Document:

Exhibit 10.50

 

GROUND LEASE

 

THIS
GROUND LEASE (this “Lease”) is made as of the 8th day of October, 2010
(the “Effective Date”), by and between TENET
HIALEAH HEALTHSYSTEM, INC., a Florida corporation (“Landlord”)
and BH-AW HIALEAH, LLC (“Tenant”);
Landlord and Tenant are singularly referred to as a “Party” and
collectively referred to as the “Parties”).

 

FACTUAL BACKGROUND

 

A.            Landlord owns
certain land (the “Campus”) located in Hialeah, Miami-Dade County,
Florida, upon which Landlord operates an acute care hospital (the “Hospital”).  The Campus contains, among other
improvements, a 86,062 +/- square foot medical office building (such medical
office building is herein called the “MOB”) located on a portion of the
Campus consisting of approximately 0.52 +/- acres, and more particularly
described on Exhibit A attached hereto and made a part hereof by
this reference (the “Premises”).

 

B.            WHEREAS, pursuant to
that certain Purchase and Sale Agreement and Agreement to Enter Into Ground
Lease dated May 27, 2010, among Landlord, Tenant, and various other
parties, Landlord is selling the MOB to Tenant.

 

C.            WHEREAS, Landlord
desires to lease to Tenant and Tenant desires to lease from Landlord the
Premises on a “Triple Net Lease” basis.

 

NOW, THEREFORE, in consideration of the foregoing
factual background and the representations, warranties and conditions contained
in this Lease and for other good and valuable consideration, the receipt and
sufficiency of which are acknowledged by both parties, Landlord and Tenant
agree as follows:

 

ARTICLE 1

TERMS AND DEFINITIONS

 

1.1           Definitions. Except as otherwise expressly
provided, (i) the terms defined in this Section have the meanings
assigned to them in this Section and include the plural as well as the
singular; (ii) all accounting terms not otherwise defined herein have the
meanings assigned to them in accordance with generally accepted accounting
principles as of the time applicable; and (iii) the words “herein,” “hereof,”
and “hereunder” and similar words refer to this Lease as a whole and not to any
particular section.

 

“Acquisition
Financing” has the meaning set forth in Section 8.4.

 

“ADA”
means the federal statute entitled Americans with Disabilities Act, 42 U.S.C.
§12101, et seq., together with any similar state laws, rules and
regulations.

 

“Additional Rent” has the meaning set forth in Section 4.2.

 

 

“Affiliate”
means any Person that, directly or indirectly, controls, or is controlled by,
or is under common control with a Person. “Control” (and the correlative
meanings of the terms “controlled by” and “under common control with”) means
the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such entity.

 

“Appraised
Value” has the meaning set forth in Section 8.6.

 

“Approvals”
means all state, federal, county and municipal land use approvals and permits,
licenses, easements and utility agreements which are necessary for the
operations of the MOB.

 

“Approved
Marketing Plan” means a plan for the marketing of lease space within the
MOB, which Tenant and Landlord shall endeavor to mutually and reasonably agree
upon on the Effective Date and annually thereafter, that, as to leases in the
MOB, specifies, among other matters, the preferred term, range of rental rates,
guaranties, security deposits, and tenant concessions or allowances and also
specifies a preferred tenant mix for the MOB, including identification of
specific desired tenants and/or tenant groups. 
Each such Approved Marketing Plan shall remain in effect until
superseded by the next following Approved Marketing Plan. In the event Tenant
and Landlord, using commercially reasonable efforts, are unable to agree upon
all of the terms and conditions contained in the Approved Marketing Plan,
Tenant shall have the right in its sole discretion to determine those terms and
conditions of the Approved Marketing Plans that were not mutually approved by
Tenant and Landlord; provided, however, that in such event such terms and
conditions as determined by Tenant will be comparable to market terms and
conditions for similar medical office buildings in the Hialeah, Florida area.

 

“Attachments”
has the meaning set forth in Section 5.4.

 

“Bankruptcy
Code” means the federal Bankruptcy Code set forth in 11 U.S.C. §101 et.
seq., as amended from time to time.

 

“Base
Rent” has the meaning set forth in Section 4.1, as increased
from time to time pursuant to the terms of this Lease.

 

“Base
Rent Redetermination Date” has the meaning set forth in Section 4.1.

 

“Business
Day” means any day other than a Saturday, Sunday, or national holiday
recognized by commercial banks located in Hialeah, Florida or Dallas, Texas.

 

“Campus”
has the meaning set forth in Recital A.

 

“Change
of Ownership” has the meaning set forth in Section 9.1(c).

 

“Commencement
Date” has the meaning set forth in Section 3.1.

 

“Common
Areas” has the meaning set forth in Section 2.2.

 

2

 

“Competing
Facility” means, without limitation, any Person, or any Affiliate of such
Person, which: (i) directly or indirectly, owns, operates, controls,
manages, and/or provides consulting services to any of the following: (A) hospital;
(B) ambulatory surgical center; (C) diagnostic center; (D) medical
center clinic; or (E) facility which provides inpatient, outpatient, or
emergency healthcare services or any of the Prohibited Services, and/or (ii) owns,
controls or is a material investor in one or more of the foregoing facilities,
whether as an equity holder, lender, or otherwise (other than a bank or
institutional lender who either (1) makes a loan secured by a Competing
Facility, or (2) acquires a Competing Facility or an interest therein by
foreclosure or deed or assignment in lieu of foreclosure and such bank or
institutional lender is actively marketing such facility for sale), and/or (iii) is
an Affiliate of a Person described in subsections (i) or (ii), above.  In addition, a Competing Facility shall
include any facility which is any of (A) through (E) above.

 

“Condemnation
Authority” has the meaning set forth in Section 14.2.

 

“Effective
Date” means the date of this Lease.

 

“Environmental
Laws” means all federal, state, and local laws, ordinances and policies the
purpose of which is to protect human health and the environment, as amended
from time to time, including but not limited to: (i) CERCLA; (ii) the
Resource Conservation and Recovery Act; (iii) the Hazardous Materials
Transportation Act; (iv) the Clean Air Act; (v) Clean Water Act; (vi) the
Toxic Substances Control Act; (vii) the Occupational Safety and Health
Act; (viii) the Safe Drinking Water Act; and (ix) analogous state
laws and regulations of the State of Florida.

 

“Event
of Default” or “Default” has the meaning set forth in Section 17.1.

 

“Exclusion
Lists” has the meaning set forth in Section 22.24.

 

“Existing
Systems” has the meaning set forth in Section 2.6.

 

“Expiration
Date” has the meaning set forth in Section 3.1.

 

“Fiscal
Year” shall mean the calendar year of twelve (12) months from January 1
to December 31.

 

“Governmental
Authority(ies)” means the federal government, the State of Florida, the
County of Miami-Dade, the City of Hialeah, any other municipal corporation, any
branch, division, official, or agency thereof, any court, judge, or magistrate
thereof, or any quasi-governmental agency, board, panel, or district (be it
public, quasi-public, or private) exercising any authority or jurisdiction over
the MOB, the Premises, the Campus, either Party or this Lease.

 

“Government
Authorizations” means all Approvals, permits, licenses, consents, and
authorizations required to comply with all Legal Requirements, including but
not limited to, (i) zoning permits, variances, exceptions, special use
permits, conditional use permits, and consents; (ii) the permits,
licenses, provider agreements and approvals required for licensure and
operation of the MOB in accordance with its permitted use; (iii) environmental,
ecological, coastal, wetlands, air, and water permits, licenses, and consents; (iv) curb
cut, subdivision, land

 

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use,
and planning permits, licenses, approvals and consents; (v) building,
sign, fire, health, and safety permits, licenses, approvals, and consents; and (vi) architectural
reviews, approvals, and consents required under restrictive covenants.

