Document:

exv10w65

 

Exhibit 10.65

LEASE AGREEMENT

between

Cedar Glen, L.L.C.

A New Jersey Limited Liability Company

And

Dover Saddlery Retail, Inc., d/b/a Dover

Saddlery

 

 

LEASE AGREEMENT

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE:
	 	 	 	 
	1. PREMISES
	 	 	1	 
	2. TERM
	 	 	2	 
	3. RENT
	 	 	3	 
	4. CONDITION AND PREPARATION OF PREMISES
	 	 	5	 
	5. REAL ESTATE TAXES AND OTHER
GOVERNMENTAL CHARGES
	 	 	8	 
	6. COMMON AREA
	 	 	10	 
	7. SECURITY
	 	 	12	 
	8. USE
	 	 	13	 
	9. UTILITIES
	 	 	20	 
	10. MARKETING
	 	 	20	 
	11. INSURANCE, INDEMNITY AND LIABILITY
	 	 	21	 
	12. DAMAGE/DESTRUCTION OF DEMISED
PREMISES/SHOPPING CENTER
	 	 	25	 
	13. SUBORDINATION AND ATTORNMENT
	 	 	27	 
	14. QUIET ENJOYMENT
	 	 	27	 
	15. ACCESS
	 	 	27	 
	16. CONDEMNATION
	 	 	27	 
	17. ASSIGNMENT, SUBLETTING AND ENCUMBERING
THE LEASE
	 	 	27	 
	18. END OF TERM
	 	 	30	 
	19. DEFAULT
	 	 	31	 
	20. REMEDIES ON DEFAULT
	 	 	32	 
	21. GOVERNMENTAL APPROVALS
	 	 	34	 
	22. GENERAL PROVISIONS
	 	 	35	 
	23. DEFINITION OF LANDLORD; LIABILITY OF LANDLORD
	 	 	41	 

 

 

LEASE AGREEMENT

     THIS AGREEMENT, made this ___day of January 2008

     BETWEEN Cedar Glen, L.L.C., a New Jersey limited liability company, with a principal
office at 107 Mount Horeb Road, Warren, New Jersey 07059, hereinafter referred to as
“LANDLORD”,

     AND Dover Saddlery Retail, Inc., a corporation organized under the laws of the state
of Massachusetts and authorized to do business in the state of New Jersey, having a
principal place of business at 525 Great Road, Littleton, Massachusetts 01746 hereinafter
referred to as “TENANT”.

W I T N E S S E T H:

     1. PREMISES. Landlord demises unto Tenant, and Tenant leases from Landlord,
for the Term and upon the terms and conditions hereinafter set forth, certain premises
consisting of approximately 11,552 square feet of total net rentable area,
hereinafter referred to as the “Premises” or “Leased Premises” or “Demised Premises”, in a
shopping center located at 3150 State Highway Route 22 in the Township of Branchburg,
County of Somerset, New Jersey, on the lands more particularly described or depicted on
Exhibit “A” attached hereto and made a part hereof, hereinafter referred to as the
“Shopping Center”, and the Demised Premises being outlined in red and shown as Units 7, 8
and 9 on Exhibit B attached hereto and made a part hereof, together with the right to the
non-exclusive use, in common with other facilities designed for common use, as may be
installed by Landlord, and of such other facilities as may be provided or designated from
time to time by Landlord for the common use, subject to the terms and conditions of this
Lease. Landlord warrants that it is the owner of the tract of land shown on Exhibit “A”,
hereinafter referred to as the “Landlord’s Property”. The Demised Premises constitute
twenty eight and forty-three hundredths (28.43%) of the total square footage of the gross
leasable area (40,635 square feet) in the Shopping Center, which percentage shall be deemed
“Tenant’s Pro Rata Share” for purposes of this Lease, including apportioning real estate
taxes, insurance and other governmental charges, Common Area Maintenance Expenses, and any
other Additional Rent, where appropriate. The Demised Premises shall extend to the
exterior faces of exterior walls or to the building line where there is no wall, or the
center line of those walls separating the Premises from other leased premises in the
Shopping Center, together with the appurtenances specifically granted in this Lease, but
reserving and excepting to Landlord the right to install, maintain, use, repair and replace
pipes, ductwork, conduits, utility lines and wires through hung ceiling space, column
space, and partitions, in or beneath the floor slab or above or below the Premises or other
parts of the Shopping Center, which work shall not include the distribution of ductwork,
diffusers, and supply and return grilles of the HVAC System of the Demised Premises,
together with all other work which

 

 

shall be the obligation of Tenant to complete as set
forth in
this Lease. In performing the Landlord’s Work set forth on Exhibit “C”, Landlord
shall not unreasonably interfere with or interrupt the business operations of Tenant within
the Demised Premises and, except where necessary as determined by Landlord’s architect, no
pipes, conduits, utility lines or wires installed by Landlord shall be exposed in the
Demised Premises. The exact square footage in the Shopping Center and in the Demised
Premises shall be determined by Landlord’s architect within ninety (90) days after the
Delivery of Possession Date, and includes an allocable share of the common facilities as
shown on Exhibit “B”. The certificate of Landlord’s architect as to square footage in the
Demised Premises, including an allocable share of common facilities, (“Square Foot Area”)
shall be binding upon both parties hereto. In the event that the Square Foot Area, as
determined by Landlord’s architect, differs from the square footage set forth hereinabove,
the Fixed Minimum Annual Net Rental to be paid by Tenant shall be adjusted after the exact
square footage is determined, by multiplying the actual square footage by the Square Foot
Rent set forth in Article 3(a), and the Fixed Minimum Annual Net Rental as determined by
this Article shall control. In addition, Tenant’s Pro Rata Share shall also be adjusted
based on the ratio of the actual Square Foot Area to the total square footage in the
Shopping Center. Tenant shall not be required to pay for more than three (3) percent in
excess of the square footage stated herein, nor shall the Tenant be required to accept
space that is less than ninety-seven (97) percent of the stated square footage.

     2. TERM. The term of this Lease shall be ten (10) years (the “Primary Term”),
unless sooner terminated in accordance with the terms hereof, with two (2) consecutive
option terms to renew for a period of five (5) years each (the “Renewal Term”), which may
be executed by Tenant, provided that Tenant is not in default of the terms and conditions
of this Lease. Tenant must provide written notice to Landlord to exercise said options to
renew no later than twelve (12) months prior to the expiration of the Primary Term and
twelve (12) months prior to the expiration of the first Renewal Term. The primary term and
the Renewal Term are hereinafter collectively referred to as the “Lease Term”. The parties
hereto acknowledge that certain obligations under various Articles hereof may commence
prior to the Lease Term, i.e. construction, hold harmless, liability insurance, etc., and
except for the payment of rent prior to the Rental Commencement Date, the parties hereby
agree to be bound by the terms and conditions of this Lease prior to the commencement of
the Lease Term.

     The first lease year shall end on the January 31st following the first full
calendar year. Landlord and Tenant acknowledge that the first lease year may be more than
twelve (12) calendar months. Each subsequent lease year shall commence on February
1st and end on the following January 31st.

     To have and to hold the same for the term of this Lease, to commence upon the earlier
of following events:(a) the date the Tenant opens for business to the public or (b)

 

 

the date next following the expiration of one hundred twenty (120) days after substantial
completion of Landlord’s Work and Delivery of Possession (except for Tenant punch-list
items) as set forth on Exhibit C attached hereto and made a part hereof (the “Rental
Commencement”).

     Tenant agrees to diligently pursue all required governmental approvals and permits
necessary for the construction and operation of Tenant’s business and Tenant’s Work
(“Exhibit D”) and in doing so, will apply for such permits and approvals within thirty (30)
days after lease execution.

     2.1 DUE DILIGENCE PERIOD. Tenant shall have the right to conduct an inspection of the
Premises, including the environmental condition thereof, for a period of thirty (30) days after
the Landlord’s delivery of a fully executed Lease to Tenant (the “Due Diligence Period”). Within
five (5) days of Tenant’s execution of the Lease, Landlord shall deliver to Tenant copies of all
information in its files relevant to environmental and title information. Tenant may provide
Landlord with written notice of its intent to terminate the Lease on or before the expiration of
the Due Diligence Period if Tenant reasonably determines that the Premises are not suitable for its
purposes based upon an environmental hazard or title defect. The Landlord shall have thirty (30)
days after receipt of Tenant’s notice of termination in which to cure any such defect. Tenant
shall repair any damage to the Premises caused by such inspection.

     3. RENT.

(a) Fixed Minimum Annual Net Rental.

     Commencing with the Rental Commencement Date, Tenant agrees to pay, as fixed minimum
annual net rent for the Leased Premises during the Term of this Lease, as follows:

               (i) PRIMARY TERM: Years 1 — 5: the sum of $23.25 per square foot (“Square Foot
Rent”) per annum, multiplied by the Square Foot Area, equaling the sum of
$268,584.00 per annum (the “Fixed Minimum Annual Net Rental”), payable on the first
day of each month in equal monthly installments of $22,382.00;

               (ii) Years 6 — 10: the sum of $25.58 per square foot per annum, multiplied by
the Square Foot Area, equaling the sum of $295,500.16 per annum, payable on the
first day of each month in equal monthly installments of $24,625.01;

               (iii) FIRST OPTION RENEWAL TERM: Years 11 — 15: the sum of $28.14 per square
foot per annum, multiplied by the Square Foot Area, equaling the sum of $325,073.28
per, payable on the first day of each month in equal monthly installments of
$27,089.44;

               (iv) SECOND OPTION RENEWAL TERM: Years 16 — 20: the sum of $31.52 per square
foot per annum, multiplied by the Square Foot Area, equaling the sum of $364,119.04
per,
payable on the first day of each month in equal monthly installments of
$30,343.25;

 

 

All of such monthly installments of the Fixed Minimum Annual Net Rental shall be payable to
Landlord, in advance, subject to no offsets or deductions of any kind or nature whatsoever,
without previous notice or demand therefor, with the first monthly installment to be due
and payable upon the Rental Commencement Date, and each subsequent monthly installment to
be due and payable on the first day of each and every month following the Rental
Commencement Date. If the Rental Commencement Date is a date other than the first day of a
month, then the rent for the period commencing with and including the Rental Commencement
Date until the first day of the following month (“Rental Commencement Month”) shall be
prorated at the value of one-thirtieth (1/30th) of the fixed monthly rent. The foregoing
Fixed Minimum Annual Net Rental is subject to adjustment as specified in Article 1 hereof.

          (b) Additional Rent. Throughout the Term of this Lease, Tenant shall pay to
Landlord, without demand, deduction, set-off or counterclaim, the sum of the Fixed Minimum
Annual Net Rental, and all “Additional Rent,” when and as the same shall be due and payable
hereunder. Unless otherwise stated, all other sums of money or charges that are payable,
whether to Landlord or otherwise, from Tenant pursuant to this Lease, are defined as
“Additional Rent” and are due with the payment of the Fixed Minimum Annual Net Rental on
the first day of each month as stated herein, without set-off or counterclaim, and the
failure to pay such charges carries the same consequences as Tenant’s failure to pay the
Fixed Minimum Annual Net Rental. All payments and charges required to be made by Tenant to
Landlord hereunder shall be payable in coin or currency of the United States of America, or
by check of Tenant, at the address indicated herein. No payment to or receipt by Landlord
of a lesser amount than the then amount required to be paid hereunder shall be deemed to be
other than on account of the earliest amount of such obligation then due hereunder. No
endorsement or statement on any check or other communication accompanying a check for
payment of any amounts payable hereunder shall be deemed an accord and satisfaction, and
Landlord may accept such check in payment without prejudice to Landlord’s right to recover
the balance of any sums owed by Tenant hereunder. Fixed Minimum Annual Net Rental and
Additional Rent may hereinafter be collectively referred to as “rent”. Additional Rent
shall also include marketing expenses as more particularly set forth in Article 10
infra.

          (c) Net Rent. In addition to the Fixed Minimum Annual Net Rental and all other
charges payable to Landlord from Tenant hereunder, throughout the Lease Term, Tenant shall
pay, without previous notice or demand therefor, and in the manner and upon the conditions
herein set forth, all other charges of any kind or nature attributable to the Demised
Premises, except as specifically set forth herein, it being the intention of the parties
that the rent payable to Landlord hereunder shall be absolutely net. Landlord shall be
responsible for replacement of the roof and maintaining the structure of the building at
its sole cost and expense.
Notwithstanding the foregoing, Landlord shall have no expense attributable to the operation
and maintenance of the Shopping

 

 

Center or the Demised Premises (except as specifically
reserved by, or imposed upon, Landlord in this Lease), except for the payment of its own
mortgage costs.

          (d) Service Charges for Late Payment. In the
event that any sums required to be paid by Tenant under this Lease are not received by
Landlord on or before the fifth (5th) calendar day after the same are due, then, for each
and every late payment (“Late Payment”), Tenant shall immediately pay, in addition to the
Late Payment, as Additional Rent, service charges as follows:

	 	(i)	 	Five (5%) percent of the Late Payment for any Late Payment that is paid
between the sixth (6th) calendar day and the tenth (10th) calendar day after
same is due; and
	 
	 	(ii)	 	Five (5%) percent of the Late Payment for each and every five (5)
calendar day period or part thereof after the tenth (10th) calendar day after
the same is due.

     Notwithstanding this service charge, Tenant shall be in default under this Lease if
all payments that are required to be made by Tenant under this Lease are not made at or
before the times herein stipulated. After thirty (30) days, any Late Payment shall accrue
interest as set forth in Article 23(i).

          (e) Trash Removal. Landlord shall furnish a dumpster in a central location
which is accessible for trash pickup where Tenant may place trash for removal by an outside
company retained by Landlord. The cost of this dumpster shall be shared by the tenants in
the Shopping Center on a consumption basis, as determined by Landlord in its sole
and absolute discretion and the refuse removal company based upon square footage and type
of use. Trash removal shall not be considered as part of the Common Area Maintenance
Expenses, and shall be invoiced by Landlord to Tenant monthly for payment to be made on the
first day of each month of the Term.

     4. CONDITION AND PREPARATION OF PREMISES.

          (a) Site Plan and Floor Plan. Exhibit “A” sets forth the general layout of the
Shopping Center. Landlord may change or alter any of the stores, Common Area or any other
aspect in the Shopping Center, or may sell or lease any portions of the Shopping Center,
all without the consent of or notice to Tenant. Landlord hereby agrees that, except as set
forth in Article 22 hereafter, Tenant’s location of the Demised Premises shall not be
changed after the Rental Commencement Date. Exhibits “B” and “B-1” hereto consist of the
elevation and floor plan of that portion of the Shopping Center in which the Demised
Premises shall be located.

