Document:

Unassociated Document

EXHIBIT 10.32

 

 

LEASE

 

 

Between

 

 

ARC HVWPTPA001, LP, a Delaware limited partnership

 

 

as Landlord,

 

 

and

 

 

HARLEYSVILLE NATIONAL BANK AND TRUST COMPANY

 

 

as Tenant

 

 

Date of Lease:  As of December ___, 2007

 

  

  

  

 

LEASE

 

This Lease (this “Lease”) is made on the Date of Lease specified below, between Landlord and Tenant specified below.

 

PART I.

 

FUNDAMENTAL LEASE PROVISIONS; DEFINITIONS

 

The following list sets out certain fundamental provisions and definitions pertaining to this Lease:

 

	
1.

	
Date of Lease:

	 	
As of December __, 2007

	 	 	 	 
	
2.

	
Landlord name, and state and type of entity: of

	 	
ARC HVWPTPA001, LP, a Delaware limited partnership

	 	 	 	 
	
3.

	
Landlord business address:

	 	
1725 The Fairway

Jenkintown, PA 19046

Attention:  William M. Kahane

	 	 	 	 
	
4.

	
Landlord notice address:

	 	
1725 The Fairway

Jenkintown, PA 19046

Attention:  William M. Kahane

	 	 	 	 
	  	  	 	
with copy to:

Wolf, Block, Schorr and Solis- Cohen LLP

250 Park Avenue

New York, NY 10177

Attention:  Abby M. Wenzel, Esq.

	 	 	 	 
	
5.

	
Tenant name, and state of and type of entity:

	 	
Harleysville National Bank and Trust Company

	 	 	 	 
	
6.

	
Tenant business address:

	 	
483 Main Street

Harleysville, PA 19438

	 	 	 	 
	
7.

	
Tenant notice address:

	 	
Harleysville National Bank and Trust Company

483 Main Street

Harleysville, PA 19438

Attention:  Michael High, Executive Vice President and COO

 

  

  

  

 

	  	  	 	
with copy to:

 

Stradley Ronon Stevens & Young, LLP

Suite 2600, One Commerce Square

2005 Market Street

Philadelphia, PA 19103

Attention:  Christopher S. Connell, Esq.

	 	 	 	 
	
8.

	
Intentionally Omitted.

	 	  

 

9.           Premises:  that certain lot or parcel of real estate which is described on Exhibit A hereto, together with all improvements situated on said property (together with all right, title and interest of Landlord in and to the lighting, electrical, mechanical, plumbing and heating, ventilation and air conditioning systems used in connection with said property, and all other carpeting, draperies, appliances and other fixtures and equipment attached or appurtenant to said property), and all rights, easements, rights of way, and other appurtenances thereto.

 

10.           Building:  The building located on the parcel of land described on Exhibit A hereto.

 

11.           Initial Term:  shall commence on the Lease Commencement Date, and shall expire __________ ____, 2022; all subject to all terms and conditions of this Lease.  As used herein, the term “Lease Commencement Date” shall mean the date set forth as the Lease Commencement Date on Schedule 5 to this Lease.

 

As used in this Lease, “Term” shall include the Initial Term and any Extension Period thereof which becomes effective pursuant to Section 3 of Part II.

 

12.           Renewal Options:  Tenant shall have Renewal Options (herein so called) to extend the Initial Term of this Lease for two (2), successive five-year periods, followed by the further option to extend for one, (3) year period, followed by the further option to extend for six (6), successive five-year periods, followed by the further option to extend for one (1), two-year period (each such extension period, an “Extension Period”), subject to the terms and conditions of Section 3 of Part II of this Lease. Each Extension Period (and the availability thereof) is subject to all of the terms and conditions of this Lease governing Renewal Options and Extension Periods.

 

13.           Required Advance Notice of Exercise of Renewal Options:  Nine (9) months prior to the expiration of the then-current Term (See Section 3 of Part II).

 

14.           Date of Rent Commencement:  shall mean the date on which Fixed Rent commences which shall be the date set forth as the Date of Rent Commencement on Schedule 4 hereto.

 

15.           Fixed Rent (See Section 5 of Part II):  shall mean the annual amount of ONE HUNDRED TWENTY THOUSAND SEVEN HUNDRED EIGHTY AND 00/100 DOLLARS ($120,780.00), payable in equal monthly installments of $10,065.00 each.  Notwithstanding the foregoing, commencing with the first calendar month in the second (2nd) year of the Initial Term, and continuing in the first calendar month of each year of the Initial Term thereafter, the amount of Fixed Rent payable by Tenant hereunder shall increase by the lesser of (i) two percent (2%), or (ii) the percentage change in the Consumer Price Index (United States City Average for All Urban Consumers, All Items, Not Seasonally Adjusted, as published by the United States Department of Labor’s Bureau of Statistics) (the “CPI”) during the twelve (12) month period that ends on the last day of the ninth month of the immediately preceding year of the Initial Term (such percentage change in (i) or (ii), as applicable, the "Percentage Rent Change").

 

  

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16.           Broker:       N/A

 

17.           Lender:  Continental Bank, as Trustee; or any other person or entity that makes a loan or loans (such loan or loans collectively referred to herein as the “Loan”) to Landlord which is secured by a mortgage, deed of trust or similar instrument with respect to the Premises and of which Tenant is advised in writing by Landlord.  Any such Loan may be evidenced by one or more promissory notes (collectively referred to herein as the “Note”).

 

	
18.

	
Lender business address:

	
Continental Bank

	  	  	
620 West Germantown Pike

	  	  	
Suite 350

	  	  	
Plymouth Meeting, PA 19462

	  	  	
Attention:

	
Frank W. Ashmore

	  	  	  	
Senior Vice President

	 	 	 	 
	
19.

	
Lender notice address:

	
Continental Bank

	  	  	
620 West Germantown Pike

	  	  	
Suite 350

	  	  	
Plymouth Meeting, PA 19462

	  	  	
Attention:

	
Frank W. Ashmore

	  	  	  	
Senior Vice President

	 	 	 	 
	  	
with a copy to:

	
Fox Rothchild LLP

	  	  	
747 Constitution Drive, Suite 100

	  	  	
P.O. Box 673

	  	  	
Exton, PA 19341

	  	  	
Attention:  Elaine A. Stanko, Esq.

 

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

 

  

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21.           Permitted Encumbrances:  shall mean taxes (as defined in Section 31 of Part II), Legal Requirements (as defined in Section 10 of Part II), any matters consented to by Landlord, Tenant and Lender, those covenants, restrictions, reservations, liens, conditions, encroachments, easements, encumbrances and other matters of title that affect the Premises as of the Lease Commencement Date (including, without limitation, those listed on Exhibit B hereto) or which arise due to the acts or omissions of Tenant, or due to the acts or omissions of Landlord with Tenant’s prior written consent, after the Lease Commencement Date.

 

22.           Exhibits:  All Exhibits and Schedules to this Lease are incorporated herein by this reference.

 

23.           Payment of Fixed Rent:  Fixed Rent shall be initially paid to the account set forth in the rent direction letter from Landlord to Tenant delivered concurrently with the execution and delivery of this Lease.

 

24.           Intentionally Omitted.

 

25.           Termination Date:  shall mean the date on which this Lease either expires by its terms or is terminated before such expiration by reason of the occurrence of (a) an Event of Default (as defined in Section 23 of Part II hereof), or (b) an Taking Termination Date (as defined in Section 14(b) of Part II hereof).

 

26.           Intentionally omitted.

 

27.           Threshold Repair Amount:  shall mean, at any time, an amount equal to the product of (i) Two Hundred Thirty Three Thousand Seven Hundred Sixty Seven and 80/100 Dollars ($233,767.80) times (ii) the CPI Factor for the then current calendar year.  As used herein the "CPI Factor" shall mean for any calendar year during the Term a fraction, the numerator of which is the CPI as of the first day of such calendar year and the denominator of which is the CPI as of January 1, 2008; provided, that in no event shall the CPI Factor be less than one (1).  If the CPI shall become unavailable to the public because publication is discontinued, or otherwise, Landlord will substitute therefor a comparable index based upon changes in the cost of living or purchasing power of the consumer dollar published by any other governmental agency or, if no such index shall be available then a comparable index published by a major bank or other financial institution.

 

  

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28.           Fair Market Rental Value:  shall be determined as follows:

 

(a)           For Extension Periods One Through Three.   Not less than twelve (12) months prior to the proposed commencement date of Tenant’s fourth through tenth Renewal Options, as applicable, Landlord and Tenant shall endeavor in good faith to agree upon a commercially reasonable fair market rent.  In the event Landlord and Tenant are not able to agree on or before the date that is eleven (11) months prior to the proposed commencement date of Tenant’s fourth through tenth Renewal Options, as applicable, Landlord shall, within ten (10) days, designate an independent MAI appraiser to determine the annual fair market rental value.  Within ten (10) days after selection of Landlord’s appraiser, Landlord shall notify Tenant of the determination made by Landlord’s appraiser with respect to the annual fair market rental value.  Tenant shall then have twenty (20) days to dispute such determination and to select its own independent MAI appraiser.   In the event that Tenant fails to select its appraiser within such twenty (20) day period, the determination of Landlord’s appraiser shall constitute such annual fair market rental value.  Within ten (10) days after selection of Tenant’s appraiser, the two appraisers shall meet and attempt to agree as to the annual fair market rental value for the Premises for the Extension Period in question.  In the event that such appraisers are unable to agree as to such annual fair market rental value then:  (i) if the difference between the two determinations is less than five percent (5%) of the lower determination, then the average of the two determinations shall be deemed to constitute such annual fair market rental value; or (ii) if the difference between the two determinations is equal to or greater than five percent (5%) of the lower determination, then the two appraisers shall jointly select a third independent MAI appraiser, which appraiser shall select which of the determinations of the first two appraisers shall constitute such annual fair market rental value.  Such third appraiser shall not have the right to vary or modify the determinations of the appraisers selected by Landlord and Tenant.  Any appraiser selected pursuant to this Section 28 of Part I must have at least ten (10) years experience in appraising commercial real estate in the area in which the Premises are located.  The appraisers shall not have the right to amend, modify or vary any of the terms of this Lease and the determination of the appraisers in accordance with this Section 28 of Part I shall be final, binding and conclusive upon Landlord and Tenant; provided that upon such determination, Tenant shall have no obligation to exercise such Renewal Option.

 

(b)           For Extension Periods Four Through Ten.  Not less than twelve (12) months prior to the proposed commencement date of each Renewal Option, as applicable, Landlord and Tenant shall endeavor in good faith to agree upon a commercially reasonable fair market rent; provided that upon such determination, Tenant shall have no obligation to exercise such Renewal Option.

 

29.           Certain Definitions:  The following terms shall have the definitions given to them in the following Sections of this Lease:

 

	
Additional Rent

	
Section 5(d) of Part II

	 	 
	
alteration

	
Section 16(a) of Part II

	 	 
	
Appraiser

	
Section 13(d) of Part II

	 	 
	
business day

	
Section 44(l) of Part II

	 	 
	
Casualty

	
Section 13(a) of Part II

	 	 
	
Condemnation

	
Section 14(a) of Part II

	 	 
	
CPI Factor

	
Section 27 of Part I

	 	 
	
CPI

	
Section 27 of Part I

	 	 
	
Dedication

	
Section 30 of Part II

	 	 
	
Discount Rate

	
Section 23(g) of Part II

	 	 
	
Disqualifying Default

	
Section 13(c) of Part II

 

  

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Due Date

	
Section 5(a) of Part II

	 	 
	
Easements

	
Section 30 of Part II

	 	 
	
Environmental Laws

	
Section 40(a) of Part II

	 	 
	
Environmental Claim

	
Section 40(d) of Part II

	 	 
	
Event of Default

	
Section 23 of Part II

	 	 
	
Exchange Offer

	
Section 45of Part II

	 	 
	
Extension Periods

	
Section 12 of Part I

	 	 
	
Fair Market Value of the Premises

	
Section 13(d) of Part II

	 	 
	
guaranties

	
Section 24 of Part II

	 	 
	
Hazardous Materials

	
Section 40(a) of Part II

	 	 
	
Indemnified Parties

	
Section 28 of Part II

	 	 
	
Interest Rate

	
Section 20 of Part I

	 	 
	
Landlord’s Due Diligence Information

	
Section 45 of Part II

	 	 
	
Laws

	
Section 10 of Part II

	 	 
	
Lease Commencement Date

	
Section 11 of Part I

	 	 
	
Legal Requirements

	
Section 10 of Part II

	 	 
	
Loan

	
Section 17 of Part I

	 	 
	
Material Taking

	
Section 14(b) of Part II

	 	 
	
Minimum Rating

	
Section 13(c) of Part II

	 	 
	
Moody’s

	
Section 13(c) of Part II

	 	 
	
Mortgage

	
Section 20(a) of Part II

	 	 
	
Net Proceeds

	
Section 13(c) of Part II

	 	 
	
Note

	
Section 17 of Part I

	 	 
	
Notice of Breach

	
Section 23(h) of Part II

	 	 
	
person(s)

	
Section 44(k) of Part II

 

  

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Prime Rate

	
Section 20 of Part I

	 	 
	
Regulated Activity

	
Section 40(b) of Part II

	 	 
	
Remedial Work

	
Section 40(c) of Part II

	 	 
	
Renewal Options

	
Section 12 of Part I

	 	 
	
Restoration Cost

	
Section 13(d) of Part II

	 	 
	
Restoration

	
Section 13(c) of Part II

	 	 
	
S&P

	
Section 13(c) of Part II

	 	 
	
Signs

	
Section 17 of Part II

	 	 
	
SNDA Agreement

	
Section 20(a) of Part II

	 	 
	
Substitute Premises

	
Section 45 of Part II

	 	 
	
Taking

	
Section 14(a) of Part II

	 	 
	
Taking Termination Date

	
Section 14(b) of Part II

	 	 
	
tax or taxes

	
Section 31 of Part II

	 	 
	
Tenant’s Taking Termination Notice

	
Section 14(b) of Part II

	 	 
	
Term

	
Section 11 of Part I

	 	 
	
Third Parties

	
Section 40(b) of Part II

	 	 
	
trade fixtures

	
Section 19 of Part II

	 	 
	
Treasury Rate

	
Section 23(g) of Part II

	 	 
	
Trustee

	
Section 13(c) of Part II

 

  

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PART II.

 

PREMISES

 

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

 

NO MERGER OF TITLE -

 

2.           There shall be no merger of this Lease nor of the leasehold estate created hereby with the fee estate in or ownership of the Premises by reason of the fact that the same entity may acquire or hold or own (i) this Lease or such leasehold estate or any interest therein and (ii) the fee estate or ownership of any of the Premises or any interest therein. No such merger shall occur unless and until all entities having any interest in (x) this Lease or such leasehold estate and (y) the fee estate in the Premises including, without limitation, Lender’s interest therein, shall join in a written, recorded instrument effecting such merger.

 

RENEWAL OPTIONS -

 

3.           Tenant has the Renewal Options, and may extend the Term of this Lease for each of the Extension Periods described in Section 12 of Part I hereof, upon all the of the terms set forth in this Lease except that the annual Fixed Rent for (i) each year during the first three (3) Extension Periods shall be an amount equal to Fixed Rent payable in the immediately preceding year as increased by the Percentage Rent Change, and (ii) each year during the remaining seven (7) Extension Periods shall be an amount equal to the Fair Market Rental Value determined in accordance with Section 28(b) of Part I at time of the initiation of such Extension Period.  Tenant may exercise each such Renewal Option successively by giving written notice to Landlord not less than Required Advance Notice of Exercise of Renewal Options (as defined in Section 13 of Part I); provided, however, that if the rental rate for the first three (3) Extension Periods (as determined by the immediately preceding sentence) is less than the Fair Market Rental Value determined in accordance with Section 28(a) of Part I at time of the initiation of such Extension Period, Landlord may reject such Renewal Option within ninety (90) days following the final determination of such Fair Market Rental Value.  Notwithstanding the foregoing, Tenant shall not be entitled to exercise a Renewal Option if, at the time of exercise of a Renewal Option or at the time of commencement of an Extension Period, a continuing Event of Default shall then exist.  If Tenant shall fail, or shall not be entitled pursuant to the preceding sentence, to extend the Term for an additional Extension Period, all remaining rights of renewal shall automatically expire.

 

USE -

 

4.           (a)           Tenant may use the Premises for the operation of a financial institution and related financial activities and services, as well as related uses which are not then in violation of any Laws or Legal Requirements so long as such other lawful purpose would not (i) have a material adverse effect on the value of the Premises, (ii) materially increase (when compared as a retail store) the likelihood that Tenant, Landlord or Landlord’s Lender would incur liability under any Environmental Laws (as hereinafter defined), or (iii) result in or give rise to any material environmental deterioration or degradation of the Premises. In no event shall the Premises be used for any purpose which shall violate any of the provisions of any covenants, restrictions or agreements hereafter created by or consented to by Tenant applicable to the Premises.  Tenant agrees that with respect to the Permitted Encumbrances and any covenants, restrictions or agreements hereafter created by or consented to by Tenant, Tenant shall observe, perform and comply with and carry out the provisions thereof required therein to be observed and performed by Landlord.

 

  

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(b)           Without limiting any rights of Tenant under this Lease, Tenant, subject to Laws and Legal Requirements (as such terms are defined in Section 10 of this Part II),  may: keep the Premises open for business on Sundays and/or holidays; and operate on an “extended-hours basis” (defined as being open for business in excess of 110 hours per week).

 

(c)           Tenant covenants and agrees to remain in actual physical possession of the  Premises and to continuously operate its business in the Premises; provided, however, that (i) such operating covenant shall not apply in connection with any strike, riot, act of God, fire or other casualty, partial condemnation, shortage of labor or materials, war, governmental law, regulation or restriction or other event beyond the control of Tenant (other than lack of funds) that prevents Tenant from operating its business at the Premises, and (ii) from and after the commencement of the twenty fourth (24th) calendar month following the Rent Commencement Date, Tenant may cease to operate its business in the Premises on a temporary basis, for the purpose of remodeling the Premises and/or performing alterations, provided such cessation does not last for more than two hundred ten (210) days during any one twelve-month period.  In the event that any such remodeling or alteration work will take more than two hundred and ten (210) days, Landlord will provide Tenant with such additional time to complete such work as may be reasonably necessary, not to exceed two hundred seventy (270) days, provided that Tenant requests such extension of time from Landlord, in writing, prior to the one-hundred eightieth (180th) day after the commencement of any such remodeling or alteration work.

 

FIXED RENT -

 

5.           (b)           Fixed Rent shall be due and payable in advance on the first day of each month (or if such first day is not a business day, the first business day of each month), commencing on the Date of Rent Commencement, during the Term (each such date being referred to herein as  a “Due Date”).  Notwithstanding the foregoing, from the Date of Rent Commencement until Tenant is notified otherwise by Landlord and Lender, Fixed Rent shall be paid on or before such date to the account specified in the notice from Landlord delivered concurrently with the execution and delivery of this Lease.

 

(b)           If the Date of Rent Commencement shall be on any day other than the first day of a calendar month, Fixed Rent and other charges for the portion of such month including and after the Date of Rent Commencement shall be prorated (based on the first full month’s Fixed Rent and other charges) on a per diem basis and shall be prepaid on the Lease Commencement Date.  The Fixed Rent paid for such partial period shall be allocated to such partial period.  The foregoing notwithstanding, Tenant’s obligation to pay insurance charges pursuant to Section 32 of Part II of this Lease, taxes pursuant to Section 31 of Part II of this Lease, and all other Additional Rent shall commence upon the Lease Commencement Date.

 

  

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(c)           If any installment of Fixed Rent is not paid on the respective Due Date, Tenant shall pay Landlord, upon written notice from Landlord, a Late Fee (herein so called) in an amount equal to the lesser of (A) five percent (5%) of the amount of such Fixed Rent Installment which is not paid on the respective Due Date, or (B) the highest amount chargeable as a late fee by applicable Law (if the same is limited by applicable Law).  Notwithstanding the forgoing, no such default interest or Late Fee shall be payable by Tenant in connection with the first delinquent payment of Fixed Rent in any twelve-month period so long as such delinquency is cured within ten (10) days of the applicable Due Date.  All Fixed Rent and Additional Rent (as hereinafter defined) shall be payable in U.S. Dollars.

 

(d)           Commencing as of the Lease Commencement Date, all taxes, costs, expenses, and other amounts which Tenant is required to pay pursuant to this Lease (other than Fixed Rent), together with every fine, penalty, interest and cost which may be added for non-payment or late payment thereof (except to the extent such fine, penalty, interest or cost is the result of an act or omission of Landlord), shall constitute additional rent (“Additional Rent”).  Landlord shall, within seven (7) days following Landlord’s receipt, deliver to Tenant any bill or invoice Landlord receives with respect to any Additional Rent.  Landlord agrees to cooperate with Tenant to enable Tenant to receive tax bills directly from the respective taxing authorities.  All Additional Rent shall be paid directly by Tenant to the party to whom such Additional Rent is due.  If Tenant shall fail to pay any such Additional Rent or any other sum due hereunder when the same shall become due, Landlord shall have all rights, powers and remedies with respect thereto as are provided herein or by Law in the case of non-payment of any Fixed Rent and shall, except as expressly provided herein, have the right, not sooner than ten (10) days after notice to Tenant (except in the event of an emergency, as reasonably determined by Landlord, in which case prior notice shall not be necessary) of its intent to do so, to pay the same on behalf of Tenant, and Tenant shall repay such amounts to Landlord on demand.  Tenant shall pay to Landlord interest at the Lease Default Rate on all overdue Additional Rent and other sums due hereunder, in each case paid by Landlord or Lender on behalf of Tenant, from the date of payment by Landlord or Lender until repaid by Tenant.

 

NET LEASE; TRUE LEASE -

 

6.           (c)           The obligations of Tenant hereunder shall be separate and independent covenants and agreements, and Fixed Rent, Additional Rent and all other sums payable by Tenant hereunder shall continue to be payable in all events, and  the obligations of Tenant hereunder shall continue during the Term, unless the requirement to pay or perform the same shall have been terminated pursuant to the provisions of Section 13(d), or Section 14 of this Part II.  This is an absolutely net lease and Fixed Rent, Additional Rent and all other sums payable hereunder by Tenant shall be paid without notice or demand, and without setoff, counterclaim, recoupment, abatement, suspension, reduction or defense.  This Lease is the absolute and unconditional obligation of Tenant, and the obligations of Tenant under this Lease shall not be affected by any interference with Tenant’s use of any of the Premises for any reason, except as otherwise expressly stated herein.  All costs, expenses and obligations of every kind and nature whatsoever relating to the Premises (other than depreciation, interest on and amortization of debt incurred by Landlord, and costs incurred by Landlord in financing or refinancing the Premises) and the appurtenances thereto and the use and occupancy thereof which may arise or become due and payable with respect to the period which ends on the expiration or earlier termination of the Term in accordance with the provisions hereof (whether or not the same shall become payable during the Term or thereafter) shall be paid by Tenant except as otherwise expressly provided herein.  Tenant shall pay all expenses related to the maintenance and repair of the Premises, and taxes and insurance costs. Tenant shall have no right to abate Fixed Rent or Additional Rent during the Term, and, except as otherwise expressly stated herein, this Lease shall not terminate and Tenant shall not have any right to terminate this Lease.

 

  

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(b)           Landlord and Tenant agree that this Lease is a true lease and does not represent a financing arrangement. Each party shall reflect the transaction represented hereby in all applicable books, records and reports (including income tax filings) in a manner consistent with “true lease” treatment rather than “financing” treatment.

 

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

 

CONDITION -

 

7.           Tenant acknowledges that Tenant is fully familiar with the physical condition of the Premises and that Landlord makes no representation or warranty express or implied, with respect to same.  EXCEPT FOR LANDLORD’S COVENANT OF QUIET ENJOYMENT SET FORTH IN SECTION 35 OF THIS PART II, LANDLORD MAKES NO AND EXPRESSLY HEREBY DENIES ANY REPRESENTATIONS OR WARRANTIES REGARDING THE CONDITION OR SUITABILITY OF, OR TITLE TO, THE PREMISES TO THE EXTENT PERMITTED BY LAWS, AND TENANT WAIVES ANY RIGHT OR REMEDY OTHERWISE ACCRUING TO TENANT ON ACCOUNT OF THE CONDITION OR SUITABILITY OF THE PREMISES, OR (EXCEPT WITH RESPECT TO LANDLORD’S WARRANTY SET FORTH IN SECTION 35 OF THIS PART II) TITLE TO THE PREMISES, AND TENANT AGREES THAT IT TAKES THE PREMISES “AS IS,” WITHOUT ANY SUCH REPRESENTATION OR WARRANTY, INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES.  Tenant has examined the Premises and title to the Premises, and has found all of the same satisfactory for all purposes.

 

LIENS -

 

8.           Tenant shall not, directly or indirectly, create, or permit to be created or to remain, and shall remove and discharge (including, without limitation, by any statutory bonding procedure or any other bonding procedure reasonably satisfactory to Landlord and Lender which shall be sufficient to prevent any loss of Landlord’s or Lender’s interest in the Premises) within thirty (30) days after obtaining knowledge thereof, any mortgage, lien, encumbrance or other charge on the Premises or the leasehold estate created hereby which arises for any reason, other than: the Landlord’s Mortgage (and any assignment of leases or rents collateral thereto); the Permitted Encumbrances  which are specified on Exhibit B hereto or which subsequently arise with the prior written consent of Landlord and Lender; and any mortgage, lien, encumbrance or other charge created by or resulting from any act or omission by Landlord or those claiming by, through or under Landlord (other than Tenant) (collectively, “Tenant Liens”, each a “Tenant Lien”); provided, however, to the extent such Tenant Lien cannot be removed or discharged within thirty (30) days, Tenant shall have reasonable additional time not to exceed forty five (45) days to remove such Tenant Lien so long as Tenant is promptly and diligently working to remove or discharge such Tenant Lien.  Landlord shall not be liable for any labor, services or materials furnished to Tenant or to any party holding any portion of the Premises through or under Tenant and no mechanic’s or other liens for any such labor, services or materials shall attach to the Premises or the leasehold estate created hereby.