 

“Hazardous
Materials” has the meaning set forth in Section 12.1.

 

“Improvements”
means the MOB, the Tenant Common Area Improvements, and any and all other
improvements located, placed, constructed or in the Premises.

 

“Improvements
Award” has the meaning set forth in Section 14.2.

 

“Ineligible
Person” has the meaning set forth in Section 22.24.

 

“Infectious
Waste” means any solid waste capable of producing an infectious disease,
including all bulk blood, blood products; cultures of specimens from medical,
pathological, pharmaceutical, research, commercial and industrial laboratories;
human tissues; organs, body parts, secretions, blood and body fluids removed
during surgery and autopsies; the carcasses and body parts of all animals
exposed to pathogens in research, used in the vivo testing of pharmaceuticals
or that died of known or suspected infectious diseases; needles, syringes,
scalpel blades and other sharps.

 

“Institutional
Quality” means a commercial real estate property that is designed, built,
maintained, operated and managed at a level of quality consistent with a well
regarded high-quality hospital campus and in a manner which allows the owner
thereof to command top rental rates from preferred tenants and which is consistent
with medical buildings of a similar age and size in the Florida area.

 

“Interest”
means Tenant’s Leasehold Estate or any lesser legal or equitable interest
therein.

 

“Landlord”
has the meaning set forth in the introductory paragraph of this Lease.

 

“Lease”
means this Ground Lease, as amended from time to time. Words such as “herein,” “hereinafter,”
“hereof,” “hereto” and “hereunder” refer to this Lease as a whole, unless the
context otherwise requires.

 

“Leasehold
Estate” means Tenant’s interest under this Lease in the Premises, together
with Tenant’s fee interest in the MOB and Tenant’s interest in the other
Improvements subject to the terms of this Lease.

 

“Leasehold
Mortgage” has the meaning set forth in Section 8.2.

 

“Leasehold
Mortgagee” has the meaning set forth in Section 8.1(a).

 

“Lease
Year” means each consecutive period of 365 or 366 days throughout the
Term.  The first Lease Year commences on
the Rent Commencement Date and expires on the day before the first anniversary
of the Rent Commencement Date.

 

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“Legal
Requirements” means all present and future laws, statutes, requirements,
ordinances, orders, judgments, rules, writs, regulations, administrative and/or
judicial determinations, certificates, agreements, conditions of participation
and standards,  even if unforeseen or
extraordinary, of every insurance underwriting board, architectural control
board, Governmental Authority, court or agency claiming jurisdiction over the
MOB, the Premises, the Campus, either Party or this Lease, whether now or
hereafter enacted or in effect and all easements, covenants, restrictions and
conditions applicable to Tenant or to all or any portion of the Premises, or to
the development, construction, condition, use, occupancy, possession,
operation, maintenance, alteration, repair or restoration of the Improvements,
including but not limited to, (i) zoning, building, fire, health, safety,
sign, and subdivision regulations and codes; (ii) certificate of need laws
(if applicable); (iii) licensure to operate the MOB in accordance with its
Use; (iv) the ADA; and (v) any Environmental Laws.

 

“Loan
Documents” has the meaning set forth in Section 8.2(a).

 

“Mortgage
Notice” has the meaning set forth in Section 8.1(a).

 

“New
Lease” has the meaning set forth in Section 8.10.

 

“Occupants”
has the meaning set forth in Section 2.2.

 

“Offer
Notice” has the meaning set forth in Section 10.1(a).

 

“Organizational
Documents” means (i) for a corporation, its articles of incorporation
certified by the secretary of state of the state of organization, as amended to
date, and its bylaws certified by such entity, as amended to date; (ii) for
a partnership, its partnership agreement certified by such entity, as amended
to date, and the partnership certificate, certified by the appropriate
authority, as amended to date; and (iii) for a limited liability company,
its articles of organization certified by the secretary of state of the state
of organization, as amended to date, and its operating agreement certified by
such entity, as amended to date.

 

“Permitted
Exceptions” has the meaning set forth in Section 10.1(f).

 

“Person”
means any individual, partnership, limited liability company, limited liability
partnership, firm, association, corporation, trust or any other form of
business or government entity.

 

“Premises”
has the meaning set forth in Recital A.

 

“Prohibited
Services” has the meaning set forth in Section 7.2.

 

“Property
Manager” has the meaning set forth in Section 11.1.

 

“REA”
has the meaning set forth in Section 10.1(f).

 

“Refinance”
shall mean (1) any loan which renews, replaces, consolidates, restates,
amends, modifies, substitutes for, exchanges, or satisfies, in whole or in
part, any existing loan secured by the Tenant’s Leasehold Estate which has an
economic effect on the

 

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outstanding
debt under the loan, including, without limitation, any purchase money loan
obtained by the purchaser of the Tenant’s Leasehold Estate, or (2) any
renewal, replacement, consolidation, restatement, amendment, modification of
any existing loan secured by the Tenant’s Leasehold Estate, or further advance
thereunder, to increase the loan’s then outstanding principal balance.

 

“Rent”
means Base Rent and Additional Rent.

 

“Repurchase
Right” has the meaning set forth in Section 10.1(b).

 

“Response
Period” has the meaning set forth in Section 9.4(b).

 

“Restricted
Area” shall mean the area within eight (8) miles of the Premises.

 

“Screened
Persons” has the meaning set forth in Section 22.24.

 

“Space
Lease” has the meaning set forth in Section 9.3(c).

 

“Space
Tenant” has the meaning set forth in Section 9.3(c).

 

“Successor
Tenant” has the meaning set forth in Section 8.10.

 

“Taking”
has the meaning set forth in Section 14.1.

 

“Taxes”
means (i) all real estate and personal property ad valorem, sales and use
(including any sales tax on gross receipts of Landlord from Tenant), business
or occupation, single business, gross receipts, transaction privilege, rent or similar
taxes; (ii) assessments (including without limitation, all assessments for
public improvements or benefits, whether or not commenced or completed prior to
the Commencement Date and whether or not to be completed with the Term) which
shall be prorated by the parties as of the Effective Date and as of the
Expiration Date (or early termination date, as provided herein); (iii) water,
sewer or other rents and charges, excises, tax levies, and fees (including
without limitation, license, permit, inspection, authorization and similar
fees) which are not paid directly by Tenant under the terms of this Lease; (iv) all
taxes imposed on Tenant’s operations of the Premises; and (v) all other
governmental charges, in each case whether general or special, ordinary or
extraordinary, or foreseen or unforeseen, of every character in respect of the
Premises or any part thereof and/or the Rent (including all interest and
penalties thereon due to any failure in payment by Tenant), which at any time
prior to, during or in respect of the Term hereof may be assessed or imposed on
or in respect of or be a lien upon (a) Landlord or Landlord’s interest in
the Premises or any part thereof; (b) the Premises or any part thereof or
any rent therefrom or any estate, right, title or interest therein; or (c) any
occupancy, operation, use or possession of, or sales from, or activity
conducted on, or in connection with the Premises or the leasing or use of the
Premises or any part thereof.  Tenant
shall not, however, be required to pay any tax based on net income imposed on
Landlord by any governmental entity.

 

“Tenant”
has the meaning set forth in the introductory paragraph of this Lease.

 

“Tenant
Common Area Improvements” has the meaning set forth in Section 5.1.

 

6

 

“Term”
has the meaning set forth in Section 3.1.

