taking; and this Lease shall thereafter continue in full
force and effect. In such event of a partial taking, described hereinabove,
from the effective date that physical possession is taken by the condemning
authority through the end of the term of this Lease, the annual Minimum Rent
payable by Tenant to Landlord under this Lease shall be reduced by a fraction,
the numerator of which shall be the gross area of the premises so taken by the
condemning authority and the denominator of which shall be the gross area of
the Premises on the date immediately prior to the effective date of such
taking.

 

16.3 Total Condemnation
of Parking. If the whole of the common parking areas at or near the Premises
shall be acquired or condemned by eminent domain for any public or quasi-public
use or purpose, then the term of this Lease shall cease and terminate as of the
date of title vesting in such proceeding.

 

16.4 Partial Condemnation
of Parking Area. If twenty (20%) percent or more of the common parking
areas at or near the Premises shall be acquired or condemned by eminent domain
for any public or quasi-public use or purpose, then the Tenant shall have the
option to

 

13

 

cancel and terminate this
Lease upon notice thereof given to the Landlord within ninety (90) days after
the vesting of title in such proceeding.

 

If less than twenty (20%)
percent of the parking areas at or near the Premises shall be acquired or
condemned by eminent domain for any public or quasi-public use or purpose, or
if more than twenty (20%) percent of the parking areas shall be so acquired or
condemned, but Tenant shall not elect to cancel and terminate this Lease, then
the Landlord shall restore the parking areas to a condition reasonably
comparable under the circumstances to its condition at the time of such
condemnation, less the portion lost in the taking. In such event, this Lease
shall be and remain in full force and effect and no reduction of Minimum Rent
or any Additional Rent payable by Tenant under this Lease shall be allowed in
such circumstances, but Tenant shall continue to pay the full Minimum Rent or
any Additional Rent payable under this Lease for the balance of the term
hereof.

 

ARTICLE 17 

DEFAULTS

 

17.1 Events of Default By
Tenant. If (1) Tenant vacates, abandons or surrenders all or any part
of the Premises prior to the expiration of the Term of the Lease or (2) Tenant
fails to fulfill any of the terms or conditions of this Lease or any other
lease heretofore made by Tenant for space in the Premises or (3) the
appointment of a trustee or a receiver to take possession of all or
substantially all of Tenant’s assets occurs, or if the attachment, execution or
other judicial seizure of all or substantially all of Tenant’s assets located
at the Premises, or of Tenant’s interest in this Lease, occurs, or (4) Tenant
or any of its successors or assigns or any guarantor of this Lease (“Guarantor”)
should file any voluntary petition in bankruptcy, reorganization or
arrangement, or an assignment for the benefit of creditors or for similar
relief under any present or future statute, law or regulation relating to
relief of debtors, or (5) Tenant or any of its successors or assigns or
any Guarantor should be adjudicated bankrupt or have an involuntary petition in
bankruptcy, reorganization or arrangement filed against it, or (6) Tenant
shall permit, allow or suffer to exist any lien, judgment, writ, assessment,
charge, attachment or execution upon Landlord’s or Tenant’s interest in this
Lease or to the Premises, and/or the fixtures, improvements and furnishings
located thereon; then, Tenant shall be in default hereunder.

 

17.2 Tenant’s Grace
Periods. If (1) Tenant fails to pay Rent or Additional Rent within
five (5) days after notice from Landlord of delinquency or (2) Tenant
fails to cure any other default within ten (10) days after notice faith),
then Landlord shall have such remedies as are provided under this Lease and/or
under the laws of the State of Arizona.

 

17.3 Repeated Late
Payment. Regardless of the number of times of Landlord’s prior acceptance
of late payments and/or late charges, (i) if Landlord notifies Tenant
twice in any 6-month period that Minimum Rent or any Additional Rent has not
been paid when due, then any other late payment within such 6-month period
shall automatically constitute a default hereunder without the necessity of
notice and (ii) the mere acceptance by Landlord of late payments in the
past shall not, regardless of any applicable laws to the contrary, thereafter
be deemed to waive Landlord’s right to strictly enforce this Lease, including
Tenant’s obligation to make payment of Rent on the exact day same is due,
against Tenant.