 

  

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REPAIRS AND MAINTENANCE -

 

9.           (d)           Tenant shall  keep, maintain and repair, at its sole cost and expense, the Premises, including, without limitation, the roof, walls, footings, foundations, HVAC, mechanical and electrical equipment and systems in or serving the Premises and structural and nonstructural components and systems of the Premises, parking areas, sidewalks, roadways and landscaping in good repair and appearance, and shall make all repairs and replacements (substantially equivalent in quality and workmanship to the original work) of every kind and nature, whether foreseen or unforeseen, which may reasonably be required to be made  in order to keep and maintain the Premises in as good repair and appearance as they were when originally constructed, except for ordinary wear and tear and (other than for any Restoration required by the terms of this Lease) any damage to the Premises by any Material Taking of the Premises.  Tenant shall do or cause others to do all shoring of the Premises or of the foundations and walls of the Building and every other act necessary or appropriate for the preservation and safety thereof (including, without limitation, any repairs required by Law as contemplated by Section 10 of this Part II), by reason or in connection with any excavation or other building operation upon the Premises, and Landlord shall have no obligation to do so.  Landlord shall not be required to make any repair, replacement, maintenance or other work whatsoever,  or to maintain  the Premises in any way, and Tenant  waives the right to make repairs, replacements or to perform maintenance or other work at the expense of Landlord, which right may be provided for in any Laws.  Nothing in the preceding sentence shall be deemed to preclude Tenant from being entitled to insurance proceeds or awards for any taking to the extent provided in this Lease.  Tenant shall, in all events, make all repairs, replacements and perform maintenance and other work for which it is responsible hereunder, in a good, proper and workmanlike manner.

 

(b)           If all or any part of the Building shall encroach upon any property, street or right-of-way adjoining or adjacent to the Premises, or shall violate the agreements or conditions affecting the Premises or any part thereof, or shall violate any Laws or Legal Requirements, or shall hinder, obstruct or impair any easement or right-of-way to which the Premises is subject, then, promptly after written request of Landlord (unless such encroachment, violation, hindrance, obstruction or impairment is a Permitted Encumbrance of record, or otherwise actually known to Landlord, as of the Lease Commencement Date, or on the survey obtained by Landlord at the time of its purchase of the Premises, or which subsequently arises with the prior written consent of Landlord and Lender) or of any person affected thereby, Tenant shall, at its sole expense, either (i) obtain valid and effective waivers or settlements of all claims, liabilities and damages resulting therefrom, or (ii) make such changes, including alterations to the Building (subject, however, to Tenant’s maintenance and repair obligations in Section 9(a) of this Part II) and take such other action as shall be necessary to remove or eliminate such encroachments, violations, hindrances, obstructions or impairments, provided that, if Landlord’s or Lender’s consent is required for such changes pursuant to this Lease, Landlord’s or Lender’s consent shall not be unreasonably withheld, conditioned or delayed.  Notwithstanding the foregoing and in addition to Tenant's obligations contemplated by this subsection 9(b), Tenant shall be liable for all violations, if any, which may arise from the encroachments identified on the survey obtained by Landlord dated ___________, 2007.

 

  

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(c)           If Tenant shall be in default under any of the provisions of this Section 9, Landlord may, after thirty (30) days written notice to Tenant and failure of Tenant to cure during said period (provided, however, that if such default is of a nature that it cannot be cured within such thirty (30) day period, Tenant shall have such reasonable additional time not to exceed forty five (45) days to complete such cure so long as Tenant has promptly commenced such cure and is diligently working to complete such cure), but without notice in the event of an emergency, do whatever is necessary to cure such default as may be appropriate under the circumstances for the account of and at the expense of Tenant. If an emergency exists, Landlord shall use reasonable efforts to notify Tenant of the situation by phone or other available communication before taking any such action to cure such default.  All reasonable sums so paid by Landlord and all reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) so incurred, together with interest at the Lease Default Rate from the date of payment or incurring of the expense, shall constitute Additional Rent payable by Tenant under this Lease and shall be paid by Tenant to Landlord on demand.

 

(d)           If during the last twenty-four (24) months of the last Extension Period of this Lease (i.e., Lease years 63-65), the terms of this Lease require Tenant to perform a Capital Improvement, Tenant shall send Landlord written notice describing such Capital Improvement along with an estimate of the cost of such Capital Improvement.  If (i) such Capital Improvement is necessary for the continued operation of Tenant’s business at the Premises, or (ii) Landlord shall require Tenant to perform a Capital Improvement, then the cost of such Capital Improvement shall be amortized over the useful life of such item (based on engineering specifications, or if such engineering specifications are not available, based on the mutual agreement of Landlord or Tenant) and Landlord shall reimburse Tenant for the unamortized portion thereof that extends beyond the expiration of such final Extension Period.  The term “Capital Improvement” shall mean any maintenance, repair or replacement, the cost of which would be characterized as a capital expense in accordance with generally accepted accounting principles consistently applied.

 

COMPLIANCE WITH LAWS -

 

10.           During the Term Tenant shall comply with all Laws and Legal Requirements relating to the Premises.  As used herein, (i) the term “Laws” shall mean all present and subsequently enacted laws, statutes, codes, ordinances, orders, judgments, decrees, injunctions, rules, regulations and requirements, even if unforeseen or extraordinary, of every duly constituted governmental authority or agency (but excluding those which by their terms are not applicable to and do not impose any obligation on Tenant, Landlord or the Premises or which are due to take effect after expiration of the Term), and (ii) the term “Legal Requirements” shall mean all Laws and covenants, restrictions and conditions now or in the future of record which may be applicable to Tenant, Landlord (with respect to the Premises) or to all or any part of or interest in Premises, or to the use, manner of use, occupancy, possession, operation, maintenance, alteration, repair or reconstruction of the Premises.

 

  

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ACCESS TO PREMISES  -

 

11.           Upon reasonable notice to Tenant, and during Tenant’s business hours, Landlord and Lender and their respective employees, contractors, agents and representatives may, subject to Tenant’s right to have its employee, agent or representative accompany such individual(s), enter onto the Premises to (i) show the Premises to purchasers and potential purchasers, and to mortgagees and potential mortgagees, or (ii) for the purpose of inspecting the Premises or performing any work which Landlord is permitted to perform under this Lease; provided, that, for purposes of subpart (ii) of this sentence, Landlord and Lender shall not be required to give notice prior to entry onto the Premises during the continuance of an Event of Default (of which Tenant has previously been notified) or in the event of an emergency situation.  Upon reasonable notice to Tenant, during the last twelve (12) months of the then-current Term, unless Tenant shall have exercised the next Renewal Option, Landlord also may enter onto the Premises to show the Premises to persons wishing to rent the same, and place notices offering the Premises “For Rent” or “For Sale” on the front of the Building.  The content and location of such signs shall be subject to Tenant’s prior consent, which consent shall not be unreasonably withheld, conditioned or delayed, and Landlord further agrees that it shall not place any such notices on or in any door or show window of the Building.  No such entry shall constitute an eviction of Tenant but any such entry shall be done by Landlord in such reasonable manner as to minimize any disruption of Tenant’s business operation.

 

WAIVER OF SUBROGATION -

 

12.           Notwithstanding anything in this Lease to the contrary, Landlord and Tenant each waive any rights of action for negligence against the other party, which may arise during the Term for damage to the Premises or to the property therein resulting from any fire or other casualty, but only to the extent covered by  insurance.  Each party shall cause its respective insurance policy to be endorsed to evidence compliance with such waiver; provided, however, that this requirement does not imply an obligation on the part of Landlord to carry any insurance in connection with the Premises.

 

DAMAGE; DESTRUCTION -

 

13.           (e)           In the event of any damage to or destruction of the Premises by fire, the elements or other casualty during the Term (a “Casualty”), Tenant shall give Landlord, if any, prompt written notice thereof. Tenant shall adjust, collect and compromise any and all claims covered by insurance.

 

(b)           In the event of any such Casualty (whether or not insured against) the Term shall continue and there shall be no abatement or reduction of Fixed Rent, Additional Rent or of any other sums payable by Tenant hereunder.

 

  

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(c)           All proceeds of any insurance required to be carried hereunder less the actual expenses, if any, of Landlord or Lender in collecting such proceeds (the “Net Proceeds”) (provided that Landlord shall not, and Landlord shall not cause Lender to, incur expenses in connection with collecting such proceeds unless such expenditures are necessary to collect such proceeds) shall be payable by Tenant’s insurer directly to Tenant to apply in accordance with the terms of this Lease if (i) the estimated cost of restoring or repairing the Premises to as nearly as possible to its value, condition, character, utility and useful life immediately before such Casualty, but in any event assuming the Premises have been maintained in accordance with the requirements of Section 9 of this Part II (such restoration or repair of the Premises, whether in connection with a Condemnation or a Casualty, as the context requires, herein called a “Restoration”), shall be the Threshold Repair Amount or less, and (ii) no Event of Default or Disqualifying Default (as hereinafter defined) has occurred and is continuing.  In all other events the Net Proceeds shall be payable by Tenant’s insurer to a trustee which shall be a federally insured bank, title insurance company or other financial institution, selected by Landlord and Tenant and reasonably satisfactory to Lender (the “Trustee”) to be held and disbursed in accordance with the provisions of Section 13(e) of this Part II; provided, however, that if at the time of the delivery of the Net Proceeds a Mortgage is in existence, the Lender or the servicer of the Loan may act as Trustee without the consent of either Landlord or Tenant.  As used herein, a “Disqualifying Default” shall mean and include (i) any failure to make any payment of Fixed Rent when due hereunder following any applicable cure periods, and (ii) the occurrence of any event or condition described in subparts (vi) or (vii) of Section 23(a) of Part II hereof without regard to any notice or lapse of time set forth in such subparts which may be required for such events or conditions to mature into an Event of Default.

 

(d)           Tenant shall, whether or not the Net Proceeds of such insurance are sufficient for the purpose or delivered to Tenant, promptly complete the Restoration, at Tenant’s sole cost and expense, of the improvements damaged by such Casualty (including any alterations previously made by Tenant hereunder) or, if the Building was under construction at such time, to the condition and fair market value thereof which would be anticipated at the time of completion as required under this Lease.  Prior to any such Restoration, Tenant shall notify Landlord in writing of the estimated cost thereof (the “Restoration Cost”). Tenant shall not have any right to abate the payment of Fixed Rent or Additional Rent as a result of any Casualty.  As used herein, the “Fair Market Value of the Premises” shall be the fair market value of the Premises as determined by an appraisal of the Premises prepared by an MAI appraiser who is mutually satisfactory to Landlord and Tenant with not less than ten (10) years experience appraising properties similar to the Premises in the metropolitan area in which the Premises is located (an “Appraiser”).

 

(e)           Net Proceeds held by the Trustee shall be invested in accordance with standards adopted by Lender and Landlord from time to time, and shall be disbursed, within ten (10) days following the date Tenant satisfies the following conditions:

 

(i)           If the Restoration Cost exceeds the Threshold Repair Amount, before commencing the Restoration the architects, general contractor(s), and plans and specifications for the Restoration shall be approved by Landlord and Lender, which approval shall not be unreasonably withheld or delayed; and which approval shall be granted to the extent that the plans and specifications depict a Restoration which is substantially similar to the improvements and equipment which existed prior to the occurrence of the Casualty or Taking, whichever is applicable.

 

  

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(ii)           At the time of any requested disbursement, no Event of Default or Disqualifying Default shall exist and no mechanics’ or materialmen’s liens shall have been filed and remain undischarged or unbonded.

 

(iii)           Disbursements shall be made from time to time in an amount not exceeding the hard and soft cost of the work and costs incurred since the last disbursement upon receipt of (A) satisfactory evidence, including architects’ certificates of the stage of completion, of the estimated costs of completion and of performance of the work to date in a good and workmanlike manner in accordance with the contracts, plans and specifications, (B) partial releases of liens, if the same are obtainable or, if such partial releases are not obtainable, endorsements to Landlord’s and Lender’s title insurance policies showing no exceptions for mechanics’ or materialmen’s or any similar liens, and (C) other reasonable evidence of cost and payment so that Landlord can verify that the amounts disbursed from time to time are represented by work that is completed in place or delivered to the site and free and clear of mechanics’ lien claims.

 

(iv)           Landlord or Lender shall have the right to have all such work inspected by its own architect or engineer and to approve all disbursements, which approval shall not be unreasonably withheld or delayed.  The reasonable cost of Landlord’s inspection shall be included in the cost of such work.

 

(v)           The Trustee may retain ten percent (10%) of the Net Proceeds until the Restoration is at least fifty percent (50%) complete, which amount may continue to be held as retainage until the Restoration is substantially complete.

 

(vi)            [Intentionally Omitted]

 

(vii)           At all times the undisbursed balance of the Net Proceeds held by Trustee plus any funds contributed thereto by Tenant, at its option, shall be not less than the cost of completing the Restoration, free and clear of all liens.

 

(viii)           In addition, before commencement of Restoration and at any time during Restoration, if the estimated cost of Restoration, as reasonably determined by an independent architect mutually agreed upon by the parties in their reasonable discretion, exceeds the amount of the Net Proceeds available for such Restoration, the amount of such excess shall be paid by Tenant to the Trustee to be added to the Net Proceeds or Tenant shall fund at its own expense the costs of such Restoration until the remaining Net Proceeds are sufficient for the completion of the Restoration.  For purposes of determining the source of funds with respect to the disposition of funds remaining after the completion of Restoration, the Net Proceeds shall be deemed to be disbursed prior to any amount added by Tenant.

 

(ix)           Provided no Event of Default or Disqualifying Default exists and is continuing, any Net Proceeds remaining after final payment has been made for such Restoration shall be promptly delivered to Tenant.  Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is continuing, Landlord shall be entitled to retain any Net Proceeds and to apply the same to either repair the damages or to pay other amounts due Landlord hereunder or Lender under the Mortgage, at Lender’s or, if there is then no Lender, Landlord’s sole option.  No such retention by Landlord shall impose on Landlord any obligation to repair the Premises or relieve Tenant of its obligations to repair the Premises.

 

  

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CONDEMNATION -

 

14.

 

(a)           Non-Material Taking

 

.  If the Premises shall be permanently taken or condemned for any public or quasi-public use or purpose, by right of eminent domain or by purchase in lieu thereof (a “Taking”, or “Condemnation”), and such Taking is not a Material Taking (as hereinafter defined), then Tenant shall promptly restore the remaining portion or portions thereof to a condition comparable to their condition at the time of such Taking, less the portion or portions lost by the Taking, and this Lease shall continue in full force and effect and Rent shall not abate during such restoration (except that after the completion of such restoration the Fixed Rent payable hereunder shall, if necessary, be equitably adjusted on a prospective basis to take into account the Net Award (as hereinafter defined) that is retained by Landlord after such restoration).  As used herein, “Net Award” shall mean the entire award payable to Landlord by reason of a Taking, less the sum of (i) any reasonable expenses incurred by Landlord in collecting such award, and (ii) the amount of the award applied to the cost of restoration.

 

(b)           Material Taking.  If (i) the Taking shall be of all of the Premises, or (ii) the Taking is for less than all of the Premises, but Tenant does not want to restore the Premises because (A) the access points to the Premises are taken or materially impaired such that the Premises do not have commercially reasonable access for Tenant’s business operations and as a result the Premises are effectively rendered untenantable, (B) the Taking results in the permanent closure or removal of a portion of the Improvements such that the remaining Premises are rendered uneconomical for Tenant’s business operations or (C) the Taking will materially adversely affect Tenant’s ability to conduct its business operations at the Premises (each, a “Material Taking”), then Tenant may, not later than sixty (60) days after such Material Taking has occurred, (x) offer in writing (which offer may be rejected by Landlord pursuant to Section 14(b)(i) hereof) to cause a Substitution pursuant to Section 45 hereof (a “Taking Substitution Offer”), or (y) notify Landlord in writing of its election to terminate this Lease pursuant to Section 14(b)(iii) hereof (the “Tenant’s Taking Termination Notice”).

 

(i)           If Landlord and Lender shall not elect to accept Tenant’s Taking Substitution Offer, Landlord shall give notice thereof to Tenant within one hundred twenty (120) days after receipt of the Taking Substitution Offer.  In such event, this Lease shall terminate on the Due Date immediately following the date Landlord receives written notice from the applicable governmental authority specifying the final amount of the award payable by such authority in connection with such Taking (the “Taking Substitution Termination Date”), subject to (i) payment by Tenant to Landlord of the Taking Termination Payment (as hereinafter defined), and (ii) Landlord’s entitlement to the entire amount of the award payable in connection with such Material Taking.  This Lease shall remain in full force and effect prior to the Taking Substitution Termination Date.  Any notice from Landlord not to accept a Taking Substitution Offer shall be void and of no effect unless accompanied by the written notice of Lender to the effect that Lender also elects not to accept such Taking Substitution Offer.

 

  

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(ii)           If Landlord and Lender accept the Taking Substitution Offer, the Substitution shall be made (i) pursuant to Section 45 hereof, and (ii) within two hundred seventy (270) days after the Material Taking.  This Lease shall remain in full force and effect with respect to the Premises unless and until the Substitution is completed. Upon the Substitution, Tenant shall be entitled to the entire amount of the award payable in connection with such Material Taking.

 

(iii)           Any Tenant’s Taking Termination Notice shall (x) state that Tenant desires to terminate this Lease on the applicable Taking Termination Date (as hereinafter defined), and (y) acknowledge that such termination is conditioned upon Tenant’s payment to Landlord of the Taking Termination Payment (as hereinafter defined) on or before the Taking Termination Date.  The “Taking Termination Date” shall mean the Due Date immediately following the date Landlord receives written notice from the applicable governmental authority specifying the final amount of the award payable by such authority in connection with such Taking.  In such event, on the Taking Termination Date (A) Tenant shall deliver to Landlord the Taking Termination Payment, (B) this Lease and the Term hereof shall terminate, (C) Tenant shall have no obligation to commence or complete the restoration of the Improvements, and (D) all of the award payable in connection with the Material Taking shall be paid to Landlord.  The “Taking Termination Payment” shall be an amount equal to the sum of (a) the Fixed Rent due under the Lease as of the Taking Termination Date, (b) any other amounts due under the Lease as of the Taking Termination Date, (c) the aggregate remaining Fixed Rent and Additional Rent payable by Tenant hereunder for the Initial Term (or any Extension Period for which the Term has been extended), discounted to present worth at a discount rate equal to 7.5% (provided, however, Tenant shall not be liable for, and any amounts pursuant to this provision (c), which, when added to the award payable in connection with the Material Taking, exceed one hundred and five percent (105%) of the purchase price paid by the Landlord under this Lease in connection with its purchase of the Premises), and (d) any other amounts that are due and owing to Lender or Landlord by reason of any default by Tenant in complying with its obligations under this Lease.  This Lease shall remain in full force and effect prior to the Taking Termination Date.

 

(c)           Award.  The entire award for the Premises or the portion or portions thereof so taken shall be apportioned between Landlord and Tenant as follows:  (i) if this Lease terminates due to a Taking, Landlord shall be entitled to the entire award; (ii) if this Lease does not terminate due to a Taking, Tenant shall be entitled to the award to the extent required for restoration of the Premises, and Landlord shall be entitled to the balance of the award not applied to restoration.  If this Lease does not terminate due to a Taking, Tenant shall, with due diligence, restore the remaining portion or portions of the Premises in the manner hereinabove provided.  In such event, if the estimated cost of restoring or repairing the Premises following such Taking shall be more than the Threshold Repair Amount, or if there is a continuing Event of Default or Disqualifying Event of Default, the proceeds of the award to be applied to restoration shall be deposited with the Trustee, and the amount so deposited will thereafter be treated in the same manner as insurance proceeds are to be treated under Section 13 hereof until the restoration has been completed and Tenant has been reimbursed for all the costs and expenses thereof.  If the estimated cost of restoring or repairing the Premises following such Taking shall be the Threshold Repair Amount or less and there are no continuing Events of Default or Disqualifying Events of Default, an amount of the proceeds equal to such estimated cost shall be payable to Tenant the amount so paid shall thereafter be treated in the same manner as insurance proceeds are to be treated under Section 13 hereof.  If the award is insufficient to pay for the restoration, Tenant shall be responsible for the remaining cost and expense of such restoration.  Nothing in this Lease shall be deemed to assign to Landlord or Lender any award relating to the value of the leasehold interest created by this Lease or any award or payment on account of Tenant’s trade fixtures, business interruption and Tenant’s moving expenses and out-of-pocket expenses incidental to the move, and if available, to the extent Tenant shall have a right to make a separate claim therefor against the condemnor, it being agreed, however, that Tenant shall in no event be entitled to any payment that reduces the award to which Landlord is or would be entitled for the Taking of Landlord’s interest in the Premises.

 

  

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ASSIGNMENT AND SUBLETTING -

 

15.           (f)           Tenant shall have the right to assign this Lease, or to sublet the whole or any part of the Premises, for use for any lawful purpose (subject to the limitations of Section 4(a) of this Part II), provided Tenant shall remain liable for the obligations of Tenant hereunder, which liability of Tenant shall be and remain that of a primary obligor and not a guarantor or surety.  Tenant agrees that in the case of an assignment of this Lease, Tenant shall, within fifteen (15) days after the execution and delivery of any such assignment, deliver to Landlord (i) a duplicate original of such assignment in recordable form and (ii) an agreement executed and acknowledged by the assignee in recordable form wherein the assignee shall agree to assume and agree to observe and perform all of the terms and provisions of this Lease on the part of Tenant to be observed and performed from and after the date of such assignment.  In the case of a sublease, Tenant shall, within fifteen (15) days after the execution and delivery of such sublease, deliver to Landlord a duplicate original of such sublease.  Notwithstanding the foregoing, Tenant shall not be permitted to assign or sublease if, as a result, the Premises or any part thereof would be “tax-exempt use property” within the meaning of Section 168(h) of the Internal Revenue Code of 1986, as amended.  Any sublease shall be subject and subordinate to this Lease.

 

(b)           Upon the occurrence of an Event of Default following any applicable cure periods under this Lease, Landlord shall have the right to collect and enjoy all rents and other sums of money payable under any sublease of any of the Premises, and Tenant hereby irrevocably and unconditionally assigns such rents and money to Landlord, which assignment may be exercised upon and after (but not before) the occurrence of an Event of Default.

 

(c)           Any merger or consolidation by Tenant with another person, or sale of substantially all of the assets of Tenant to another person, shall be deemed an assignment of this Lease, and Tenant shall be obligated to deliver to Landlord an agreement executed and acknowledged by the surviving entity in recordable form wherein the surviving entity agrees to assume and to observe and perform all of the terms and provisions of this Lease on the part of Tenant to be observed and performed from and after the date of such transaction.

 

ALTERATIONS -

 

16.           (g)           Tenant may make any  structural or non-structural, interior and/or exterior alterations, changes, additions, improvements, reconstructions or replacements of any of the Premises (“alterations”), other than those which would result in a diminution in the value of the Premises or impair the structural integrity of the Premises. Tenant shall obtain the prior written consent of Landlord and Lender to any alteration which would result in a diminution in the value of the Premises or impair the structural integrity of the Premises, which consent may be withheld in any such person’s sole discretion.

 

  

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(b)           Tenant shall do all such work in a good and workmanlike manner, at its own cost, and in accordance with Laws and Legal Requirements. Tenant shall discharge, within sixty (60) days (by payment or by filing the necessary bond, or otherwise), any mechanics’, materialmen’s or other lien against the Premises and/or Landlord’s interest therein, which lien may arise out of any payment due for any labor, services, materials, supplies, or equipment  furnished to or for Tenant in, upon, or about the Premises; provided, however, to the extent such lien cannot be removed or discharged within thirty (30) days, Tenant shall have reasonable additional time not to exceed forty five (45) days to remove such lien so long as Tenant is promptly and diligently working to remove or discharge such lien.

 

(c)           At Tenant’s sole cost and without liability to Landlord, Landlord agrees to cooperate with Tenant (including signing applications upon Tenant’s written request) in obtaining any necessary permits, variances and consents for any alterations which Tenant is permitted to make hereunder; provided none of the foregoing shall, in any manner, result in a material reduction of access to or ingress to or egress from the Premises, a diminution in the value of the Premises, a change in zoning having a material adverse effect on the ability to use the Premises as a retail store by Tenant or otherwise have a material adverse effect on the ability to use the Premises as a retail store by Tenant.

 

(d)           Tenant agrees that in connection with any alteration: (i) the fair market value of the Premises shall not be lessened after the completion of any such alteration, or its structural integrity impaired; (ii) the alteration and any alteration theretofore made or thereafter to be made shall not in the aggregate reduce the gross floor area of the Building by more than five percent (5%); (iii) all such alterations shall be performed in a good and workmanlike manner, and shall be expeditiously completed in compliance with all Legal Requirements; (iv) Tenant shall promptly pay all costs and expenses of any such alteration; (v) Tenant shall procure and pay for all permits and licenses required in connection with any such alteration; and (vi) all alterations shall be made (in the case of any alteration the estimated cost of which in any one instance exceeds the Threshold Repair Amount) under the supervision of an architect or engineer and in accordance with plans and specifications which shall be submitted to Landlord (for information purposes only) prior to the commencement of the alterations.

 

(e)           All contracts and payments to contractors, subcontractors, suppliers and other persons in connection with the Completion Work and any alteration, Restoration, repair or other work performed at the Premises shall be entered into, made and performed in compliance with all Laws and Legal Requirements.

 

SIGNS -

 

17.           At Tenant’s sole cost, Tenant may install, replace, relocate and maintain and repair in and on the Building, such signs, awnings, lighting effects and fixtures as  may be used from time to time by Tenant (collectively, “Signs”).  At Tenant’s sole cost and without liability to Landlord, Landlord agrees to cooperate with Tenant (including signing applications upon Tenant’s written request) in obtaining any necessary permits, variances and consents for Tenant’s Signs.  All Signs of Tenant shall comply with Laws and Legal Requirements.

 

  

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PYLON SIGN -

 

18.           If permitted by Laws and Legal Requirements, Tenant, at its sole cost, may install, replace, relocate and maintain its Sign on any pylon sign structure located on the Premises; and, if no such pylon sign structure shall exist, construct its own pylon structure and install its Sign thereon. At Tenant’s sole cost and without liability to Landlord, Landlord agrees to cooperate with Tenant (including signing applications) in obtaining any necessary permits, variances and consents for any pylon Sign and/or structure.

 

SURRENDER -

 

19.           At the expiration or other termination of this Lease, Tenant shall surrender the Premises to Landlord in as good order and condition as they were at the commencement of the Term or may be put in thereafter in accordance with this Lease, reasonable wear and tear and (other than for any Restoration required by the terms of this Lease) damage to the Premises by any Material Taking of the Premises excepted.  All alterations, except Tenant’s furniture, automated teller machines, trade fixtures, satellite communications dish and equipment, computers and other similar moveable equipment and shelving (“trade fixtures”), shall become the property of Landlord and shall remain upon and be surrendered with the Premises as a part thereof at the termination or other expiration of the Term. Landlord shall not in any manner or to any extent be obligated to reimburse Tenant for any property which becomes the property of Landlord as a result of such expiration or earlier termination.  At the expiration or termination of the Term, all under-counter steel, cash drawers, night deposit equipment, built in vaults and drive-through equipment, including tubes and transportation containers, shall become the sole property of Landlord.  At the expiration or termination of the Term, Tenant shall remove its trade fixtures, as well as its Signs and identification marks, from the Premises. Tenant agrees to repair and restore any and all damage caused by such removal.  Trade fixtures and personal property not so removed at the end of the Term or within thirty (30) days after the earlier termination of the Term for any reason whatsoever shall become the property of Landlord, and Landlord may thereafter cause such property to be removed from the Premises. The reasonable cost of removing and disposing of such property and repairing and restoring any damage to any of the Premises caused by such removal shall be borne by Tenant.  Landlord shall not in any manner or to any extent be obligated to reimburse Tenant for any property which becomes the property of Landlord as a result of such expiration or earlier termination.  The provisions of this Section 19 shall survive the termination or expiration of this Lease.