 

“Transfer”
means any voluntary or involuntary disposition, sale, assignment, gift,
conveyance, exchange, license, easement (other than any easement granted to one
or more Governmental Authorities, third-party utility providers or Occupants for ingress, egress purposes),
lease or sublease (other than a Space Lease), the Change of Ownership of
Tenant; provided, however, a “Transfer” shall not include (i) the
granting of a Leasehold Mortgage on the terms specified in this Lease, or (ii) any
sale, assignment, conveyance or transfer of any shares or ownership interests
in a public company to the extent such sale, assignment, conveyance or transfer
does not constitute a Change of Ownership of the issuer of such shares or
ownership interests.

 

“Walkway Easements” has the meaning
set forth in Section 2.6.

 

“Walkway
Systems” has the meaning set forth in Section 2.6.

 

ARTICLE 2

DEMISE OF PREMISES; COMMON AREAS

 

2.1           Premises. 
Landlord, for and in consideration of the Rent hereinafter reserved and
the covenants and agreements contained in this Lease on the part of Tenant to
be kept, performed and fulfilled, has demised and leased and by these presents
does demise and lease unto Tenant, its permitted successors and assigns, the
Premises, together with any rights of way, rights, privileges, benefits and
appurtenances now or hereafter belonging thereto or commonly enjoyed therewith,
for the Term, subject however to the Permitted Exceptions and the terms
of this Lease and subject also to the provisions of Section 3.2 of
this Lease.

 

2.2           Tenant’s Non-Exclusive Right to Common Areas.  The Permitted Exceptions referenced in Section 2.1
above include the REA.  Subject to the
provisions of the REA, the provisions of this ARTICLE 2 shall apply.

 

(a)           Tenant acknowledges that the MOB is freestanding, but may
now be or, at the option of Landlord, may hereafter be connected to other
office and/or medical facilities located on the Campus from time to time, subject
to the disclaimer in Section 5.5. 
As such, Tenant and its Space Tenants and their permitted subtenants and
any other Persons legally occupying space in the MOB from time to time,
together with their employees, agents, contractors, and invitees (collectively,
the “Occupants”), shall have the non-exclusive right, in common with
Landlord and others to whom Landlord may grant such rights, in its sole and
absolute discretion, to use and enjoy those portions of the Campus and the
improvements thereon, if any, as Landlord, in its sole discretion, may
designate as such from time to time as being for the common use and enjoyment
of Landlord, the Occupants and other tenants, and their employees, agents and
invitees, including, but not limited to: parking areas and parking lot
improvements; access roads; driveways; fences; water, sanitary storm sewer,
gas, electric, telephone and other utility lines, systems, conduits and
facilities to the perimeter walls of any building (even though intended for the
use of only one or a limited number of occupants), sky bridges, building
connectors, and any of the foregoing which serve the Campus; plantings;
landscaped areas; sidewalks; bus stations; and the facilities appurtenant to
each and all of the 

 

7

 

foregoing (collectively, the “Common Areas”).  Notwithstanding this definition of “Common
Areas,” nothing herein shall be deemed to obligate Landlord to improve the
Campus with any such Common Areas or to permit any of the Occupants to use any
of the Common Areas (excluding the sidewalks and general access road(s) for
which Landlord permits use by the general public); provided however, Landlord
covenants and agrees to maintain sufficient parking areas on the Common Areas
to enable the MOB to comply with parking codes applicable to the MOB at the
time of construction of the MOB, and to the extent that the Campus contains a
parking garage that is currently used by Occupants of the MOB, Landlord agrees
that Landlord will not relocate parking by such Occupants to outside of any
such parking garage, without the prior written consent of Tenant, which consent
shall not be unreasonably withheld, conditioned or delayed. If Landlord elects
to remove and/or materially relocate any existing sky bridges or building
connectors attached to the MOB, Landlord must (i) obtain the prior written
consent of Tenant, which consent shall not be unreasonably withheld,
conditioned or delayed, for such removal or relocation if such removal or
relocation would have a material adverse effect on the use and operation of the
MOB; and (ii) repair any damage to the Premises and Improvements thereon
caused by Landlord’s exercise of its rights hereunder. Subject to Landlord’s
obligation to make physical repairs to the Premises and Improvements, in no
event will Landlord be liable to Tenant for any loss or damage (including
consequential damages) to Tenant’s business occasioned by any such damage to
the Premises and Improvements. Notwithstanding anything to the contrary herein,
Landlord shall keep the Leasehold Estate of Tenant lien-free in connection
therewith and shall indemnify and hold Tenant harmless from and against all
loss, cost and expense in connection with any liens or claims of lien resulting
from any addition, modification or removal of any portion of the Common Areas
by or for Landlord. As used in this Lease, the phrase “lien-free” shall mean
that if any lien or claim of lien is filed related to the applicable work that
attaches to the Premises, Landlord will cause the same to be released by
payment, bonding or otherwise within thirty (30) days after Landlord receives
written notice of the attachment thereof.

 

(b)           Notwithstanding anything set forth in this Lease to the
contrary, it is agreed that (a) all Common Areas shall be subject to the
exclusive control and management of Landlord (and/or its Affiliates), and
Landlord (and/or its Affiliates) shall have the right at any time, once or more
often, to change the size, area, level, location and arrangement of Common
Areas (including, but not limited to, access roads, driveways, and parking
areas) and to construct buildings and other improvements thereon; (b) Landlord
(and/or its Affiliates) shall have the right to close, on a temporary or
permanent basis, all or any portion of said parking areas and other Common
Areas in order to (i) make repairs, changes and additions thereto, (ii) prevent
a dedication thereof or the accrual of any prescriptive rights to any Person or
the public therein, and (iii) discourage non permitted parking; (c) Landlord
(and/or its Affiliates) shall have the right to do and perform such other acts
in and to the Common Areas as Landlord (and/or its Affiliates) shall determine
to be advisable with a view to the improvement of the convenience and use
thereof by the Occupants; provided, however, that (1) in connection with
the foregoing, Landlord agrees that there shall continue to be reasonable
access to the MOB for the Occupants, and (2) Landlord agrees to maintain
sufficient parking areas on the Common Areas to enable the MOB to comply with
parking codes applicable to the MOB at the time of construction of the MOB. In
the event Landlord exercises the right to close all or any portion of such
parking areas, such closure must be done in a manner where the Landlord
provides Tenant with alternate temporary and/or permanent parking areas for the
use of Occupants of the MOB, and to the 

 

8

 

extent that the Campus contains a parking garage
that is currently used by Occupants of the MOB, Landlord agrees that Landlord
will not relocate parking by such Occupants to outside of any such parking
garage, without the prior written consent of Tenant, which consent shall not be
unreasonably withheld, conditioned or delayed. Landlord agrees to maintain the
Common Areas, including all sky bridges, catwalks, roadways, surface water
management systems, parking areas, and parking garages. in an Institutional
Quality condition in accordance with all Legal Requirements. Landlord’s
agreement to maintain the Common Areas is subject to the terms of the REA
concerning reimbursement of the costs of such maintenance.

 

2.3           Common Area Improvements and Additional or
Modifications to Common Area Improvements. 
Tenant shall not make any additions, improvements, alterations or
modifications to the Common Areas in any manner whatsoever. If Tenant requests
any additions, improvements or modifications to the Common Areas, Landlord may
grant, condition or withhold its consent in any manner and in its sole and
absolute discretion, including without limitation, (a) requiring that
Tenant pay any or all of the cost of developing, designing and constructing
such additions, improvements or modifications, (b) requiring that any or
all subsequent maintenance, repair and replacement of such additional, improved
or modified Common Area improvements be paid by Tenant, (c) requiring that
Tenant fund a reserve for the future payment thereof, or (d) any other
basis as Landlord (and/or its Affiliates) may deem appropriate.  All additions, modifications or improvements
to Common Areas will be made exclusively by Landlord (and/or its Affiliates).