          (b) Landlord’s Work. Landlord, at its expense, shall construct the building
wherein the Demised Premises is to be located, substantially in accordance with the
approved

 

 

plans and specifications for the Shopping Center as well as pursuant to the
“Description of Landlord’s Work” attached hereto and made a part thereof as Exhibit “C”
(“Landlord’s Work”). Landlord, at its sole cost and expense, shall obtain the requisite
permits and approvals for completion of Landlord’s Work and as indicated within Exhibit
“C.” All other work done by Landlord at Tenant’s request shall be at Tenant’s expense and
shall be paid for within five (5) days after the presentation to Tenant of a bill for such
work. Landlord shall be responsible for replacement of the roof and maintaining the
structure of the building at its sole cost and expense.

     Landlord acknowledges that it is responsible for all repair, maintenance and
replacement of the roof and structural portions of the Shopping Center, which costs shall
not be billed in any manner to the Tenant as Common Area Maintenance costs or Additional
Rent. Landlord warrants the roof of the Shopping Center is new construction and will
reimburse Tenant for all verifiable Tenant costs due to roof leaks. This provision shall be
void if the Tenant fails to use the Landlord’s approved roofing contract for any and all
roof work and/or roof penetrations performed by Tenant, its employees, contractors or
agents or if a leak has been caused by any action of the Tenant.

          (c) Delivery of Possession Date. Landlord shall keep Tenant advised of the
progress of Landlord’s Work. On the day when Landlord has substantially completed
Landlord’s Work, such that the Demised Premises are ready for Tenant to begin its work
under Paragraph (d) of this Article, upon notice from Landlord (the “Delivery of Possession
Date”), Tenant agrees to take physical possession of the Demised Premises, and thereafter
Tenant agrees to diligently perform Tenant’s Work as defined in Article 4(d) below. In the
event that the Premises have not been delivered to Tenant within sixty (60) days of the
execution of this Lease Agreement, or such other date as the parties may agree following
the execution of the Lease and completion of the Landlord’s Work, the Date of Delivery of
Possession may be extended for a period of three (3) months by the Landlord provided that
the Landlord is diligently seeking to complete its work set forth herein and has been
delayed through no fault of its own. If the Premises have not been delivered within such
three (3) month extension then Tenant may terminate the Lease. The Landlord shall give
Tenant ten (10) days written notice prior to the Delivery of Possession Date. For each day
beyond sixty (60) days of the execution of this Lease Agreement that delivery of possession
to Tenant is delayed and has not occurred, then in such event Tenant shall earn one free
day of Rent to be applied against the initial installments of Rent hereunder.

     (d) Tenant’s Work. Other than work done pursuant to Article 4(b), all work to
the Demised Premises is to be performed by Tenant, at its cost and expense (hereinafter
referred to as “Tenant’s Work”) in accordance
with Exhibit “D” attached hereto and made a part hereof, with only contractors who are
approved by Landlord, which approval shall not be unreasonably withheld or delayed, and in

 

 

accordance with the provisions hereof. All entry into the Demised Premises in connection
with Tenant’s Work, and all work done by Tenant, shall be at Tenant’s risk. Prior to any
such entry in the Premises or the commencement of any of Tenant’s Work, Tenant shall
deliver to Landlord for approval all plans and specifications of Tenant’s proposed work,
copies of all permits obtained by Tenant for said work, Certificate of Occupancy, and
evidence of appropriate insurance coverages naming Landlord and its managing agent as
additional insureds and loss payees. All work performed by Tenant shall be subject to
Landlord’s prior written approval and shall be in accordance with good construction
practices, all applicable laws, insurance requirements, and Landlord’s reasonable rules and
regulations. Fire-suppression and roofing work shall be done by Landlord’s contractors
only. Any electrical, plumbing, signage, heating, air-conditioning and ventilating shall
only be done by contractors that are approved by Landlord in advance or as may be
designated by Landlord. Further, Landlord shall have no responsibility or liability for
any loss or damage to any property belonging to Tenant arising out of the performance of
Tenant’s Work. Tenant agrees to pay for all utilities used or consumed in the Demised
Premises by Tenant on and after the Delivery of Possession Date. Tenant shall be
responsible to the respective utility companies for water, gas, electricity and sewer (if
separately metered), which meters must be registered in Tenant’s name. Tenant shall obtain,
at Tenant’s sole cost and expense, all certificates and approvals which may be necessary so
that a Certificate of Occupancy for the Demised Premises may be issued, and copies of all
of such certificates shall be delivered to Landlord. Except for Landlord’s Work, Tenant
shall diligently ready the Demised Premises for the opening of Tenant’s business by the
Rental Commencement Date by completing Tenant’s Work and by installing such stock, fixtures
and equipment as may be necessary and appropriate. Landlord and Tenant agree to cooperate
in Tenant’s efforts to obtain a Certificate of Occupancy, and Landlord agrees to perform
all work necessary on the Shopping Center as a whole as may be required for Tenant to
obtain a Certificate of Occupancy for the Demised Premises. Landlord shall not hold Tenant
accountable in the event that Tenant’s failure to obtain the Certificate of Occupancy is
due to the actions or inactions of Landlord. Tenant covenants and agrees that the Demised
Premises, when ready for occupancy, will comply with all municipal, state and county rules
and regulations, and agrees to procure a permanent Certificate of Occupancy, if required,
issued by the municipality, upon the completion of the Demised Premises and prior to
occupancy by Tenant. If a temporary certificate is issued to Tenant, then Tenant shall
procure a permanent certificate prior to the expiration of the temporary certificate, as
same may be extended. Prior to the commencement of any Tenant’s Work or any use and
occupancy of the Demised Premises by Tenant, Tenant shall obtain public liability and
worker’s compensation insurance in such form and amounts as specified in Article 11 hereof
to cover every contractor to be employed by Tenant, and shall deliver duplicate originals
of all certificates of such insurance to
Landlord for written approval. Tenant shall be required to submit to the municipality for
Tenant’s Work within thirty (30) days of Lease Execution and Tenant will utilize its best

 

 

efforts to have permits in hand in anticipation of the scheduled Delivery of Possession
Date.

The “Tenant Improvement Period” shall commence on the Delivery of Possession Date and shall
expire upon the earlier of (i) one hundred twenty (120) days or (ii) Tenant opening for
business to the public. In no event shall the Tenant Improvement Period be less than one
hundred twenty (120) days, unless Tenant shall have opened for business prior to the
expiration of the Tenant Improvement Period.

          (e) Tenant Improvement Allowance.

               Tenant shall receive from Landlord a $7.00 per square foot Improvement Allowance to
assist Tenant with its finishing costs. The Improvement Allowance shall be paid by Landlord
according to the following schedule and not credited against Minimum Rent or Additional
Rent. The Improvement Allowance shall be paid as follows: (1) fifty percent (50%) upon the
Delivery of Possession Date and (2) fifty percent (50%) upon Tenant’s opening for business
and providing General Contractor Lien Waivers to the Landlord. If the Improvement
Allowance is not paid within thirty (30) days as specified, Tenant may deduct same from
Rent.

          (f) Alterations by Tenant.

          (i) Tenant may not make any exterior or structural alterations to the Demised
Premises. In addition, Tenant shall not make, except with Landlord consent, not to
be unreasonably withheld or delayed, any interior alterations, except for
alterations to the decor of the Demised Premises (not structural or mechanical
systems). In making “non-décor” interior alterations, Tenant shall prior to
commencing work first deliver detailed plans and specifications to Landlord and
obtain Landlord’s prior written consent, which consent shall not be unreasonably
withheld or delayed. Tenant shall reimburse Landlord for any reasonable
out-of-pocket expenses associated with such review and approval, including, without
limitation, engineering, architectural and attorneys’ fees. Any such alterations
shall be performed in a good and workmanlike manner and in accordance with
applicable legal and insurance requirements and the terms and provisions of this
Lease. Tenant shall be able to hire contractors of its choice, subject to Landlord
approval not to be unreasonably withheld or delayed, for said interior alterations
(non-structural or mechanical), provided said contractors are fully insured and
bonded with all such work that is performed undertaken and completed in a first
class manner. Alterations to the floor slab and/or any openings in the floor slab
may only be made by cutting the slab with a concrete saw. Tenant may not alter or
open the floor slab with a jack-hammer or sledge-hammer.

          (ii) In the event that any mechanic’s lien is filed against the Demised
Premises or the Shopping Center as a result of any work or act of

 

 

Tenant, Tenant, at
its expense, shall discharge or bond off the same within ten (10) days from the
filing thereof. If Tenant fails to discharge said mechanic’s lien, Landlord may
bond or pay such lien without inquiring into the validity or merits thereof, and all
sums so advanced, plus any expenses associated therewith, including legal fees,
shall be paid on demand as Additional Rent.

          (iii) If, in an emergency, it shall become necessary for Landlord to make
repairs that are required to be made by Tenant, Landlord may re-enter the Demised
Premises and proceed to have such repairs made and pay the costs thereof. Tenant
shall pay or reimburse Landlord for the costs of such repairs on demand as
Additional Rent.

          (iv) If, as a result of any alterations or improvements by Tenant, any taxes
are imposed on Landlord, or any taxes on the Shopping Center are increased, Tenant
shall be solely responsible for same, and shall pay same when due or as Additional
Rent under this Lease.

          (v) Landlord shall submit to Tenant a list of approved contractors (the
“Approved Contractors”) upon delivery of possession of the Premises to Tenant.
Tenant shall be required to use an Approved Contractor, whether or not Landlord’s
consent is required for the alteration. In the event of an emergency, Tenant shall
be obligated to use its best efforts to contact an Approved Contractor prior to
retaining the services of a non-Approved Contractor.

          5. REAL ESTATE TAXES AND OTHER GOVERNMENTAL CHARGES.

               (a) Payment. Beginning on the Rental Commencement Date, Tenant shall pay, as
Additional Rent, Tenant’s Pro Rata Share of any and all real estate taxes and assessments,
municipal water and sewer charges, and other governmental levies and charges, general and
special, ordinary and extraordinary, foreseen and unforeseen, of any kind or nature
whatsoever, which are or may be assessed or imposed upon the Shopping Center or the Demised
Premises or any part thereof, or which may become payable at any time during the Term of
this Lease (“Taxes”). For purposes of projection only, Taxes for the first year of
stabilization after value of the new construction improvements have been fully assessed are
estimated at approximately Three Dollars and Forty Cents ($3.40+/-) per square foot, which
figure cannot be finally determined until the Shopping Center is fully assessed and all of
the tenants therein are open for business. Notwithstanding the foregoing ($3.40+/-) per
square foot estimate on real estate taxes, Landlord will invoice Tenant monthly as part of
its Additional Rent only that amount of the real estate taxes which Landlord has been
invoiced by the municipal tax assessor of the Township of
Branchburg and not a projection of some arbitrary amount which the Property has not
been assessed. If at any time during the Term of this Lease, the present method of taxation

 

 

shall be changed so that in lieu of the whole or any part of any Taxes levied, assessed or
imposed on real estate and the improvements thereon, there shall be levied, assessed or
imposed on Landlord a capital levy or other tax directly on the rents received therefrom
and/or a franchise tax, assessment, levy or charge measured by or based, in whole or in
part, upon such rents for the present or any future building or buildings in the Shopping
Center, then all of such taxes, assessments, levies or charges, or the part thereof so
measured or based, shall be deemed to be included within the term “Taxes” for the purposes
hereof.

               (b) Method of Payment. Tenant’s Pro Rata Share of Taxes shall be paid monthly,
together with the payments of Fixed Minimum Annual Net Rental so that Landlord shall have
sufficient funds to pay Tenant’s Pro Rata Share of Taxes when due, without advancing same
on behalf of Tenant. On or about the Rental Commencement Date, Landlord shall provide
Tenant with a statement of:

     (i) the amount which Tenant must reimburse (where applicable) Landlord
for Taxes which are required to be paid by Landlord in advance with respect
to Tenant’s Pro Rata Share of Taxes for the current tax year,

     (ii) the amount which Tenant shall pay monthly such that, by the next
required tax payment date, Tenant will have paid its full share of Taxes for
the current tax payment period, and

     (iii) the amount which Tenant shall pay in equal monthly installments
following the next tax payment date.

     Monthly payments due shall be based on Landlord’s good faith estimate of Taxes
required to be paid following the Rental Commencement Date. Landlord may make adjustments
in its estimates as are necessary based on billings from the taxing authority and any
adjustments necessary shall be paid or credited within ten (10) days of Tenant’s receipt of
Landlord’s statement. Notwithstanding the expiration of the term hereof, Tenant shall
continue to be liable to Landlord for all Taxes incurred by Landlord for the period of
Tenant’s occupancy and the period after any default by Tenant resulting in the termination
of this Lease. Until such time as the Demised Premises are relet and such successor tenant
commences payment of its share of Taxes, Tenant shall promptly remit to Landlord any amount
due to Landlord upon notice from Landlord to Tenant.

     Any increase in Real Estate Taxes which result from a reassessment occasioned by the
sale or transfer of the Shopping Center, or any part thereof or interest therein, shall not
be chargeable to the Tenant, except once each 5 year period.

          (c) Appeal. Subject to the rights of Tenant hereunder or at law, Landlord
reserves the sole right to contest or appeal any Taxes, and Landlord shall adjust the

 

 

billings for Taxes based on the outcome of any such appeal or contest.

     6. COMMON AREA.

          (a) Use. During the Term of this Lease, Tenant is granted, subject to the
Rules and Regulations (as hereinafter defined) promulgated by Landlord from time to time,
the nonexclusive license to permit its customers, employees and invitees to use the
sidewalks, parking areas, loading docks (as applicable), pedestrian walks, stairways,
hallways, elevators, lobbies, vestibules, doorways, restrooms, and the entrance and exit
ways designated by Landlord for access and egress to and from the Demised Premises from a
public street or highway (“Common Area”). Landlord reserves the right to add to, reduce and
rearrange the Common Area, as Landlord deems in the best interest of the Shopping Center.
Notwithstanding anything contained in this Lease to the contrary, Landlord shall have the
sole and exclusive right, at any time and from time to time, without notice to or consent
of Tenant, to change the size, location, elevation and nature of any of the stores in the
Shopping Center or of the Common Area, or any part thereof, including, without limitation,
the right to locate and/or erect thereon kiosks, structures and other buildings and
improvements of any type, provided, however, that Landlord shall not impede the
visibility of or access to the Demised Premises by Tenant’s customers, employees or
invitees. Landlord shall have the sole and exclusive right to operate, manage and maintain
the Common Area. Subject to any easements and restrictions of record granted or approved by
Landlord from time to time, the Common Area shall be subject to the exclusive control and
management of Landlord, and Landlord shall have the right, at any time and from time to
time, to establish, modify, amend and enforce reasonable Rules and Regulations with respect
to the Common Area and the use thereof. Tenant agrees to abide by and conform with such
Rules and Regulations upon notice thereof and to enforce same upon its agents, employees,
contractors, subcontractors, licensees, customers, permitted concessionaires, and invitees.