 

17.4 Landlord’s Default.
If Tenant asserts that Landlord has failed to meet any of its obligations under
this Lease, Tenant shall provide written notice (“Notice of Default”) to

 

14

 

Landlord specifying the
alleged failure to perform, and Tenant shall send by certified mail, return
receipt requested, a copy of such Notice of Default to any and all mortgage
holders, provided that Tenant has been previously advised of the addresses) of
such mortgage holder(s). Landlord shall have a thirty (30) day period after
receipt of the Notice of Default in which to commence curing any
non-performance by Landlord, and Landlord shall have as much time thereafter to
complete such cure as is necessary so long as Landlord’s cure efforts are
diligent and continuous, if Landlord has not begun the cure within thirty (30)
days of receipt of the Notice of Default, or Landlord does not thereafter
diligently and continuously attempt to cure, then Landlord shall be in default
under this Lease. If Landlord is in default under this Lease, then the mortgage
holder(s) shall have an additional thirty (30) days, after receipt of a
second written notice from Tenant, within which to cure such default or, if
such default cannot be cured within that time, then such additional time as may
be necessary so long as their efforts are diligent and continuous.

 

ARTICLE 18 

LANDLORD’S REMEDIES FOR TENANT’S DEFAULT.

 

18.1 Landlord’s Options.
If Tenant is in default of this Lease, Landlord may, at its option, in addition
to such other remedies as may be available under the law of the State of
Arizona:

 

(a) Terminate this
Lease and Tenant’s right of possession; or

 

(b) Terminate Tenant’s
right to possession but not the Lease and/or proceed in accordance with any and
all provisions of Section 18.2 below.

 

18.2 Landlord’s Remedies.
Landlord may without further notice reenter the Premises either by force or
otherwise and dispossess Tenant by summary proceedings or otherwise, as well as
the legal representatives) of Tenant and/or other occupants) of the Premises,
and remove their effects and hold the Premises as if this Lease had not been
made, and Tenant hereby waives the service of notice of intention to re-enter
or to institute legal proceedings to that end; and/or at Landlord’s option.

 

All Rent for the balance of
the Term will, at the election of Landlord, be accelerated and the present
worth of same for the balance of the Term, net of amounts actually collected by
Landlord, shall become immediately due thereupon and be paid, together with all
expenses of every nature which Landlord may incur such as (by way of
illustration and not limitation) those for attorneys’ fees, brokerage,
advertising, and refurbishing the Premises in good order or preparing them for
re-rental. For purposes of this clause (2), “present worth” shall be computed
by discounting such amount to present worth at a discount rate equal to one
percentage point above the discount rate then in effect at the Federal Reserve
Bank nearest to the location of the Premises.

 

Landlord may re-let the
Premises or any part thereof, either in the name of Landlord or otherwise, for
a term or terms which may at Landlord’s option be less than or exceed the
period which would otherwise have constituted the balance of the Term, and may
grant concessions or free rent or charge a higher rental than that reserved in
this Lease; and/or at Landlord’s option, Tenant or its legal representatives
will also pay to Landlord as liquidated damages any deficiency between the Rent
and all Additional Rent hereby reserved and/or agreed to be paid and the net

 

15

 

amount, if any, of the rents
collected on account of the lease or leases of the Premises for each month of
the period which would otherwise have constituted the balance of the Term.

