Document:

Unassociated Document

EXHIBIT 10.29

 

FORM OF

                                                                                                                                          

LEASE

BETWEEN

ARC CVCSTIN001, LLC

a Delaware limited liability company

AS LANDLORD

AND

Hook-SupeRx, L.L.C.

a Delaware limited liability company

AS TENANT

DATED November ___, 2009

  

 

  

 

Table of Contents

	  	
Page

	  	  
	
PART I

	
3

	
1.  Date of Lease

	
3

	
2.  Landlord name, and state of and type of entity

	
3

	
3.  Landlord business address

	
3

	
4.  Landlord notice address

	
3

	
5.  Tenant name, and state of and type of entity

	
3

	
6.  Tenant business address

	
3

	
7.  Tenant notice address

	
3

	
8.  Guarantor

	
3

	
9.  Premises

	
3

	
10.  Building

	
4

	
11.  Initial Term

	
4

	
12.  Renewal Options (See Article 2 of Part II)

	
4

	
13.  Required Advance Notice of Exercise of Renewal Options

	
4

	
14.  Fixed Rent (See Article 4 of Part II)

	
5

	
15.  Required Number of Parking Spaces

	
5

	
16.  Threshold Repair Amount

	
5

	
17.  Lender

	
5

	
18.  Lease Default Rate

	
6

	
19.  Permitted Encumbrances

	
6

	
PART II

	
7

	
1. PREMISES

	
7

	
2. RENEWAL OPTIONS

	
7

	
3. USE

	
7

	
4. FIXED RENT

	
8

	
5. REPAIRS AND MAINTENANCE OF THE BUILDING

	
9

	
6. COMPLIANCE WITH LAWS

	
10

	
7. ACCESS TO PREMISES

	
11

	
8. WAIVER OF SUBROGATION

	
11

	
9. FIRE OR OTHER CASUALTY

	
11

	
10. CONDEMNATION

	
12

	
11. ASSIGNMENT AND SUBLETTING

	
13

	
12. ALTERATIONS

	
13

	
13. SIGNS

	
14

	
14. PYLON/MONUMENT SIGN

	
14

	
15. SURRENDER

	
14

	
16. SUBORDINATION OF LEASE

	
15

	
17. UTILITIES

	
16

	
18. TENANT DEFAULT

	
16

	
19. LANDLORD DEFAULT

	
19

	
20. RENT PAYMENTS

	
19

	
21. HOLDOVER

	
21

	
22. NOTICES

	
21

 

  

 

  

Table of Contents

(continued)

	  	
Page

	  	  
	
23. SATELLITE COMMUNICATIONS DISH AND EQUIPMENT

	
21

	
24. EXCLUSIVE

	
21

	
25. MAINTENANCE OF PARKING AND OTHER EXTERIOR AREAS

	
22

	
26. TAXES

	
22

	
27. INSURANCE

	
23

	
28. LANDLORD'S TITLE

	
24

	
29. QUIET ENJOYMENT

	
24

	
30. NO BROKERS

	
24

	
31. TENANT TO COMPLY WITH MATTERS OF RECORD

	
24

	
32. TRANSFER OF TITLE

	
25

	
33. NO CONTINUOUS OPERATION

	
26

	
34. HAZARDOUS MATERIALS

	
26

	
35. TENANT'S INDEMNITY

	
31

	
36. LANDLORD'S INDEMNITY

	
32

	
37. ESTOPPEL CERTIFICATE

	
32

	
38. NOTICE OF LEASE

	
32

	
39. NET LEASE; NON-TERMINABILITY

	
33

	
40. MISCELLANEOUS

	
33

	
41. COUNTERPARTS

	
36

	
42. EXCULPATION OF LANDLORD

	
36

	
SCHEDULE 1

	
40

	
SCHEDULE 2  Fixed Rent for Fair Market Rental Value-based Extension Periods

	
41

	
SCHEDULE 3  CERTIFICATE AND AGREEMENT

	
42

	
GUARANTOR’S CONSENT

	
45

	
EXHIBIT A  SITE PLAN

	
46

	
EXHIBIT B  PREMISES LEGAL DESCRIPTION

	
47

	
EXHIBIT C  PERMITTED ENCUMBRANCES

	
48

	
EXHIBIT D  EXHIBIT D AMOUNT

	
49

	
EXHIBIT E  FORM OF SNDA

	
50

	
EXHIBIT F  ENVIRONMENTAL REPORTS

	
51

	
EXHIBIT T-1  NOTICE OF TRANSFER OF FEE INTEREST

	
52

	
EXHIBIT T-2  NOTICE OF TRANSFER OF EQUITY INTERESTS IN LANDLORD

	
55

 

  

ii

  

 

LEASE

This Lease is made on the Date of Lease specified below, between the Landlord and the Tenant specified below.

PART I

 

	
1.

	Date of Lease  November ___, 2009
	 	 	 	 
	
2.

	
Landlord name, and state of and type of entity: ARC CVCSTIN001, LLC, a

	  	  	  	
Delaware limited liability company

	  	  	  	
FID #_______________

	  	  	  	  
	
3.

	
Landlord business address:

	  	
c/o American Realty Capital II, LLC

	  	  	  	
405 Park Avenue, 15th floor

	  	  	  	
New York, NY  10022

	  	  	  	
Attn:  William M. Kahane

	  	  	  	
Jesse C. Galloway

	  	  	  	
Fax:  212.421.5799

	  	  	  	  
	
4.

	
Landlord notice address:

	  	
Same as business address.

	  	  	  	  
	
5.

	
Tenant name, and state of and type of entity:

	  	
Hook-SupeRx, L.L.C., a Delaware limited liability company

	  	  	  	  
	
6.

	
Tenant business address:

	  	
c/o CVS Pharmacy, Inc.

	  	  	  	
One CVS Drive

	  	  	  	
Woonsocket, RI 02895

	  	  	  	  
	
7.

	
Tenant notice address:

	  	
c/o CVS Pharmacy, Inc.

	  	  	  	
One CVS Drive

	  	  	  	
Woonsocket, RI 02895

	  	  	  	
Attn: Property Administration

	  	  	  	
Department, Store No. 06910

	  	  	  	  
	
8.

	
Guarantor:

	  	
CVS Caremark Corporation

	  	  	  	
a Delaware Corporation

	  	  	  	
One CVS Drive

	  	  	  	
Woonsocket, RI  02895

9.             Premises:          that certain lot or parcel of land lying in Chesterton, Porter County, Indiana, which is outlined in blue on Exhibit A and described in Exhibit B, including the Building described in Section 10 below (which Building is outlined in red on Exhibit A), and including all improvements situated on said property, and all rights, easements, rights of way, and other appurtenances thereto including the rights to use the driveways and curb cuts cross hatched on Exhibit A.

 

  

3

  

 

	
10.

	
Building:

	  	
approximate ground floor total square footage: __________ square feet

	 	 	 	 
	  	  	  	
mezzanine square footage: N/A

	  	  	  	  
	  	  	  	
basement square footage: N/A

	  	  	  	  
	  	  	  	
upper floors: N/A

	  	  	  	  
	  	  	  	
ground floor is outlined in red on Exhibit A.

11.           Initial Term:  shall commence on the date hereof (“Date of Rent Commencement”), and shall expire twenty-five (25) Lease Years thereafter; all subject to all terms and conditions of this Lease.  As used in this Lease, “Term” shall include the Initial Term and any extension thereof pursuant to Article 2 of Part II, and “Lease Year” shall be defined as follows:  the first Lease Year shall be the period starting on the Date of Rent Commencement and ending twelve (12) months thereafter, plus any days necessary to have the Lease Year end at the end of a calendar month.  Each Lease Year thereafter shall be the twelve (12) month period starting on the day after the expiration of the prior Lease Year.  For example, if the Date of Rent Commencement were November 18, 2009 (or any other day in the month other than the first day of the month), then the first Lease Year would be the period from November 18, 2009, through November 30, 2010, and each subsequent Lease Year would commence on November 1 and would end on November 30.

 

12.           Renewal Options (See Article 2 of Part II):  Tenant shall have the following renewal options (herein “Renewal Options”) to extend the Initial Term of this Lease for up to a total of ten (10) extension periods (herein “Extension Periods”) on and subject to the following terms and conditions and subject to the terms and conditions of Article 2 of Part II of this Lease:

 

	
  

	
(a)

	
Tenant shall have Renewal Options for the number of fixed rate Extension Periods set forth on Schedule 1 hereto, with each such Extension Period to be for a term of five (5) years.

	
  

	
(b)

	
In addition to the fixed rate Extension Periods described in clause (a) of this Section 12, Tenant shall have Renewal Options for eight (8) additional Fair Market Rental Value based Extension Periods of five (5) years each.

	
  

	
(c)

	
In no event shall Tenant be entitled to Renewal Options for more than a total of ten (10) Extension Periods.  Each Extension Period (and the availability thereof) is subject to all of the terms and conditions of this Lease governing Renewal Options and Extension Periods.

13.           Required Advance Notice of Exercise of Renewal Options:  Not more than 360 days and not less than 180 days prior to the expiration of the then-current term.

 

  

4

  

 

14.           Fixed Rent (See Article 4 of Part II):

 

	  	 	
ANNUAL

	 	 	
MONTHLY

	 
	
PERIOD

	 	
FIXED RENT

	 	 	
INSTALLMENTS

	 
	  	 	 	 	 	 	 
	
Date of Rent Commencement to end of first 5 Lease Years

	 	$	486,370.68	 	 	$	40,530.89	 
	  	 	 	 	 	 	 	 	 
	
Lease Years 6 to 10

	 	$	510,689.16	 	 	$	42,557.43	 
	  	 	 	 	 	 	 	 	 
	
Lease Years 11 to 15

	 	$	536,223.72	 	 	$	44,685.31	 
	  	 	 	 	 	 	 	 	 
	
Lease Years 16 to 20

	 	$	563,034.84	 	 	$	46,919.57	 
	  	 	 	 	 	 	 	 	 
	
Lease Years 21 to 23

	 	$	591,186.60	 	 	$	49,265.55	 
	  	 	 	 	 	 	 	 	 
	
Lease Years 24 and 25

	 	$	0	 	 	$	0	 
	  	 	 	 	 	 	 	 	 
	
First fixed rate extension period

	 	$	620,745.96	 	 	$	51,728.83	 
	  	 	 	 	 	 	 	 	 
	
Second fixed rate extension period

	 	$	651,783.24	 	 	$	54,315.27	 

Fair market rental value based extension periods  -   REFER TO SCHEDULE 2 ATTACHED

15.           Required Number of Parking Spaces:  ____, for standard size automobiles.  (See Article 10 of Part II)

 

16.           Threshold Repair Amount:  shall mean, at any time, an amount equal to the product of (i) Three Hundred Fifty Thousand Dollars ($350,000) times (ii) the CPI Factor for the then-current calendar year.  As used herein the CPI Factor shall mean for any calendar year during the Term a fraction, the numerator of which is the CPI as of the first day of such calendar year and the denominator of which is the CPI as of January 1, 2009; provided, that in no event shall the CPI Factor be less than one (1).  The term "CPI" means the Consumer Price Index-U.S. City Averages for all Urban Consumers - All Items (1982-84=100), of the United States Bureau of Labor Statistics.  If the CPI shall become unavailable to the public because publication is discontinued, or otherwise, Landlord will substitute therefor a comparable index based upon changes in the cost of living or purchasing power of the consumer dollar published by any other governmental agency or, if no such index shall be available then a comparable index published by a major bank or other financial institution

 

17.           Lender:  Any person that makes a loan or loans (such loan or loans collectively referred to herein as the "Loan") to Landlord each of which is secured by a mortgage, deed of trust or similar instrument with respect to the Premises and of which Tenant is advised in writing by Landlord.

 

  

5

  

 

18.           Lease Default Rate:  the lower of (a) five percent (5%) per annum above the greater of (i) the Prime Rate as in effect from time to time, or (ii) the Interest Rate then in effect, or (b) the highest rate permitted to be contracted for under applicable Law.  "Prime Rate" means the current rate of interest per annum announced from time to time by Citibank N.A. (or its successor) as its prime rate in New York, New York, or, if Citibank N.A. shall cease to announce such rate, then the current rate published as the prime rate in The Wall Street Journal.  "Interest Rate" means the highest rate of interest charged by Lender under its Loan to Landlord.  It is the intention of the parties hereto to conform strictly to the applicable usury Laws, and whenever any provision herein provides for payment by Tenant to Landlord of interest at a rate in excess of the highest legal rate permitted to be charged, such rate herein provided to be paid shall be deemed reduced to such highest legal rate.

 

19.           Permitted Encumbrances:  shall mean taxes (as defined in Article 26 of Part II), any matters consented to by Landlord, Tenant and Lender in writing, those covenants, restrictions, reservations, liens, conditions, encroachments, easements, encumbrances and other matters of title that affect the Premises as of the Lease Commencement Date (including, without limitation, those listed on Exhibit C hereto) or which arise due to the acts or omissions of Tenant, or due to the acts or omissions of Landlord with Tenant's consent, after the Lease Commencement Date.

 

20.  All exhibits to this Lease are incorporated herein by this reference.

LIST OF SCHEDULES AND EXHIBITS:

	
Schedule 1 -

	
Fixed Rate Extension Periods

	  	  
	
Schedule 2 -

	
Fair Market Rental Value Extension Periods

	  	  
	
Schedule 3 -

	
Certificate and Agreement

	  	  
	
Exhibit A -

	
Site Plan:

	  	
Building = red

	  	
Premises property line = blue

	  	  
	
Exhibit B -

	
Premises Legal Description

	  	  
	
Exhibit C -

	
Title Matters

	  	  
	
Exhibit D -

	
Exhibit D Amount

	  	  
	
Exhibit E -

	
Form of SNDA

	  	  
	
Exhibit F -

	
Environmental Reports

	  	  
	
Exhibit T-1

	
Notice of Transfer of Fee Interest

	  	  
	
Exhibit T-2

	
Notice of Transfer of Equity Interests in Landlord

  

6

  

PART II

1.  PREMISES

 

Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, for the Term and on the conditions herein provided, the Premises described in Section 9 of Part I hereof.

2.  RENEWAL OPTIONS

 

Tenant has the Renewal Options and may extend the Term of this Lease for each of the Extension Periods described in Section 12 of Part I hereof.  Each such Extension Period shall be subject to and upon all of the terms and conditions set forth in this Lease with the Fixed Rent in the amounts specified in Section 14 of Part I hereto for the respective fixed rate Extension Periods. Fixed Rent for each Extension Period described in Section 12(b) of Part I hereof shall be equal to one hundred percent (100%) of such Fair Market Rental Value as described on Schedule 2 to this Lease.  Tenant may exercise a Renewal Option and commence an Extension Period by giving Landlord written notice of each such election not later than the Required Advance Notice of Exercise of Renewal Options (as defined in Section 13 of Part I).  If Tenant fails to timely exercise any Renewal Option, then all subsequent Renewal Options shall automatically expire and be null and void.

3.  USE

 

(a)           Tenant may use the Premises as a retail drug store or for any other lawful purpose so long as such other lawful purpose would not (i) have an adverse effect on the value of the Premises (other than to a de minimis extent), (ii) increase (other than to a de minimis extent) (when compared to a retail drug store) the likelihood that Tenant, Landlord or Landlord's Lender would incur liability under any Environmental Laws (as hereinafter defined), or (iii) result in or give rise to any environmental deterioration or degradation of the Premises (other than to a de minimis extent).  In no event shall the Premises be used for any purpose which shall violate any of the provisions of any Permitted Encumbrance or any covenants, restrictions or agreements hereafter created by or consented to by Tenant applicable to the Premises; provided, that this sentence shall not apply with respect to any Permitted Encumbrance in effect on the Lease Commencement Date so long as (i) the title insurance policy obtained by Landlord in connection with its purchase of the Premises (and the simultaneously issued Lender’s policy of title insurance) contains affirmative insurance against any loss arising due to a violation of such Permitted Encumbrance or if such affirmative title insurance is subsequently provided to Landlord and Lender at Tenant's cost with respect to such Permitted Encumbrance on terms and conditions satisfactory to Landlord and Lender in their sole discretion, and (ii) violation of such Permitted Encumbrance could not result in Landlord or Lender suffering (A) any criminal liability, penalty or sanction, (B) any civil liability, penalty or sanction for which Tenant has not made provisions reasonably acceptable to Landlord and Lender, or (C) defeasance or loss of priority of its interest in the Premises; provided, further, however, that TENANT SHALL NONETHELESS BE OBLIGATED TO INDEMNIFY, DEFEND AND HOLD HARMLESS LANDLORD, LENDER  AND ALL OTHER INDEMNIFIED PARTIES, FROM ANY AND ALL LOSSES, LIABILITIES, PENALTIES, ACTIONS, SUITS, CLAIMS, DEMANDS, JUDGMENTS, DAMAGES, COSTS OR EXPENSES SUFFERED AS A RESULT OF THE VIOLATION OF ANY SUCH PERMITTED ENCUMBRANCE. Tenant agrees that with respect to the Permitted Encumbrances and any covenants, restrictions or agreements hereafter created by or consented to by Tenant, Tenant shall observe, perform and comply with and carry out the provisions thereof required therein to be observed and performed by Landlord.

 

  

7

  

 

(b)           Without limiting any rights of Tenant under this Lease, Tenant, subject to Laws (as defined in Article 6), may: keep the Premises open for business on Sundays and/or holidays; and operate on an “extended-hours basis” (defined as being open for business in excess of 110 hours per week).

4.  FIXED RENT

 

(a)           Commencing as of the Date of Rent Commencement, Tenant shall pay to Landlord, at the business address of Landlord specified in Section 3 of Part I hereof, or at such other address as Landlord shall, from time to time, designate by notice to Tenant, the Fixed Rent set forth in Section 14 of Part I hereof, payable to Landlord no later than the fifth (5th) day of each month in advance, without demand or set-off, except as otherwise expressly provided in this Lease.

(b)           Fixed Rent and all other charges due under this Lease shall commence immediately on the date hereof, subject to all of the other terms of this Lease.  If the Date of Rent Commencement shall be on any day other than the first day of a calendar month, Fixed Rent and other charges for such month shall be pro rated on a per diem basis.

(c)           If any installment of Fixed Rent is not paid on the respective Due Date, Tenant shall pay Landlord interest on such overdue payment at the Lease Default Rate, accruing from the Due Date of such payment until the same is paid.  All Fixed Rent and Additional Rent shall be payable in U.S. Dollars.

 

(d)           Commencing as of the Date of Rent Commencement, all taxes, costs, expenses, and other amounts which Tenant is required to pay pursuant to this Lease (other than Fixed Rent), together with every fine, penalty, interest and cost which may be added for non-payment or late payment thereof, shall constitute additional rent hereunder (“Additional Rent”).  All Additional Rent shall be paid directly by Tenant to the party to whom such Additional Rent is due.  If Tenant shall fail to pay any such Additional Rent or any other sum due hereunder when the same shall become due (and if no due date is specified, then such amounts shall be payable on demand), Landlord shall have all rights, powers and remedies with respect thereto as are provided herein or by Law in the case of non-payment of any Fixed Rent and shall, except as expressly provided herein, have the right, not sooner than ten (10) days after notice to Tenant (except in the event of an emergency, as reasonably determined by Landlord, in which case prior notice shall not be necessary) of its intent to do so, to pay the same on behalf of Tenant, and Tenant shall repay such amounts to Landlord on demand.  Tenant shall pay to Landlord interest at the Lease Default Rate on all overdue Additional Rent and other sums due hereunder, in each case paid by Landlord or Lender on behalf of Tenant, from the date of payment by Landlord or Lender until repaid by Tenant.

 

  

8

  

 

(e)           Fixed Rent for any fixed rate Extension Period described in Section 12(a) of Part I of this Lease shall be paid in the amounts set forth in Section 14 of Part I hereof, and Fixed Rent for Fair Market Value based Extension Periods shall be as set forth in Article 2 of Part II hereof and in Schedule 2 hereto.

5.  REPAIRS AND MAINTENANCE OF THE BUILDING

 

(a)           Tenant shall maintain and repair, as necessary, and keep in good condition: the Premises and the Building, including the roof, structure, interior and exterior, and fixtures and equipment therein and thereon; parking lot; landscaping; HVAC equipment; broken glass; storefront; and all other aspects of the Premises and Building whatsoever. The foregoing notwithstanding, Tenant’s obligations pursuant to this subdivision (a) shall exclude damage and injury arising under the provisions of Article 9 or Article 10 hereof.

(b)           All of the foregoing notwithstanding, Tenant shall not be obligated to perform any maintenance, repair or replacement, the necessity of which shall have arisen solely due to the gross negligence or willful misconduct of Landlord, or of Landlord’s employees or agents; and in such case, the Landlord shall be responsible for same, at its sole cost. This subdivision (b) shall apply only in any instance to which Article 8 shall not apply.

(c)           If Landlord shall fail to make any of the repairs required to be made by Landlord under Article 5(b) within thirty (30) days after receipt of written notice from Tenant of the need therefor, and confirmation by both parties and the insurance providers that such repairs are not covered by insurance and that Article 8 does not apply, Tenant may make said repairs on Landlord’s behalf and charge Landlord for the reasonable cost thereof; provided, however, Tenant shall have no right to terminate this Lease as a result of Landlord’s failure to make any repairs required to be made under Article 5(b). Provided that Landlord has commenced to repair within said thirty (30) days, and thereafter is diligently prosecuting same to completion, said thirty (30) day period shall be extended, where, due to the nature of a repair, it cannot reasonably be completed within thirty (30) days.  If, in an emergency, in Tenant's reasonable opinion, any such repairs are immediately necessary, then, no prior thirty (30) days’ notice shall be required, but Tenant shall give Landlord whatever notice is reasonable in the circumstances and may make said repairs on Landlord’s behalf and charge Landlord for the reasonable cost thereof only if such repairs are not covered by insurance and Article 8 does not apply.

(d)           If Tenant shall fail to make any of the repairs required to be made by Tenant under this Article within thirty (30) days after receipt of written notice from Landlord of the need therefor, Landlord, in addition to any other rights it may have hereunder, may make said repairs on Tenant’s behalf and charge Tenant for the reasonable cost thereof. Provided that Tenant has commenced to repair within said thirty (30) days, and thereafter is diligently prosecuting same to completion, said thirty (30) day period shall be extended, where, due to the nature of a repair, it cannot reasonably be completed within thirty (30) days. If, in an emergency, in Landlord's reasonable opinion, any such repairs are immediately necessary, then, no prior thirty (30) days' notice shall be required, but Landlord shall give Tenant whatever notice is reasonable in the circumstances and may make said repairs on Tenant’s behalf and charge Tenant for the reasonable cost thereof.  In either event, Tenant shall pay Landlord such reasonable cost within thirty (30) days after Tenant receives Landlord's invoice therefor with supporting documentation.

 

  

9

  

 

6.  COMPLIANCE WITH LAWS

 

Tenant shall comply with all laws, statutes, ordinances, codes and regulations (collectively, "Laws") relating to the Building and the Premises. Tenant acknowledges that Tenant is fully familiar with the physical condition of the Premises and that Landlord makes no representation or warranty express or implied, with respect to same.

EXCEPT FOR LANDLORD'S COVENANT OF QUIET ENJOYMENT SET FORTH IN ARTICLE 29 OF THIS PART II, LANDLORD MAKES NO AND EXPRESSLY HEREBY DENIES ANY REPRESENTATIONS OR WARRANTIES REGARDING THE CONDITION OR SUITABILITY OF, OR TITLE TO, THE PREMISES TO THE EXTENT PERMITTED BY LAWS, AND TENANT WAIVES ANY RIGHT OR REMEDY OTHERWISE ACCRUING TO TENANT ON ACCOUNT OF THE CONDITION OR SUITABILITY OF THE PREMISES, OR (EXCEPT WITH RESPECT TO LANDLORD'S WARRANTY SET FORTH IN ARTICLE 29 OF THIS PART II) TITLE TO THE PREMISES, AND TENANT AGREES THAT IT TAKES THE PREMISES “AS IS,” WITHOUT ANY SUCH REPRESENTATION OR WARRANTY, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES.  Tenant has examined the Premises and title to the Premises, and has found all of the same satisfactory for all purposes.

  

10

  

 

7.  ACCESS TO PREMISES

 

Landlord and Landlord’s lenders shall have the right to enter the Premises and/or the Building upon reasonable prior notice to Tenant as long as such entrance does not materially interfere with the business operations of Tenant on the Premises for the purpose of inspecting the condition of the Building and/or the Premises and for verifying compliance by Tenant with this Lease and all Laws, to employ experts and/or consultants in connection therewith and/or to advise Landlord with respect to Tenant’s activities in the Building and/or the Premises.  In addition, upon reasonable notice to Tenant, and during Tenant's business hours, Landlord may show the Premises to purchasers and potential purchasers, and to mortgagees and potential mortgagees.  Upon reasonable notice to Tenant, during the last six (6) months of the then-current term, unless Tenant shall have exercised any Renewal Option, Landlord also may show the Building and the Premises to persons wishing to rent the same.

8.  WAIVER OF SUBROGATION

 

Notwithstanding anything in this Lease to the contrary, Landlord and Tenant each waives, and shall cause its insurance carrier to waive, any right of recovery against the other for any loss of or damage to the Premises or to any property which loss or damage is (or, if the insurance required hereunder had been carried, would have been) covered by insurance.

9.  FIRE OR OTHER CASUALTY

 

If, at any time during the Term, the Building or any other improvements located on the Premises shall be damaged in whole or in part by fire, the elements or other casualty, Tenant shall promptly notify Landlord thereof.  Tenant, at Tenant’s sole cost, as speedily as circumstances permit, shall repair said damage and restore the Building and any other improvements located on the Premises to the same condition which existed immediately prior to the occurrence of such damage. Except that the Term shall be tolled by a period of time equal to the time between the date of the casualty and the date on which Tenant completes repair and restoration of the Building, all other terms and conditions of the Lease shall remain in full force and effect during the repair and restoration of the Building and such other improvements.  During the restoration, Tenant may operate its business out of a temporary structure such as a trailer, subject to compliance with Laws.  Fixed Rent, Taxes, utilities, additional rent and any other charges due under this Lease shall not abate during any period of repair or restoration.

 

The foregoing notwithstanding, if the Building is totally destroyed (or a material portion of the Building, which shall mean more than 50% of the then fair market value of the Building) during the last two (2) years of the initial term or during the last two (2) years of any extension period, then, unless Tenant already has exercised its next remaining extension period, Tenant shall not be obligated to repair or restore the Premises and Tenant may terminate this Lease upon no fewer than forty-five (45) days’ prior written notice to Landlord, in which event this Lease shall terminate on the date specified in such notice. If Tenant terminates this Lease, Tenant shall pay over and assign to Landlord (or Landlord’s Mortgagee if required by Landlord’s Mortgagee) all insurance proceeds, and all rights under any insurance policies obtained by Tenant with respect to fire or casualty affecting the Premises.

  

11

  

 

10.  CONDEMNATION

 

(a)           If the entire Building, or the use or possession thereof, is taken in condemnation proceedings, or by any right of eminent domain, or for any public or quasi-public use, or if Landlord shall deliver to a governmental authority a deed in lieu of condemnation or eminent domain  (individually or collectively, a “taking”, or “taken”), then this Lease shall terminate on the date when possession shall be taken by the condemnor, and the Fixed Rent, Taxes, utilities and all other charges payable hereunder (whether to Landlord or to third parties) shall be apportioned and paid in full up to that date, and all prepaid rent and all other charges payable hereunder which have been paid with respect to any period after the termination date of this Lease shall be repaid by Landlord to Tenant.

If a material part of the Building shall be so taken and the part not taken cannot reasonably be used by Tenant for the continued operation of its business after restoration, as reasonably determined by Tenant, then Tenant may terminate this Lease, if Tenant shall so notify Landlord within forty-five (45) days after Tenant’s receipt of notice with respect to such taking.  If this Lease is not terminated pursuant to the foregoing terms, then this Lease shall continue in full force and effect.  In such case, Tenant, to the extent of the condemnation award received by Tenant as provided in subdivision (c) below, as speedily as circumstances permit, shall repair all damage to the Building as shall have been caused by such partial taking, and shall restore the Building to a complete architectural unit, but such work shall not exceed the scope of the work previously done in originally constructing said Building.  Fixed Rent, Taxes, utilities, additional rent and any other charges due under this Lease shall not abate during any period of repair or restoration.

 

(b)           If, due to a taking, the parking areas of the Premises shall be decreased below the Required Number of Parking Spaces (as defined in Section 15 of Part I), Tenant shall notify Landlord thereof. If, within ninety (90) days after Landlord’s receipt of such notice, additional parking is not provided within the Premises equal to the number by which it has been decreased below the Required Number of Parking Spaces, then Tenant may, upon thirty (30) days' written notice to Landlord, terminate this Lease.

If a taking shall result in the closure of any means of ingress or egress between the Premises and any abutting street, then Tenant shall notify Landlord thereof.  Landlord shall have ninety (90) days after Landlord’s receipt of such notice within which to restore the means of access to the Premises which have been so taken; provided, however, that such ninety (90) day period shall be extended by an additional sixty (60) days, as long as during such ninety (90) day period, Landlord diligently and in good faith has pursued the issuance of any permits which may be required for such restoration, and has commenced any construction work required to restore such means of access.  At the expiration of such ninety (90) day period, as so extended, Tenant shall have the right to terminate this Lease on thirty (30) days’ notice to Landlord, and this Lease shall so terminate at the expiration of such thirty (30) day period if either of the following conditions then exist: (i) the access between the Premises and the abutting streets which remains after such taking and any restoration by Landlord is insufficient to allow Tenant’s normal delivery trucks to make deliveries to the Premises, or (ii) all means of access between the Premises and the abutting streets have been so taken and at least one (1) means of access between the Premises and the abutting public streets has not been restored.

 

  

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(c)           (i)           If this Lease terminates as a result of a taking, Tenant hereby waives all rights in condemnation awards, except for any separate awards which may be made for Tenant's relocation expenses, business interruption, and the like.

(ii)            If this Lease does not terminate as a result of a taking, (x) Tenant shall be entitled to receive the award or compensation allocable to the value of any Buildings and improvements taken in such taking to the extent of Tenant’s cost of restoration of the Building and/or other improvements, and any separate award which may be made for Tenant’s business interruption, and (y) Landlord or Lender, as applicable, shall be entitled to receive any award or compensation allocable to the value of any Buildings and improvements taken in such taking which remain after such restoration by Tenant, and the balance of such award or compensation not allocable to the value of any Buildings and improvements taken in such taking.

11.  ASSIGNMENT AND SUBLETTING

 

(a)           Tenant shall have the right to assign this Lease, or to sublet the whole or any part of the Premises, for the use permitted by Article 3 of this Lease, provided: Landlord’s consent is first obtained, which consent Landlord agrees not to unreasonably withhold, delay or condition; and that Tenant and Guarantor shall remain liable for the obligations of Tenant hereunder.

(b)           Notwithstanding Article 11(a), Tenant shall have the right, without Landlord's consent, to: (i) assign this Lease, or sublet the whole or any part of the Premises, for the use permitted by Article 3 of this Lease, to any entity of which, at the time of such assignment or subletting, Tenant shall be a subsidiary, or which owns all of the ownership interests of Tenant, or to any subsidiary of a entity or other entity of which, at the time of such assignment or subletting, Tenant shall be a subsidiary, or which owns all of the ownership interests of Tenant provided that Guarantor (but not Tenant) remains fully liable for the obligations of Tenant hereunder; or (ii) sublease or license the whole or any part of the Premises for use as a retail health center; or (iii) assign this Lease to any party acquiring all or substantially all of the assets of Tenant's store at the Premises by purchase, merger, consolidation, or otherwise, provided that Guarantor (but not Tenant) remains fully liable for the obligations of Tenant hereunder.