          (b) Common Area Maintenance Expenses.

          (i) Landlord agrees to maintain and keep in good service and repair all Common
Area of the Shopping Center. As of the Rental Commencement Date, Tenant shall pay
to Landlord, as Additional Rent, Tenant’s Pro Rata Share of all costs and expenses
incurred by Landlord in maintaining and repairing the Common Area (the “Common Area
Maintenance Expenses”). The Common Area Maintenance Expenses shall include, but not
be limited to, the following costs and expenses:

          (A) gas, electricity, water, sewer and other utility charges (including
surcharges) as may be imposed by the utility companies ;

          (B) insurance premiums for the Shopping Center Common Areas including building,
fire and liability, excluding Tenant’s Premises; insurance

 

 

premiums for the Shopping
Center Common Areas for the first year of the Term are estimated at approximately
fifty-five cents ($0.55+-) per square foot; Tenant’s share of the insurance premiums
for the Shopping Center shall not exceed the estimate;

          (C) building personnel costs, including, but not limited to, other direct and
indirect costs of engineers, superintendents, watchmen, porters and any other
building personnel;

          (D) costs of service and maintenance contracts, including, but not limited to,
janitorial and general cleaning, and security services;

          (E) all other Common Area maintenance and repair expenses and supplies which
may be deductible for such calendar year in computing federal income tax liability;

          (F) any other costs and expenses (i.e., items which are not capital
improvements) incurred by Landlord in managing, operating and maintaining the
Shopping Center, including, but not limited to, the total costs and expenses
incurred in cleaning, planting, replanting and maintaining the landscaping,
assessments, repairs, repaving, line repainting, exterior repainting, rental and
maintenance of signs and equipment, gas and electric utility charges, lighting,
water and sewer charges, sanitary control, bookkeeping, removal of snow and ice,
trash and rubbish, garbage and other refuse, repair and/or replacement of onsite
water lines, electrical lines, gas lines, sanitary sewer lines and storm water
lines, the cost of personnel to implement such services such as third party property
management fees as per contract with third party manager, including directing
parking and policing the Common Area, fees for required licenses and permits, fire,
security and police protection, public address system(s), public toilets, all rental
charges for movable equipment, supplies, materials and labor;

          (G) the cost of any additional services not provided to the Shopping Center at
the Rental Commencement Date but thereafter provided by Landlord in the prudent
management of the Shopping Center;

          (H) the cost of any capital improvements to the Common Area which are necessary
in order to maintain the Common Area, which are made by Landlord after the
completion of the initial construction of the Shopping Center, provided, however,
that the cost of each such capital improvement, together with any financing charges
incurred in connection therewith, shall be amortized and/or depreciated over the
useful life thereof (but not to
exceed fifteen (15) years) and only that portion thereof attributable to such
lease year shall be included in the Common Area Maintenance Expenses for

 

 

such lease
year (the Landlord shall be solely responsible for maintenance and repairs to the
roof and structure of the building); and

          (I) Marketing Expenses as more particularly specified in Article 10.

     (ii) Common Area Maintenance Expenses shall not include principal payments or
interest payments on any mortgage, deed of trust or other financing encumbrance;
leasing commissions payable by Landlord; or deductions for depreciation of the
improvements shown on Exhibit “A”; costs of any work done for tenants in the
Shopping Center at that Tenant’s expense or as part of Landlord’s obligations
pursuant to a lease with that Tenant to improve that Tenant’s space; real estate
commissions; legal fees in connection with the leasing of space to tenants or the
termination of any lease agreement or the eviction of any such Tenant, roof
replacement and structural repairs/replacement; or any costs or expenses which are
reimbursed or paid to Landlord by other tenants, insurance companies, condemning
authorities, or other third parties.

     (iii) In no event shall Tenant’s share of Common Area Maintenance Expenses and
Taxes exceed that percentage derived by dividing the square footage of the Premises
by the total of all leasable square footage in the buildings comprising the Shopping
Center, whether or not such space is occupied.

     (iv) Annual increases in the Common Area Maintenance Expense shall not exceed
five percent (5%) on a non-cumulative basis, excluding the cost of snow removal and
common area utilities (not within Landlord control), which items may exceed the
Common Area Maintenance Expense cap as defined herein.

     (v) The Common Area Maintenance Expense may include a third party property
management fee, overhead or administrative charge which in the aggregate may not
exceed twelve percent (12%) of the Common Area Maintenance Expense, excluding the
costs of insurance and real estate taxes.

     (vi) The Common Area Maintenance Expense (excluding insurance premiums) for the
first year of the Term are estimated at approximately Three Dollars ($3.00+/-) per
square foot. Tenant’s share of the Common Area Maintenance Expense shall not exceed
the estimate for year one of the term.

     (c) Payment. Tenant shall pay to Landlord, in advance, Tenant’s Pro Rata Share
of Landlord’s estimate of Common Area Maintenance Expenses, as computed above, in twelve
(12) equal monthly installments, with the monthly
installment of Fixed Minimum Annual Net Rental. Notwithstanding the above, in the
event that Landlord at any time determines that the amount of Common Area Maintenance

 

 

Expenses actually being paid by Landlord exceeds the estimate upon which Tenant’s Pro Rata
Share of Common Area Maintenance Expenses was computed, Tenant, following a written request
from Landlord, shall commence to pay, with the next monthly installment of rent due
thereafter, an amount that is sufficient to result in Tenant’s paying its full Pro Rata
Share of Common Area Maintenance Expenses as computed on the basis of Landlord’s revised
estimate of Common Area Maintenance Expenses. Within one hundred twenty (120) days of the
end of each calendar year, there shall be an adjustment if the amount paid by Tenant
differs from Tenant’s Pro Rata Share of the amount of Common Area Maintenance Expenses
actually incurred in that year. Any amount due to Tenant or any amount due to Landlord
shall be credited against or paid with, respectively, the next monthly installment of
Additional Rent for Tenant’s Pro Rata Share of Common Area Maintenance Expenses.

     (d) Audit Right of Tenant. The Tenant shall have the right to hire an
accountant on an hourly basis to audit the Landlord’s books and records to verify the
calculation of the Common Area Maintenance Expenses, and the Landlord agrees to provide
such accountant with access to the financial records needed to conduct such an audit. In
the event that the audit discloses that the Landlord has overcharged, and the Tenant has
overpaid, Common Area Maintenance Expenses, the Landlord shall provide a credit to the
Tenant for such overpayment against the next payment(s) of Fixed Annual Net Rental payable
by the Tenant. In the event that the audit discloses that the Landlord has overcharged, and
the Tenant has overpaid, Common Area Maintenance Expenses by more than 5%, the Landlord
shall reimburse the Tenant for the cost of the audit provided that Tenant’s auditor has
been retained on an hourly basis and not a contingency basis.

     7. Intentionally Deleted.

     8. USE. Tenant shall have the right within the Shopping Center to use the
Premises as for the sale and display of saddles and tack, specialized apparel, horse care
and stable products, and such merchandise as sold from time to time in any of Tenant’s
other stores or catalogs, or via internet or other electronic commerce or technologies
offered by Tenant and related items and for no other use, subject to applicable laws and
the terms and conditions of this Lease. Landlord hereby represents that to the best of its
knowledge, the use granted under this paragraph is a permitted use under the Branchburg
zoning ordinances and any other relevant laws.

     Landlord covenants that Tenant shall be the only tenant in the Shopping Center with
the right to sell saddles and tack, specialized apparel, horse care and stable products
(“Exclusive Use” herein) except such Exclusive Use shall not apply to those existing
Tenants disclosed in writing to Tenant prior to the execution hereof with signed leases in
the Shopping Center where permitted use of such lease permits
the sale of saddles and tack, specialized apparel, horse care and stable products. In
the event Tenant’s Exclusive Use is violated, the same shall be Landlord default and
subject to Tenant providing written notification to Landlord of said Landlord default in
such regard, Landlord shall have a period

 

 

of thirty (30) days from receipt of such
notification of the default herein to cure. In the event the default has not been cured
within such thirty (30) day period, Tenant shall then have the right at such time to pay
three percent (3%) of gross sales in lieu of Minimum Annual Rent, Additional Rent and all
extra charges as otherwise provided, until the violation is corrected. Should the
violation of Tenant’s Exclusive Use not be cured within sixty (60) days of Tenant’s notice
of such violation, Tenant shall have the right thereafter, until such default is cured, to
terminate the Lease.

          (a) Operation. Tenant shall be required to accept possession of the Premises
and be open for at least one (1) day per week. Tenant shall operate its business during
regular business hours, and on holidays and Sundays if applicable, subject to compliance
with all applicable laws, ordinances, and regulations; however, Tenant shall not be
required to be open on a daily basis. Tenant shall have the further right to operate its
business beyond regular business hours as aforesaid, subject to compliance with all
applicable laws, ordinances, and regulations.

          (b) Closure By Tenant. If the Demised Premises remain closed for business to
the public for a period in excess of thirty (30) consecutive days, then, at any time
thereafter while the Demised Premises remain closed, Landlord shall have the right to
declare a default under this Lease by giving thirty (30) days’ notice to such effect to
Tenant and thereupon exercising such rights and remedies as may be appropriate.

          (c) Prohibited Uses. Tenant shall not do or permit anything to be done in or
about the Demised Premises, nor bring or keep anything therein, which is not within the
permitted use of the Demised Premises, which will in any way increase the existing rate of
or affect any fire or other insurance upon the Shopping Center or any of its contents, or
which will cause a cancellation of any insurance policy covering said Shopping Center or
any part thereof or any of its contents. Tenant shall not do or permit anything to be done
in or about the Demised Premises which will in any way obstruct or interfere with the
rights of other tenants or occupants of the Shopping Center or allow the Premises to be
used for any improper, immoral, unlawful or objectionable purpose; nor shall Tenant cause,
maintain or permit any nuisance in, on or about the Demised Premises. Notwithstanding the
foregoing, Tenant shall have the right to conduct up to two (2) “Tent/Sidewalk Sales” per
year outside of the Demised Premises, but not in any traffic or fire lane and as permitted
by local ordinance/code. Tenants may not obstruct pedestrian traffic in an unreasonable or
unsafe manner through the shopping center concourse. Each “Tent/Sidewalk Sale” shall be
limited to three days in duration and shall involve an area of no more than 40’ x 60’ in
the parking area. Tenant shall not commit or allow to be committed any waste in or upon
the Demised Premises. Tenant shall be solely responsible for applying to the municipality
for any permits/approvals for its outdoor sales or outdoor storage.  Further, the Tenant
must provide the Landlord with

 

 

30 days written notice of any tent sale or the placement of outdoor storage and the
Landlord must approve the location.

          Tenant acknowledges that the following are express prohibitions and/or restrictions
with respect to the Shopping Center:

               A. No animal, bird, fowl, poultry or livestock shall be maintained, kept, bred or
raised at the Shopping Center for commercial purposes. No structure for the care, housing,
or confinement of any animal, bird, fowl, poultry or livestock shall be maintained on any
portion of the Shopping Center. No animals shall be permitted upon the Common Areas except
as controlled on a leash or a similar device.

               B. No storage buildings or sheds, whether prefabricated, metal or any other
construction material whatsoever, whether permanent or temporary, shall be moved, placed,
assembled, constructed or otherwise maintained on the Shopping Center and be visible from
neighboring property or the Common Areas. No furniture, fixtures, appliances, or other
goods and chattels which are not in active use shall be stored in any building on the
Shopping Center in such manner that such material is visible from any neighboring property
or the Common Areas of the Shopping Center. Notwithstanding the foregoing, Tenant shall
have the right to maintain outside storage for no more than sixty (60) days each year in
connection with its Christmas sales effort as permitted by local ordinance/code.

               C. No rubbish or debris of any kind shall be placed or permitted to accumulate upon or
adjacent to any portion of the Shopping Center, and no odors or loud noises shall be
permitted to arise or emit therefrom, so as to render any such property unsightly,
offensive or detrimental to any other property in the vicinity thereof or to the occupants
of such other property. No other nuisance shall be permitted to exist or operate upon the
Shopping Center so as to be offensive or detrimental to any other property in the vicinity
thereof or to its occupants. Without limiting the generality of any of the foregoing
provisions, no exterior loudspeakers, horns, whistles, firecrackers, bells or other sound
devices, except security devices used exclusively for security purposes, shall be located,
used or placed in the Shopping Center. No activities shall be conducted upon the Shopping
Center or within any buildings or other improvements constructed on the Land which are or
might be unsafe or hazardous to any person or property. Without limiting the generality of
the foregoing, no firearms shall be discharged upon any portion of the Shopping Center, no
explosives of any kind shall be discharged or stored upon any portion of the Shopping
Center, and no open fires shall be lighted or permitted on any portion of the Shopping
Center. No lighting will be permitted, except as shown on the lighting plans that are a
part of the approved Site Plan for the Shopping Center and except as approved by Landlord
using its sole discretion.

               D. No garbage or trash shall be placed or kept on any portion of the Shopping Center,
except in covered containers of a type, size and style which are

 

 

approved by Landlord using its sole discretion and which are approved in accordance
with the Declaration. In no event shall such containers be maintained so as to be visible
from neighboring properties or the street, unless they are being made available for
collection and then only for the shortest time reasonably necessary to effect such
collection. Rubbish, trash, and garbage shall not be allowed to accumulate thereon or
therein. No outdoor incinerators shall be kept or maintained on any portion of the
Shopping Center.

               E. No lines, wires, or other devices for the communication or transmission of electric
current or power, including telephone, television, and radio signals, shall be erected,
placed or maintained anywhere in or upon any portion of the Shopping Center, unless the
same shall be contained in conduits or cables which are installed and maintained
underground or concealed in, under or on buildings, cabinets or other structures and are
approved by Landlord using its sole discretion (in addition to any approval required under
the Declaration).