 

If Landlord exercises the
remedy above, and provided that Tenant has paid Landlord the accelerated Rent
as required by this Section, Landlord shall remit to Tenant on a monthly basis
until the Expiration Date any amounts actually collected by Landlord as a
result of are letting remaining after subtracting therefrom all reasonable
costs paid by Landlord to secure a replacement tenant including reasonable
marketing/leasing costs, fees and commissions, and costs of preparing improvements
and refurbishment to the Premises for the replacement tenant. In no event shall
the total amount paid to Tenant pursuant to the preceding sentence exceed the
accelerated Rent paid by Tenant to Landlord. If this Lease is terminated,
Landlord may re-let the Premises or any part thereof, alone or together with
other premises, for such term or terms (which may be greater or less than the
period which otherwise would have constituted the balance of the Term) and on
such terms and conditions (which may include concessions or free rent and
alterations of the Premises) as Landlord, in its sole discretion, may
determine, but Landlord shall not be liable for nor shall Tenant’s obligations
hereunder be diminished by reason of, any failure by Landlord to re-let the
Premises or any failure by Landlord to collect any rent due upon such
re-letting.

 

18.3 Waiver of Jury Trial.
To the extent permitted by law, Tenant hereby waives: (a) jury trial in
any action or proceeding regarding a monetary default by Tenant and/or Landlord’s
right to possession of the Premises, and (b) in any action or proceeding
by Landlord for eviction where Landlord has also filed a separate action for
damages, Tenant waives the right to interpose any counterclaim in such eviction
action. Moreover, Tenant agrees that it shall not interpose or maintain any
counterclaim in such damages action unless it pays and continues to pay all
Rent, as and when due, into the registry of the court in which the damages
action is filed.

 

18.4 Waiver of Rights of
Redemption. Tenant hereby expressly waives any and all rights of redemption
granted by or under any present or future laws in the event of Tenant being
evicted or dispossessed for any cause, or in the event of Landlord obtaining
possession of the Premises, by reason of the violation by Tenant of any of the
covenants or conditions of this Lease or otherwise.

 

16

 

ARTICLE 19

BANKRUPTCY PROVISIONS

 

19.1 Event of Bankruptcy.
If this Lease is assigned to any person or entity pursuant to the provisions of
the United States Bankruptcy Code, 11 U.S.C. Section 101 et seq. (the “Bankruptcy
Code”), any and all monies or other consideration payable or otherwise to be
delivered in connection with such assignment shall be paid or delivered to
Landlord, shall be and remain the exclusive property of Landlord, and shall not
constitute the property of Tenant or of the estate of Tenant within the meaning
of the Bankruptcy Code. Any and all monies or other considerations constituting
Landlord’s property under this Section not paid or delivered to Landlord
shall be held in trust for the benefit of Landlord and shall be promptly paid
or delivered to Landlord. Any person or entity to which this Lease is assigned
pursuant to the provisions of the Bankruptcy Code shall be deemed without
further act or deed to have assumed all of the obligations arising under this
Lease on and after the date of such assignment.

 

19.2 Additional Remedies.
In addition to any rights or remedies hereinbefore or hereinafter conferred
upon Landlord under the terms of this Lease, the following remedies and
provisions shall specifically apply in the event Tenant is in default of this
Lease:

 

19.2.1 In all events, any
receiver or trustee in bankruptcy shall either expressly assume or reject this
Lease within sixty (60) days following the entry of an “Order for Relief or
within such earlier time as may be provided by applicable law.

 

19.2.2 In the event of an
assumption of this Lease by a debtor or by a trustee, such debtor or trustee
shall within fifteen (15) days after such assumption (i) cure any default
or provide adequate assurance that defaults will be promptly cured; (ii) compensate
Landlord for actual pecuniary loss or provide adequate assurance that
compensation will be made for actual monetary loss, including, but not limited
to, all attorneys’ fees and costs incurred by Landlord resulting from any such
proceedings; and (iii) provide adequate assurance of future performance.

 

19.2.3 Where a default
exists under this Lease, the trustee or debtor assuming this Lease may not
require Landlord to provide services or supplies incidental to this Lease
before its assumption by such trustee or debtor, unless Landlord is compensated
under the terms of this Lease for such services and supplies provided before
the assumption of such Lease.