12.  ALTERATIONS

 

Tenant shall not make any structural alterations or exterior alterations to the Building without, in each instance, obtaining Landlord’s written consent, which consent Landlord agrees not to unreasonably withhold, delay or condition.  However, Tenant may, without Landlord’s consent, make non-structural alterations to the Building interior.  Tenant agrees that in connection with any alteration:  (i) the fair market value of the Premises shall not be lessened after the completion of any such alteration, or its structural integrity impaired; (ii) the alteration and any alteration theretofore made or thereafter to be made shall not in the aggregate reduce the gross floor area of the Building by more than ten percent (10%); (iii) Tenant shall promptly pay all costs and expenses of any such alteration; (iv) all alterations (other than non-structural alterations the estimated cost of which in any one instance does not exceed the Threshold Repair Amount) shall be made under the supervision of an architect or engineer and in accordance with plans and specifications which shall be submitted to Landlord (for information purposes only) prior to the commencement of the alterations.

  

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At Tenant’s sole cost and expense, Tenant shall perform, and/or cause all of Tenant’s contractors, subcontractors, suppliers or other agents to perform, all work in a good and workmanlike manner, and in accordance with all Laws. Tenant shall discharge, within thirty (30) days (by payment or by filing the necessary bond), any mechanics', materialmen's or other lien against the Premises and/or Landlord's interest therein, which lien may arise out of any payment due for, or purported to be due for, any labor, services, materials, supplies, or equipment alleged to have been furnished to, on behalf of, or for Tenant in, upon, or about the Premises.

At Tenant’s sole cost, Landlord agrees to cooperate with Tenant (including signing applications) in obtaining any necessary permits for any alterations which Tenant is permitted to make hereunder.

13.  SIGNS

 

At Tenant’s sole cost, Tenant may install, replace and relocate on the Building, such signs, awnings, lighting effects and fixtures as may be used from time to time by Tenant (collectively, “Signs”). Tenant shall maintain and repair such Signs as necessary. Tenant also may place in its windows: Tenant's standard paper signs in its windows in accordance with Tenant's regular advertising and promotional programs; and/or neon signs. At Tenant’s sole cost, Landlord agrees to cooperate with Tenant (including signing applications) in obtaining any necessary permits for Tenant’s Signs.  All Signs installed, replaced or relocated by Tenant shall comply with all Laws.

14.  PYLON/MONUMENT SIGN

 

If permitted by Laws, Tenant, at its sole cost, may:  install its sign on any pylon sign structures or monument sign structure(s) located on the Premises; and, if no such pylon structure(s) or monument sign structure(s) shall exist, construct its own pylon structure and install its sign thereon in accordance with all Laws. At Tenant’s sole cost, Landlord agrees to cooperate with Tenant (including signing applications) in obtaining any necessary permits for any pylon or monument sign and/or structure(s).  All pylon or monument signs and/or structures installed by Tenant shall comply with all Laws.

15.  SURRENDER

 

At the expiration or other termination of this Lease, Tenant shall surrender the Premises to Landlord in as good order and condition as they were at the commencement of the Term, or if put in better condition thereafter, in such better condition reasonable wear and tear and damage by casualty or condemnation (not required to be repaired or restored by Tenant as provided in Articles 9 and 10 of this Lease) excepted.  All alterations, additions, and improvements in or upon the Premises made by either party (except Tenant's furniture, trade fixtures, satellite communications dish and equipment, computer and other personal equipment and shelving), shall become the property of Landlord and shall remain upon and be surrendered with the Premises as a part thereof at the termination or other expiration of the Term. At the expiration or termination of the Term, Tenant shall remove the items enumerated in the parenthetical above, as well as its signs (but not pylon sign structures) and identification marks, from the Premises. Tenant agrees to repair any and all damage caused by such removal within thirty (30) days of such removal.

  

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At any time during the Term, subject to complying with the provisions of Section 31, Tenant may remove the items enumerated in the parenthetical above, as well as its signs (but not pylon sign structures) and identification marks, from the Premises. Tenant agrees to repair any and all damage caused by such removal within thirty (30) days of such removal.

16.  SUBORDINATION OF LEASE

 

This Lease shall be subject and subordinate to the lien of any bank or institutional or other mortgage or mortgages now or hereafter in force against the Premises, and to all advances made upon the security thereof, provided that the holder of any such mortgage shall execute and deliver to Tenant an agreement (“SNDA Agreement”), in the form attached hereto as Exhibit E or such other form reasonably satisfactory to Landlord, Tenant and the holder of any such mortgage, providing that such holder will recognize this Lease and not disturb Tenant's possession of the Premises in the event of foreclosure if Tenant is not then in default hereunder beyond any applicable cure period.  Tenant agrees, upon receipt of such SNDA Agreement, to execute such further reasonable instrument(s) as may be necessary to subordinate this Lease to the lien of any such mortgage.  The term “mortgage” shall include deeds of trust or any other similar hypothecations.

In the event that any mortgagee of Landlord shall acquire possession of the Premises upon foreclosure, or by deed in lieu of foreclosure, or by any other means, Tenant shall be deemed to have made a full and complete attornment to such mortgagee so as to establish direct privity between such mortgagee and Tenant; all rights and obligations of Tenant under this Lease shall continue in full force and effect and shall be enforceable by and against Tenant with the same force and effect as if the Lease had originally been made and entered into directly by and between such mortgagee as the Landlord thereunder and Tenant; provided, however, that (a) such mortgagee shall not be: (i) liable for any act or omission of Landlord occurring prior to such mortgagee succeeding to Landlord’s interest under the Lease, including, without limitation, any offsets or defense claimed by Tenant to payment of rent arising from events occurring prior to such mortgagee’s succeeding to Landlord’s interest; (ii) bound by any rent or additional rent which Tenant paid to Landlord for more than one (1) month in advance; (iii) bound by any modification or amendment of the Lease made without such mortgagee’s consent; (b) such mortgagee shall recognize and accept the rights of Landlord and its mortgagee and shall thereafter assume the obligations of Landlord under the Lease in respect to obligations under the Lease thereafter falling due; and (c) if requested by such mortgagee, Tenant shall enter into a new lease with such mortgagee, or any other owner of the Premises as Landlord for the remaining term of this Lease and otherwise on the same terms and conditions and with the same options then remaining.

  

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17.  UTILITIES

 

Tenant agrees to pay for all utilities consumed by it in the Premises, prior to delinquency.  Tenant shall receive all savings, credits, allowances, rebates or other incentives granted or awarded during the Term by any third party utility provider solely as a result of Tenant’s use, payment or improvements made during the Term.  Landlord shall not be responsible to furnish any utilities to the Premises nor shall Landlord be responsible for the failure of Tenant to obtain any utilities required by Tenant.  Fixed rent, additional rent and any other charges due hereunder shall not abate due to any failure by Tenant to obtain any utilities required by Tenant and Tenant shall have no right to terminate this Lease due to any failure of Tenant to obtain utilities.

18.  TENANT DEFAULT

 

(a)           Any of the following occurrences or acts shall constitute an Event of Default (herein so called) under this Lease:  if (i) Tenant shall default in the payment when due of any installment of Fixed Rent payable hereunder, and such default shall continue for five (5) days after the Due Date thereof; or (ii) Tenant shall default in the payment when due of any installment of Additional Rent payable hereunder and such default shall continue for ten (10) days after notice of such default is sent to Tenant by Landlord (or Lender); or (iii) the failure by Tenant to maintain insurance as required under this Lease; or (iv) Tenant shall default in fulfilling any of the other covenants, agreements or obligations of this Lease, and such default shall continue for more than thirty (30) days after written notice thereof from Landlord (or Lender) specifying such default, provided, that if Tenant has commenced to cure within said thirty (30) days, and thereafter is in good faith diligently prosecuting same to completion, said thirty (30) day period shall be extended, for a reasonable time (not to exceed one hundred eighty (180) days or, with respect to a breach of Tenant's obligations under Article 34 of this Part II, such longer period as may reasonably be necessary to cure such default so long as (A) Tenant delivers to Landlord a certificate of a qualified environmental remediation specialist that such default could not be cured within such one hundred eighty (180) days but is curable, and (B) Tenant is in good faith diligently prosecuting such cure to completion) where, due to the nature of a default, it is unable to be completely cured within thirty (30) days; or (v) any execution or attachment shall be issued against Tenant or any of its property whereby the Premises shall be taken or occupied or attempted to be taken or occupied by someone other than Tenant, and the same shall not be bonded, dismissed, or discharged as promptly as possible under the circumstances; or (vi) Tenant or Guarantor (A) shall make any assignment or other act for the benefit of creditors, (B) shall file a petition or take any other action seeking relief  under any state or federal insolvency or bankruptcy Laws, or (C) shall have an involuntary petition or any other action filed against either of them under any state or federal insolvency or bankruptcy Laws which petition or other action is not vacated or dismissed within sixty (60) days after the commencement thereof; or (vii) the estate or interest of Tenant in the Premises shall be levied upon or attached in any proceeding and such estate or interest is about to be sold or transferred and such process shall not be vacated or discharged within sixty (60) days after such levy or attachment; or (viii) the Guarantor's guaranty of Tenant's obligations under this Lease is terminated for any reason, or the Guarantor asserts in any pleading or judicial or administrative proceeding that such guaranty is void or unenforceable or that Guarantor is not liable thereunder; or (ix) any material representation or warranty made by Tenant or Guarantor to Landlord or the Lender herein or in connection with Landlord's purchase of the Premises or in any document delivered pursuant to this Lease is misleading or false when made; or (x) [Intentionally omitted].

  

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(b)           If an Event of Default shall have occurred and be continuing, Landlord shall be entitled to all remedies available at law or in equity.  Without limiting the foregoing, Landlord shall have the right to give Tenant notice of Landlord's termination of the Term of this Lease.  Upon the giving of such notice, the Term of this Lease and the estate hereby granted shall expire and terminate on such date as fully and completely and with the same effect as if such date were the date herein fixed for the expiration of the Term of this Lease, and all rights of Tenant hereunder shall expire and terminate, but Tenant shall remain liable as hereinafter provided.

(c)           If an Event of Default shall have occurred and be continuing, Landlord shall have the immediate right, whether or not the Term of this Lease shall have been terminated pursuant to Article 18(b) of this Part II, to re-enter and repossess the Premises and the right to remove all persons and property therefrom by summary proceedings, ejectment, any other legal action or in any lawful manner Landlord determines to be necessary or desirable.  Landlord shall be under no liability by reason of any such re-entry, repossession or removal.  No such re-entry, repossession or removal shall be construed as an election by Landlord to terminate this Lease unless a notice of such termination is given to Tenant pursuant to Article 18(b) of this Part II.

(d)           At any time or from time to time after a re-entry, repossession or removal pursuant to Article 18(c) of this Part II, whether or not the Term of this Lease shall have been terminated pursuant to Article 18(b) of this Part II, Landlord may (but, except to the extent expressly required by any applicable Law, shall be under no obligation to) relet the Premises for the account of Tenant, in the name of Tenant or Landlord or otherwise, without notice to Tenant, for such term or terms and on such conditions and for such uses as Landlord, in its absolute discretion, may determine.  Landlord may collect any rents payable by reason of such reletting.  Except to the extent required by applicable Law, Landlord shall not be liable for any failure to relet the Premises or for any failure to collect any rent due upon any such reletting.

(e)           No expiration or termination of the Term of this Lease pursuant to Article 18(b) of this Part II, by operation of law or otherwise, and no re-entry, repossession or removal pursuant to Article 18(c) of this Part II or otherwise, and no reletting of the Premises pursuant to Article 18(d) of this Part II or otherwise, shall relieve Tenant of its liabilities and obligations hereunder, all of which shall survive such expiration, termination, re-entry, repossession, removal or reletting.

(f)           In the event of any expiration or termination of the Term of this Lease or re-entry or repossession of the Premises or removal of persons or property therefrom by reason of the occurrence of an Event of Default, Tenant shall pay to Landlord all Fixed Rent, Additional Rent and other sums required to be paid by Tenant, in each case together with interest thereon at the Lease Default Rate from the due date thereof to and including the date of such expiration, termination, re-entry, repossession or removal; and thereafter, Tenant shall, until the end of what would have been the Term of this Lease in the absence of such expiration, termination, re-entry, repossession or removal and whether or not the Premises shall have been relet, be liable to Landlord for, and shall pay to Landlord, as liquidated and agreed current damages:  (i) all Fixed Rent, Additional Rent and other sums which would be payable under this Lease by Tenant in the absence of any such expiration, termination, re-entry, repossession or removal, less (ii) the net proceeds, if any, of any reletting effected for the account of Tenant pursuant to Article 18(d) of this Part II, after deducting from such proceeds all reasonable expenses of Landlord in connection with such reletting, including, without limitation, all repossession costs, brokerage commissions, reasonable attorneys' fees and expenses (including, without limitation, fees and expenses of appellate proceedings), alteration costs and expenses of preparation for such reletting.  Tenant shall pay such liquidated and agreed current damages on the dates on which Fixed Rent would be payable under this Lease in the absence of such expiration, termination, re-entry, repossession or removal, and Landlord shall be entitled to recover the same from Tenant on each such date.

  

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(g)           At any time after any such expiration or termination of the Term of this Lease or re-entry or repossession of the Premises or removal of persons or property thereon by reason of the occurrence of an Event of Default, whether or not Landlord shall have collected any liquidated and agreed current damages pursuant to Article 18(f) of this Part II, Landlord shall be entitled to recover from Tenant, and Tenant shall pay to Landlord on demand, as and for liquidated and agreed final damages for Tenant's default and in lieu of all liquidated and agreed current damages beyond the date of such demand (it being agreed that it would be impracticable or extremely difficult to fix the actual damages), an amount equal to the sum of (i) the excess, if any of (A) the aggregate of all Fixed Rent, Additional Rent and other sums which would be payable under this Lease, in each case from the date of such demand (or, if it be earlier, the date to which Tenant shall have satisfied in full its obligations under Article 18(f) of this Part II to pay liquidated and agreed current damages) for what would be the then-unexpired Term of this Lease in the absence of such expiration, termination, re-entry, repossession or removal, discounted at the rate equal to the then current rate on U.S. Treasury obligations of comparable maturity to such Term (the “Treasury Rate”), but in no event greater than the non-default rate of interest for any loan to a Lender (such lower rate being referred to as the “Discount Rate”) over (B) the amount of such rental loss that Tenant proves could be reasonably avoided by commercially reasonable mitigation efforts by Landlord, discounted at the Discount Rate for the same period, plus (ii) any make-whole premium, prepayment premium or other amount due under any loan to a Lender as a result of the prepayment or defeasance thereof, plus (iii) all reasonable legal fees and other costs and expenses incurred by Landlord and Lender as a result of Tenant's default under this Lease.  If any Law shall limit the amount of liquidated final damages to less than the amount above agreed upon, Landlord shall be entitled to the maximum amount allowable under such Law.

Mention in this Lease of any particular remedy shall not preclude Landlord from any other remedy at law or in equity, including without limitation the right of injunction.  Tenant waives any rights of redemption granted by any Laws if Tenant is evicted or dispossessed, for any cause, or if Landlord obtains possession of the Premises by reason of the violation by Tenant of any of the terms of this Lease.

  

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(h)           In addition to the foregoing remedies set forth in this Article 18 and all other remedies available at law or in equity, and regardless of whether or not an Event of Default has occurred under this Lease, if Tenant has failed to perform any of its duties, obligations, covenants or agreements under this Lease, Landlord may give notice to Tenant that it has failed to perform any such duty, obligation, covenant or agreement (herein called a “Notice of Breach”) and may thereafter pursue any rights or remedies available to it at law or in equity including, without limitation, filing a suit for damages (but as to the amount of damages, with appropriate credit to be given for amounts paid to Landlord under Article 18(f) and 18(g)) as a result of such breach or a suit for specific performance of any such duties, obligations, covenants or agreements.  Any Notice of Breach delivered under this Article 18(h) or any such rights or remedies pursued by Landlord shall not be deemed to be a notice of default under any provision of this Article 18 and shall not result, with or without the passage of time, in an Event of Default existing under this Lease; provided, that the delivery of any such Notice of Breach shall not limit Landlord's right to subsequently deliver notice (with respect to the same event or condition which is the subject of such Notice of Breach or any other event or condition) which will declare or, with the passage of time, result in an Event of Default hereunder.  Further, after delivery of any such Notice of Breach, but without notice in the event of an emergency, if Tenant fails to cure such breach during the time that Tenant has to cure such breach under Article 18(a) above, Landlord may do whatever is reasonably necessary to cure such breach as may be appropriate under the circumstances for the account of and at the expense of Tenant.  All reasonable sums so paid by Landlord and all reasonable costs and expenses (including, without limitation, attorneys' fees and expenses) so incurred, together with interest thereon at the Lease Default Rate from the date of payment, shall constitute Additional Rent payable by Tenant under this Lease and shall be paid by Tenant to Landlord on demand.

 

19.  LANDLORD DEFAULT

 

In the event of any default by Landlord under this Lease (“Landlord Default”), Tenant may give Landlord written notice specifying such Landlord Default and, if Tenant shall do so, then Landlord shall have thirty (30) days in which to cure any such Landlord Default; provided, however, that if the nature of the Landlord Default is such that more than thirty (30) days are required for its cure, then Landlord shall not be in default if Landlord commences to cure within said thirty (30) days and thereafter diligently prosecutes the same to completion.  In the event that Landlord shall remain in default following its said right to cure, then, in addition to any other rights to damages or specific performance available to Tenant, Tenant may cure such Landlord Default on behalf of Landlord by doing the necessary work and/or making the necessary payments, and billing Landlord for the reasonable costs thereof, which Landlord agrees to pay to Tenant within thirty (30) days of receipt of Tenant's demand therefor and reasonable evidence of the cost of the same; provided, however, Tenant shall have no right to terminate this Lease as a result of a Landlord Default, or deduct any of the cost from any Fixed Rent, Additional Rent, or other charges due hereunder.

20.  RENT PAYMENTS

 

(a)           If Landlord's interest in this Lease shall pass to another, or if the Fixed Rent or Additional Rent hereunder shall be assigned, or if a party other than Landlord, shall become entitled to collect the Fixed Rent or Additional Rent due hereunder, then, notice thereof shall be given to Tenant and Guarantor by Landlord in writing, or, if Landlord is an individual and shall have died or become incapacitated, by Landlord's legal representative, accompanied by due proof of the appointment of such legal representative. Until such notice and proof shall be received by Tenant, Tenant may continue to pay the Fixed Rent or Additional Rent due hereunder to the one to whom, and in the manner in which, the last preceding installment of Fixed Rent or Additional Rent hereunder was paid, and each such payment shall fully discharge Tenant’s obligation for that month’s Fixed Rent or Additional Rent, as applicable, if paid in full.

  

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(b)           Tenant shall not be obligated to recognize any agent for the collection of Fixed Rent or otherwise authorized to act with respect to the Premises until written notice of the appointment and the extent of the authority of such agent shall be given to Tenant by the one appointing such agent.

(c)           Tenant shall have no obligation to pay Fixed Rent or any other amount due hereunder until Tenant has received a properly completed and executed Internal Revenue Service form W-9, Request for Taxpayer Identification Number and Certificate or any successor form or any similar form and/or such other information and/or form from Landlord that is required by the Internal Revenue Service and/or by any other federal, state or local governmental taxing authority having jurisdiction to require the furnishing of any form or information by Landlord from time to time (or other evidence of Landlord’s United States Social Security Number or Federal Employee Identification Number reasonably satisfactory to Tenant), in order to allow the requesting party to make a payment under this Lease or any related agreement without any deduction or withholding for or on account of any tax, with any such form or document to be accurate and completed in a manner reasonably satisfactory to such other party and to be executed and to be delivered with any required certification; however, to the extent such failure causes a backup tax withholding obligation to be imposed on Tenant, Tenant may withhold such amounts from any payments due to or for the benefit of Landlord under this Lease.  The provisions of Article shall be enforceable by an action for specific performance or an action for actual damages against any party failing to comply with its obligations thereunder.

  

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21.  HOLDOVER

 

If Tenant shall hold over after the expiration date of the Term, or if Tenant shall hold over after the date specified in any termination notice given by Tenant then, in either such event, Tenant shall be a month-to-month Tenant on the same terms as herein provided, except that the monthly Fixed Rent will be 1.5 times the monthly Fixed Rent payable by Tenant for the last full calendar month of Tenant's tenancy hereunder.  

22.  NOTICES

 

Whenever, pursuant to this Lease, notice or demand shall or may be given to either of the parties by the other, and whenever either of the parties shall desire to give to the other any notice or demand with respect to this Lease or the Premises, each such notice or demand shall be in writing, and any Laws to the contrary notwithstanding, shall not be effective for any purpose unless the same shall be given or served as follows: by mailing the same to the other party by registered or certified mail, return receipt requested, or by overnight courier service provided a receipt is required, at its Notice Address set forth in Part I hereof, or at such other address as either party may from time to time designate by notice given to the other. The date of receipt of the notice or demand shall be deemed the date of the service thereof (unless the notice or demand is not received or accepted in the ordinary course of business, in which case the date of mailing shall be deemed the date of service thereof).

23.  SATELLITE COMMUNICATIONS DISH AND EQUIPMENT

 

Notwithstanding anything to the contrary in this Lease, Tenant may install, maintain, and replace, on the roof of the Building or in the Building, a satellite communications dish and related equipment.  Tenant shall do so at its own cost and in accordance with all Laws, and shall defend, indemnify and hold Landlord harmless from and against any claims, costs or expenses incurred by Landlord as a result of such installation, maintenance or replacement by Tenant, Tenant’s employees, agents, or any independent contractor hired by Tenant in connection with such installation.  At Landlord's request, Tenant shall coordinate any roof installation hereunder with Landlord's roofing contractor.

 

24.  EXCLUSIVE

 

(a)           If Landlord or any of its controlling parties hold or acquire any interest in any land immediately adjacent to the Premises or at the same intersection as the Premises, in the event that the Premises is located at an intersection (whether accomplished directly by direct ownership, or indirectly through the use of leases, cross-easement agreements or similar documents), during the Term, Landlord agrees that Landlord shall not allow any of the premises on such land to be leased or to be used for the primary purpose of a health and beauty aids store, a drug store, a vitamin store, a business providing photo finishing or photo processing services, and/or operation of a pharmacy. This Article 24(a) shall not be deemed to restrict Landlord for leasing to a grocery store, big box retailers such as Walmart, Kmart, Target, large grocery store chain or any other tenant which may sell health and beauty aids, medicine, vitamins, photo services or have a pharmacy inside the leased space provided such services are not such tenant’s primary business purpose.

  

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(b)           As used in this Lease: the term "operation of a pharmacy" shall mean any dispensing, distribution or furnishing of prescription drugs for a fee or profit or a facility which accepts prescriptions from customers which are filled elsewhere and delivered to the customers.  The distribution or furnishing of free samples of prescription drugs by physicians, dentists, other health care practitioners, or entities such as clinics or health maintenance organizations, shall not be deemed the “operation of a pharmacy”; a "health and beauty aids store" shall mean a store which devotes more than the lesser of fifteen (15%) of its retail selling space or 1,500 square feet to the display and sale of health and beauty aids; a “vitamin store” shall mean a store which devotes more than the lesser of five percent (5%) of its retail selling space or 500 square feet to the display and sale of vitamins.

(c)           If Landlord shall violate any of the provisions of this Article and shall not cure such violation within sixty (60) days after receipt of Tenant’s notice thereof, Tenant, at any time thereafter, upon ten (10) days prior written notice to Landlord, may terminate this Lease.

25.  MAINTENANCE OF PARKING AND OTHER EXTERIOR AREAS

 

With respect to the parking and other exterior areas of the Premises, Tenant shall be responsible for: repairing, resurfacing, repaving, re-striping, and resealing, of the parking areas; repair of all curbing, sidewalks and directional markers; removal of snow and ice; landscaping; and provision of adequate lighting during all hours of darkness that Tenant shall be open for business.

26.  TAXES

 

(a)           During the Term, Tenant agrees to timely pay all Tax authorities for all real estate taxes and all assessments which have heretofore or may hereafter be levied against the Premises (collectively, “Taxes”) with respect to each tax fiscal year (or portion thereof) whether occurring prior to or after the Date of Rent Commencement.

 

(b)           At Tenant's sole cost, Tenant may contest (including seeking an abatement or reduction of) any Taxes agreed to be paid hereunder; provided that Tenant first shall satisfy any requirements of Laws, including, if required, that the Taxes be paid in full before being contested. At Tenant's sole cost and expense, Landlord shall assist Tenant as reasonably necessary with respect to any such contest, including joining in and signing applications or pleadings. Any rebate received shall belong to Tenant if such rebate is attributable to time periods during the Term.

(c)           If Landlord shall become aware that the Premises is being sold at a tax sale due to Tenant's delinquent payment of Taxes, and if Landlord shall pay the delinquent Taxes in order to prevent such sale, then,  the following amounts shall be due to Landlord from Tenant as additional rent:  an amount equal to the Taxes, interest, and penalties so paid by Landlord; all reasonable charges (including reasonable attorneys fees) incurred by Landlord in preventing such sale; and interest on all of the foregoing at the rate of ten percent (10%) per annum.

(d)           Tenant agrees to pay to all Tax authorities all personal property taxes which may be levied against Tenant's merchandise, trade fixtures, and other personal property in and about the Premises.

  

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(e)           Upon request of Tenant, Landlord agrees to execute and deliver a power of attorney granting Tenant (or any officer of Tenant) the right to execute, acknowledge and deliver real estate tax returns, statements and other real estate tax-related instruments, and to pay real estate taxes, on behalf of Landlord with respect to the Premises.  In order to induce the Landlord to execute any such power of attorney, and without limitation of the obligations of the Tenant under this Lease, Tenant shall indemnify, defend and save harmless Landlord for, from and against any and all losses, liabilities, damages, penalties, judgments, actions, suits, proceedings, claims, demands, assessments, costs and expenses, including, without limitation, reasonable legal fees and expenses, which may arise as a result of any action or failure to act by Tenant or any other person named under any such power of attorney.  Tenant also agrees that it shall, at its sole cost and expense, defend any and all suits or actions, just or unjust, which may be brought against Landlord (or in which Landlord may be impleaded) with respect to said power of attorney, and shall indemnify and hold Landlord harmless from any liabilities, judgments, settlements and other amounts arising in connection with any such suits or actions.

27.  INSURANCE

 

(a)           Tenant shall maintain All-Risk insurance (i.e., Cause of Loss-Special Form or equivalent) for the Building for at least 100% of its reasonable replacement value. Said All-Risk policy shall be written without any coinsurance and not exclude flood coverage if the Premises is located in a Flood Zone A or V, and shall not exclude earthquake coverage. Tenant’s coverage shall include damage from windstorm, and law and ordinance coverage. Tenant also shall maintain commercial General Liability coverage, including Broad Form Endorsement, on an occurrence basis in combined policy limits of not less than $5,000,000 per occurrence per location for bodily injury and for property damage with respect to the Premises. If the foregoing coverage limit shall become inadequate or less than that commonly maintained by prudent tenants in similar buildings in the area in which the Premises are located by tenants making similar uses, Tenant shall increase its insurance limits to such amount as is commonly maintained by such prudent tenants making similar uses.

(b)           Any insurance maintained by Tenant pursuant to this Article 27 shall name Landlord and its mortgagee as additional insureds and/or loss payees, as appropriate, as their respective interests may appear and be written on a primary and non-contributory basis. Upon Landlord's request, Tenant shall deliver to Landlord and any mortgagee a certificate or evidence of such insurance required herein or make such certificate or evidence available to Landlord and any such mortgagee by way of access to a website or similar means.

(c)           Tenant warrants and agrees that all proceeds received from such All-Risk insurance shall be used in the first instance in accordance with Tenant’s obligations under Article 9 hereof, and unless provided otherwise in Article 9, any surplus shall be retained by Tenant.

(d)           Tenant may carry such All-Risk and Commercial General Liability insurance by way of a Business Owners Policy ("BOP"), or any equivalent thereof.

  

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(e)           Tenant may carry such All-Risk and/or Commercial General Liability insurance through blanket insurance covering the Premises and other locations of Tenant and/or of Tenant's affiliates.

(f)           All insurance coverage required to be carried hereunder: shall be carried with insurance companies licensed to do business in the state in which the Premises is located; shall be rated in the then-most current Best's Insurance Guide (or any successor thereto)or equivalent as having a general policyholder rating of A- or better and a financial rating of "VIII" or better; and shall require the insured’s insurance carrier to notify the other party hereto at least thirty (30) days prior to any cancellation or material modification of such insurance.   Any insurance policy may be written with a deductible of not more than five hundred thousand ($500,000) dollars; provided that unless the long-term unsecured debt of Tenant or Guarantor is rated BBB or better by Standard & Poor’s and Baa2 or better by Moody’s, said deductible amounts may not exceed three hundred fifty thousand ($350,000) dollars.

28.  LANDLORD'S TITLE

 

Landlord warrants and covenants that, from and after the acquisition of the Premises and Building by Landlord, Landlord shall not enter into any restrictive covenants or other agreements, which would prevent Tenant from occupying the Premises for the purposes permitted by Article 3 of this Lease, or prevent the full use of the parking areas as herein set forth.

29.  QUIET ENJOYMENT

 

Landlord warrants and agrees that Tenant, on paying the Fixed Rent, Additional Rent and other charges due hereunder and performing all of Tenant’s other obligations pursuant to this Lease, shall and may peaceably and quietly have, hold, and enjoy the Premises for the full Term, free from molestation, eviction, or disturbance by Landlord or by any other person(s) lawfully claiming by, through or under Landlord.

30.  NO BROKERS

 

Landlord and Tenant each represent and warrant that it has had no dealings or conversations with any real estate broker in connection with the negotiation and execution of this Lease.  Landlord and Tenant each agree to defend, indemnify and hold harmless the other against all liabilities arising from any claim of any real estate brokers, including cost of counsel fees, resulting from their respective acts.

31.  TENANT TO COMPLY WITH MATTERS OF RECORD

 

Tenant agrees to perform all obligations of Landlord and pay all costs, expenses and other amounts (including, without limitation, any liquidated damages) which Landlord or Tenant may be required to pay in accordance with, and to comply and cause the Premises to comply in all respects with all of the terms and conditions of, any reciprocal easement agreement or any other agreement or document of record now affecting the Premises (including, without limitation, those matters described on Exhibit C hereto) or hereafter executed or filed with Tenant's written consent (each, herein referred to as a “Matter of Record,” and collectively as the “Matters of Record”) during the Term.  Further, Tenant shall operate the Premises in such a manner as to prevent any repurchase right, purchase option, right of reversion, or other right which could result in the divestiture of title from Landlord under any Permitted Encumbrance or any other Matter of Record.  TENANT SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS LANDLORD AND LENDER AND ALL OTHER INDEMNIFIED PARTIES FROM ANY CLAIM, LOSS OR DAMAGE SUFFERED BY LANDLORD OR LENDER OR SUCH INDEMNIFIED PARTIES BY REASON OF TENANT'S FAILURE TO PERFORM ANY OBLIGATIONS OR PAY ANY COSTS, EXPENSES OR OTHER AMOUNTS (INCLUDING, WITHOUT LIMITATION, LIQUIDATED DAMAGES) AS REQUIRED UNDER ANY MATTERS OF RECORD OR COMPLY AND CAUSE THE PREMISES TO COMPLY WITH THE TERMS AND CONDITIONS OF ANY MATTERS OF RECORD DURING THE TERM.