               F. No motor vehicle which is classified by manufacturer rating as exceeding one (1)
ton, and no recreational vehicle, mobile home, commercial vehicle, travel trailer, tent
trailer, trailer, camper shell, detached camper, boat, boat trailer, or other similar
equipment or vehicle may be parked, maintained, constructed, reconstructed or repaired at
the Shopping Center. The provisions of this subsection shall not apply to loading or
unloading and short-term parking of such motor vehicles.

               G. No automobile, motorcycle, motorbike or other motor vehicle shall be constructed,
reconstructed or repaired upon the Shopping Center, and no inoperable vehicle may be stored
or parked at the Shopping Center; provided, however, that the provisions of this subsection
shall not apply to emergency vehicle repairs.

               H. No immoral, improper, offensive, or unlawful use shall be made of any portion of
the Shopping Center, and all Laws having jurisdiction thereover shall be observed. In
addition, the following uses are expressly prohibited: (i) adult bookstores; (ii) tattoo
parlors; (iii) off-track betting establishment; (iv) video or game arcade; (v) funeral
parlor; and (vi) drug or alcohol rehabilitation center.

          (d) Compliance With Laws. Tenant shall, at all times during the Term of this
Lease and its occupancy of the Demised Premises, comply with and maintain the Demised
Premises in accordance with all ordinances, laws, statutes, rules, regulations, directives,
orders or other requirements of all municipal, local, state, and federal governments or
public authorities or agencies having jurisdiction, now in effect or hereafter enacted
(“Laws”), including, but not limited to, any Laws relating to environmental conditions, and
the Americans with Disabilities Act, 42 U.S.C.A. §12101, et seq. Tenant
expressly covenants and agrees to indemnify, defend and save Landlord harmless from and
against any claim, damage, liability, cost, penalties and/or fines, including reasonable
attorneys’ fees, which Landlord may suffer as a result of any violation of or
non-compliance with any Laws by

 

 

Tenant in its use and occupancy of the Demised Premises. The foregoing covenant shall
survive the termination of the within Lease in connection with any obligation of Tenant
hereunder.

     Tenant shall have the right to contest the validity of any Laws or any violation of
any Laws, and to defer compliance pending such contest, if the non-compliance therewith
shall not constitute a crime and is not a hazardous condition in Landlord’s sole
discretion, and if compliance is so deferred, the deferment shall not be deemed a breach of
this covenant, provided that any such contest proceedings shall be prosecuted diligently
and in good faith. Tenant hereby agrees to indemnify and save Landlord harmless from and
against any and all claims, costs, expenses and liabilities, including but not limited to
reasonable attorneys’ fees, incurred by Landlord by reason of any such deferment or
contest.

          (e) Environmental. Landlord shall deliver the Premises free of all hazardous
materials including asbestos and any other pre-existing environmental risks or liabilities.
Landlord shall hold Tenant harmless from any and all costs and related liabilities
including without limitation removal and ongoing remediation of such pre-existing hazardous
materials and pre-existing environmental risks, provided same are not installed by Tenant.
Tenant represents, covenants and warrants that it will not operate an “industrial
establishment” as defined by the Industrial Site Recovery Act (“ISRA”), N.J.S.A. 13:1k-6
et seq. and the regulations promulgated thereunder as may be amended from
time to time, and covenants that it will not engage in the generation, manufacture,
refining, transportation, treatment, storage or handling of hazardous substances or
hazardous wastes, above or below the ground, as defined by ISRA (“Hazardous Substances”).
In the event that Tenant, in violation of this Lease, becomes an “industrial establishment”
as defined in ISRA, Tenant shall, at Tenant’s sole cost and expense, diligently, promptly
and fully comply with ISRA in any event, and in particular in the event of any “closing,
terminating or transferring of operations of an industrial establishment” as specified in
ISRA, and shall indemnify and hold harmless the Landlord from any and all fines, suits,
losses, damages, claims, expenses or liabilities, without limitation, including attorneys
fees, any claims from any succeeding tenant resulting from such violation and failure to
comply with ISRA. Tenant represents, covenants and warrants that Tenant shall not use the
Demised Premises to “discharge” (as such term is defined in the Spill Compensation and
Control Act, N.J.S.A. 58:10-23.11 et. seq. [“Spill Act"]) or permit any
discharge or spill of any “hazardous substances” (as such term is defined in the Spill Act)
or pollutants (“Discharge”). In the event that there shall be filed a lien against the
Demised Premises or the Shopping Center pursuant to and in accordance with the Spill Act,
arising from the intentional or unintentional action or omission of Tenant or Tenant’s
employees, agents, contractors, licensees, invitees, assigns or subtenants, then Tenant
shall, within thirty (30) days from the date that Tenant is given notice of the lien or in
such shorter period of time in the event that the State of New Jersey, or any

 

 

agency or subdivision thereof, has commenced steps to cause the Demised Premises or the
Shopping Center to be sold pursuant to the lien, pay the claim and remove the lien from the
Demised Premises and/or the Shopping Center. If Tenant fails to do so within said period,
Landlord shall be entitled to resort to such remedies as are provided in this Lease as in
the case of any default of the Lease, in addition to such remedies as are permitted at law,
in equity or otherwise. Tenant shall indemnify, defend and save harmless Landlord from and
against all fines, suits, procedures, claims, actions, damages, liabilities, judgments,
costs and expenses (including, without limitation, reasonable attorneys’ fees) of any kind
arising out of or in any way connected with Tenant’s or Tenant’s employees, agents,
contractors, licensees, invitees, assigns or subtenants whose actions or inactions or
failure to maintain the Demised Premises results in any spill or discharges of hazardous
substances, hazardous wastes or pollutants at the Demised Premises or the Shopping Center
or arising out of Tenant’s failure to provide all information, make all submissions and
take all actions required by the New Jersey Department of Environmental Protection in order
to comply with ISRA, the Spill Act, or any other environmental law or Laws (as defined
herein). Until such time as Tenant fully complies with ISRA and/or the Spill Act, if
applicable, and provides Landlord with evidence thereof, Tenant shall not be relieved of
its obligations and liabilities under this Lease, including payment of rent,
notwithstanding any termination of Tenant’s rights to the use and possession of the Demised
Premises, and Tenant may be deemed a “holdover tenant” entitling Landlord to such remedies
as may be applicable under the circumstances.

     In the event that ISRA compliance (or compliance with any other Laws) is required with
respect to the Premises for any reason, including, but not limited to Landlord’s execution
of a sale agreement for the Shopping Center, any change in ownership of the Shopping
Center, refinance of the Shopping Center, initiation of bankruptcy proceedings, Landlord’s
financial reorganization or sale of the controlling share of Landlord’s assets or stock, or
any action or inaction on the part of Tenant, then, at Landlord’s election (i) Landlord
shall comply with the requirements of ISRA inasmuch as such compliance relates to the
Premises, and Tenant shall be responsible for paying the costs of such compliance within
five (5) days after Landlord’s demand therefor, or (ii) Tenant shall be responsible for
promptly, and within the time frame established by Landlord, complying with ISRA inasmuch
as such compliance relates to the Premises and to pay the costs of such ISRA compliance.
Notwithstanding the above, however, in the event that ISRA compliance for the Shopping
Center becomes necessary because of any of the above-mentioned actions on the part of
Landlord, Tenant shall cooperate with Landlord; however, the costs therefor shall be paid
by Landlord unless they relate to a clean-up of the Premises occurring during the Term or
any renewal thereof, in which event all such costs shall be paid by Tenant. At no expense
to Landlord, Tenant shall promptly provide all information requested by Landlord for the
preparation of non-applicability affidavits and shall promptly sign such affidavits when
requested by Landlord.

 

 

          (e) Tenant’s Warranties. Tenant warrants, represents, covenants and agrees to
and with Landlord that, throughout the Lease Term, Tenant shall:

     (i) keep the Demised Premises and any platform or loading dock used by
Tenant in a neat, clean and businesslike condition, free of garbage and
refuse;

     (ii) pay, before delinquent, any and all taxes, assessments and public
charges imposed upon Tenant’s business or fixtures, and pay, when due, all
fees of a similar nature;

     (iii) observe all Rules and Regulations (as hereinafter defined)
established by Landlord for all tenants in the Shopping Center, provided
that Tenant shall be given at least five (5) days’ prior written notice
thereof;

     (iv) observe all restrictive covenants of record which are applicable
to the Shopping Center, provided that the same do not prohibit Tenant’s
permitted use of the Demised Premises;

     (v) not use the parking areas or sidewalks or any space outside the
Demised Premises for display, sale, storage, or any other similar
undertaking;

     (vi) not use any advertising medium or sound devices inside the Demised
Premises which may be heard outside the Demised Premises, or permit any
objectionable odors to emanate from the Demised Premises;

     (vii) keep the Demised Premises sufficiently heated to prevent freezing
of water in pipes and fixtures in and about the Demised Premises;

     (viii) keep the temperature within the Demised Premises at such levels
as may be required by any federal, state or local laws, ordinances, or
regulations;

     (ix) employ only such labor in the performance of any work in and about
the Demised Premises as will not cause any conflict or controversy with any
labor organization representing trades performing work for Landlord, its
contractors or subcontractors;

     (x) not use any glass of any window for the placement of any signs or
advertising;

     (xi) not use any exterior lighting or window lighting without
Landlord’s consent;

     (xii) not engage in any special type of merchandising sale, such as a
sale of damaged

 

 

merchandise, without the prior written consent of Landlord;

     (xiii) maintain and repair (but not be responsible for replacement
thereof at the end of their useful life which shall be defined as 8 years
from the date of Delivery of Possession) the HVAC system, water heater,
electrical and plumbing systems, walls, floors, doors, windows and interior
parts and fixtures of the Demised Premises in good repair and in a similar
condition as the same are in when Tenant’s Work is completed as specified
herein for the duration of the Lease term, including all option terms,
except, without limitation, for repairs occasioned by fire, the elements,
other casualty or unsafe condition of the building and structural and roof
repairs, all of which shall be the obligation of Landlord. Tenant shall be
provided with warranties for the HVAC system and water heater.

     (xiv) make all other repairs, renovations and alterations of any kind
or nature whatsoever throughout the Term of this Lease and all option
periods thereof;

     (xv) maintain all plate glass in the Demised Premises at Tenant’s sole
cost and expense. Any repairs to and replacements of any plate glass in the
Demised Premises shall be performed by a contractor who is approved by
Landlord in advance;

     (xvi) promptly give Landlord notice of any damage to the Demised
Premises or the Shopping Center or any alleged default by Landlord under
this Lease;

     (xvii) not change any locks to the Demised Premises or install any
additional locks or security devices without the prior written consent of
Landlord. Tenant acknowledges and agrees that Landlord shall have keys
(and/or any necessary access codes) so as to permit access to the Premises
for the purposes specified in Article 15. In the event that Tenant fails to
provide Landlord with keys and/or access codes so as to permit access to the
Premises as specified in this Article 8, Landlord shall not be responsible
for any damage to the Premises, access doors and/or plate glass in the event
that access must be gained to the Premises in an emergency; and

     (xviii) not employ, in the course of maintaining, improving, repairing,
restoring, reconstructing or altering the Demised Premises in accordance
with its rights and obligations under this Lease, any labor which is not an
Approved Contractor.

     (xix) Tenant is a corporation duly organized, validly existing and in
good standing

 

 

under the laws of the State of Massachusetts. Tenant has the power and
authority to enter into this Lease Agreement and to consummate the
transactions herein contemplated. The execution and delivery of this Lease
Agreement and the performance by Tenant of its obligations hereunder have
been duly authorized by all necessary corporate action of Tenant.

          (f) Parking. Tenant and its customers shall be permitted to utilize, in
common with the other tenants of the Shopping Center, the on-site parking area, as
shown on the site plan (Exhibit “A” hereto).

          (g) N.A.I.C.S. Number. Tenant represents and covenants that its N.A.I.C.S.
number, as indicated on its U.S. Income Tax Return, is                     .

          (h) Continuing Co-Tenancy Requirements. If at anytime during the Term of this
Lease (including Option Terms, if exercised), at least sixty percent (60%) of the entire
development of 108,000+/- square feet (including the “World Class” ShopRite Supermarket of
67,500+/-) is not open for business for ninety (90) consecutive days (the “Condition”),
except in the event that ShopRite closes for the purposes of renovation, repair or refit
(which period shall not exceed 180 days), Tenant shall have the option, until the Condition
is satisfied, upon thirty (30) days written notice to Landlord, to terminate the Lease.
Notwithstanding any contrary provision contained in the Lease, Tenant shall have the right
to elect to do either or both of the following: 1) Tenant shall pay Landlord rent at the
rate of 3% of Tenant’s gross sales in lieu of Minimum Annual Rent and Additional Rent as
provided in this Lease; or 2) should the Continuing Co-Tenancy Requirement not be met for
more than 365 days, Tenant shall have the ongoing right to terminate until such Condition
is satisfied.

          (i) Early Termination. On the fourth (4th) anniversary of the Rent
Commencement Date under this Lease, Tenant shall have the one-time right to terminate the
Lease if gross sales for the prior calendar year do not exceed $3,500,000 and provided
Tenant furnishes to Landlord, one hundred eighty (180) days prior written notice to
Landlord and whereby such Early Termination is contingent upon: (i) Tenant is not in
default under the Lease, and (ii) Tenant pays Landlord any unamortized tenant allowance and
brokerage fees. If the Tenant elects to exercise this Early Termination right, the Tenant
shall make its books available to the Landlord and the Landlord shall have the right to
hire an accountant to audit the Tenant’s books and records to verify the calculation of
gross sales and the Tenant agrees to provide such accountant with access to the financial
records needed to conduct such an audit.

          (j) Radius Restriction. Tenant may not open another store within one (1) mile
of the Shopping Center, which radius restriction shall not apply to the acquisition

 

 

by Tenant of a competitive store becoming a Dover Saddlery store.

