Document:

exv10w4

 

Exhibit 10.4

     THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (the “Agreement”) is made
as of the date last executed below, between Aurora Medical Group, Inc., a Wisconsin non-stock
corporation (“Tenant”), having an address at 3000 West Montana, Milwaukee, Wisconsin and
PNC Bank, National Association (“Lender”), located at 10851 Mastin, Overland Park, Kansas,
66210.

RECITALS

	A.	 	Tenant is or will at Closing be the current tenant under that certain lease dated December
21, 2007, by and between Tenant, as original tenant, and NNN Eastern Wisconsin Medical
Portfolio, LLC, as original landlord, which has been amended, if at all, only by those
instruments described in Exhibit A attached hereto (the original lease, as amended, is
herein the “Lease”) affecting certain premises commonly known as
                                         (the “Premises”) located on the real property described in
Exhibit B attached hereto (the “Land”); and
	 
	B.	 	Lender is about to make a loan to NNN Eastern Wisconsin Medical Portfolio, LLC, who is, or
will become, the landlord under the Lease (hereinafter “Landlord”), which loan will be
evidenced by a promissory note to made by Landlord in favor of Lender and secured by the lien
of a mortgage or deed of trust (the “Mortgage”) encumbering the Land (the Mortgage and
all other documents securing the loan are herein collectively called the “Security
Documents”); and
	 
	C.	 	Lender and Tenant desire to confirm their agreements with respect to the Lease and the
Security Documents.

AGREEMENT

     NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained,
Lender and Tenant hereby agree and covenant as follows:

	1.	 	Subordination. The Lease and all right, title and interest in the Land created
thereby (including without limitation, any purchase options, rights of first refusal or
similar rights possessed by Tenant with respect to the Premises) are, shall be and shall at
all times remain and continue to be subject and subordinate in all respects to the liens,
terms, covenants, provisions and conditions of the Security Documents, and all renewals,
modifications, extensions, consolidations and replacements thereof.
	 
	2.	 	Non-Disturbance. So long as the Lease is in full force and effect and Tenant is not
in default under the Lease (beyond any period given Tenant to cure such default) or under this
Agreement:

	 	(a)	 	Tenant’s possession of the Premises and Tenant’s rights and privileges under
the Lease shall not be diminished or interfered with by Lender, and Tenant’s occupancy
of the Premises shall not be disturbed by Lender for any reason whatsoever during the
term of the Lease or any extensions or renewals thereof; and

 

 

	 	(b)	 	Lender will not name or join Tenant as a party defendant in any action or
proceeding to foreclose the Mortgage or to enforce any rights or remedies of Lender
under the Mortgage that would cut-off, destroy, terminate or extinguish the Lease or
Tenant’s interest and estate under the Lease unless the joinder is required by law in
order to perfect the trustee’s sale, foreclosure or other proceeding, and without in
any way diminishing or otherwise affecting the rights and privileges granted to, or
inuring to the benefit of, Tenant under this Agreement.
	 
	 	(c)	 	Tenant agrees that any option or right of first refusal contained in the Lease
shall not apply to Lender taking title pursuant to any bona fide deed in lieu of
foreclosure or purchase at a foreclosure sale.

	3.	 	Attornment.

	 	(a)	 	After notice is given by Lender that a default has occurred under the Mortgage
and that the rentals and all other payments to be made by Tenant under the Lease should
be paid to Lender, Tenant will pay to Lender, or in accordance with the directions of
Lender, all rentals and other monies due and to become due to Landlord under the Lease
or otherwise in respect to the Premises; such payments will be made regardless of any
right of set-off, counterclaim or other defense which Tenant may have against Landlord,
whether as tenant under the Lease or otherwise; and
	 