 

2.4           Rules Governing Use of Common Areas.  Landlord shall have the exclusive right to
adopt reasonable rules regarding the use of the Common Areas (including,
without limitation, the right to reserve parking for patients, physicians and
hospital management personnel), which rules shall be binding upon Tenant
upon written notification thereof by Landlord; provided, however, Landlord
agrees to maintain sufficient parking areas on the Common Areas to enable the
MOB to comply with parking codes applicable to the MOB at the time of
construction of the MOB.

 

2.5           Landlord’s Right to Assign Management Rights and
Obligations.  Landlord (and/or
Landlord’s Affiliates) may, from time to time, assign, delegate or contract
with a third party for the management, repair, maintenance and replacement of
the Common Areas as it may determine in its sole discretion.

 

2.6           Reservation of Easements.  Landlord hereby reserves to itself, its
lessees, licensees, invitees, successors and assigns all necessary and
appropriate easements on, over and under the Premises (a) with respect to
any existing electric lines, telephone and data communication lines, irrigation
lines, drainage lines, sewer lines, water lines, waterworks, sewer works, force
mains, lift stations, water mains, sewer mains, water distribution systems,
sewage disposal systems, effluent disposal systems, pipes, wires, siphons,
valves, gates, pipelines, cable television service, electronic security systems
and all machinery and apparatus appurtenant to all of the foregoing located on
the Premises, which specifically includes the right to use any and all existing
easements across, over or under the Premises (collectively, the “Existing
Systems”); (b) with respect to all skywalks, catwalks, covered
walkways and access ways (the “Walkway Systems”) located on or connected
to or adjacent to the Premises (the “Walkway Easements”); and (c) to
construct, maintain and operate on the Premises electronic security systems,
cable 

 

9

 

television service, communications and data systems
for telephones, computers and related uses (“Communications and Data Systems”),
including but not limited to the right to (i) operate a wired or wireless
electronic records system for the Hospital and/or the physicians and medical
practices that are from time to time located in the MOB, (ii) use any
switch closet or telephone utility room for a telephone/data switch and/or
server to allow for connection of telephones, computers and related equipment
in the MOB with the Hospital, provided such system is constructed and
maintained at no cost or expense to Tenant, and (iii) use a portion of the
roof of the MOB for one or more antenna and/or satellite dishes for such
Communications and Data Systems (the “Communications Easements”);
provided, such Communications and Data Systems do not materially and adversely
interfere with Tenant’s use of the MOB and Landlord shall repair any damage to
the Premises and the Improvements thereon caused by Landlord’s exercise of its
rights hereunder and Landlord shall keep the Leasehold Estate of Tenant
lien-free in connection therewith and indemnify and hold Tenant harmless from
and against all loss, cost and expense in connection with any liens or claims
of lien resulting therefrom. Subject to Landlord’s obligation to make physical
repairs to the Premises and Improvements, in no event will Landlord be liable
to Tenant for any loss or damage (including consequential damages) to Tenant’s
business occasioned by any such damage to the Premises and Improvements. The
Walkway Easements specifically includes the right to attach and connect sky
bridges, walkways, catwalks or other structures and supports to the Premises,
and the right to repair, rebuild, restore, remove and replace any and all
walkway systems that may now or may from time to time exist.  The Walkway Easements shall not be a
representation or warranty that any Walkway System shall be constructed,
maintained or continue to exist.  The
Communications Easements shall not be a representation or warranty that any
Communications or Data System shall be constructed, maintained or continue to
exist, and if constructed, such Communications or Data Systems shall be solely
for Landlord’s use and Tenant shall not be entitled to use the same.  If Landlord elects to remove and/or
materially relocate any existing sky bridges or building connectors attached to
the MOB, Landlord must (i) obtain the prior written consent of Tenant,
which consent shall not be unreasonably withheld, conditioned or delayed, for
such removal or relocation if such removal or relocation would have a material
adverse effect on the use and operation of the MOB, and (ii) repair any
damage to the Premises and Improvements thereon caused by Landlord’s exercise
of its rights hereunder.  Notwithstanding
anything to the contrary herein, Landlord shall keep the Leasehold Estate of
Tenant lien-free in connection therewith and shall indemnify and hold Tenant
harmless from and against all loss, cost and expense in connection with any
liens or claims of lien resulting from such removal or relocation of the sky
bridges or building connectors by or for Landlord. Subject to Landlord’s
obligation to make physical repairs to the Premises and Improvements, in no
event will Landlord be liable to Tenant for any loss or damage (including
consequential damages) to Tenant’s business occasioned by any such damage to the
Premises and Improvements.

 

10

 

 

ARTICLE 3

TERM

 

3.1           Term.  The
term of this Lease (the “Term”) shall commence on the Effective Date
(the “Commencement Date”) and shall expire at 12:00 Midnight on the
fiftieth (50th) anniversary
of the Effective Date, unless sooner terminated as set forth herein or extended
as provided in Section 3.3 (the “Expiration Date”).

 

3.2           Possession; Acceptance of Premises.  Landlord shall deliver possession of the
Premises to Tenant as of the Commencement Date. Tenant acknowledges that (i) Tenant
and its agents have had an opportunity to inspect the Premises; (ii) Tenant
has found the Premises fit for Tenant’s use; (iii) Landlord is delivering
the Premises to Tenant in “AS IS” condition, including but not limited to any
latent defects and any non-compliance of the Premises or any part thereof with
Legal Requirements; and (iv) Landlord is not obligated to make any
improvements or repairs to the Premises. Tenant waives any claim or action
against Landlord with respect to the condition of the Premises. LANDLORD MAKES NO
WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IN RESPECT OF THE PREMISES
OR ANY PART THEREOF, EITHER AS TO ITS FITNESS FOR USE, DESIGN OR CONDITION
FOR ANY PARTICULAR USE OR PURPOSE OR OTHERWISE, OR AS TO QUALITY OF THE
MATERIAL OR WORKMANSHIP THEREIN, LATENT OR PATENT, IT BEING AGREED THAT
ALL SUCH RISKS ARE TO BE BORNE BY TENANT.

 

3.3           Renewal or Extension Rights.  Except as expressly set forth herein there
shall be no right, option, grant or power to extend the Expiration Date or
renew the Term.  If: (i) Tenant is
then not in default beyond any applicable cure period (either at the time of
the exercise of the renewal or the commencement of the renewal term); and (ii) Tenant
is in possession of the Premises and the use is in accordance with the permitted
uses set forth in this Lease, the Term of this Lease shall automatically extend
for one (1) additional twenty-five (25) year period, unless Tenant
notifies Landlord that Tenant does not wish to renew the Term by notifying
Landlord in writing (the “Non-Renewal Notice”) at least 300 days (but not more
than 365 days) prior to the expiration of the initial term hereof . Unless
Tenant timely delivers a Non-Renewal Notice, , the Term of this Lease shall be
extended for an additional twenty-five (25) year term, upon all of the same
terms, provisions and conditions set forth in this Lease.  If Tenant timely delivers a Non-Renewal
Notice, Tenant shall surrender the Premises at the then stated expiration of
this Lease.  Time is of the essence with
respect to Tenant’s delivery of the Non-Renewal Notice.