  

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32.  TRANSFER OF TITLE

 

(a)           Landlord may freely transfer title to the Premises and this Lease without the consent of Tenant; however, Landlord shall give Tenant notice of any such transfer by delivery of a Notice of Transfer in substantially the form attached to this Lease as Exhibit T-1. Until Landlord gives Tenant notice in accordance with the terms of this Lease, or Tenant receives notice of a transfer by Landlord, Tenant may deal with Landlord as if it continued to be the owner of the Premises.  If a controlling ownership interest in Landlord is transferred and, in connection therewith, the address for notices to Landlord is changed, Landlord shall give Tenant notice of the transfer of such controlling ownership interest by delivery of a Notice of Transfer in substantially the form attached to this Lease as Exhibit T-2; and provided, that until Landlord gives, or Tenant receives, notice of such transfer and new address Tenant may correspond with the current owner of a controlling interest in Landlord at the prior address for notices to Landlord.  Whenever Landlord shall give Tenant notice of any such transfer, as provided in this Article, Landlord shall deliver to Tenant a properly completed and executed Internal Revenue Service Form W-9, Request for Taxpayer Identification Number and Certification, or any successor form or any similar form and/or such other information or form from Landlord that is required by the Internal Revenue Service and/or by any other federal, state or local taxing authority having jurisdiction to require the furnishing of any form or information from time to time (or other evidence of Landlord’s United States Social Security Number or Federal Employee Identification Number reasonably satisfactory to Tenant), in order to allow the requesting party to make a payment under this Lease or any related agreement without any deduction or withholding for or on account of any tax, with any such form or document to be accurate and completed in a manner reasonably satisfactory to such other party and to be executed and to be delivered with any required certification; however, to the extent such failure causes a backup tax withholding obligation to be imposed on Tenant, Tenant may withhold such amounts from any payments due to or for the benefit of Landlord under this Lease.

 

(b)           In the event of any transfer(s) of the title to the Premises, Landlord (and in the case of any subsequent transfer, the then-grantor) automatically shall be relieved from and after the date of such transfer, of all liability with respect to the performance of any obligations on the part of said Landlord contained in this Lease thereafter to be performed; provided that any amount then due and payable to Tenant by Landlord (or the then-grantor), and any other obligation then to be performed by Landlord (or the then-grantor) under this Lease, either shall be paid or performed by Landlord (or the then-grantor) or such payment or performance assumed by the transferee; it being intended hereby that the covenants, conditions and agreements contained in this Lease on the part of Landlord shall, subject to the foregoing, be binding on Landlord, its successors and assigns, only during and with respect to their respective successive period of ownership.

  

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33.  NO CONTINUOUS OPERATION

 

Anything in this Lease, express or implied, to the contrary notwithstanding, subject to complying with the provisions of Section 31, Landlord agrees that Tenant shall be under no duty or obligation, either express or implied, to open, or thereafter to continuously conduct, its business in the Premises at any time during the Term.

34.  HAZARDOUS MATERIALS

 

(a)           For the purposes hereof, the term “Hazardous Materials” shall include, without limitation, any material, waste or substance which is (i) included within the definitions of “hazardous substances,” “hazardous materials,” “toxic substances,” or “hazardous wastes” in or pursuant to any Laws, or subject to regulation under any Law; (ii) listed in the United States Department of Transportation Optional Hazardous Materials Table, 49 C.F.R. Section 172.101, as enacted as of the date hereof or as hereafter amended, or in the United States Environmental Protection Agency List of Hazardous Substances and Reportable Quantities, 40 C.F.R. Part 302, as enacted as of the date hereof or as hereafter amended; or (iii) explosive, radioactive, asbestos, a polychlorinated biphenyl, petroleum or a petroleum product or waste oil.  The term “Environmental Laws” shall include all Laws pertaining to health, industrial hygiene, Hazardous Materials or the environment, including, but not limited to each of the following, as enacted as of the date hereof or as hereafter amended: the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. §9601 et seq.; the Resource Conservation and Recovery Act of 1976, 42 U.S.C. §6901 et seq.; the Toxic Substance Control Act, 15 U.S.C. §2601 et seq.; the Water Pollution Control Act (also known as the Clean Water Act), 33 U.S.C. §1251 et seq.; the Clean Air Act, 42 U.S.C. §7401 et seq.; and the Hazardous Materials Transportation Act, 49 U.S.C. §5101 et seq.

  

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(b)           Tenant represents and warrants to Landlord and Lender that, except as disclosed in the environmental reports listed on Exhibit F hereto, (i) neither the Premises, nor any portion thereof, has been used by Tenant or, to the best of Tenant's knowledge, by any prior owner for the generation, manufacture, storage, handling, transfer, treatment, recycling, transportation, processing, production, refinement or disposal (each, a “Regulated Activity”) of any Hazardous Materials; and (ii) to the best of Tenant's knowledge, there are no Hazardous Materials present on, in or under the Premises or any portion thereof except to the extent expressly permitted by the terms of this Article 34(b).  Tenant covenants it (i) will comply, and will cause the Premises to comply, with all Environmental Laws applicable to the Premises, (ii) will not use, and shall prohibit the use of the Premises for Regulated Activities or for the storage, handling or disposal of Hazardous Materials (other than in connection with the operation and maintenance of the Premises and in commercially reasonable quantities as a consumer thereof, subject to compliance with applicable Laws), (iii) (A) will not install or permit the installation on the Premises of any asbestos or asbestos-containing materials (except in compliance with all applicable Environmental Laws), underground storage tanks or surface impoundments and shall not permit there to exist any petroleum contamination in violation of applicable Environmental Laws originating on the Premises, and (B) with respect to any petroleum contamination on the Premises which originates from a source off the Premises, Tenant shall notify all responsible third parties and appropriate government agencies (collectively, "Third Parties") and shall prosecute the cleanup of the Premises by such Third Parties, including, without limitation, undertaking legal action, if necessary, to enforce the cleanup obligations of such Third Parties and, to the extent not done so by such Third Parties and to the extent technically feasible and commercially practicable, Tenant shall remediate such petroleum contamination, and (iv) shall cause any alterations of the Premises to be done in a way which complies with applicable Laws relating to exposure of persons working on or visiting the Premises to Hazardous Materials and, in connection with any such alterations, shall remove any Hazardous Materials present upon the Premises which are not in compliance with applicable Environmental Laws or which present a danger to persons working on or visiting the Premises.

 

Notwithstanding any provision of this Lease to the contrary, Landlord agrees that Tenant may sell household and automotive cleaners and other chemicals (including, without limitation, motor oil) in standard retail containers as are commonly sold by supermarkets, discount stores, and/or drugstores.  Storage of such chemicals in commercially reasonable quantities for sale by Tenant is also permitted.  Additionally, Landlord agrees that Tenant may use household and commercial cleaners and chemicals to maintain the Premises, and additional chemicals necessary to perform on site photoprocessing activities, provided that such use and photoprocessing activities are in compliance with all Environmental Laws.  Landlord and Tenant acknowledge that any or all of the cleaners and chemicals described in this paragraph may constitute Hazardous Materials.  However, Tenant may sell, use, store and dispose of same as herein set forth, provided, that in doing so Tenant complies with all Laws.  For the purposes of subdivisions (c) and (d) of this Article, the term "Hazardous Materials" shall exclude the Hazardous Materials used as permitted in this paragraph.

  

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(c)           If, at any time during the Term, Hazardous Materials shall be found in, on or under the Premises, then Tenant shall (at Tenant's sole expense), or shall cause such responsible Third Parties to, promptly commence and diligently prosecute to completion all investigation, site monitoring, containment, cleanup, removal, restoration or other remedial work of any kind or nature (collectively, “Remedial Work”) to the extent required by Environmental Laws, and in compliance with Environmental Laws, and at Tenant's sole cost; provided, that except as otherwise expressly provided in this subparagraph (c), in the event that Tenant (rather than a Third Party) is performing the Remedial Work, Landlord shall not be required to accept any institutional control (such as a deed restriction) that restricts the permitted use of the Premises or any real property as a condition to any remedial plan approved by any governmental agency in connection with such Remedial Work.  The Remedial Work required of Tenant under this Lease shall be limited to achieving clean-up standards applicable to commercial use of the Premises as provided herein (“Commercial Closure”), if allowed under applicable Environmental Laws and if approved by the applicable governmental authority with jurisdiction over the Premises, Hazardous Materials and Remedial Work; provided, that the Hazardous Materials left in place would not reasonably be expected to cause or threaten to cause current or future migration of such Hazardous Materials from the environmental media in which such Hazardous Materials are present to other environmental media or to other properties in excess of applicable regulatory standards permitted under applicable Laws; and provided, further, that whether Tenant or a Third Party is performing the Remedial Work, nothing contained in this Article 34(c) shall be deemed to limit the obligations of the Tenant under any other provision of this Article 34 including, without limitation, the indemnification obligations of the Tenant under Article 34(e) of this Part II.  In the event that Tenant (rather than a Third Party) is performing the Remedial Work and an institutional control (such as a deed restriction, environmental land use restriction, or activity and use limitation) that restricts the permitted use of or activities on the Premises (hereinafter a “Restriction”) is required in order to achieve Commercial Closure, prior to submitting any proposed plan for Remedial Work to a governmental authority which proposes such a Restriction or performing or implementing such Remedial Work or actually recording any Restriction in the relevant real property records, Tenant shall submit such Restriction to Landlord for review and approval.  Landlord shall not unreasonably withhold or delay its approval of any such Restrictions proposed by Tenant (i) so long as the condition set forth in subpart (iii) of this sentence is satisfied, which require that the Premises not be used for residential purposes, for a day care facility, or for agricultural purposes, (ii) so long as the condition set forth in subpart (iii) of this sentence is satisfied and the Premises are adequately served by a municipal water supply, which prohibit the use of the ground water underlying the Premises, or (iii) so long as such Restrictions would not reasonably be likely to result in a material decrease in the fair market value of the Premises based upon the use of the Premises as commercial property, would not reasonably be likely to materially affect the marketability of the Premises or the ability to obtain financing secured by the Premises based upon the use of the Premises as commercial property, and would not reasonably be likely to create ongoing monitoring or reporting obligations with respect to the Premises.  If any Third Party is completing any Remedial Work with respect to the Premises and, in connection therewith, either Landlord's or Tenant's consent is required prior to implementing any institutional controls that restrict the permitted use of the Premises, then Tenant shall not consent to or accept such controls without the prior written consent of Landlord, and Landlord shall not be required to accept or consent to such institutional controls except as otherwise provided in this subparagraph (c).

 

(d)           To the extent that Tenant has knowledge thereof, Tenant shall promptly provide notice to Landlord and Lender of any of the following matters which are not specified in the Environmental Reports described on Exhibit F hereto:

(i)           any proceeding or investigation commenced or threatened by any governmental authority with respect to the presence of any Hazardous Material affecting the Premises;

(ii)          any proceeding or investigation commenced or threatened by any governmental authority, against Tenant or Landlord, with respect to the presence, suspected presence, release or threatened release of Hazardous Materials from any property owned by Landlord;

(iii)         all written notices of any pending or threatened investigation or claims made or any lawsuit or other legal action or proceeding brought by any person against (A) Tenant or Landlord or the Premises, or (B) any other party occupying the Premises or any portion thereof, in any such case relating to any loss or injury allegedly resulting from any Hazardous Material or relating to any violation or alleged violation of Environmental Laws;

  

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(iv)        the discovery of any occurrence or condition on the Premises, of which Tenant becomes aware and which is not corrected within ten (10) days, or written notice received by Tenant of an occurrence or condition on any real property adjoining or in the vicinity of the Premises, which reasonably could be expected to lead to the Premises or any portion thereof being in violation of any Environmental Laws or subject to any restriction on ownership, occupancy, transferability or use under any Environmental Laws or which might subject Landlord or Lender to any Environmental Claim.  "Environmental Claim" means any claim, action, investigation or written notice by any person alleging potential liability (including, without limitation, potential liability for investigatory costs, cleanup costs, governmental response costs, natural resource damages, property damages, personal injuries or penalties) arising out of, based on or resulting from (A) the presence, or release into the environment, of any Hazardous Materials at or from the Premises, or (B) circumstances forming the basis of any violation, or alleged violation, of any Environmental Law; and

(v)         the commencement and completion of any Remedial Work.

(e)           TENANT SHALL BE SOLELY RESPONSIBLE FOR AND SHALL DEFEND, REIMBURSE, INDEMNIFY AND HOLD EACH INDEMNIFIED PARTY HARMLESS FROM AND AGAINST ALL DEMANDS, CLAIMS, ACTIONS, CAUSES OF ACTION, ASSESSMENTS, LOSSES, DAMAGES, LIABILITIES (INCLUDING, WITHOUT LIMITATION, STRICT LIABILITIES), INVESTIGATIONS, WRITTEN NOTICES, COSTS AND EXPENSES OF ANY KIND (INCLUDING, WITHOUT LIMITATION, DIMINUTION IN PROPERTY VALUE AND REASONABLE EXPENSES OF INVESTIGATION BY ENGINEERS, ENVIRONMENTAL CONSULTANTS AND SIMILAR TECHNICAL PERSONNEL AND REASONABLE FEES AND DISBURSEMENTS OF COUNSEL), ARISING OUT OF, IN RESPECT OF OR IN CONNECTION WITH (I) TENANT'S BREACH OF ITS REPRESENTATIONS, WARRANTIES, COVENANTS OR OBLIGATIONS IN THIS LEASE, (II) THE OCCURRENCE OF ANY REGULATED ACTIVITY AT, ON OR UNDER THE PREMISES AT ANY TIME DURING OR PRIOR TO THE TERM OF THIS LEASE, (III) ANY ENVIRONMENTAL CLAIM WITH RESPECT TO THE PREMISES AGAINST ANY INDEMNIFIED PARTY OR ANY PERSON WHOSE LIABILITY FOR SUCH ENVIRONMENTAL CLAIM LANDLORD OR TENANT HAS OR MAY HAVE ASSUMED OR RETAINED EITHER CONTRACTUALLY OR BY OPERATION OF LAW (PROVIDED, THAT, EXCEPT FOR LIABILITIES OF LANDLORD ASSUMED OR RETAINED BY OPERATION OF LAW, WITHOUT THE CONSENT OF TENANT NO ENVIRONMENTAL LIABILITY CONTRACTUALLY ASSUMED OR CONTRACTUALLY RETAINED BY LANDLORD SHALL INCREASE THE LIABILITY OF TENANT UNDER THIS ARTICLE 34(e) IN EXCESS OF THAT LIABILITY OF TENANT OTHERWISE EXPRESSLY PROVIDED HEREUNDER), (IV) THE RELEASE, THREATENED RELEASE OR PRESENCE OF ANY HAZARDOUS MATERIALS AT, ON, UNDER OR FROM THE PREMISES, REGARDLESS OF HOW DISCOVERED BY TENANT, LANDLORD OR ANY THIRD-PARTY, EXCEPT TO THE EXTENT THAT TENANT CAN DEMONSTRATE THAT SUCH RELEASE, THREATENED RELEASE OR PRESENCE OCCURRED SOLELY SUBSEQUENT TO THE TERM OF THIS LEASE (PROVIDED, THAT, IF AT THE END OF THE TERM OF THIS LEASE, TENANT SHALL PROVIDE TO LANDLORD AN ENVIRONMENTAL ASSESSMENT OF THE PREMISES DATED NOT EARLIER THAN THE LAST DAY OF THE TERM OF THIS LEASE AND PREPARED BY A CONSULTANT REASONABLY ACCEPTABLE TO LANDLORD AND LENDER WHICH CONCLUDES THAT NO RECOGNIZED ENVIRONMENTAL CONDITIONS EXIST ON THE PREMISES AND, WITH RESPECT TO ANY PREVIOUSLY IDENTIFIED RECOGNIZED ENVIRONMENTAL CONDITIONS, WHICH EVIDENCES APPROPRIATE INVESTIGATION AND, IF NECESSARY, REMEDIATION OF ALL SUCH ENVIRONMENTAL CONDITIONS, THEN THIS SUBPART (IV) SHALL BE DEEMED TO READ AS FOLLOWS: "THE RELEASE, THREATENED RELEASE OR PRESENCE OF ANY HAZARDOUS MATERIALS AT, ON, UNDER OR FROM THE PREMISES AT ANY TIME DURING OR PRIOR TO THE TERM OF THIS LEASE REGARDLESS OF HOW DISCOVERED BY TENANT, LANDLORD OR ANY THIRD-PARTY"), (V) ANY REMEDIAL WORK REQUIRED TO BE PERFORMED PURSUANT TO ANY ENVIRONMENTAL LAW OR THE TERMS HEREOF WITH RESPECT TO MATTERS ARISING OR OCCURRING PRIOR TO OR DURING THE TERM, OR (VI) ANY MATTERS ARISING UNDER OR RELATING TO ANY ENVIRONMENTAL LAW AND RELATING TO THE TENANT OR THE PREMISES.

  

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(f)           Upon Landlord's request, at any time after the occurrence and during the continuation of an Event of Default hereunder or at such other time as Landlord has reasonable grounds to believe that Hazardous Materials (except to the extent those substances are permitted to be used by Tenant under Article 34(b) of this Part II in the ordinary course of its business and in compliance with all Environmental Laws) are or have been released, stored or disposed of on or around the Premises or that the Premises may be in violation of the Environmental Laws, Tenant shall provide, at Tenant's sole cost and expense, an inspection or audit of the Premises prepared by a hydrogeologist or environmental engineer or other appropriate consultant approved by Landlord and Lender indicating the presence or absence of the reasonably suspected Hazardous Materials on the Premises or an inspection or audit of the Premises prepared by an engineering or consulting firm approved by Landlord and Lender indicating the presence or absence of friable asbestos or substances containing asbestos on the Premises.  If Tenant fails to provide such inspection or audit within thirty (30) days after such request, Landlord may order the same, and Tenant hereby grants to Landlord and Lender and their respective employees, contractors and agents access to the Premises upon reasonable notice and a license to undertake such inspection or audit.  The cost of such inspection or audit, together with interest thereon at the Lease Default Rate from the date Tenant is provided with written confirmation of costs incurred by Landlord until actually paid by Tenant, shall be immediately paid by Tenant on demand.

  

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(g)           Without limiting the foregoing, where recommended by the Environmental Reports listed on Exhibit F hereto and/or any other “Phase I” or “Phase II” assessment and where the particular conditions on the Premises which formed the basis for such recommendation still exist, Tenant shall establish and comply with an operations and maintenance program relative to the Premises, in form and substance acceptable to Landlord and Lender, prepared by an environmental consultant reasonably acceptable to Landlord and Lender, which program shall address any Hazardous Materials (including, without limitation, asbestos-containing material or lead based paint) that may now or in the future be detected on the Premises.  Without limiting the generality of the preceding sentence, Landlord may require (i) periodic notices or reports to Landlord and Lender in form, substance and at such intervals as Landlord may specify to address matters raised in the Environmental Reports and/or a “Phase I” or “Phase II” assessment, (ii) an amendment to such operations and maintenance program to address changing circumstances, laws or other matters, (iii) at Tenant's sole cost and expense, supplemental examination of the Premises by consultants reasonably acceptable to Landlord and Lender to address matters raised in the Environmental Reports listed on Exhibit F hereto and/or a “Phase I” or “Phase II” assessment, (iv) access to the Premises upon reasonable notice, by Landlord or Lender, and their respective agents or servicer, to review and assess the environmental condition of the Premises and Tenant's compliance with any operations and maintenance program, and (v) variation of the operation and maintenance program in response to the reports provided by any such consultants.

(h)           The indemnity obligations of the Tenant and the rights and remedies of the Landlord under this Article 34 shall survive the expiration or termination of this Lease.

35.  TENANT'S INDEMNITY

 

Except to the extent that such liability is caused by the gross negligence or tortious act or willful omission of Landlord, its agents, contractors, or employees, and subject to Article 8, Tenant shall defend, indemnify and hold Landlord harmless from all costs, expenses (including reasonable attorneys fees), claims or demands of whatever nature arising from the following:

(i)            any willful, negligent or tortious act or omission on the part of Tenant, its agents, contractors or employees; or

(ii)           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 to be performed or complied with by Tenant, its sub-lessees, assignees, concessionaires, invitees, licensees or visitors, including, but not limited to, violations of applicable Laws; or

(iii)          any damage or injury occurring in the Premises during the Term

In case any action or proceeding is 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.

 

  

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36.  LANDLORD'S INDEMNITY

 

Except to the extent that such liability is caused by the negligence or tortious act or omission of Tenant, its agents, contractors, employees, sub-lessees, assignees, concessionaires, invitees, licensees or visitors and subject to Article 8, Landlord shall defend, indemnify and hold Tenant harmless from all costs, expenses (including reasonable attorneys fees), claims or demands of whatever nature arising from any grossly negligent or tortious act or willful omission on the part of Landlord, its agents, contractors, or employees.

In case any action or proceeding is brought against Tenant by reason of any such claim, Landlord, upon written notice from Tenant, shall, at Landlord's expense, resist or defend such action or proceeding.

37.  ESTOPPEL CERTIFICATE

 

Landlord and Tenant agree to deliver to each other, from time to time as reasonably requested in writing, and within a reasonable period of time after receipt of such request, an estoppel certificate certifying that this Lease is unmodified and in full force and effect (or if there have been modifications, that the Lease is in full force and effect as modified and stating the modifications), and the dates to which any Fixed Rent, Additional Rent, or other charges due hereunder have been paid in advance, if any, together with such other information as Landlord or Tenant may reasonably require with respect to the status of the Lease and Tenant's use and occupancy of the Premises.

Notwithstanding the foregoing, Tenant shall not be required to deliver an estoppel certificate in the case of any transfer of either the Premises, or of a controlling interest in Landlord, unless and until Landlord provides Tenant with a properly completed and executed Form W-9 or any successor form or any similar forms and/or such other information and/or forms from Landlord that are required by the Internal Revenue Service and/or any other federal, state or local taxing authority having jurisdiction to require the furnishing of any form or information by Landlord from time to time (or other evidence of Landlord’s United States Social Security Number or Federal Employer Identification Number).

38.  NOTICE OF LEASE

 

Upon the request of either party hereto, Landlord and Tenant agree to execute a short form Notice of Lease in recordable form, setting forth information regarding this Lease, including, if available, the dates of commencement and expiration of the Term and the Date of Rent Commencement.  Upon Tenant’s request, Landlord shall record said Notice of Lease at Tenant’s expense.  As used herein, the term “Notice of Lease” shall mean a short form notice of lease, or declaration or similar document suitable to protecting Landlord’s and Tenant’s interest hereunder.

  

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39.  NET LEASE; NON-TERMINABILITY

 

(a)           The obligations of Tenant hereunder shall be separate and independent covenants and agreements, and Fixed Rent, Additional Rent and all other sums payable by Tenant hereunder shall continue to be payable in all events, and the obligations of Tenant hereunder shall continue during the Term, unless the requirement to pay or perform the same shall have been terminated pursuant to the provisions of Article 9 of this Part II.  This is an absolutely net lease and Fixed Rent, Additional Rent and all other sums payable hereunder by Tenant shall be paid without notice or demand, and without setoff, counterclaim, recoupment, abatement, suspension, reduction or defense.  This Lease is the absolute and unconditional obligation of Tenant, and the obligations of Tenant under this Lease shall not be affected by any interference with Tenant's use of any of the Premises for any reason, including, but not limited to, the following:  (i) any damage to or destruction of any of the Premises by any cause whatsoever (except as otherwise expressly provided in Article 9 of this Part II), (ii) any Condemnation (except as otherwise expressly provided in Article 10 of this Part II), (iii) the prohibition, limitation or restriction of Tenant's use of any of the Premises, (iv) any eviction by paramount title or otherwise, (v) Tenant's acquisition of ownership of any of the Premises other than pursuant to an express provision of this Lease, (vi) any default on the part of Landlord under this Lease or under any other agreement, (vii) any latent or other defect in, or any theft or loss of any of the Premises, (viii) any violation of Article 29 of this Part II by Landlord (provided, that this Article 39(a)(vii) shall not limit Tenant's rights, if any, to seek injunctive relief against Landlord for violation of said Article 20 of this Part II), (ix) [Intentionally omitted], or (x) any other cause, whether similar or dissimilar to the foregoing, any present or future Law to the contrary notwithstanding.  All costs and expenses (other than depreciation, interest on and amortization of debt incurred by Landlord, and costs incurred by Landlord in financing or refinancing the Premises) and other obligations of every kind and nature whatsoever relating to the Premises and the appurtenances thereto and the use and occupancy thereof which may arise or become due and payable with respect to the period which ends on the expiration or earlier termination of the Term in accordance with the provisions hereof (whether or not the same shall become payable during the Term or thereafter) shall be paid and performed by Tenant.  Tenant shall pay all expenses related to the maintenance and repair of the Premises, and all taxes and insurance costs. This Lease shall not terminate and Tenant shall not have any right to terminate this Lease (except as otherwise expressly provided in Article 9 or Article 10 of this Part II), or to abate Fixed Rent or Additional Rent during the Term.

(b)           Landlord and Tenant agree that this Lease is a true lease and does not represent a financing arrangement. Each party shall reflect the transaction represented hereby in all applicable books, records and reports (including, without limitation, income tax filings) in a manner consistent with “true lease” treatment rather than “financing” treatment.

(c)           Tenant shall remain obligated under this Lease in accordance with its terms and shall not take any action to terminate, rescind or avoid this Lease, notwithstanding any bankruptcy, insolvency, reorganization, liquidation, dissolution or other proceeding affecting Landlord or any action with respect to this Lease which may be taken by any trustee, receiver or liquidator or by any court.

40.  MISCELLANEOUS

 

(a)           This Lease shall be governed and construed in accordance with the Laws of the state in which the Premises is located.

(b)           The headings of the Sections of Part I, and of the Articles of Part II, are for convenient reference only, and are not to be construed as part of this Lease.

  

33

  

(c)          The language of this Lease shall be construed according to its plain meaning, and not strictly for or against Landlord or Tenant; and the construction of this Lease and of any of its provisions shall be unaffected by any argument or claim that this Lease has been prepared, wholly or in substantial part, by or on behalf of Tenant.

(d)          Landlord and Tenant each warrant and represent to the other, that each has full right to enter into this Lease and that there are no impediments, contractual or otherwise, to full performance hereunder.

(e)          This Lease shall be binding upon the parties hereto and shall inure to the benefit of and be binding upon the heirs, executors, administrators, successors and assigns of Landlord and the successors and assigns of Tenant.

(f)           In the event of any suit, action, or other proceeding at law or in equity (collectively, “action”), by either party hereto against the other, by reason of any matter arising out of this Lease, the prevailing party shall recover, not only its legal costs, but also reasonable attorneys' fees (to be fixed by the Court) for the maintenance or defense of said action, as the case may be.

(g)          A waiver by either party of any breach(es) by the other of any one or more of the covenants, agreements, or conditions of this Lease, shall not bar the enforcement of any rights or remedies for any subsequent breach of any of the same or other covenants, agreements, or conditions.

(h)          This Lease and the referenced exhibits set forth the entire agreement between the parties hereto (and supersedes all prior agreements between the parties relating to the Premises, including letters of intent) and may not be changed or terminated orally or by any agreement unless such agreement shall be in writing and signed by both Landlord and Tenant.

(i)           If any provision of this Lease or the application thereof to any persons or circumstances shall to any extent be invalid or unenforceable, the remainder of this Lease or the application of such provision to persons or circumstances other than those to which it is held invalid or unenforceable shall not be affected thereby, and each provision of this Lease shall be valid and enforceable to the fullest extent permitted by Law.

(j)           The submission of this Lease for examination does not constitute a reservation of or agreement to lease the Premises; and this Lease shall become effective and binding only upon proper execution and unconditional delivery thereof by Landlord and Tenant.

(k)          Landlord shall not be construed or held to be a partner, joint venturer, or associate of Tenant in the conduct of its business; and the relationship between the parties hereto is, and shall at all times remain, that of landlord and tenant.

  

34

 

(l)           Landlord shall cooperate with Tenant to the extent necessary for Tenant to obtain any licenses, approvals, permits and/or other governmental authorizations necessary to operate, construct, improve and/or renovate the Premises for the purposes permitted by Article 3(a) of this Lease, including, without limitation, any buildings, signs, and/or improvements situated on or to be situated on the Premises or comprising a portion of the Premises, all subject to the terms of this Lease; provided, that in no event shall Landlord be obligated to incur (i) any costs or expenses in connection with its cooperation, and all such costs and expenses shall be paid by Tenant, or (ii) any indebtedness or monetary liabilities or obligations in connection with any such cooperation.  Without limitation of any other provisions of this Lease, Tenant shall indemnify, defend and hold Landlord harmless for, from and against any and all liabilities, losses, damages, penalties, costs, expenses, causes of action, suits, claims, demands or judgments of any nature whatsoever arising from or in connection with Landlord’s cooperation under this Article.  Without limitation of the foregoing, Landlord shall, upon request of Tenant, execute any applications for liquor licenses (for off-premises consumption) and other licenses, approvals, permits and other governmental authorizations and provide any and all information requested by the licensing and/or permitting authority with respect to Landlord, its officers, directors, members, managers, partners and/or shareholders which may be required in order for the Tenant to sell alcoholic beverages and other products at the Premises (provided the use shall remain as set forth in Article 3(a) of this Lease) if and to the extent not prohibited by Laws or matters of record and to obtain such licenses, approvals, permits and other governmental authorizations; provided, that Tenant shall maintain such information as confidential and will only disclose such information as and to the extent required to obtain such licenses, approvals and permits.

(m)         Landlord agrees, and any Lender, by accepting an assignment of this Lease, agrees, that if no default shall have occurred and be continuing, then upon request by Tenant (and only after all documentation required by Landlord and such Lender to consummate the relevant transaction shall have been provided to Landlord and such Lender), (i) to enter into or modify with Tenant, at Tenant’s expense, such easements, covenants, waivers, approvals or restrictions for utilities, parking or other matters as Tenant may desire for the operation of the Premises (or for the benefit of any property adjacent or proximate to the Premises presently or previously owned or ground leased by Tenant or an affiliate of Tenant) (collectively, “Easements”) or (ii) to dedicate or transfer, at Tenant’s expense,  minor non-essential unimproved portions of the Premises for road, highway or other public purposes to the extent such dedications or transfers are consistent with commercially reasonable development of the Premises (the “Dedications”); provided, that Landlord and such mortgagee of Landlord shall be obligated to take any such action only if (a) any such Easements or Dedications do not adversely affect the value of the Premises (or do not reduce the fair market value of the Premises by an amount greater than the amount of the consideration being paid to Landlord for such Easements or Dedications) or unreasonably render the use of the Premises dependent upon any other property or unreasonably condition the use of the Premises upon the use of any other property, (b) any such Easements or Dedications do not materially impair Tenant’s use or operation of the Premises and is not detrimental in any material respect to the proper conduct of Tenant’s business on the Premises, (c) Tenant advises Landlord of the amount of the consideration, if any, being paid for such Easements or Dedications and that Tenant considers the consideration, if any, being paid for such Easements or Dedications to be fair and adequate, and all such consideration is paid to Landlord if such consideration exceeds two percent (2%) of the amount set forth on Exhibit D to this Lease, (d) for so long as this Lease is in effect, Tenant will perform all obligations, if any, of Landlord under the applicable instrument and Tenant will remain obligated under this Lease in accordance with its terms, and (e) Tenant pays all out-of-pocket costs and expenses incurred by Landlord and such mortgagee of Landlord in connection with said Easements or Dedications including, without limitation, reasonable attorneys’ fees, all of which (items (a) - (e) above) Tenant shall certify to Landlord in writing (in the form of Schedule 3 to this Lease) at the time the request is made for such Easements or Dedications.  Tenant’s request shall also include (i) the authorized undertaking of Tenant and Guarantor, in form and substance reasonably satisfactory to Landlord, to the effect that Tenant and Guarantor will remain obligated hereunder and under the Guarantor’s guaranty of this Lease to the same extent as if such Easements or Dedications had not been made, (ii) confirmation of the lien priority of the Mortgage and such instruments, certificates, surveys, title insurance policy endorsements and opinions of counsel reasonably acceptable to Landlord or such mortgagee of Landlord as Landlord or such mortgagee of Landlord may reasonably request, (iii) a letter from an appropriate officer of Tenant, reasonably acceptable to Landlord and such mortgagee of Landlord addressed to Landlord and such mortgagee of Landlord establishing that the requirement of subpart (a) of the first sentence of this subsection (m) has been satisfied, and that the Easements or Dedications are not estimated to reduce the fair market value of the Premises by an amount greater than the amount of the consideration being paid to Landlord therefor, and (iv) such other instruments, certificates, title insurance policy endorsements and opinions of counsel as such mortgagee of Landlord may reasonably request.