	 	(b)	 	In addition, if Lender (or its nominee or designee) shall succeed to the rights
of Landlord under the Lease through possession or foreclosure action, delivery of a
deed or otherwise, or another person purchases the Premises upon or following
foreclosure of the Mortgage, then at the request of Lender (or its nominee or designee)
or such purchaser (Lender, its nominees and designees, and such purchaser, each being a
“Successor-Landlord”), Tenant shall attorn to and recognize Successor-Landlord
as Tenant’s landlord under the Lease and shall promptly execute and deliver any
instrument that Successor-Landlord may reasonably request to evidence such attornment.
Upon such attornment, the Lease shall continue in full force and effect as, or as if it
were, a direct lease between Successor-Landlord and Tenant upon all terms, conditions
and covenants as are set forth in the Lease, except that Successor-Landlord shall not:

	 	i)	 	be liable for any previous act or omission of Landlord under
the Lease;
	 
	 	ii)	 	be subject to any off-set, defense or counterclaim which shall
have previously accrued to Tenant against Landlord;
	 
	 	iii)	 	be bound by any modification of the Lease (including any early
termination of the Lease not provided for in the Lease) or by any previous
prepayment of rent or additional rent for more than one month which Tenant
might have paid to Landlord, unless such modification or prepayment shall have
been expressly approved in writing by Lender; or

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	 	iv)	 	be liable for any security deposited under the Lease unless
such security has been physically delivered to Lender.

	4.	 	Lease Modifications. Tenant understands that the Landlord, without the prior written
consent of Lender, shall not: (a) amend or modify the Lease or any extensions or renewals
thereof; (b) terminate, cancel or tender a surrender of the Lease; (c) make a prepayment of
any rent or additional rent in excess of one (1) month; or (d) subordinate or permit the
subordination of the Lease to any lien subordinate to the Mortgage. Any such purported action
without such consent shall be void as against the holder of the Mortgage.
	 
	5.	 	Notice of Default; Opportunity to Cure.

	 	(a)	 	Any notice required or permitted to be given by Tenant to Landlord shall be
simultaneously given also to Lender, and any right of Tenant dependent upon notice
shall take effect only after such notice to Lender is so given. Performance by Lender
shall satisfy any conditions of the Lease requiring performance by Landlord, and Lender
shall have a reasonable time to complete such performance as provided in section (b)
below.
	 
	 	(b)	 	Without limiting the generality of the foregoing, Tenant shall promptly notify
Lender of any default, act or omission of Landlord which would give Tenant the right,
immediately or after the lapse of a period of time, to cancel or terminate the Lease or
to claim a partial or total eviction (a “Landlord Default”). In the event of a
Landlord Default, Tenant shall not exercise any rights available to it: (i) until it
has given written notice of such Landlord Default to Lender; and (ii) unless Lender has
failed, within a period of thirty (30) days beyond the time available to Landlord under
the Lease in which to cure the breach or default by Landlord, to cure or remedy the
Landlord Default or, if the same is not reasonably capable of being remedied by Lender
within such period, until a reasonable period for remedying such Landlord Default has
elapsed following the giving of such notice and following the time when Lender shall
have become entitled under the Security Documents to remedy the same (which reasonable
period shall in no event be less than the period to which Landlord would be entitled
under the Lease or otherwise, after similar notice, to effect such remedy); provided
that Lender shall with due diligence commence and prosecute a remedy for such Landlord
Default. If Lender cannot reasonably remedy a Landlord Default until after Lender
obtains possession of the Land, Tenant may not terminate or cancel the Lease or claim a
partial or total eviction by reason of such Landlord Default until the expiration of a
reasonable period necessary for the remedy after Lender institutes proceedings to
obtain possession of the Land through a foreclosure or otherwise, or for the
appointment of a receiver for the Land, provided that Lender institutes and prosecutes
such proceedings with due diligence. Lender shall have no obligation hereunder to
remedy any Landlord Default.

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	6.	 	Notice of Lien. To the extent that the Lease entitles Tenant to notice of the
existence of any mortgage and the identity of any lender, this Agreement shall constitute such
notice to Tenant with respect to the Mortgage.
	 
	7.	 	Remedies. Upon and after the occurrence of a default under the Mortgage, Lender
shall be entitled, but not obligated, to exercise the claims, rights, powers, privileges and
remedies of Landlord under the Lease and shall be further entitled to the benefits of, and to
receive and enforce performance of, all of the covenants to be performed by Tenant under the
Lease as though Lender were named therein as Landlord.