 

3.4           Reversion. 
During the Term of this Lease, Tenant is the owner of the MOB, subject
to the terms of this Lease; provided, however, that in no event shall Tenant
Transfer or encumber the MOB separately from Tenant’s Leasehold Estate. At the
Expiration Date or sooner termination of this Lease, whether by default,
eviction, or otherwise, the MOB, Premises and all other Improvements upon the
Premises shall, without compensation to Tenant or any other Person, then become
the sole property of Landlord or Landlord’s designee, free and clear of all
claims to or against them by Tenant or any third Person, and all liens,
security interests, and encumbrances, other than the Permitted Exceptions and
any other encumbrances or liens expressly agreed to in writing by Landlord, and
Tenant shall defend and indemnify Landlord against all liability and loss,
including but not limited to attorneys’ fees and costs through litigation and
all appeals, arising from such claims, liens, security interests and
encumbrances 

 

11

 

and from Landlord’s exercise of the rights conferred
by this Section. All alterations, improvements, additions and utility
installations (whether or not such utility installation constitutes trade
fixtures of Tenant) which may be made on the Premises, shall be the property of
Landlord and shall remain upon and be surrendered with the Premises at the
Expiration Date or sooner termination of this Lease.  Notwithstanding the provisions of this
paragraph, the furniture, fixtures and equipment of Tenant or any Space Tenant
of the MOB, other than that which is affixed to the Premises so that it cannot
be removed without damage to the Premises, shall remain the property of Tenant
or such Space Tenant, as may be applicable, and may be removed; provided,
however, that Tenant removes or causes its removal by the Expiration Date.
Without hereby implying or suggesting any consent by Landlord to a sublease of
the Premises other than as expressly permitted herein (which consent is subject
to the terms of this Lease), all Space Leases of all or any portion of the
Premises and the MOB shall contain reversion language pertaining to the MOB in
accordance with the terms of this Section.

 

3.5           Merger. 
Notwithstanding the terms of this Lease, if Landlord purchases the
Tenant’s Leasehold Estate pursuant to the terms hereof, then unless Landlord
states a contrary intention, this Lease shall terminate as of the date of
closing of the sale and purchase thereof as if the Expiration Date were the
closing date; provided, however, that if at the time of such closing there
exists any Leasehold Mortgage which is not to be satisfied in full in
connection with the closing, then there shall be no such termination of this
Lease without the Leasehold Mortgagee’s prior written consent.

 

ARTICLE 4

RENT

 

4.1           Base Rent.

 

(a)           As of the Effective Date (the “Rent Commencement Date”),
there shall be due and owing from Tenant to Landlord as base rent for the
Premises (“Base Rent”) an annual amount of Twenty-Seven Thousand Two
Hundred Sixteen and No/100 Dollars ($27,216.00). Base Rent shall be payable
monthly in advance, in twelve (12) equal monthly installments on or before the
first (1st) day of each month during the Term, commencing as of the Rent
Commencement Date.  Base Rent shall be
payable without notice, demand, setoff, deduction, abatement or counterclaim,
and without relief from valuation or appraisement laws. The Base Rent shall be
absolutely net to Landlord, such that all taxes, costs, charges, expenses and
obligations of every kind and nature related to the Premises and the use and
occupancy thereof shall be paid by Tenant. 
Base Rent payable during any partial month (e.g., the first month and
the last month of the Term) shall be pro-rated for the number of days during
such partial month included in the Term.

 

(b)           Base Rent shall be redetermined on the fifth anniversary
of the Effective Date and upon each successive fifth anniversary of each Base
Rent Redetermination throughout the Term (including any renewal) of the Ground
Lease (hereinafter referred to as the “Base Rent Redetermination Date”).  Commencing on the fifth anniversary of the
Effective Date and on each Base Rent Redetermination Date thereafter, annual
Base Rent shall increase to an amount equal to one hundred ten percent (110%)
of the annual Base Rent in effect for the preceding (and expiring) annual
period provided that if either Landlord or Tenant believe such increase does
not 

 

12

 

accurately reflect a current fair market rent, then
upon written notice to the other within one hundred twenty (120) days prior to
the expiration of the then-current five-year period, the objecting party may
require a determination of the Appraised Value (to be performed in accordance
with the terms of  Section 8.4 below)
and the annual Base Rent payment will increase to an amount equal to six
percent (6%) of the then-current Appraised Value, further provided that in no
event shall the annual Base Rent, as re-determined, ever be (x) less than
the annual Base Rent in the year preceding redetermination, or (y) more
than 125% of the annual Base Rent in the year preceding determination.  Until completion of such appraisal process,
Tenant shall pay annual Base Rent in accordance with the 110% rental increase,
above, and any overage or shortfall thereafter shall be credited or paid, as
the case may be, concurrent with the first installment of Base Rent due
following determination of the Appraised Value.

 

4.2           Additional Rent. 
Base Rent shall be absolutely net to Landlord, such that all costs,
charges, expenses, Taxes, insurance premiums, cost of maintenance, repair and
replacement to the Premises and all obligations of every kind and nature
related to the Premises shall be paid by Tenant, and such costs and payments to
be made by Tenant hereunder shall be deemed, for the purposes of securing the
collection thereof, to be additional rent due and owing hereunder (“Additional
Rent”), and Landlord shall have the same rights and remedies upon Tenant’s
failure to make such payments as for the nonpayment of the Base Rent. Without
limiting the generality of the foregoing, during the Term Tenant covenants and
agrees to pay without notice, demand, setoff, deduction, abatement or
counterclaim, and without relief from valuation or appraisement laws, all
Taxes, and the same shall constitute Additional Rent if initially paid by
Landlord on behalf of Tenant.

 

(a)           Should any governmental agency or political subdivision
impose any taxes and/or assessments, whether or not now customary or within the
contemplation of the Parties, either by way of substitution for Taxes presently
levied and assessed against the Premises and MOB and any property of Tenant located
on the Premises, or in addition thereto, other than Landlord’s personal income
tax or any estate tax or inheritance tax, such taxes and/or assessments shall
be deemed to constitute “Taxes” for the purpose of this Section and shall
be paid by Tenant. Taxes shall be prorated for the first and last Lease Year of
the Term, and as to Taxes for the last Lease Year, whether or not such Taxes
are imposed before or after such termination, and Tenant’s obligation to pay
its prorated share thereof shall survive such termination. Tenant shall deliver
to Landlord (i) not more than five (5) days after the due date of
each Tax, copies of the invoice for such Tax and the check delivered for
payment thereof; and (ii) not more than thirty (30) days after the due
date of each Tax, a copy of the official receipt evidencing such payment or
other proof of payment satisfactory to Landlord.

 

(b)           Notwithstanding Section 4.2(a), until the
Premises are separately assessed for Taxes, Landlord shall pay all Taxes,
including the Premises, and Tenant shall pay to Landlord its proportionate
share of the Taxes in accordance with proportion of the area of the Premises
bears to the total area assessed for purposes of Taxes, as reasonably
determined by Landlord on the basis of information furnished by the
Governmental Authority responsible for real estate valuation and assessment;
provided, however, if the Premises are not separately assessed for Taxes but
tax assessor’s work papers reflect a separate valuation for the improvements,
then Tenant shall pay the taxes applicable to the improvements based on the
information from the tax assessor’s work papers and the taxes attributable to
the land shall be 

 

13

 

proportionately assessed as described above.
Landlord agrees, at no expense or liability to Landlord, to reasonably
cooperate with Tenant in connection with Tenant’s application to have the
Premises separately assessed for real estate purposes.

 

(c)           Commencing with the first year the Premises are separately
assessed for Taxes, Tenant may seek a reduction in the assessed valuation (for
Tax purposes) of the Premises, the MOB and any property of Tenant located on
the Premises, provided the same is done in good faith by and at Tenant’s
sole cost and expense and in compliance with Section 11.8.  No contest permitted hereunder, however,
shall permit Tenant to defer payment of any such contested Taxes. Landlord may,
at its option, pay the disputed amounts if Landlord determines in its sole
judgment that payment is necessary to protect Landlord’s property. Provided
there is not an Event of Default, Tenant shall be entitled to all refunds
associated with Tenant’s successful prosecution of any such proceeding; provided,
such refunds relate to periods of time during which Tenant is in possession of
the Premises. All refunds related to periods of time other than during Tenant’s
occupancy of the Premises shall belong to Landlord, or if there is an existing
Event of Default, any refund shall belong to Landlord.  If required by Applicable Law, Landlord shall
join in any proceeding referred to in this Section; provided, however,
Tenant shall pay, and shall indemnify and save Landlord harmless from, any and
all costs and expenses associated with such proceedings.