  

35

 

 

(n)          Notwithstanding any other provision of this Lease to the contrary, in the event of the failure of any condition set forth herein or in the event of a default, any remedy expressly set forth herein shall be the sole and exclusive remedy of the party entitled to the same unless otherwise expressly provided.

(o)          Tenant represents and warrants to Landlord that each individual executing this Lease on behalf of Tenant is authorized to do so on behalf of Tenant, and that the entity(ies) or individual(s) constituting Tenant or which may own or control Tenant or which may be owned or controlled by Tenant are not, and during the Term of this Lease, shall not be, in violation of any Laws relating to terrorism or money laundering.  Landlord represents and warrants to Tenant that each individual executing this Lease on behalf of Landlord is authorized to do so on behalf of Landlord, and that the entity(ies) or individual(s) constituting Landlord or which may own or control Landlord or which may be owned or controlled by Landlord are not, and during the Term of this Lease, shall not be, in violation of any Laws relating to terrorism or money laundering.

(p)          Landlord and Tenant each hereby waive any right to trial by jury in any proceeding brought in connection with this Lease.

(q)          Time is of the essence of the payment and performance of the obligations of Landlord and Tenant under this Lease.

41.  COUNTERPARTS

 

This Agreement may be executed in separate counterparts, each of which shall be an original and all of which shall be deemed to be one and the same instrument.

42.  EXCULPATION OF LANDLORD

 

Anything contained herein to the contrary notwithstanding, any claim based upon liability of Landlord under this Lease shall be enforced only against the Landlord’s interest in the Premises and shall not be enforced against the Landlord individually or personally other than with respect to fraud or the misappropriation of insurance or Condemnation proceeds.  In no event shall any partner, shareholder, trustee, manager, member, beneficial owner, officer, director or other owner, agent or representative of Landlord have any liability under this Lease.

  

36

 

IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Lease on the day and year first above written.

(Signatures appear on the following pages)

  

37

 

LANDLORD’S SIGNATURE PAGE

Attached to and made a part of Lease dated November ____, 2009

ARC CVCSTIN001, LLC

Landlord

and

Hook-SupeRx, L.L.C.

Tenant

	  	  	
LANDLORD:

	  	  	  
	  	  	
ARC CVCSTIN001, LLC

	  	  	  	  
	
ATTEST/WITNESS:

	  	  	  
	  	  	
By:

	  
	  	  	
Name: 

	  
	  	  	
Title:

	  
	 	 	 	 
	  	  	  	  
	
Title:

	  	  	  

  

38

 

TENANT’S SIGNATURE PAGE

Attached to and made a part of Lease dated November ____, 2009

ARC CVCSTIN001, LLC

Landlord

and

Hook-SupeRx, L.L.C.

Tenant

	  	  	
TENANT:

	  	  	  
	  	  	
Hook-SupeRx, L.L.C.

	  	  	  	  
	
ATTEST/WITNESS:

	  	  	  
	  	  	
By: 

	  
	  	  	  	
Robert T. Marcello

	  	  	  	
Vice President

	  	  	  	  
	  	  	  	  
	
Title:

	  	  	  

CVS LEGAL APPROVAL: Susan E. Carlson

Mintz Levin        

  

39

 

SCHEDULE 1

Fixed Rate Extension Periods Under Clause (a) of Section 12 of Part I

	
Total

	  	
Term

	  	  	  
	
2

	  	
5 years each

  

40

 

 

SCHEDULE 2

 

Fixed Rent for Fair Market Rental Value-based Extension Periods

During any Fair Market Rental Value-based Extension Period described in Section 12(b) of Part I of this Lease (each, an “FMV Extension Period”), Fixed Rent shall be paid in an amount equal to one hundred percent (100%) of the Fair Market Rental Value of the Premises for such FMV Extension Period as determined by a Appraiser as hereinafter set forth in this Schedule 2; provided, however, in no event shall the Fixed Rent in any FMV Extension Period be less than the Fixed Rent for the previous Extension Period.  In the event Tenant exercises a Renewal Option to extend this Lease for an FMV Extension Period, then Landlord and Tenant shall attempt in good faith for a period of ten (10) days to agree upon a single Appraiser; and if Landlord and Tenant are so able to agree, the determination by such single Appraiser of a Fair Market Rental Value for the Premises for such FMV Extension Period shall be final and binding on the parties.  If Landlord and Tenant are unable to agree upon a single Appraiser within the above-stated ten (10) day period, then the following procedures shall apply:

 

(a)           Within seven (7) days after the conclusion of the ten (10) day period, each party shall submit to the other party an independent third-party Appraiser who must satisfy the qualifications for an Appraiser in the Lease, and neither of whom (i) may be a present or former employee or business associate (or a relative of any such employee or business associate) of either Landlord or Tenant, or (ii) shall have any other financial or economic interest in, or relationship with, Landlord or Tenant.

 

(b)           The two Appraisers so selected shall promptly proceed to determine the Fair Market Rental Value of the Premises (considering the other terms of this Lease) for such FMV Extension Period; and if the two Appraisers agree on such Fair Market Rental Value, their determination shall be final and binding on all parties.  If the two appraisers so selected are unable to agree on the Fair Market Rental Value but the appraisals are no more than ten percent (10%) apart, computed from the base of the higher appraisal, the two appraisals shall be averaged and the average shall constitute the Fair Market Rental Value of the Premises for such FMV Extension Period.  If the appraisals differ by more than ten percent (10%), such two Appraisers shall select a third Appraiser (who must satisfy the qualifications for an Appraiser in the Lease); and if the two Appraisers are unable to agree upon a third Appraiser within fifteen (15) days, then they shall in lieu thereof each select the names of two willing persons qualified to be Appraisers hereunder and from the four persons so named, one name shall be drawn by lot by a representative of Landlord in the presence of a representative of Tenant, and the person whose name is so drawn shall be the third Appraiser.  If either of the first two Appraisers fails to select the names of two willing, qualified Appraisers and to cooperate with the other Appraiser so that a third Appraiser can be selected by lot, the third Appraiser shall be selected by lot from the two Appraisers which were selected by the other Appraiser for the drawing.  Any vacancy in the office of the first two Appraisers shall be filled by the party who initially selected that Appraiser, and if the appropriate party fails to fill any vacancy within fifteen (15) days after such vacancy occurs, then such vacancy shall be filled by the other party.  Any vacancy in the office of the third Appraiser shall be filled by the first two Appraisers in the manner specified above for the selection of a third Appraiser.  The third Appraiser shall, within fifteen (15) days after having been selected, render his or her opinion of which of the amounts proposed by the original two Appraisers most closely represents the actual Fair Market Rental Value of the Premises for such FMV Extension Period, and the amount so selected by the third Appraiser shall be the Fair Market Rental Value of the Premises for such FMV Extension Period.  The fees of such Appraisers shall be paid by Tenant.

  

41

 

SCHEDULE 3

 

CERTIFICATE AND AGREEMENT

THIS Certificate and Agreement (this “Certificate”) is delivered by _______________, a ______________ (“Tenant”), pursuant to Section 40(m) of Part II of that certain Lease dated as of _____________, 200__, by and between _______________, as Landlord (herein so called), and Tenant (the “Lease”).

 

Tenant has prepared or had prepared a [description of instrument], a copy of which is attached hereto (the “Instrument”), to be filed of record with respect to the Premises (as defined in the Lease) and has requested, and does hereby request, that Landlord and any mortgagee of Landlord consent to, execute, acknowledge and deliver the Instrument which will be filed of record by Tenant, and that such mortgagee of Landlord subordinate its Mortgage (as defined in the Lease) and other loan documents to the Instrument or, in connection with any Dedication (as defined in the Lease), that such mortgagee of Landlord release its Mortgage with respect to the portion of the Premises that is the subject of such Dedication.  In order to induce Landlord and such mortgagee of Landlord to take such actions, and with the understanding that Landlord and such mortgagee of Landlord will rely on the matters set forth herein, Tenant does hereby represent, warrant and certify to, and agree with for the benefit of Landlord and such mortgagee of Landlord as follows:

 

1.            Tenant hereby consents to the Instrument and its effect upon the Premises and the Lease.

 

2.            Tenant hereby represents, warrants and certifies to Landlord and such mortgagee of Landlord that:

 

(a)        A true, correct and complete copy of the Instrument is attached to this Certificate;

 

(b)        The Instrument is not detrimental in any material respect to the proper conduct of Tenant’s business on the Premises;

 

(c)        The Instrument does not adversely affect the value of the Premises (or does not reduce the fair market value of the Premises by an amount greater than the amount of the consideration being paid to Landlord for such Instrument) or unreasonably render the use of the Premises dependent upon any other property or unreasonably condition the use of the Premises upon the use of any other property;

 

(d)        The Instrument does not materially impair Tenant’s use or operation of the Premises; and

 

(e)        The consideration, if any, being paid for such Instrument is $___________, and Tenant considers the consideration, if any, being paid for such Instrument to be fair and adequate, and if the consideration payable in connection with such Instrument exceeds two percent (2%) of the amount set forth on Exhibit D to the Lease, Tenant hereby waives any right to such consideration and agrees that all such consideration shall be paid to Landlord.

  

42

 

 

3.            Tenant agrees that for so long as the Lease is in effect, it will perform all obligations, if any, of Landlord under or pursuant to the Instrument and will remain obligated under the Lease in accordance with its terms.

 

4.            [IF APPLICABLE] Attached hereto is a true, correct and complete copy of an updated ALTA survey of the Premises prepared by [name of surveyor], or a site plan or other depiction (which must be acceptable to Landlord and such mortgagee of Landlord in their reasonable discretion), which shows the location on the Premises of all grants, releases, easements, dedications, transfers, petitions and other rights or encumbrances arising pursuant to the Instrument, or which otherwise indicates the effect of the Instrument on the Premises.

 

5.            [IF APPLICABLE] Attached hereto are true, correct and complete copies of certificates or agreements by [name of other property owners or governmental authorities required to approve the matters affected by the Instrument] necessary or appropriate to consent to, create or implement the matters contained in the Instrument.

 

6.            Attached hereto is the commitment of [name of title insurer] to issue an endorsement to the loan policy of title insurance delivered to Lender with respect to the Premises indicating that after filing the Instrument, [the Mortgage will remain a first lien on the Premises][OR, WITH RESPECT TO A DEDICATION:  the Mortgage will remain a first lien on the portion of the Premises remaining after the Dedication] subject only to the exceptions which were contained in such policy of title insurance and the Instrument.

 

7.            Tenant agrees that all of its obligations under the Lease shall continue notwithstanding the execution, acknowledgment, delivery and filing of the Instrument.

 

8.            Tenant agrees to immediately notify Landlord and any mortgagee of Landlord in writing in the event of any changes to any of the matters set forth in this Certificate.

 

9.            Tenant shall promptly pay all out-of-pocket costs and expenses incurred by Landlord and such mortgagee of Landlord in connection with said Instrument including, without limitation, reasonable attorneys’ fees.

  

43

 

IN WITNESS WHEREOF, the undersigned has executed this Certificate effective as of _______________, _____.

 

	
[NAME OF TENANT],

	  	  
	
a

	  
	  	  
	
By: 

	  
	
Its:

	  

[Acknowledgment Form to be modified as necessary to comply

with the laws of the state in which the Premises are located]

 

	
STATE OF                                                                    

	
§

	  	
§

	
COUNTY OF                                                                

	
§

BEFORE ME, on the ____ day of ______________, ______, personally appeared ______________________, __________________ of ____________________, a _________________________, and acknowledged that he executed the above instrument as his/her free act and deed and on behalf of said ___________________.

 

	  	  
	  	
Notary Public

 

My Commission Expires:                                                      

  

44

 

GUARANTOR’S CONSENT

 

This Guarantor’s Consent (this “Consent”) is a part of the foregoing Certificate and Agreement  The undersigned hereby executes and delivers this Consent to indicate and evidence the following:

 

1.           The undersigned consents to the Instrument and its effect upon the Premises, the Tenant and the Lease.

 

2.           The Corporate Guaranty executed by the undersigned as of                               , with respect to the Lease shall continue and remain in full force and effect notwithstanding the Instrument.

 

3.           The undersigned has executed and delivered this Consent in order to induce Landlord and any mortgagee of Landlord to consent to and to execute, acknowledge, deliver and file of record the Instrument, and the undersigned acknowledges that Landlord and such mortgagee of Landlord will rely on this Consent.

 

EXECUTED this _____ day of ______________, _____.

 

	
CVS CAREMARK CORPORATION,

	
a Delaware corporation

	  	  
	
By: 

	  
	
Its:

	  

  

45

 

 

EXHIBIT A

 

SITE PLAN

  

46

 

 

EXHIBIT B

 

PREMISES LEGAL DESCRIPTION

  

47

 

 

EXHIBIT C

 

PERMITTED ENCUMBRANCES

  

48

 

 

EXHIBIT D

 

EXHIBIT D AMOUNT

$5,783,242.35

  

49

 

 

EXHIBIT E

 

FORM OF SNDA

  

50

 

 

EXHIBIT F

 

ENVIRONMENTAL REPORTS

  

51

 

EXHIBIT T-1

NOTICE OF TRANSFER OF FEE INTEREST1

[MONTH, DATE OF NOTICE], 20[         ]

 

VIA CERTIFIED MAIL

 

[NAME OF THE CURRENT CVS TENANT]

c/o CVS Realty Co.

One CVS Drive

Woonsocket, RI 02895

	
Attn:  

	
Manager, Lease Administration

	  	
Store No. _________

 

	 	
Re:

	
[Amended and Restated]2 Lease by and between [NAME OF THE ORIGINAL LANDLORD3 NAMED IN THE LEASE] and [NAME OF THE ORIGINAL CVS TENANT4 NAMED IN THE LEASE] dated as of [MONTH, DATE OF LEASE], 20[     ] (the “Lease”), covering certain real property situated at ________________________________________ (the “Leased Property”)

 

To [NAME OF THE CURRENT CVS TENANT] (the “CVS Tenant”):

You are hereby advised that the [individual][legal entity]5 that is currently the Landlord of the above-referenced Leased Property (the “Current Landlord”) has transferred all [his][her][its]6 right, title and interest in and to the Leased Property effective [MONTH, DATE OF TRANSFER], 20[      ].

Please note the following relevant information regarding the above-referenced transfer:

	
  

	
1.

	
Full legal name of the new owner of the Leased Property (the “New Landlord”):  [LEGAL NAME OF NEW LANDLORD]

	
  

	
2.

	
Pursuant to Section [32 of Part II] of the Lease, please be advised that all future notices, demands, requests, consents, approvals, offers, statements and other instruments or communications directed to New Landlord under the Lease should be sent to the following address:

 

1 This Notice of Transfer must be accompanied by a properly completed Form W-9 

2 Use this format, if applicable 

3 Use the name of the original Landlord named in the Lease, if different from the “Current Landlord” (as defined herein) 

4 Use the name of the original CVS tenant named in the Lease, if different from the “CVS Tenant” (as defined herein) 

5 Choose one 

6 Choose one

  

52

 

[LEGAL NAME OF NEW LANDLORD]

[c/o [NAME OF ADDRESSEE]]

[STREET ADDRESS]

[CITY], [STATE]  [ZIP CODE+4]

Attention:              [NAME OF CONTACT INDIVIDUAL]

Telephone No.:     [CONTACT INDIVIDUAL’S TEL. NO.]

Facsimile No.:       [CONTACT INDIVIDUAL’S FAX NO.]

If you have any questions regarding the contents of this letter, please do not hesitate to contact [NAME OF CONTACT INDIVIDUAL] at the address or telephone number specified above.

IN WITNESS WHEREOF, the undersigned have executed this Notice of Transfer as of the date first written above.

	
[LEGAL NAME OF CURRENT LANDLORD]

	  	  
	
By: 

	  
	
Its:

	  
	  	  
	
[LEGAL NAME OF NEW LANDLORD]

	  	  
	
By: 

	  
	
Its:

	  

	
STATE OF                                                                    

	
§

	  
	  	
§

	
ss.

	
COUNTY OF                                                                

	
§

	  

I, ___________________, a notary public in and for said county in said state, hereby certify that ______________________, whose name as the ___________________ of _________________________, a ________________________, is signed to the foregoing instrument, acknowledged before me on this day that, being informed of the contents of such instrument, he/she as such officer and with full authority, executed the same voluntarily for and as the act of said _______________.

Given under my hand and official seal this _____ day of ________, 20____.

	  	  
	  	
Notary Public

[Notary Seal]

	  	
My commission expires:                                     

  

53

 

	
cc:

	
CVS Pharmacy, Inc.

	  	
One CVS Drive

	  	
Woonsocket, Rhode Island 02895

	  	
Attention:  Mark A. Barnabe, Tax Manager, Tax Department

	  	  
	  	
[NAME AND ADDRESS OF LENDER]

  

54

 

EXHIBIT T-2

NOTICE OF TRANSFER OF EQUITY INTERESTS IN LANDLORD7

[MONTH, DATE OF NOTICE], 20[      ]

 

VIA CERTIFIED MAIL

[NAME OF THE CURRENT CVS TENANT]

c/o CVS Realty Co.

One CVS Drive

Woonsocket, RI 02895

	
Attn:  

	
Manager, Lease Administration

	  	
Store No. [        ]

 

	 	
Re:

	
[Amended and Restated]8 Lease by and between [NAME OF THE ORIGINAL LANDLORD9 NAMED IN THE LEASE] and [NAME OF THE ORIGINAL CVS TENANT10 NAMED IN THE LEASE] dated as of [MONTH, DATE OF LEASE], 20[  ] (the “Lease”), covering certain real property situated at __________________________________ (the “Leased Property”)

 

To [NAME OF THE CURRENT CVS TENANT] (the “CVS Tenant”):

You are hereby advised that the direct or indirect owner of the equity interests (the “Current Equity Owner”) in the legal entity that is currently the Landlord of the above-referenced Leased Property (the “Property Owner”) has assigned all such equity interests in and to the Property Owner to [LEGAL NAME OF ASSIGNEE] (the “Assignee”) effective [MONTH, DATE OF ASSIGNMENT], 20[  ].

Please note the following relevant information regarding the above-referenced transfer:

	
  

	
1.

	
Full legal name of the Property Owner:  [LEGAL NAME OF PROPERTY OWNER]

	
  

	
2.

	
Full legal name of the Current Equity Owner:  [LEGAL NAME OF CURRENT EQUITY OWNER]

	
  

	
3.

	
Full legal name of the Assignee of the equity interests:  [LEGAL NAME OF ASSIGNEE]

	
  

	
4.

	
Pursuant to Section 32 of Part II of the Lease, please be advised that all future notices, demands, requests, consents, approvals, offers, statements and other instruments or communications directed to Landlord under the Lease should be sent to the following address:

 

7 This Notice of Transfer must be accompanied by a properly completed Form W-9 

8 Use this format, if applicable 

9 Use the name of the original Landlord named in the Lease, if different from the “Property Owner” (as defined herein) 

10 Use the name of the original CVS tenant named in the Lease, if different from the “CVS Tenant” (as defined herein)

  

55

 

[LEGAL NAME OF PROPERTY OWNER]

[c/o [NAME OF ADDRESSEE]]11

[STREET ADDRESS]

[CITY], [STATE]  [ZIP CODE+4]

Attention:             [NAME OF CONTACT INDIVIDUAL]

Telephone No.:    [CONTACT INDIVIDUAL’S TEL. NO.]

Facsimile No.:      [CONTACT INDIVIDUAL’S FAX NO.]

If you have any questions regarding the contents of this letter, please do not hesitate to contact [NAME OF CONTACT INDIVIDUAL] at the address or telephone number specified above.

IN WITNESS WHEREOF, the undersigned have executed this Notice of Transfer as of the date first written above.

	
[LEGAL NAME OF CURRENT EQUITY OWNER]

	  	  
	
By: 

	  
	
Its:

	  
	  	  
	
[LEGAL NAME OF PROPERTY OWNER]

	  	  
	
By:

	  
	
Its:

	  
	  	  
	
[LEGAL NAME OF ASSIGNEE]

	  	  
	
By: 

	  
	
Its:

	  

11 Use this format if the addressee is someone other than the “Property Owner” (as defined herein)

  

56

 

	
STATE OF                                                                    

	
§

	                                                                                     §	
ss.

	
COUNTY OF                                                                

	
§

I, ___________________, a notary public in and for said county in said state, hereby certify that ______________________, whose name as the ______________________ of __________________________, a ________________________, is signed to the foregoing instrument, acknowledged before me on this day that, being informed of the contents of such instrument, he/she as such officer and with full authority, executed the same voluntarily for and as the act of said _________________.

Given under my hand and official seal this _____ day of ________, 20____.

	  	  
	  	
Notary Public

	  	
My commission expires:                                     

[Notary Seal]

	
cc:

	
CVS Pharmacy, Inc.

	  	
One CVS Drive

	  	
Woonsocket, Rhode Island 02895

	  	
Attention:  Mark A. Barnabe, Tax Manager, Tax Department

	  	  
	  	
[NAME AND ADDRESS OF LENDER]

  

57

 

CORPORATE GUARANTY

 

In consideration of and as an inducement for the granting, execution and delivery of that certain Lease, dated as of November ___, 2009 (together with any amendments thereto, hereinafter called “Lease”), by ARC CVCSTIN001, LLC, a Delaware limited liability company, the Landlord therein named (whether one or more, collectively hereinafter called “Landlord”), to Hook-SupeRx, L.L.C., a Delaware limited liability company, the Tenant therein named (hereinafter called “Tenant”), with respect to that certain parcel of real property located in Coppell, Texas, which is more fully described on Exhibit A attached hereto, and in further consideration of the sum of One Dollar ($1.00) and other good and valuable consideration paid by Landlord to the undersigned, CVS Caremark Corporation, a Delaware corporation (hereinafter called “Guarantor”), Guarantor, intending to be legally bound, hereby irrevocably guarantees to Landlord (i) the full and prompt payment when due (whether at stated maturity, by acceleration, or otherwise) of all Fixed Rent and Additional Rent and any and all other sums and charges payable by Tenant under the Lease, and (ii) the full, faithful and prompt performance and observance of all the covenants, terms, conditions, and agreements contained in the Lease which are to be performed and observed by Tenant (all payment and performance obligations referred to in clauses (i) and (ii) being referred to herein, collectively, as the “Obligations”); and Guarantor does hereby become primary obligor, and not only surety to Landlord, for and with respect to all of the Obligations. Terms used herein with their initial letters capitalized which have been specifically defined in the Lease shall have the same meaning herein as in the Lease unless such terms are otherwise defined in this Corporate Guaranty (sometimes referred to herein as this “Guaranty”).

Guarantor further agrees to pay all damages and all costs and expenses that may arise in consequence of any default by Tenant under the Lease or in connection with the enforcement of any rights under this Guaranty (including, without limitation, all reasonable attorneys’ fees incurred by Landlord or caused by any such default and/or by the enforcement of this Guaranty). Without limiting any other provision of this Guaranty, the Guarantor’s liability under this Guaranty shall extend to and include all amounts which constitute part of the Obligations and would be owed by the Tenant under the Lease but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving the Tenant. The provisions of this paragraph shall survive the payment and performance of the Obligations, and the termination of this Guaranty.

 

This Guaranty is an absolute, irrevocable and unconditional guaranty of payment (and not merely of collection) and of performance. Guarantor's liability hereunder is direct and is independent of the Obligations, and may be enforced without Landlord being required to resort to any other right, remedy or security and this Guaranty shall be enforceable against Guarantor without the necessity for any suit or proceedings on Landlord’s part of any kind or nature whatsoever against Tenant or the joinder of Tenant in any suit or proceeding, and without the necessity of any notice of non-payment, non-performance or non-observance of any of the Obligations by Tenant or of any notice of acceptance of this Guaranty or of Landlord’s intention to act in reliance hereon or of any other notice or demand to which Guarantor might otherwise be entitled, all of which Guarantor hereby expressly waives; and Guarantor hereby expressly agrees that the validity of this Guaranty and the obligations of Guarantor hereunder shall in nowise be terminated, affected or impaired by reason of the assertion or the failure to assert by Landlord against Tenant, of any of the rights or remedies reserved to Landlord pursuant to the provisions of the Lease. The Guarantor further waives promptness and diligence with respect to the Obligations.

  

 

 

 

This Guaranty shall be a continuing Guaranty, and (whether or not Guarantor shall have notice or knowledge of any of the following) the liability and obligations of Guarantor hereunder shall be absolute and unconditional and shall remain in full force and effect without regard to, and shall not be released, discharged or in any way impaired by (a) any amendment or modification of, or supplement to, or extension or renewal of, the Lease or any assignment or transfer thereof; (b) any exercise or non-exercise of any right, power, remedy or privilege under or in respect of the Lease or this Guaranty or any waiver, consent or approval by Landlord with respect to any of the covenants, terms, conditions or agreements contained in the Lease or any indulgences, forbearances or extensions of time for performance or observance allowed to Tenant from time to time and for any length of time; (c) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition, liquidation or similar proceeding relating to Tenant, or its properties; (d) any limitation on the liability or obligation of Tenant under the Lease or its estate in bankruptcy or of any remedy for the enforcement thereof, resulting from the operation of any present or future provision of the federal or any state bankruptcy law or any other statute or from the decision of any court; (e) any sublease or transfer by Tenant or any assignment, mortgage or pledge of its interest under the Lease; (f) any termination of the Lease prior to the expiration of its Term (except that Guarantor shall not be liable for amounts that would have otherwise accrued under the Lease after proper termination of the Lease in compliance with the terms of Articles 9 or 10 of Part II of the Lease and payment of any and all amounts due to Landlord and Lender in connection with or related to such termination); (g) any agreement entered into between the Landlord and an assignee or subtenant of Tenant; (h) any security provided for the Obligations; or (i) any sale, assignment, transfer or conveyance (A) by Landlord of all or any portion of the Premises (as such term is defined in the Lease) or of Landlord's interest in the Lease, or (B) of any ownership interest in the Landlord.

 

All of Landlord’s rights and remedies under the Lease and under this Guaranty are intended to be distinct, separate and cumulative and no such right or remedy therein or herein mentioned is intended to be in exclusion of or a waiver of any of the others or of any rights or remedies provided by law. No termination of the Lease or taking or recovering of the premises demised thereby shall deprive Landlord of any of its rights and remedies against Guarantor under this Guaranty. This Guaranty shall apply to the Obligations of Tenant under the Lease as in effect on the date hereof as well as to the Obligations of Tenant under the Lease as it may be extended, renewed, amended, modified or supplemented.

 

The Guarantor hereby waives any requirement that the Landlord protect, secure, perfect or insure any security interest or lien or any property subject thereto or exhaust any right or take any action against any person or entity or any collateral (including any rights relating to marshaling of assets).

  

 

 

The Guarantor guarantees that the Obligations will be paid and performed strictly in accordance with the terms of the Lease, regardless of the value, genuineness, validity, regularity or enforceability of the Obligations, and of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the Landlord with respect thereto. The liability and obligations of the Guarantor under this Guaranty shall be absolute and unconditional, not subject to any reduction, limitation, impairment, termination, defense, offset, counterclaim or recoupment whatsoever (all of which are hereby expressly waived by the Guarantor) whether by reason of any claim of any character whatsoever, including, without limitation, any claim of waiver, release, surrender, alteration or compromise, or by reason of any liability at any time to the Guarantor or otherwise, whether based upon any obligations or any other agreements or otherwise, howsoever arising, whether out of action or inaction or otherwise and whether resulting from default, willful misconduct of Tenant, negligence or otherwise, and without limiting the foregoing irrespective of (and whether or not Guarantor shall have notice or knowledge of): (a) any lack of validity or enforceability of the Lease or of any agreement or instrument relating thereto; (b) any change in the time, manner or place of payment or performance of, or in any other term in respect of, all or any of the Obligations, or any other amendment or waiver of or consent to any departure from the Lease or any other agreement relating to any Obligations; (c) any increase in, addition to, exchange or release of, or non-perfection of any lien on or security interest in, any collateral or any release or amendment or waiver of or consent to any departure from or failure to enforce any other guarantee, for all or any of the Obligations; (d) any other circumstance which might otherwise constitute a defense available to, or a discharge of, the Tenant or the Guarantor; (e) the absence of any action on the part of the Landlord to obtain payment for the Obligations from the Tenant; (f) any insolvency, bankruptcy, reorganization or dissolution, or any proceeding of the Tenant or the Guarantor, including, without limitation, rejection of the guaranteed Obligations in such bankruptcy; (g) the absence of notice or any delay in any action to enforce any Obligations or to exercise any right or remedy against the Guarantor or the Tenant, whether hereunder, under any Obligations or under any agreement or any indulgence, compromise or extension granted; or (h) the termination or cessation of a corporate relationship between Guarantor and Tenant.

 

Guarantor further agrees that, to the extent that the Tenant or the Guarantor makes a payment or payments to the Landlord, which payment or payments or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to the Tenant or the Guarantor or their respective estate, trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then to the extent of such payment or repayment, this Guaranty and the advances or part thereof which have been paid, reduced or satisfied by such amount shall be reinstated and continued in full force and effect as of the date such initial payment, reduction or satisfaction occurred. The provisions of this paragraph shall survive the payment and performance of the Obligations and the termination of this Guaranty.

 

Until such time as all the Obligations have been fully and indefeasibly paid to Landlord and performed in full, Guarantor shall have no rights (direct or indirect) of subrogation, contribution, reimbursement, indemnification or other rights of payment or recovery from any person or entity (including, without limitation, the Tenant) for any payments made by the Guarantor hereunder, and Guarantor hereby waives and releases absolutely and unconditionally, any such rights of subrogation, contribution, reimbursement, indemnification and other rights of payment or recovery which it may now have or hereafter acquire. If any amount shall be paid to the Guarantor in violation of the preceding sentence and the Obligations shall not have been paid and performed in full, such amount shall be deemed to have been paid to the Guarantor for the benefit of, and held in trust for the benefit of, the Landlord and shall forthwith be paid to the Landlord to be credited and applied upon the Obligations, whether matured or unmatured, in accordance with the terms of the Lease. The Guarantor acknowledges that it will derive substantial direct and indirect benefit from the granting, execution and delivery of the' Lease by the Landlord and that the waiver set forth in this paragraph is knowingly made in contemplation of such benefits. The provisions of this paragraph shall survive the payment and performance of the Obligations and the termination of this Guaranty.

  

 

 

 

Guarantor represents and warrants to Landlord that (a) the execution and delivery of this Guaranty has been duly authorized by the Board of Directors of Guarantor and does not contravene any law, or any contractual or legal restriction, applicable to it, (b) no authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for its execution, delivery and performance of this Guaranty, (c) there are no conditions precedent to the effectiveness of this Guaranty that have not been satisfied or waived, (d) Tenant is an indirect wholly owned subsidiary of Guarantor, (e) Guarantor will, directly or indirectly, benefit from the transaction which is the subject of the Lease, and (f) neither the execution, delivery or performance of this Guaranty, nor compliance with the terms and provisions hereof, conflicts or will conflict with or results or will result in a default under or a breach of any of the terms, conditions or provisions of the Certificate of Incorporation or the Bylaws of the Guarantor or of any contract to which the Guarantor is a party or by which it is bound.

 

This Guaranty shall be legally binding upon Guarantor and its successors and assigns and shall inure to the benefit of Landlord and Lender (as such term is defined in the Lease) and each of their respective successors and assigns. Reference herein to Landlord shall be deemed to include Landlord and its successors and assigns. Reference herein to Tenant shall be deemed to include Tenant and its successors and assigns. Without limiting the generality of the foregoing, the Landlord may assign or otherwise transfer (whether as an outright assignment or transfer or as collateral) all or any portion of its rights and obligations under the Lease to any other person or entity (any such person or entity, a “Landlord Assign”) and such Landlord Assign shall thereupon become vested (on a non-exclusive basis, as an additional beneficiary) with all the benefits in respect thereof granted to the Landlord herein or otherwise.