 

At any time during the Term, Tenant may remove the trade fixtures as well as its Signs and identification marks, from the Premises.  Tenant agrees to repair and restore any and all damage caused by such removal.

 

  

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SUBORDINATION OF LEASE -

 

20.           (h)           This Lease shall be subject and subordinate to any Mortgage and to all advances made upon the security thereof; provided, that, Lender shall execute and deliver to Tenant an agreement substantially in the form attached as Exhibit D hereto (“SNDA Agreement”), providing that Lender recognizes this Lease and agrees to not disturb Tenant’s possession of the Premises in the event of foreclosure if Tenant is not then in default hereunder beyond any applicable cure period.  Tenant agrees, upon receipt of such SNDA Agreement, to execute such SNDA Agreement and such further reasonable  instrument(s) as may be necessary to so subordinate this Lease.  The term “Mortgage” shall include any mortgages, deeds of trust or any other similar hypothecations on the Premises securing Lender’s Loan to Landlord, regardless of whether or not such Mortgage is recorded.

 

(b)           Tenant agrees to attorn, from time to time, to Lender, and to any purchaser of the Premises, for the remainder of the Term, provided that Lender or such purchaser shall then be entitled to possession of the Premises, subject to the provisions of this Lease, and shall provide written notice to Tenant of its interest in the Premises.  This subsection shall inure to the benefit of Lender or such purchaser, shall apply notwithstanding that, as a matter of Law, this Lease may terminate upon the foreclosure of the Mortgage (in which event the parties shall execute a new lease for the remainder of the Term containing the provisions of this Lease), shall be self-operative upon any such demand, and no further instrument shall be required to give effect to said provisions. Each such party shall however, upon demand of the other,  execute instruments in confirmation of the foregoing provisions  reasonably satisfactory to the requesting party  acknowledging such subordination, non-disturbance and attornment  and setting forth the terms and conditions hereof.

 

(c)           Tenant hereby consents to any assignment of this Lease by Landlord to or for the benefit of any Lender.  Without limitation of the preceding sentence, Tenant hereby specifically consents to that certain Assignment of Lease and Rents dated as of ___________, 2007, executed by Landlord to and for the benefit of Continental Bank, as Trustee.

 

TENANT’S OBLIGATION TO DISCHARGE LIENS -

 

21.           Prior to the imposition of any fine, lien, interest or penalty Tenant shall timely pay and discharge all  amounts and obligations which Tenant assumes or agrees to pay or discharge pursuant to this Lease, together with every fine, penalty and interest with respect thereto.

 

UTILITIES -

 

22.           Tenant agrees to timely pay for all utilities consumed by it in the Premises, prior to delinquency.

 

  

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TENANT DEFAULT -

 

23.           (i)           Any of the following occurrences or acts shall constitute an Event of Default (herein so called) under this Lease:  if (i)  Tenant shall fail to pay any installment of Fixed Rent payable hereunder within seven (7) calendar days of the date such payment is due; or (ii) Tenant shall default in the payment when due of any installment of Additional Rent payable hereunder and such default shall continue for ten (10) days; or (iii) the failure by Tenant to maintain insurance as required under this Lease; or (iv) Tenant shall default in fulfilling any of the other covenants, agreements or obligations of this Lease, and such default shall continue for more than thirty (30) days after written notice thereof from Landlord (or Lender) specifying such default; provided, that, if Tenant has commenced to cure within said thirty (30) days, and thereafter is in good faith diligently prosecuting same to completion, said thirty (30) day period shall be extended, for a reasonable time (not to exceed one hundred twenty (120) days or, with respect to a breach of Tenant’s obligations under Section 40 of this Part II, such longer period as may reasonably be necessary to cure such default so long as (A) Tenant delivers to Landlord a certificate of a qualified environmental remediation specialist that such default could not be cured within such one hundred twenty (120) days but is curable, and (B) Tenant is in good faith diligently prosecuting such cure to completion) where, due to the nature of a default, it is unable to be completely cured within thirty (30) days); or (v) any execution or attachment shall be issued against Tenant or any of its property whereby the Premises shall be taken or occupied or attempted to be taken or occupied by someone other than Tenant, and the same shall not be bonded, dismissed, or discharged as promptly as possible under the circumstances; or (vi) Tenant (A) shall make any assignment or other act for the benefit of creditors, (B) shall file a petition or take any other action seeking relief  under any state or federal insolvency or bankruptcy Laws, or (C) shall have an involuntary petition or any other action filed against either of them under any state or federal insolvency or bankruptcy Laws which petition or other action is not vacated or dismissed within sixty (60) days after the commencement thereof; or (vii) the estate or interest of Tenant in the Premises shall be levied upon or attached in any proceeding and such estate or interest is about to be sold or transferred and such process shall not be vacated or discharged within sixty (60) days after such levy or attachment; or (ix) any material representation or warranty made by Tenant to Landlord or the Lender herein or in connection with Landlord’s purchase of the Premises or in any document delivered pursuant to this Lease is misleading or false when made.

 

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

 

(c)           If an Event of Default shall have occurred and be continuing, Landlord shall have the immediate right, whether or not the Term of this Lease shall have been terminated pursuant to Section 23(b) of this Part II, to re-enter and repossess the Premises and the right to remove all persons and property therefrom by summary proceedings, ejectment, any other legal action or in any lawful manner Landlord determines to be necessary or desirable.  Landlord shall be under no liability by reason of any such reentry, repossession or removal.  No such re-entry, repossession or removal shall be construed as an election by Landlord to terminate this Lease unless a notice of such termination is given to Tenant pursuant to Section 23(b) of this Part II.

 

  

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(d)           At any time or from time to time after a re-entry, repossession or removal pursuant to Section 23(c) of this Part II, whether or not the Term of this Lease shall have been terminated pursuant to Section 23(b) of this Part II, Landlord shall use commercially reasonable efforts to relet the Premises for the account of Tenant, in the name of Tenant or Landlord or otherwise, without notice to Tenant, for such term or terms and on such conditions and for such uses as Landlord may reasonably determine.  Landlord may collect any rents payable by reason of such reletting.

 

(e)           No expiration or termination of the Term of this Lease pursuant to Section 23(b) of this Part II, by operation of law or otherwise, and no re-entry, repossession or removal pursuant to Section 23(c) of this Part II or otherwise, and no reletting of the Premises pursuant to Section 23(d) of this Part II or otherwise, shall relieve Tenant of its liabilities and obligations hereunder, all of which shall survive such expiration, termination, re-entry, repossession, removal or reletting.

 

(f)           In the event of any expiration or termination of the Term of this Lease or re-entry or repossession of the Premises or removal of persons or property therefrom by reason of the occurrence of an Event of Default, Tenant shall pay to Landlord all Fixed Rent, Additional Rent and other sums required to be paid by Tenant, in each case together with interest thereon at the Lease Default Rate from the due date thereof to and including the date of such expiration, termination, re-entry, repossession or removal; and thereafter, Tenant shall, until the end of what would have been the Term of this Lease in the absence of such expiration, termination, re-entry, repossession or removal and whether or not the Premises shall have been relet, be liable to Landlord for, and shall pay to Landlord, as liquidated and agreed current damages: (i) all Fixed Rent, Additional Rent and other sums which would be payable under this Lease by Tenant in the absence of any such expiration, termination, re-entry, repossession or removal, less (ii) the net proceeds, if any, of any reletting effected for the account of Tenant pursuant to Section 23(d) of this Part II, after deducting from such proceeds all reasonable expenses of Landlord in connection with such reletting, including, without limitation, all repossession costs, brokerage commissions, reasonable attorneys’ fees and expenses (including, without limitation, fees and expenses of appellate proceedings), reasonable alteration costs and expenses of preparation for such reletting.  Tenant shall pay such liquidated and agreed current damages on the dates on which Fixed Rent would be payable under this Lease in the absence of such expiration, termination, re-entry, repossession or removal, and Landlord shall be entitled to recover the same from Tenant on each such date.

 

(g)           At any time after any such expiration or termination of the Term of this Lease or re-entry or repossession of the Premises or removal of persons or property thereon by reason of the occurrence of an Event of Default, whether or not Landlord shall have collected any liquidated and agreed current damages pursuant to Section 23(f) of this Part II, Landlord shall be entitled to recover from Tenant, and Tenant shall pay to Landlord on demand, as and for liquidated and agreed final damages for Tenant’s default and in lieu of all liquidated and agreed current damages beyond the date of such demand (it being agreed that it would be impracticable or extremely difficult to fix the actual damages), an amount equal to the sum of (i) the excess, if any of (A) the aggregate of all Fixed Rent which would be payable under this Lease, in each case from the date of such demand (or, if it be earlier, the date to which Tenant shall have satisfied in full its obligations under Section 23(f) of this Part II to pay liquidated and agreed current damages) for what would be the then-unexpired Term of this Lease in the absence of such expiration, termination, re-entry, repossession or removal, discounted at the rate equal to the then rate on U.S. Treasury obligations of comparable maturity to such Term (the “Treasury Rate”), but in no event greater than the non-default rate of interest for the Mortgage (such lower rate being referred to as the “Discount Rate”) over (B) the amount of such rental loss that could be reasonably avoided by commercially reasonable mitigation efforts by Landlord, discounted at the Discount Rate for the same period, plus (ii) any make-whole premium, prepayment premium or other amount due under the Loan as a result of an involuntary prepayment required by Lender due to the occurrence of such Event of Default, plus (iii) all reasonable legal fees and other actual out-of-pocket costs and expenses incurred by Landlord as a result of Tenant’s default under this Lease.  If any Law shall limit the amount of liquidated final damages to less than the amount above agreed upon, Landlord shall be entitled to the maximum amount allowable under such Law.

 

  

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Mention in this Lease of any particular remedy shall not preclude Landlord from any other remedy at law or in equity, including the right of injunction.  Tenant waives any rights of redemption granted by any Laws if Tenant is evicted or dispossessed, for any cause, or if Landlord obtains possession of the Premises by reason of the violation by Tenant of any of the  terms of this Lease.  After an Event of Default and a termination of this Lease by Landlord, Landlord shall exercise commercially reasonable efforts to mitigate its damages; provided, however, that Landlord shall in no event be responsible or liable for any failure to relet the Premises or any part thereof (other than a diminution in Landlord’s recovery of damages from Tenant due to a failure to use commercially reasonable efforts to relet), or for any failure to collect any rent due upon a reletting, except to the extent of Landlord’s obligations under law.

 

(h)           In addition to the foregoing remedies set forth in this Section 23 and all other remedies available at law or in equity, and regardless of whether or not a Event of Default has occurred under this Lease, if Tenant has failed to perform any of its duties, obligations, covenants or agreements under this Lease, Landlord may give notice to Tenant that it has failed to perform any such duty, obligation, covenant or agreement (herein called a “Notice of Breach”) and may, following the expiration of applicable cure periods, thereafter pursue any rights or remedies available to it at law or in equity including, without limitation, filing a suit for damages as a result of such breach or a suit for specific performance of any such duties, obligations, covenants or agreements.  Any Notice of Breach delivered under this Section 23(h) or any such rights or remedies pursued by Landlord shall not be deemed to be a notice of default under any provision of this Section 23 and shall not result, with or without the passage of time, in an Event of Default existing under this Lease; provided, that the delivery of any such Notice of Breach shall not limit Landlord’s right (which right will not be exercised without the consent of Lender so long as the Premises are subject to a Mortgage which requires Lender’s consent for the exercise thereof) to subsequently deliver notice (with respect to the same event or condition which is the subject of such Notice of Breach or any other event or condition) which will declare or, with the passage of time, result in an Event of Default hereunder.

 

LANDLORD ASSIGNMENT OF WARRANTIES -

 

24.           Landlord  assigns to Tenant, without recourse or warranty whatsoever, all warranties, guaranties and indemnities, express or implied, and similar rights which Landlord may have against any manufacturer, seller, engineer, contractor or builder with respect to the Premises, including, but not limited to, any rights and remedies existing under contract or pursuant to the Uniform Commercial Code (collectively, the “guaranties”).  Such assignment shall remain in effect during the Term. Landlord hereby agrees to execute and deliver at Tenant’s expense such further documents, including powers of attorney (which shall contain indemnity agreements from Tenant to Landlord which shall be in form reasonably satisfactory to Tenant), as Tenant may reasonably request in order that Tenant may have the full benefit of the assignment of guaranties effected or intended to be effected by this Article.  Upon the occurrence of a termination of this Lease, the guaranties shall automatically revert to Landlord.

 

  

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RENT PAYMENTS -

 

25.           If Landlord’s interest in this Lease shall pass to another, or if the Fixed Rent or Additional Rent hereunder shall be assigned, or if a party, other than Landlord, shall become entitled to collect the Fixed Rent or Additional Rent due hereunder, then notice thereof shall be given to Tenant by Landlord in writing, or, if Landlord is an individual and shall have died or become incapacitated, by Landlord’s legal representative, accompanied by due proof of the appointment of such legal representative; provided, that if Fixed Rent is then being paid to Lender, then notwithstanding such notice from Landlord, Tenant shall continue to pay Fixed Rent to Lender until it receives contrary notice from Lender. Until such notice and proof shall be received by Tenant, Tenant may continue to pay the rent due hereunder to the one to whom, and in the manner in which, the last preceding installment of rent hereunder was paid, and each such payment shall fully discharge Tenant with respect to such payment.

 

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

 

HOLDOVER -

 

26.           Any holding over by Tenant of the Premises after the expiration or earlier termination of the Term of this Lease or any extensions thereof, with the consent of Landlord, shall operate and be construed as tenancy from month to month only, at one hundred fifty percent (150%) of the Fixed Rent reserved herein and upon the same terms and conditions as contained in this Lease.  Notwithstanding the foregoing, any holding over without Landlord’s consent shall entitle Landlord, in addition to collecting Fixed Rent at a rate of one hundred fifty percent (150%) thereof, to exercise all rights and remedies provided by law or in equity, including the remedies of Section 23 of this Part II.

 

NOTICES -

 

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

 

  

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INDEMNITY -

 

28.           TENANT SHALL DEFEND LANDLORD AND ANY OF LANDLORD’S OWNERS, PARTNERS, TRUSTEES, BENEFICIAL OWNERS, MEMBERS, MANAGERS, EMPLOYEES, AGENTS, OFFICERS, DIRECTORS OR SHAREHOLDERS, TOGETHER WITH THE LENDER, AND ANY OWNER, PARTNER, MEMBER, MANAGER, TRUSTEE, BENEFICIAL OWNER, OFFICER, DIRECTOR, SHAREHOLDER, EMPLOYEE, AGENT OR CERTIFICATE HOLDER OF THE LENDER (HEREIN, COLLECTIVELY, “INDEMNIFIED PARTIES”) WITH RESPECT TO, AND SHALL PAY, PROTECT, INDEMNIFY AND HOLD HARMLESS THE INDEMNIFIED PARTIES FROM AND AGAINST, ANY AND ALL LIABILITIES, LOSSES, DAMAGES, PENALTIES, COSTS, EXPENSES (INCLUDING, WITHOUT LIMITATION, REASONABLE ATTORNEYS’ FEES AND EXPENSES), CAUSES OF ACTION, SUITS, CLAIMS, DEMANDS OR JUDGMENTS OF ANY NATURE WHATSOEVER, HOWEVER CAUSED, (A) TO WHICH ANY INDEMNIFIED PARTY IS SUBJECT BECAUSE OF LANDLORD’S ESTATE IN THE PREMISES OR (B) ARISING FROM (I) INJURY TO OR DEATH OF ANY PERSON OR PERSONS OR DAMAGE TO OR LOSS OF PROPERTY, REAL OR PERSONAL, IN ANY MANNER ARISING THEREFROM, OCCURRING ON THE PREMISES OR CONNECTED WITH THE USE, NON-USE, CONDITION, OCCUPANCY, DESIGN, CONSTRUCTION, MAINTENANCE, REPAIR OR REBUILDING OF ANY THEREOF, WHETHER OR NOT SUCH INDEMNIFIED PARTY HAS OR SHOULD HAVE KNOWLEDGE OR NOTICE OF THE DEFECT OR CONDITIONS, IF ANY, CAUSING OR CONTRIBUTING TO SAID INJURY, DEATH, LOSS, DAMAGE OR OTHER CLAIM, (II) TENANT’S  VIOLATION OF THIS LEASE, (III) ANY ACT OR OMISSION OF TENANT OR ITS AGENTS, CONTRACTORS, LICENSEES, SUBTENANTS OR INVITEES, AND (IV) ANY CONTEST REFERRED TO IN SECTION 31(B) OF THIS PART II; PROVIDED, THAT TENANT SHALL NOT BE REQUIRED TO INDEMNIFY, DEFEND OR HOLD HARMLESS ANY INDEMNIFIED PARTY FOR ANY SUCH MATTERS ARISING DUE TO THE EXTENT OF ANY GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNIFIED PARTY.  TENANT COVENANTS UPON NOTICE FROM SUCH INDEMNIFIED PARTY TO DEFEND SUCH INDEMNIFIED PARTY IN SUCH ACTION, WITH THE REASONABLE EXPENSES OF SUCH DEFENSE PAID BY TENANT; PROVIDED, THAT IN CONNECTION WITH TENANT’S OBLIGATIONS TO PROVIDE A DEFENSE OF THE INDEMNIFIED PARTIES HEREUNDER, TENANT SHALL BE ENTITLED TO USE THE SAME COUNSEL TO DEFEND SUCH INDEMNIFIED PARTIES SO LONG AS DEFENSE OF MULTIPLE PARTIES IS REASONABLE UNDER THE CIRCUMSTANCES AND SO LONG AS SUCH COMMON DEFENSE DOES NOT LIMIT ANY REASONABLE CLAIMS OR DEFENSES WHICH COULD BE RAISED BY ANY SUCH INDEMNIFIED PARTIES.  THE OBLIGATIONS OF TENANT UNDER THIS SECTION 28 OF THIS PART II SHALL SURVIVE ANY TERMINATION OF THIS LEASE.

 

  

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TENANT TO COMPLY WITH RECIPROCAL EASEMENT AGREEMENT -

 

29.           Tenant agrees to perform all obligations of Landlord and pay all expenses which Landlord or Tenant may be required to pay in accordance with, and to comply and cause the Premises to comply in all respects with all of the terms and conditions of, any reciprocal easement agreement or any other agreement or document of record now affecting the Premises or hereafter executed or filed with Tenant’s written consent (herein referred to collectively as the “REA”) during the Term.  TENANT SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS LANDLORD AND LENDER AND ALL OTHER INDEMNIFIED PARTIES FROM ANY CLAIM, LOSS OR DAMAGE SUFFERED BY LANDLORD OR LENDER OR SUCH INDEMNIFIED PARTIES BY REASON OF TENANT’S FAILURE TO PERFORM ANY OBLIGATIONS OR PAY ANY EXPENSES AS REQUIRED UNDER ANY REA OR COMPLY AND CAUSE THE PREMISES TO COMPLY WITH THE TERMS AND CONDITIONS OF ANY REA  DURING THE TERM.

 

OBLIGATIONS TO MODIFY EASEMENTS -

 

30.           Landlord agrees, and its Lender, by accepting an assignment of this Lease, agrees, upon request by Tenant (and only after all documentation required by Landlord to consummate the relevant transaction shall have been provided to Landlord), (i) to enter into or modify with Tenant, at Tenant’s expense, such easements, covenants, waivers, approvals or restrictions for utilities, parking or other matters as Tenant may desire for the operation of the Premises (collectively, “Easements”) or (ii) to dedicate or transfer, at Tenant’s expense,  minor non-essential unimproved portions of the Premises for road, highway or other public purposes to the extent such dedications or transfers are consistent with commercially reasonable development of the Premises (the “Dedications”); provided, that Landlord and Lender shall be obligated to take any such action only if (a) any such Easement or Dedication does not adversely affect the value of the Premises or unreasonably render the use of the Premises dependent upon any other property or unreasonably condition the use of the Premises upon the use of any other property, (b) any such Easement or Dedication does not materially impair Tenant’s use or operation of the Premises, (c)Tenant considers the consideration, if any, being paid for such Easement or Dedication to be fair and adequate, and all such consideration is paid to Landlord, and (d) for so long as this Lease is in effect, Tenant will perform all obligations, if any, of Landlord under the applicable instrument, all of which (items (a)-(d) above) Tenant shall certify to Lender and Landlord in writing (in the form of Schedule 3 to this Lease) at the time the request is made for such Easement or Dedication.  Tenant’s request shall also include (i) the authorized undertaking of Tenant, in form and substance reasonably satisfactory to Landlord, to the effect that Tenant will remain obligated hereunder to the same extent as if such Easement or Dedication had not been made, and (ii) such instruments, certificates, surveys, title insurance policy endorsements and opinions of counsel reasonably acceptable to Landlord or its Lender as Landlord or its Lender may reasonably request.

 

  

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TAXES -

 

31.           (j)           Subject to the provisions hereof relating to contests, Tenant shall pay and discharge, before any interest or penalties are due thereon, all of the following taxes, charges, assessments, ground rents, levies and other items (collectively, “tax” or “taxes”), even if unforeseen or extraordinary, which are imposed or assessed prior to the Lease Commencement Date or on or subsequent to the Lease Commencement Date during the Term, regardless of whether payment thereof is due prior to, during or after the Term: all taxes of every kind and nature (including, without limitation, real, ad valorem and personal property), on or with respect to the Premises (including, without limitation, any taxes assessed against Landlord’s reversionary estate in the Premises or against any real property other than the Premises which is included within the tax parcel which includes the Premises), the Fixed Rent or Additional Rent payable hereunder, this Lease or the leasehold estate created hereby; all charges and/or assessments for any easement or agreement maintained for the benefit of the Premises; all ground rents on or with respect to the Premises; and all general and special assessments, levies,  water and sewer assessments and other utility charges, use charges and rents and all other public charges and/or taxes whether of a like or different nature.  Landlord shall promptly deliver to Tenant any bill or invoice Landlord receives with respect to any tax.  Landlord agrees to cooperate with Tenant to enable Tenant to receive tax bills directly from the respective taxing authorities.  Nothing herein shall obligate Tenant to pay, and the term “taxes” shall exclude (unless the taxes referred to in clauses (i) and (ii) below are in lieu of or a substitute for any other tax or assessment upon or with respect to any of the Premises which, if such other tax or assessment were in effect on the Lease Commencement Date, would be payable by Tenant hereunder or by Law), federal, state or local (i) franchise, capital stock or similar taxes, if any, of Landlord, (ii) income, excess profits or other taxes, if any, of Landlord, determined on the basis of or measured by Landlord’s net income, (iii) any estate, inheritance, succession, gift, capital levy or similar taxes of Landlord, (iv) taxes imposed upon Landlord under Section 59A of the Internal Revenue Code of 1986, as amended, or any similar state, local, foreign or successor provision, (v) any amounts paid by Landlord pursuant to the Federal Insurance Contribution Act (commonly referred to as FICA), the Federal Unemployment Tax Act (commonly referred to as FUTA), or any analogous state unemployment tax act, or any other payroll related taxes, including, but not limited to, any required withholdings relating to wages, (vi) any taxes in connection with the transfer or other disposition of any interest, other than Tenant’s (or any person claiming under Tenant), in the Premises or this Lease, to any person or entity, including, but not limited to, any transfer, capital gains, sales, gross receipts, value added, income, stamp, real property gains or withholding tax, and (vii) any interest, penalties, professional fees or other charges relating to any item listed in clauses (i) through (vi) above; provided, further, that Tenant is not responsible for making any additional payments in excess of amounts which would have otherwise been due, as tax or otherwise, but for a withholding requirement which relates to the particular payment and such withholding is in respect to or in lieu of a tax which Tenant is not obligated to pay; and provided, further, that if at any time during the Term of this Lease, the method of taxation shall be such that there shall be assessed, levied, charged or imposed on Landlord a tax upon the value of the Premises or any present or future improvement or improvements on the Premises, including any tax which uses rents received from Tenant as a means to derive value of the property subject to such tax, then all such levies and taxes or the part thereof so measured or based shall be payable by Tenant, but only to the extent that such levies or taxes would be payable if the Premises were the only property of Landlord, and Tenant shall pay and discharge the same as herein provided.  In the event that any assessment against the Premises is payable in installments, Tenant may pay such assessment in installments; and in such event, Tenant shall be liable only for those installments which become due and payable prior to or during the Term, or which are appropriately allocated to the Term even if due and payable after the Term.  Notwithstanding anything to the contrary stated in this Section 31(a) of Part II, if, during the last twenty-four (24) months of the last Extension Period of this Lease (i.e., Lease years 63-65), the terms of this Lease require Tenant to pay for a special assessment in connection with a Capital Improvement (as defined at Section 9(d) of Part II) performed by the applicable governmental authority, the cost of such special assessment shall be amortized over the useful life of such Capital Improvement (based on engineering specifications, or if such engineering specifications are not available, based on the mutual agreement of Landlord or Tenant) and Landlord shall reimburse Tenant for the unamortized portion of such special assessment that extends beyond the expiration of such final Extension Period.

 

  

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(b)           After prior written notice to Landlord, at Tenant’s sole cost, Tenant may contest (including seeking an abatement or reduction of) in good faith any taxes agreed to be paid hereunder; provided, that (i) Tenant first shall satisfy any Legal Requirements, including, if required, that the taxes be paid in full before being contested, (ii) no Event of Default has occurred and is continuing, and (iii) failing to pay such taxes will not subject Landlord or Lender to criminal or civil penalties or fines or to prosecution for a crime, or result in the sale, forfeiture or loss of any portion of the Premises, the Fixed Rent or any Additional Rent.  Tenant agrees that each such contest shall be promptly and diligently prosecuted to a final conclusion, except that Tenant shall have the right to attempt to settle or compromise such contest through negotiations. Tenant shall pay and save Landlord and Lender and all other Indemnified Parties harmless against any and all losses, judgments, decrees and costs (including, without limitation, all reasonable attorneys’ fees and expenses) in connection with any such contest and shall promptly, after the final determination of such contest, fully pay and discharge the amounts which shall be levied, assessed, charged or imposed or be determined to be payable therein or in connection therewith, together with all penalties, fines, interest, costs and expenses thereof or in connection therewith, and perform all acts the performance of which shall be ordered or decreed as a result thereof.  At Tenant’s sole cost,  Landlord shall assist Tenant as  reasonably necessary  with respect to any such contest, including joining in and signing applications or pleadings.  Any rebate applicable to any portion of the Term shall belong to Tenant.