 

19.2.4 The debtor or trustee
may only assign this Lease if (i) it is assumed and the assignee agrees to
be bound by this Lease, (ii) adequate assurance of future performance by
the assignee is provided, whether or not there has been a default under this
Lease, and (iii) the debtor or trustee has received Landlord’s prior
written consent pursuant to the provisions of this Lease. Any consideration
paid by any assignee in excess of the rental reserved in this Lease shall be
the sole property of, and paid to, Landlord.

 

19.2.5 Landlord shall be
entitled to the fair market value for the Premises and the services provided by
Landlord (but in no event less than the rental reserved in this Lease) subsequent
to the commencement of a bankruptcy event.

 

19.2.6 Any security deposit
given by Tenant to Landlord to secure the future performance by Tenant of all
or any of the terms and conditions of this Lease shall be automatically
transferred to Landlord upon the entry of an “Order of Relief.”

 

17

 

19.2.7 The parties agree
that Landlord is entitled to adequate assurance of future performance of the
terms and provisions of this Lease in the event of an assignment under the
provisions of the Bankruptcy Code. For purposes of any such assumption or
assignment of this Lease, the parties agree that the term “adequate assurance”
shall include, without limitation, at least the following: (i) any
proposed assignee must have, as demonstrated to Landlord’s satisfaction, a net
worth (as defined in accordance with generally accepted accounting principles
consistently applied) in an amount sufficient to assure that the proposed
assignee will have the resources to meet the financial responsibilities under
this Lease, including the payment of all Rent; the financial condition and
resources of Tenant are material inducements to Landlord entering into this
Lease; (ii) any proposed assignee must have engaged in the Use described
in Section 1.2 for at least five (5) years prior to any such proposed
assignment, the parties hereby acknowledging that in entering into this Lease,
Landlord considered extensively Tenant’s permitted use and determined that such
permitted business would add substantially to the tenant balance in the
Premises, and were it not for Tenant’s agreement to operate only Tenant’s
permitted business on the Premises, Landlord would not have entered into this
Lease, and that Landlord’s operation of the Premises will be materially
impaired if a trustee in bankruptcy or any assignee of this Lease operates any
business other than Tenant’s permitted business; (iii) any assumption of
this Lease by a proposed assignee shall not adversely affect Landlord’s
relationship with any of the remaining tenants in the building in which the
Premises are located, taking into consideration any and all other “use” clauses
and/or “exclusivity” clauses which may then exist under their leases with
Landlord; and (iv) any proposed assignee must not be engaged in any
business or activity which it will conduct on the Premises and which will
subject the Premises to contamination by any Hazardous Materials.

 

ARTICLE 20 

LIMITATIONS OF LANDLORD’S LIABILITY

 

The term “Landlord” as used
in this Lease, so far as covenants or obligations on the part of the Landlord
are concerned shall be limited to mean and include only a ground lessee if the
named Landlord herein is holding the premises under a ground lease for so long
as the named Landlord is the holder of such ground lease interest or the owner
or owners of the fee simple of the Premises; and in the event of transfer or
transfers of either the ground leasehold interest to any other person or the
transfer of title to the fee premises to any person, the Landlord herein named
(and in the case of subsequent transfers or conveyances the then grantor or
assignor), shall be automatically freed and relieved from and after the date of
such transfer or conveyance or assignment of all liability as respects the performance
of any covenant or obligation on the part of the Landlord contained in this
Lease thereafter to be performed, it being the intention of the parties that
the covenants and obligations to be observed and performed by the-Landlord
shall be binding upon the Landlord only during and in respect of its period of
ownership of either a leasehold interest, or a fee interest as the case may be.
Anything in this Lease to the contrary notwithstanding, Tenant agrees that
Tenant shall, subject to prior rights of any mortgagee of the Premises, look
solely to the estate and property of Landlord in the Premises for the
collection of any judgment (or other judicial process) requiring the payment of
money by Landlord in the event of any default or breach by Landlord with respect
to any of the terms, covenants and conditions of this Lease to be observed
and/or performed by Landlord, and no other assets of Landlord or any principal
of Landlord shall be subject to levy, execution or other procedures for the
satisfaction of Tenant’s remedies.