  

 

 

THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PROVISIONS THEREOF (OTHER THAN THE PROVISIONS OF SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). GUARANTOR HEREBY SUBMITS TO PERSONAL JURISDICTION IN SAID STATE AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN SAID STATE (AND ANY APPELLATE COURTS TAKING APPEALS THEREFROM) FOR THE ENFORCEMENT OF GUARANTOR'S OBLIGATIONS HEREUNDER, AND WAIVES ANY AND ALL PERSONAL RIGHTS UNDER THE LAW OF ANY OTHER STATE TO OBJECT TO JURISDICTION WITHIN SUCH STATE FOR THE PURPOSES OF SUCH ACTION, SUIT, PROCEEDING OR LITIGATION TO ENFORCE SUCH OBLIGATIONS. GUARANTOR HEREBY WAIVES AND AGREES NOT TO ASSERT, AS A DEFENSE IN ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS GUARANTY, (A) THAT IT IS NOT SUBJECT TO SUCH JURISDICTION OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE IN THOSE COURTS OR THAT THIS GUARANTY MAY NOT BE ENFORCED IN OR BY THOSE COURTS OR THAT IT IS EXEMPT OR IMMUNE FROM EXECUTION, (B) THAT THE ACTION, SUIT OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, OR (C) THAT THE VENUE OF THE ACTION, SUIT OR PROCEEDING IS IMPROPER (BUT NOTHING HEREIN SHALL AFFECT THE RIGHT OF LANDLORD OR ANY LANDLORD ASSIGN TO BRING ANY ACTION, SUIT OR PROCEEDING IN ANY OTHER FORUM). IN THE EVENT ANY SUCH ACTION, SUIT, PROCEEDING OR LITIGATION IS COMMENCED, GUARANTOR AGREES THAT SERVICE OF PROCESS MAY BE MADE, AND PERSONAL JURISDICTION OVER GUARANTOR OBTAINED, BY SERVICE OF A COPY OF THE SUMMONS, COMPLAINT AND OTHER PLEADINGS REQUIRED TO COMMENCE SUCH LITIGATION UPON GUARANTOR AT GUARANTOR'S ADDRESS SET FORTH HEREIN.

 

Without the prior written consent thereto by Landlord and the Lender, Guarantor will not enter into any amendment to this Guaranty and without such consent no such amendment will be effective in any event. Further, Guarantor shall not enter into any amendment to this Guaranty, and no such amendment hereto shall be effective, unless prior to such amendment Landlord and Lender have received written confirmation from each nationally recognized statistical rating organization (including, without limitation, S&P and Moody's (as such terms are defined in the Lease), if applicable) which has issued a rating of any debt issued by the Lender or the Landlord which is secured by the Premises which are subject to the Lease that such amendment to this Guaranty will not result in a downgrade, withdrawal or qualification of the rating then assigned to such debt. No waiver of any provision of this Guaranty, and no consent to any departure by Guarantor herefrom, shall be effective without the prior written consent thereto by Landlord and Lender, and any waiver or consent for which such written consent is given shall be effective only in the specific instance and for the specific purpose for which given. No failure on the part of the Landlord to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. Guarantor will from time to time during the Term (as defined in the Lease), promptly following request of Landlord or Lender, cause an appropriate officer to certify in writing to Landlord and to Lender that a copy of this Guaranty is a true and correct copy of the original hereof, that there have been no amendments or modifications to this Guaranty (or if there have been amendments or modifications in accordance with the terms of this Guaranty, specifying same), and that this Guaranty remains in full force and effect in accordance with its terms.

 

The Guarantor will deliver to Landlord and Lender, promptly after their filing with the SEC, but in no event later than the period specified in subparagraph (a) below with respect to Guarantor's Form 10K and annual report or subparagraph (b) below with respect to the Guarantor's Form 10Q, copies of Guarantor's Form 10Q, 10K and annual report. At any time when Guarantor is not a reporting company under the Securities and Exchange Act of 1934, as amended, it will deliver to Landlord and Lender the following information:

  

 

 

(a) within ninety (90) days after the end of each fiscal year of Guarantor, a balance sheet of Guarantor and its consolidated subsidiaries as at the end of such year, a statement of profits and losses of Guarantor and its consolidated subsidiaries for such year, and a statement of cash flows of Guarantor, and its consolidated subsidiaries for such year, setting forth in each case, in comparative form, the corresponding figures for the preceding fiscal year in reasonable detail and scope and certified by independent certified public accountants of recognized national standing selected by Guarantor; and (b) within forty-five (45) days after the end of each of the first three (3) fiscal quarters of Guarantor a balance sheet of Guarantor and its consolidated subsidiaries as at the end of such quarter, statements of profits and losses of Guarantor and its consolidated subsidiaries for such quarter and a statement of cash flows of Guarantor and in each case, in comparative form, the corresponding figures for the similar quarter of the preceding year, in reasonable detail and scope, and certified to be true and complete by a financial officer of Guarantor having knowledge thereof; the foregoing financial statements all being prepared in accordance with generally accepted accounting principles, consistently applied (except as otherwise stated therein).

 

The Guarantor shall permit the Landlord and Lender and their representatives, at the expense of such person or entity, except in the event of an Event of Default under the Lease, in which case at Guarantor's expense, and upon reasonable prior notice to the Guarantor, to visit the principal executive office of the Guarantor, to discuss the affairs, finances and accounts of the Guarantor with the Guarantor's officers, and (with the consent of the Guarantor, which consent will not be unreasonably withheld) its independent public accountants, and (with the consent of the Guarantor, which consent will not be unreasonably withheld) to visit the other offices and properties of the Guarantor and each subsidiary, all at such reasonable times and as often as may be reasonably requested in writing.

 

GUARANTOR AND LANDLORD BY ITS ACCEPTANCE OF THIS GUARANTY) HEREBY MUTUALLY WAIVE TRIAL BY JURY IN CONNECTION WITH ANY DISPUTE ARISING HEREUNDER. The provisions of this paragraph shall survive the payment and performance of the Obligations and the termination of this Guaranty.

 

Notwithstanding anything to the contrary set forth in this Guaranty, in the event (1) an amendment to or modification of the Lease which increases or extends the obligations of Guarantor is entered into by a Tenant without the consent of Guarantor, and (2) at the time of such amendment to or modification of the Lease, the Tenant is not an affiliate of Guarantor, then any such amendment to or modification of the Lease shall be deemed to be a “Non-Approved Lease Amendment.”  In the event of a Non-Approved Lease Amendment (a) this Guaranty and the Guarantor's obligations hereunder shall continue in full force and effect with respect to the Lease (as modified by any amendments or modifications which are not Non-Approved Lease Amendments) as if no such Non-Approved Lease Amendment had occurred, (b) Guarantor shall not have, and not be deemed to have, guaranteed any additional obligations which are specifically included in such Non-Approved Lease Amendment, and (c) in no event shall Guarantor be relieved of any of its obligations hereunder with respect to Tenant's obligations under the Lease which existed without taking into account such Non-Approved Lease Amendment. As used in this paragraph and in the following paragraph, an affiliate of Guarantor shall mean a person or entity controlling, controlled by or under common control with Guarantor.

  

 

 

 

In the event that the Lease is assigned by Tenant, or all or a portion of the premises subject to the Lease are subleased, to a party (a “Non-Affiliate”) that is not an affiliate of Guarantor, the Landlord agrees (by its acceptance of this Guaranty) to use its good faith efforts to deliver to the Guarantor copies of all notices of non-payment, non-performance or nonobservance that the Landlord delivers to such Non-Affiliate; provided, however, the failure of the Landlord to deliver copies of such notices to the Guarantor shall not affect the liability of the Guarantor hereunder.

 

All notices and other communications provided for hereunder shall be in writing (including telecopier, telegraphic, telex or cable communication) and mailed, telecopied, telegraphed, telexed, cabled or delivered to it, if to the Guarantor, at its address at One CVS Drive, Woonsocket, Rhode Island 02895, Attention: General Counsel, and if to Landlord or any successor thereof or Landlord Assign at its address as may be designated by such party in a written notice to the other party. All such notices and other communications shall, when mailed, telecopied, telegraphed, telexed or cabled, be effective when deposited in the mails, telecopied, delivered to the telegraph company, confirmed by telex answerback or delivered to the cable company, respectively.

 

The Guarantor agrees that it shall not institute against, or join any other person or entity in instituting against, any Landlord Assign or any person or entity which is or was a creditor of or holder of any certificate or instrument issued by any Landlord Assign any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding under any federal or state bankruptcy or similar law for one (1) year and one (1) day after the latest maturing commercial paper note issued by such Landlord Assign or any such creditor of or holder of a certificate or instrument issued by such Landlord Assign is paid in full. Without prejudice to the survival of any other agreement of the Guarantor hereunder, the provisions of this paragraph shall survive the payment and performance of the Obligations and the termination of this Guaranty.

 

Except for provisions of this Guaranty which by their terms survive the termination hereof, this Guaranty shall terminate after all of the following shall have occurred: (i) all Fixed Rent, all Additional Rent and all other sums and charges payable by the Tenant under the Lease shall have been indefeasibly paid in full in cash; and (ii) all other Obligations of the Tenant under the Lease shall have been performed in full in strict accordance with the terms and provisions of the Lease.

 

IN WITNESS WHEREOF, Guarantor, intending to be legally bound hereby, has caused this Corporate Guaranty to be executed by its duly authorized officer and its corporate seal to be hereunto duly affixed, as of _______________, 2009.

 

	
CVS CAREMARK CORPORATION,

	
a Delaware corporation

	  	  
	
By: 

	  
	  	
Name: 

	  
	  	
Title:

	  

  

 

 

EXHIBIT A

 

LEGAL DESCRIPTIONEXHIBIT 10.31

 

LEASE AGREEMENT

by and between

ARC PANJOH54 LLC,

as Landlord,

and

PNC BANK, NATIONAL ASSOCIATION,

as Tenant

Dated: November 25, 2008

 

  

  

  

INDEX

	
Section 1.

	
Fundamental Lease Provisions; Defined Terms

	  	  1
	
Section 2.

	
Demise and Premises

	  	  5
	
Section 3.

	
Term

	  	  5
	
Section 4.

	
Rent and Payment

	  	  6
	
Section 5.

	
Payment of Impositions; Operating Expenses; Maintenance; Utilities

	  	  6
	
Section 6.

	
Use and Operations

	  	  9
	
Section 7.

	
Covenants, Representations and Warranties

	  	  10
	
Section 8.

	
Landlord’s Work / Tenant’s Work; Alterations; Signage

	  	  10
	
Section 9.

	
Mechanic’s or Construction Liens

	  	  12
	
Section 10.

	
Tenant’s Fixtures and Equipment; Landlord’s Waiver

	  	  13
	
Section 11.

	
Repairs; Compliance with Laws

	  	  13
	
Section 12.

	
Insurance

	  	  14
	
Section 13.

	
Damage or Destruction to Premises

	  	  15
	
Section 14.

	
Eminent Domain

	  	  16
	
Section 15.

	
Assignment and Subletting

	  	  18
	
Section 16.

	
Subordination and Non-Disturbance; Attornment; Estoppel Certificates

	  	  18
	
Section 17.

	
Non-Liability of Landlord

	  	  19
	
Section 18.

	
Indemnification of Landlord and Tenant

	  	  20
	
Section 19.

	
Defaults and Remedies

	  	  20
	
Section 20.

	
Bankruptcy; Insolvency

	  	  22
	
Section 21.

	
Landlord’s Right of Access to Premises

	  	  23
	
Section 22.

	
Environmental Provisions

	  	  23
	
Section 23.

	
Notices

	  	  25
	
Section 24.

	
Memorandum of Lease

	  	  25
	
Section 25.

	
End of Term

	  	  25
	
Section 26.

	
Leasehold Mortgage

	  	  25
	
Section 27.

	
General Provisions

	  	  26
	
Section 28.

	
Security Measures

	  	  29
	
Section 29.

	
Authority

	  	  29
	
Section 30.

	
Tenant Termination Right

	  	  29
	
Section 31.

	
Confidentiality

	  	  29
	
Signature Page

	  	  30

Exhibits

Exhibit A - Legal Description of Premises

Exhibit B - Site Plan of Premises and Property

Exhibit C - Form of Memorandum of Lease

Exhibit D - Form of Subordination, Non-Disturbance and Attornment Agreement

Exhibit E - PNC Leases

  

  

  

LEASE AGREEMENT

This Lease Agreement (“Lease”) is made and executed this 25th day of November, 2008, by and between ARC PANJOH54 LLC, a Delaware limited liability company (hereinafter designated as “Landlord”), and PNC BANK, NATIONAL ASSOCIATION, a national banking association (hereinafter designated as “Tenant”).

WITNESSETH:

WHEREAS, Landlord owns certain land and improvements thereon commonly known as 9 West Somerset Street, Raritan, Somerset County, State of New Jersey, also identified as Tax Map Parcel # Block 107, Lot 3, TOGETHER WITH all right, title and interest, if any, of Landlord in and to any easements benefiting the land and all appurtenances (hereinafter referred to as the “Premises”), all as more particularly described by metes and bounds on Exhibit A, which is attached hereto and as shown on the Site Plan attached hereto and made a part hereof as Exhibit B; and

WHEREAS, the Premises includes a building or buildings and site improvements, as shown on the Site Plan (the “Improvements”).

WHEREAS, the Premises and the Improvements are sometimes referred to together herein as the “Property;” and

WHEREAS, Landlord desires to lease the Property to Tenant and Tenant desires to lease the Property from Landlord, upon the terms and conditions set forth in this Lease.

NOW THEREFORE, in consideration of the mutual agreements herein contained, and intending to be legally bound hereby, Landlord and Tenant hereby agree and covenant to and with each other as follows:

Section 1.             Fundamental Lease Provisions; Defined Terms.

Section 1.1           Fundamental Lease Provisions.

	
  

	
(a)

	
Street address of Premises:

9 West Somerset Street

Raritan, NJ 08869

	
  

	
(b)

	
Original Term: Ten (10) years.

	
  

	
(c)

	
Renewal Terms: Four (4) Renewal Terms of Five (5) years each.

	
  

	
(d)

	
Delivery Date: November 25, 2008

	
  

	
(e)

	
Term Commencement Date: November 25, 2008

	
  

	
(f)

	
Rent Commencement Date: November 25, 2008

	
  

	
(g)

	
Termination Date: November 30, 2018, subject to the exercise of Renewal Terms provided herein.

	
  

	
(h)

	
Base Rent:

 

  

1

  

	
Period:

	 	
Annual Base Rent:

	 	 	
Monthly Base Rent:

	 
	  	 	 	 	 	 	 
	
Original Term

	 	 	 	 	 	 
	
Years 1-5

	 	$	80,000.00	 	 	$	6,666.67	 
	
Years 6-10

	 	$	88,000.00	 	 	$	7,333.33	 
	
First Renewal Term

	 	$	101,200.00	 	 	$	8,433.33	 
	
Second Renewal Term

	 	$	116,380.00	 	 	$	9,698.33	 
	
Third Renewal Term

	 	$	133,837.00	 	 	$	11,153.08	 
	
Fourth Renewal Term

	 	$	153,912.55	 	 	$	12,826.05	 

	
  

	
(i)

	
Address for notices:

To Landlord:

ARC PANJOH54 LLC

c/o American Realty Capital, LLC

106 York Road

Jenkintown, PA 19046

Attn: William M. Kahane

Tel: (215) 887-0354

Fax: (215) 887-2585

With a copy to:

WolfBlock LLP

1650 Arch Street

Philadelphia, PA 19103

Attn: Helene S. Jaron

Tel: (215) 977-2038

Fax: (215) 405-2938

To Tenant (for notices only):

PNC Bank, National Association

c/o PNC Realty Services

Two PNC Plaza-19th Floor

620 Liberty Avenue

Pittsburgh, PA 15222

ATTN: Leasing Manager

Tel: (412) 762-5544

Fax: (412) 762-5952

with copies to:

PNC Bank, National Association

Legal Division

One PNC Plaza - 21st Floor

249 Fifth Avenue

Pittsburgh, PA 15222

Attn: Real Estate Counsel

Tel: (412) 762-4886

Fax: (412) 762-4334

  

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PNC Bank, National Association

Legal Division

1600 Market Street

28th Floor

Philadelphia, PA 19103

Attn: Michael G. Balent, Esq., Chief Counsel

Tel: (215) 585-5029

Fax: (215) 585-8713

	
  

	
(j)

	
Broker(s): NONE

Section 1.2.           Defined Terms: The following terms, unless otherwise defined herein, shall have the meanings set forth below:

“Additional Rent” shall mean all amounts which Tenant is required to pay pursuant to this Lease in addition to Base Rent, as further defined in Section 4.3 of this Lease.

“Alterations” shall have the meaning set forth in Section 8.3 of this Lease.

“Base Rent” shall have the meaning set forth in Section 4.1 of this Lease.

“Building” shall have the meaning set forth in Witnesseth clause of this Lease.

“Delivery Date” shall mean the date Landlord acquires title to the Property.

“Environmental Complaint” shall have the meaning set forth in Section 22.2 of this Lease.

“Environmental Laws” shall have the meaning set forth in Section 22.1(a) of this Lease.

“Event of Default” shall have the meaning set forth in Section 19.1 of this Lease.

“First Renewal Term” shall have the meaning set forth in Section 3.2 of this Lease.

“Fourth Renewal Term” shall have the meaning set forth in Section 3.2 of this Lease.

“Full Replacement Cost” shall have the meaning set forth in Section 12.1(e) of this Lease.

“Governmental Authorities” shall mean the United States, the State of New Jersey, the County of Somerset and any political subdivision thereof, and any agency, department, commission, board, bureau or instrumentality of any of them or having jurisdiction over the Property.

“Hazardous Discharge” shall have the meaning set forth in Section 22.2 of this Lease.

“Hazardous Materials” shall have the meaning set forth in Section 22.1(b) of this Lease.

“Impositions” shall have the meaning set forth in Sections 5.1(a) and 5.2 of this Lease.

“Improvements” shall have the meaning set forth in the Witnesseth clause of this Lease.

“Intended Use” shall have the meaning set forth in Section 6.1 of this Lease.

  

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“Insurance Requirements” shall mean all terms of or incorporated by reference into any insurance policy covering or applicable to the Premises and/or Property or any part of either, and any insurance requirements noted in Section 12 of this Lease.

“Landlord” shall mean only the holder, for the time being, of Landlord’s interest under this Lease so that in the event of any transfer of title to the Premises, Landlord shall be freed and relieved of all obligations of Landlord hereunder accruing after such transfer, provided that such grantee, transferee or assignee has assumed and agreed to observe and perform all obligations of Landlord hereunder arising during the period it is the holder of Landlord’s interest hereunder.

“Landlord’s Work,” if any, shall have the meaning set forth in Section 8.1 of this Lease.

“Lease Interest Rate” shall mean interest at the rate of four percent (4%) above the prime rate as set forth in the Wall Street Journal, but in no event in excess of the maximum rate allowed by law.

“Legal Requirement” or “Legal Requirements” shall mean all federal, state and local laws; statutes; codes; acts; ordinances; orders; judgments; decrees; injunctions; rules; regulations; licenses; authorizations; health, safety, building, environmental and other requirements of all Governmental Authorities including, but not limited to, governmental departments, commissions, boards, courts, authorities and agencies, which now or at any time hereafter may be applicable to the Property or the Premises or any part thereof or interest therein.

“Non-Structural Alterations” shall have the meaning set forth in Section 8.3(a) of this Lease.

“Notice Address of Landlord” shall mean the address set forth in Section 1.1(i) of this Lease, or such other address as may be provided by Landlord by notice properly given to Tenant in accordance with Section 23 of this Lease.

“Notice Address of Tenant” shall mean the address set forth in Section 1.1(i) of this Lease, or such other address as may be provided by Tenant by notice properly given to Landlord in accordance with Section 23 of this Lease.

“Pre-Existing Condition” shall have the meaning set forth in Section 22.3(b) of this Lease.

“Premises” shall have the meaning set forth in the Witnesseth clause of this Lease.

“Property” shall have the meaning set forth in the Witnesseth clause of the Lease.

“Real Property Taxes” means all real property taxes and assessments currently in existence on the Premises, together with any and all taxes, assessments or imposts which may at some future time be levied by any governmental entity in total or partial substitution for current real property taxes including, without limiting the generality thereof, personal property taxes, leasehold improvement taxes, use and occupancy taxes, excise taxes and any other tax or assessment of any kind, but shall not include those exclusions from Impositions described in Section 5.2 of this Lease.

“Renewal Notice” shall have the meaning set forth in Section 3.2 of this Lease.

“Renewal Term(s)” shall have the meaning set forth in Section 3.2 of this Lease, and may refer to one or more such terms.

“Rent” shall have the meaning set forth in Section 4.4 of this Lease.

“Rent Commencement Date” shall mean the date that Landlord acquires title to the Property.

  

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“Second Renewal Term” shall have the meaning set forth in Section 3.2 of this Lease.

 

“Structural Alterations” shall have the meaning set forth in Section 8.3(a) of this Lease.

 

“Successor Landlord” shall have the meaning set forth in Section 16.1(c) of this Lease.

 

“Tax Reduction Action” shall have the meaning set forth in Section 5.1(d) of this Lease.

 

“Tenant” shall mean PNC Bank, National Association, and its successors, subtenants or assigns.

“Tenant’s Work,” if any, shall have the meaning set forth in Section 8.2(a) of this Lease.

“Term.” If and when the word “Term” is used herein, it shall refer to both the “Original Term” of ten (10) years, and any Renewal Terms that have been properly exercised, unless sooner terminated pursuant to any provision of this Lease.

“Term Commencement Date” shall mean the date Landlord acquires title to the Property.

“Termination” shall have the meaning set forth in Section 19.2(b) of this Lease.

“Termination Date” shall have the meaning set forth in Section 3.1 of this Lease.

“Third Renewal Term” shall have the meaning set forth in Section 3.2 of this Lease.

“Total Taking” shall have the meaning set forth in Section 14.1 of this Lease.

Section 2.             Demise and Premises. Landlord hereby leases to Tenant, and Tenant does hereby take and lease from Landlord, the Property TO HAVE AND TO HOLD for the Term and any Renewal Terms subject to the terms, covenants and conditions contained in this Lease, which each of the parties hereto expressly covenants and agrees to keep, perform and observe.

Section 3.             Term.

Section 3.1.          Original Term. The Original Term of this Lease shall be for a period of ten (10) years, and is the period of time during which Tenant has the right to occupy the Property (the “Term”), commencing on the Term Commencement Date. Unless sooner terminated pursuant to law or pursuant to any of the terms hereof, this Lease shall terminate at 11:59 PM on the last day of the month in which the tenth (10th) anniversary of the Term Commencement Date occurs (the “Termination Date”). The Term is subject to the exercise of a termination right by Tenant as described in Section 30 of this Lease and Renewal Terms as described in Section 3.2 of this Lease.

Section 3.2           Renewal Term. Tenant shall have the right, exercisable as hereinafter provided, to extend the Term of this Lease for four (4) successive periods of five (5) years each (the “First Renewal Term,” the “Second Renewal Term,” the “Third Renewal Term,” and the “Fourth Renewal Term,” and collectively the “Renewal Terms”). Each such Renewal Term is hereby granted upon the same covenants, terms and conditions as those provided in this Lease for the Term, except for the payment of Base Rent, which shall be governed by Section 4.2 of this Lease. If Tenant desires to extend the Term of this Lease for any Renewal Term, it shall provide Landlord with written notice (the “Renewal Notice”) no later than the day which is twelve (12) months prior to the expiration of the Term or the then current Renewal Term, as the case may be. If Tenant shall fail timely to provide the Renewal Notice, Landlord agrees to deliver to Tenant a written notice informing Tenant that it did not provide the Renewal Notice. After receipt of Landlord’s notice, Tenant shall have an additional fifteen (15) day period in which to deliver the Renewal Notice, and the Renewal Term shall then be considered to have been properly exercised if Tenant delivers the Renewal Notice within such fifteen (15) day period. The Base Rent per annum applicable to any Renewal Term shall be the amount indicated in Section 1.1(h) of this Lease. If the Term of this Lease is not extended for the First Renewal Term, Tenant shall have no right to extend the Term hereof for any subsequent Renewal Term.

  

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Section 4.             Rent and Payment.

Section 4.1.          Rent During Original Term. Landlord reserves, and Tenant covenants and agrees to pay to Landlord, without demand or notice, and without any setoff or deduction, except as specifically set forth herein, a base rental (the “Base Rent”), commencing on the Rent Commencement Date, in equal monthly installments, in an amount equal to the monthly Base Rent set forth in Section 1.1(h) of this Lease.

Section 4.2           Base Rent During Renewal Terms. If Tenant exercises its right to extend the Term of this Lease for the First Renewal Term and any Renewal Term thereafter, the Base Rent payable in each Renewal Term shall be paid in the same manner as that required during the Original Term, in an amount equal to the monthly Base Rent set forth in Section 1.1(h) of this Lease for each Renewal Term, as indicated.

Section 4.3.          Additional Rent. Any and all monetary obligations of Tenant hereunder, including but not limited to property taxes and assessments, whether special or otherwise, insurance, operating and maintenance expenses of the Property, late charges or other penalties, and any other expense or payment to be made by Tenant hereunder, whether payable to Landlord or otherwise (the “Additional Rent”), shall, for purposes of Landlord’s rights upon non-payment thereof and for all other purposes for which the same shall be relevant, be deemed in all respects to be Additional Rent payable hereunder, subject to the same duties and obligations and the same remedies of Landlord for the non-payment of the Base Rent.

Section 4.4.         Payment of Rent and Late Fee. The Base Rent shall be due and payable on the first (1st) day of each month, shall commence on the Rent Commencement Date, and shall be paid at the Notice Address of Landlord. Additional Rent shall be due and payable as required by the sections of this Lease that address payments that are due from Tenant. Base Rent and Additional Rent are referred to together in this Lease as “Rent.” Tenant shall pay to Landlord a late fee equal to four percent (4%) of any outstanding Rent that is received by Landlord later than the tenth (10th) day of the month in which said Rent was due.

Section 4.5.         Proration. If the Rent Commencement Date is other than the first (1st) day of a calendar month and/or the Termination Date is other than the last day of a calendar month, then the Base Rent for the calendar month in which the Rent Commencement Date or Termination Date occurs shall be prorated on a per diem basis based on a thirty (30) day month.

Section 5.         Payment of Impositions: Operating Expenses; Maintenance; Utilities.

Section 5.1.         Payment of Impositions / Property Taxes.

(a)         Tenant shall pay, as Additional Rent and before any fine, penalty, interest or cost may be added for non-payment, all Real Property Taxes, personal property taxes and assessments for the Property allocable to any period prior to the Term or during the Term of this Lease, and all water, sewer or other rents, rates and charges, excises, license fees, permit fees, inspection fees and other authorization fees and other extraordinary taxes or charges, foreseen or unforeseen, of every character for the Property (including all interest and penalties thereon) (the “Impositions” or “Property Taxes”), which at any time prior to or during or in respect of the Term and exercised Renewal Terms hereof may be assessed, levied, confirmed or imposed on or in respect of the Property, provided that (i) if any Imposition, by law, may at the option of the taxpayer be paid in installments, Tenant may pay the same in the maximum number of installments permitted by law, and Tenant shall be required to pay only those installments coming due during the Term and any Renewal Term hereof that is exercised by Tenant; and (ii) all Impositions for the fiscal or tax year in which the Rent Commencement Date shall occur or in which the Term or Renewal Term shall end shall be apportioned pro rata between Landlord and Tenant. Tenant shall immediately, upon the Term Commencement Date and as necessary thereafter, take all steps necessary to have all tax notices, invoices and assessments of all kind and type affecting the property and of each and every taxing authority having jurisdiction over the Property, sent directly to Tenant. Landlord shall provide the cooperation necessary to have the collecting authority send all pertinent tax bills directly to Tenant or its designee. All pertinent tax bills received by Landlord shall be immediately forwarded directly to Tenant or its designee to permit timely remittance in the normal course of business, provided, however, Landlord’s failure to do so shall not relieve Tenant of the responsibility for any late charges or penalties.

 

  

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(b)         Tenant shall deliver to Landlord copies of official receipts or other satisfactory proof evidencing payment of Impositions within twenty (20) days of receipt of same.

(c)          Upon the request of Tenant and at no cost to Landlord, Landlord shall execute such reasonable authorizations, which can be executed only by the owner of the Property, as Tenant may reasonably request, and shall take such other reasonable actions which can be taken only by the owner of the Property as Tenant may reasonably request, in connection with the Impositions, any payment thereof or any exemption therefrom now or hereafter in effect or to be applied for. All of the foregoing shall be at Tenant’s sole cost and expense, and Tenant shall promptly reimburse Landlord for such costs within thirty (30) calendar days of Tenant’s receipt of Landlord’s request for payment.

(d)         Tenant may initiate or prosecute, at its sole expense, any proceedings permitted by law for obtaining an abatement, reduction or withdrawal, or otherwise contesting the validity or amount, of any tax for which Tenant is alleged to be responsible for the Property or the Property (a “Tax Reduction Action”). If required by law, and after notifying Landlord in writing, and provided that a Tax Reduction Action is prosecuted at Tenant’s sole cost and expense, Tenant shall have the right to take such action in the name of Landlord, and Landlord shall cooperate with Tenant to the extent Tenant may reasonably require; provided, however, that Tenant shall indemnify and save Landlord harmless from and against any and all loss, cost, liability, damage and expense (including but not limited to attorneys costs and fees) as a result thereof.

(e)          Notwithstanding the foregoing, Tenant shall pay such Impositions prior to the foreclosure of any lien or any other proceeding commenced against the Property or Landlord.

Section 5.2.         Exclusions from Impositions. The term “Impositions” shall not include municipal, state or federal income taxes assessed against Landlord; municipal, state or federal capital levy, gift, estate, succession, inheritance, transfer, or mortgage taxes of Landlord; corporate excess profits or franchise taxes imposed upon any corporate owner of the Property; any income, profits or revenue tax, assessment or charge imposed upon or measured by the Rent payable under this Lease; or any transfer taxes or mortgage recording taxes incurred in connection with any financing obtained by Landlord.

 

  

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Section 5.3.         Operating Expenses; Maintenance. Commencing on the Rent Commencement Date, Tenant shall promptly pay and discharge all operating expenses of the Premises, Building and Property. It is the intent that Tenant shall contract for and directly incur and discharge all operating expenses of the Premises, Building, and the Property, and Landlord shall have no obligations with respect to any operating expenses in connection therewith. Tenant shall maintain the Building, Premises and Property in good condition and repair, subject only to ordinary wear and tear and damage by casualty, which is addressed in Section 13 of this Lease. Tenant shall at all times be responsible for and shall undertake the cleaning, sweeping, snow and ice removal, trash removal, janitorial services, elevator services, landscaping and any other service as may be required for the operation of Tenant’s business, and Tenant shall at all times be responsible for the maintenance and repair of all improvements on the Premises and the Property, to include maintenance and repair and replacement of capital items, including but not limited to structural repairs and replacements (i.e. slab, building structure, walls), roof repairs and replacements, elevator repairs and replacements, window repairs and replacements, parking lot repairs and replacements, and any other kind of repair or replacement to the Premises, Building or Property that may be necessary to maintain same to equal standards as are found in similarly situated buildings built at approximately the same time and to the same construction quality standards and architectural standards, and which are located in the area in and around Somerset County, New Jersey (collectively the “Operating Expenses”). Landlord and its agents, upon providing at least 24 hours notice to the local branch manager, shall have the right to enter and inspect the Premises, Building and Property to ensure that Tenant is in compliance with the maintenance and repair requirements noted above, and Tenant shall, within thirty (30) days of receipt of written notice from Landlord requesting same, make any and all repairs and/or replacements as may be required by the terms of this Lease. Notwithstanding the forgoing, in no event shall Tenant be required to replace major structural components of its Building or other Improvements (including but not limited to the roof, floor slab, walls, elevators, windows, door openings and sidewalks) or Building systems upon the termination of the Lease, regardless of the condition of such components and systems upon the termination of the Lease, as long as Tenant has maintained, repaired and replaced the Building, Premises and Property, and Building systems, as required during the Term pursuant to the terms set forth in this Lease Agreement. Tenant shall at all times keep the Property maintained and repaired and made all such replacements to standards set forth above, and shall take all reasonable measures so as to avoid damage or waste to the Property.