 

INSURANCE -

 

32.           (k)           Tenant shall maintain insurance including at a minimum perils commonly referred to as “Special Form” for the Building for one hundred percent (100%) of its replacement value.  Said policy shall not exclude flood coverage if the Premises  is located in a Flood Zone, and shall not exclude earthquake coverage.

 

(b)           Tenant also shall maintain Commercial General Liability Form CG0001 insurance, on an occurrence basis; in combined policy limits of not less than Five Million and No/100 Dollars ($5,000,000.00) per occurrence for bodily injury and for property damage with respect to the Premises.

 

(c)           Worker’s compensation insurance covering all persons employed by Tenant on the Premises in connection with any work done on or about any of the Premises.

 

  

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(d)           During periods of war or national emergency, war risk insurance in an amount not less than the actual replacement cost of the Building and equipment (excluding footings and foundations and other parts of the Building which are not insurable), when and to the extent obtainable from the United States Government or an agency thereof at commercially reasonable cost.

 

(e)           Equipment Breakdown (aka Boiler and Machinery) insurance against loss or damage from explosion of any steam or pressure boilers or similar apparatus located in or about the Building in an amount not less than the actual replacement cost of the Building and equipment (excluding footings and foundations and other parts of the Building which are not insurable).

 

(f)           Insurance coverage against loss or damage to persons and property by reason of any act of terrorism, to the extent such coverage is commercially available at commercially reasonable rates.

 

(g)           Such additional and/or other insurance with respect to the Building as requested by Landlord or Lender and in such amounts as at the time is customarily carried by prudent owners or tenants with respect to improvements similar in character, location and use and occupancy to the Building.

 

(h)           At all times when any construction is in progress, Tenant shall maintain or cause to be maintained by its contractors and subcontractors with such companies reasonably approved by Landlord, builder’s risk insurance, completed value form, covering all loss specified in the “Special Form” policy, in an amount reasonably satisfactory to Landlord.

 

(i)           Any insurance maintained by Tenant pursuant to this Section 32 shall name Landlord and Lender as additional insured parties and/or as loss payees, as appropriate, as their respective interests may appear.

 

(j)           All proceeds received from such “Special Form” and/or builder’s risk insurance shall be used in the first instance in accordance with Tenant’s obligations under Section 13 hereof and any surplus shall be retained by Tenant.

 

(k)           Intentionally Omitted.

 

(l)           Tenant may carry such “Special Form” and/or Commercial General Liability insurance through blanket insurance covering the Premises and other locations of Tenant and/or of Tenant’s affiliates, provided that such blanket insurance policy specifically designates the Premises and allocates specific coverage limits to the Premises as required hereunder, which shall not be reduced by claims as to other property covered by such blanket policy; and Tenant may maintain the required limits in the form of excess and/or umbrella policies, provided that the other requirements set forth herein have been satisfied.

 

(m)           All insurance coverage required to be carried hereunder shall be carried with insurance companies licensed to do business in the state in which the Premises is located and which have a claims paying ability rating of "A" or better by Standard & Poor's Corporation or a rating of "A:VII" or better in the current Best's Insurance Reports (the "Insurance Rating Requirement").  Notwithstanding the foregoing, the insurance coverage requirements provided in the immediately preceding sentence may be satisfied by Harleysville Mutual Insurance Company; provided that Tenant obtains a "cut through" endorsement, in a form acceptable to Lender, from a re-insurance company that satisfies the Insurance Rating Requirement.  All insurance coverage required to be carried hereunder shall require the insured’s insurance carrier to notify Landlord and Lender at least thirty (30) days prior to any cancellation or material modification of such insurance.  The insurance policies shall be in amounts sufficient at all times to satisfy any coinsurance requirements thereof.  If said insurance or part thereof shall expire, be withdrawn, become void by breach of any condition thereof by Tenant or become void or unsafe by reason of the failure or impairment of the capital of any insurer, Tenant shall immediately obtain new or additional insurance reasonably satisfactory to Landlord and Lender.

 

  

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(n)           During such time as (i) no Event of Default has occurred and is continuing, (ii) the tangible net worth of Tenant, as determined in accordance with generally accepted accounting principles consistently applied, shall be not less than the product of (A) Two Hundred Million and No/100 Dollars ($200,000,000.00) times (B) the CPI Factor, and (iii) Tenant's long-term unsecured debt is rated at least “A-” by S&P and “A2 “ by Moody’s, OR Tenant maintains a designation of NAIC II or better as rated by the National Association of Insurance Commissioners ("NAIC") (unless required by the Securities Evaluation Office of the NAIC to be a rating of NAIC I with the respect to the continued treatment of this Lease as a credit tenant lease, in which event Tenant must maintain a designation of NAIC I), Tenant may self-insure the coverage referred to in this Section 32, provided that such self insurance program does not violate any Laws.  Tenant shall provide Landlord with annual certificates indicating its decision to self-insure hereunder.

 

(o)           Each insurance policy referred to above shall, to the extent applicable, contain standard non-contributory mortgagee clauses in favor of Lender and shall provide that it may not be canceled except after thirty (30) days prior notice to Landlord and Lender and that any loss otherwise payable thereunder shall be payable notwithstanding (i) any act or omission of Landlord or Tenant which might, absent such provision, result in a forfeiture of all or a part of such insurance payment, (ii) the occupation or use of any of the Premises for purposes more hazardous than permitted by the provisions of such policy, (iii) any foreclosure or other action or proceeding taken by any Lender pursuant to any provision of the Mortgage upon the happening of an event of default therein, or (iv) any change in title or ownership of any of the Premises. Each insurance policy shall also provide evidence of such insurance to Landlord and any Lender on an ACORD 27 form for property and ACORD 25 form for liability or equivalent; provided, that in the event that such form is no longer available, such evidence of insurance is in a form reasonably satisfactory to Landlord and Lender. Any insurance policy may be written with a deductible of not more than Five Hundred Thousand and No/100 Dollars ($500,000.00); provided, that unless the long-term unsecured debt of Tenant is rated BBB or better by S&P and Baa3 or better by Moody’s, said deductible amounts may not exceed Three Hundred Fifty Thousand and No/100 Dollars ($350,000.00).

 

(p)           Tenant shall pay all premiums for the insurance required by this Section 32 as they become due, and shall renew or replace each policy, and shall deliver to Landlord and Lender a certificate or other evidence of the then existing policy and each renewal or replacement policy, not less than five (5) days prior to the expiration of such policy (together with a certificate of a responsible officer of Tenant that the insurance maintained by Tenant with respect to the Premises is in compliance with the requirements of this Section 32 of Part II of this Lease).  In the event of Tenant’s failure to comply with any of the foregoing requirements, Landlord shall be entitled to procure such insurance after ten (10) days notice, or upon expiration of the current insurance coverage.  Any sums so expended by Landlord, together with interest thereon from the date paid at the Lease Default Rate, shall be Additional Rent and shall be repaid by Tenant to Landlord, if accompanied by an invoice or other supporting documentation, immediately upon delivery of written demand therefor by Landlord.

 

  

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LANDLORD EXCULPATION -

 

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

 

LANDLORD’S TITLE -

 

34.           The Premises are demised and let subject to the Permitted Encumbrances without representation or warranty by Landlord.  The recital of the Permitted Encumbrances herein shall not be construed as a revival of any Permitted Encumbrance which has expired.

 

QUIET ENJOYMENT -

 

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

 

EQUAL EMPLOYMENT OPPORTUNITY -

 

36.           Tenant is an equal employment opportunity employer and is a federal contractor.  Consequently, the parties agree that they will comply with Executive Order 11246, the Vietnam Era Veterans’ Readjustment Assistance Act of 1974 and the Vocational Rehabilitation Act of 1973, if applicable, and also that these Laws are incorporated herein by this reference.

 

The parties also agree that they will not discriminate against any employee or applicant for employment because of race, color, religion, sex, national origin, age, or any other characteristic protected by federal, state or local Law.

 

BROKER -

 

37.           Landlord and Tenant each represent and warrant that it has had no dealings or conversations with any real estate broker in connection with the negotiation and execution of this Lease.  LANDLORD AND TENANT EACH AGREE TO DEFEND, INDEMNIFY AND HOLD HARMLESS THE OTHER AGAINST ALL LIABILITIES ARISING FROM ANY CLAIM OF ANY REAL ESTATE BROKERS, INCLUDING COST OF COUNSEL FEES, RESULTING FROM THEIR RESPECTIVE ACTS.

 

  

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TRANSFER OF TITLE -

 

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

 

SPECIALLY DESIGNATED NATIONALS; BLOCKED PERSONS; EMBARGOED PERSONS -

 

39.           Tenant represents and warrants to Landlord that (A) Tenant and each person or entity directly or indirectly owning an interest in Tenant is (i) not currently identified on the Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Assets Control of the Department of the Treasury (“OFAC”) and/or on any other similar list maintained by OFAC pursuant to any authorizing statute, executive order or regulation (collectively, the “List”), and (ii) not a person or entity with whom a citizen of the United States is prohibited to engage in transactions by any trade embargo, economic sanction, or other prohibition of United States law, regulation, or Executive Order of the President of the United States, (B) none of the funds or other assets of Tenant constitute property of, or are beneficially owned, directly or indirectly, by, any Embargoed Person, (C) no Embargoed Person has any interest of any nature whatsoever in Tenant (whether directly or indirectly), (D) none of the funds of Tenant have been derived from any unlawful activity with the result that the investment in Tenant is prohibited by law or that the Lease is in violation of law, and (E) Tenant has implemented procedures, and will consistently apply those procedures, to ensure the foregoing representations and warranties remain true and correct at all times.  The term “Embargoed Person” means any person, entity or government subject to trade restrictions under U.S. law, including but not limited to, the International Emergency Economic Powers Act, 50 U.S.C. §1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated thereunder with the result that the investment in Tenant is prohibited by law or Tenant is in violation of law.

 

Tenant covenants and agrees (A) to comply with all requirements of law relating to money laundering, anti-terrorism, trade embargos and economic sanctions, now or hereafter in effect, (B) to immediately notify Landlord in writing if any of the representations, warranties or covenants set forth in this paragraph or the preceding paragraph are no longer true or have been breached or if Tenant has a reasonable basis to believe that they may no longer be true or have been breached, (C) not to use funds from any “Prohibited Person” (as such term is defined in the September 24, 2001 Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism) to make any payment due to Landlord under the Lease and (D) at the request of Landlord, to provide such information as may be requested by Landlord to determine Tenant’s compliance with the terms hereof.

 

  

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Tenant each hereby acknowledges and agrees that Tenant’s inclusion on the List at any time during the Term shall be an Event of Default.  Notwithstanding anything herein to the contrary, Tenant shall not permit the Premises or any portion thereof to be used or occupied by any person or entity on the List or by any Embargoed Person (on a permanent, temporary or transient basis), and any such use or occupancy of the Premises by any such person or entity shall be a material default of the Lease.

 

HAZARDOUS MATERIALS -

 

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

 

(b)           Tenant represents and warrants to Landlord and Lender that, except as disclosed in the environmental reports listed on Exhibit E hereto, (i) neither the Premises, nor any portion thereof, to the best of Tenant’s knowledge without inquiry or investigation, has been used by Tenant or by any prior owner for the generation, manufacture, storage, handling, transfer, treatment, recycling, transportation, processing, production, refinement or disposal (each, a “Regulated Activity”) of any Hazardous Materials in violation of Environmental Laws; and (ii) to the best of Tenant’s knowledge, there are no Hazardous Materials present on, in or under the Premises or any portion thereof except to the extent expressly permitted by the terms of this Section 40(b).  Tenant covenants it (i) will comply, and will cause the Premises to comply, with all Environmental Laws applicable to the Premises, (ii) will not use, and shall prohibit the use of the Premises for Regulated Activities or for the storage, handling or disposal of Hazardous Materials (other than in connection with the operation and maintenance of the Premises and in commercially reasonable quantities as a consumer thereof, subject to compliance with applicable Laws), (iii) (A) will not install or permit the installation on the Premises of any underground storage tanks or surface impoundments and shall not permit there to exist any petroleum contamination in violation of applicable Environmental Laws originating on the Premises, and (B) with respect to any petroleum contamination on the Premises which originates from a source off the Premises, Tenant shall notify all responsible third parties and appropriate government agencies (collectively, “Third Parties”) and shall prosecute the cleanup of the Premises by such Third Parties, including, without limitation, undertaking legal action, if necessary, to enforce the cleanup obligations of such Third Parties and, to the extent not done so by such Third Parties and to the extent technically feasible and commercially practicable, Tenant shall remediate such petroleum contamination, and (iv) shall cause any alterations of the Premises to be done in a way which complies with applicable Laws relating to exposure of persons working on or visiting the Premises to Hazardous Materials and, in connection with any such alterations, shall remove any Hazardous Materials present upon the Premises which are not in compliance with applicable Environmental Laws or which present a danger to persons working on or visiting the Premises.  Additionally, Landlord agrees that Tenant may use household and commercial cleaners and chemicals to maintain the Premises, provided that such use is in compliance with Environmental Laws.  Landlord and Tenant acknowledge that any or all of the cleaners and chemicals described in this paragraph may constitute Hazardous Materials.  For the purposes of subdivisions (c) and (d) of this Article, the term “Hazardous Materials” shall exclude the Hazardous Materials used as permitted in this paragraph.

 

  

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(c)           If, at any time during the Term, Hazardous Materials shall be found, under, in or on the Premises, then Tenant shall (at Tenant’s sole expense), or shall cause such responsible Third Parties to, promptly commence and diligently prosecute to completion all investigation, site monitoring, containment, cleanup, removal, restoration or other remedial work of any kind or nature (collectively, “Remedial Work”) to the extent required by Environmental Laws, and in compliance with Environmental Laws, and at Tenant’s sole cost; provided, that Landlord shall not be required to accept any institutional control (such as a deed restriction) that restricts the permitted use of the Premises or any real property as a condition to any remedial plan approved by any governmental agency in connection with such Remedial Work.

 

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

 

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

 

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

 

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

 

  

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(iv)           the discovery of any occurrence or condition on the Premises, of which Tenant becomes aware and which is not corrected within fifteen (15) days, which reasonably could be expected to lead to the Premises or any portion thereof being in violation of any Environmental Laws or subject to any restriction on ownership, occupancy, transferability or use under any Environmental Laws or which might subject Landlord or Lender to any Environmental Claim.  “Environmental Claim” means any claim, action, investigation or written notice by any person alleging potential liability (including, without limitation, potential liability for investigatory costs, cleanup costs, governmental response costs, natural resource damages, property damages, personal injuries or penalties) arising out of, based on or resulting from (A) the presence, or release into the environment, of any Hazardous Materials at the Premises, or (B) circumstances forming the basis of any violation, or alleged violation, of any Environmental Law; and

 

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

 

(e)           TENANT SHALL BE SOLELY RESPONSIBLE FOR AND SHALL DEFEND, REIMBURSE, INDEMNIFY AND HOLD EACH INDEMNIFIED PARTY HARMLESS FROM AND AGAINST ALL DEMANDS, CLAIMS, ACTIONS, CAUSES OF ACTION, ASSESSMENTS, LOSSES, DAMAGES, LIABILITIES, INVESTIGATIONS, OR WRITTEN NOTICES INCLUDING COSTS AND EXPENSES OF ANY KIND (INCLUDING, WITHOUT LIMITATION, DIMINUTION IN PROPERTY VALUE AND REASONABLE EXPENSES OF INVESTIGATION BY ENGINEERS, ENVIRONMENTAL CONSULTANTS AND SIMILAR TECHNICAL PERSONNEL AND REASONABLE FEES AND DISBURSEMENTS OF COUNSEL), ARISING OUT OF, IN RESPECT OF OR IN CONNECTION WITH (I) TENANT’S BREACH OF ITS REPRESENTATIONS, WARRANTIES, COVENANTS OR OBLIGATIONS IN THIS LEASE, (II) THE OCCURRENCE OF ANY REGULATED ACTIVITY AT, ON OR UNDER THE PREMISES AT ANY TIME (i) DURING THE TERM OF THIS LEASE, OR (ii) TO THE EXTENT CAUSED BY TENANT, ITS AGENTS, EMPLOYEES, OR CONTRACTORS, PRIOR TO THE TERM OF THIS LEASE, (III) ANY ENVIRONMENTAL CLAIM WITH RESPECT TO THE PREMISES AGAINST ANY INDEMNIFIED PARTY OR ANY PERSON WHOSE LIABILITY FOR SUCH ENVIRONMENTAL CLAIM LANDLORD OR TENANT HAS OR MAY HAVE ASSUMED OR RETAINED EITHER CONTRACTUALLY OR BY OPERATION OF LAW (PROVIDED, THAT, EXCEPT FOR LIABILITIES OF LANDLORD ASSUMED OR RETAINED BY OPERATION OF LAW, WITHOUT THE CONSENT OF TENANT NO ENVIRONMENTAL LIABILITY CONTRACTUALLY ASSUMED OR CONTRACTUALLY RETAINED BY LANDLORD SHALL INCREASE THE LIABILITY OF TENANT UNDER THIS SECTION 40(e) IN EXCESS OF THAT LIABILITY OF TENANT OTHERWISE EXPRESSLY PROVIDED HEREUNDER), (IV) THE RELEASE, THREATENED RELEASE OR PRESENCE OF ANY HAZARDOUS MATERIALS AT, ON OR UNDER THE PREMISES, REGARDLESS OF HOW DISCOVERED BY TENANT, LANDLORD OR ANY THIRD PARTY, EXCEPT TO THE EXTENT THAT SUCH RELEASE, THREATENED RELEASE OR PRESENCE OCCURRED SOLELY SUBSEQUENT TO THE TERM OF THIS LEASE (PROVIDED, THAT, IF AT THE END OF THE TERM OF THIS LEASE, TENANT SHALL PROVIDE TO LANDLORD AN ENVIRONMENTAL ASSESSMENT OF THE PREMISES DATED NOT EARLIER THAN THE LAST DAY OF THE TERM OF THIS LEASE AND PREPARED BY A CONSULTANT REASONABLY ACCEPTABLE TO LANDLORD AND LENDER WHICH CONCLUDES THAT NO RECOGNIZED ENVIRONMENTAL CONDITIONS EXIST ON THE PREMISES AND, WITH RESPECT TO ANY PREVIOUSLY IDENTIFIED RECOGNIZED ENVIRONMENTAL CONDITIONS, WHICH EVIDENCES APPROPRIATE INVESTIGATION AND, IF NECESSARY, REMEDIATION OF ALL SUCH ENVIRONMENTAL CONDITIONS, THEN THIS SUBPART (IV) SHALL BE DEEMED TO READ AS FOLLOWS: “THE RELEASE, THREATENED RELEASE OR PRESENCE OF ANY HAZARDOUS MATERIALS AT, ON OR UNDER THE PREMISES AT ANY TIME DURING THE TERM OF THIS LEASE REGARDLESS OF HOW DISCOVERED BY TENANT, LANDLORD OR ANY THIRD PARTY”), (V) ANY REMEDIAL WORK REQUIRED TO BE PERFORMED PURSUANT TO ANY ENVIRONMENTAL LAW OR THE TERMS HEREOF WITH RESPECT TO MATTERS ARISING OR OCCURRING PRIOR TO OR DURING THE TERM, OR (VI) ANY MATTERS ARISING UNDER OR RELATING TO ANY ENVIRONMENTAL LAW AND RELATING TO TENANT OR THE PREMISES.

 

  

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(f)           Upon Landlord’s request, at any time after the occurrence and during the continuation of an Event of Default hereunder or at such other time as Landlord has reasonable grounds to believe that Hazardous Materials (except to the extent those substances are permitted to be used by Tenant under Section 40(b) of this Part II in the ordinary course of its business and in compliance with all Environmental Laws) are or have been released, stored or disposed of on or around the Premises or that the Premises may be in violation of the Environmental Laws, Tenant shall provide, at Tenant’s sole cost and expense, an inspection or audit of the Premises prepared by a hydrogeologist or environmental engineer or other appropriate consultant approved by Landlord and Lender indicating the presence or absence of the reasonably suspected Hazardous Materials on the Premises or an inspection or audit of the Premises prepared by an engineering or consulting firm approved by Landlord and Lender indicating the presence or absence of friable asbestos or substances containing asbestos on the Premises.  If Tenant fails to provide such inspection or audit within forty-five (45) days after such request, Landlord may order the same, and Tenant hereby grants to Landlord and Lender and their respective employees and agents access to the Premises upon reasonable notice and a license to undertake such inspection or audit.  The cost of such inspection or audit, together with interest thereon at the Lease Default Rate from the date Tenant is provided with written confirmation of costs incurred by Landlord until actually paid by Tenant, shall be immediately paid by Tenant on demand.

 

(g)           Without limiting the foregoing, where recommended by the Environmental Reports listed on Exhibit E hereto and/or any other “Phase I” or “Phase II” assessment and where the particular conditions on the Premises which formed the basis for such recommendation still exist, Tenant shall establish and comply with an operations and maintenance program relative to the Premises, in form and substance acceptable to Landlord and Lender, prepared by an environmental consultant reasonably acceptable to Landlord and Lender, which program shall address any Hazardous Materials (including, without limitation, asbestos containing material or lead based paint) that may now or in the future be detected on the Premises.  Without limiting the generality of the preceding sentence, Landlord may require (i) periodic notices or reports to Landlord and Lender in form, substance and at such intervals as Landlord may specify to address matters raised in the Environmental Reports and/or a “Phase I” or “Phase II” assessment, (ii) an amendment to such operations and maintenance program to address changing circumstances, laws or other matters, (iii) at Tenant’s sole cost and expense, supplemental examination of the Premises by consultants reasonably acceptable to Landlord and Lender to address matters raised in the Environmental Reports listed on Exhibit E hereto and/or a “Phase I” or “Phase II” assessment, (iv) access to the Premises upon reasonable notice, by Landlord or Lender, and their respective agents or servicer, to review and assess the environmental condition of the Premises and Tenant’s compliance with any operations and maintenance program, and (v) variation of the operation and maintenance program in response to the reports provided by any such consultants.  Tenant acknowledges the existence of a well and/or septic system located on the Premises (such system, the “Well/Septic System”).  In addition to Tenant’s maintenance, repair and compliance obligations stated elsewhere in this Lease, Tenant shall be responsible for the maintenance, repair and replacement of the Well/Septic System, and Tenant shall indemnify, defend and hold Landlord harmless in connection with any liability arising in connection with the failure of the Well/Septic System or for the breach of Tenant’s maintenance, repair and replacement obligations hereunder.  In addition to the foregoing, Tenant shall file a well water test with the appropriate governmental agency(s) and supply Landlord with a copy of such tests at the frequency required by such relevant governmental agency(s).

 

  

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(h)           The indemnity obligations of Tenant and the rights and remedies of Landlord under this Section 40 shall survive the termination of this Lease.

 

WAIVER OF LANDLORD’S LIEN -

 

41.           Landlord hereby waives any right to distrain trade fixtures, inventory and other personal property of Tenant and any Landlord’s lien or similar lien upon trade fixtures, inventory and any other personal property of Tenant regardless of whether such lien is created or otherwise. At the request of Tenant,  Landlord shall execute a waiver of any Landlord’s or similar lien for the benefit of any  holder of a security interest in or lessor of any of trade fixtures, inventory or any other personal property of Tenant. Landlord  agrees to acknowledge (in a written form reasonably satisfactory to Tenant) to such persons and entities at such times and for such purposes as Tenant may reasonably request that trade fixtures owned by Tenant are Tenant’s property and not part of the Building (regardless of whether or to what extent trade fixtures and/or other personal property are affixed to the Building) or otherwise subject to the terms of this Lease.

 

ESTOPPEL CERTIFICATE -

 

42.           Landlord and Tenant agree to deliver to each other, from time to time as reasonably requested in writing, and within ten (10) days after receipt of such request, an estoppel certificate, addressed to such persons and entities as the requesting party may reasonably request, certifying that this Lease is unmodified and in full force and effect (or if there have been modifications, that the Lease is in full force and effect as modified and stating the modifications), the dates to which any Fixed Rent due hereunder has been paid in advance, if any, and that to the knowledge of the signer of such certificate, no default hereunder by either Landlord or Tenant exists hereunder (or specifying each such default to which this signer may have knowledge), together with such other information as Landlord or Tenant may reasonably require with respect to the status of the Lease and Tenant’s use and occupancy of the Premises.

 

  

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NOTICE OF LEASE -

 

43.           Upon the request of either party hereto, Landlord and Tenant agree to execute a short form Notice of Lease or Memorandum of Lease in recordable form, setting forth information regarding this Lease, including, without limitation, if available, the dates of commencement and expiration of the Term.

 

MISCELLANEOUS -

 

44.           (a)           This Lease shall be governed and construed in accordance with the Laws of the Commonwealth of Pennsylvania.

 

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

 

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

 

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

 

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

 

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

 

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

 

(h)           This Lease and the referenced schedules and exhibits set forth the entire agreement between the parties hereto and may not be amended, changed or terminated orally or by any agreement unless such agreement shall be in writing and signed by Tenant and Landlord and approved in writing by the Lender.  Landlord and Tenant further agree that this Lease shall not be amended unless all guarantors of Tenant’s obligations under this Lease, remain liable for all of Tenant’s obligations under this Lease notwithstanding such amendment.

 

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

 

  

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

 

(k)           When the context in which words are used in this Lease indicates that such is the intent, words in the singular number shall include the plural and vice versa, and words in the masculine gender shall include the feminine and neuter genders and vice versa.  Further, references to “person” or “persons” in this Lease shall mean and include any natural person and any corporation, partnership, joint venture, limited liability company, trust or other entity whatsoever.

 

(l)           All references to “business days” contained herein are references to normal working business days, i.e., Monday through Friday of each calendar week, exclusive of federal and national bank holidays.

 

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

 

SUBSTITUTION -

 

45.           If, in the opinion of the board of directors of Tenant, the Premises is economically obsolete and, as a result, Tenant will abandon the Premises for a period of five (5) years or more, then Tenant may elect to make an irrevocable written offer (“Exchange Offer”) to convey to Landlord, in exchange for Landlord’s interest in the Premises, a Substitute Premises (as hereinafter defined), and lease such Substitute Premises from Landlord on the same terms and conditions as specified under this Lease (a "Substitution"); provided, that, the terms and conditions of this Section 45 of Part II are fully satisfied.