 

18

 

ARTICLE 21 

ACCESS BY LANDLORD

 

Landlord or Landlord’s
agents shall have the right to enter the Premises at all times to examine the
same and to show them to prospective purchasers of the building, and to make
such repairs, alterations, improvements or additions as Landlord may deem
necessary or desirable, and Landlord shall be allowed to take all material into
and upon said premises that may be required therefore, without the same constituting
an eviction of Tenant in whole or in part and the Rent reserved shall in no way
abate while said repairs, alterations, improvements, or additions are being
made, by reason of loss or interruption of business of Tenant, or otherwise.
During the six (6) month period prior to the expiration of the term of
this Lease or any renewal term, Landlord may exhibit the Premises to
prospective tenants or purchasers, and place upon the premises the usual
notices “To Let” or “For Sale” which notices Tenant shall permit to remain
thereon without molestation. Nothing herein contained, however, shall be deemed
or construed to impose upon Landlord any obligation, responsibility or
liability whatsoever, for the care, maintenance, or repair of the Premises or
any part thereof, except as otherwise herein specifically provided. Landlord to
give Tenant reasonable notice during business hours prior to any entry.

 

ARTICLE 22 

QUIET ENJOYMENT

 

22.1 Landlord’s
Covenant. Upon payment by the Tenant of the rents and other
charges herein provided, and upon the observance and performance of all the
covenants, terms and conditions on Tenant’s part to be observed and performed,
Tenant shall peaceably and quietly hold and enjoy the Premises for the term
hereby demised without hindrance or interruption by Landlord or any other
person or persons lawfully or equitably claiming by, through or under the
Landlord, subject, nevertheless, to the terms and conditions of this Lease.

 

ARTICLE 23 

MISCELLANEOUS

 

23.1 Accord and
Satisfaction. No payment by Tenant or receipt by Landlord of a lesser
amount than the rent herein stipulated to be paid shall be deemed to be other
than on account of the earliest stipulated rent, nor shall any endorsement or
statement on any check or any letter accompanying any check or payment as rent
be deemed an accord and satisfaction, and Landlord may accept such check or
payment without prejudice to Landlord’s right to recover the balance of such
rent or pursue any other remedy provided herein or by law.

 

23.2 Entire Agreement.
This Lease constitutes all covenants, promises, agreements, conditions and
understandings between Landlord and Tenant concerning the Premises and the
Building and there are no covenants, promises, conditions or understandings,
either oral or written, between them other than are herein set forth. Neither
Landlord nor Landlord’s agents have made nor shall be bound to any
representations with respect to the Premises or the Building except as herein
expressly set forth, and all representations, either oral or written, shall be
deemed to be merged into this Lease Agreement. Except as herein otherwise
provided, no subsequent alteration change or addition to this lease shall be
binding upon Landlord or Tenant unless reduced to writing and signed by them.

 

19

 

23.3 Notices.

 

23.3.1 Any notice by Tenant
to Landlord must be served by certified mail return requested, addressed to
Landlord at the address first hereinabove given or at such other address as
Landlord may designate by written notice. Tenant shall also provide copies of
any notice given to Landlord to such mortgagees, agents or attorneys of
Landlord as Landlord may direct.

 

23.3.2 After commencement of
the term hereof any notice by Landlord to Tenant shall be served by certified
mail, return receipt requested addressed to Tenant at the Premises or at such
other address as Tenant shall designate by written notice, or by delivery by
Landlord to the Premises or to such other address.