 

Section 5.4.         Utilities. Commencing on the Rent Commencement Date, Tenant shall undertake and be responsible for having all utilities metered and installed in its name at the Property(if they are not already so titled), and agrees to pay, on or before the date due, all charges for same directly to the respective utility companies. Such utilities may include gas, water (sanitary water and sprinkler), sewer, electricity, heat, power, telephone, cable and other communication service, or other utility or service used by, or rendered or supplied to, Tenant at the Premises, Building and Property throughout the Term.

Section 5.5.         Triple Net Lease; No Counterclaim; Abatement. This Lease is a triple net lease, and Tenant shall pay any and all costs, charges, taxes, assessments and other expenses of every character and nature, foreseen or unforeseen, for the payment of which Tenant is or shall become liable by reason of its respective estate, right, title or interest in the Premises and the Property, or which are connected with or arise out of the possession, use, occupancy, maintenance, addition to, repair, replacement or rebuilding of the Premises or the Property or any portion thereof including, without limitation, those specifically referred to in this Lease, except as may be otherwise provided by this Lease. Landlord shall be solely responsible for any costs associated with Landlord’s mortgage or deed of trust on the Property. This Lease shall not terminate except as expressly set forth in this Lease. Tenant shall remain obligated under this Lease in accordance with its terms and shall not take any action to terminate, rescind or avoid this Lease, notwithstanding any bankruptcy, insolvency, reorganization, liquidation, dissolution or other proceeding affecting Landlord or any action with respect to this Lease which may be taken by any trustee, receiver or liquidator or by any court. Except as otherwise expressly provided herein, Tenant waives all rights to terminate or surrender this Lease, or to any abatement or deferment of Rent or other sums payable hereunder. Tenant acknowledges and agrees that Tenant’s obligations under this Lease to pay Rent and all of Landlord’s obligations under this Lease are independent covenants, and, except as may be expressly set forth in this Lease, no default or failure of Landlord under this Lease, shall give to Tenant any offset or defense to the full and timely performance of its obligations under this Lease, entitle Tenant to any abatement of Rent or constitute any actual or constructive eviction of Tenant, Without limiting any of the foregoing, Tenant specifically covenants and agrees that, except as may be expressly set forth in this Lease, Tenant’s obligation to pay all Rent hereunder is not dependent upon the condition of the Property or the performance by Landlord of any of its obligations hereunder, and Tenant shall continue to pay all Rent, without abatement, demand, claim, setoff or deduction, notwithstanding any breach by Landlord of its duties or obligations hereunder. Notwithstanding the foregoing, in the event of a default under this lease by Landlord, Tenant shall have the right to bring legal and/or equitable actions against Landlord, including injunctive relief, if available.

  

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Section 6.             Use and Operations.

Section 6.1.          Use. Tenant shall have the right to use the Property for any legally permitted use, which includes but is not limited to any legally permitted or customary use of a financial or banking institution, or any legally permitted activity related thereto, and may include, without limitation, the operation of a retail branch banking office with drive-in facilities, an automatic teller machine or machines (“ATM(s)”) and night deposit boxes, or for general office purposes (the “Intended Use”). Tenant shall not use or occupy the Property or suffer or permit the Property or any part thereof to be used in any manner which would cause, or be likely to cause, physical damage to the Property or any part thereof; constitute a public or private nuisance; impair the appearance, character or reputation of the Property; discharge or cause the discharge of objectionable substances, fumes, vapors or odors; impair or interfere with the use of the Property by, or occasion discomfort, annoyance or inconvenience to Landlord; or cause Tenant to default in the observance and performance of any of its obligations to be observed and performed pursuant to the terms of this Lease. Notwithstanding the foregoing, Tenant shall not use any portion of the Property, Building or Property, and shall not assign its Lease or sublease any portion of any part of the Property, Building or Property for any of the following uses: (i) any Adult Uses (as hereinafter defined); (ii) any use which emits an obnoxious odor, noise or sound which can be heard or smelled outside of the Property; (iii) any fire sale, bankruptcy sale (unless pursuant to a court order) or auction house operations; (iv) any central laundry, dry cleaning plant or laundromat; provided, however, that this prohibition shall not be applicable to nominal supportive facilities for on-site service oriented to pickup and delivery by the ultimate consumer as the same may be found in retail shopping districts; (v) any automobile, truck, trailer or recreational vehicle sales, leasing, display or body shop repair operation; (vi) any bowling alley or skating rink; (vii) any movie theater or live performance theater; (viii) any mortuary or funeral home; (ix) any establishment primarily selling or exhibiting pornographic materials or performances or drug-related paraphernalia; (x) any flea market, amusement or video arcade, pool or billiard hall, car wash, or dance hall; (xi) any training or educational facility, including but not limited to: beauty schools, barber colleges, reading rooms (including religious reading rooms), places of instruction or other operations catering primarily to students or trainees rather than to customers; (xii) any gambling facility or operation, including but not limited to: off-track or sports betting parlor; table games such as black-jack or poker; slot machines, video poker/black-jack/keno machines or similar devices; or bingo hall; (xiii) any church, school, education facility or day care facility; (xiv) any fictitious going-out-of-business-sale, lost our lease sale or similarly advertised event; (xv) any catering or banquet hall; (xvi) any unlawful use; or (xvii) any pawn shop, gun shop, or tattoo parlor. For purposes hereof, the term “Adult Uses” shall mean any bookstore, movie theater, gentlemen’s club, strip club, sex shop or lingerie store, or similar uses, and catering only to adult audiences due to sexual or lewd content, all as determined by local zoning ordinances, if applicable, or, if there is no zoning restriction, then based on local community standards.

Section 6.2.          Operations of Tenant. Notwithstanding anything to the contrary in this Lease or otherwise, nothing shall be construed as an obligation for Tenant to open or operate its business in the Property. However, Tenant shall have the right, but not the obligation, to open and operate its business during the hours of operation desired by Tenant including, without limitation, on Saturdays and Sundays if permitted by law. Tenant shall have the right to remove its personal property including, without limitation, any ATM(s) and night deposit boxes, and cease operations on the Property at any time and at Tenant’s sole discretion. However, the right to cease to operate its business shall not affect Tenant’s obligation to pay all amounts due hereunder, and to perform all covenants and obligations hereunder except as otherwise provided in this Lease. Furthermore, in no event shall Tenant be liable to Landlord for damages as a result of operating other facilities in the area surrounding the Property, or any other area, nor shall Tenant be limited or restricted in any way from opening or operating other facilities in the area surrounding the Property, or any other area.

Section 6.3          Tenant Activities. Tenant shall have the right to operate in and on the Property and shall have access to the Property and Building on a 24 hour per day, 7 day per week basis. Tenant shall have the right from time to time to conduct marketing and promotional events for its business on the Property, such as “Grand Opening,” “One Year Anniversary” and “New Business Promotion” events, which events may be managed by either consultants engaged by Tenant or by Tenant’s employees.

  

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Section 6.4          Exclusive Use. During the Lease Term and any Renewal Terms, no other party on the Property (or on any adjacent property owned by Landlord) other than Tenant, shall use any portion of the Property or Building for the purpose of conducting the business of a commercial bank, savings bank, savings and loan association, credit union or mortgage bank, or other financial services organization, including, without limitation, the installation and operation of an ATM or ATMs and/or night deposit boxes, brokerage services, financial planners, title insurance companies and/or their agents, and insurance companies an/or insurance agents without the prior written consent of Tenant, which consent may be withheld in Tenant’s sole discretion.

Section 7.            Covenants, Representations and Warranties.

Section 7.1.         Possession. Landlord covenants to give Tenant possession of the Property on the Delivery Date.

Section 7.2          Representations and Warranties of Landlord. Landlord represents and warrants that the following are true and correct as of the Delivery Date:

(a)         No approval or authorization of any third party is required for Landlord to execute this Lease and to carry out Landlord’s obligations under the Lease.

Section 7.3          Possession by Tenant. Tenant agrees to accept possession of the Property on the Delivery Date in its “as is” condition, with any and all faults that may exist, subject to those representations noted in Sections 7.1 and 7.2 above.

Section 7.4          Representations and Warranties of Tenant. Except as otherwise provided in this Lease, Tenant represents and warrants to Landlord that Tenant accepts the Property in its “as is” condition existing as of the date of Tenant’s execution of this Lease, and all applicable zoning, municipal, county, and state laws, ordinances and regulations governing and regulating the use of the Property, including the issuance of building permits to modify any portion thereof, and Tenant accepts this Lease subject thereto and to all matters disclosed thereby and by any exhibits attached hereto. Tenant acknowledges that except as specifically set forth in this Lease, neither Landlord nor Landlord’s agent has made any representation or warranty as to the present or future suitability of the Premises, Building or Property for the conduct of Tenant’s business.

Section 7.5          Building Permits and other Governmental Permits. Tenant warrants, represents and agrees that its ability to obtain building permits and any other governmental permit that may apply to and be required in relation to Tenant’s i) proposed use within the Premises, Building and Property, including Tenant’s use and renovation of any drive-through facility or Building, and ii) any proposed renovation, remodel, reconstruction, demolition, and/or construction of the Premises, Building, Property, drive-through facility, and any portion of any component thereof, whether inside or outside of the Premises and/or Building, shall not affect the validity of this Lease in any way or delay the Delivery Date, and shall not give cause to terminate this Lease, nor to abate the Rent or any other monetary obligation of Tenant, or to affect any other obligation of Tenant, hereunder.

Section 7.6          Approvals. Tenant represents and warrants that it is not required to obtain the authorization of any person, corporation, lender, shareholder, investor, board, agency, governmental authority, or any other individual or entity of any kind prior to executing this Lease.

Section 8.            Tenant’s Work: Alterations; Signage.

Section 8.1.         Intentionally Omitted.

Section 8.2.         Tenant’s Work.

(a)         Tenant accepts the Premises, Building and Property in its “as is” condition, and agrees that any and all renovations, remodels, demolition, construction, and any other improvements and/or modifications made to the Premises, Building, Property, existing drive-thru facility, and/or to any portion of any component of any of the foregoing thereof (“Tenant’s Work”), shall be made at Tenant’s sole expense. Any and all building permits or any other governmental permits or permissions of any kind that are required for or associated with any Tenant Work shall be obtained at Tenant’s sole expense, and Tenant’s failure to obtain same shall not affect the validity of this Lease in any capacity, and shall not delay the Delivery Date, all as previously set forth in this Lease.

  

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(b)        Tenant shall not be required to obtain Landlord’s prior written consent to any modifications or renovations within the interior of the Premises and/or Building, including but not limited to any modifications to or replacements of Building systems. Any structural modification to the exterior of the Building shall be subject to the requirements of Section 8.3(a) of this Lease.

(c)         Notwithstanding the foregoing or anything to the contrary set forth in this Lease, and with the prior written consent of all applicable Governmental Authorities, Tenant shall be permitted to add or eliminate drivethrough lanes on the outside of the Building, or install or relocate automated teller machines and/or night depositories, and add, remove, or relocate a pneumatic tube system for the drivethrough area, and to reinforce the vault area in any manner required by Tenant’s business in its sole discretion, at any time and without Landlord consent.

(d)         To the extent Tenant elects to undertake any Tenant’s Work, Tenant shall commence and perform Tenant’s Work with diligence and continuity, in accordance with the Legal Requirements and Insurance Requirements. Tenant shall provide Landlord with a copy of all permits and approvals obtained with respect to Tenant’s Work upon Landlord’s written request. Upon completion of Tenant’s Work, Tenant shall promptly deliver to Landlord: (i) the final “as built” Plans and Specifications showing all changes or modifications, if plans and specifications are required by the nature of Tenant’s Work; and (ii) a final and unconditional certificate of occupancy, if a new or revised certificate is required.

(e)         During the Term of this Lease, Tenant shall directly incur and pay all expenses relating to any Improvements, and Landlord shall have no obligation with respect to any Improvements.

(f)          Any staging area that may be required for Tenant’s Work shall be contained within the boundaries of the Property.

(g)         Landlord agrees that in order for Tenant to operate its business, or to sublease the Property or a portion thereof, Tenant may require the reasonable cooperation of Landlord with respect to Alterations (as hereafter defined), and Landlord agrees to provide such cooperation, so long as such cooperation shall not require any expenditure on Landlord’s part (other than to review plans and documentation if so requested by Tenant).

Section 8.3.          Alterations Subsequent to Completion of Tenant’s Work.

(a)         Subsequent to completion of Tenant’s Work, Tenant shall have the right, at Tenant’s sole expense, and without any requirement of obtaining Landlord’s consent, to make such non-structural alterations, additions, modifications, renovations, improvements or installations (the “Non-Structural Alterations”) as may be necessary or desired by Tenant for Tenant’s use and operation of the Premises, Building or Property. In addition, Tenant may make additions, modifications, renovations, improvements or installations to the Property which are structural in nature, i.e., which involve an expansion or reduction of the size of the building or the erection, removal or relocation of structural walls, structural supports, floor slab or roof (the “Structural Alterations”) at Tenant’s sole cost and expense, with Landlord’s consent, not to be unreasonably withheld conditioned or delayed. In no event, however, shall Tenant damage or impair the structural integrity of the Building or Property, and Structural Alterations shall be accomplished such that they do not reduce the value, use or operation of the Property. All such Non-Structural Alterations and Structural Alterations as made by Tenant are herein collectively referred to as “Alterations.”

  

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(b)         Any Alterations shall be effected in a good and workmanlike manner and in compliance with all Legal Requirements and Insurance Requirements, and the requirements of Section 9. Landlord shall not be liable to any contractors, subcontractors, laborers, materialmen, suppliers or vendors for services performed or materials provided in connection with any Alterations, as more fully described in Section 9.

Section 8.4.         Signage and Satellite Dish.

(a)         Tenant shall have the exclusive right to erect signs in connection with its business at the Property (and in connection with the businesses of any assignees or subtenants) at Tenant’s sole expense, and Tenant shall be permitted the maximum number of signs of the maximum sizes allowable by applicable Governmental Authorities. All signs shall comply with applicable governmental rules and regulations and shall be properly constructed and maintained. Tenant shall remove such signs at the expiration of the Term or any Renewal Term and shall repair and repaint (if appropriate) the areas from which they are removed.

(b)         Tenant shall be responsible for any damage caused to the Property by the erection or maintenance on the Property of said signs, and any damage so caused shall be repaired promptly at Tenant’s sole cost and expense. In the event any sign erected by Tenant is removed during the Term or any Renewal Term, as applicable, or at the expiration or earlier termination thereof, Tenant shall at its sole cost and expense repair any damage caused by the removal.

(c)         Tenant may change Tenant’s logo, standard signage or trade name at any time, and may replace existing signage with new and/or additional signage, without Landlord’s consent.

(d)         Tenant and its subtenants may install a satellite dish on the exterior or roof of the Building or elsewhere on the Property at any time, provided that Tenant removes the dish at the end of the Term, and repairs any damage caused by its removal. Tenant shall take reasonable steps to shield the satellite dish from public view, if required by applicable zoning laws or regulations, and shall at all times comply with the requirements of Governmental Authorities.

Section 8.5.          Indemnification by Tenant. Tenant shall indemnify, defend and hold Landlord harmless from and against any and all bills for labor and materials supplied or claimed to have been supplied, any applicable sales tax thereon, and from and against any and all liens, bills or claims therefor, or against the Premises, Building and Property, or any portion thereof, and from and against all losses, damages, costs, expenses, suits and claims whatsoever, foreseen or unforeseen, ordinary or extraordinary, contingent or otherwise, in connection with Tenant’s Work, any Alterations, or any other improvements, modifications or other work that may be done to the Premises, Building and/or Property, it being understood herein that Landlord shall have absolutely no liability, cost or expense whatsoever with respect to the Premises, Building and Property, or to any Alterations, Structural Alterations, improvements modification or any other work done thereto.

Section 9.              Mechanic’s or Construction Liens.

Section 9.1.          Mechanic’s/Construction Liens Prohibited. Tenant shall not suffer any notice of unpaid balance, right to file lien, mechanic’s lien claim or construction lien claim to be filed against the Premises or Property by reason of work, labor, services or materials performed for or furnished to Tenant or to anyone holding the Property, or any part thereof, through or under Tenant. Tenant will promptly have the liens released and will indemnify the Landlord for same. In the event notice of any such lien is furnished to Tenant, Tenant shall notify Landlord of same within ten (10) business days; in the event notice of any such lien is furnished to Landlord, Landlord shall notify Tenant of same within ten (10) business days.

 

  

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Section 9.2.          Landlord’s Remedy for Tenant’s Breach. If Tenant shall fail to remove or discharge any notice of unpaid balance, mechanic’s lien claim or construction lien claim within sixty (60) days after notice or knowledge of the filing of same, then in addition to all other rights of Landlord hereunder, Landlord may, at its option, procure the removal or discharge of same. Any amount paid by Landlord for such purpose, including all reasonable attorney’s fees and other expenses therefor, together with interest thereon at the Lease Interest Rate, shall become due and payable by Tenant to Landlord as Additional Rent, and in the event of Tenant’s failure to pay therefor within fifteen (15) days after demand, the same shall be added to and be due and payable with the next month’s Base Rent.

Section 10.           Tenant’s Fixtures and Equipment; Landlord’s Waiver.

Section 10.1.        Tenant’s Fixtures and Equipment. All fixtures, equipment, and personal property of any nature which may be installed or placed in or upon the Property by Tenant shall remain the property of Tenant. Landlord waives any right it may have in said fixtures, equipment, and personal property. Tenant may assign, lien, encumber, mortgage or create a security interest in or upon its equipment, fixtures, leasehold improvements or other personal property in the Property without the consent of Landlord, provided that in no event shall Landlord ever be required to store Tenant’s fixtures, equipment and personal property (either on behalf of Tenant or its lender). Tenant may remove said property at any time during the Term. Tenant, at Tenant’s sole expense, shall be responsible to repair any damage to the Premises, Building and/or Property that is associated with the removal of Tenant’s fixtures, equipment and personal property.

Section 10.2.        Landlord’s Waiver. To the extent Landlord may have a lien on or security interest in the fixtures, equipment, inventory or other property of Tenant, by law or otherwise, Landlord hereby waives and agrees not to assert such lien or security interest.

Section 11.            Repairs; Compliance with Laws; Recorded Documents.

Section 11.1         Maintenance and Repairs by Tenant. Tenant shall keep the Premises, Building and Property in good order and condition, subject to ordinary wear and tear and damage by casualty which is addressed in Section 13 of this Lease, and shall promptly make all necessary or appropriate repairs, replacements and renewals thereof, whether interior or exterior, structural or non­structural, ordinary or extraordinary, foreseen or unforeseen, to include repairs and replacements of items ordinarily considered to be “capital repairs,” such as roof, windows, slab, walls, elevators, and any other items that would be required to be capitalized under generally accepted accounting principles, including any deferred maintenance, repairs and replacements existing as of the Term Commencement Date. All repairs, replacements and renewals by Tenant shall be substantially equal in quality and class to the original work found in the Premises, Building and Property, effected with due diligence, in a good and workmanlike manner, and in compliance with all Legal Requirements and Insurance Requirements. Landlord shall not be required to maintain, alter, repair, rebuild or replace the Premises, Building and/or Property, or any component or portion thereof, in any way. If Tenant fails for thirty (30) days after receipt of written notice to proceed (except to the extent such repairs cannot reasonably be completed in thirty (30) days) with diligence to make repairs required to be made by Tenant, the same may be made by Landlord, at Landlord’s option, at the expense of Tenant, and the expenses thereof incurred by Landlord (together with interest at the Lease Interest Rate) shall be collectible as Additional Rent within twenty (20) days of demand therefor. In the case of any repairs which cannot reasonably be completed within 30 days, Tenant shall proceed with such repairs to completion in a diligent manner. Subject to Tenant’s maintenance, repair and replacement obligations set forth in this Lease, Tenant shall not be required to replace major structural components of the Property (including, but not limited to, the roof, floor slab, walls, elevators, window and door openings) or Building systems upon the termination of the Lease, regardless of the condition of such components and systems at the termination of the Lease. Tenant shall, however, keep the Property in good repair and make all necessary repairs and replacements so as to avoid damage or waste to the Premises, Building and Property at all times during the Term of the Lease.

  

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Section 11.2.        Compliance with Laws. Tenant shall, at Tenant’s sole expense, promptly execute and comply with all requirements of all applicable governmental laws, orders, rules, regulations, ordinances or other directives or applicable codes of any nature of all Governmental Authorities including, but not limited to, the requirements of the Occupational Safety and Health Administration, the Americans With Disabilities Act, and of any municipal fire department or similar organization having jurisdiction over the Premises, concerning the Premises and/or the use and occupancy thereof including, but not limited to, procuring of any required certificates of occupancy and making of any and all repairs and replacements to the Premises that may be required to obtain same at Tenant’s sole cost and expense.

Section 11.3.        Recorded Documents. Tenant agrees to perform all obligations of Landlord and pay all expenses which Landlord or Tenant may be required to pay in accordance with, and to comply and cause the Property to comply in all respects with all of the terms and conditions of, any reciprocal easement agreement or any other agreement or document of record now affecting the Property or hereafter executed with Tenant’s prior written consent during the Term.

Section 12.            Insurance.

Section 12.1.        Tenant’s Insurance. From the Delivery Date and throughout the Term and any Renewal Terms, Tenant shall, at its own cost and expense, obtain and maintain in full force and effect:

(a)         Worker’s Compensation Insurance in amounts as required by law;

(b)         comprehensive public liability insurance covering the Premises, Building and Property, and insuring Landlord and Tenant, in minimum limits of Five Million Dollars ($5,000,000.00) per occurrence for general commercial liability, and Four Million Dollars ($4,000,000.00) for property damage and fire liability, which insurance shall name Landlord, and any persons or entities reasonably designated by Landlord, and the holder(s) of any mortgage(s) affecting the Premises, Building and Property as additional insureds thereunder;

(c)         during the course of construction of Tenant’s Work or any Alteration, Structural Alteration or other work performed by Tenant on or about the Property, builder’s completed value risk insurance against “all risks of physical loss,” covering the total value of work performed and equipment, supplies and materials furnished;

(d)         insurance with respect to all buildings, improvements, equipment and machinery constituting a part of the Premises, Building and Property, and insuring Landlord and Tenant against loss or damage by perils customarily included under standard “all risk” policies, including flood, windstorm, earthquake and terrorism to include coverage for fire, extended coverage, vandalism and malicious mischief, in an amount equal to one hundred percent (100%) of the then full replacement value (without deducting depreciation) of such buildings, improvements, equipment and machinery, including the cost of removal of debris (the “Full Replacement Cost”);

(e)         business interruption insurance in favor of Tenant, without a provision for co-insurance, in an amount sufficient to allow Tenant to pay Rent for the period of interruption, with a policy coverage limit of not less than the amount of Rent then payable by Tenant for eighteen (18) consecutive calendar months;

(f)          “boiler and machinery” insurance with respect to damage (not insured against pursuant to Section 10.1(a) hereof) to the boilers, pressure vessels or similar apparatus located on the Property for risks normally insured against under boiler and machinery policies; and

  

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(g)          Tenant shall, at Landlord’s request, not to be unreasonably made, provide, keep and maintain in full force and effect such other insurance for such risks and in such amounts as may from time to time be reasonably required by any mortgagee of the Property.

Landlord and Tenant and all parties claiming under them mutually release and discharge each other from all claims and liabilities arising from or caused by any casualty or hazard to the extent covered or required hereunder to be covered in whole or in part by insurance on the Property or in connection with property on or activities conducted on the Property, and waive any right of subrogation which might otherwise exist in or accrue to any person on account thereof.

Section 12.2.        Policies; Retentions. The maximum deductible shall be $500,000.00 for the policies set forth in Sections 12.1(b), (c), (d), (e) and (f)hereof. All insurance required to be maintained by Tenant hereunder shall be written by solvent insurance companies of recognized standing with a rating of at least A- or higher from Standard & Poors and AVIII or higher from A.M. Best and licensed to issue insurance in the State in which the Property is located. Subject to the terms of this Lease, Tenant shall have the right to self-insure, or carry self-insured retentions in reasonable amounts for any of the coverages required by this Lease at levels for institutions of comparable size and financial standing, provided Tenant maintains a tangible net worth of at least ONE HUNDRED MILLION DOLLARS ($100,000,000.00) and a rating of at least BBB- or higher from Standard & Poors. Notwithstanding anything to the contrary set forth in this Section 12.2, so long as the consolidated net worth of Tenant is equal to or greater than One Hundred Million Dollars ($100,000,000.00), Tenant has a rating of at least BBB- or higher from Standard & Poors, and Tenant meets the requirements in the next sentence, Tenant shall have the right to self-insure for any insurance required by this Section 12. Tenant’s right to self-insure shall be subject to the following (i) Tenant adopts a bona fide plan of self-insurance with adequate reserves based on practices acceptable in the insurance industry; (ii) the amount Tenant self-insures does not exceed ten percent (10%) of Tenant’s net worth as computed in accordance with generally accepted accounting principles consistently applied by Tenant; and (iii) Tenant provides Landlord with annual financial statements on the anniversary date of Tenant’s first self-insurance (unless Tenant is a publicly traded company). If Tenant’s net worth drops below $100,000,000.00 or Tenant’s rating drops below BBB- during any period of self-insurance, Tenant covenants to immediately notify Landlord and covenants to obtain the applicable insurance coverage required in Section 12. Any portion of any risk for which Tenant is self-insured shall be deemed to be an insured risk under this Lease, and Landlord and its beneficiaries, agents and employees shall be protected by Tenant in the same manner as if they were additional named insureds under a policy of insurance with a solvent, conventional, third-party insurer. To the extent of any deductible, Tenant shall be deemed to be covering the amount thereof under an informal plan of self-insurance. Tenant shall at all times during the Term and any Renewal Terms maintain in full force and effect and on deposit at Landlord’s office a certificate of insurance evidencing the insurance required to be carried by Tenant pursuant to this Lease. All such policies shall provide that they shall not be cancelable without at least thirty (30) days prior written notice to Landlord and shall name Landlord (and any mortgagees designated by Landlord) as additional insureds and loss payee. At least thirty (30) days prior to the expiration of any policy required to be maintained by Tenant hereunder, Tenant shall furnish Landlord with evidence of the reissuance of a policy continuing insurance in force as required by the Lease.

Section 12.3.        Hazardous Activities. Tenant shall not do anything, or suffer or permit anything to be done, in, on or about the Premises, Building and/or Property which shall: (i) subject Landlord to any liability or responsibility for injury to any person or property by reason of any activity being conducted in the Property; or (ii) be prohibited by the provisions of this Lease, or by any applicable law.

Section 13.           Damage or Destruction to Property.

Section 13.1.        Notice. If the Property or any part thereof shall be damaged by fire or other casualty, Tenant shall give prompt notice thereof to Landlord, and this Lease shall continue in full force and effect except as hereinafter set forth.

 

  

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Section 13.2.        Partial Damage. Subject to Section 13.3 below, if the Property is partially or wholly damaged or rendered partially or wholly unusable by fire or other casualty, on the Delivery Date or during the Term, the damages thereto shall be repaired by Tenant with all reasonable expedition and within one year from the date of such fire or other casualty, subject to delays due to adjustment of insurance claims, labor troubles and causes beyond Tenant’s reasonable control. Any repairs and/or reconstruction shall be made to equal or better quality standards than those found in the original Building, Premises and Property.

Section 13.3         Substantial Damage. If the Property are substantially damaged (to the extent of fifty percent (50%) or more of the replacement value), whether by casualty or otherwise, within the last eighteen (18) months of the Term or any Renewal Term, as the case may be, then, in any of such events, Landlord or Tenant may elect to terminate this Lease by written notice to the other given within ninety (90) days after such fire or casualty specifying a date for the expiration of this Lease. In such an instance, the termination date shall be agreed upon in writing in an amendment to this Lease, which shall provide i) that Tenant shall assign all insurance proceeds (of it Tenant is self-insured, an amount equal to the replacement value) applicable to the damage to Landlord and Tenant shall pay to Landlord the full amount of any deductible associated with all relevant insurance claims, and ii) that the termination date shall not be more than sixty (60) days after the giving of such notice, and upon the date specified in such amendment. Upon the termination date specified in the amendment, the Term or any Renewal Term, as the case may be, shall expire as fully and completely as if such date were the date set forth above for the expiration of this Lease. Tenant shall then vacate the Property, without prejudice, however, to Landlord’s rights and remedies against Tenant under the provisions of this Lease in effect prior to such termination. Any Rent owing shall be paid up to such date, and any payments of Rent made by Tenant that were on account of any period subsequent to such date shall be returned to Tenant. Notwithstanding the foregoing, Tenant shall have the right to nullify Landlord’s termination of the Lease pursuant to this Section 13.3 by agreeing to rebuild the Improvements, which it shall then do in the same manner as set forth in Section 13.2 of this Lease, and during the final eighteen (18) months of the Term if there is a Renewal Term which remains unexercised, by providing written notice to Landlord of the exercise of a Renewal Term as provided pursuant to Section 3.2 of this Lease. Such notice shall be given by Tenant no later than thirty (30) days following Tenant’s receipt of a notice of termination of Landlord pursuant to this Section 13.3. Unless Landlord or Tenant shall serve a termination notice as provided for herein, Tenant shall make the repairs and restorations with all reasonable expedition, subject to delays due to adjustment of insurance claims, labor troubles and causes beyond Tenant’s control, and this Lease shall continue in full force and effect. In the event of a termination of the Lease pursuant to this Section 13.3, any and all insurance proceeds (or, if Tenant is self-insured, an amount equal to the replacement value) allocable to Tenant’s Improvements, but excluding its personal property and fixtures, shall be paid to Landlord.

Section 13.4         Tenant’s Property. Tenant acknowledges that Landlord will not carry insurance on Tenant’s furniture and/or furnishings or any fixtures or equipment, and agrees that Landlord will not be obligated to repair any damage thereto or replace the same. Landlord shall not be liable for any inconvenience or annoyance to Tenant or injury to the business of Tenant resulting in any way from such damage or destruction of the Property.

Section 13.5         No Abatement of Rent. It is understood that there shall be no abatement of Rent, to include Tenant’s payment of Property Taxes, Insurance and operating expenses, for any period of time during which the Property shall be in a damaged condition, whether or not the Property shall be partially or wholly unusable.

Section 14.           Eminent Domain.

Section 14.1         Total Taking. In the event that any public authority or agency holding the power of eminent domain under applicable law shall at any time during the Term condemn, or acquire title in lieu of condemnation to, all or substantially all of the Property (a “Total Taking”), this Lease shall terminate and expire as of the date upon which title shall vest in such authority, and Tenant shall pay Rent only to the time of such vesting of title. Any dispute whether a taking is a Total Taking shall be resolved by arbitration in accordance with the rules of the American Arbitration Association (“AAA”) and decided by three neutral arbitrators experienced in such matters and appointed by the AAA, with the cost to be divided equally between Landlord and Tenant.

  

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Section 14.2         Partial Taking. If there shall be a partial taking or condemnation of the Property (including any taking of parking on the Property), which shall not substantially prevent the Tenant’s use of the Property for purposes of its business, and if the then applicable zoning and other laws permit restoration of the untaken part of the Property, the award or proceeds of the taking or condemnation shall be used for such restoration, and this Lease shall thereafter continue as to the untaken part. In such an instance the Base Rent shall remain unchanged, unless the partial taking has resulted in a reduction in the building area leased to Tenant, in which case Tenant shall be entitled to a reduction in the Base Rent in an amount which bears the same ratio to the Base Rent payable immediately prior to such condemnation pursuant to this Lease as the untaken square footage of the Building bears to the square footage of the Building immediately before the taking. If such laws shall not permit restoration and/or if such award or proceeds shall be insufficient for purposes of restoration of the Property, or in the event Tenant can reasonably demonstrate that it is unable reasonably to operate its business due to a partial taking of the Building or partial taking of parking on the Property, then Tenant shall have the right to terminate this Lease upon written notice to Landlord given within ninety (90) days of the taking, which notice shall specify a date for expiration of this Lease not more than sixty (60) days after the giving of such notice. Upon such date specified, this Lease and the Term shall be terminated.