 

(d)           If by law any Taxes are payable or, at the option of the
taxpayer, may be paid in installments, Tenant may pay the same in installments
at the time said installments become due and payable and in any event before
any fine, penalty, interest or cost may be added thereto for the nonpayment of
any such installment; provided, however, with respect to any Taxes, which are
levied and assessed during the Term hereof, the foregoing shall not excuse
Tenant from paying such installments thereof as may become due and payable
after the expiration of the Term, and Tenant’s obligation with respect to the
payment thereof shall survive the expiration of this Lease.

 

(e)           Tenant, at its expense, shall prepare and file all tax
returns and reports in respect of any Taxes as may be required by Governmental
Authorities. In the event Governmental Authorities classify any property
covered by this Lease as personal property, Tenant shall file all personal
property tax returns in such jurisdictions where it may legally so file.

 

(f)            If an Event of Default occurs and while it remains
uncured, Tenant shall, at Landlord’s election, deposit with Landlord on the
first day of each month a sum equal to 1/12th of the Taxes assessed against the
Premises for the preceding tax year, which sums shall be used by Landlord
toward payment of such Taxes. Tenant, on demand, shall pay to Landlord any
additional funds necessary to pay and discharge the obligations of Tenant
pursuant to the provisions of this Section. 
The receipt by Landlord of the payment of such Taxes by and from Tenant
shall only be as an accommodation to Tenant, the mortgagees, and the taxing
authorities, and shall not be construed as rent or income to Landlord, Landlord
serving, if at all, only as a conduit for delivery purposes; provided, however,
if Tenant’s Leasehold Mortgagee requires an escrow for Taxes pursuant to a tax
escrow or tax pledge agreement acceptable to Landlord and that Tenant makes
monthly deposits equal to 1/12 of the Taxes, and agrees that all such deposits
shall be used for Taxes, Landlord agrees that an escrow under this Section shall
not be required.

 

14

 

(g)           Tenant shall also pay all taxes, assessments, charges,
deposits, and bills for utilities, including without limitation charges for
water, gas, oil, sanitary and storm sewer, electricity, telephone service, and
trash collection, which may be charged against the occupant of the Premises
during the Term.

 

4.3           Sales Tax. 
Tenant shall pay all applicable sales and use taxes, now or hereafter
imposed by any and all taxing authorities, on the Base Rent, and/or Additional
Rent and other sums due Landlord at the time such rental payments are due to be
paid.

 

4.4           Triple Net Rent. 
It is agreed between the Parties that this Lease is a “Triple Net Lease”
and that the payments of the Base Rent and/or Additional Rent and of all other
payments to the Landlord hereunder are to be absolutely net to Landlord and
that, except as expressly provided to the contrary herein, all costs and
expenses of whatever kind, whether general or special, ordinary or
extraordinary, that may be necessary in connection with the use, occupancy or
operation of the Premises shall be paid by Tenant.  All provisions of this Lease are to be
construed in light of the intent that this be a “Triple Net Lease”; provided,
however, that Tenant shall not be obligated to pay any net income or franchise
taxes which may be levied against Landlord.

 

4.5           No Termination, Abatement, Etc.  Except as otherwise specifically provided in
this Lease, Tenant shall remain bound by this Lease in accordance with its
terms.  Tenant shall not, without the
consent of Landlord, modify, surrender or terminate the Lease, nor seek nor be
entitled to any abatement, deduction, deferment or reduction of Rent, or
set-off against the Rent.  Except as
expressly provided in this Lease, the obligations of Landlord and Tenant shall
not be affected by reason of (i) any damage to, or destruction of, the
Premises or any part thereof from whatever cause or any condemnation of the
Premises or any part thereof; (ii) the lawful or unlawful prohibition of,
or restriction upon, Tenant’s use of the Premises, or any part thereof; (iii) any
claim which Tenant has or might have against Landlord or by reason of any
default or breach of any warranty by Landlord under this Lease or any other
agreement between Landlord and Tenant, or to which Landlord and Tenant are
parties; (iv) any bankruptcy, insolvency, reorganization, composition,
readjustment, liquidation, dissolution, winding up or other proceeding
affecting Landlord or any assignee or transferee of Landlord; or (v) any
other cause, whether similar or dissimilar to any of the foregoing, other than
a discharge of Tenant from any such obligations as a matter of law.  Except as otherwise specifically provided in
this Lease, Tenant hereby specifically waives all rights, arising from any
occurrence whatsoever, which may now or hereafter be conferred upon it by law (a) to
modify, surrender or terminate this Lease or quit or surrender the Premises or
any portion thereof; or (b) entitling Tenant to any abatement, reduction,
suspension or deferment of the Rent or other sums payable by Tenant
hereunder.  The obligations of Landlord
and Tenant hereunder shall be separate and independent covenants and agreements
and the Rent and all other sums payable by Tenant hereunder shall continue to
be payable in all events unless the obligations to pay the same shall be
terminated pursuant to the express provisions of this Lease or by termination
of this Lease other than by reason of an Event of Default.

 

4.6           Payment; Late Charge.  All payments of Base Rent and/or Additional
Rent shall be delivered to Landlord at the address specified in Section 16.1,
or at such other address as Landlord may from time to time designate by giving
written notice to Tenant in accordance with 

 

15

 

the provisions of Section 16.1.  Neither the acceptance by Landlord of a
lesser amount than due hereunder, nor any endorsement or statement on a check
or an instrument accompanying any payment shall be deemed an accord and
satisfaction, and Landlord may accept any such check or payment without
prejudicing its right to recover all outstanding amounts due under this Lease
and pursue all remedies available hereunder. 
If for any reason Tenant fails to pay any Rent installment due hereunder
within ten (10) days of the date due, (i) Tenant shall pay Landlord a
late fee equal to five (5%) percent of such installment due, and (ii) such
installment shall bear interest from the date the same was due until paid at
the rate of the lesser of (1) the Prime Interest Rate (as announced or
published from time to time in the Money Rates Column of The Wall
Street Journal  plus five percent (5%) per annum, or (2) the
maximum rate permitted by applicable law (the “Interest Rate”).

 

ARTICLE 5

ALTERATIONS BY TENANT

 

5.1           Improvements. 
There currently exists on the Premises the following Improvements:  (a) the MOB, and (b) certain Tenant
Common Area Improvements (as hereinafter defined), if any.  For purposes of this Lease, “Tenant Common
Area Improvements” may consist of: (a) access points to the main
Campus roadway, sufficient storm water drainage facilities, landscaping, drive
aisles, sidewalks, lighting, curb and gutter, directional and traffic signage
and such other appropriate improvements, all of which will be located within
the Premises; and (b) extending (and expanding, if necessary) all utility
services (excluding, however, storm water detention and retention facilities)
from their current locations to the Premises.

 

5.2           Development Fees. 
Landlord shall not have any liability or responsibility for development
fees, impact fees or other similar fees or charges pertaining to or arising out
of the use, operation, leasing or maintenance of the MOB.  Tenant shall pay all such fees or otherwise
cause payment by the proper party responsible for payment.  The failure to pay said fees when due will
constitute an Event of Default hereunder.