 

	
  Landlord:

  	
  Tenant:

  
	
  ARIZONA
  RADIATION

  	
  ARIZONA

  
	
  ENTERPRISES,
  LLC

  	
  RADIATION

  
	
  C/o
  DDM, LLC

  	
  THERAPY

  
	
   

  	
  MANAGEMENT

  
	
   

  	
  SERVICES, INC

  
	
  2234
  Colonial Blvd.

  	
  2234 Colonial Blvd.

  
	
  Fort
  Myers, Fl. 33097

  	
  Fort Myers, Fl. 33097

  

 

23.3.3 All notices given
hereunder shall be in writing, and shall be effective and deemed to have been
given only upon receipt by the party to which notice is being given, said
receipt being deemed to have occurred upon hand delivery or posting, or upon
such date as the postal authorities shall show the notice to have been delivered,
refused, or undeliverable, as evidenced by the return receipt. Notwithstanding
any other provision hereof, Landlord shall also have the right to give notice
to Tenant in any other manner provided by law.

 

23.4 Successors. All
rights and liabilities herein given to, or imposed upon, the respective parties
hereto shall extend to and bind the several respective heirs, legal
representatives, and permitted successors and assigns of the said parties; and
if there shall be more than one person or party constituting the Tenant, they
shall be bound jointly and severally by the terms, covenants and agreements
herein. No rights, however, shall inure to the benefit of any assignee of
Tenant unless the assignment to such has been approved by Landlord in writing
as provided herein. Nothing contained in this Lease shall in any manner
restrict Landlord’s right to assign or encumber this Lease and, in the event
Landlord sells its interest in the Building and the purchaser assumes Landlord’s
obligations and covenant, Landlord shall thereupon be relieved of all further
obligations hereunder.

 

23.5 Captions and Section Numbers.
The captions, section numbers, and article numbers appearing in this Lease are
inserted only as a matter of convenience and in no way define, limit, construe,
or describe the scope or intent of such sections or articles of this Lease nor
in any way affect this Lease.

 

23.6 Broker’s Commission.
The Tenant represents and warrants to Landlord that it has dealt with no real
estate broker, agent, salesperson or finder in connection with this Lease or
the Premises. Notwithstanding the foregoing, Tenant agrees to indemnify, defend
and save the Landlord harmless from all liabilities arising from claims by any
real estate broker or agent

 

20

 

claiming through Tenant.
Such indemnity of Tenant shall include, without limitation, all of attorneys,
fees incurred in connection therewith.

 

23.7 Partial Invalidity.
If any term, covenant or condition of this Lease or the application thereof to
any person or circumstances shall, to any extent, be invalid or unenforceable,
the remainder of this Lease the application of such term, covenant or condition
to persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected thereby and each term, covenant or
condition of this Lease shall be valid and enforceable to the fullest extent
permitted by law.

 

23.8 Estoppel Certificate.
Landlord and Tenant agree that each will, at any time and from time to time,
within ten (10) days following written notice by the other party hereto
specifying that it is given pursuant to this Section, execute, acknowledge and
deliver to the party who gave such notice, or its designate, a statement in
writing certifying that this Lease is unmodified and in full force and effect (or if there have
been modifications, that the same is in full
force and effect and stating the modifications), and the date to
which the annual rent and any other payments due hereunder from Tenant have
been paid in advance, if any, and stating whether or not there are defenses or
offsets claimed by the maker of the certificate and whether or not to the best
of knowledge of the signer of such certificate the other party is in default in
performance of any covenant agreement or condition contained in this Lease, and
if so, Specifying each such default of which the maker may have knowledge and
if requested, such financial information concerning Tenant and Tenant’s
business operations (and the Guarantor of this Lease, if this Lease be
guaranteed) as may be reasonably requested by any Mortgagee or prospective
mortgagee or purchaser. The failure of either party to execute, acknowledge and
deliver to the other a statement in accordance with the provisions of this Section within
said ten (10) business day period shall constitute an acknowledgment, by
the party given such notice, which may be relied on by any person holding or
proposing to acquire an interest in the Building or any party thereof or the
Premises or this Lease from or through the other party, that this Lease is
unmodified and in full force and
effect and that such rents have been duly and fully
paid to an including the respective due dates immediately preceding
the date of such notice and shall constitute, as to any person entitled as
aforesaid to rely upon such statements, waiver of any defaults which may exist
prior to the date of such notice; provided, however that nothing contained in
the provision of this Section shall constitute waiver by Landlord of any
default in payment of rent or other charges existing as of the date of such
notice and, unless expressly consented to in writing by Landlord, and Tenant
shall still remain liable for the same.