 

  

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(a)           If Tenant makes an Exchange Offer as provided above, Tenant shall provide Landlord and Lender or cause Landlord and Lender to be provided with such information (“Landlord’s Due Diligence Information”) relating to title, environmental issues, zoning matters, real estate taxes, insurance, and existing legal violations relating to the Substitute Premises, as Landlord and Lender shall reasonably require, which information shall include, without limitation, a binding commitment or a pro forma policy from Chicago Title Insurance Company (or another national title insurance company reasonably acceptable to Landlord and Lender), in either case obligating such title insurance company to issue an Owner's and a Lender's ALTA title insurance policy (naming Landlord and Lender as the insured) in respect to the Substitute Premises and containing such endorsements and affirmative coverages generally similar to (but no less comprehensive than) those contained in the policy for the original Premises, an as-built survey with a surveyor’s certification containing the level of detail required by the ALTA/ASCM 2005 standards, an insurance certificate for the Substitute Premises meeting the requirements contained in this Lease, a Phase I environmental assessment (not more than forty-five (45) days old at the date of substitution) conducted by a qualified environmental professional or firm (reasonably satisfactory to Landlord and Lender) indicating that there are no existing violations of Environmental Laws with respect to the Substitute Premises, an engineering report on the Substitute Premises, an appraisal of the Substitute Premises (by an appraiser satisfactory to Landlord and Lender) reflecting a fair market value not less than the fair market value of the original Premises at the commencement of the Lease, a permanent certificate of occupancy relating to the Substitute Premises and such other diligence information as Landlord and Lender shall reasonably require. All of the Landlord’s Due Diligence Information shall be provided to Lender and Landlord within ten (10) business days after the giving of the Exchange Offer notice to Landlord. The preparation and obtaining of the Landlord’s Due Diligence Information shall be at Tenant’s sole cost and expense and Tenant shall be responsible for paying all reasonable costs of Lender’s and Landlord’s counsel, Lender’s servicing agent, the rating agencies, environmental engineer and appraiser incurred in connection with evaluating the Exchange Offer. To the extent such Due Diligence Information shows that the Substitute Premises is of the same or greater value, quality, marketability and condition as the Premises, Landlord shall within twenty (20) business days after Landlord receives all Landlord’s Due Diligence Information, deliver to Tenant a written notice of its election to accept such Exchange Offer.  Notwithstanding the foregoing sentence, so long as the Loan encumbers the Premises, no acceptance by Landlord of an Exchange Offer shall be effective unless (i) Lender shall have consented in writing to such Exchange Offer, and (ii) in the event that any certificates or securities issued with respect to the Loan shall have been rated by S&P, Moody’s or any other rating agency, then such rating agencies shall have confirmed in writing that the substitution of the Substitute Premises for the Premises will not result in the downgrade, withdrawal or qualification of the rating of the certificates or securities evidencing such indebtedness and all costs of obtaining such information shall be paid by Tenant. In the event of an acceptance of such Exchange Offer (and consent of Lender, as applicable), such acceptance shall be deemed conditional upon the satisfaction of the following conditions within thirty (30) days from the date of Landlord’s acceptance of such Exchange Offer: (i) Tenant shall convey or cause to be conveyed title to the Substitute Premises to Landlord; (ii) Lender shall approve any modification of the Mortgage and such other of the Loan Documents as shall be necessary in order to (A) release the Premises from the lien of the Mortgage and from being encumbered by any of the other loan documents, (B) spread the lien of the Mortgage and any of the other applicable loan documents so as to encumber the Substitute Premises as a first lien, and (C) cause all of the applicable provisions in the loan documents to cease to relate to the Premises (e.g., by partial release of any Mortgage), but instead to relate to the Substitute Premises, as if the Lease shall have demised the Substitute Premises at the time the Loan contemplated by the Mortgage and other loan documents was closed, mutatis mutandis; (iii) in the event that the debt to Lender shall have been deposited with a trust, which trust shall have sold certificates to investors evidencing an ownership interest in the trust assets, or securities collateralized by the debt shall have been sold to investors, S&P (and/or any other rating agency then rating such certificates or securities) shall have confirmed in writing that the substitution of the Substitute Premises for the Premises will not result in a downgrade, withdrawal or qualification of the rating then assigned to such certificates or securities, (iv) all conditions in the Lender's loan documents with respect to the substitution of the Premises with the Substitute Premises shall have been satisfied (including, without limitation, with respect to the delivery of a legal opinion or opinions from a nationally recognized law firm), (v) Tenant shall cause to be delivered to Landlord an opinion letter from a nationally recognized law firm, in form and substance reasonably satisfactory to Landlord to the effect that the proposed Substitution (a) satisfies the requirements for a “like-kind exchange” under Section 1031 of the Code, and (b) does not cause Landlord to violate its holding requirements with respect to ownership under Section 1031 of the Code, and (vi) to the extent required by Lender, Tenant shall cause to be delivered to Landlord and Lender an opinion letter from a nationally recognized law firm, in form and content satisfactory to Landlord and Lender, relating to the (1) due authorization, execution and delivery of the deed transferring the Substitute Premises, and (2) enforceability of the lease modification referenced below. Upon the completion of the conveyance of the Substitute Premises to Landlord, this Lease shall be modified (in a manner satisfactory to Lender and Landlord) to reflect the substitution of the Substitute Premises for the Premises and in such other respects as may be necessary as a result of the exchange of the Premises for the Substitute Premises, but in all other respects this Lease shall remain in full force and effect, and the parties shall enter into and record a new Notice or Memorandum of Lease similar to the one executed in connection with the execution of this Lease. The costs and fees with respect to the conveyance of the Premises to Tenant shall be borne solely by Tenant. The title to the Substitute Premises shall be free of liens and encumbrances except for those which are specifically accepted by Landlord and Lender, and the costs and fees with respect to the conveyance of such Substitute Premises to Landlord shall be borne solely by Tenant. Any indemnifications which shall have been given by Tenant with respect to the Premises shall survive the exchange of the Substitute Premises for such Premises.

 

  

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(b)           The “Substitute Premises” shall mean a parcel of land located in the same state as the Premises with a completed building constructed thereon in accordance with plans and specifications similar to the plans and specifications for the Building, which is a legal conforming use under the applicable zoning regulations, with respect to which a final certificate of occupancy has been issued and all other licenses and permits have been received, and of which Building Tenant shall have taken occupancy and within which Building Tenant shall have commenced operation of a financial institution; provided, however, that such land and building shall have a then current appraised value at least equal to the appraised value of the Premises as of the date hereof, and further provided that said land and building shall be acceptable to Landlord and Lender within their discretion, reasonably exercised.

 

(c)           No Event of Default by Tenant shall have occurred and be continuing under this Lease either at the time of the Exchange Offer or on the date of the Substitution.

 

(d)           The Substitute Premises must be a property as to which Landlord will hold fee title.

 

(e)           Tenant shall be responsible for, and shall indemnify Landlord and/or Lender against, any adverse tax consequence to Landlord  and/or Lender on an after-tax basis as to Landlord and/or Lender with respect to such Substitution.

 

(f)           The person or entity transferring the Substitute Premises to Landlord shall be solvent, and the Substitute Premises shall be transferred to Landlord in an arm’s length transaction.

 

  

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RIGHT OF FIRST REFUSAL -

 

46.           Landlord shall not at any time during the Extension Periods sell or convey or agree to sell or convey the Premises to any unaffiliated third party without first having complied with the requirements of this Section 46.  If, at any time during any Extension Period, Landlord shall desire to sell or convey all or any portion or portions of the Premises to an unaffiliated third party, Landlord shall obtain from such unaffiliated third party a bona fide arms’ length written offer (the “Offer”), acceptable to Landlord, to purchase all or such portion of the Premises; and Landlord shall submit a written copy of the Offer to Tenant and shall give Tenant twenty (20) days within which to elect to purchase the portion of the Premises which is the subject of the Offer (herein called the “Subject Premises”) on the precise terms and conditions of the Offer (except that if the Offer shall be in whole or in part for consideration other than cash, Tenant shall have the right to pay in cash the fair market value of such non-cash consideration).  If Tenant elects to so purchase the Subject Premises, Tenant shall give to Landlord written notice thereof (“Acceptance Notice”) and closing shall be held within sixty (60) days after the date of the Acceptance Notice, whereupon Landlord shall convey the Subject Premises to Tenant.  At closing Landlord shall deliver to Tenant a special warranty deed, sufficient to convey to Tenant fee simple title to the Subject Premises free and clear of all liens, restrictions and encumbrances created by Landlord, except for the Permitted Encumbrances, liens or encumbrances created or suffered by Tenant or arising by reason of the failure of Tenant to have observed or performed any term, covenant or agreement herein to be observed or performed by Tenant, the lien of any taxes then affecting the Premises, this Lease and, if the Subject Premises are to be conveyed subject to the outstanding balance of the Loan, the Mortgage and all other Loan documents.  This right of first refusal shall continue as to all portions of the Premises until such time as such portions shall have been sold by Landlord to the party making the Offer or its assignee(s).  In the event Tenant shall elect not to so purchase the Subject Premises, Landlord may thereafter sell the Subject Premises which are the subject of the Offer only to the party making the Offer or its assignee(s) and only in accordance with the terms thereof, unless a further Offer is submitted to Tenant in accordance with this Section 46.  Notwithstanding anything to the contrary herein, the provisions of this Section 46 shall not apply to any sale or conveyance of the Premises (i) in foreclosure (or similar proceeding) of a bonafide mortgage or deed of trust or to any conveyance in lieu of foreclosure of such a mortgage or deed of trust, (ii) to a person or entity controlling, controlled by or under common control with Landlord, (iii) during the the Initial Term, or (iv) during the continuance of an Event of Default.  Tenant hereby acknowledges and confirms that the Note and Mortgage provide or may provide that Landlord may not sell, convey, alienate, mortgage, encumber, pledge or otherwise transfer the Premises, or any part thereof, or any interest therein (to Tenant or to anyone else), except as specifically provided under such Note and Mortgage.  Furthermore, the Mortgage allows for the transfer of the beneficial ownership interest, membership interest or other equity interest in the entity comprising Landlord, which such transfer shall be governed by the provisions in the Mortgage with respect to same.  Accordingly, Tenant hereby acknowledges and agrees that any sale, conveyance, alienation, mortgage, encumbrance, pledge or transfer of the beneficial ownership interest, membership interest or other equity interest in Landlord (other than a sale of all or substantially all of such beneficial ownership interest, membership interest or other equity interest in Landlord after the Initial Term in a single transaction or a series of related transactions which, if structured instead as a sale of the Premises, would have allowed Tenant to exercise its right of first refusal under this Section 46), or the change of the trustee, manager or other controlling person of Landlord, shall not entitle Tenant to exercise its rights under this Section 46.

 

  

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If during any Extension Term Landlord shall obtain an Offer with respect to a sale or conveyance of all or any portion of the Premises, and sells the Premises (to Tenant or anyone else) Tenant hereby acknowledges and consents as follows: (i) any such sale or conveyance during a period when the debt secured by the Mortgage cannot be prepaid (the “Lockout Period”) shall be subject to the outstanding balance of the Loan, and, if Tenant shall be entitled to, and shall, exercise its rights under this Section 46, the Loan, Note, Mortgage, and other Loan documents will be assumed by Tenant, and the lien of the Mortgage may not be released during such Lockout Period; (ii) such sale shall be in accordance with the terms and provisions of the Note and Mortgage, whether such purchase contemplates the purchase of the Premises subject to the lien of the Mortgage or for a release of the lien of the Mortgage; and (iii) if the lien of the Mortgage is not released in connection with such sale of the Premises, and if Tenant acquires the Premises, no merger of title shall occur and this Lease and any guaranty of this Lease will remain in full force and effect in accordance with their terms.

 

If Tenant shall have agreed to purchase the Subject Premises pursuant to an Offer under which the third party offeror was to acquire the Subject Premises under and subject to the lien of any mortgage, and if such purchase by Tenant of the Subject Premises shall occur after the expiration of the Lockout Period and any similar lockout period under any such mortgage, Tenant may purchase the Subject Premises for cash free and clear of any such mortgage but only if (i) the cash portion of the Offer is increased by an amount equal to the principal and interest secured by any such mortgage, and (ii) Tenant pays (in addition to the purchase price) all defeasance deposits, yield maintenance amounts, satisfaction fees and other sums which become owing as a result of such prepayment; all to the end and effect that Landlord will net the same amount as Landlord would have netted had the Subject Premises been sold under and subject to the lien of any such mortgage, pursuant to the Offer.

 

If any right of refusal or other right under this Lease would, in the absence of the limitation imposed by this Section, be invalid or unenforceable as being in violation of the rule against perpetuities or any other rule of law relating to the vesting of an interest in property or the suspension of the power of alienation of property, then any right of refusal or other right hereunder shall be exercisable only during the period which shall begin as of the date hereof and end twenty (20) years and six (6) months after the date of death of the last survivor of the descendants of former President George H.W. Bush alive on the date of the execution and delivery of this Lease.

 

The rights granted to Tenant under this Section 46 shall not survive the expiration or termination of this Lease.

 

CONFESSION OF JUDGMENT IN EJECTMENT -

 

47.            THIS PARAGRAPH SETS FORTH A WARRANT OF ATTORNEY FOR AN ATTORNEY TO CONFESS JUDGMENT AGAINST THE TENANT FOR POSSESSION OF THE PREMISES.  IN GRANTING THIS WARRANT OF ATTORNEY TO CONFESS JUDGMENT AGAINST THE TENANT FOR POSSESSION OF THE PREMISES, TENANT HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY, AND, ON THE ADVICE OF SEPARATE COUNSEL OF TENANT, UNCONDITIONALLY WAIVES ANY AND ALL RIGHTS TENANT HAS OR MAY HAVE TO PRIOR NOTICE AND AN OPPORTUNITY FOR HEARING UNDER THE RESPECTIVE CONSTITUTIONS AND LAWS OF THE UNITED STATES AND THE COMMONWEALTH OF PENNSYLVANIA.

 

  

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TENANT HEREBY AUTHORIZES THE PROTHONOTARY, CLERK OF COURT OR ANY ATTORNEY OF ANY COURT OF RECORD, UPON THE OCCURRENCE OF A CONFESSION OF JUDGMENT DEFAULT (AS HEREINAFTER DEFINED), OR IN THE EVENT THAT TENANT FAILS TO SURRENDER POSSESSION OF ALL OR ANY PART OF THE LEASED PREMISES AS REQUIRED HEREIN, TO APPEAR FOR THE TENANT AND ALL PERSONS CLAIMING UNDER THE TENANT IN ANY COMPETENT COURT AND CONFESS JUDGMENT IN EJECTMENT (WITHOUT STAY OF EXECUTION OR APPEAL) IN FAVOR OF THE LANDLORD AND ALL PERSONS CLAIMING UNDER THE LANDLORD AND AGAINST THE TENANT AND ALL PERSONS CLAIMING UNDER THE TENANT FOR POSSESSION OF THE LEASED PREMISES, WITHOUT ANY LIABILITY ON THE PART OF THE SAID ATTORNEY, FOR WHICH THIS SHALL BE A SUFFICIENT WARRANT, AND THEREUPON A WRIT OF POSSESSION WITH CLAUSE FOR COSTS, OR OTHER PROCESS FOR SIMILAR PURPOSES, MAY ISSUE FORTHWITH WITHOUT ANY PRIOR WRIT OR PROCEEDING WHATSOEVER, AND THE TENANT AND ALL PERSONS CLAIMING UNDER THE TENANT HEREBY RELEASE TO THE LANDLORD AND ALL PERSONS CLAIMING UNDER THE LANDLORD ALL ERRORS AND DEFECTS WHATSOEVER IN ENTERING SUCH ACTION OR JUDGMENT, OR IN CAUSING SUCH WRIT OF POSSESSION OR OTHER PROCESS TO BE ISSUED, OR IN ANY PROCEEDING THEREON OR CONCERNING THE SAME, AND HEREBY AGREE THAT NO WRIT OF ERROR OR OBJECTION OR EXCEPTION SHALL BE MADE OR TAKEN THERETO.  IF A COPY OF THIS LEASE, VERIFIED BY AFFIDAVIT, IS FILED IN SAID ACTION, IT SHALL NOT BE NECESSARY TO FILE THE ORIGINAL AS A WARRANT OF ATTORNEY, ANY LAW OR RULE OF COURT TO THE CONTRARY NOTWITHSTANDING. THIS WARRANT OF ATTORNEY SHALL NOT BE EXHAUSTED BY ONE EXERCISE THEREOF, AND SHALL REMAIN IN FORCE AND SHALL BE OPERATIVE FOR SUCCESSIVE EXERCISES THEREOF, FROM TIME TO TIME AS THE NEED MAY ARISE, NOT ONLY WITH RESPECT TO THE TENANT BUT ALSO WITH RESPECT TO ALL PERSONS CLAIMING UNDER THE TENANT.

 

NOTWITHSTANDING ANYTHING TO THE CONTRARY STATED IN THIS SECTION 47, LANDLORD’S ATTORNEY SHALL NOT EJECT TENANT FROM THE LEASED PREMISES TO THE EXTENT SUCH EJECTMENT WOULD VIOLATE ANY APPLICABLE BANKING LAWS OR REGULATIONS, AS SUCH LAWS OR REGULATIONS RELATE TO NOTICE TO BANK CUSTOMERS OF A BANK BRANCH CLOSURE.

 

  

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FOR THE PURPOSE OF THIS SECTION 47, A “CONFESSION OF JUDGMENT DEFAULT” SHALL MEAN A FAILURE OF TENANT TO PAY FIXED RENT OR ADDITIONAL RENT THAT CONSTITUTES AN “EVENT OF DEFAULT” UNDER THIS LEASE, WHICH CONTINUES FOR TEN (10) DAYS’ FOLLOWING TENANT’S RECEIPT OF NOTICE OF THE EXISTENCE OF SUCH “EVENT OF DEFAULT” FROM LANDLORD.

 

 

INITIALED:

 

	LANDLORD:	TENANT:
	 	 
	                                          	                                          

 

  

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IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Lease as of the Date of Lease above written.

 

  

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LANDLORD’S SIGNATURE PAGE

 

Attached to and made a part of Lease dated as of December ___, 2007.

 

Between:

 

[Landlord’s Name],

 

and

 

[Tenant’s Name],

 

Premises:

 

______________________

Location:  City, Pennsylvania

 

[Landlord’s Name],

[Landlord entity type]

 

By:_________________________________

 

Its:_______________________________

 

Signed and acknowledged

in the Presence of:

 

_________________________

 

Print:____________________

 

_________________________

 

Print:____________________

 

  

  

  

 

TENANT’S SIGNATURE PAGE

 

Attached to and made a part of Lease dated as of  December __, 2007.

 

Between:

 

[Landlord’s Name],

 

and

 

[Tenant’s Name],

 

Premises:

 

______________________

Location:  City, Pennsylvania

 

[Tenant’s Name],

[Tenant entity type]

 

By:______________________________

 

Its:______________________________

 

Signed and acknowledged

in the Presence of:

 

_________________________

 

Print:____________________

 

_________________________

 

Print:____________________

 

  

  

  

 

SCHEDULE 3

 

CERTIFICATE AND AGREEMENT

REGARDING

MATTERS OF RECORD

 

THIS Certificate and Agreement Regarding Matters of Record (this “Certificate”) is delivered by __________________, a ___________ corporation (“Tenant”), pursuant to Section 30 of Part II of that certain Lease dated as of _______________, 2___, by and between __________________, as Landlord (herein so called), and Tenant (the “Lease”).

 

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

 

1.           Tenant hereby consents to the Instrument, and agrees that the Instrument shall constitute an “REA” as defined in Section 29 of Part II of the Lease.

 

2.           Tenant hereby represents, warrants and certifies to Landlord and Lender that:

 

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

 

(b)           The Instrument does not adversely affect the value of the Premises or unreasonably render the use of the Premises dependent upon any other property or unreasonably condition the use of the Premises upon the use of any other property;

 

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

 

(d)           Tenant considers the consideration, if any, being paid for such Instrument to be fair and adequate, and Tenant hereby waives any right to such consideration and agrees that all such consideration shall be paid to Landlord.

 

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

 

4.           [IF APPLICABLE] Attached hereto is a true, correct and complete copy of a survey of the Premises prepared by [name of surveyor] which shows the location on the Premises of all easements and other rights or encumbrances arising pursuant to the Instrument, or which otherwise indicates the effect of the Instrument on the Premises.

 

  

  

  

 

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

 

6.           Attached hereto is the commitment of [name of title insurer] to issue an endorsement to the loan policy of title insurance delivered to Lender with respect to the Premises indicating that after filing the Instrument, [the Mortgage will remain a first lien on the Premises][OR, WITH RESPECT TO A DEDICATION:  the Mortgage will remain a first lien on the portion of the Premises not subject to the Dedication] subject only to the exceptions which were contained in such policy of title insurance and the Instrument.

 

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

 

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

 

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

 

[NAME OF TENANT],

 

a _________ corporation

 

 

By:_________________________________

 

Its:_______________________________

 

  

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STATE OF ________

	
§

	 	 
	  	
§

	 	 
	
COUNTY OF ______

	
§

 

On this, the _____ [______] day of ________________, 2007, before me, a Notary Public in and for the State of ______________________________, the undersigned officer, personally appeared ______________________, who acknowledged him/herself to be the _______________ of ______________________, a ___________________ corporation/limited liability company, and that s/he as such _____________________, being authorized to do so, executed the within instrument for the purpose therein contained by signing the name of the corporation by him/herself as ________________________.

 

 

In witness whereof, I hereunto set my hand and official seal.

 

 

	Affix Seal 	
                                                                  

NOTARY PUBLIC

My Commission Expires: _________

 

  

  

  

 

SCHEDULE 4

 

ADDITIONAL LEASE TERMS

 

1.           Lease Commencement Date:  Effective Date~

 

2.           Date of Rent Commencement:  Date of Rent Commencement~

 

  

  

  

 

SCHEDULE 40(g)

 

O & M PLAN

 

[Immediately Follows This Page]

 

  

  

  

 

EXHIBIT A

 

LEGAL DESCRIPTION OF PREMISES

 

[Immediately Follows This Page]

 

  

  

  

 

EXHIBIT B

 

PERMITTED ENCUMBRANCES

 

[Immediately Follows This Page]

 

  

  

  

 

EXHIBIT C

 

SURVEY CERTIFICATION

 

[Form of Survey Certificate is on following pages]

 

  

  

  

 

EXHIBIT D

 

FORM OF SUBORDINATION, NON-DISTURBANCE

AND ATTORNMENT AGREEMENT

 

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO:

 

        

        

        

 

	  
	
(Space Above For Recorder’s Use)

SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT

 

This Subordination, Non-Disturbance and Attornment Agreement (the “Agreement”) is dated as of the ___ day of _____________, 200___, between ______________________, a ____________________ (together with its successors and/or assigns, the “Lender”) and __________________________, a ____________________ (“Tenant”).

RECITALS

A.           Tenant is the tenant under a certain lease dated as of [____, 20__] with __________________, LLC, a Delaware limited liability company (“Landlord”) of the premises described in the Lease (the “Premises”) known as ____________, as more particularly described in Exhibit “A” attached hereto and made a part hereof (such real property including the Premises, is hereinafter referred to as the “Property”), [as amended by that certain ________________________] (collectively, the “Lease”).

B.           This Agreement is being entered into in connection with a mortgage loan (the “Loan”) being made by Lender to Landlord, to be secured by, among other things:  (a) a mortgage, deed of trust or deed to secure debt on and of the Property (the “Mortgage”) to be recorded with the registry or clerk of the county in which the Property is located; and (b) an assignment of leases and rents on the Property (the “Assignment of Leases and Rents”) to be recorded.  The Mortgage and the Assignment of Leases and Rents are hereinafter collectively referred to as the “Security Documents”.

C.           Tenant acknowledges that Lender will rely on this Agreement in making the Loan to Landlord.

D.           Capitalized terms used in this Agreement and not otherwise defined herein shall have such meaning as set forth in the Lease.

 

  

  

  

 

AGREEMENT:

For mutual consideration, including the mutual covenants and agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1.           Tenant agrees that the Lease is and shall be subject and subordinate to the Security Documents and to all present or future advances under the obligations secured thereby and all renewals, amendments, modifications, consolidations, replacements and extensions of the secured obligations and the Security Documents, to the full extent of all amounts secured by the Security Documents from time to time.  Said subordination is to have the same force and effect as if the Security Documents and such renewals, modifications, consolidations, replacements and extensions thereof had been executed, acknowledged, delivered and recorded prior to the Lease, any amendments or modifications thereof and any notice thereof.

2.           Lender agrees that, if the Lender exercises any of its rights under the Security Documents, including an entry by Lender pursuant to the Mortgage or a foreclosure of the Mortgage, Lender shall not disturb Tenant’s right of quiet possession of the Premises under the terms of the Lease so long as Tenant is not in default beyond any applicable grace or cure period of any term, covenant or condition of the Lease.  So long as Tenant is not in default beyond any applicable notice and grace or cure period of any term, covenant or condition of the Lease, Tenant shall not be named as a party in any action by Lender to enforce such rights unless such joinder shall be required by law; provided that such joinder shall not result in the termination of the Lease or disturb Tenant’s right of quiet possession and use of the Leased Premises, and any sale of the Leased Premises or other enforcement of such rights shall be made subject to all rights of Tenant under the Lease.

3.           Tenant agrees that, in the event of a foreclosure of the Mortgage by Lender or the acceptance of a deed in lieu of foreclosure by Lender or any other succession of Lender to ownership, Tenant will, upon receipt of written notice from Lender, attorn to and recognize Lender as its landlord under the Lease for the remainder of the term of the Lease (including all extension periods which have been or are hereafter exercised) upon the same terms and conditions as are set forth in the Lease, and Tenant hereby agrees to pay and perform all of the obligations of Tenant pursuant to the Lease.

4.           Tenant agrees that, in the event Lender succeeds to the interest of Landlord under the Lease, Lender shall not be:

(a)           liable for any act or omission of any prior Landlord (including, without limitation, the then defaulting Landlord) which occurred prior to the date the Lender succeeded to any prior Landlord’s interest, or

(b)           subject to any defense or offsets which Tenant may have against any prior Landlord (including, without limitation, the then defaulting Landlord) which accrued prior to the date Lender succeeded to any prior Landlord’s interest, or

(c)           bound by any payment of rent or additional rent which Tenant might have paid for more than one month in advance of the due date under the Lease to any prior Landlord except to the extent received by Lender pursuant to the exercise of its remedies under its loan documents after default by Landlord (including, without limitation, the then defaulting Landlord), or

 

  

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(d)           bound by any obligation to make any payment to Tenant which was required to be made prior to the time Lender succeeded to any prior Landlord’s interest, or

(e)           accountable for any monies deposited with any prior Landlord (including security deposits), except to the extent such monies are actually received by Lender, or

(f)           bound by any surrender, termination, amendment or modification of the Lease made without the consent of Lender (except a surrender, termination, amendment or modification specifically provided for in the Lease, such as a renewal option, which is permitted without the Lender’s consent).