	8.	 	Limitation of Liability. Except as specifically provided in this Agreement, Lender
shall not, by virtue of this Agreement, the Mortgage or any other instrument to which Lender
may be a party, be or become subject to any liability or obligation to Tenant under the Lease
or otherwise. Notwithstanding any other provisions of this Agreement, Tenant shall have no
recourse against the Lender, any affiliate of Lender, any Successor Landlord, or any assets of
any of them, with respect to the failure of any such party to perform its obligations under
this Agreement or the Lease, other than any such party’s interest in the Land, provided that
in no event shall Lender’s rights and interests under the Security Documents be deemed to be
an interest in the Land.
	 
	9.	 	Priority.

	 	(a)	 	Tenant acknowledges and agrees that this Agreement supersedes (but only to the
extent inconsistent with) any provisions of the Lease relating to the priority or
subordination of the Lease and the interests or estates created thereby to the
Mortgage.
	 
	 	(b)	 	Tenant agrees to enter into a subordination, non-disturbance and attornment
agreement with any entity which shall succeed Lender with respect to the Land, or any
portion thereof, provided such agreement is substantially similar to this Agreement.

	10.	 	Notices. Any notice, consent, request or other communication required or permitted
to be given hereunder shall be in writing and shall be: (a) personally delivered; (b)
delivered by Federal Express or other comparable overnight delivery service; or (c)
transmitted by postage prepaid registered or certified mail, return receipt requested. All
such notices, consents, requests or other communications shall be addressed to Tenant or
Lender at the address for such party previously set forth in this Agreement, or to such other
address as Tenant or Lender shall in like manner designate in writing. All notices and other
communications shall be deemed to have been duly given on the first to occur of actual receipt
of the same or: (i) the date of delivery if personally delivered; (ii) one (1) business day
after depositing the same with the delivery service if by overnight delivery service; and
(iii) three (3) days following posting if transmitted by mail. Any party may change its
address for purposes hereof by notice to the other parties given in accordance with the
provisions hereof.

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	11.	 	General. This Agreement may not be modified or terminated orally. This Agreement
shall inure to the benefit of and be binding upon the parties hereto, their successors and
assigns. The term “Lender” shall mean the then holder of any interest in the
Mortgage. The term “Landlord” shall mean the then holder of the lessor’s interest in
the Lease. The term “Person” shall mean any individual, joint venture, corporation,
partnership, trust, unincorporated association or other entity. All references herein to the
Lease shall mean the Lease as modified by this Agreement and any amendments or modifications
to the Lease permitted under this Agreement. Any inconsistency between the Lease and the
provisions of this Agreement shall be resolved in favor of this Agreement.
	 
	12.	 	Termination of Agreement. This Agreement shall automatically terminate upon the
release or termination of the lien of the Security Documents (and all renewals, modifications,
extensions, consolidations and replacements thereof) upon the Land.
	 
	13.	 	Waivers. Both Tenant and Lender hereby irrevocably waive all right to trial by jury
in any action, proceeding or counterclaim arising out of or relating to this Agreement.
	 
	14.	 	Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State in which the Land is located. Venue shall be in the Wisconsin circuit
court for Milwaukee County.
	 
	15.	 	Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original and all of which when taken together shall constitute
one and the same Agreement.

     IN WITNESS WHEREOF, the parties hereto have executed this Subordination, Non-Disturbance and
Attornment Agreement to be effective as of the day and year first stated above.

	 	 	 	 	 	 	 
	 	 	“LENDER”	 	 
	 
	 	 	 	 	 	 
	 	 	PNC BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 
	Dated:                     , 20

	 	By:	 	 	 	 
	 

	 	 	 	 

Jeannette Butler, Vice-President
	 	 
	 
	 	 	 	 	 	 
	 	 	“TENANT”	 	 
	 	 	AURORA MEDICAL GROUP, INC.	 	 
	 	 	a Wisconsin non-stock corporation	 	 
	 
	 	 	 	 	 	 
	Dated:  December 21, 2007

	 	By:  	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Printed Name:  Donald J. Nestor	 	 
	 	 	Title:  Secretary/Treasurer	 	 

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	AGREED AND CONSENTED TO:
	 	 
	 
	 	 
	“LANDLORD”
	 	 
	 
	 	 
	
 

	 	 
	a
	 	 
	 
	 	 

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	Printed

	 	Name:	 	 	 	 
	Title:

	 	  
	 	 

	 	 
	 	 	 	 	 

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ACKNOWLEDGMENTS

[use local form of acknowledgment]

	 	 	 	 	 	 
	STATE OF KANSAS

	 	 	)	 	 
	 
	 	 	)	 	ss.
	COUNTY OF JOHNSON

	 	 	)	 	 

     On this, the                 day of                     , 20     , before me, the undersigned officer, personally
appeared Jeannette Butler, who acknowledged herself to be the Vice President of PNC Bank National
Association, a national banking association, and that she as such Vice President being authorized
to do so, executed the foregoing instrument for the purposed therein contained by signing the name
of the corporation by herself as Vice President.

     IN WITNESS WHEREOF, I hereunder set
hand and official seal.

	 	 	 	 	 
	 

	 	
 
Notary Public	 	 

 

 

	 	 	 	 	 	 
	STATE OF WISCONSIN

	 	 	)	 	 
	 

	 	 	)	 	ss.
	COUNTY OF MILWAUKEE

	 	 	)	 	 

     On this, the                 day of December, 2007, before me, the undersigned officer, personally
appeared Donald J. Nestor, who acknowledged him/herself to be the Secretary/Treasurer of Aurora
Medical Group, Inc., a Wisconsin non-stock corporation, and that s/he as such Secretary/Treasurer
being authorized to do so, executed the foregoing instrument for the purposed therein contained by
signing the name of the corporation by him/herself as Secretary/Treasurer.

     IN WITNESS WHEREOF, I hereunder set hand and official seal.

	 	 	 	 	 
	 

	 	 

Ellen E. Bladorn, Notary Public

My commission expires February 14, 2010
	 	 

 

 

	 	 	 	 	 	 
	STATE OF                     

	 	 	)	 	 
	 

	 	 	)	 	ss.
	COUNTY OF                     

	 	 	)	 	 

     On this                 day of                     , 20_, before me, the undersigned officer, personally appeared
                    , who acknowledged him/herself to be the                     of
                    , a
                                        , and that s/he as such                      being authorized to do so, executed
the foregoing instrument for the purposed therein contained by signing the name of the corporation
by him/herself as                                         .

     IN WITNESS WHEREOF, I hereunder set hand and official seal.

	 	 	 	 	 
	 

	 	 

Notary Public
	 	 

 

 

EXHIBIT A

Description of Lease Amendments

 

 

EXHIBIT B

Legal Description

     The real property situated in the County of                     , State of                     , described as
follows:exv10w5

 

Exhibit 10.5

Loan No.                                         

ESTOPPEL CERTIFICATE

     The undersigned hereby certifies to PNC Bank, National Association, and its affiliates and
their respective successors and assigns (“Lender”) that, as of December 21, 2007:

	1.	 	Aurora Medical Group, Inc., a Wisconsin non-stock corporation (“Tenant”) is or will
soon be the tenant, and NNN Eastern Wisconsin Medical Portfolio, LLC (“Landlord”) is
the current landlord, on the premises commonly known
as                                         (the “Premises”).
	 
	2.	 	Tenant is renting the Premises from Landlord pursuant to lease agreement titled Lease, dated
December 21, 2007 (the “Original Lease”). The Original Lease has not been modified or
amended, except as
attached:
                                                                                            
 

 

 

 

[tenant may attach
copies of all lease modifications/amendments to this estoppel in lieu of detailing each
modification/amendment]. The Original Lease, as amended or modified, is hereinafter
referred to as the “Lease.”
	 
	3.	 	Tenant owns no options to extend the term of the Lease, options to purchase the Premises,
rights of first refusal or other rights to acquire an interest in the Premises except as set
forth in the Lease.
	 
	4.	 	The date upon which the term of the Lease actually commenced was December 21, 2007. The
Lease is in full force and effect and is the only agreement between Landlord and Tenant
relating to occupancy of the Premises. The earliest date upon which the Lease expires under
the Lease December 31, 2022.
	 
	5.	 	Tenant has accepted possession of and is currently open for business in the Premises, and
acknowledges that Landlord has completed all of the improvements required to be made by it, to
Tenant’s satisfaction. Tenant acknowledges receipt of full payment for any tenant allowance
or similar up-front sum to be paid by Landlord. All conditions to Tenant’s obligation to pay
all rents and other payments required under the Lease have been satisfied.
	 