 

23.9 Liability of
Landlord. Tenant shall look solely to the estate and property of the
Landlord in the Premises for the collection of any judgment, or in connection
with any other judicial process, requiring the payment of money by Landlord in
the event of any default by Landlord with respect to any of the terms, covenants
and conditions of this Lease to be observed and performed by Landlord, and no
other property or estates of Landlord shall be subject to levy, execution or
other enforcement procedures for the satisfaction of Tenant’s remedies and
rights under this Lease. Both parties waive a jury trial if any litigation
arises.

 

23.10 Recordings.
Tenant shall not record this Lease, or any memorandum or short form thereof,
without the written consent and joinder of Landlord.

 

23.11 Time of Essence.
Time is of the essence with respect to the performance of every provision of
this Lease in which time of performance is a factor.

 

21

 

ARTICLE 24

TENANT’S PROPERTY

 

24.1 Taxes on Leasehold.
Tenant shall be responsible for and shall pay before delinquency all municipal,
county or state taxes assessed during the term of this Lease against any
leasehold interest or personal property of any kind, owned by or placed in,
upon or about the Premises by the Tenant.

 

24.2 Personal Property.
Landlord shall not be liable for any damage to property of Tenant or of others
located on the Premises, nor for the loss of or damage to any property of
Tenant or of others by theft or otherwise. Landlord shall not be liable for any
injury or damage to persons or property resulting from fire, explosion, falling
plaster, steam, gas, electricity, water, rain, or snow or leaks from any part
of the Premises or from the pipes, appliances or plumbing works or from the
roof, street or subsurface or from any other place or by dampness or by any
other cause of whatsoever nature. Landlord shall not be liable for any such
damage caused by other tenants or persons in the Premises, occupants of
adjacent property, or caused by operation in construction of any private, public
or quasi-public work. All property of Tenant kept or stored on the Premises
shall be so kept or stored at the sole risk of Tenant only.

 

24.3 Notice by Tenant.
Tenant shall give immediate notice to Landlord in case of fire or accidents in
the Premises or in the building of which the Premises are a part or of defects
therein or in any fixtures or equipment.

 

ARTICLE 25

HOLDING OVER SUCCESSORS

 

25.1 Surrender of
Premises. At the expiration of the tenancy hereby created, Tenant shall
surrender the Premises in the same condition as the Premises were in upon the
Commencement Date, reasonable wear and tear excepted, and damage by unavoidable
casualty excepted, and shall surrender all keys for the Premises to Landlord at
the place then fixed for the payment of rent and shall inform Landlord of all
combinations on locks, safes and vaults, if any, in the Premises. Tenant shall
remove all its trade fixtures before surrendering the premises as aforesaid and
shall repair any damage to the Premises caused thereby. Tenant’s obligation to
observe or perform this covenant shall survive the expiration or other
termination of the term of this Lease.

 

ARTICLE 26

ATTORNEY FEES AND COSTS

 

26.1 Attorney Fees and
Costs. In the event of a lawsuit or litigation concerning this Lease or
enforcement of this Lease the prevailing party shall be entitled to reasonable
attorney fees and costs. This will also cover appellant fees and appellant
costs.

 

22

 

ARTICLE 27

VENUE

 

27.1 Venue. In the
event of a lawsuit, litigation or interpretation of this Lease Agreement
parties shall be governed by the laws of the State of Arizona.

 

IN WITNESS WHEREOF, the
undersigned has hereunto set his hand and seal on
                  
day of June, 2005.