 

5.3           Naming Rights. 
Landlord shall have the right, at any time and from time to time upon
ninety (90) calendar days prior written notice to Tenant, to name or re-name
the MOB to a name reasonably approved by Tenant, and to require the placement,
at Landlord’s cost, of such name(s), designed in a manner reasonably acceptable
to Landlord and Tenant, on the interior and/or exterior of the MOB in a
location or locations reasonably acceptable to Landlord and Tenant and in
compliance with all Legal Requirements. 
Such right shall include the right to keep, at its option, and the
obligation to maintain any existing signage relating to any hospital or other
medical facility on the campus operated by Landlord or its Affiliates, as well
as the right to the placement of any trade name, logo, service mark or other
similar mark either alone, or in conjunction with such name(s), on the exterior
of the MOB in compliance with all Legal Requirements. Tenant acknowledges and
agrees that if Landlord elects to have its (or any of its Affiliates’) name,
trade name, service mark and/or logo displayed on the MOB, the display of such
name, trade name, service mark and/or logo shall not give rise to any rights of
Tenant, Developer or anyone else to use of the same, and that Landlord’s (or
its Affiliates’) name, trade name, service mark, and logo are the sole and
exclusive property of Landlord (or its Affiliates).  No advertising or marketing of the MOB shall
include references to, and Tenant shall not 

 

16

 

otherwise use, Landlord’s (or its Affiliates’) name,
trade name, service mark, or logo, unless Landlord has approved the same in
advance, in writing.  The design and
location of any such signage to be placed on the MOB shall be subject to the
prior written approval of Tenant, which consent shall not be unreasonably
withheld, and such signage will be consistent with the signage for the existing
medical office building located on the Campus. 
Landlord, at its expense, will pay the cost of the installation of any
signs recognizing donors to the hospital located on the Campus.  The signage referred to in this Section 5.3
will be the sole and exclusive signage permitted on the exterior of the MOB
unless currently in existence or otherwise agreed by Landlord in its sole
discretion.

 

5.4           Attachment and Expansion Rights.  Tenant shall not unreasonably withhold its
consent to Landlord’s request, from time to time, to allow the attachment of
facilities, another medical office building or additions to the MOB, including
but not limited to pedestrian walkways connecting the MOB to one or more other
structures (e.g., parking garage or office building) (such facilities,
walkways, and other structures as may be added from time to time are referred
to collectively as the “Attachments”); provided, that the structural
integrity of the MOB is assured by Landlord in writing and ingress and egress
to and from the MOB is not materially affected. 
Such Attachments shall be governed by the REA and, notwithstanding the provisions
of Section 4.2 hereof or the REA to the contrary, Landlord shall
have the responsibility for repairing and maintaining the Attachments. Landlord
shall not at any time permit any mechanics’, laborers’ or materialmen’s liens
to stand against the Premises for any labor or material furnished to Landlord
or claimed to have been furnished to Landlord or Landlord’s agents or
contractors, in connection with work of any character performed or claimed to
have been performed on the Premises by or at the direction or sufferance of
Landlord under this Section. Landlord shall keep the Leasehold Estate of Tenant
lien-free in connection therewith and shall indemnify and hold Tenant harmless
from and against all loss, cost and expense in connection with any liens or
claims of lien resulting from any Attachments constructed by or for Landlord.
If any such lien attaches to the Premises and Landlord does not cause the same
to be released by payment, bonding or otherwise within thirty (30) days after
the attachment thereof, Tenant shall have the right but not the obligation to
cause the same to be released, and any sums expended by Tenant in connection
therewith shall be payable by Landlord on demand with interest thereon from the
date of expenditure by Tenant.

 

5.5           Landlord’s Disclaimer of Campus Development.  Landlord and Tenant acknowledge and agree
that, except as otherwise specifically provided in this Lease, Landlord (a) has
made no representation or covenant and is under no obligation to improve, alter
or modify the Campus, (b) shall not be responsible for making any
improvements, additions or alterations to the Campus, and (c) shall not be
liable to Tenant for any development or failure or refusal to further develop
the Campus.

 

5.6           Replacement Building.  During the Term of this Lease, Tenant may
request, in writing, that Tenant be permitted, at Tenant’s sole cost and
expense, to demolish the existing MOB and construct a replacement medical
office building on the Premises (the “Replacement MOB”). Any such
request for demolition of the existing MOB and the construction of the
Replacement MOB shall be subject to Landlord ‘s prior written consent, which
may be granted or withheld in Landlord’s sole and absolute discretion, and
shall also be subject to the consent of 

 

17

 

any Leasehold Mortgagee. Any such consent by
Landlord shall further be subject to Tenant and Landlord entering into a
written agreement which contains the terms and conditions concerning the
demolition of the existing MOB and the construction of the Replacement MOB,
including, without limitation, Landlord’s approval of plans and specifications
for the Replacement MOB, the time for completion of the Replacement MOB, Tenant’s
funding of construction of the replacement MOB, and such other terms and
conditions required by Landlord, which agreement shall be in form and substance
acceptable to Landlord, in Landlord’s sole and absolute discretion.

 

ARTICLE 6

CAPITAL RESERVE FUND

 

6.1           Amount.  In
order to ensure that the MOB is maintained in accordance with Institutional
Quality standards, Tenant shall internally establish and maintain a capital
reserve fund (the “Capital Reserve Fund”) equal to thirty cents ($.30)
per useable square foot of the MOB per annum, with such amount increasing by
three percent (3%) per annum for each Lease Year; provided, however, for any
Leasehold Mortgagee requiring a Capital Reserve Fund, the obligations of Tenant
under this Section shall be reduced by any deposits into a similar type fund
with a Leasehold Mortgagee.  Commencing
as of January 1, 2012, and continuing on the 1st day of each January thereafter
during the Term, Tenant shall provide to Landlord for Landlord’s approval, such
approval not to be unreasonably withheld or delayed, a written annual capital
budget for the MOB, shall discuss such budget with Landlord, and shall promptly
respond to any questions or inquiries by Landlord regarding such budget. Upon
request from Landlord, which requests shall not be made on more than a quarterly
basis, Tenant shall provide to Landlord a report with the beginning balance,
deposits, disbursements and ending balance of the Capital Reserve Fund.  Upon termination of this Lease, the balance
of the Capital Reserve Fund shall be retained by Tenant.

 

6.2           Funding.  All
capital improvements to the MOB shall be funded first from the Capital Reserve
Fund. If there are insufficient funds in the Capital Reserve Fund to pay the
costs of the capital improvements, Tenant shall pay the cost thereof from other
sources.  In no event shall Landlord (or
any of its Affiliates) be required to contribute additional capital for the
purpose of making capital improvements for the MOB.

 

6.3           Costs for Future Improvements.  Costs of any future tenant improvements
required for (i) renewals of Space Leases, and (ii) new Space Leases
entered into after the end of term of initial Space Leases shall be in addition
to amounts paid into the Capital Reserve Fund and shall be paid by Tenant
either from operating income of Tenant, additional capital investment or
additional financing obtained by Tenant for such tenant improvements.

 

18

 

ARTICLE 7

PERMITTED USE; RESTRICTIONS;
PROHIBITED USES; NEGATIVE COVENANTS

 

7.1           Permitted Use.

 

(a)           Tenant shall use the Premises only for the ownership and
operation of a medical office building (“MOB”) and for no other purpose
without the prior written consent of Landlord, which consent may be withheld in
Landlord’s sole discretion.  Tenant shall
be solely responsible for the day-to-day operation and management of the MOB as
set forth in ARTICLE 11. During the Term, Tenant shall obtain and
maintain in full force and effect throughout the Term, all Government
Authorizations necessary to operate the MOB and shall otherwise comply with all
Legal Requirements.