	6.	 	No one other than Landlord, Tenant, Tenant’s employees, and other occupants or subtenants
permitted under the Lease occupies or has any right to occupy, through Tenant, any part of the
Premises.
	 
	7.	 	No rent or other payments have been paid, and Tenant agrees that no rent or other payments
will in the future be paid, more than one (1) month in advance of their due date.
	 
	8.	 	As of the date hereof, the minimum rent obligation under the Lease is $                     per month
and the monthly billing for impounds of additional rent for common area

 

 

	 	 	expenses, insurance, real estate taxes and the like is $0.00 per month (Tenant is to pay for
all such expenses under the terms of the Lease).. Landlord currently holds Tenant no
security deposits.
	 
	9.	 	There is no existing default or claimed default by either Landlord or Tenant under the Lease.
No event has occurred which, with the passage of time or the giving of notice, or both, would
constitute a default by either Landlord or Tenant under the Lease. Tenant has no existing
defenses or offsets against Landlord’s enforcement of the Lease.
	 
	10.	 	No actions, voluntary or otherwise, are pending against Tenant or any of its general partners
under any bankruptcy, receivership, insolvency or similar laws of the United States or any
state thereof.
	 
	11.	 	To the best of Tenant’s knowledge, its use, maintenance and operation of the Premises
complies with, and will at all times comply with, all applicable federal, state, county or
local statutes, laws, rules and regulations of any governmental authorities, including those
relating to environmental, health or safety matters. Tenant does not and will not engage in
any activity which would involve the use of the Premises for the storage, generation, use,
treatment, transportation or disposal of any chemical, material or substance which is
regulated as toxic or hazardous or exposure to which is prohibited, limited or regulated by
any federal, state, county, regional, local or other governmental authority or which, even if
not so regulated, may or could pose a hazard to the health and safety of the other tenants and
occupants of Landlord’s property, except in quantities common for Tenant’s business and in
compliance with applicable law.
	 
	12.	 	Tenant agrees to give to Lender, by certified mail, or by Federal Express or other comparable
overnight delivery service, addressed to:

PNC Bank, National Association

c/o Midland Loan Services, Inc.

10851 Mastin

Overland Park, Kansas 66210

or such other address as Lender may provide, a copy of any notice of default served upon
Landlord under the Lease. Tenant agrees that if Landlord fails to cure such default within
the time provided for in the Lease, then Lender shall have an additional thirty (30) days
within which to cure such default, or if such default cannot be cured within that time, then
such additional time as may be necessary to cure such default if within such thirty (30)
days Lender has commenced and is diligently pursuing the remedies necessary to cure such
default (including, without limitation commencement of foreclosure proceedings), in which
event and while such remedies are being diligently pursued by Lender, Tenant shall not
declare a default under the Lease or exercise any of its rights and remedies (including any
rights of self-help except in an emergency situation) under the Lease nor shall the Lease be
terminated.

	13.	 	Tenant agrees to pay, from and after receipt of notice from Lender that owner of the Premises
has defaulted under Lender’s loan, all rents and other sums owing under the

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Lease directly to Lender at the address set forth above or at such other address as Lender
may specify.

The undersigned Tenant acknowledges that Lender will rely on this Estoppel Certificate in making a
loan to Landlord.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	“TENANT”	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	AURORA MEDICAL GROUP, INC.	 	 
	 	 	 	 	a Wisconsin non-stock corporation	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:  December                     , 2007

	 	 	 	By:  	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	Print Name:  Donald J. Nestor	 	 
	 	 	 	 	Title:  Secretary/Treasurer	 	 
	 
	 	 	 	 	 	 	 	 
	Agreed:	 	 	 	“LANDLORD”	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	NNN EASTERN WISCONSIN MEDICAL	 	 
	 	 	 	 	PORTFOLIO, LLC	 	 
	 	 	 	 	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:                                 , 20           

	 	 	 	By:  	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Print Name: 
	 	   
	 	 
	 

	 	 	 	Title:  	 	 	 	 
	 

	 	 	 	 	 	 	 	 

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