Section 14.3         Restoration by Tenant. If there shall be a partial taking and this Lease shall continue as to the remaining part of the Property, Tenant, as promptly as practicable, shall restore such remaining part as nearly as may be practicable to its former condition, but only upon receipt of, and to the extent of, the award made on account of such partial taking.

Section 14.4         Disposition of Proceeds. All compensation awarded or paid upon such total or partial taking of the land comprising the Property shall belong to and be property of the Landlord. Notwithstanding the foregoing, if Tenant is permitted by law (at the same time as Landlord is permitted to assert its claim) to assert a claim against the condemning authority enforcing the condemnation for losses sustained by the Tenant as a result of the condemnation, Tenant shall be permitted to do so only so long as such claim does not diminish Landlord’s recovery. Landlord hereby waives any rights it might have to make a claim for the Tenant’s Improvements (defined as any modifications to the Premises, Building and Property noted as Tenant’s Work in Section 8.2, or noted as subsequent Alterations or Structural Alterations) and Tenant’s leasehold estate, and shall assign to Tenant any claims Landlord may have for the foregoing. All condemnation proceeds applicable to Tenant’s Improvements shall be split between Landlord and Tenant with Landlord entitled to a fractional amount equal to the number of months that have expired from the date hereof to the date of condemnation as the numerator with the denominator being three hundred sixty (360) (which is the number of months in the Original Term and all Renewal Terms), and the Tenant shall be entitled to the balance of the proceeds. In the event Tenant is not entitled to assert a separate claim, Landlord and Tenant shall jointly file a claim asking for separate awards with respect to their respective interests. If the condemning authority will not establish separate awards, and Landlord and Tenant cannot agree upon the distribution and use of a unified award, the dispute shall be submitted to arbitration in accordance with the rules of the AAA and decided by three neutral arbitrators experienced in such matters and appointed by the AAA, with the cost to be divided equally between Landlord and Tenant. If this Lease is not terminated by reason of the taking, then all proceeds allocable to Tenant’s Improvements shall be utilized for restoration of the Property, and any sum remaining after reconstruction shall be the property of Tenant.

Section 14.5         Independent Claim by Tenant. Anything hereinabove to the contrary notwithstanding, it is understood that Tenant may make such independent claim as the law may allow with respect to Tenant’s leasehold estate, moving expenses, relocation expenses, actual direct losses in tangible personal property and the like as long as such independent claim does not diminish Landlord’s recovery.

Section 14.6         Notice. Landlord and Tenant shall give each other prompt written notice of any eminent domain proceedings with respect to the Property of which it is aware.

  

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Section 15.           Assignment and Subletting.

Section 15.1         Permitted Assignments. Tenant shall have the right in its sole discretion to sell, assign, mortgage, pledge, or, in any manner, transfer or encumber this Lease or any estate or interest hereunder, or sublet the Property or any part thereof, provided that Tenant remains fully and primarily liable for the payment of all sums and the performance of all obligations under this Lease by any such assignee or subtenant, and provided that any such assignee or subtenant otherwise complies with the terms of this Lease. In the event of any such sale, assignment, mortgage, pledge, transfer, encumbrance or subletting, Tenant nevertheless shall remain fully and primarily liable for the payment of the Rent, Additional Rent (including operating expenses), and for the performance of Tenant’s other covenants and obligations hereunder, including maintenance, repair and replacement of the Premises, Building and Property and every portion thereof. In the event of an assignment of this Lease, the assignee shall assume the due performance of all of Tenant’s obligations under this Lease, except that Tenant shall remain fully and primarily liable for the performance of every term and condition of this Lease, including but not limited to Rent, Additional Rent, and performance of all maintenance, repair and replacement requirements hereunder. No assignment shall be valid or effective in the absence of such assumption. A true copy of such assignment and the original assumption agreement shall be delivered to Landlord within thirty (30) days of the effective date of such assignment. Any consideration received by Tenant in connection with the assignment of this Lease or the sublease of the Premises or any portion of the Property shall belong to and be the sole property of Tenant.

Section 15.2         No Release. Notwithstanding any assignment of this Lease or subletting of all or part of the Property, Tenant shall remain fully and primarily liable for the full performance of all of the terms and provisions of this Lease.

Section 15.3         Landlord Assignment. Landlord shall have the right to transfer, assign and convey, in whole or in part, any or all of the right, title and interest to the Property, provided such transferee or assignee shall be bound by the terms, covenants and agreements herein contained, and shall expressly assume and agree to perform the covenants and agreements of Landlord herein contained.

Section 16.           Subordination and Non-Disturbance; Attornment; Estoppel Certificates.

 

Section 16.1                Subordination to Mortgages.

(a)          This Lease is and shall be subject and subordinate in all respects to all present and future mortgages, which may now or hereafter affect the Property, to each and every advance made or to be made under such mortgages, and to all renewals, modifications, replacements and consolidations of such mortgages or leases so long as Landlord’s lender shall agree in writing that it will not disturb Tenant’s possession under this Lease so long as Tenant remains in compliance with this Lease. This Section 16.1 shall be self-operative and no further instrument of subordination shall be required. Upon Landlord’s request and in confirmation of such subordination, Tenant shall promptly execute and deliver a subordination, non-disturbance and attornment agreement substantially in the form attached hereto as Exhibit D, or as otherwise may be required by any lender of the Property, but subject to the reasonable comments of Tenant.

(b)         If any act or omission of Landlord would give Tenant the right to cancel or terminate this Lease, or give Tenant any right of set-off, dishonor or protest, or give Tenant any right to claim a partial or total eviction, Tenant shall not exercise such right: (i) until it has given written notice of such claim being asserted against Landlord and each mortgagee whose name and address shall previously have been furnished to Tenant; and (ii) until a reasonable period for remedying such act or omission shall have elapsed following the giving of such notice and following the time when such mortgagee or Landlord shall have become entitled under such mortgage or lease, as the case may be, to remedy the same (which reasonable period shall in no event be less than thirty (30) days following the period to which Landlord would be entitled under this Lease or otherwise, after similar notice, to effect such remedy).

  

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(c)          If the holder of a lease or mortgage referred to in this Section 16.1 shall succeed to the rights of Landlord under this Lease, then at the request of such party so succeeding to Landlord’s rights (the “Successor Landlord”), Tenant shall attorn to and recognize such Successor Landlord as Tenant’s landlord under this Lease, and shall promptly execute and deliver a subordination, non-disturbance and attornment agreement substantially in the form attached hereto as Exhibit D, or as otherwise may be required by any lender of the Property but subject to the reasonable comments of Tenant, to evidence such attornment. Upon such attornment, this Lease shall continue in full force and effect as a direct lease between the Successor Landlord and Tenant and upon all of the terms, conditions and covenants as are set forth in this Lease, except that the Successor Landlord shall not be: (i) liable for any previous act or omission of Landlord under this Lease; (ii) subject to any offset not expressly provided for in this Lease; (iii) bound by any previous modification of this Lease, unless such modification or prepayment shall have been expressly approved in writing by the Landlord and any mortgagee of whom Tenant had notice; (iv) liable for the return of any security deposited under this Lease, unless the same shall have been actually received by such Successor Landlord; or (v) bound by any prepayment of more than one (1) month’s Base Rent. Tenant hereby waives the provisions of any present or future statute or rule of law which may give Tenant any right of election to terminate this Lease or to surrender possession of the Property in the event any mortgage or lease affecting the Property is in default or is terminated, and agrees that this Lease shall not be affected in any way whatsoever by any such default, termination or any proceeding instituted as a result thereof, provided that such Successor Landlord recognizes this Lease and agrees in such written instrument not to disturb Tenant’s right to possession except in accordance with the terms of this Lease.

Section 16.2         Attornment. Tenant agrees that in the event of a sale, transfer or assignment, or sale and leaseback, of Landlord’s interest in the Property, or in the event any proceedings are brought for the foreclosure of or for the exercise of any power of sale under any mortgage constituting a lien upon the Property, to attorn to and to recognize such transferee, purchaser or mortgagee, as Landlord under this Lease (provided that such party grants Tenant reciprocal non-disturbance rights), or, in the case of a sale-leaseback, to continue to recognize Landlord as its Landlord under this Lease. The foregoing provisions of this Section 16.2 shall be self-operative, and no further instrument shall be required to give effect to said provisions. Tenant, however, agrees, at the request of the party to which it has attorned, to execute, acknowledge and deliver, without charge, from time to time, instruments in form reasonably acceptable to Tenant acknowledging such attornment and non-disturbance, and to execute estoppel certificates as may reasonably be requested by such party.

Section 16.3         Estoppel Certificate. Tenant and Landlord agree at any time and from time to time, within twenty (20) days after receipt of a request by the other, to execute, acknowledge and deliver a statement certifying: (a) as to the date which shall be deemed to be the Term Commencement Date hereunder; (b) that this Lease is unmodified and in full force and effect (or, if there have been modifications, that this Lease is in full force and effect as modified and stating the modifications); (c) the date to which the Rent and any Additional Rent (including operating expenses and property taxes) has been paid; and (d) whether or not to the best knowledge of Tenant or Landlord, as applicable: (i) Landlord or Tenant, as applicable, is in default in keeping, observing or performing any term, covenant, agreement, provision, condition or limitation contained in this Lease and, if in default, specifying each such default; (ii) either party is holding any funds under this Lease in which the other has an interest (and, if so, specifying the party holding such funds and the nature and amount thereof); and (iii) there is any amount then due and payable to Tenant by Landlord, it being intended that such statement delivered pursuant to this Section 16.3 may be relied upon by Tenant, Landlord, any mortgagee, any prospective purchaser or assignee of Tenant’s or Landlord’s interest in this Lease or the mortgagee’s interest in any mortgage, and by any prospective mortgagee of the Property or any part thereof.

Section 17.           Non-Liability of Landlord. Landlord shall not be responsible or liable to Tenant or its customers, sub-tenant(s), assignees, employees, agents, suppliers, contractors or any other person or entity affiliated with Tenant or its sub-tenant(s), and Tenant shall indemnify Landlord, for any loss, damage or injury to person or property that may be occasioned by the acts, omissions or negligence of Tenant or sub-tenant(s), assignees or of persons occupying any space adjacent to or adjoining the Premises, Building and Property or any part thereof including, not in limitation of the foregoing, loss, damage or injury resulting to Tenant or to any other person, or to any property of Tenant or sub-tenant or of any other person, from closure of the Property, in whole or in part, for purposes of repair or replacement of same, or from water, gas, steam, fire or the bursting, backflow, stoppage or leakage of sewer pipes.

  

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Section 18.            Indemnification of Landlord and Tenant.

Section 18.1         Indemnification of Landlord. Tenant shall protect, indemnify and save harmless Landlord, its agents, employees, lenders, and the Premises, Building and Property from and against all liabilities, obligations, claims, damages, judgments, suits, liens, penalties, costs, expenses (including, without limitation, reasonable attorneys’ fees) and actions or proceedings asserted against Landlord or against the Property or any part thereof and arising from or in connection with the occurrence or existence of any of the following during the Term hereof: (i) the use, occupancy, maintenance, repair, replacement, management or control of the Property by Tenant; (ii) any accident, injury to or death of persons or loss of or damage to property (except to the extent caused by the negligent or willful act or omission of Landlord or its agents, servants, employees or contractors) occurring in, on or about the Property or any part thereof; (iii) performance of any labor or services or the furnishing of any materials or other property in respect of the Property; (iv) any failure on the part of Tenant to perform or comply with any of the terms of this Lease; or (v) any negligent or tortious act or omission of Tenant or its agents, servants, employees or contractors.

Section 18.2         Indemnification of Tenant. Landlord shall protect, indemnify and save harmless Tenant, its agents, subtenants and employees, from and against all liabilities, obligations, claims, damages, suits, liens, penalties, judgments, costs, expenses (including, without limitation, reasonable attorneys’ fees) and actions or proceedings asserted against Tenant and arising from or in connection with the occurrence or existence of any of the following during the Term hereof: (i) any failure on the part of Landlord to perform or comply with any of the terms of this Lease; and (ii) any negligent or tortious act or omission of Landlord or its agents, servants, employees or contractors.

Section 19.           Defaults and Remedies.

Section 19.1              Tenant’s Default. Tenant shall be in default under this Lease upon the occurrence of any one or more of the following events (collectively “Defaults” and individually a “Default” or “Event of Default”):

(a)         Tenant fails to pay Base Rent and/or Additional Rent due hereunder on any day upon which the same is to be paid, and such default continues for ten (10) days after receipt of notice of non-payment.

(b)         The occurrence of any of the events of bankruptcy or insolvency set forth in Section 20 of this Lease.

(c)         The Property shall have been abandoned, deserted or vacated or left vacant or unoccupied for thirty (30) consecutive business days without notice to Landlord, and Tenant shall have ceased paying Rent.

(d)         The occurrence of any other event which is defined as a default elsewhere in this Lease, together with the passage of the applicable grace period, if any, without cure.

(e)         Tenant fails to observe or perform any of the other covenants, conditions or provisions of this Lease to be observed or performed by Tenant, or Tenant shall do or permit any thing to be done, whether by action or inaction, contrary to any of Tenant’s obligations hereunder, and Tenant fails to cure such default within thirty (30) calendar days after notice thereof in writing to Tenant or if such default cannot be reasonably cured within thirty (30) calendar days, unless Tenant begins such cure within thirty (30) calendar days and diligently pursues such cure to completion within sixty (60) days of Tenant’s receipt of Landlord’s notice to cure such default, or such longer or shorter time as may be commercially reasonable under the specific circumstances surrounding such default, time being of the essence, not to exceed ninety (90) days.

  

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Section 19.2              Remedies.

(a)         Upon the occurrence of any one or more such Defaults set forth in Section 19.1, Landlord, in addition to any other remedies herein contained or as may be permitted by law, may: (i) cancel and terminate this Lease upon written notice to Tenant (whereupon the Term or Renewal Term, as applicable, shall expire and this Lease shall terminate, and Tenant shall then quit and surrender the Property to Landlord, but Tenant shall remain liable as hereinafter provided); and/or (ii) at any time thereafter, re-enter and resume possession of the Property as if this Lease had not been made, Tenant hereby waiving the service of any notice of intention to re-enter or to institute legal proceedings to that end.

(b)         If this Lease shall be terminated or if Landlord shall be entitled to re-enter the Property and dispossess or remove Tenant under the provisions of this Section 19 (either or both of which events are hereinafter referred to as a “Termination”), Landlord or Landlord’s agents may immediately or at any time thereafter re-enter the Property and remove therefrom Tenant, its agents, employees, licensees and any subtenants and other persons or business entities, and all or any of its or their property therefrom, either by summary dispossess proceedings or by any suitable action or proceeding at law or by peaceable re-entry or otherwise, without being liable to prosecution or damages therefor, and may repossess and enjoy the Property, including all additions, alterations and improvements thereto.

(c)         In case of Termination, the Rent and all other charges required to be paid by Tenant hereunder shall thereupon become due and shall be paid by Tenant up to the time of the Termination, and Tenant shall also pay to Landlord all expenses which Landlord may then or thereafter incur as a result of or arising out of a Termination including, but not limited to, court costs, attorneys’ fees, brokerage commissions, and costs of terminating the tenancy of Tenant or any other occupant of the Property, re-entering, dispossessing or otherwise removing Tenant or any other occupant of the Property, and restoring the Property to good order and condition and, from time to time, altering and otherwise preparing the same for re-letting. Upon a Termination, Landlord may, at any time and from time to time, re-let the Property, in whole or in part, either in its own name or as Tenant’s agent, for a term or terms which, at Landlord’s option, may be for the remainder of the then current Term, or for any longer or shorter period; provided, however, that Landlord agrees to use commercially reasonable efforts to mitigate its damages.

(d)         In addition to the payments required by Section 19.2(c) above, Tenant shall be obligated to, and shall pay to Landlord upon demand, damages (payable in monthly installments, in advance, on the first (1st) day of each calendar month following the Termination, and continuing until the date originally fixed herein for the expiration of the Term or Renewal Term, as applicable), in amounts equal to the excess, if any, of the sums of the aggregate expenses paid by Landlord during the month immediately preceding such calendar month for all such items as, by the terms of this Lease, are required to be paid by Tenant, plus an amount equal to the installment of Rent which would have been payable by Tenant hereunder in respect to such calendar month had this Lease not been terminated, over the sum of rents, if any, collected by or accruing to Landlord in respect to such calendar month pursuant to a re-letting or to any holding over by any subtenants of Tenant.

(e)         Notwithstanding Landlord’s agreement to use commercially reasonable efforts to mitigate its damages as set forth in Section 19.2(c) above, Landlord shall in no event be liable for failure to re-let the Property or in the event that the Property are re-let, for failure to collect rent due under such re-letting; and in no event shall Tenant be entitled to receive any excess of rent over the sums payable by Tenant to Landlord hereunder, but such excess shall be credited to the unpaid Rent due hereunder, and to the expenses of re-letting as provided herein.

  

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(f)           Suit or suits for the recovery of damages hereunder, or for any installments of Rent, may be brought by Landlord from time to time at its election, and nothing herein contained shall be deemed to require Landlord to postpone suit until the date when the Term or Renewal Term, as applicable would have expired if it had not been terminated under the provisions of this Lease, or under any provision of law, or had Landlord not re-entered into or upon the Property.

 

(g)          Anything herein to the contrary notwithstanding, Landlord shall not have the right to accelerate any future installments of Rent due upon an Event of Default by Tenant.

 

(h)          Landlord, at its option, in addition to any and all remedies available to it, shall have the right to charge a fee for payment of Rent received later than the tenth (10th) day of the month in which said Rent was due, which fee shall be four percent (4%) of the amount of such overdue Rent.

 

(i)           Tenant hereby waives all rights of redemption to which Tenant or any person claiming under Tenant might be entitled, after a surrender and acceptance of the Property and Tenant’s leasehold estate, or after a termination of this Lease, or after a judgment against Tenant in an action in ejectment, or after the issuance of a final order or warrant of dispossess in a summary proceeding, or in any other proceeding or action authorized by any rule of law or statute now or hereafter in force or effect.

 

(j)        Tenant’s obligation under this Section 19.2 shall survive the expiration or earlier termination of this Lease.

 

Section 20.            Bankruptcy; Insolvency.

 

Section 20.1           Cancellation of Lease. Notwithstanding anything herein to the contrary, this Lease may be cancelled by Landlord by the sending of a written fifteen (15) day notice of cancellation to Tenant within a reasonable time after the happening of any one or more of the following events:

 

(a)          a receiver, trustee or liquidator of Tenant or of all substantially all the property of Tenant or of its interest in the Property, shall be appointed in any proceeding brought by Tenant or if any such receiver, trustee or liquidator shall be appointed or any proceeding brought against Tenant and such receiver, trustee or liquidator shall not be discharged within sixty (60) calendar days after such appointment;

 

(b)          the making by Tenant of an assignment or any other arrangement for the benefit of creditors pursuant to any Law;

 

(c)          the filing by Tenant of a voluntary petition in bankruptcy pursuant to the United States Bankruptcy Code (“Bankruptcy Code”) seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief thereunder; or

 

(d)          the adjudication of Tenant as bankrupt or insolvent or if a petition or answer proposing the adjudication of Tenant as a bankrupt pursuant to the Bankruptcy Code or any similar federal or state law is filed and such petition or answer shall not be discharged within sixty (60) calendar days after the date of filing hereof.

 

Landlord’s statutory liens for Rent shall be honored by Tenant and any trustee, representative or creditor of Tenant.

 

Section 20.2           Protection to Landlord. If Landlord shall have no right to terminate this Lease by reason of the applicable provisions of the Bankruptcy Code, Tenant or its trustee or other representative shall promptly provide adequate protection to Landlord pursuant to the provisions of the Bankruptcy Code.

  

  

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(a)          Tenant or its trustee shall promptly accept or reject this Lease.

 

(b)          If Tenant shall not be in liquidation, Tenant or its trustee shall assume or reject this Lease as soon as such decision can reasonably be made, and shall compensate Landlord for the use and occupancy of the Property at the rental rate specified in Section 4, including Additional Rent, monthly in advance until such decision is made.

 

(c)          This Lease may not be assumed unless, at the time of such assumption, the trustee or assignee shall promptly: (i) cure or provide adequate assurance that it will promptly cure any Default(s) under this Lease, to include payment of Landlord’s attorney fees; (ii) compensate or provide adequate assurance that it shall compensate Landlord for any actual and/or pecuniary loss to Landlord resulting from such Defaults(s); (iii) provide adequate assurance reasonably satisfactory to Landlord of future performance under this Lease; and (iv) compensate Landlord for all post-filing use and occupancy of the Property at the rental rate specified in Section 4, including Additional Rent, and shall timely perform all of Tenant’s other obligations hereunder.

 

Section 20.3           Assignment Pursuant to Bankruptcy Code. If this Lease is assigned to any person or entity pursuant to the provisions of the Bankruptcy Code, Tenant or its legal representative shall give prompt written notice thereof to Landlord along with adequate assurance of future performance by the assignee. Any and all monies or other consideration to be delivered in connection with the assignment shall be delivered to Landlord, and shall be and remain the exclusive property of Landlord to be applied to post-filing use and occupancy payments to Landlord or other monies owed by Tenant to Landlord, and shall not constitute property of Tenant or of the estate of Tenant. Any person or entity to which this Lease is assigned pursuant to the provisions of the Bankruptcy Code shall be deemed to have assumed all of the obligations arising under this Lease on and after the date of such assignment, and shall upon demand execute and deliver to Landlord an instrument confirming that assumption,

 

Section 21.            Landlord’s Right of Access to Property. Tenant shall permit Landlord or its agents to enter the Property during business hours on not less than twenty-four (24) hours prior notice, either by written or oral notice to the manager of the branch located within the Property, for the purpose of inspecting the Property or showing the Property to potential lenders or persons wishing to purchase the same and, at any time within twelve (12) months prior to the expiration of the Term or of any Renewal Term, to persons wishing to rent same. Taking into account the nature of Tenant’s business, Landlord shall not have the right to show secured areas of the Property or appurtenant systems used in connection therewith. Landlord shall also have the right, but not the obligation, to enter the Property upon at least twenty-four (24) hour prior notice, either written or oral to the manager of the branch located within the Property, and at any reasonable times to cure Defaults of Tenant or to perform any act or thing which Landlord may have the right to do under this Lease; provided, however, that should Landlord need to enter the Property to address an emergency situation, no prior notice shall be required. To the extent reasonably practicable, entries by Landlord shall be conducted so as to avoid interference with Tenant’s business.

 

Section 22.            Environmental Provisions.

 

Section 22.1            Compliance with Environmental Laws.

 

(a)         Tenant shall use and occupy the Property in compliance with all federal, state and local laws, ordinances, rules, regulations and legally enforceable policies and guidelines regarding the environment, human health or safety (the “Environmental Laws”) applicable to the Property, or the Tenant’s use thereof.

 

  

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(b)        The term “Hazardous Materials” means: (i) any material, substance, product, petroleum, petroleum product, derivative, compound or mixture, mineral including, but not limited to, asbestos and asbestos containing materials, gas, radon, radioactive materials, chemical, flammable explosives, medical waste or other pollutant, urea formaldehyde foam insulation, lead, polychlorinated byphenyls, in each case whether naturally occurring, man-made or the by-product of any process that is toxic, harmful or hazardous and that may cause damage to human health or the environment, safety or real property; or (ii) any material or substance sustaining a cause or action or claim under any Environmental Law, whether or not such material or substance is defined as hazardous as such under any Environmental Law and whether such substance is now or hereafter designated as hazardous, under any Environmental Law, or by any environmental agency or otherwise.

 

Section 22.2           Copies of Notices. In the event that Tenant or Landlord receives any notice, whether written or oral, concerning the occurrence of any spill, discharge or cleanup of any Hazardous Materials on or about the Property or into any sewer, septic system or waste treatment system servicing the Property (hereinafter collectively referred to as a “Hazardous Discharge”) or of any complaint, order, citation or notice with regard to air emissions, water discharges, noise emissions or any other environmental, health or safety matter affecting the Property, Tenant, or the operation of Tenant at the Property (hereinafter collectively referred to as an “Environmental Complaint”) from any person, entity or governmental agency, then Tenant or Landlord shall as soon as possible, but within five (5) business days, give oral and written notice of same to the other as the case may be, which notice shall set forth specifically and in detail all relevant facts and circumstances with respect thereto.

 

Section 22.3            Remediation.

 

(a)          In the event of any release or threatened release of any Hazardous Materials caused by Tenant at, under or about the Property, or upon the issuance of any Environmental Complaint as a result of Tenant’s action, Tenant shall, at its sole cost and expense, immediately take all necessary steps to initiate and expeditiously complete all remedial and corrective action in accordance with all applicable Environmental Laws to the satisfaction of the applicable governmental authorities, including the payment of any and all costs and penalties assessed against the Property. Tenant shall promptly supply Landlord with copies of all notices, reports, documents, materials, submissions, testing results, assessments, or any other material, in connection with its remedial action prior to submission to any governmental agency. Tenant shall notify Landlord in writing in advance of all meetings scheduled between Tenant and any applicable governmental authority. Landlord may attend and participate in all such meetings.

 

(b)          In the event of any release, threatened release or discovery of any Hazardous Materials at, under or about the Property or upon the issuance of any Environmental Complaint which is the result of Hazardous Materials, Hazardous Discharge or violation of Environmental Laws which occurred or alleged to have occurred prior to the execution of this Lease (a “Pre-Existing Condition”), Tenant shall, at its sole cost and expense, take all necessary steps to initiate and expeditiously complete all remedial and corrective action in accordance with all applicable Environmental Laws to the satisfaction of the applicable Governmental Authorities, including the payment of any and all costs and penalties assessed against the Property. In the event of any release or threatened release of any Hazardous Materials at, under or about the Property, or upon the issuance of any Environmental Complaint with respect to the Property, Tenant shall, at its sole cost and expense, take all necessary steps to initiate and complete all remedial and corrective action in accordance with all applicable Environmental Laws to the reasonable satisfaction of the applicable Governmental Authorities, including the payment of any and all costs and penalties assessed against the Property.

 

Section 22.4           Tenant’s Indemnification. Tenant shall indemnify, protect, defend and hold Landlord, its agents, employees, lenders, and the premises, harmless from and against any and all loss and/or damages, liabilities, judgments, costs, claims, liens, expenses, penalties, and attorney’s and consultant’s fees arising out of or involving any Hazardous Materials or Hazardous Discharge brought onto the Property by or for Tenant or otherwise caused by Tenant or any agent, employee, customer, contractor or any other person or entity affiliated with Tenant in conjunction with Tenant’s use and occupancy of the Premises, Building and Property, and/or arising out of Tenant’s failure to comply with its obligations under Section 22.3 hereof, and/or arising out of Tenant’s failure to comply with all applicable Environmental Laws or relating to the presence of Hazardous Materials upon or affecting the Property and caused by Tenant or arising from any other cause whatsoever (except for the negligence of or as caused by Landlord). Tenant’s obligations under Section 22 of this Lease shall survive the termination of this Lease.

 

  

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Section 23.            Notices. All notices, statements, demands, consents, approvals or authorizations hereby required or permitted under this Lease shall, unless otherwise specifically provided herein, be given in writing and shall either be personally delivered to Landlord or Tenant, as the case may be, or sent by United States certified mail, return receipt requested, or by an overnight delivery service that provides for receipted delivery, such as FedEx, addressed by the party giving, making or sending the same to the other at the Notice Address of Landlord or the Notice Address of Tenant, as appropriate, or to such other address as either party may designate from time to time by a notice given to the other party. All notices shall be effective upon receipt or refusal, but no later than five (5) days following deposit with the carrier. Notices may be sent by a party, its counsel, or an authorized agent. The payment of Rent and the transmittal of invoices may be sent by first class U.S. mail.

 

Section 24.            Memorandum of Lease. Neither Landlord nor Tenant shall record this Lease. The parties shall join in the execution of a memorandum or so-called “short form” of this Lease simultaneously with the execution of this Lease, or at any other time upon the request of either party in the form attached hereto as Exhibit C. Either party may then record the short form of lease, and any recording costs shall be borne by the party requesting recordation.

 

Section 25.            End of Term.

 

Section 25.1         Condition of Property. On the last day of the Term or any Renewal Term, as applicable, or the earlier termination of the Term, or any Renewal Term, as applicable, Tenant shall peaceably and quietly leave, surrender and deliver the Property to Landlord, together with (a) all alterations, changes, additions and improvements, which may have been made upon the Property, and (b) except for the personal property and fixtures of Tenant, such as a removable vault, teller lines, teller lockers, safe deposit boxes, ATMs and security equipment, all fixtures of any kind or nature which Tenant may have installed or affixed on, in or to the Property for use in connection with the operation and maintenance of the Property (whether or not said property be deemed to be fixtures), all of the foregoing to be surrendered in good and sufficient repair, order and condition, reasonable use, ordinary wear and tear excepted, and free of occupants. Notwithstanding the foregoing, no item shall be removed if its removal would impair the structural integrity of the Property, Building and/or Property, or any part thereof. Tenant shall pay for the repair of any damage to the Property, Building and/or Property associated with the removal of the aforementioned items.

 

Section 25.2         Cost of Repair. At or prior to the termination of this Lease, Tenant shall remove its personal property, and Tenant shall pay or cause to be paid the cost of repairing or remedying any damage caused thereby, providing that no item may be removed if its removal would impair the structural integrity of the Property or any part thereof. All property not so removed shall be deemed abandoned, and may either be retained by Landlord as its property or disposed of, without accountability, in such manner as Landlord may see fit, at the sole cost and expense of Tenant.

 

Section 25.3          Survival of Obligations. Tenant’s obligations under this Section 25 shall survive the expiration or termination of this Lease.

 

Section 26.            Intentionally Omitted.

 

  

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Section 27.             General Provisions.

 

Section 27.1         No Waste. Tenant covenants not to do or suffer any waste or damage, or injury to the Premises, Building and/or Property.

 

Section 27.2         Landlord’s Liability. If Landlord shall breach any of the provisions of this Lease, Landlord’s liability shall in no event exceed Landlord’s interest in the Property as of the date of Landlord’s breach; and Tenant expressly agrees that any judgment or award which it may obtain against Landlord shall be recoverable and satisfied solely out of the right, title and interest of Landlord in and to the Property and the rents, issues, profits, insurance proceeds and awards therefore, and that Tenant shall have no rights against Landlord (or any persons or entities comprising Landlord), or rights of lien or levy against any other property of Landlord (or of any persons or entities comprising Landlord), nor shall any other property or assets of Landlord be subject to levy, execution or other enforcement proceedings for the collection of any such sums or satisfaction of any such judgment or award.

 

Section 27.3         Partial Invalidity. If any term or provision of this Lease or the application thereof to any party or circumstances shall to any extent be invalid or unenforceable under any law or for any reason, the remainder of this Lease or the application of such term or provision to parties or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and enforceable to the fullest extent permitted by law.

 

Section 27.4        No Waiver. One or more waivers by either party of the obligation of the other to perform any covenant or condition shall not be construed as a waiver of a subsequent breach of the same or any other covenant or condition. The receipt of Rent by the Landlord, with knowledge of any breach of this Lease by Tenant or of any default by Tenant in the observance or performance of any of the conditions or covenants of this Lease shall not be deemed to be a waiver of any provision of this Lease. Neither the acceptance of the keys nor any other act or thing done by Landlord or any agent or employee of Landlord during the Term or any Renewal Term, as applicable, shall be deemed to be an acceptance of a surrender of the Property, excepting only an agreement, in writing, signed by the Landlord accepting or agreeing to accept such a surrender.