5.           Tenant hereby agrees to give to Lender copies of all notices of Landlord default(s) under the Lease in the same manner as, and whenever, Tenant shall give any such notice of default to Landlord, at the address for Lender set forth in Section 10 of this Agreement or such other address as Lender shall provide Tenant in writing, and no such notice of default shall be deemed given to Landlord unless and until a copy of such notice shall have been so delivered to Lender.  Lender shall have the right to remedy any Landlord default under the Lease, or to cause any default of Landlord under the Lease to be remedied, and for such purpose Tenant hereby grants Lender such additional period of time, not to exceed thirty (30) days, as may be reasonable to enable Lender to remedy, or cause to be remedied, any such default in addition to the period given to Landlord in the Lease for remedying, or causing to be remedied, any such default.  Tenant shall accept performance by Lender of any term, covenant, condition or agreement to be performed by Landlord under the Lease with the same force and effect as though performed by Landlord.  No Landlord default under the Lease shall exist or shall be deemed to exist (i) as long as Lender, in good faith, shall have commenced to cure such default within the above referenced time period and shall be prosecuting the same to completion with reasonable diligence, subject to force majeure, or (ii) if possession of the Premises is required in order to cure such default, or if such default is not susceptible of being cured by Lender, as long as Lender, in good faith, shall have notified Tenant that Lender intends to institute proceedings under the Security Documents, and, thereafter, as long as such proceedings shall have been instituted and shall be prosecuted with reasonable diligence.  In the event of the termination of the Lease by reason of any default thereunder by Landlord, upon Lender’s written request, given within thirty (30) days after any such termination, and at Lender’s cost and expense, Tenant, within fifteen (15) days after receipt of such request, shall execute and deliver to Lender or its designee or nominee a new lease of the Premises for the remainder of the term of the Lease upon all of the terms, covenants and conditions of the Lease, as the Lease may have been amended or supplemented.  Subject to Paragraph 2 hereof, Lender shall have the right, without Tenant’s consent, to foreclose the Mortgage or to accept a deed in lieu of foreclosure of the Mortgage or to exercise any other remedies under the Security Documents.

 

  

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6.           Tenant hereby consents to the Assignment of Leases and Rents from Landlord to Lender in connection with the Loan.  Tenant acknowledges that the interest of the Landlord under the Lease is to be assigned to Lender solely as security for the purposes specified in said assignments, and Lender shall have no duty, liability or obligation whatsoever under the Lease or any extension or renewal thereof, either by virtue of said assignments or by any subsequent receipt or collection of rents thereunder, unless Lender shall specifically undertake such liability in writing or unless Lender or its designee or nominee becomes, and then only with respect to periods in which Lender or its designee or nominee becomes, the owner of the Premises.  Tenant will pay all Fixed Rent and Additional Rent as directed in a written notice from Lender given to Tenant on thirty (30) days prior to the due date of such payment.  By executing and delivering this Agreement, Tenant hereby confirms that any notice requirements to be given by Lender to Tenant under the Lease for the purpose of granting rights to mortgagees under the Lease are fully satisfied.  Landlord acknowledges that any payments made to Lender shall be deemed full performance of such obligation under the Lease.

7.           Tenant agrees that upon receipt of a written notice from Lender of a default by Landlord under the Loan, Tenant will thereafter, if requested by Lender, pay Fixed Rent and Additional Rent to Lender in accordance with the terms of the Lease.

8.           Tenant agrees that it shall not assign the Lease, or sublet the whole or any part of the Premises, unless in accordance with the terms and conditions specified in the Lease.

9.           Any provisions of the Mortgage notwithstanding, in the event of the occurrence of a fire or other casualty to, or a taking by condemnation of, the Property, the Property shall be restored in accordance of the provisions of the Lease, and Lender hereby waives any rights it might have under the Mortgage to apply such insurance or condemnation proceeds against the balance of the Loan due Lender by Landlord, provided that (i) such insurance or condemnation proceeds shall be held and disbursed by mortgagee under the Mortgage in the manner provided in the Mortgage, (ii) Tenant is not in default under the terms of the Lease beyond any applicable grace or cure period, and (iii) Tenant has not exercised any right contained in the Lease to terminate the Lease on account of such casualty or condemnation.

10.           Any notice, election, communication, request or other document or demand required or permitted under this Agreement shall be in writing and shall be deemed delivered on the earlier to occur of (a) the date of delivery, refusal or nondelivery indicated on the return receipt, if deposited in a United States Postal Service Depository, postage prepaid, sent certified or registered mail, return receipt requested, or (b) the date of a receipt signed by a Senior Vice President of Tenant (or signed by any Tenant representative holding an office more senior than that of Senior Vice President) or signed by a Landlord representative, if sent via a recognized commercial courier service providing for a receipt, addressed to Tenant or Lender, as the case may be, at the following addresses:

If to Tenant:

Harleysville National Bank and Trust Company

483 Main Street

Harleysville, PA 19438

Attention:  Michael High, Executive Vice President and COO

 

  

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with a copy to:

Stradley Ronon Stevens & Young, LLP

Suite 2600, One Commerce Square

2005 Market Street

Philadelphia, PA 19103

Attention:  Christopher S. Connell, Esq.

If to Lender:

 

                                             

                                            

                                            

                                             

With a copy to:

 

                                             

                                            

                                            

                                             

 

11.           The term “Lender” as used herein includes any successor or assign of the named Lender herein, including without limitation, any co-lender at the time of making the Loan, any purchaser at a foreclosure sale and any transferee pursuant to a deed in lieu of foreclosure, and their successors and assigns, and the terms “Tenant” and “Landlord” as used herein include any successor and assign of the named Tenant and Landlord herein, respectively; provided, however, that such reference to Tenant’s or Landlord’s successors and assigns shall not be construed as Lender’s consent to any assignment or other transfer by Tenant or Landlord.

12.           If any provision of this Agreement is held to be invalid or unenforceable by a court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to be enforceable, or if such modification is not practicable, such provision shall be deemed deleted from this Agreement, and the other provisions of this Agreement shall remain in full force and effect, and shall be liberally construed in favor of Lender.

13.           Neither this Agreement nor any of the terms hereof may be terminated, amended, supplemented, waived or modified orally, but only by an instrument in writing executed by the party against which enforcement of the termination, amendment, supplement, waiver or modification is sought.

14.           This Agreement shall be construed in accordance with the laws of the state of in which the Property is located.

[Remainder of page intentionally left blank.]

 

  

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Witness the execution hereof as of the date first above written.

[ADD SIGNATURE AND ACKNOWLEDGEMENT PAGES]

 

  

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EXHIBIT E

 

LIST OF ENVIRONMENTAL REPORTS

 

That certain Phase I Environmental Site Assessment prepared by LandAmerica Assessment Corporation, dated December 7, 2007.Unassociated Document

EXHIBIT 10.33

LEASE AGREEMENT

 

By and Between

 

ARC ROCK17MA LLC, as

LANDLORD

 

and

 

ROCKLAND TRUST COMPANY, as

TENANT

DATED May 1, 2008

 

912 & 932 Main Street, West Dennis, Massachusetts

  

  

 

AGREEMENT OF LEASE

AGREEMENT OF LEASE made as of the 1st day of May, 2008, by and between ARC ROCK17MA LLC, a Delaware limited liability company (hereinafter referred to as "Landlord") having an address at 106 Old York Road, Jenkintown, Pennsylvania 19046, and ROCKLAND TRUST COMPANY, a Massachusetts trust company (hereinafter referred to as "Tenant") having an address at 288 Union Street, Rockland, MA 02370.

WITNESSETH

Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, subject to and with the benefits of the terms, covenants and conditions of this Lease, the Property, as defined below.

	
1.

	
REFERENCE DATA

1.1     Definitions. Each reference in this Lease to any of the terms and titles contained in this Article shall be deemed and construed to incorporate the data stated following that term or title in this Article.

	
1)  

	 	
Additional Rent:

	  	
Sums or other charges payable by Tenant under this Lease, other than Yearly Fixed Rent.

	  	  	  	  	  
	
2)

	  	
Business Day:

	  	
All days except days defined as "legal holidays" for the entire state where the Property is located.

	  	  	  	  	  
	
3)

	  	
Land:

	  	
The parcel(s) of land described on Exhibit A.

	  	  	  	  	  
	
4)

	  	
Landlord's Address:

	  	
106 Old York Road, Jenkintown, Pennsylvania 19046

	  	  	  	  	  
	
5)

	  	
Lease Year:

	  	
A twelve (12) month period beginning on the Term Commencement Date and each succeeding twelve (12) month period during the Term of this Lease, except that if the Term Commencement Date shall be other than the first day of a calendar month, the first Lease Year shall include the partial calendar month in which the Term Commencement Date occurs as well as the succeeding twelve (12) full calendar months.

	  	  	  	  	  
	
6)

	  	
Mortgage:

	  	
A mortgage, deed of trust, trust indenture, or other security instrument of record creating an interest in or affecting title to the Property or any part thereof, and any and all renewals, modifications, consolidations or extensions of any such instrument.

  

  

 

 

	
7)

	  	
Mortgagee

	  	
The holder of any Mortgage designated by Landlord.

	  	  	  	  	  
	
8)

	  	
Building:

	  	
The building(s) known and numbered as 912 & 932 Main Street, West Dennis, Massachusetts and located on the Land.

	  	  	  	  	  
	
9)

	  	
Property:

	  	
The Land, the Building, and all other improvements on the Land described on Exhibit A.

	  	  	  	  	  
	
10)  

	  	
Rent:

	  	
Yearly Fixed Rent and Additional Rent.

	  	  	  	  	  
	
11)

	  	
Tenant's Address:

	  	
Rockland Trust Company 

288 Union Street 

Rockland, MA 02370

	  	  	  	  	  
	
12)

	  	
Term Commencement Date:

	  	
As defined in Section 3.2

	  	  	  	  	  
	
13)

	  	
Term of this Lease:

	  	
As defined in Sections 3.1 and 3.3. The word "Term" shall mean the "Initial Term" and any "Extended Term".

	  	  	  	  	  
	
14)

	  	
Termination Date:

	  	
As defined in Section 3.1

	  	  	  	  	  
	
15)

	  	
Use of Property:

	  	
(i) A financial services center, bank and all uses necessary or incidental thereto, including, without limitation, any uses which Tenant makes, from time to time, of other such locations (including, without limitation, the sale of mutual funds and other financial and insurance products), drive-in banking services, maintenance of an automated teller machine(s) ("ATMs"), safe deposit facilities and office and office related uses, (ii) any other lawful use permitted from time to time at the Property and not otherwise restricted of record, and (iii) as otherwise expressly permitted herein (collectively, "the Permitted Uses").

	  	  	  	  	  
	
16)

	
 

	
Yearly Fixed Rent:

	
 

	
$94,860.00 for the first year of the Initial Term, subject to annual increases as set forth in Section 6.1 hereof, and during any Extended Term, as set forth in Section 3.3 hereof.

  

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1.2

	
Exhibits. The following exhibit(s) are attached hereto and made a part hereof:

 

	 	
Exhibit A

	
Property

 

	 	
Exhibit B

	
Market Rent

 

	 	
Exhibit B-l

	
Existing Repairs

 

	 	
Exhibit C

	
Nondisturbance Agreement

 

	 	
Exhibit D

	
Estoppel Certificate

  

	
2.

	
DESCRIPTION OF PROPERTY

2.1      Property. The Property is defined in Section 1.1 above.

2.2      Restrictions. Landlord shall not, without obtaining Tenant's prior written consent, make or permit any change, alteration or addition to the Property. In addition, unless required by applicable laws, Landlord agrees not to (or consent to) subdivide, rezone, or otherwise legally reconfigure the Property or alter any rights affecting the Property during the Term of this Lease.

2.3      Exclusive Right. Tenant (for itself and its visitors, invitees, agents and employees) shall have the exclusive right to use and occupy the Property, subject to the terms of this Lease.

	
3. 

	
TERM OF LEASE

3.1      Term. The initial Term of this Lease is fifteen (15) years (or until such Term shall sooner cease or expire) commencing on the Term Commencement Date and ending on the day immediately prior to the fifteenth anniversary thereof (the "Initial Term"), except that if the Term Commencement Date shall be other than the first day of a calendar month, the Term of this Lease shall end on the last day of the calendar month in which said anniversary of the Term Commencement Date shall fall (which date on which the Term of this Lease is scheduled to expire is hereinafter referred to as the "Termination Date").

3.2      Term Commencement Date. The Term Commencement Date shall be May 1, 2008.

3.3      Option to Extend. So long as Tenant is not in default hereunder after applicable notice and grace periods at the time of giving notice or at the commencement of the Extended Term, and so long as this Lease shall be in full force and effect, Tenant shall have the option to extend the Term ("Options to Extend") for four (4) extended terms of five (5) years each (the "Extended Terms"). Each Extended Term shall commence immediately following the end of the then existing Term. Tenant may exercise its option to extend for any Extended Term by giving written notice to Landlord at any time during the then existing Term of the Lease, but no later than twelve (12) months prior to the end of the then existing Term. Notwithstanding the preceding sentence, if notice is given earlier than twelve (12) months prior to the end of the Term, Market Rent shall be determined as of the date twelve (12) months prior to the end of the existing Term. All terms and conditions applicable during the Term shall apply during any Extended Term, except for Yearly Fixed Rent which shall be as provided below, and the number of remaining options to extend under this Lease pursuant to this Section 3.3 shall be reduced by the number of options to extend that have already been exercised by Tenant hereunder. If Tenant fails to give such notice exercising its option for any Extended Term within the time provided above, this Lease shall automatically expire at the end of the then existing Term (unless sooner terminated as provided herein).

 

  

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The Yearly Fixed Rent during each Extended Term shall be adjusted to be the then relevant Market Rent, such rent to be determined in accordance with Exhibit B attached hereto, subject to annual increases as set forth in Section 6.1 hereof.

Notwithstanding anything herein to the contrary, it is understood and agreed that the Yearly Fixed Rent during only the first and second Extended Terms shall in no event be less than the Yearly Fixed Rent at the time of the expiration of the then current Term. This limitation shall not apply to the third and fourth Extended Terms if exercised.

	
4.

	
CONDITION OF PROPERTY

Tenant acknowledges and agrees that Tenant is leasing the Property "As-Is" and with all faults on the Term Commencement Date, subject to all easements, restrictions and agreements of record, as well as all zoning, building and other laws applicable thereto.

	
5.

	
USE OF PROPERTY

5.1      Permitted Use. Tenant shall, during the Term of this Lease, use the Property only for the Permitted Uses set forth in Article 1 and for no other purposes except as specifically set forth herein. Without limiting the generality of the foregoing, Tenant shall have the right (i) to install and maintain ATMs and (ii) to construct and maintain a drive-thru facility at the Property if permitted under zoning applicable to the Property. Landlord covenants and agrees that Tenant shall have the right to remain open and operating for business at all hours permitted by law on a twenty-four (24) hour, seven (7) days a week basis. Tenant shall have no obligation to continuously use and occupy the Property during the Term hereunder and shall have the right to use the Property, or portion thereof, for an "unmanned" ATM(s) if so desired by Tenant in its sole discretion. All installations and construction by Tenant shall be done in accordance with Article 10 of this Lease, such improvements to be left or removed at the end of the Term by Tenant at Tenant's sole election, Tenant agreeing to repair any damage caused by any such removal.

5.2      Prohibited Uses. Tenant shall not use, or suffer or permit the use of, or suffer or permit anything to be done in or anything to be brought into or kept in, the Property or any part thereof (i) which would violate any of the covenants, agreements, terms, provisions and conditions of this Lease, or (ii) for any unlawful purposes or in any unlawful manner.

5.3      Licenses and Permits. If any governmental license or permit shall be required for the proper and lawful conduct of the Property or Tenant's business, Tenant, at Tenant's expense, shall duly procure and thereafter maintain such license or permit.

 

  

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5.4      Restriction Building Name. So long as Tenant is not in default hereunder after applicable notice and grace periods and subject to applicable law, Landlord shall not, without the written consent of Tenant which may be withheld in Tenant's sole and absolute discretion: name or rename the Building or the Property with any name, brand name or other related marketing identification.

5.5      Certain Pick-ups or Deliveries. Notwithstanding anything contained in this Lease to the contrary, and without limiting the other uses the Tenant may make of the Property, Tenant shall have the right, in order to maintain proper security and maintenance for the operation of its business, to have pickups or deliveries made from or to the Property by Brinks or other similar carriers of cash, securities, instruments, records or other materials commonly transported by such carriers and to permit the use of such portions of the Property, and may make such alterations to the Property, as shall be reasonably required for such purposes.

5.6      Tenant's Access. Landlord shall not prohibit Tenant from having access to the Property on a twenty-four (24) hour a day basis, seven (7) days a week.

	
6.

	
RENT

 

6.1      Yearly Fixed Rent. Tenant shall pay to Landlord, without setoff, notice or demand, at Landlord's office, or to such other person or at such other place as Landlord may designate by notice to Tenant, the Yearly Fixed Rent set forth in Article 1. The Yearly Fixed Rent shall be paid in equal monthly installments in advance on or before the first Business Day of each calendar month during the Term of this Lease and shall be apportioned for any fraction of a month in which the Term Commencement Date or the last day of the Term of this Lease may fall. The amount of Yearly Fixed Rent payable by Tenant hereunder shall increase by one and a half percent (1.5%) over the Yearly Fixed Rent for the immediately preceding year and such increase shall commence on the first calendar month in the second (2nd) year of the Term (i.e., the thirteenth month), and continue in the first calendar month of each succeeding year of the Term thereafter.

6.2      Net Lease: Additional Rent. It is the intent of the parties that this Lease shall constitute a "triple net lease" and, any present or future law to the contrary notwithstanding, this Lease shall not terminate except as expressly set forth herein. The Yearly Fixed Rent provided in this Lease will be a net payment to Landlord and Tenant will bear all costs and expenses relating to the Property, accruing during and relating to the Term, except as otherwise expressly stated in this Lease. Tenant covenants and agrees to pay, in addition to Yearly Fixed Rent, all such costs and expenses relating to this Lease and the Property which accrue during or are allocable to the Term including, without limitation, the following: (a) "Taxes", as defined and set forth below; (b) insurance costs; (c) utility charges; (d) operating expenses; (e) fees to obtain licenses and permits required under applicable laws for use of the Property; (f) maintenance expenses, and (g) amounts due under license agreements, easement agreements, ground leases or other agreements affecting the Property (and all of such shall be included in the definition of "Additional Rent"). Yearly Fixed Rent, Additional Rent, and all other amounts required to be paid by Tenant under this Lease are sometimes collectively herein referred to as "Rent". Tenant shall remain obligated under this Lease in accordance with its terms and shall not take any action to terminate, rescind or avoid this Lease, notwithstanding any bankruptcy, insolvency, reorganization, liquidation, dissolution or other proceeding affecting Landlord or any action with respect to this Lease which may be taken by any trustee, receiver or liquidator or by any court. Except as otherwise expressly provided herein, Tenant waives all rights to terminate or surrender this Lease, or to any abatement or deferment of Yearly Fixed Rent, Additional Rent or other sums payable hereunder. Tenant acknowledges and agrees that Tenant's obligations under this Lease to pay Rent and all of the Landlord's obligations under this Lease are independent covenants, and, except as may be expressly set forth in this Lease, no default or failure of Landlord under this Lease, shall give to Tenant any offset or defense to the full and timely performance of its obligations under this Lease, entitle Tenant to any abatement of Rent or constitute any actual or constructive eviction of Tenant, Without limiting any of the foregoing, Tenant specifically covenants and agrees that, except as may be expressly set forth in this Lease, Tenant's obligation to pay all Rent hereunder is not dependent upon the condition of the Property or the performance by Landlord of any of its obligations hereunder, and Tenant shall continue to pay all Rent, without abatement, demand, claim, setoff or deduction, notwithstanding any breach by Landlord of its duties or obligations hereunder.

  

- 5 -

 

6.3      Payment of Taxes. Tenant shall, during the Term, punctually pay and discharge or cause to be paid and discharged, as and when the same shall become due and payable, all real property taxes, assessments, special assessments and charges levied upon or with respect to the Property, together with all sales, use, rent or similar taxes assessed against Rent (collectively, the "Taxes"). Notwithstanding the foregoing obligation, Tenant shall have the right to seek real estate tax abatements at any time during the Term and Landlord agrees to cooperate in any such abatement application. In no event, however, shall Tenant be required to pay any franchise, income, inheritance, estate, succession, transfer or gift taxes imposed upon Landlord, or its successors or assigns. Tenant shall deliver to Landlord satisfactory evidence of payment within thirty (30) Business Days after Landlord's request for evidence of Tenant's payment thereof. Tenant shall, during the Term, punctually pay and discharge or cause to be paid and discharged, as and when the same shall become due and payable, all personal property taxes assessed against any personal property owned or used by Tenant on the Property. If required in writing by a holder of a mortgage interest encumbering the Property, Tenant shall pay Taxes to Landlord in installments of 1/12 of annual Taxes (or reasonable estimate thereof) monthly. Tenant's obligations to pay Taxes under this Section 6.3 shall be deemed discharged to the extent of any such payments to Landlord. Within thirty (30) days following issuance of final tax bills, Landlord shall pay to Tenant any overpayment of Taxes from Tenant as a result of Tenant's having paid monthly installments, or, if applicable, Tenant shall pay to Landlord any under payment of Taxes as a result thereof.

6.4      Proration at End of Term. If the end of the Term does not coincide with the end of a tax year, Taxes for the tax year in which the Term ends shall be prorated between Landlord and Tenant, based on the most recent levy and most recent assessment. Such proration shall be subsequently adjusted when the bills for such Taxes become available. The provisions of this Section 6.4 shall survive the termination of this Lease.

6.5      Special Assessments. Tenant shall pay all special assessments and other like impositions levied or imposed for improvements installed or assessed either prior to or during the Term; provided, however, the Tenant may pay in installments any such special assessments or like impositions that may be so paid according to applicable laws and, in such event, Tenant shall only be required to pay those installments that become due and payable during the Term. If the end of the Term does not coincide with the end of a tax year, such special assessments or like impositions in which the Term ends shall be prorated in the manner described in Section 6.4 for proration of Taxes. The provisions of this Section 6.5 shall survive the termination of this Lease.

  

- 6 -

 

6.6      Tax Bills. Landlord shall provide the cooperation necessary to have the collecting authority send all pertinent tax bills directly to Tenant or its designee. All pertinent tax bills received by Landlord shall be immediately forwarded directly to Tenant or its designee to permit timely remittance in the normal course of business.

 

6.7      Default Interest. If Tenant shall not pay any installment of Yearly Fixed Rent or any installment of Additional Rent payable to Landlord within five (5) Business Days after same shall be due, Tenant shall pay to Landlord interest on the overdue Rent at the lesser of (a) the base rate from time to time announced by Citibank, N.A. (or, if Citibank, N.A. shall not exist or shall cease to announce such rate, such other bank, as shall be designated by Landlord by notice to Tenant) to be in effect at its principal office in New York, New York plus 2% and (b) ten percent (10%), for the period from the date on which that Rent was due until the date paid.

	
7.

	
UTILITIES AND REPAIRS

 

7.1      Utilities. From and after the Term Commencement Date, Tenant shall promptly pay when due, but in any event, before delinquency all water, sewer, electricity, gas, telephone, communication, and other utility charges related to the Property.

 

7.2      Tenant's Repairs and Maintenance. Tenant shall, at its sole cost and expense, make all repairs of and replacements to the Property and shall be responsible for all maintenance of the Property. Tenant shall maintain and repair the structural and non-structural components and operating systems of the Property (including the parking and exterior areas, septic systems, if any, parking lot lighting, landscaping, irrigation systems, curbing, glass and signage, roof and roof membrane, all HVAC, electrical, plumbing, and other systems, exterior walls, concrete floor slabs, foundations, beams, columns, joists, masonry walls and load-bearing partitions, and all inner structural and non-structural portions of the Building), in at least their condition existing on the Term Commencement Date. Landlord shall assign and transfer, and hereby assigns and transfers, to Tenant any warranty or guarantee received by Landlord from any party who may have supplied labor, services and/or materials with respect to any of the Property that Tenant is required to repair or replace pursuant to this Lease. Notwithstanding anything in this Section 7.2 to the contrary, the maintenance, repair and/or replacement obligations set forth on Exhibit B-l attached hereto, if any, (the "Existing Repairs") shall be the responsibility of Tenant hereunder and not the responsibility of Landlord. Tenant shall use commercially reasonable efforts to complete the Existing Repairs within the time period listed for each such item on Exhibit B-l attached hereto.

 

	
8.

	
SIGNS

 

Tenant shall have the right and option, and exclusive right, to erect signs on or visible from the exterior of the Building, to place signage on the exterior of the Building, and construct, maintain and erect signage otherwise in and around the Property (including but not limited to monument, pylon or other exterior signage), provided the same shall comply with applicable legal requirements and restrictions of record. In addition, and subject to applicable law, Landlord agrees that Tenant may install and utilize throughout the Term all signs presently existing at the Property. During the Term of this Lease, Tenant shall be permitted to change its signage from time to time without the prior written consent or approval of Landlord, Landlord agreeing to cooperate in such effort by signing any reasonable documents in connection therewith.

  

- 7 -

 

9.           OWNERSHIP FIXTURES, EQUIPMENT AND IMPROVEMENTS - REMOVAL BY TENANT

Tenant shall be the owner of all of Tenant's improvements and alterations from time to time constructed, installed, or otherwise placed on the Property after the date hereof (collectively, the "Tenant Improvements"). All articles of personal property and all business and trade fixtures, machinery and equipment, owned by Tenant or installed by Tenant at its expense in the Property, including, without limitation, furniture and movable partitions, all signs and signage vaults, vault doors, safes, night depositories, safe deposit booths, teller lines, cabinetry, telecommunications or electrical conduits or wiring, business machines and equipment, and communications equipment (collectively, "Tenant's Property") shall remain the property of Tenant, and may be removed by Tenant at any time during the Term. Upon expiration or termination of this Lease, (a) Tenant shall have no obligation to restore the Building or Property to their condition prior to Tenant's use and occupancy thereof, or to remove any of Tenant's Improvements, or Tenant's Property, or to otherwise demolish any or all of Tenant's Improvements located in, on or upon the Property, and (b) Tenant shall have the right, but not the obligation, to remove Tenant's Improvements, or Tenant's Property, provided Tenant, at its expense, and shall repair any non-cosmetic damage caused by such removal.

 

10.         ALTERATIONS AND IMPROVEMENTS BY TENANT

Tenant shall have the right, without Landlord's prior written consent, to make any alterations, decorations, installations, removals, additions or improvements in or to the Building and/or the Property as Tenant shall reasonably determine are necessary for Tenant's, or for any Subtentant's, use and enjoyment of Property, so long as the same do not materially diminish the value of the Building or Property. Without limiting the generality of the foregoing, Tenant shall have the right to install Tenant's improvements and/or Tenant's property from time to time. Any such alterations, decorations, installations, removals, additions and improvements shall be done at the sole expense of Tenant and in accordance with all applicable laws and regulations applicable thereto.