     9. UTILITIES. Tenant shall pay for all utilities, including connection charges
and deposits, to the respective utility companies when and as the same become available for
its utilization, as recorded on separate meters, including water, gas, electricity, sewer
charges, and fuel consumed for heating in the Demised Premises, commencing with the
Delivery of Possession Date. If not separately metered, Tenant shall pay to Landlord, as
Additional Rent, Tenant’s allocable share of the sewer charges. Sewer charges shall be
allocated based on water consumption and usage by the tenants in the Shopping Center, and
Tenant shall pay sewer charges proportionately based upon such water consumption. Tenant
shall pay directly to the public utility companies, or reimburse Landlord as Additional
Rent if Landlord has previously paid therefor, the cost of the installation of any and all
such utility services that are not included in Landlord’s Work. Tenant shall pay for the
cost of all utility meters and the cost of installation thereof. Tenant agrees to
indemnify and hold harmless Landlord from and against any and all claims arising from the
installation and maintenance of such utility services and from all costs and charges for
utilities consumed on or in the Demised Premises. In the event that Tenant’s special
utilization of the Demised Premises shall result in a surcharge in utility costs or
insurance premiums generally applicable to the Shopping Center, such surcharges shall be
the responsibility of and paid for by Tenant. Except as otherwise set forth to the
contrary, the payments shall be reimbursed by Tenant to Landlord in the form of CAM and
pursuant to Tenant’s proportionate share.

     10. MARKETING. Marketing Obligation. Tenant shall also be required to
pay to Landlord, as Additional Rent, Tenant’s Pro Rata Share of “Marketing Expenses”
incurred by Landlord in advertising and promoting the Shopping Center. As used herein,
“Marketing Expenses” shall include, without limitation, costs and expenses for special
events, shows, displays, signs, seasonal events, institutional advertising, promotional
literature, and other activities designed to attract customers to the Shopping Center.
Landlord agrees that Tenant’s Pro Rata Share of Marketing Expenses shall not exceed Thirty
Five cents ($0.35) per year per square foot of the Demised Premises, subject to a fixed
increase not to exceed the lesser of the CPI or two point five percent (2.5%) per annum,
applicable to the Lease Term and any option, extension, and/or renewal thereof.

 

 

     11. INSURANCE, INDEMNITY AND LIABILITY.

          (a) Landlord’s Obligations.

     (i) During the Term of this Lease, Landlord shall obtain and maintain
fire and extended coverage insurance, insuring against all reasonable perils
and liabilities, for eighty (80%) percent of the replacement value of the
Demised Premises and Landlord’s Work. Such insurance shall be issued by an
insurance company licensed to do business in the jurisdiction in which the
Shopping Center is located;

     (ii) Landlord agrees to carry, or cause to be carried, during the Term
hereof, Commercial General Liability Insurance (hereinafter “Landlord’s
Liability Insurance”) on the Common Area, naming Tenant as an additional
insured and providing coverage of not less than Two Million Dollars
($2,000,000.00), combined Bodily Injury and Property Damage Liability;

     (iii) Landlord agrees to carry, or cause to be carried, during the Term
hereof, loss of rents insurance in the amount of one year’s Fixed Minimum
Annual Net Rental and Additional Rent, insuring Landlord against damages
which may result from any loss of rents resulting from Tenant’s loss of use
of any part of the Demised Premises;

     (iv) Landlord agrees to carry, or cause to be carried, during the Term
hereof, such other insurance as is customary and prudent in the ownership,
operating and maintenance of shopping centers generally; and

     (v) Tenant shall reimburse Landlord for Tenant’s Pro Rata Share of the
aforesaid insurance costs as a portion of the Common Area Maintenance
Expenses described in Article 6.

          (b) Tenant’s Obligations.

     (i) For and during the Term of this Lease, Tenant, at Tenant’s sole
cost and expense, shall obtain and maintain insurance policies providing the
following coverage:

     (A) Insurance for all perils included in the classification
“fire and extended coverage” under insurance industry practices in
effect from time to time in the jurisdiction in which the Shopping
Center is located, against loss to Tenant’s fixtures, equipment,
furnishings, merchandise, and other contents in the Demised
Premises, for the full replacement value of said items (but not
including the value of leasehold improvements which are approved by
Landlord

 

 

and which become part of the real estate upon their
completion); and

     (B) Comprehensive general liability insurance, naming Landlord,
its managing agent, any mortgagee and master lessor as additional
insureds, which policy is to be in the minimum amount of Two Million
Dollars ($2,000,000.00) combined single limit with respect to
personal injury and property damage; and

     (C) Business interruption insurance, insuring Tenant and
Landlord against any damages which may result from any loss of use
of the Demised Premises.

     (ii) Each of the policies described in this Paragraph (b) shall:

     (A) be acceptable to Landlord and any mortgagee in form and
content,

     (B) contain an express waiver of any right of subrogation by
the insurance company against Landlord, and Landlord’s agents,
employees, mortgagees, and ground lessors, except that Tenant may
retain the right of subrogation in the case of reckless or
intentional acts by Landlord or Landlord’s agents,

     (C) contain a provision that it shall not be canceled and that
it shall continue in full force and effect unless Landlord has
received at least thirty (30) days’ prior written notice of such
cancellation or termination, and

     (D) not be materially changed without prior notice to Landlord.

     (iii) Tenant shall not do or permit to be done any act which will invalidate or
be in conflict with the fire insurance policies covering the Shopping Center or any
other insurance referred to in this Lease. Tenant will promptly comply with all
rules and regulations relating to such policies. If the acts of Tenant or its
employees or agents shall increase the rate of premiums for any insurance referred
to in this Lease, such increases shall be immediately paid by Tenant as Additional
Rent. Upon written request from Landlord, Tenant shall deliver to Landlord
certificates of insurance or duplicate originals of each such policy.

     (iv) If the Tenant shall fail, refuse or neglect to obtain or maintain any of
the insurance required by this Lease and to show Landlord evidence of the same as
aforesaid, Landlord shall have the right to procure any such insurance upon fifteen
(15) days’

 

 

advance written notice to Tenant of Landlord’s intent to procure such insurance and
to recover the cost thereof as Additional Rent hereunder.

     (v) Tenant will sign the lease and deliver same to the Landlord for the
Landlord to sign after the Tenant has signed the lease. The Landlord will then sign
the lease and provide a signed copy to the Tenant. The Tenant will provide written
proof of insurance to the Landlord (in a form acceptable to the Landlord) within ten
(10) days of the date a copy of the signed lease is delivered to the Tenant. The
Tenant will also provide Landlord (in a form acceptable to the Landlord) with a
complete copy of the Tenant’s insurance policy for the demised premises within
fourteen (14) days of the date the signed lease is delivered to the Tenant. The
Tenant also agrees to furnish its insurance agent or insurance broker or insurance
company (as the case may be, if the Tenant purchases insurance directly from an
insurance company and not through an insurance broker or agent), a copy of the lease
as it pertains to insurance so that the insurance agent or insurance broker or
insurance company has sufficient information to provide the proper type(s) and
amount(s) of insurance coverage for the Tenant and the Landlord, as provided for in
the lease. Tenant agrees to notify its insurance agent or insurance broker or
insurance company that the Landlord is to receive a copy of any “notice to cancel”
that the insurance agent, insurance broker or insurance company issues to the
Tenant.

	 	(c)	 	Waiver of Subrogation/Covenants

To Hold Harmless.

          (i) Landlord and Tenant, and any party claiming through Landlord and Tenant,
each hereby releases the other, its officers, directors, employees, and agents from
and against any and all liability and responsibility for any loss or damage to
property covered by valid and collectable fire insurance policies with standard and
extended coverage endorsements, even if such fire and other casualties shall have
been caused by the fault or negligence of the other party, or anyone for whom such
party may be responsible, and each hereby agrees to obtain an acknowledgement of
this Waiver of Subrogation from its insurance carrier except that Tenant may retain
the right of subrogation in the case of reckless or intentional acts by Landlord or
Landlord’s agents.

     (ii) Tenant will indemnify Landlord and save it harmless from
and against any and all claims, actions, damages, losses, liability
and expense in connection with loss of life, personal injury and/or
damage to property arising from or out of any occurrence in, upon or
at the Leased Premises, or the occupancy or use by Tenant of the
Leased Premises or any part thereof, or occasioned wholly or in part
by any act or omission of

 

 

Tenant, its agents, contractors, employees, servants, lessees,
or concessionaires, or by reason of injury or damage to any person
or to any property belonging to Landlord or any other person,
occurring in or about the Demised Premises, caused by or resulting
from fire, steam, electricity, gas, water, rain, ice or snow, or any
leak or flow from or into any part of the Demised Premises or from
any kind of injury which may arise from any other cause whatsoever
in or on the Demised Premises, unless such injury or damage is
caused by or is due to the gross negligence of Landlord, or its
agents, servants or employees, in which event Landlord agrees to
indemnify the Tenant in similar manner to the indemnification
herein. In case Landlord shall be made a party to any litigation
commenced by or against Tenant, then Tenant shall protect and hold
Landlord harmless and shall pay all costs and expenses incurred or
paid by Landlord in connection with such litigation, to the extent
that Tenant has agreed to indemnify Landlord in this paragraph. In
case Tenant shall be made a party to any litigation commenced by or
against Landlord, then Landlord shall protect and hold Tenant
harmless and shall pay all costs and expenses incurred or paid by
Landlord in connection with such litigation, to the extent that
Landlord has agreed to indemnify Tenant in this paragraph.

	 	12.	 	DAMAGE/DESTRUCTION OF DEMISED PREMISES/SHOPPING CENTER

          (a) Duty to Repair. Except as otherwise provided in Paragraph (b) of this
Article, if the Demised Premises are damaged or destroyed by any casualty covered by
Landlord’s fire insurance policy, Landlord shall, if permitted to do so by its mortgagee,
repair such damage or destruction as soon as reasonably possible, to the extent of the
available insurance proceeds, and this Lease shall continue in full force and effect. In
the event that the Premises have not been substantially repaired within one hundred eighty
(180) days following the casualty, Tenant may terminate this Lease upon sixty (60) days’
written notice to Landlord.

          (b) Damage To Demised Premises. If the Demised Premises are damaged or
destroyed by any casualty covered by Landlord’s fire insurance policy to such an extent as
to render the same untenantable in whole or substantial part, or to the extent of
twenty-five percent (25%) or more of the replacement value of the Demised Premises during
the last twenty-four (24) months of the Term herein, then Landlord may, at Landlord’s
option, either:

     (i) repair such damage or destruction as soon as reasonably
possible, in which

 

 

event this Lease shall continue in full force and effect, or

     (ii) cancel and terminate this Lease as of the date of the
occurrence of such damage or destruction by giving Tenant written
notice of Landlord’s election to do so within ninety (90) days after
the date of the occurrence of the damage or destruction.

          (c) Damage To Shopping Center. If the Shopping Center is damaged or destroyed
by any casualty covered by Landlord’s fire insurance policy to such an extent as to render
fifty (50%) percent or more of the tenantable area of the Shopping Center untenantable,
then, regardless of whether the Demised Premises are affected by the occurrence of the
damage to, or destruction of, the Shopping Center, and subject to the rights of Landlord’s
mortgagee, Landlord may, at Landlord’s option, either:

     (i) repair such damage or destruction as soon as reasonably
possible, in which event this Lease shall continue in full force and
effect, or

     (ii) cancel and terminate this Lease as of the date of the
occurrence of such damage or destruction by giving Tenant written
notice of Landlord’s election to do so within ninety (90) days after
the date of the occurrence of the damage or destruction. In the
event that Landlord subsequently decides to rebuild the Shopping
Center within one (1) year of the termination of this Lease pursuant
to this Paragraph, Landlord shall negotiate in good faith with
Tenant to lease a store of similar size and use in the rebuilt
shopping center.

          (d) Uninsured Casualty. If the Demised Premises are damaged or destroyed by
any casualty which is not covered by Landlord’s fire insurance policy, then Landlord shall
have no duty to repair such damage or destruction. In the event of such damage or
destruction, Landlord may, at its option, either:

     (i) repair such damage or destruction as soon as reasonably
possible, in which event this Lease shall continue in full force and
effect, or

     (ii) cancel and terminate this Lease as of the date of the
occurrence of such damage or destruction, in which event this Lease
shall so terminate, unless, within thirty (30) days thereafter,
Tenant agrees to repair the damage or destruction with Approved
Contractors at its cost and expense or to pay for Landlord’s repair
of such damage or destruction.

 

 

          (e) Reconstruction. If all or any portion of the Demised Premises is damaged
by fire or other casualty and this Lease is not terminated in accordance with the above
provisions, then to the extent permitted by any mortgage affecting the Shopping Center, all
insurance proceeds, however recovered, shall be made available for payment of the cost of
repair, replacing and rebuilding. Landlord shall use the proceeds from the insurance to
repair or rebuild the Demised Premises to its prior condition in accordance with the
provisions of Exhibit “C”, and Tenant shall, using the proceeds from the insurance and
employing only Approved Contractors, repair, restore, replace, or rebuild that portion of
the Demised Premises constituting Tenant’s Work as defined herein, together with any
additional improvements installed by Tenant, such that the Demised Premises shall be
restored to its condition as of the date that is immediately prior to the occurrence of
such casualty. All of the aforesaid Tenant’s insurance proceeds shall be deposited in
escrow and shall be disbursed as work on such repair, replacement or restoration
progresses, upon the certification of Landlord’s architect that the balance in the escrow
fund is sufficient to pay the estimated costs of completing the repair, replacement and
restoration. If Tenant’s insurance proceeds shall be less than the cost of Tenant’s
obligations hereunder, Tenant shall pay the entire excess cost. With respect to any
improvements which were initially installed by Tenant, but which are insured under
Landlord’s policy as part of the real estate, Landlord shall elect to either restore those
improvements to the condition they were in immediately preceding the casualty, or to
provide the funds to Tenant to make the restoration.

          (f) Rent Abatement. Notwithstanding anything to the contrary contained in
the Lease and/or any Exhibits or Attachments hereto, should any essential building
services, including but not limited to electricity, water, sewer and telecommunications, be
interrupted for twenty four (24) consecutive hours, through no fault of the Tenant,
resulting in Tenant’s inability to open for business to the public at the Demised Premises,
then rent shall thereafter abate until such service is reinstated.

     13. SUBORDINATION AND ATTORNMENT.

          (a) Subordination. This Lease and Tenant’s tenancy shall not be a lien against
the Demised Premises which is superior to any mortgages that now encumber, or may hereafter
be placed upon, the Demised Premises or the Shopping Center. Any such mortgage or
mortgages shall automatically have preference and precedence over, and be superior and
prior in lien to, this Lease, irrespective of the date of recording, and Tenant agrees,
within five (5) business days of receipt thereof, to execute any instruments, without cost,
which may be deemed necessary or desirable to further effect the subordination of this
Lease to any such mortgage or mortgages.