 

Section 27.5         Number and Gender. Wherever herein the singular number is used, the same shall include the plural, and the masculine gender shall include the feminine and neuter genders.

 

Section 27.6         Successors and Assigns. The terms, covenants and conditions herein contained shall be binding upon and inure to the benefit of the respective parties and their successors and assigns.

 

Section 27.7         Section Headings. Section headings and any other headings or captions used herein are intended for convenience in finding the subject matters, and are not to be used in determining the intent of the parties to this Lease.

 

Section 27.8         Entire Agreement; Amendment. This Lease contains the entire and only agreement between the parties, and no oral statements or representations or prior written matter not contained or referred to in this Lease shall have any force or effect. This Lease shall not be modified in any way or terminated by mutual agreement except by a writing executed by both parties.

 

Section 27.9         Cost of Performing Obligations. Unless otherwise specified, the respective obligations of the parties to keep, perform and observe any terms, covenants or conditions of this Lease shall be at the sole cost and expense of the party so obligated.

 

  

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Section 27.10       Remedies Cumulative. The specified remedies to which the Landlord may resort under the terms of this Lease are cumulative and are not intended to be exclusive of any other remedies or means of redress to which such party may be lawfully entitled in case of any breach or threatened breach of any provision of this Lease. In the event of any breach or threatened breach by either party or any persons claming through or under such party of any of the agreements, terms, covenants or conditions contained in this Lease, Landlord or Tenant, as the case may be, shall be entitled to enjoin such breach or threatened breach (if entitled to do so at law or in equity or by statute or otherwise), and shall have the right to invoke any right and remedy allowed by law or in equity or by statute or otherwise as if any of those specific remedies were provided for in this Lease.

 

Section 27.11      Holding Over. If Tenant holds over after the expiration of the Term or Renewal Term, as applicable, or earlier termination of this Lease, and if Tenant is not otherwise in Default hereunder, such holding over shall not be deemed to create an extension of the Term or Renewal Term, as applicable, but such occupancy shall be deemed to create a month-to-month tenancy on the same terms and conditions (except as the same may be then inapplicable) as are in effect on the date of said expiration or earlier termination, except that the Base Rent payable shall be one hundred twenty-five percent (125%) of the Base Rent in effect on the date of expiration or termination of the Term or Renewal Term, as applicable.

 

Section 27.12       Force Majeure. The period of time during which either party hereto is prevented from performing any act required to be performed under this Lease by reason of fire, catastrophe, labor difficulties, strikes, lockouts, civil commotion, terrorism, acts of God or of the public enemy, governmental prohibitions or preemptions, embargoes, inability to obtain materials or labor by reason of governmental regulations or prohibitions, or other events beyond the reasonable control of Landlord or Tenant, as the case may be, shall be added to the time for performance of such act, and neither party shall be liable to the other or in default under this Lease as the result thereof. The provisions of this Section 27.12 shall not apply to or in any manner extend or defer the time for any obligations to make payment of monies required of either party hereunder.

 

Section 27.13       Governing Law. The interpretation and validity of this Lease shall be governed by the laws of the State in which the Property is located.

 

Section 27.14       Brokerage. Landlord and Tenant represent that there was no broker involved in consummating this Lease. Each party warrants to the other than in the event of a claim by any broker or other person for commissions on account of representing such party to this transaction, the party against whom such a claim is made shall indemnify and hold the other harmless from that claim, including attorneys’ costs and fees incurred in connection with the defense against any claim, action, demand or suit.

 

Section 27.15       Waiver of Jury Trial. It is mutually agreed by and between Landlord and Tenant that the respective parties hereto shall, and they hereby do, waive trial by jury in any action, proceeding or counterclaim brought by either of the parties hereto against the other on any matters whatsoever arising out of or in any way connected to this Lease, the relationship of Landlord and Tenant, tenant’s use or occupancy of the Property, and any emergency statutory or any other statutory remedy.

 

Section 27.16       No Option. This Lease may be submitted to Landlord or Tenant prior to its execution, but such submission shall not constitute an offer or an option by either party, and this Lease shall not bind Landlord or Tenant until this Lease shall have been signed and delivered by both parties.

 

Section 27.17       Quiet Enjoyment. Upon the payment of the Rent and upon the performance of the terms, covenants and conditions herein contained on Tenant’s part to be kept and performed, Tenant shall and may at all times during the Term and any Renewal Term, as applicable, peaceably and quietly enjoy the Property, without hindrance from Landlord, subject to the terms of this Lease.

 

  

27

  

 

Section 27.18       No Joint Venture. Nothing contained in this Lease shall be deemed or construed to create a joint venture, partnership or any other relationship between Landlord and Tenant, nor cause either party to be liable for the obligations of the other party, it being the intention of the parties hereto that the only relationship between them is that of Landlord and Tenant. Each of Landlord and Tenant represents and warrants to the other that it has the legal right and authority to execute this Lease, and the execution and delivery thereof has been duly authorized by all requisite action.

 

Section 27.19      Interpretation. This Lease has been negotiated at arm’s-length. In the event of any ambiguity in any of the terms and provisions, the Lease shall not be interpreted against or in favor of either Landlord or Tenant, but the Lease shall be interpreted in accordance with the intent of the parties and the function of its terms and provisions.

 

Section 27.20       No Merger of Title. There shall be no merger of this Lease or the leasehold estate created by this Lease with the fee estate in the Premises, Building and/or Property or any part thereof by reason of the fact that the same person, firm, corporation or other entity may acquire or own or hold, directly or indirectly, (a) this Lease or the leasehold estate created by the Lease or any interest in this Lease or in any such leasehold estate; and (b) the fee estate in the Premises or any part thereof or any interest in such fee estate, and no such merger shall occur unless and until all corporations, firms and other entities, including each Leasehold Mortgagee, having any interest in: (i) this Lease or the leasehold estate created by this Lease; and (ii) the fee estate in the Premises or any part thereof shall join in a written instrument effecting such merger and shall duly record the same.

 

Section 27.21       Business Day. If the time period by which any right, option or election provided under this Lease must be exercised, or by which any act required hereunder must be performed, or by which any closing hereunder must be held, expires on a Saturday, Sunday or legal or bank holiday, then such time period shall be automatically extended through the close of business of the next regularly scheduled business day.

 

Section 27.22       Legal Fees. In the event that at any time during the Term either Landlord or Tenant shall institute any action or proceeding against the other relating to the provisions of this Lease, or any Default hereunder, the unsuccessful party in such action or proceeding agrees to reimburse the successful party for the reasonable expenses of attorneys’ fees and disbursements incurred therein by the successful party. Such reimbursement shall include all legal expenses incurred prior to trial, at trial and at all levels of appeal and post judgment proceedings, including reasonable efforts to collect a judgment.

 

Section 27.23       Further Assurances. In addition to the acts and deeds recited herein and contemplated to be performed, executed and/or delivered by the parties hereto, the parties hereto agree to perform, execute and/or deliver any and all such further acts, deeds and assurances as may be reasonably required to consummate the transaction contemplated hereby.

 

Section 27.24       Time of Essence. Time is of the essence with respect to the obligations to be performed under this Lease.

 

Section 27.25       Waivers. No waiver by Landlord or Tenant of any provision hereof shall be deemed to be a waiver of any other provision hereof or of any subsequent breach by Landlord or Tenant of the same or any other provision of this Lease. Landlord’s or Tenant’s consent to, or approval of, any act shall not be deemed to render unnecessary the obtaining of the other party’s consent to or approval of any subsequent act. The acceptance of rent hereunder by Landlord shall not be a waiver of any preceding breach by Tenant of any provision hereof, other than the failure of Tenant to pay the particular rent so accepted, regardless of Landlord’s knowledge of such preceding breach at the time of acceptance of such rent.

 

Section 27.26       Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity.

 

  

28

  

 

Section 27.27       Covenants and Conditions.   Each    provision    of    this    Lease performable by Tenant shall be deemed both a covenant and a condition.

 

Section 28.            Security Measures. Tenant hereby acknowledges that Landlord shall have no obligation whatsoever to provide security measures for the benefit of the Premises, Building or Property. Tenant assumes all responsibility for the protection of Tenant, its agents, customers, suppliers, invitees and sub-tenants, and for the property of Tenant and of Tenant’s agents and invitees and sub-tenants from acts of third parties.

 

Section 29.            Authority. Each individual executing this Lease on behalf of Tenant and Landlord is duly authorized to execute and deliver this Lease on behalf of said entity. Tenant shall, upon execution of this Lease, deliver to Landlord evidence of such authority and Landlord shall deliver to Tenant evidence of such authority and evidence that it is the fee simple title owner of the Property upon the Delivery Date.

 

Section 30.            Termination Right. After the First Lease Year, Tenant shall have the right to terminate two (2) of the PNC Leases each calendar year during the term hereof (including renewal terms), at any time upon at least twelve (12) months prior written notice (the “Termination Notice”) to Landlord. As used herein the term “PNC Leases” shall mean the leases (including this Lease) entered into by Landlord and Tenant on the Closing Date, as more particularly described on Exhibit E attached hereto and made a part hereof, as the same may be amended form time to time, or at any time, in accordance with subsection (f) hereof, or as otherwise agreed in writing by the parties. The Termination Notice shall specify the PNC Lease which Tenant elects to terminate and the date of termination (the “Termination Date”) which shall not be less than twelve (12) months from the date of the Termination Notice. “ In the event of such termination, this Lease and the benefits and liabilities of this Lease shall terminate on the Termination Date as if it were the end of the Term.

 

Section 31.            Confidentiality. The parties covenant and agree to keep the provisions of this Lease and any audit or other financial information obtained pursuant to this Lease (“Information”) confidential, and shall not disclose such Information to any person or entity (except as provided below or any memorandum of lease). The parties agree not to in any way publicize, disclose or discuss the Information to or with persons other than those named herein, and shall use good faith efforts to cause such parties to whom they are permitted to disclose such Information to maintain the confidentiality thereof in accordance with the terms of this section. Notwithstanding the foregoing, disclosure of the Information to the following parties shall not be a breach of this Section: (i) to any party’s accountants, auditors or business professionals or consultants (including brokers, insurance and marketing consultants); (ii) to any party’s attorneys or other professionals for purposes of review and advice and for use in any litigation or potential litigation against any party; (iii) in connection with litigation or in response to any subpoena or other legal process requiring the production or disclosure hereof: (iv) to the Internal Revenue Authority, Office of the Comptroller of the Currency or any applicable regulatory authority; (v) to any officers, directors, agents or employees of the party or of the party’s parent corporation, subsidiary, or other related entity; (vi) to any existing or proposed lender, purchaser, investor, assignee, subtenant, or licensee; or (vi) otherwise as required of any party by applicable law or order.

 

IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto agree to the terms of this Lease on the year and date first written above.

 

  

29

  

 

IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto agree to the terms of this Lease on the year and date first written above.

 

	  	
LANDLORD:

	  	  
	  	
ARC PANJOH54 LLC, a Delaware limited liability

company

	  	  
	  	
By:

	
/s/ William M. Kahane

	  	  	
Name: William M. Kahane

	  	  	
Title:    President

 

[SIGNATURES CONTINUE ON NEXT PAGE]

 

Lease - NJ, OH - PNC

 

  

 

  

 

	  	
TENANT:

 

	  	
PNC BANK, NATIONAL ASSOCIATION, a

	  	
national banking association

 

	  	
By:

	
/s/ Dennis Hartman

	  	
Name:

	
Dennis Hartman

	  	
Title:

	
Vice President

 

Lease - PNC

 

  

 

  

 

Exhibit A

 

LEGAL DESCRIPTION

 

ALL THAT CERTAIN tract or parcel of land and premises lying, being and situate in the Borough of Raritan, County of Somerset and State of New Jersey being more particularly described as follows:

 

BEGINNING at a point in the southerly side line of Somerset Street as now laid out said point being N 80° 28' 30" E and 80.00 feet distant from the intersection of said southerly side line of Somerset Street with the easterly side line of Doughty Street as now laid out, said point marking the northeasterly corner of property of St. Paul Evangelical Lutheran Church, said point also marking the northeasterly corner of Lot #12, Block C, as shown on a map entitled “A Map of the Village of Raritan, Surveyed and Drawn by I. P. Lindsley, Civil Engineer, August 1846", which map was ordered filed in the Somerset County Clerk’s Office by the Board of Managers of The Somerville Water Power Company on September 16, 1846, and was filed in the Somerset County Clerk’s Office on October 12, 1846 as Map #20; and running thence

 

(1)           N 80° 28' 30" E along said southerly side line of Somerset Street a distance of 122.15 feet to a point and northwest corner of property of Jim’s Realty, Inc., said point being S 80° 28' 30" W and distant 37.85 feet from the intersection of said southerly side line of Somerset Street with the westerly side line of Thompson Street as now laid out, said point also being N 80° 28' 30" E and distant 2.15 feet from the northwesterly corner of Lot 16, Block C as shown on said map; thence

 

(2)           S 09° 31' 30" E along the westerly line of property of Jim’s Realty, Inc. parallel to and 2.15 feet easterly therefrom the westerly line of Lot 16, Block C as shown on said map, a distance of 90.04 feet to a point and corner; thence

 

(3)           N 80° 28' 30" E through Lot 16, Block C as shown on said map, along the rear line of property of Jim’s Realty, Inc., a distance of 37.85 feet to a point in the Westerly side line of Thompson Street as now laid out; thence

 

(4)           S 09° 31' 30" E along said westerly line of Thompson Street, a distance of 109.96 feet to a point and northeast corner of Lot 19, Block C as shown on said map, now or formerly Joseph Sferra; thence

 

(5)           S 80° 28' 30" E, along the northerly line of Lots 19 and 8, Block C as shown on said map, a distance of 160.00 feet to a point and southeasterly corner of property of said St. Paul Evangelical Lutheran Church, said point being N 80° 28' 30" E as measured along the northerly line of Lot 8 as shown on said map, and distant 80.00 feet from the easterly side line of Doughty Street as now laid out; thence

 

(6)           N 09° 31' 30" W along the easterly side line of St. Paul Evangelical Lutheran Church, a distance of 200.00 feet to the point and place of BEGINNING.

 

BEING premises 9 West Somerset Street, Raritan, NJ.

 

9 West Somerset St., Raritan, NJ

 

  

 

  

 

BEING Lot 3, Block 107.

 

BEING the same premises which The Raritan Savings Bank, by deed dated April 2, 1975 and recorded April 14, 1975 in the Somerset County Clerk’s Office in Deed Book Volume 1312, page 634, granted and conveyed unto The Raritan Savings Bank. The Raritan Savings Bank was acquired by United National Bank on March 31, 1999. United National Bank was re-named United Trust Bank on May 7, 2001. On March 20, 2004, United Trust Bank merged with PNC Bank, National Association, the Grantor herein.

 

Also described pursuant to survey of Millman Surveying, Inc. dated July 15, 2008 as follows:

 

Situated in the City of Raritan, County of Somerset and State of New Jersey: Known as being all of the land now or formerly conveyed to PNC Bank as recorded in Book 1312 Page 634 of Somerset County Records and being more particularly described as follows:

 

Commencing on the north line West Somerset Street;

 

Thence, along the north line of West Somerset Street, North 80°28'30" East, 80.00 feet to a 5/8" capped rebar stamped “Millman” set and also being the true Point of Beginning;

 

Thence, continuing along West Somerset Street, North 80°28'30" East, 122.15 feet to a 5/8" capped rebar stamped “Millman” set at the northwest corner of land now or formerly conveyed to Raritan Investors Property Management LLC as recorded in Book 6107 Page 1179 of Somerset County Records;

 

Thence, along the west line of said Raritan Investors Property Management LLC, South 09°31'30" East, 90.04 feet to a 1/2" iron rod found,

 

Thence, continuing along the south line of said Raritan Investors Property Management LLC, North 80°28'30" East, 37.85 feet to a 1" iron bar found on the west line of Thompson Street (60' Wide);

 

Thence, along the west line of Thompson Street, South 09°31'30" East, 109.96 feet to a 5/8" capped rebar stamped “Millman” set at the northeast corner of land now or formerly conveyed to Krzysztof & Agnieszka Grzebyk as recorded in Book 5467 Page 661 and William & Lori Barrett as recorded in Book 2238 Page 781 of Somerset County Records;

 

Thence, along the north line of said Grzebyk and Barrett lands, South 80°28'30" West, 160.00 feet to a 5/8" capped rebar stamped “Millman” set at the southeast corner of land now or formerly conveyed to St. Paul Evangelical Lutheran Church of Somerset County Records;

 

Thence, along the east line of said St. Paul Evangelical Lutheran Church land, North 09°31'30" West, 200.00 feet to the Point of Beginning and containing 0.6564 acres (28,592 square feet) of land more or less.

  

 

  

 

Exhibit B

 

SITE PLAN OF PREMISES AND PROPERTY

 

  

 

  

 

 

  

 

  

 

Exhibit C

 

FORM OF MEMORANDUM OF LEASE

 

[NOTE: TO BE CONFORMED TO LEASE PRIOR TO EXECUTION]

 

WHEN RECORDED MAIL TO:

 

PNC Bank, National Association

PNC Realty Services

Two PNC Plaza – 19th Floor

620 Liberty Avenue

Pittsburgh, PA 15222

Attn: Leasing Manager

 

                  SPACE ABOVE THIS LINE FOR RECORDER’S USE ___________

MEMORANDUM OF LEASE

MADE as of the                          day of              , 2008.

 

BY AND BETWEEN

 

ARC PANJOH54 LLC, a Delaware limited liability company (hereinafter called “Landlord”), having an address at 106 York Road, Jenkintown, PA 19046.

 

AND

 

PNC Bank, National Association (hereinafter called “Tenant”), a national banking association, having an office at c/o PNC Realty Services Co., Two PNC Plaza - 19th Floor, 620 Liberty Avenue, Pittsburgh, PA 15222.

 

WITNESSETH:

 

WHEREAS, as of the date hereof, Landlord and Tenant entered into a certain Lease (hereinafter called the “Lease”); and

 

WHEREAS, Landlord and Tenant are desirous of entering into this Memorandum of Lease as evidence of the Lease for purposes of recording in the County in which the Property (hereafter defined) is located.

 

NOW, THEREFORE, intending to be legally bound, Landlord and Tenant hereby set forth the following information with respect to the Lease:

 

	 	
1.

	
The name of the Landlord is ARC PANJOH54 LLC, a Delaware limited liability company.

 

	 	
2.

	
The name of the Tenant is PNC BANK, NATIONAL ASSOCIATION, a national banking association.

 

	 	
3.

	
The addresses set forth in the Lease as addresses of the parties are:

 

  

 

  

 

	
LANDLORD:

	ARC PANJOH54 LLC  
	  	
c/o American Realty Capital LLC

	  	
106 York Road

	  	
Jenkinton, PA 19046

	  	
Attn: William M. Kahane

 

	
TENANT:

	PNC Bank, National Association  
	  	
c/o PNC Realty Services

	  	
Two PNC Plaza – 19th Floor

	  	
620 Liberty Avenue

	  	
Pittsburgh, PA 15222

	  	
Attn: Leasing Manager

 

	 	
4.

	
The Lease is dated as of _____________, 2008.

 

	 	
5.

	
The description of the demised premises as set forth in the Lease is as set forth on Exhibit A attached hereto and made a part hereof (the “Property”).

 

	 	
6.

	
The date of the commencement of the term of the Lease is _________, 2008.

 

	 	
7.

	
The Rent Commencement Date is _____________, 2008.

 

	 	
8.

	
The term of the Lease is ten (10) years following the Rent Commencement Date (as defined in the Lease), and is subject to the exercise by Tenant of four (4) additional “Renewal Terms” of five (5) years each.

 

	 	
9.

	
Tenant has been granted the following exclusive use of the Property: During the Lease Term and any Renewal Terms, no other party on the Property (or on any adjacent property owned by Landlord) other than Tenant, shall use any portion of the Property or Building (as defined in the Lease) for the purpose of conducting the business of a commercial bank, savings bank, savings and loan association, credit union or mortgage bank, or other financial services organization, including, without limitation, the installation and operation of an ATM or ATMs and/or night deposit boxes, brokerage services, financial planners, title insurance companies and/or their agents, and insurance companies an/or insurance agents without the prior written consent of Tenant, which consent may be withheld in Tenant’s sole discretion.

 

WITNESS the due execution hereof as of the ______ day of ________, 200 _____.

	
WITNESS:

	  	
LANDLORD:

	  	  	  	 
	  	  	
ARC PANJOH54 LLC, a Delaware limited liability company

	  	  	  	 
	  	  	
By:

	 
	  	  	
Name:

	 
	  	  	
Title:

	 
	  	  	  	 
	  	  	
TENANT:

 

	  	  	
PNC BANK, NATIONAL ASSOCIATION, a national

banking association

	  	  	  	 
	  	  	
By:

	 
	  	  	
Name:

	 
	  	  	
Title:

	 

 

  

 

  

 

EXHIBIT A

to Memorandum of Lease

 

Legal Description of Property

 

  

 

  

 

Exhibit D

 

FORM OF SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

 

THIS AGREEMENT is made and entered into this _____________ day of ____________, 2008 by and between PNC BANK, NATIONAL ASSOCIATION, a national banking association (“Tenant”) and ________________ (“Lender”) and                                              (“Landlord”).

 

RECITALS:

 

WHEREAS, Landlord has executed a lease dated as of _______ , 2008, in favor of Tenant (the “Lease”), a memorandum of which may be recorded simultaneously herewith, covering a certain Premises (the “Premises”) therein described located on a parcel of real estate, a legal description of which is attached hereto and incorporated herein by this reference as Exhibit A (said parcel of real estate and the Premises being sometimes collectively referred to herein as the “Property”); and

 

WHEREAS,  Landlord  has  executed  a ________________________ (the “Mortgage”) dated ___________, 2008 and recorded in the office of the Recorder/Register of Deeds of ________ County, New Jersey, in favor of Lender, payable upon the terms and conditions described therein; and

 

WHEREAS, it is a condition to the loan secured by the mortgage that said Mortgage shall unconditionally be and remain at all times a lien or charge upon the Property, prior and superior to the Lease and to the leasehold estate created thereby; and

 

WHEREAS, the parties hereto desire to assure Tenant’s possession and control of the Property under the Lease upon the terms and conditions therein contained;

 

NOW, THEREFORE, for and in consideration of the mutual covenants and premises herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and confessed by the parties hereto, the parties hereto do hereby agree as follows:

 

AGREEMENT:

 

1. The Lease is and shall be subject and subordinate to the Mortgage, and to all renewals, modifications, consolidations, replacements and extensions thereof, to the full extent of the principal sum secured thereby and interest accrued and from time to time unpaid thereon, subject to this Agreement.

 

2.  So long as Tenant is not in default as defined in the Lease in the payment of rent, additional rent or other charges or conditions of the Lease, Tenant shall not be disturbed by Lender in Tenant’s possession, enjoyment, use and occupancy of the Premises during the original or any renewal term of the Lease or any extension or modification thereof, and Lender agrees to be bound by the Lease and all of the terms and conditions thereof. In the event of a conflict between the provisions of the Lease and the Mortgage, the terms of the Lease shall prevail.

 

3.  Should Lender become the owner of the Property, or should the Property be sold by reason of foreclosure or other proceedings brought to enforce the Mortgage which encumbers the Property, or should the Property be transferred by deed in lieu of foreclosure, or should any portion of the Property be sold under a trustee’s sale, this Lease shall continue in full force and effect as a direct lease between the then owner of the Property covered by the Mortgage and Tenant, upon, and subject to, all of the terms, covenants and conditions of the Lease for the balance of the term thereof remaining, including any extensions therein provided. Tenant does hereby agree to attorn to Lender or to any such owner as its landlord, and Lender hereby agrees that it will accept such attornment.

 

  

 

  

 

4.  Notwithstanding any other provision of this Agreement, Lender shall not be (a) liable for any default of any landlord under the Lease (including Landlord), except that Lender agrees to cure any default of Landlord that is continuing as of the date Lender forecloses the Property and receives title to the Property within thirty (30) days from the date Tenant delivers written notice to Lender of such continuing default, unless such default is of such a nature to reasonably require more than thirty (30) days to cure and then Lender shall be permitted such additional time as is reasonably necessary to effect such cure, provided Landlord diligently and continuously proceeds to cure such default; (b) subject to any offsets or defenses which have accrued prior to the date of foreclosure, unless Tenant shall have delivered to Lender written notice of the default which gave rise to such offset or defense and permitted Lender the same right to cure such default a permitted Landlord under the Lease; (c) bound by any Rent that Tenant may have paid under the Lease more than one month in advance; (d) bound by any amendment or modification of the lease hereafter made without Lender’s prior written consent; (e) responsible for the return of any security deposit, if any, delivered to Landlord under the Lease and not subsequently received by Lender.

 

5.   Tenant agrees that upon receipt of written notice from Lender of an uncured default by Landlord under the Mortgage or the note secured by the Mortgage, all checks for all or any part of rentals and other sums payable by Tenant under this Lease shall be delivered to and drawn to the exclusive order of Lender unless Lender or a court of competent jurisdiction directs otherwise. Such an assignment of rents shall not relieve Landlord of any of its obligations under the Lease and shall not modify or diminish any rights granted to Tenant by the Lease or this Agreement, including but not limited to, Tenant’s rights of offset or deduction. Landlord relieves Tenant of all liability for the payment of any sums as required under this paragraph 5. Tenant shall have no liability nor obligation to verify the existence of any default so alleged by Lender.

 

6.   All notices and other communications hereunder shall be in writing and shall be deemed given when received or refused, whether personally, by facsimile transmission (followed by regular mail), registered or certified mail (return receipt requested); or by an overnight courier service such as FedEx, to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

 

If to Tenant:

 

PNC Bank, National Association

c/o PNC Realty Services

Two PNC Plaza - 19th Floor

620 Liberty Avenue

Pittsburgh, PA 15222

Attn: Leasing Manager

 

If to Lender:

__________________________

__________________________

__________________________

Attn: _____________________

 

If to Landlord:

__________________________

__________________________

__________________________

Attn: _____________________

 

7.   Said Mortgage shall not cover nor encumber and shall not be construed as subjecting in any manner to the lien thereof any of Tenant’s improvements or trade fixtures, furniture, equipment or other personal property at any time placed or installed in the Premises (defined as Tenant’s Property under the Lease). In the event the Property or any part thereof shall be taken for public purposes by condemnation or transfer in lieu thereof or the same are damaged or destroyed, the rights of the parties to any condemnation award or insurance proceeds shall be determined and controlled by the applicable provisions of the Lease.

 

  

 

  

 

8.   This Agreement shall inure to the benefit of and be binding upon the parties hereto, their successors in interest, heirs and assigns and any subsequent owner of the Property secured by the Mortgage.

 

9.   Should any action or proceeding by commenced to enforce any of the provisions of this Agreement or in connection with its meaning, the prevailing party in such action shall be awarded, in addition to any other relief it may obtain, its reasonable costs and expenses, not limited to taxable costs, and reasonable attorneys’ fees.

 

10. Tenant shall not be enjoined as a party/defendant in any action or proceeding which may be instituted or taken by reason or under any default by Landlord in the performance of the terms, covenants, conditions and agreements set forth in the Mortgage, unless necessary to vest marketable title in Lender/Mortgagee.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written.

	  	
TENANT: PNC BANK, N.A.

	  	  	  
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	
Vice President

	  	  	  
	  	
LENDER:

	  
	  	  	  
	  	
By:

	  
	  	
Name:

	  
	  	
Title:

	  
	  	  	  
	  	
LANDLORD:

	  
	  	  	  
	  	
By:

	  
	  	
Name:

	   
	  	
Title:

	  

 

  

 

  

 

EXHIBIT A

 

to Subordination, Non-Disturbance and Attornment Agreement

 

LEGAL DESCRIPTION OF PROPERTY

 

  

 

  

 

EXHIBIT E

PNC LEASES

 

Those certain fifty (50) lease agreements between Landlord and Tenant dated as of the date hereof relating to real property commonly known as the following street addresses:

 

  

 

  

 

	
Street Address

	
City

	
County

	
State

	
9 West Somerset Street

	
Raritan

	
Somerset

	
NJ

	
12 Outwater Lane

	
Garfield

	
Bergen

	
NJ

	
16 Highwood Avenue

	
Tenafly

	
Bergen

	
NJ

	
31 S Chester Road

	
Swarthmore

	
Delaware

	
PA

	
34 East Market Street

	
Blairsville

	
Indiana

	
PA

	
36 Bergen Street

	
Westwood

	
Bergen

	
NJ

	
45 South Martine Avenue

	
Fanwood

	
Union

	
NJ

	
49 Little Falls Road

	
Fairfield

	
Essex

	
NJ

	
50 Main Street

	
West Orange

	
Essex

	
NJ

	
82 Greenbrook Road

	
Dunellen

	
Somerset

	
NJ

	
108 East Main Street

	
Somerset

	
Somerset

	
PA

	
114 West State Street

	
Media

	
Delaware

	
PA

	
141 Franklin Turnpike

	
Mahwah

	
Bergen

	
NJ

	
150 Paris Avenue

	
Northvale

	
Bergen

	
NJ

	
204 Raritan Valley College Drive

	
Somerville

	
Somerset

	
NJ

	
207 S State Street

	
Clarks Summit

	
Lackawanna

	
PA

	
222 Ridgewood Avenue

	
Glen Ridge

	
Essex

	
NJ

	
294 Main Avenue

	
Clifton

	
Passaic

	
NJ

	
315 Haddon Avenue

	
Haddonfield

	
Camden

	
NJ

	
321 E 33rd Street

	
Paterson

	
Passaic

	
NJ

	
359 Georges Road

	
Dayton

	
Middlesex

	
NJ

	
401 West Tabor Road

	
Philadelphia

	
Philadelphia

	
PA

	
403 N Baltimore Street

	
Dillsburg

	
York

	
PA

	
404 Pennsylvania Avenue East

	
Warren

	
Warren

	
PA

	
410 Main Street

	
Orange

	
Essex

	
NJ

	
422 Broad Street

	
Bloomfield

	
Essex

	
NJ

	
425 Boulevard

	
Mountain Lakes

	
Morris

	
NJ

	
470 Lincoln Avenue

	
Pittsburgh

	
Allegheny

	
PA

	
489 Pleasant Valley Way

	
West Orange

	
Essex

	
NJ

	
510 North 6th Street

	
Philadelphia

	
Philadelphia

	
PA

	
555 Cranbury Road

	
East Brunswick

	
Middlesex

	
NJ

	
572 Pompton Avenue

	
Cedar Grove

	
Essex

	
NJ

	
583 Kearny Avenue

	
Kearny

	
Hudson

	
NJ

	
588 Newark-Pompton Turnpike

	
Pompton Plains

	
Morris

	
NJ

	
591 Route 33

	
Millstone

	
Monmouth

	
NJ

	
RR1 Box 640 (Route 611)

	
Tannersville

	
Monroe

	
PA

	
640 E. Landis Avenue

	
Vineland

	
Cumberland

	
NJ

	
1001 Cooper Street

	
Deptford

	
Gloucester

	
NJ

	
1001 East Erie Avenue

	
Philadelphia

	
Philadelphia

	
PA

	
1136-1144 Main Street

	
Paterson

	
Passaic

	
NJ

	
1170 West Baltimore Pike

	
Media

	
Delaware

	
PA

	
1265 McBride Avenue

	
West Paterson

	
Passaic

	
NJ

	
1485 Blackwood-Clementon Road

	
Clementon

	
Camden

	
NJ

	
1921 Washington Valley Road

	
Bridgewater Township

	
Somerset

	
NJ

	
1933 Bordentown Avenue

	
Sayreville

	
Middlesex

	
NJ

	
2200 Cottman Avenue

	
Philadelphia

	
Philadelphia

	
PA

	
2431 Main Street

	
Lawrence Township

	
Mercer

	
NJ

	
5900 N Broad Street

	
Philadelphia

	
Philadelphia

	
PA

	
7811 Tylersville Road

	
West Chester

	
Butler

	
OH

	
8340 Germantown Avenue

	
Philadelphia

	
Philadelphia

	
PA

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