11.         TENANT'S CONTRACTORS - MECHANICS' AND OTHER LIENS STANDARD OF TENANT'S PERFORMANCE - COMPLIANCE WITH LAWS

Whenever Tenant shall make any alterations, decorations, installations, removals, additions or improvements or do any other work in or to the Building or Property, Tenant will strictly observe the following covenants and agreements:

  

- 8 -

 

(a)           In no event shall any material or equipment be incorporated in or added to the Property in connection with any such alteration, decoration, installation, addition or improvement which is subject to any lien, charge, mortgage or other encumbrance of any kind whatsoever or is subject to any security interest or any form of title retention agreement. The foregoing restrictions shall not apply in the case of personal property and trade fixtures removable by Tenant hereunder. Any mechanic's or other lien filed against the Property for work claimed to have been done for, or materials claimed to have been furnished to Tenant shall be discharged by Tenant within thirty (30) days thereafter, at the expense of Tenant, by filing the bond required by law or otherwise. If Tenant fails so to discharge any lien, Landlord may do so upon thirty (30) days notice to Tenant at Tenant's expense and Tenant shall reimburse Landlord for any expense or cost incurred by Landlord in so doing within fifteen (15) days after rendition of a bill therefor, together with interest on such cost or expense at the rate of Tenant's then Prime Rate plus two percent (2%) from the date of such payment, which interest shall be due and payable only in event the reimbursement occurs after the fifteen (15) day period provided herein.

(b)           All installations or work done by Tenant under this or any other Article of this Lease shall be at its own expense (unless expressly otherwise provided) and shall at all times comply with (i) laws, rules, orders and regulations of governmental authorities having jurisdiction thereof; and (ii) order, rules and regulations of any Board of Fire Underwriters, or any other body hereafter constituted exercising similar functions, and governing insurance rating bureaus.

(c)           Tenant shall procure all necessary permits before undertaking any work at the Property; do all such work in a good and workmanlike manner, employing materials of good quality and complying with all governmental requirements, and defend, save harmless, exonerate and indemnify Landlord from all injury, loss or damage to any person or property occasioned by or growing out of such work unless caused by or arising from the negligence or misconduct of Landlord or Landlord's agents, employees or contractors.

12.         INSURANCE, INDEMNIFICATION, EXONERATION AND EXCULPATION

12.1        Tenant's Insurance. Tenant shall maintain during the Term the following:

(a)           standard all-risk property insurance including windstorm and terrorism covering the Property in an amount at least equal to the replacement cost of the Building and all other improvements;

(b)          "boiler and machinery" insurance with respect to damage (not insured against pursuant to Section 12.1(a) hereof) to the boilers, pressure vessels or similar apparatus located on the Property for risks normally insured against under boiler and machinery policies;

(c)           commercial general liability insurance including broad form contractual liability coverage with minimum combined single limits of $5,000,000 for injury to or death of one or more persons or damage to or destruction of property in any one occurrence;

(d)          statutory workers' compensation insurance or qualified self-insurance;

(e)           flood insurance with respect to those portions of the Building or other improvements that are located in areas identified by the Federal Emergency Management Agency as having special hazards;

  

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(f)           builder's risk coverage during construction; and

(g)           if and to the extent reasonably requested from time to time by Landlord, such other insurance coverages and amounts as are customarily maintained by responsible owners of properties similar in size, character and location to the Property or required by Mortgagee (including but not limited to earthquake insurance).

The maximum deductible shall be $25,000.00 for the policies set forth in Sections 12.1(a), (b), (c) and (e) hereof. Any of the foregoing insurance coverages may be carried as a part of blanket policies, provided that (i) upon Landlord's request, the insurer under such blanket policy(ies) shall certify to Landlord any sublimits applicable to the Property, which amounts shall not be less than those required by this Section 12.1; (ii) any such policy(ies) shall otherwise comply with the requirements of this Article 12; and (iii) the protection afforded, except for the exhaustion of aggregate limits, under any such policy(ies) shall be no less than that which would have been afforded under a separate policy or policies relating only to the Property.

12.2        General Insurance Requirements. The following provisions shall apply to each policy of insurance that Tenant is hereby required to carry pursuant to Section 12.1: (a) Tenant shall cause each carrier to deliver to Landlord and any Mortgagee designated by Landlord certificates of insurance on Accord forms approved by Landlord and Mortgagee, and such other evidence of coverage as may be reasonably requested by Landlord or such Mortgagee, certifying the applicable insurance provisions herein required (it being understood that neither Landlord nor any Mortgagee shall be entitled to receive originals or copies of the complete policies of insurance setting forth such coverage), (b) each certificate of insurance shall require written notice by the carrier to Landlord and any Mortgagee designated by Landlord at least thirty (30) days prior to any cancellation, expiration, amendment or lapse thereof, (c) except for the policy described in Section 12.1(d), each policy shall identify Landlord and any Mortgagee or other person designated by Landlord as an additional insured and loss payee, (d) except for the policy described in Section 12.1(d), each policy shall include a "lender loss payable" or "mortgagee" endorsement so that the policies are not invalidated by, or permit the carrier to assert any defenses against the Mortgagee based upon, any action or inaction of the Tenant or any other person, (e) except for the policy described in Section 12.1(d), no policy shall name a loss payee or beneficiary with respect to the Property other than Tenant (and its affiliates), Landlord and any Mortgagee or other person designated by Landlord, and (f) each policy shall be issued by a carrier duly licensed in the state in which the Property is located and who have and maintain a rating of at least A- or higher from Standard & Poors and AVIII or higher from A.M. Best.

12.3        Indemnity. Tenant will save Landlord harmless, and will exonerate and indemnify Landlord, from and against any and all claims, liabilities, penalties, damages or expenses (including without limitation reasonable attorneys' fees) asserted against or incurred by Landlord:

(a)           on account of or based upon any injury to person, or loss of or damage to property sustained or occurring on the Property;

  

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(b)           on account of or based upon (including moneys due on account of) any work or thing whatsoever to the extent done in the Property by or on behalf of Tenant during the Term of this Lease; and

(c)           on account of or resulting from the failure of Tenant to perform and discharge any of its covenants and obligations under this Lease, including, without limitation, those set forth in Section 14.2;

and, in case any action or proceeding be brought against Landlord by reason of any of the foregoing, Tenant upon notice from Landlord shall at Tenant's expense resist or defend such action or proceeding and employ counsel therefor reasonably satisfactory to Landlord, it being agreed that such counsel as may act for insurance underwriters of Tenant engaged in such defense shall be deemed satisfactory.

Landlord will save Tenant harmless, and will exonerate and indemnify Tenant from and against, any and all claims, liabilities, penalties, damages or expenses (including reasonable attorneys' fees) asserted against or incurred by Tenant on account of or based upon the negligence of Landlord or its agents, contractors or employees, and, in case any action or proceeding be brought against Tenant by reason of any of the foregoing, Landlord upon notice from Tenant shall at Landlord's expense resist or defend such action or proceeding and employ counsel therefor reasonably satisfactory to Tenant, it being agreed that such counsel as may act for insurance underwriters of Landlord engaged in such defense shall be deemed satisfactory.

	
13. 

	
ASSIGNMENT AND SUBLETTING, ETC.

 

Provided that Tenant is not in default hereunder after applicable notice and grace periods, Tenant may at any time, and from time to time, assign its interest in this Lease, in the Property, or sublease, or permit the occupancy of, all or any part of the Property without the Landlord's consent. The Tenant agrees to promptly notify the Landlord in writing of any such assignment or subletting. No assignment or subletting shall release the Tenant of its obligations or liabilities under this Lease.

	
14.

	
MISCELLANEOUS COVENANTS

14.1        Access to Property. Subject to the provisions of Article 2, Tenant shall permit Landlord, at reasonable times, and subject to twenty-four hour prior written notice (except for emergencies), to show the Property during ordinary business hours to any Mortgagee, prospective purchaser of any interest of Landlord in the Property, prospective Mortgagee, or prospective assignee of any Mortgage, and during the period of twelve (12) months next preceding the Termination Date to any person contemplating the leasing of the Property or any part thereof. Landlord's rights contained in this Section 14.1 and any other rights of Landlord to access the Property as set forth in this Lease shall be exercised in such a manner so as not to unreasonably interfere with Tenant's use and enjoyment of the Property, and in recognition of Tenant's security needs as a bank and financial institution, Landlord shall not, except in emergency situations threatening life or property, exercise any right it has to enter into any secure area or non-public retail banking area within the Property unless Landlord, or any other third parties as may be permitted to access the Property as provided herein, is accompanied by an officer or authorized representative of Tenant.

  

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14.2        Requirements of Law. Tenant, at its sole cost and expense, shall comply with all laws, rules, orders and regulations affecting the Property or use thereof, including, without limitation, all applicable environmental laws, ordinances, rules, regulations and governmental requirements pertaining to the Property (including any required remediation) that arise from any environmental conditions existing at the Property prior to the date of the Lease. If either party receives notice of any violation of law, ordinance, order or regulation applicable to the Property, it shall give prompt notice thereof to the other party.

In addition, Tenant acknowledges the potential existence of asbestos and/or lead paint at the Property. To the extent required by applicable law, Tenant shall prepare and implement an asbestos and lead paint operation and maintenance plan or program (the "O&M Plan"). Tenant shall be solely responsible for compliance with the O&M Plan, and Landlord shall have no liability thereunder.

	
15.

	
DAMAGE BY FIRE, ETC.

In the event of loss of, or damage to, the Property or the Building by fire or other casualty, including without limitation acts, of terrorism and windstorm (collectively for purposes of this Section 15 "other casualty"), the rights and obligations of the parties hereto shall be as follows:

(a)           If all or any portion(s) of the Building or Property (collectively, the "Damaged Premises") are damaged as a result of fire or other casualty, Tenant shall, at its own expense, cause the damage to the Damaged Premises to be repaired, restored, rebuilt and/or replaced within one hundred eighty (180) days from the date of such fire or other casualty. Any provision of this Lease to the contrary notwithstanding, Tenant shall not receive any abatement, credit or other offset to the Yearly Fixed Rent or the Additional Rent payable by Tenant hereunder pending Tenant's completion of, or on account of the costs associated with, Tenant's restoration of the Building or the Property.

(b)           Notwithstanding the foregoing, if within the last two (2) years of the Term of this Lease, but not otherwise, the Property or Building shall be substantially damaged or destroyed by fire or other casualty so that Tenant is unable to, and, in fact, does not, conduct Tenant's business in the Property for a period of thirty (30) days or more, Tenant shall thereafter have the option of terminating this Lease in its sole discretion, provided that notice thereof is given to the Landlord not later than sixty (60) days after such damage or destruction. In such event, and as a condition to the effectiveness of Tenant's exercise of its right to so terminate this Lease, Tenant shall assign and/or pay to Landlord the sum of (i) all insurance proceeds payable under the policy or policies of insurance required by this Lease, plus (ii) an amount equal to the deductible under such policy or policies, (iii) any previously unpaid Rent due and payable through and including the termination date of this Lease together with all Rent due to the end of the Initial Term. In the event Tenant does not elect to terminate this Lease as provided in this Section 15(b), all insurance proceeds shall be made available for the restoration of the Damaged Premises.

  

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16.

	
WAIVER OF SUBROGATION

Notwithstanding any provision of this Lease to the contrary, Tenant waives any and all rights of recovery against Landlord for or arising out of damage to or destruction of, any personal property of Tenant, which damage or destruction is of a type insurable under "special form" or "all risk" insurance policies or endorsements available at the time such damage or destruction occurs (whether or not actually carried or required to be carried hereunder).

Without waiving or releasing Tenant's obligations to insure as set forth in this Lease, Landlord hereby waives any and all rights of recovery against Tenant for or arising out of damage to, or destruction of, the Property or the Building, but only to the extent recovery for such loss is actually received by Landlord from any "special form" or "all risk" insurance policies actually maintained by Landlord.

Landlord and Tenant each agree to give written notice of the terms of this mutual waiver to each insurance company which has issued, or in the future may issue, a policy of property insurance to such party. Each party shall also have each such insurance policy properly endorsed, if necessary, to prevent the invalidation of such insurance coverage by reason of such waiver, and furnish evidence to the other of the insurer's consent to such waiver. Tenant shall obtain from its insurers and deliver to Landlord, and Landlord shall obtain from its insurers and deliver to Tenant, endorsements or written waivers of subrogation, or other written evidence satisfactory to the other party, that each insurer is bound by such party's waiver of subrogation. Tenant acknowledges and agrees that Landlord has no present or future obligation to maintain policies of insurance under this Lease.

	
17.

	
CONDEMNATION - EMINENT DOMAIN

	
  

	
17.1

	
Taking Awards.

(a)           Except as hereinafter expressly stated in this Section 17.1, Landlord reserves and accepts all rights to awards for damages to the Property and Tenant reserves and shall have all rights to awards, compensation or damages related to Tenant's rights, property and business and the value of the leasehold hereby created and held by Tenant (but only so long as such awards, compensation or damages do not diminish Landlord's recovery), now accrued or hereafter accruing by reason of anything lawfully done in pursuance of any public or other authority.

(b)           If under applicable law Tenant shall have the right to claim and recover from the condemning authority such compensation as may be awarded or recoverable by Tenant in Tenant's own right on account of any and all damage to Tenant's business and/or Tenant's leasehold interest, by reason of any taking, Tenant will be entitled to seek such award only so long as such award does not diminish Landlord's recovery. The Tenant shall also be entitled in any event to seek and recover its own award for Tenant's moving expenses and damage or loss to trade fixtures. In addition, in the event the Tenant is unable under applicable law to seek its own separate award and if the final award granted to the Landlord includes an itemized award for Tenant's loss of its leasehold interest and/or damage to its business interests in addition to the award for Landlord's damages as aforesaid to the Property, the Landlord agrees to pay to the Tenant its itemized share of the final award, Tenant agreeing that the award is subordinate to Landlord's rights hereunder.

  

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17.2        Tenant's Termination Rights. Tenant shall have the option to terminate this Lease on a date selected by Tenant if any of the following events shall occur as the result of a taking in condemnation proceedings, or by exercise of any right of eminent domain, or by agreement between the Landlord and those authorized to exercise the same: (i) any material portion of the Building is taken; (ii) any material portion of the access to the Property is taken; or (iii) any portion of the Property is taken so as to materially adversely interfere with Tenant's use of the Property, including, but not limited to a material reduction of available parking. For the purposes of this Section 17.2, a "material portion" of the Building or Property will be deemed to have been taken if the portion of the Building or Property not so taken is unsuitable in Tenant's reasonable opinion for the Tenant's continued business use of the Property. This Lease will automatically terminate, effective as of the taking, if all of the Property or Building is taken. If the Tenant desires to exercise its termination right as herein provided, the Tenant must give the Landlord written notice of same within ninety (90) days after the taking occurs and the Tenant acquires actual knowledge of same by written notice from Landlord. If the Lease is terminated pursuant to this Section 17.2, this Lease will terminate on the date that Tenant is required to vacate the Property or portion thereof or is deprived of access, or use, as aforesaid.

17.3        Restoration. If this Lease is not terminated pursuant to Section 17.2, the award received by the Landlord will first be used to fund the cost of restoring what remains of the Property after such taking after application of any award received by Tenant or to which Tenant is entitled, if any. Any balance held by the Landlord after the payment of such costs will be retained by the Landlord. If the Lease is not terminated pursuant to Section 17.2, the Yearly Fixed Rent, Additional Rent and all other payments required to be made by the Tenant hereunder will be equitably abated and reduced if the condemnation or eminent domain proceeding involves the Property or affects Tenant's use and enjoyment of same.

 

17.4        Relocation Benefits. Tenant shall have the sole and exclusive right to any and all federal or state relocation benefits, if any.

	
18.

	
DEFAULT

18.1        Default. The Tenant will be in default under this Lease upon the occurrence of any of the following events or conditions: (i) the Tenant's failure to pay the Rent or any other sum of money payable to Landlord at the times and in the manner provided for herein, such failure having continued uncured for a period of ten (10) Business Days after written notice of such non-payment is given by the Landlord to the Tenant as provided in Article 24 hereof, provided that Landlord shall not be obligated to send written notice of failure to pay more than four (4) times in any consecutive twelve (12) month period; (ii) the Tenant's failure to perform or fulfill any other material term, condition or agreement contained or referred to herein, on the part of the Tenant to be performed or fulfilled, such failure having continued for a period of sixty (60) days after written notice thereof shall have been given by the Landlord to the Tenant as provided in Article 24 hereof; provided, however if the default is of such a nature that it cannot be cured within said sixty (60) day period, the Tenant will not be deemed in default provided the Tenant commences to cure the default within said sixty (60) day period and thereafter continuously prosecutes such cure to completion in good faith and with diligence; or (iii) the Tenant's being adjudged bankrupt or insolvent, or voluntarily or involuntarily taking advantage of any of the provisions of the Bankruptcy Code, (provided, however, with respect to any involuntary bankruptcy, such bankruptcy proceeding is not dismissed within ninety (90) days of the filing thereof) or making a general assignment for the benefit of creditors, or a receiver being appointed for its property and estate and such receivership is not terminated or dismissed within ninety (90) days of the filing thereof.

 

  

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18.2        Entry. In the event of any default under Section 18.1 which remains uncured, the Landlord may, at the Landlord's option, terminate this Lease or terminate Tenant's right to possession of the Property without terminating this Lease, and, as permitted by law, enter upon the Property and expel the Tenant and those claiming under the Tenant, without being guilty of any manner of trespass, and thenceforth peacefully and quietly hold and enjoy the Property as if this Lease had not been made; without prejudice, however, to any right to sue for and recover any rent and other sums then due under this Lease, or to any claim for damages or right of action or remedy for preceding breach of covenant, agreement or condition herein contained which the Landlord might otherwise have or use.

18.3        Lost Rent. In case of entry with or without termination of this Lease as herein above provided and subject to Landlord's obligations as set forth in Section 18.5, Tenant will indemnify Landlord against all loss of Rent payable hereunder which it may incur during the residue of the then Term (excluding any unexercised option to extend contained herein). At the time of the termination of this Lease, termination of Tenant's right to possession of the Property without terminating this Lease, or at any time thereafter, Landlord may rent the Property, and for a term which may expire after the expiration of the Term of this Lease, and Tenant shall be liable for any reasonable expenses (including reasonable attorneys fees, brokerage fees and expenses of cleaning the Property for reletting) incurred by Landlord in connection with obtaining possession of the Property and with removing from the Property personal property and fixtures of Tenant and persons claiming under it, and any monies collected from any reletting shall be applied first to the foregoing expenses and then to the payment of Rent and all other payments due from Tenant to Landlord.

18.4        Right to Lease. Or, in the event of default, alternatively, at the Landlord's option, the Landlord may enter upon the Property, and if the Landlord desires, expel Tenant and those claiming under the Tenant, without being guilty of any manner of trespass, and may rent the Property, applying the net proceeds of such rents on account of the Rent and other sums due from the Tenant, holding the Tenant (after payment of the aforementioned expenses) liable for any deficiency.

18.5        Mitigation. The Landlord agrees in all events to use commercially reasonable efforts to mitigate its damages by retaining a qualified commercial real estate broker to relet the Property who shall use commercially reasonable marketing efforts.

 

18.6        Landlord's Rights Cumulative. No right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remedy, and every right and remedy shall be cumulative and in addition to any other right or remedy given hereunder or now or hereafter existing at law or in equity, subject to the limitations set forth in Section 23 herein.

  

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19.

	
END OF TERM - ABANDONED PROPERTY

Upon the expiration or other termination of the Term of this Lease, Tenant shall peaceably quit and surrender to Landlord the Property in broom clean in good order, repair and condition, excepting only reasonable use and wear and damage by fire or other casualty for which, under other provisions of this Lease, Tenant has no responsibility of repair or restoration, but subject in every event to terms of Article 15 hereof, and subject to the provisions of Article 9 herein. Tenant's obligation to observe or perform this covenant shall survive the expiration or other termination of the Term of this Lease. If the last day of the Term of this Lease or any renewal thereof falls on a day other than a Business Day, this Lease shall expire on the Business Day immediately preceding. Tenant shall pay one and one-quarter times the amount of Rent applicable to each month (or fraction thereof) during which Tenant remains in possession of any part of the Property in violation of the foregoing covenants, without prejudice to eviction and any other remedy available to Landlord on account thereof. Notwithstanding the foregoing, in no event shall Tenant be liable for any type of consequential damages (including but not limited to any loss of profits) in connection with Tenant's holding over and failure to redeliver possession of the Property to Landlord following the expiration or other termination of the Term of this Lease.

Any Tenant's Personal Property which shall remain in the Building or on the Property after the expiration or termination of the Term of this Lease shall be conclusively deemed to have been abandoned thirty (30) days following such expiration or termination of the Term of this Lease, and may thereafter be disposed of in such manner as Landlord may see fit.

	
20.

	
SUBORDINATION

The rights and interests of Tenant under this Lease shall be subject and subordinate to the lien of any Mortgage that may hereafter be placed upon the Property by the Landlord, if the Mortgagee shall elect, by written notice delivered to Tenant, to subject and subordinate the rights and interest of Tenant under this Lease to the lien of its Mortgage, on the condition that such Mortgagee shall enter into a written agreement in recordable form, in form and substance substantially in accordance with the form attached hereto as Exhibit C ("Nondisturbance Agreement"), wherein the Mortgagee shall agree (i) to recognize Tenant's rights under this Lease and to be bound to Tenant under all of the terms, covenants and conditions of this Lease and (ii) not to disturb Tenant's occupancy of the Property, notwithstanding foreclosure of the Mortgage so long as Tenant is not in default beyond any applicable grace periods. In the event of such election, and upon execution of the Nondisturbance Agreement in favor of the Tenant, the rights and interest of Tenant under this Lease shall be deemed to be subordinate to the lien of the Mortgage. Upon not less than fifteen (15) days prior written notice by Landlord or Mortgagee, Tenant agrees to execute, acknowledge and deliver to Mortgagee the Non-Disturbance Agreement.

	
21.

	
QUIET ENJOYMENT

Landlord covenants that if, and so long as, Tenant keeps and performs its obligations herein contained on the part and on behalf of Tenant to be kept and performed, Tenant shall quietly enjoy the Property free of molestation from any person claiming by, through or under Landlord, subject, nevertheless, to the covenants, agreements, terms, provisions and conditions of this Lease.

  

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22.

	
ENTIRE AGREEMENT - WAIVER

22.1        Entire Agreement. This Lease and the Exhibits made a part hereof contain the entire and only agreement between the parties with respect to Tenant's leasing of the Property and any and all statements and representations, written and oral, including previous correspondence and agreements between the parties hereto, are merged herein. Any executory agreement hereafter made shall be ineffective to change, modify, discharge or effect an abandonment of this Lease in whole or in part unless such executory agreement is in writing and signed by the party against whom enforcement of the change, modification, discharge or abandonment is sought. Nothing herein shall prevent the parties from agreeing to amend this Lease and the Exhibits made a part hereof as long as such amendment shall be in writing and shall be duly signed by both parties.

22.2        Waiver. The failure of either Landlord or Tenant to seek redress for violation, or to insist upon the strict performance, of any covenant or condition of this Lease, or any of the Rules and Regulations promulgated hereunder, shall not prevent a subsequent act, which would have originally constituted a violation, from having all the force and effect of an original violation. The receipt by Landlord of Rent with knowledge of the breach of any covenant of this Lease shall not be deemed a waiver of such breach. No payment by Tenant or receipt by Landlord of a lesser amount than the monthly Rent herein stipulated shall be deemed to be other than on account of the stipulated Rent, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as Rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such Rent or pursue any other remedy in this Lease provided. No payment of Rent by Tenant shall be deemed to waive any default or failure of Landlord.

	
23.

	
EXCULPATORY CLAUSE

Tenant shall neither assert nor seek to enforce any claim for breach of this Lease against any of Landlord's assets other than Landlord's interest in the Property and in the rents, issues, proceeds and profits thereof, and Tenant agrees to look solely to such interest for the satisfaction of any liability of Landlord under this Lease, it being specifically agreed that in no event shall Landlord (which term shall include, without limitation any of the officers, trustees, directors, partners, beneficiaries, joint venturers, members, managers, stockholders or other principals or representatives, disclosed or undisclosed, of Landlord or any managing agent) ever be personally liable for any such liability. This paragraph shall not limit any right that Tenant might otherwise have to obtain injunctive relief against Landlord or to take any other action which shall not involve the personal liability of Landlord to respond in monetary damages from Landlord's assets other than the Landlord's interest in said real estate, as aforesaid. Notwithstanding anything contained in this Lease to the contrary, in no event and under no circumstance: (i) shall Landlord be liable, or in any way responsible, to Tenant for consequential damages of any nature or (ii) shall Tenant be liable, or in any way responsible, to Landlord for consequential damages of any nature.

  

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24.

	
NOTICES

No notice, approval, consent or other communication permitted or required to be given by this Lease will be effective unless the same is delivered during normal business hours; (i) by hand, (ii) by overnight carrier, or (iii) sent postage prepaid, by United States registered or certified mail, all to be return receipt requested, to the other party at the following addresses (or to such other address as any party may designate by written notice as aforesaid):

If to the Landlord:

c/o American Realty Capital, LLC

1725 The Fairway

Jenkintown, PA 19046

Attention: William Kahane

Telephone: (215) 887-3054

Telecopy: (215) 887-2585

With A Copy To:

Wolf, Block, Schorr and Solis-Cohen LLP

1650 Arch Street, 22nd Floor

Philadelphia, PA 19103

Attention: Helene S. Jaron, Esquire

Telephone: (215)977-2038

Telecopy: (215)405-2938

If to the Tenant:

Rockland Trust Company

288 Union Street

Rockland, MA 02370

Attention: Robert F. Gearty, Jr., Senior Vice President

Telephone:781-982-6113

Telecopy: 781-982-6365

With A Copy To:

Rockland Trust Company

288 Union Street

Rockland, MA 02370

Attention: Edward H. Seksay, General Counsel

Telephone: 781 -982-6158

Telecopy: 781-982-6130

and

Hinckley, Allen & Snyder LLP

28 State Street

Boston, Massachusetts 02109

Attention: Paul A. Hedstrom, Esq.

Telephone:    (617)345-9000

Telecopy:      (617)345-9020

 

  

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25.

	
PARTIES BOUND

 

The covenants, agreements, terms, provisions and conditions of this Lease shall bind and benefit the successors and assigns of the parties hereto with the same effect as if mentioned in each instance where a party hereto is named or referred to.