 

	
   

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Arizona Radiation
  Enterprises, LLC, an Arizona limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: DDM LLC, a Florida
  limited liability company, Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Dr. Daniel E.
  Dosoretz, Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Arizona Radiation Therapy
  Management Services, Inc., an Arizona corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: David Koeninger,
  Vice-President

  
					

 

23

 

FIRST
AMENDMENT TO LEASE

 

This FIRST AMENDMENT TO
LEASE dated December 31, 2009 (this “Amendment”), is by and between
ARIZONA RADIATION ENTERPRISES, LLC, an Arizona limited liability company (“Landlord”),
and ARIZONA RADIATION THERAPY MANAGEMENT SERVICES, INC., an Arizona
corporation (“Tenant”).

 

WITNESSETH:

 

WHEREAS, Landlord and Tenant
are parties to that certain Lease dated June 1, 2005 (the “Lease”), for
certain real property commonly known as 7337 East Thomas Road, Scottsdale,
Arizona; and

 

WHEREAS, Landlord and Tenant
desire to amend certain provisions of the Lease upon and subject to the terms
and conditions set forth herein.

 

NOW, THEREFORE, for good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, Landlord and Tenant hereby agree as follows:

 

1. Liability Insurance.
The second sentence of the second paragraph of Section 5.1 of the Lease is
hereby deleted in its entirety and replaced with the following:

 

The liability insurance
policy (other than any policy of worker’s compensation insurance) shall name
Landlord, any person, firms or corporations designated by Landlord, and Tenant
as insured, and shall contain a clause that the insurer will not cancel or
change the insurance without first giving the Landlord twenty (20) days’ prior
notice.

 

2. Tenant’s Leasehold
Improvements and Trade Fixtures. Section 10.3 of the Lease is hereby
amended by:

 

(a)           in the third and fourth lines of the second paragraph,
deleting the phrase “provided Tenant shall not at such time be in default of
any terms or covenants of this Lease, and”; and

 

(b)           in the fourth line of the second paragraph, deleting the
word “further.”

 

3. Damage and Destruction.
The third paragraph of Section 15.1 of the Lease is hereby deleted in its
entirety and replaced with the following:

 

Tenant covenants and agrees
to (i) equip and furnish the Premises as Tenant reasonably deems necessary
to operate the business from the Premises and (ii) reopen for business in
the Premises within thirty (30) days after notice from Landlord that the
Premises are ready for re-occupancy.

 

4. Defined Terms.
Capitalized terms used herein but not defined herein shall have the meanings
ascribed to them in the Lease.

 

1

 

5. Governing Law.
This Amendment and the Lease shall be governed by and construed in accordance
with the laws of the State of Arizona.

 

6. Amendment. Neither
this Amendment nor any terms hereof may be amended, supplemented or modified
except by a written instrument executed by the parties hereto. This Amendment
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and assigns.

 

7. Full Force and Effect.
The Lease shall continue in full force and effect except as modified by this
Amendment, and the Lease is hereby ratified and confirmed by Landlord and
Tenant. In the event of a conflict between the terms and conditions of the
Lease and this Amendment, the terms of this Amendment shall prevail.

 

8. Counterparts. This
Amendment may be executed in counterparts, each of which shall be an original,
but all of which shall constitute one and the same Amendment.

 

[Remainder of page intentionally left blank;

signatures on following page.]

 

2

 

IN WITNESS WHEREOF, Landlord
and Tenant have caused this Amendment to be duly executed as of the day, month
and year first above written.

 

 

	
   

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARIZONA RADIATION
  ENTERPRISES, LLC, an Arizona limited liability company

  
	
  

  	
   

  	
  By:

  	
  /s/ Daniel E. Dosoretz

  
	
   

  	
   

  	
  Name:

  	
  Daniel E. Dosoretz, MD

  
	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARIZONA RADIATION THERAPY MANAGEMENT
  SERVICES, INC., an Arizona corporation

  
	
   

  	
   

  	
   

  
	
  

  	
   

  	
  By: 

  	
  

  /s/ Bryan J. Carey

  
	
   

  	
   

  	
  Name:

  	
  Bryan J. Carey

  
	
   

  	
   

  	
  Its:

  	
  EVP& CEO

  

 

3

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