          (b) Attornment. At the option of any person who shall succeed to the interest
of all or any part

 

 

of Landlord’s interest in the Shopping Center, whether by purchase, foreclosure, deed
in lieu of foreclosure, power of sale, termination of lease, or otherwise (a “Successor”),
and upon written notice thereof to Tenant, Tenant shall be obligated to pay to such
Successor, in lieu of to Landlord, the rentals and other charges due hereunder and to
thereafter comply with all of the terms of this Lease, and shall, without charge, attorn to
such Successor as its Landlord under this Lease, notwithstanding the failure of Landlord to
comply with this Lease, any defense to which Tenant might be entitled against Landlord
under this Lease, or any bankruptcy or similar proceedings with respect to Landlord.

     14. QUIET ENJOYMENT. Landlord will put Tenant in actual possession of the
Demised Premises at the beginning of the Term aforesaid, or such other date as shall be
herein elsewhere agreed upon, and Tenant, subject to all of the terms and conditions
hereof, on paying the rent and performing the covenants herein agreed by it to be
performed, shall and may peaceably and quietly have, hold and enjoy, for said Term and any
extensions thereof, the Demised Premises, along with the non-exclusive use of the Common
Area.

     15. ACCESS. Landlord, its agents, employees, or independent contractors shall,
upon reasonable advance written notice to Tenant, have access to the Demised Premises at
reasonable hours to inspect the same, to carry out the provisions of this Lease, to make
any required repairs or replacements, and to show the Demised Premises to any prospective
purchasers, lenders, or tenants, provided however in an emergency
situation, such access may be at any time and without notice.

     16. CONDEMNATION. (a) If all or any part of the Demised Premises shall be
taken for any public or quasi-public use, under any statute or by right of eminent domain,
such as to render them unsuitable for Tenant’s business, then this Lease, at the option of
either Landlord or Tenant, may be canceled and declared null and void and of no effect, and
Tenant shall be liable for the rent only up to the time of such taking. In the event of a
partial taking, which is not extensive enough to render the Demised Premises unsuitable for
Tenant’s business, Landlord shall promptly restore the Demised Premises to a condition
which is comparable to its condition at the time of said condemnation, and this Lease shall
continue, but starting with the date of such condemnation, the rental shall be reduced
proportionately. In the event of the occurrence of any of the contingencies above
mentioned, or a complete condemnation, rent shall abate corresponding with the time during
which the Premises may not be used by Tenant.

          (b) In the event that fifty percent (50%) or more of the parking area for the Shopping
Center, of which the Demised Premises constitute a part, shall be taken or condemned by
public or quasi-public authority, either party shall have the option to terminate this
Lease within thirty (30) days from the date of such taking, upon one hundred twenty (120)
days’ notice to the other party. If either party shall fail to so terminate this Lease
within the time aforesaid, then this Lease shall remain in full force and

 

 

effect unless prohibited by applicable authorities. In the event that this Lease shall
be terminated pursuant to this Article, any rental or other charges paid in advance shall
be refunded to Tenant upon its surrender of possession of the Premises.

     (c) Nothing herein contained shall be deemed or construed to prevent Landlord or
Tenant from enforcing and prosecuting, in any condemnation proceedings, a claim for the
value of their respective interests, but in no event shall any award to Tenant interfere
with, or cause a reduction in the amount of, any award to Landlord for the value of the fee
or leasehold.

	 	17.	 	ASSIGNMENT, SUBLETTING AND ENCUMBERING OF LEASE.

          (a) Business Assignments. Tenant shall have the right, without Landlord’s
consent, upon thirty (30) days prior written notice to the Landlord, to assign this Lease
or sublet the Demised Premises: (i) to any business entity which, at the time of such
assignment or sublease, controls, is controlled by or is under common control with Tenant
or holds the majority of the Tenant’s stock; (ii) to any business entity which succeeds
Tenant as a result of merger, consolidation or reorganization of Tenant, or, (iii) to any
entity which purchases substantially all of the assets of Tenant at the Demised Premises,
or to which Tenant is mandated by governmental requirement as a condition of any merger,
consolidation, purchase or sale to transfer to or divest itself of all of the assets
located at the Demised Premises. All of the foregoing under (i), (ii) and (iii) shall
hereinafter be referred to as “Business Assignments.”

          (b) All Other Assignments and Sublets. Tenant shall have the right to assign
this Lease or sublet the Demised Premises, with Landlord’s prior written consent, which
shall not be unreasonably withheld or delayed. In cases of subletting, Tenant shall remain
liable hereunder. Notwithstanding anything to the contrary contained in the Lease, in
cases of Landlord-approved assignment or subletting, permitted uses shall include general
business or retail use.

          (c) Procedure. In the event that Tenant desires to assign or transfer this
Lease, or sublet (or permit the occupancy or use of) the Demised Premises, or any part
thereof as provided for above, Tenant shall give Landlord not less than thirty (30) days’
prior written notice of Tenant’s intention to so assign or transfer or sublet all or any
part of the Demised Premises, the terms of such proposed transaction, and the parties to
participate in such proposed transaction. Landlord shall not unreasonably withhold or
delay approval to any such assignment or subletting.

          (d) Excess Rent. In the event that Landlord does not exercise its right to
have all or a portion of the Demised Premises, as the case may be, subleased or assigned to
it, but gives Tenant its written consent to assign,

 

 

transfer, or sublet all or a portion of the Demised Premises to a third party, any
monthly rent or other payment accruing to Tenant as the result of any such assignment,
transfer, or sublease, including any lump sum or periodic payment in any manner relating to
such assignment, transfer, or sublease, which is in excess of the rent then payable by
Tenant under this Lease shall be paid by Tenant to Landlord monthly as Additional Rent.
Landlord may require a certificate from Tenant specifying the full amount of any such
payment of whatsoever nature.

          (e) Costs. Any costs and expenses, including attorneys’ fees, incurred by
Landlord (not to exceed $1,000) in connection with any proposed or purported assignment,
transfer, or sublease shall be borne by Tenant and shall be payable to Landlord as
Additional Rent.

	 	18.	 	END OF TERM.

          (a) Surrender. Upon the expiration or other termination of the Term of this
Lease, Tenant shall, at its cost and expense: (i) quit and surrender to Landlord the
Demised Premises, in good order and condition, broom clean, ordinary wear and tear
excepted;(ii) remove from the Demised Premises all property of Tenant, excluding any
Landlord approved alterations or additions that, at the Tenant’s sole discretion, may
remain on the Demised Premises; (iii) fully comply with Article 8(e); and (iv) repair any
damage caused by such removal and return the Demised Premises to the condition prior to
such installation. If requested by Landlord, Tenant shall, at its expense, obtain and
deliver to Landlord a satisfactory report prepared by an environmental consultant that is
approved by Landlord, evidencing compliance with all Laws and Article 8(e) hereof.

          (b) Holding Over. If Tenant shall hold possession of the Demised Premises
after the expiration or termination of this Lease, at Landlord’s option:

          (i) Tenant shall be deemed to be occupying the Demised Premises as a tenant from
month-to-month, at 150% the Fixed Minimum Annual Net Rental in effect during the last Lease
Year immediately preceding such hold-over and otherwise subject to all of the terms and
conditions of this Lease, including payment of Additional Rent, or

     (ii) Landlord may exercise any other remedies under this Lease or at law or in equity,
including an action for wrongfully holding over. No payment by Tenant, or receipt by
Landlord, of a lesser amount than the correct rent shall be deemed to be other than a
payment on account, nor shall any endorsement or statement on any check or letter
accompanying any check for payment of rent or any other amounts owed to Landlord be deemed
to effect or evidence an accord and satisfaction, and Landlord may accept such check or
payment without prejudice to Landlord’s right to recover the balance of the rent or other
amount owed or to pursue any other remedy that is provided in this Lease.

     19. DEFAULT. Any one or more of the following shall be deemed to be events of
default hereunder:

 

 

          (a) Monetary Default: Failure of Tenant to make any payment of Fixed Annual Minimum
Net Rental or Additional Rent when due and such failure shall continue for ten (10) days
after written notice from Landlord;

          (b) Non-monetary Default: Failure of Tenant to timely perform any of the terms,
covenants or conditions of this Lease, except payment of Rent or Additional Rent, and such
failure shall continue for thirty (30) days after written notice from Landlord;

          (c) In the event that Tenant or any guarantor of this Lease shall be adjudicated a
bankrupt, insolvent, or placed in receivership, or if proceedings are instituted by or
against Tenant for bankruptcy, insolvency, receivership, agreement of composition or
assignment for the benefit of creditors which shall not be set aside within forty-five (45)
days, or if this Lease or the estate of Tenant herein shall pass to another by virtue of
any court proceedings, writ of execution, levy, sale or by operation of law, other than
estate distribution or intestate descent and distribution;

          (d) If Tenant refuses to take possession of the Demised Premises on the Delivery of
Possession Date, or fails to open its doors for business at the expiration of the fixturing
period as required herein, or vacates the Demised Premises and permits the same to remain
unoccupied and unattended, or substantially ceases to carry on its normal activities in the
Demised Premises as specified in Article 8;

          (e) Except in the event of a Business Assignment as defined in Article 17 (a) above,
if Tenant attempts or purports to transfer, assign, mortgage or encumber this Lease or any
of Tenant’s interest hereunder, or attempts or purports to sublet or grant a right to use
or occupy all or a portion of the Demised Premises, without obtaining the prior written
consent of Landlord or otherwise complying with the requirements of Article 17 hereof;

          (f) Recordation or attempted recordation of this Lease by Tenant;

          (g) If Tenant shall have been in default under subparagraphs (a) or (b) of this
Article 19 more than three (3) times in any twelve (12) month period, notwithstanding any
subsequent cure of the default; or

          (h) If any execution, levy, attachment or other legal process of law shall be made
upon Tenant’s goods, fixtures, or interest in the Demised Premises, and the same is not
discharged, removed or stayed within sixty (60) days.

     20. REMEDIES ON DEFAULT. In the event of any default as defined in Article 19
hereof, or if Tenant shall
be evicted by summary proceedings or otherwise, then Landlord, in addition to other
remedies herein contained, or as may be permitted by law, may pursue any one or all of the
following:

 

 

          (a) Landlord shall have the right, but not the obligation, upon giving five (5) days’
notice in writing to Tenant, to declare this Lease and the Term hereof at an end on the
date that is fixed in such notice as if such date were the originally fixed expiration date
of the Term of this Lease, and Landlord shall then have the right to remove all persons,
goods, fixtures, and chattels from the Premises without liability for damages. Nothing in
this Lease shall be deemed to require Landlord to give notice prior to the commencement of
a summary proceeding for non-payment of any rent or a plenary action for the recovery of
rent on account of any default in the payment of any rent, it being intended that such
notices are for the sole purpose of creating a conditional limitation hereunder pursuant to
which this Lease shall terminate and Tenant shall become a holdover tenant.

          (b) Landlord may proceed to recover possession of the Demised Premises under and by
virtue of the provisions of the laws of the jurisdiction in which the Shopping Center is
located, or by such other proceedings, including re-entry and possession, as may be
applicable, without being liable for prosecution therefor or for damages, and re-enter the
Premises and the same have and again possess and enjoy; and, as agent for Tenant or
otherwise, re-let the Premises and receive the rent therefor and apply the same, first to
the payment of such expenses, including leasing commissions, reasonable attorneys’ fees and
costs, and such other amounts as Landlord expends in re-entering, repossessing and
re-letting the same and in making any repairs and alterations as may be necessary; and
second, to the payment of rent due hereunder. Any other notice to quit or notice of
Landlord’s intention to re-enter the Demised Premises is hereby expressly waived. If
Landlord elects to terminate this Lease, everything contained in this Lease on the part of
Landlord to be done and performed shall cease without prejudice, subject, however, to the
right of Landlord to recover from Tenant all rent and any other sums due and owing to
Landlord. Tenant shall remain liable for any rent as may be in arrears and also for any
rent as may accrue subsequent to the re-entry by Landlord, to the extent of the difference
between the rent reserved hereunder and the rent, if any, received by Landlord during the
remainder of the unexpired Term hereof, after deducting the aforementioned expenses, fees
and costs, the same to be paid as specified in Paragraph (c) hereinbelow.

          (c) In case of any such default, re-entry, expiration, and/or dispossess by summary
proceedings or otherwise, (1) the rent shall become due thereupon and be paid to the time
of such re-entry, dispossess and/or expiration, together with such expenses as Landlord may
incur for legal expenses, attorney’s fees, brokerage or leasing commissions, and expenses
for repairs and alterations as may be necessary to put the Premises in good order or for
preparing same for re-letting; (2) Landlord may re-let the Demised Premises or any part or
parts thereof, either in the
name of Landlord or otherwise, for a term or terms which may, at Landlord’s option, be
less than or greater than the balance of the Term and may grant concessions or free rent;
and (3) Tenant or the legal representatives of Tenant shall also pay to Landlord, as
damages for the failure of Tenant to

 

 

pay rent and observe and perform Tenant’s covenants
herein contained, the deficiency between the rent hereby reserved and/or covenanted to be
paid and the net amount, if any, of the rent collected on account of the re-letting(s) of
the Demised Premises for each month of the period which would otherwise have constituted
the balance of the Term. When computing such damages, there shall be added to the said
deficiency such expenses as Landlord incurs in connection with re-letting, such as legal
expenses, attorney’s fees, brokerage fees, and for keeping the Demised Premises in good
order or for preparing the same for re-letting. Any such damage sustained by Landlord may
be recovered by Landlord, at Landlord’s option: (i) in monthly installments by Tenant on
the rent day specified in this Lease, (ii) in a single proceeding at the time of the
re-letting, or in separate actions, from time to time, as said damage shall have been made
more easily ascertainable by successive re-lettings, or (iii) in a single proceeding that
is deferred until the expiration of the Term of this Lease (in which event, Tenant hereby
agrees that the cause of action shall not be deemed to have accrued until the date of
expiration of said Term and shall survive the termination of this Lease). Any suit that is
brought to collect the amount of the deficiency for any month shall not prejudice in any
way the rights of Landlord to collect the deficiency for any subsequent month by a similar
proceeding.

          (d) Nothing contained herein shall prevent the enforcement of any claim that Landlord
may have against Tenant for anticipatory breach of the unexpired Term of this Lease. In
the event of a breach or threatened breach by Tenant of any of the covenants or provisions
of this Lease, Landlord shall have the right of injunction and the right to invoke any
remedy that is allowed at law or in equity, as if re-entry, summary proceedings and other
remedies were not herein provided for. The reference in this Lease to any particular
remedy shall not preclude Landlord from any other remedy at law or in equity. Tenant
hereby expressly waives any and all rights of redemption granted by or under any present or
future laws in the event that Tenant is evicted or dispossessed for any cause, or in the
event that Landlord obtains possession of the Demised Premises, by reason of the violation
by Tenant of any of the covenants and conditions of this Lease or otherwise.