 

If in connection with or as a consequence of the sale, transfer or other disposition of the real estate (Land and/or Building, either or both, as the case may be) of which the Property are a part Landlord ceases to be the owner of the reversionary interest in the Property, Landlord shall be entirely freed and relieved from the performance and observance thereafter of all covenants and obligations hereunder accruing thereafter on the part of Landlord to be performed and observed, it being understood and agreed in such event (and it shall be deemed and construed as a covenant running with the land) that the person succeeding to Landlord's ownership of said reversionary interest shall thereupon and thereafter assume, and perform and observe, any and all of such covenants and obligations of Landlord, subject to the terms of the Nondisturbance Agreement.

 

	
26.

	
MISCELLANEOUS

 

26.1     Separability. If any provision of this Lease or portion of such provision or the application thereof to any person or circumstance is for any reason held invalid or unenforceable, the remainder of the Lease (or the remainder of such provision) and the application thereof to other persons or circumstances shall not be affected thereby.

 

26.2     Captions. The captions are inserted only as a matter of convenience and for reference, and in no way define, limit or describe the scope of this Lease nor the intent of any provisions thereof.

 

26.3     Governing Law. This Lease is made pursuant to, and shall be governed by, and construed in accordance with, the laws of the state in which the Property is located. Any disputes regarding this Lease shall be resolved in the courts of the state in which the Property is located. The Landlord and the Tenant consent to the jurisdiction of the courts of the state in which the Property is located.

 

26.4     Assignment of Lease and/or Rents. With reference to any assignment by Landlord of its interest in this Lease and/or the Rent payable hereunder, conditional in nature or otherwise, which assignment is made to or held by a bank, trust company, insurance company or other institutional lender holding a Mortgage on the Building, Landlord and Tenant agree:

  

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(a)       that the execution thereof by Landlord and acceptance thereof by such Mortgagee shall never be deemed an assumption by such Mortgagee of any of the obligations of the Landlord hereunder, unless such Mortgagee shall, by written notice sent to the Tenant, specifically otherwise elect; and

 

(b)       that, except as aforesaid, such Mortgagee shall be treated as having assumed the Landlord's obligations hereunder only upon foreclosure of such Mortgagee's Mortgage and/or the taking of possession of the Property, subject to the terms of the Nondisturbance Agreement with respect to such Mortgage.

 

26.5     Memorandum of Lease. Neither party shall record this Lease in any governmental registry or recording office, provided however that either party shall at the request of the other, execute and deliver a recordable memorandum or notice of this Lease which may be registered or recorded by either party.

 

26.6     Estoppel Certificate. Upon not less than fifteen (15) days prior notice by either party, Landlord and Tenant agree to execute, acknowledge and deliver to the other party, and to any assignee, mortgagee, lender or any other third party which either may designate, a statement in writing in the form attached hereto as Exhibit D and made a part hereof.

 

	
27.

	
RIGHT OF FIRST OFFER

 

Landlord hereby grants to Tenant a right of first offer with respect to the sale of the Property. In the event Landlord shall decide to sell the Property, the terms and conditions on which Landlord is willing to sell shall be conveyed to Tenant in writing. Thereafter, Tenant shall have thirty (30) days within which to accept said terms and conditions in writing. In the event of Tenant's acceptance of such offer, Landlord shall sell the Property to Tenant pursuant to the terms and conditions of said offer. Should Tenant fail to accept such offer Landlord may sell the Property to a third party during the next one hundred eighty (180) days following the earlier to occur of (i) Tenant's notice to Landlord declining such offer to purchase, or (ii) the expiration of the thirty (30) day period in which Tenant has to respond to such offer, provided that the terms and conditions for such sale are no more favorable to the buyer than those terms and conditions offered to Tenant. Notwithstanding the foregoing, in the event Tenant does not respond in writing to Landlord's notice within the thirty (30) day period, Tenant shall be deemed to have waived its right to the offer presented. In the event Landlord does not sell the Property during such one hundred eighty (180) day period, this right of first offer shall continue to exist as to any proposed subsequent sale. In no event shall Landlord have the right during the Term or any Extended Term to sell less than the entire Property. The Tenant hereby acknowledges and agrees that any sale, transfer or other conveyance (each a "Transfer") of the Property, and any proposed Transfer of the Property to any person or entity (whether now existing or formed hereinafter) which is a direct or indirect affiliate of the Landlord shall not be subject to the provisions of this Section 27 and the right of first offer contemplated hereby shall not be applicable with respect to any such Transfer or proposed Transfer. For the purposes hereof, "affiliate" shall mean and include any person or entity controlling, controlled by or under common control with the Landlord. Tenant's right of first offer shall not apply to remedial actions of any lender in the event of a default by Landlord of its loan including, but not limited to foreclosure, a deed in lieu of foreclosure or to a subsequent sale by the lender following foreclosure.

  

- 20 -

 

	
28.

	
TELECOMMUNICATIONS AND ROOFTOP INSTALLATIONS

 

Without limiting the other provisions of this Lease, Tenant is hereby granted the right, subject to applicable law, to install its telecommunications equipment, antennas, satellite dishes, and various related equipment (collectively the "Rooftop Improvements") on the roof of the Building (the "Roof") and for the installation, operation and maintenance of the Rooftop Improvements, at Tenant's sole cost and expense and subject to applicable laws and regulations.

 

	
29.

	
ACCOUNTING

 

The Landlord acknowledges that it is the Tenant's intent to have this Lease treated as a so-called "operating lease" for accounting purposes, and that the transaction to which this Lease is part being treated as, and have the benefit of, sale-leaseback accounting (together "Accounting Requirements"). In the event Tenant reasonably requests that modifications be made to this Lease in order to comply with Accounting Requirements, then Landlord agrees to cooperate in good faith to make such reasonably requested changes to this Lease as are requested by Tenant in order to comply with the Accounting Requirements, provided that the same shall not modify the Rent payable by Tenant or the Term of this Lease, adversely affect any rights and remedies of Landlord under this Lease or impose any additional obligations on Landlord under this Lease.

 

[Page ends here; signature(s) follow]

  

- 21 -

 

 

IN WITNESS WHEREOF, Landlord and Tenant have caused this instrument to be executed under seal, all as of the day and year first above written.

 

	
WITNESS:

	  	
LANDLORD:

	  	  	  
	  	  	
ARC ROCK17MA LLC, a Delaware limited

liability company

	  	  	  	  
	
[illegible]

	  	
By: 

	
/s/ William Kahane

	  	  	  	
William Kahane, its President, hereunto duly

authorized

	 	 	 
	  	  	
TENANT:

	  	  	  
	  	  	
ROCKLAND TRUST COMPANY, a

Massachusetts trust company

	  	  	  	  
	  	  	
By:

	   
	  	  	  	
Robert F. Gearty, Jr., its Senior Vice President,

hereunto duly authorized

 

  

  

  

 

IN WITNESS WHEREOF, Landlord and Tenant have caused this instrument to be executed under seal, all as of the day and year first above written.

	
WITNESS:

	  	
LANDLORD:

	  	  	  
	  	  	
ARC ROCK17MA LLC, a Delaware limited 

liability company

	  	  	  	  
	  	  	
By:

	  
	  	  	  	
William Kahane, its President, hereunto duly

authorized

	  	  	  	  
	  	  	
TENANT:

	  	  	  
	  	  	
ROCKLAND TRUST COMPANY, a 

Massachusetts trust company

	  	  	  	  
	/s/ Kristen A. York	  	
By:

	/s/ Robert F. Gearty, Jr.
	
Kristen A. York

	  	  	
Robert F. Gearty, Jr., its Senior Vice President,

hereunto duly authorized

  

  

 

 

EXHIBIT A

 

DESCRIPTION OF PROPERTY

 

319874-14

912 & 932 Main Street

Dennis, MA

 

Those certain parcels of land situated in Dennis, Barnstable County, Massachusetts, more particularly described as follows:

 

Parcel 1:

 

Southerly by State Highway, one hundred thirty-eight and 00/100 (138.00) feet;

 

Southwesterly by a Town Way known as Pine Street, one hundred ninety-two and 94/100 (192.94) feet;

 

Northerly twenty and 00/100 (20.00) feet; 

 

Easterly ten and 00/100 (10.00) feet;

 

Northerly by Lots 9 and 12 as shown on Land Court Plan 15013F & G, one hundred fourteen and 44/100 (114.44) feet;

 

Westerly by Lot 12, as shown on Land Court Plan 15013G, in two courses totaling one hundred thirty-nine and 31/100 (139.31) feet;

 

Northerly by Ann's Path, fifty-five and 8/100 (55.08) feet;

 

Easterly by Lot 33A on Land Court Plan 19213L-1, fourteen and 63/100 (14.63) feet; 

 

Northerly by last-named land, twenty and 00/100 (20.00) feet; 

 

Easterly by last-named land, eighty-eight and 72/100 (88.72) feet; 

 

Northerly by last-named land, eighty-two and 1/100 (82.01) feet;

 

Easterly by last-named land and Lot 7 as shown on Land Court Plan 19213-C, two hundred forty-eight and 72/100 (248.72) feet.

 

All of said boundaries are determined by the Court to be located as shown on subdivision plan 15013-H, dated April 14, 1989, drawn by Down Cape Engineering, Inc., and filed in the Land Registration Office at Boston, a copy of which is filed in Barnstable County Registry of Deeds in Land Registration Book 594, Page 11 with Certificate of Title No. 73361 and said land is shown as Lot 16.

  

  

 

 

Parcel 2:

 

Easterly by Route 134, One Hundred Sixty-Six and 51/100 (166.51) feet;

 

Southeasterly by the junction of said Route 134 and the State Highway (Route 28), Fifty-Three and 77/100 (53.77) feet;

Southerly by said State Highway, One Hundred Thirty-Four and 61/100 (134.61) feet;

Westerly by a portion of Lot 4, (Plan 15013-C) two hundred (200) feet;

Northerly by Lot 6, One Hundred Forty-Six and 88/100 (146.88) feet.

 

All of said boundaries are determined by the Court to be located as shown on subdivision plan 19213-C, dated March 1965, drawn by Charles S. Kennedy, Surveyor, and filed in the Land Registration Office at Boston, a copy of which is filed in Barnstable County Registry of Deeds in Land Registration Book 14, Page 77 with Certificate of Title No. 3407 and said land is shown as Lot 7.

 

BEING the same premises as described in a Deed from Fleet National Bank, dated August 4, 2000, filed with the Barnstable County Registry District of the Land Court as Document No. 807822 as noted on Certificate of Title No. 158634.

  

  

 

 

EXHIBIT B

 

MARKET RENT

 

The market rent for the Property shall be the then fair market rent for similar properties in the market in which the Property is located (with similar improvements and tenants of similar credit worthiness), which such rent (the "Market Rent") shall be determined as follows:

 

	
  

	
(a)

	
The Market Rent shall be proposed by Landlord in good faith within ten (10) days of receipt of Tenant's notice that it intends to exercise its option to extend the Term (the "Landlord's Proposed Market Rent"). The Landlord's Proposed Market Rent shall be the Market Rent unless Tenant notifies Landlord, within thirty (30) days of Tenant's receipt of Landlord's Proposed Market Rent, that Landlord's Proposed Market Rent is not satisfactory to Tenant ("Tenant's Rejection Notice").

 

	
  

	
(b)

	
If Tenant delivers Tenant's Rejection Notice and the Market Rent is not otherwise agreed upon by Landlord and Tenant within thirty (30) days after Landlord's receipt of Tenant's notice that it intends to exercise its option to extend the Term, then the Market Rent shall be determined by the following appraisal procedures:

 

	
  

	
1.

	
Within ten (10) days of the expiration of said thirty (30) day period Tenant shall give notice to Landlord, which notice shall specify the name and address of the appraiser designated by Tenant (the "Tenant's Appraisal Notice"). Landlord shall within ten (10) days after receipt of Tenant's Appraisal Notice, notify Tenant of the name and address of the appraiser designated by Landlord. Such two appraisers shall, within thirty (30) days after the designation of the second appraiser, make their determinations of the Market Rent in writing and give notice thereof to each other and to Landlord and Tenant. Such two (2) appraisers shall have thirty (30) days after the receipt of notice of each other's determination to confer with each other and to attempt to reach agreement as to the determination of the Market Rent. If such appraiser shall concur in such determination, they shall give notice thereof to Landlord and Tenant and such concurrence shall be final and binding upon Landlord and Tenant. If such appraisers shall fail to concur as to such determination within said thirty (30) day period, they shall give notice thereof to Landlord and Tenant and shall immediately designate a third appraiser. If the two appraisers shall fail to agree upon the designation of such third appraiser within ten (10) days after said thirty (30) day period, then they or either of them shall give notice of such failure to agree to Landlord and Tenant and if Landlord and Tenant fail to agree upon the selection of such third appraiser within ten (10) days after the appraiser(s) appointed by the parties give notice as aforesaid, then either party on behalf of both may apply to the American Arbitration Association or any successor thereto, or on his or her failure, refusal or inability to act, to a court of competent jurisdiction, for the designation of such third appraiser.

  

  

 

 

	
  

	
2.

	
All appraisers shall be independent real estate appraisers or consultants who shall have had at least five (5) years continuous experience in the business of appraising real estate in the relevant area.

 

	
  

	
3.

	
The third appraiser shall conduct such hearings and investigations as he or she may deem appropriate and shall, within ten (10) days after the date of his or her designation, make an independent determination, of the Market Rent.

 

	
  

	
4.

	
If none of the determinations of the appraisers varies from the mean of the determinations of the other appraisers by more than ten percent (10%), the mean of the determinations of the three (3) appraisers shall be the Market Rent for the Property. If, on the other hand, the determination of any single appraiser varies from the mean of the determinations of the two (2) appraisers by more than ten percent (10%), the mean of the determination of the two (2) appraisers whose determinations are closest shall be the Market Rent.

 

	
  

	
5.

	
Subject to Tenant's right to withdraw its election to extend as set forth below, the determination of the appraisers, as provided above, shall be conclusive upon the parties and shall have the same force and effect as a judgment made in a court of competent jurisdiction.

 

	
  

	
6.

	
Each party shall pay fees, costs and expenses of the appraiser selected by it, its own counsel fees, and one-half (1/2) of all other expenses and fees of any such appraisal.

 

Notwithstanding the foregoing or any language in this Lease to the contrary, it is hereby acknowledged and agreed that upon determination of the Yearly Fixed Rent for any of the Extended Terms, Tenant shall have the right to withdraw its earlier notice to extend by giving written notice to Landlord to such effect on or before such date which is thirty (30) Days of establishing the Yearly Fixed Rent; provided, however, Tenant reimburses Landlord for the costs and expenses reasonably incurred by Landlord in appraising the Market Rent pursuant to this Exhibit B. Upon expiration of said thirty (30) day period, Tenant shall have waived its right to withdraw its election to extend.

  

- 2 -

 

Exhibit B-l

 

Existing Repairs

	
REPAIR ITEM(S)

	 	
TIME PERIOD

	  	 	  
	
Installation of new septic system

	 	
Within twenty four months of Closing.

  

  

 

 

EXHIBIT C

 

SUBORDINATION, NON-DISTURBANCE 

AND ATTORNMENT AGREEMENT

 

THIS AGREEMENT made as of the          day of                    ,        by and among                    , having a place of business at                                , ("Lender"), Rockland Trust Company, having a place of business at 288 Union Street, Rockland, MA 02370 ("Tenant") and , a Massachusetts trust company, having an address at                                                                            ("Landlord").

 

WITNESSETH:

 

WHEREAS, Landlord and Tenant are parties to a Lease Agreement dated                      ,            (said lease, as heretofore or hereafter amended, modified or supplemented, is hereinafter called the "Lease"), with respect to certain real property located at                                                , as more particularly describe on Exhibit A hereto (the "Premises"); and,

 

WHEREAS, Lender has made various loans to Landlord and                         , which loans are secured by a certain Mortgage, Security Agreement and Financing Statements, dated of even date therewith, from Landlord to Lender (collectively the "Mortgage"), which Mortgage encumbers the Premises and Landlord's interest in the Lease; and,

 

WHEREAS, Lender and Tenant desire to enter into this Agreement upon the terms, covenants and conditions contained herein.

 

NOW, THEREFORE, in consideration of the promises and the agreements of the parties contained herein, the parties agree as follows:

 

1.           The Lease is and shall be at all times and in all respects subordinate to the lien of the Mortgage, and to all advances made and/or hereafter to be secured by the Mortgage and to all renewals, modifications, consolidations, substitutions, additions and extensions of the Mortgage.

 

2.           Provided that Tenant complies with this Agreement, and if Tenant shall not be in default under the Lease as of the date Lender commences a foreclosure action, or at any time thereafter: (a) Tenant shall not be named as a party defendant in any action or proceeding to enforce the Mortgage, unless such joinder shall be required under applicable law, nor shall the Lease be cut off or terminated nor Tenant's possession thereunder be disturbed in any such action or proceeding, and (b) subject to the provisions of Section 4 of this Agreement, Lender will recognize the Lease and Tenant's rights thereunder.

 

3.           Upon any foreclosure of the Mortgage or other acquisition of the Premises, Tenant shall attorn to Lender or any other party acquiring the Premises or so succeeding to Landlord's rights (collectively, the "Successor Landlord") and shall recognize the Successor Landlord as its landlord under the Lease. Said attornment shall be effective and self-operative without the execution on the part of any party of any further instrument. Tenant, however, further covenants and agrees to execute and deliver upon request to Lender an appropriate agreement of attornment to Lender and subsequent title holder of the Premises. Without limiting the foregoing, Tenant waives the provisions of, and any rights under, any statute or rule of law, now or hereafter in effect, which might otherwise give, or purport to give, any right or election to terminate or otherwise adversely affect the Lease and the obligations of Tenant thereunder in the event of said foreclosure or other acquisition.

  

  

 

 

4.           Upon said attornment, the Lease shall continue as a direct lease between the Successor Landlord and Tenant upon all terms, covenants and conditions thereof as are then applicable except that the Successor Landlord shall not be (a) liable for any damages then accrued as the result of any previous act or omission of Landlord or any prior landlord under the Lease, (b) subject to any offsets or defenses that Tenant then has against Landlord or any prior landlord, (c) bound by any amendment or modification of the Lease hereafter executed, or the obligations of the parties thereto, unless said amendment or modification shall have been consented to in writing by the successor Landlord or Lender, or (d) bound by any prepayment of more than one (1) month's rent or other charges under the Lease, unless such payment shall have been made in accordance with the terms of the Lease or shall have been expressly approved in writing by Lender.

 

5.           Lender shall have no obligation or incur any liability with respect to the construction or completion of the improvements in which the Premises are located or for completion of the Premises or any improvements for Tenant's use and occupancy. Lender shall have no obligations nor incur any liability with respect to any warranties of any nature whatsoever, including, without limitation, any warranties respecting use, compliance with zoning, hazardous wastes or environmental laws, Landlord's title, Landlord's authority, habitability, fitness for purpose or possession. In the event that Lender shall acquire title to the Property, Lender shall have no obligation, nor incur any liability, beyond Lender's then equity interest, if any, in the Premises, and Tenant shall look exclusively to such equity interest of Lender, if any, in the Premises for the payment and discharge of any obligations or liability imposed upon Lender hereunder, under the Lease or under any new lease of the Premises.

 

6.           Tenant, from and after the date hereof, shall send to Lender a copy of any notice of default sent under the Lease to Landlord at the same time such notice is sent to Landlord under the Lease. Such notices shall be delivered to Lender at the following address:

	  	
  

	  
	  	
  

	  
	  	
   

	  

 

No such notice of default shall be deemed given to Landlord unless and until a copy of such notice shall have been so delivered to Lender. Lender shall have the same right to remedy any Landlord default under the Lease, or to cause any default of Landlord under the Lease to be remedied, as Landlord has under and pursuant to the terms of the Lease. Tenant shall accept performance by Lender of any term, covenant, condition or agreement to be performed by Landlord under the Lease with the same force and effect as though performed by Landlord.

  

- 2 -

 

 

7.           Tenant acknowledges notice that Landlord's interest under the Lease and the rent and all other sums due thereunder have been assigned to Lender as part of the security for repayment of the loans secured by the Mortgage, and Tenant hereby expressly consents to such assignment. In the event that Lender notifies Tenant of a default under the Mortgage and demands that Tenant pay its rent and all other sums due under the Lease to Lender, Tenant agrees that it shall pay its rent and all other sums due under the Lease to Lender. Landlord joins in the execution hereof for the purpose of consenting to the provisions of this Section.

 

8.           Lender shall not, either by virtue of the Mortgage or this Agreement, be or become a mortgagee in possession or be or become subject to any liability or obligation under the Lease or otherwise until Lender shall have acquired the interest of Landlord in the Premises, by foreclosure or otherwise, and then such liability or obligation of Lender under the Lease shall extend only to those liabilities or obligations accruing subsequent to the date that Lender has acquired the interest of Landlord in the Premises as modified by the terms of this Agreement.

 

9.           Any provision of the Lease to the contrary notwithstanding, the right of first offer provisions set forth in Section 27 of the Lease shall not apply to any sale, conveyance or other transfer of the Premises to Lender or its designee in connection with any foreclosure, conveyance or assignment in lieu of foreclosure, or other exercise by Lender of any right or remedy available to Lender in connection with or under the Mortgage.

 

10.         This Agreement may not be amended, modified, supplemented or terminated unless in writing and duly executed by the party against whom the same is sought to be asserted and constitutes the entire agreement between the parties with respect to the subject matter hereof.

 

11.         This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.

 

  

- 3 -

  

 

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

	  	
LENDER:

	  	  
	  	
By:

	  
	  	  	  
	  	
TENANT:

	  	
ROCKLAND TRUST COMPANY

	  	  	  
	  	
By: 

	  
	  	  	
Name: Robert F. Gearty, Jr.

Title: Senior Vice President

	  	  	  
	  	
LANDLORD:

	  	  	  
	  	
By:

	  

  

- 4 -

 

 

STATE OF                                              

COUNTY OF                                         

 

On this the          day of                             ,            , before me, the undersigned officer, personally appeared                                 , who acknowledged herself to be a                                      of                        , and that         as such                                , being authorized so to do, executed the foregoing instrument for the purposes therein contained on behalf of                                                                                              .

	  	
Notary Public/Justice of the Peace

	  	
Print Name:                                                            

	  	
My Commission Expires:                                      

 

STATE OF                                              

COUNTY OF                                         

 

On this the          day of                             , before me, the undersigned officer, personally appeared                                      , who acknowledged himself/herself to be a                                      of                        , and that he/she as such                                , being authorized so to do, executed the foregoing instrument for the purposes therein contained on behalf of                                                                                       .

	  	
Notary Public/Justice of the Peace

	  	
Print Name:                                                            

	  	
My Commission Expires:                                      

 

STATE OF                                              

COUNTY OF                                         

 

On this the          day of                             , before me, the undersigned officer, personally appeared                                      , who acknowledged himself/herself to be a                                      of                       , and that he/she as such                                , being authorized so to do, executed the foregoing instrument for the purposes therein contained on behalf of                                                                                       .

	  	
Notary Public/Justice of the Peace

	  	
Print Name:                                                            

	  	
My Commission Expires:                                      

 

  

- 5 -

 

 

EXHIBIT D

 

ESTOPPEL CERTIFICATE

 

[insert date]

 

[insert name/address of recipient]

 

Re: [description of Property] 

 

Ladies and Gentlemen:

 

The undersigned ("Tenant") is the tenant under that certain lease dated between                            , as landlord, and                                                                                                    , as tenant. Tenant hereby certifies to you that, to the actual knowledge of the individual executing this certificate on behalf of Tenant, as of the date hereof:

 

	
  

	
1.

	
The Lease has not been modified or amended, except as follows                               (collectively the "Lease"). The Lease is in full force and effect and constitutes a complete statement of the agreements, covenants, terms and conditions under the Lease between                               ("Landlord") and Tenant with respect to the letting of the premises leased thereunder (the "Demised Premises"). Tenant has not given Landlord any notice of termination under the Lease.

 

	
  

	
2.

	
The Term Commencement Date under the Lease occurred as of                           , and the Expiration Date under the Lease is currently scheduled to occur on                                 .

 

	
  

	
3.

	
The "Yearly Fixed Rent" currently payable under the Lease is $                          .

 

	
  

	
4.

	
Tenant has not deposited any monies or instruments to secure any of its agreements or obligations under the Lease and has not paid any Rent or any other amounts due under the Lease for periods subsequent to                           .

 

	
  

	
5.

	
Tenant has no known defenses, offsets or counterclaims against its obligations to pay the Rent or any other charges and to perform its other covenants under the Lease. Tenant is entitled to no allowances, rent abatements, or other concessions.

 

	
  

	
6.

	
Tenant has             unexercised options to renew the Lease for up to successive periods of                                  years each. Except as expressly set forth in the Lease, Tenant does not have any right to lease additional space, reduce the size of the Demised Premises, extend the term of the Lease, terminate the Lease, purchase the Demised Premises or any other rights or options with respect to the Demised Premises.

  

  

 

 

	
  

	
7.

	
Tenant is in full and complete possession of the Demised Premises, has accepted the Demised Premises pursuant to the terms and provisions of the Lease, is open for and operating its business in compliance with the Lease and the Demised Premises are satisfactory for Tenant's purposes.

 

	
  

	
8.

	
To the best of Tenant's knowledge and belief, there are no rental, lease, or similar commissions payable with respect to the Lease, except as may be expressly set forth therein.

 

	
  

	
9.

	
Tenant is obligated to pay rent to Landlord at the rate set forth in the Lease. Tenant is current with respect to, and is paying the full rent and other charges stipulated in the Lease with no offsets, deductions, defenses or claims.

 

	
  

	
10.

	
Tenant has not received any notice from Landlord of any default by Tenant under the Lease that has not been cured.

 

	
  

	
11.

	
Tenant has no actual knowledge of any event which, with the giving of notice, the passage of time or both, would constitute a default by Tenant under the Lease.

 

	
  

	
12.

	
Tenant has not delivered to Landlord any notice of any default by Landlord under the Lease that has not been cured.

 

	
  

	
13.

	
Tenant has no actual knowledge of any event which, with the giving of notice, the passage of time or both, would constitute a default by Landlord under the Lease.

 

	
  

	
14.

	
Tenant has no actual knowledge of any existing defenses or offsets against the enforcement of the Lease.

 

	
  

	
15.

	
Tenant has not sublet, transferred, assigned or hypothecated its interest under the Lease except as follows:                                 .

 

	
  

	
16.

	
The party executing this certificate on behalf of Tenant is fully authorized and empowered to do so, and no consent, vote or approval is required which has not been given or taken.

 

	
  

	
17.

	
This certificate may not be changed, waived or discharged orally, but only by an instrument in writing.

 

	
  

	
18.

	
This certificate shall not have the effect of modifying any provision of the Lease.

 

Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Lease. The certifications herein made shall be binding upon Tenant, and shall inure to your benefit. Tenant acknowledges that you may rely on this certificate in conjunction with your [purchase and thereafter ownership and operation of the Property].

	 	
   

	 
	 	
By:

	 
	 	
Name: 

	 
	 	
Title:

	 

  

2

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