          (e) Landlord shall have the right, independent of any other remedy herein, to
terminate, void and cancel any option to renew contained herein.

     No receipt of rent by Landlord from Tenant after the termination of this Lease or
after giving any notice, shall reinstate, continue or extend the Term of this Lease. No
receipt of rent after the commencement of any suit, or after the final judgment for
possession of the Demised Premises, shall reinstate, continue or extend the Term of this
Lease, or affect the suit or said judgment.

     For purposes of this Article, the term “Tenant” shall also include any guarantor of
this Lease, and any obligations, duties or covenants of Tenant in this Article

 

 

shall also
extend to any guarantor of this Lease in addition to Tenant.

     21. GOVERNMENTAL APPROVALS.

          (a) Certain governmental authorities may require, as a condition to zoning, building
and other approvals for the Shopping Center, certain modifications to this Lease. In such
event, provided that such modifications are reasonable, do not adversely affect Tenant, do
not materially alter the Premises or the approved working plans therefor, and do not
increase the rentals and other sums to be paid hereunder, Landlord shall submit to Tenant a
written amendment with such required modifications. Tenant shall be in default if Tenant
fails to execute and return the amendments that have been submitted within ten (10) days
thereafter.

          (b) In the event that any governmental authorities having jurisdiction over the
Premises decline to issue any necessary permits for Tenant’s Work on the basis that
Tenant’s use of the Premises, as specified in Article 8, is not permitted at the Shopping
Center, Tenant shall so notify Landlord, and Landlord shall have ninety (90) days to
endeavor to obtain the necessary permits, at Tenant’s expense. Tenant shall fully
cooperate with Landlord in connection therewith, including supplying necessary plans and
specifications, completing any required applications, attending any hearings and paying all
fees and expenses. In the event that Landlord is unable to obtain such permits, then this
Lease may be terminated by either party, whereupon any security deposit paid by Tenant
shall be refunded to Tenant.

 

 

     22. GENERAL PROVISIONS.

          (a) CERTIFICATE OF LEASE STATUS (ESTOPPEL CERTIFICATE). Tenant shall, at any
time upon five (5) days prior written notice from Landlord, execute, acknowledge and
deliver to Landlord, in recordable form, a certificate certifying: (a) that this Lease is
unmodified and in full force and effect (or in full force and effect as modified, setting
forth the modifications); (b) the dates to which the Fixed Minimum Annual Net Rental and
Additional Rent required to be paid hereunder have been paid; (c) that there is no default
by Landlord (or if a default is claimed, stating the basis therefor); (d) that there are no
set-offs or defenses against the enforcement of this Lease of any nature whatsoever that
Tenant is claiming; (e) that Tenant has not discharged, other than in strict compliance
with law, any Hazardous Substances or Hazardous Waste at the Demised Premises or at the
Shopping Center; (f) that this Lease and other related documents have been duly authorized
by Tenant and any guarantor(s); (g) the dates of commencement and expiration of this Lease;
(h) that Tenant has conformed its use of the Demised Premises to the requirements and
covenants of Article 8; (i) that the information specified in the Lease Declaration
attached as Exhibit ”E” is true and correct; and (j) as to such other matters as may be
reasonably requested by Landlord’s mortgagee. Such certificate shall be in such form as
may be relied upon by Landlord, by any prospective purchaser of the fee interest in the
Premises or the Shopping Center or any other interest therein, by any mortgagee thereof, or
by any assignee of any mortgage of the fee interest in the Premises.

          (b) LANDLORD’S LIEN. Landlord shall have a lien on, and a security interest
in, all personal property and equipment of Tenant, in addition to any statutory liens of
Landlord on such personal property and equipment that are now or hereafter in effect.

          (c) SIGNS. Tenant shall be permitted to install one (1) wall-mounted sign on
the exterior of the Shopping Center above the exterior of the Premises as per attached
Exhibit H; at Tenant’s sole cost and expense Tenant shall be required to utilize the
services of Landlord’s third party sign contractor for the preparation and installation of
said sign. Tenant agrees to comply with all applicable legal and insurance regulations and
requirements pertaining thereto. Tenant shall pay for all costs in connection with such
sign and shall be responsible for the cost of proper installation and removal thereof by
Landlord. In the event that Landlord deems it necessary to temporarily remove such sign,
then Landlord shall have the right to do so, provided, however, Landlord shall replace said
sign as soon as practicable, at Landlord’s sole cost. Any interior signs must be tasteful
and shall be prepared in a professional manner. Tenant shall, as a result of periodic
changes to its branding strategy that impact color, design and technology, have the right
to change existing signs on the exterior of the Tenant’s Demised Premises. All changes to
existing exterior signs on the Tenant’s Demised Premises shall be subject to Landlord’s
approval, which shall not be unreasonably withheld or delayed, and must comply with all

 

 

applicable municipal codes, ordinances and other municipal restrictions. Tenant shall
additionally have the right to change existing or install new signs in the interior of the
Tenant’s Demised Premises that comply with applicable municipal codes, ordinances and other
municipal restrictions. Any sign or display that is visible from outside of the Demised
Premises which does not meet the above criteria may be removed at any time by Landlord,
without Landlord incurring any liability therefor.

     Façade Signage. Subject to municipal approval and permit, Tenant shall be
allowed its standard signage as per the attached shop drawings, including Tenant’s standard
individual channel-lit letter style and color. Tenant shall be allowed the largest sign
size per municipal resolution. Tenant shall be required to put its sign on a raceway as
per municipal resolution. Tenant shall be permitted to change its signage during the term
of the Lease in accordance with a change of signage for its other store locations, subject
to municipal approval and permit and Landlord approval, which will not be unreasonably
withheld, conditioned or delayed.

     Monument/Pylon Signage. Tenant will have the third slot on the double sided
State Highway Route 22 monument/pylon sign (below ShopRite and Hallmark). Tenant name will
be on both sides of the monument/pylon as per Exhibit I.

          With respect to all signs:

          (A) Flashing, moving or audible signs will not be permitted.

          (B) No exposed neon lighting shall be used on signs, symbols or decorative elements.

          (C) No exposed conduit, tubing or raceways will be permitted.

          (D) All conductors, transformers and other equipment shall be concealed.

          (E) The location of all openings for conduit and sleeves in facia panels and/or
building walls shall be indicated by the sign contractor on drawings submitted to Landlord.
All penetrations of the building structure that are required for any sign installation
shall be neatly sealed in a watertight condition.

          (F) The sign contractor shall repair any damage caused by his work, and Tenant shall
be fully responsible for the operations of its sign contractor(s).

          (G) No sign maker’s labels or other identification will be permitted on the exposed
surface of signs.

          (H) Wording of signs shall not include the product sold, except as part of Tenant’s
trade name.

 

 

          (d) PARKING AND MAINTENANCE OF PARKING AREA. Throughout the Lease Term and any
extensions thereof, parking facilities, as shown on the Site Plan attached hereto as
Exhibit “A”, shall be provided by Landlord for Tenant, its servants, agents, employees,
invitees, and patrons in common with those of other tenants in the Shopping Center, and the
same shall be operated and maintained by Landlord in safe condition, the cost of which
shall be a Common Area Maintenance Expense.

          Landlord and Tenant mutually acknowledge that parking is critical to Tenant’s business
and as such, the number, spacing and striping of parking spaces and the aisles, entrances
and exits to and from the parking lot which services the Cedar Glen Shopping Center shall
not be reduced during the Term of this Lease and any Renewal Term, ordinary maintenance and
temporary interruptions excepted, without the Tenant’s prior written consent, which shall
not be unreasonably delayed, conditioned or withheld.

          Landlord requires all tenants of the Shopping Center and their employees to park their
motor vehicles in the employee parking area as designated by Landlord from time to time.
Specifically, at all times, Tenant’s employees are not permitted to park in the front
parking areas and may only park their vehicles in the rear parking areas. Tenant shall
inform all of its employees of said requirement and shall enforce same.

          The parking spaces, and other parking areas, passageways and all means of access
thereto, including adjacent and surrounding sidewalks, shall be kept, by Landlord, clean
and free and clear of encumbrances, obstructions, debris, and snow. Landlord shall clearly
mark all parking spaces by painting, striping or otherwise.

          Landlord reserves the exclusive right to assume all duties, responsibilities and
liabilities in regard to maintenance, repairs, replacements, operation, supervision, use
and control of and to the Common Area, including spaces, parking areas, passageways,
sidewalks, entrances, exits, cuts in curbing, lighting facilities, and landscaped and other
exterior areas, and shall comply with all present and future laws, ordinances, orders,
rules, regulations, notes, notices of violations and requirements of public authorities
that are applicable thereto.

          (e) COMPLIANCE WITH MORTGAGE REQUIREMENTS. As a condition of this Lease,
Tenant agrees to deliver to Landlord all forms, certificates, or applications, fully
completed and properly executed in a timely manner, as may be required from time to time by
any mortgagee of the Shopping Center.

          (f) RULES AND REGULATIONS. Landlord shall have the right to establish, modify
and enforce uniform rules and regulations applicable to tenants at the Shopping Center,
which rules and regulations, as may be amended from time to time, shall be deemed covenants
of this Lease to be undertaken by Tenant (“Rules and Regulations”), provided that copies of
such Rules and Regulations shall have first been given to Tenant. Landlord shall not be responsible to Tenant

 

 

for any non-compliance
with the Rules and Regulations by any other tenants. Attached hereto as Exhibit “F” are
the Rules and Regulations for the Shopping Center as of the date hereof.

          (g) HEADINGS. The headings contained in the body of this Lease are for the
purposes of identification only, are not a part of the agreement between the parties, shall
not define, limit or describe the scope of this Lease, and shall have no effect upon the
construction or interpretation of any part hereof.

          (h) FORCE MAJEURE. All performances, undertakings, or obligations of Landlord
hereunder shall be subject to force majeure, and all time periods set forth herein for
compliance with any of the above shall be extended due to catastrophe, accident, weather,
storms, acts of war and insurrection, unavailability of materials, strikes, embargoes,
moratoriums or other conditions beyond Landlord’s control.

          (i) PERFORMANCE OF TENANT’S OBLIGATIONS. If Tenant shall at any time fail to
make any payment or perform any act which Tenant is obligated to make or perform under this
Lease, then Landlord may, but shall not be obligated so to do, after Tenant’s time in which
to make any such payment or perform any such act as provided in this Lease has expired, and
without waiving, or releasing Tenant from, any obligations of Tenant that are contained in
this Lease, make any such payment or perform any such act which Tenant is obligated to
perform under this Lease, in such manner and to such extent as shall be necessary, and in
exercising any such rights, pay any necessary and incidental costs and expenses, employ
counsel and incur and pay reasonable attorneys’ fees. Notwithstanding the foregoing,
Landlord may make any such payment or perform any such act before Tenant’s time to do so
has expired, if the same is necessary or required for the preservation or protection of the
Premises. All sums so paid by Landlord, and all necessary and incidental costs and
expenses in connection with the performance of any such act by Landlord, together with
interest thereon at the Prime Rate (as published by The Wall Street Journal) plus
five (5%) percent per annum, shall be deemed Additional Rent hereunder and, except as
otherwise in this Lease expressly provided, shall be payable to Landlord on demand or, at
the option of Landlord, may be added to any rent then due or thereafter becoming due under
this Lease. Tenant covenants to pay any such sum or sums with interest as aforesaid, and
Landlord shall have (in addition to any other right or remedy of Landlord) the same rights
and remedies in the event of the non-payment thereof by Tenant as in the case of a default
by Tenant in the payment of rent.

          (j) NO WAIVER. The failure of Landlord to enforce against Tenant any
provision, covenant, or condition, by reason of Tenant committing any breach of or default
under this Lease, shall not be deemed a waiver thereof, nor void or affect the right of
Landlord to enforce the same covenant or condition on the occasion of any subsequent breach
or default thereof; nor shall the failure of Landlord to exercise any
right in this Lease on any occasion arising therefrom be

 

 

deemed or construed to be a
waiver of the right to exercise the same right upon any subsequent occasion.

          (k) NEGOTIATED AGREEMENT. This Lease is a negotiated agreement. Landlord and
Tenant agree that the language of this agreement shall not be construed against either
party by virtue of its counsel having prepared same.

          (l) EXECUTION. This Lease is not binding upon Landlord or Tenant until it is
signed by duly authorized officers of Landlord and Tenant and delivered to Landlord and to
Tenant. If Tenant is a corporation, each individual executing this Lease on behalf of said
corporation represents and warrants that he is duly authorized to execute and deliver this
Lease on behalf of said corporation, in accordance with the bylaws of said corporation, and
that this Lease is binding upon said corporation. In addition, if Tenant is a corporation,
Tenant represents and warrants that it is duly organized, validly existing and authorized
to do business in the State of New Jersey and that all franchise and corporate taxes have
been paid to date.

          (m) COMMISSION. Tenant has been represented in this transaction by the
Greenberg Group (“Tenant Broker”). The Landlord is represented in this transaction by
Silbert Realty & Management Company, Inc. (“Landlord Broker”). Each party further agrees to
hold harmless the other from and against any and all liability arising from any claim for a
commission or finder’s fee arising from acts of said party, including without limitation,
the cost of attorneys’ fees. Landlord and Tenant recognize that the Broker is the sole
broker who negotiated and effectuated this lease transaction. Landlord agrees to pay to
Landlord Broker and Tenant Broker any and all commissions in accordance with a separate
agreement between those parties.

          (n) ADDITIONAL REMEDIES. Any remedies specifically provided for in this Lease
are in addition to, and not exclusive of, any other remedy available to Tenant or Landlord
under applicable law. Any measure of damages that is provided for in this Lease shall not
be deemed to limit or prejudice Landlord’s right to prove and obtain all of the damages
which Landlord may sustain as a result of any and all breaches of this Lease.

          (o) NOTICES. All notices, statements, demands, consents, approvals,
authorizations, offers, agreements, appointments or designations herein by either party to
the other shall be deemed to be given to the other party for the purpose of this Lease ONLY
IF IN WRITING, and either personally served thereon or sent by Certified Mail, Return
Receipt Requested, with postage prepaid and subsequently received, or sent by Federal
Express or other recognized overnight delivery service (“Federal Express”) with postage
prepaid and subsequently received and addressed as follows:

 

 

     TO LANDLORD:

Cedar Glen, L.L.C.

107 Mount Horeb Road

Warren, New Jersey 07059

With a copy to:

Silbert Realty & Management Company, Inc.

85A Division Avenue

Millington, New Jersey 07946-0406

Attn: Sr. Director of Property Management

(908)604-6900

(908)604-2030 (Fax)

and

David A. Checchio, Esq.

107 Mount Horeb Rd

Warren, New Jersey 07059

(732) 537-0869

(732) 537-9366 (Fax)

TO TENANT:

Cole Smith

Dover Saddlery Inc.

525 Great Road

POB 1100

Littleton, MA 01460

smithcole@hotmail.com

978-952-8062 Ext. 701

(f) 978-952-8063

With a copy to:

John M. Sullivan, Esq.

Preti, Flaherty, Beliveau & Pachios

PO Box 1318

Concord, NH 03302-1318

(603) 410-1500 (phone)

(603) 410-1501 (fax)

or such substituted parties or addresses, provided that such change of address and party is
specified in writing during the Term of this Lease.

If so served or sent, any such notice shall be deemed given on the date that same is
personally delivered, or if mailed, on the second business day after depositing same in a
P.O. Box regularly maintained by the U.S. Post Office Department, or if sent by Federal
Express, on the first business day after sending.

     Landlord will promptly forward to Tenant a copy of any notice it receives from any
governmental authority, attorney for a moving party, any third party, or from any other
source, of a proceeding or circumstance directly concerning
the Tenant’s use of the Demised Premises, or affecting the future use and operation of the
Demised Premises, including

 

 

without limitation notices of change in property tax
assessment, condemnation proceedings, proposed or projected road construction or
reconstruction, zoning board applications, and the like (hereinafter “Land use applications
and or Roadway Improvements”) which in Landlord’s reasonable judgment, would directly
impact the Property and Tenant.

          (p) BINDING EFFECT. This Lease shall be binding upon and inure to the benefit
of the parties hereto and their respective heirs, administrators, executors, successors,
representatives and assigns.

          (q) SEVERABILITY. If any provision of this Lease shall be declared invalid or
unenforceable, the remainder of this Lease shall continue in full force and effect.

          (r) ENTIRE AGREEMENT. This Lease contains the entire agreement between the
parties, and any change, modification or amendment shall be in writing and executed by the
party against which enforcement thereof is sought.

          (s) CHOICE OF LAW. This Lease, and the rights and obligations of the parties
hereto, shall be interpreted and construed in accordance with the laws of the State of New
Jersey.

          (t) RATIFICATION. Any documents heretofore signed by Tenant pertaining to the
Demised Premises or this Lease are hereby ratified and confirmed.

          (u) THIRD PARTY BENEFICIARY. Nothing contained in this Lease shall be
construed so as to confer upon any other party the rights of a third party beneficiary,
except for the rights contained herein for the benefit of any mortgagee of the Shopping
Center.

          (v) WAIVER OF JURY TRIAL. Landlord and Tenant hereby mutually waive any and
all rights which either party may have to request a jury trial in any proceeding at law or
in equity in any court of competent jurisdiction.

          (w) TIME. Time is of the essence of this Lease and each and all of its
provisions in which performance is a factor.

          (x) RECORDATION. Neither Landlord nor Tenant shall record this Lease, but a
short form memorandum hereof may be recorded at the request of Landlord, which, by its
terms, may specify that Landlord shall have the unilateral right to cancel and discharge
such memorandum.

          (y) INTERRUPTION OF SERVICE OR USE. The interruption or curtailment of any
service that is maintained in the Shopping Center or the Premises, if caused by strike,
mechanical difficulties, government preemption in connection with a national emergency,
conditions of supply and demand affected by any governmental emergency, or any causes
beyond Landlord’s control, whether similar or dissimilar to those

 

 

enumerated, shall not
entitle Tenant to any claim against Landlord, including claims for resulting damages (and
specifically including damage to computers), or to any abatement in rent, and shall not
constitute a constructive or partial eviction. Tenant shall not be entitled to claim a
constructive eviction from the Premises unless Tenant shall have first notified Landlord,
in writing, of the condition or conditions giving rise thereto, and if the complaints are
justified, unless Landlord shall have failed, within a reasonable time after receipt of
such notice, to remedy, or to commence and proceed with due diligence to remedy, such
condition or conditions. In addition, prior to claiming a constructive eviction, Tenant
shall notify Landlord’s mortgagee of Landlord’s failure to remedy or to commence to remedy
said condition(s). Landlord’s mortgagee shall then have the right, but not the obligation,
within no less than an additional thirty (30) days, to cure the condition(s) giving rise to
the constructive eviction. Thereafter, Tenant shall have the right to cure the
condition(s) before claiming a constructive eviction.

          (z) CONSENTS. Whenever either party to this Lease requests consent of the
other party, such consent shall not be unreasonably withheld or delayed.

     23. DEFINITION OF LANDLORD; LIABILITY OF LANDLORD. The term “Landlord”, as
used in this Lease, means only the owner, or the mortgagee in possession for the time
being, of the Shopping Center in which the Demised Premises are located or the holder of a
lease of both the Shopping Center and the land thereunder., so that in the event of any
sale of the Shopping Center or an assignment of this Lease by Landlord or any underlying
lease or a demise of both the Shopping Center and land, Landlord shall be and hereby is
entirely freed and relieved of all obligations of Landlord hereunder, and it shall be
deemed, without further agreement between the parties and such purchaser(s), assignee(s) or
lessee(s), that the purchaser, assignee or lessee has assumed and agreed to observe and
perform all obligations of Landlord hereunder. The provisions of the preceding sentence
shall be applicable to any successor landlord, but shall not absolve Landlord from
liability if Landlord is found to be legally liable in a court of law of having committed
an egregious act against Tenant. Notwithstanding anything to the contrary provided in this
Lease, if any successor in interest of Landlord shall be a mortgagee, it is specifically
understood and agreed that there shall be absolutely no personal liability on the part of
such mortgagee with respect to any of the terms, covenants and conditions of this Lease,
and that Tenant shall look solely to the equity of such successor in interest in the
Shopping Center for the satisfaction of each and every remedy of Tenant in the event of any
breach by such successor in interest of any of the terms, covenants and conditions of this
Lease to be performed by Landlord, such exculpation of personal liability to be absolute
and without any exception whatsoever.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

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

	 	 	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	CEDAR GLEN, L.L.C.	 
	 	 	 	 	A New Jersey Limited	 
	 	 	 	 	Liability Company	 
	 	 	 	 	Landlord
	 
	 	 	 	 	 	 
	 

	 	 	 	BY:	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	Managing Member
	 
	 	 	 	 	 	 
	WITNESS/ATTEST:	 	 	 	DOVER SADDLERY RETAIL, INC.
	 	 	 	 	Tenant
	 
	 	 	 	 	 	 
	 

	 	 	 	BY:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Date:	 	 

 

 

INDEX TO EXHIBITS:

	 	 	 
	A

	 	Site Plan of Shopping Center
	 
	 	 
	B

	 	Floor Plan
	 
	 	 
	B-1

	 	Elevation of Demised Premises
	 
	 	 
	C

	 	Landlord’s Work
	 
	 	 
	D

	 	Tenant’s Work
	 
	 	 
	E

	 	Lease Declaration
	 
	 	 
	F

	 	Rules & Regulations
	 
	 	 
	G

	 	Intentionally Deleted
	 
	 	 
	H

	 	Façade Signage
	 
	 	 
	I

	 	Pylon/Monument Signage

1

 

EXHIBIT “A”

SITE PLAN OF SHOPPING CENTER

1

 

EXHIBIT “B”

FLOOR PLAN

EXHIBIT “B-1”

ELEVATION OF DEMISED PREMISES

I-2

 

EXHIBIT C

LANDLORD’S WORK

I-3

 

EXHIBIT D

TENANT’S WORK

I-4

 

To be Provided To Landlord Separately and Prior to Tenant’s Work Being Performed.

EXHIBIT “E”

LEASE DECLARATION

	 	 	 	 	 
	LANDLORD:

	 	CEDAR GLEN, L.L.C.
	 	 
	 
	 	 	 	 
	TENANT:

	 	DOVER SADDLERY RETAIL INC.	 	 
	 
	 	 	 	 
	PROJECT:

	 	CEDAR GLEN SHOPPING CENTER	 	 

I-5

 

	 	 	 	 	 
	LEASE DATE:                                              , 2008	 	 
	 
	 	 	 	 
	PREMISES NUMBER:                                              	 	 
	 
	 	 	 	 
	TENANT’S PRO RATA SHARE:                                         percent	 	 

          Landlord and Tenant acknowledge and agree as follows with respect to the
above-referenced lease:

	 	1.	 	Delivery of Possession Date:                     , 2008.
	 
	 	2.	 	Rental Commencement Date:                     , 2008.
	 
	 	3.	 	Expiration Date:                     , 20     .
	 
	 	4.	 	Lease Year:                     , 2008 to                     , 200     .
	 
	 	5.	 	Square Foot Area:
                    +-.
	 
	 	6.	 	Fixed Minimum Annual Net Rental at
Commencement: $                    .
	 
	 	7.	 	Monthly Installments of Rent: $                    .
	 
	 	8.	 	Authorized contact person
and telephone number:

	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Number:
	 	 

	 	 
	 

	 	 	 	 

	 	 

	 	 	 	 	 	 	 	 	 	 	 
	CEDAR GLEN, L.L.C.	 	 	 	DOVER SADDLERY RETAIL, INC.	 	 
	LANDLORD:

	 	 
	 	 	 	TENANT:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	BY:

	 	 	 	 	 	BY:	 	 	 	 
	 

	 	 	 	 

	 	 

EXHIBIT “F”

RULES AND REGULATIONS

Tenant agrees as follows:

	1.	 	All loading and unloading of goods shall be done only at such times, in such areas,
and through such

I-6

 

	 	 	entrances as are designated for such purposes by Landlord.
	 
	2.	 	The delivery or shipping of merchandise, supplies and fixtures to and from the Leased
Premises shall be subject to such rules and regulations as, in the judgment of
Landlord, are necessary for the proper operation of the Leased Premises or the
Shopping Center.
	 
	3.	 	Tenant shall store all trash and refuse in adequate containers within the Leased
Premises, and shall maintain such containers in a healthy, safe, neat and clean
condition and in a location so as not to be visible to members of the general public
at the Shopping Center, and shall attend to the daily disposal thereof in a manner
that is designated by Landlord. If the Leased Premises are used for the sale or
consumption of food or beverages therein, such as a restaurant or snack bar, Tenant
shall store all trash, refuse and garbage in a garbage storeroom or compartment which
Tenant shall install and keep in repair, at its sole cost and expense. Tenant shall
pay for the collection of such trash, refuse and garbage.
	 
	4.	 	No radio or television or other similar device shall be installed without first
obtaining Landlord’s consent in writing in each instance, which consent shall not be
unreasonably withheld. No aerial or antenna shall be erected on the roof or the
exterior walls of the Leased Premises or any building in the Shopping center or on the
grounds, without the written consent of Landlord in each instance. Any aerial or
antenna so installed without such written consent shall be subject to removal by
Landlord, without notice, at any time, at Tenant’s sole cost and expense.
	 
	5.	 	No loudspeakers, televisions, phonographs, radios, or other devices shall be used in
a manner so as to be heard or seen outside of the Leased Premises, without the prior
written consent of Landlord.
	 
	6.	 	If the Leased Premises are equipped with heating facilities that are separate from
those in the remainder of the Shopping Center, Tenant shall keep the Leased Premises
at a temperature that is sufficiently high to prevent the freezing of water in pipes
and/or fixtures.
	 
	7.	 	Tenant shall not place any merchandise, furniture, rubbish, or any other item on the
interior or exterior walkways or sidewalks located in, on or adjacent to the Shopping
Center.
	 
	8.	 	The plumbing facilities shall not be used for any purpose other than that for which
they are constructed or designed, and no foreign substances of any kind shall be
thrown or disposed of therein, and the cost and expense of any breakage, stoppage, or
damage resulting from a violation of this provision shall be

I-7

 

	 	 	borne by the tenant who
shall, or whose employees, agents or invitees shall, have caused it.
	 
	9.	 	Tenant shall use, at Tenant’s cost and expense, such pest exterminating contractors
as Landlord may direct and at such intervals as Landlord may require.
	 
	10.	 	Tenant shall not burn any trash or garbage of any kind in or about the Leased
Premises or the Shopping Center.
	 
	11.	 	Tenant shall use its best efforts to minimize noises, disturbances and odors which
may be offensive to other tenants of the Shopping Center or their officers, employees,
agents, servants, customers, or invitees.
	 
	12.	 	No alcoholic beverages or liquors may be sold, displayed, distributed, or given away,
unless such activity is clearly indicated in, and permitted by, Tenant’s lease with
Landlord.
	 
	13.	 	Landlord may amend, repeal or add new rules and regulations for the use and care of
the Leased Premises, the buildings of which the Leased Premises are a part, the Common
Area and facilities, and the Shopping Center.

I-8Exhibit 10.14

June 30, 2007

Campbell & Company, Inc.

Court Tower Building

210 West Pennsylvania Avenue

Suite 770

Towson, MD 21204

Attn: Ms. Terry Becks

Re:    Management Agreement Renewals

Dear Ms. Becks:

We are writing with respect to your management agreements concerning the commodity pools to which reference is made below (the ‘‘Management Agreements’’). We are extending the term of the Management Agreements through June 30, 2008 and all other provisions of the Management Agreements will remain unchanged.

			
		• 	Smith Barney Potomac Futures Fund L.P.

			
		• 	Smith Barney Diversified Futures Fund L.P.

			
		• 	Smith Barney Diversified Futures Fund L.P. II

			
		• 	Smith Barney Global Markets Futures Fund L.P.

			
		• 	Smith Barney Global Diversified Futures Fund L.P.

			
		• 	Salomon Smith Barney Diversified 2000 Futures Fund L.P.

			
		• 	CMF Campbell Master Fund L.P.

Please acknowledge receipt of this modification by signing one copy of this letter and returning it to the attention of Ms. Jennifer Magro at the address above or fax to 212-793-1986. If you have any questions I can be reached at 212-559-5046.

Very truly yours,

CITIGROUP MANAGED FUTURES LLC

				
	By:			/s/ Jennifer Magro
	 			Jennifer Magro

 Chief Financial Officer & Director

CAMPBELL & COMPANY, INC.

				
	By:			/s/ Theresa Becks

				
	Print Name:			Theresa Becks

JM/sr

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