 

(b)           Except for any space in the MOB leased to Landlord (or any
of its Affiliates), and except as set forth in Section 7.1(c),

 

(i)            the MOB shall be occupied, leased and used exclusively
for physician offices subject to the limitations of Section 7.2 and
Section 7.3;

 

(ii)           all physician offices shall be exclusively used and
occupied by licensed physicians who are in good standing in the State where the
Premises are located and by such staff as is necessary to support such
physicians in the practice of medicine; and

 

(iii)          all occupancy and use of space in the MOB shall be pursuant
to written agreements which comply with the provisions of Section 9.3.

 

(c)           Except as approved by Landlord, in Landlord’s sole
discretion, not more than five percent (5%) of the aggregate rental space in
the MOB may be for non-physician tenants.

 

7.2           Prohibited Services.  The Parties acknowledge that the principal
purpose of this Lease is to provide licensed physician members of the medical
staff of the Hospital with efficient and modern offices to be used for patients
with respect to whom they are the treating professional.  Tenant acknowledges that Landlord (or its
Affiliates) has made and intends to make a substantial investment at the
Hospital in a wide array of outpatient and related commercial services which
will be conveniently accessible for patients of Occupants of the MOB, and that
it would be wasteful and inefficient for Tenant or any Space Tenant or
Occupants of the MOB (other than the Landlord and/or its Affiliates) to
duplicate such services at the MOB. 
Accordingly, Tenant and the MOB Occupants (other than Landlord and its
Affiliates) shall be prohibited from performing within the MOB any of the
following services (the “Prohibited Services”), without the express
prior written approval of Landlord, which approval shall be at the sole
discretion of Landlord and may be withheld for any reason, reasonable or
unreasonable, or for no reason at all:

 

(a)           a pharmacy;

 

(b)           acute care general hospital;

 

19

 

(c)           ambulatory surgery (for any procedure which either (A) under
Florida law, requires the procedure to be performed in a licensed ambulatory
surgery center, or (B) is performed while the patient is under any form of
sedation);

 

(d)           physical therapy;

 

(e)           reference diagnostic radiology;

 

(f)            reference diagnostic imaging such as ultrasound, computer
assisted tomography scans, magnetic resonance imaging;

 

(g)           nuclear medicine testing;

 

(h)           radiation oncology;

 

(i)            GI/endoscopy center;

 

(j)            wound care clinic;

 

(k)           hyperbaric clinic;

 

(l)            cardiac or other vascular catheterization;

 

(m)          outpatient surgery centers;

 

(n)           any procedure requiring anesthesia which must be
administered by an anesthesiologist or certified registered nurse or other
trained anesthetist (excluding procedures performed by dentists, oral surgeons,
opthamologists, or dermatologists);

 

(o)           emergency center;

 

(p)           laboratory services;

 

(q)           “urgent care” (which is defined for purposes hereof as the
furnishing of medical services where (A) the provider of the services
markets itself to the public as providing “urgent care,” (B) the services
are provided to patients with whom the physician does not have an existing
patient relationship, and (C) such services are provided to patients after
the normal business hours of the MOB);

 

(r)            ambulance service or any other facility that offers
services generally provided by a licensed acute care hospital;

 

(s)           computerized topographic scanner;

 

(t)            radiation therapy;

 

(u)           mammography and breast diagnostics;

 

(v)           short-stay surgery;

 

20

 

 

(w)          birthing center;

 

(x)            intravenous sedated outpatient procedures;

 

(y)           LETZ procedures;

 

(z)            cervical biopsies; or

 

(aa)         other services which duplicate on a commercial basis the
services offered by or made available by the Hospital.

 

All
Space Leases and subleases for the MOB shall contain these use restrictions and
Tenant shall enforce such use restrictions at its sole cost and expense
(without limiting the right of Landlord to enforce such restrictions).  Landlord reserves, in its sole discretion,
the right to amend, no more frequently than once in any Lease Year, the
Prohibited Services.  To the extent that
any amendment to the list of Prohibited Services would restrict services which
were permitted prior to such amendment when the Space Tenant signed its Space
Lease, that nonconforming service would be permitted but only (i) as to
that specific Space Tenant (and not the successors or assigns of that Space
Tenant), (ii) for the current term of such Space Tenant’s lease (and any
renewal term of such Space Tenant’s exercised prior to the date of the
applicable amendment to the list of Prohibited Services or any unexercised
renewal term under such Space Tenant’s lease which exists as of the date of the
applicable amendment), and (iii) to the extent that such Space Tenant does
not expand its operations in the MOB.  In the event that there is any
disagreement between Landlord and Tenant regarding whether services are
Prohibited Services, such disagreement shall be resolved by Landlord in its
sole discretion and the same shall be binding on Tenant and the Space Tenant.

 

Notwithstanding
the foregoing, a physician Space Tenant of the MOB may perform the following
services in its own space in the MOB to its own patients with whom the Space
Tenant has an existing patient relationship where such Space Tenant is the
treating physician and such services are provided ancillary to the ordinary and
customary course of treatment within the Space Tenant’s medical practice (and
not for third parties or for an independent profit motive): Physical Therapy
and Ultrasound.

 

The
provisions of this Section 7.2 shall not apply to prohibit the
rendering by a Space Tenant of any service within its premises during the term
of the Space Lease (including any renewals thereof) that is a Prohibited
Service provided that either (i) as to such specific Space Tenant
(excluding any assignee or sublessee of the original Space Tenant under the
Space Lease), (x) such Space Tenant’s Space Lease is in existence on the
date of this Lease, and (y) such Space Tenant’s Space Lease does not
prohibit such Prohibited Service; or (ii) such Space Tenant replaces, and
occupies the same premises (without any expansion) as, any Space Tenant whose
use of its premises as either a pharmacy or for laboratory services satisfied
the requirements of subsection (i)(x) and (y), inclusive, above and whose
lease has expired or terminated after the date of this Lease, and such use by
the successor Space Tenant as either a pharmacy or for laboratory services is
the same use as the prior Space Tenant.

 

7.3           Competing Facility. 
(A) Tenant shall not allow any Competing Facility to use or occupy
space in the MOB, whether pursuant to sublease, license or otherwise, and (B) neither

 

21

 

Tenant nor any of its Affiliates shall own, manage
or operate a Competing Facility within the Restricted Area, unless in either
event approved in advance in writing by Landlord, which approval may be granted
or withheld in Landlord’s sole discretion. The restrictions in this ARTICLE 7
shall not apply to the owner of the Hospital or any Affiliate of such Person.
For purposes of this restriction on leasing space in the MOB, a physician shall
not, solely by virtue of (i) the practice of medicine, or (ii) any
ownership in, or control of, a Competing Facility which is not located in the
MOB, be considered a Competing Facility solely for purposes of leasing space in
the MOB to physician for such physician’s medical practice.

 

7.4           Termination of Restrictions.  The terms of this ARTICLE 7 shall become
null and void and of no further force and effect at such time that the Hospital
is no longer licensed as an acute care general hospital, an acute care
specialty hospital, an ambulatory surgical center, an emergency center, an
ambulance service, or any other facility that offers services generally
provided by a licensed acute care hospital (collectively, a “Hospital Facility”)
for a period of one (1) year; provided, however, that (i) if the
Hospital is no longer licensed as a Hospital Facility due to damage or
destruction by fire or other casualty, then the terms of this ARTICLE 7
shall continue in full force and effect if the then owner of the Hospital
diligently pursues the repair of such damage or destruction and the Hospital is
subsequently re-licensed as a Hospital Facility. Notwithstanding the foregoing,
if the Hospital’s license is lost for any reason, and Landlord is diligently
pursuing reinstatement of the license or a new license, then the terms of this ARTICLE 7
shall continue in full force and effect until such time that Landlord ceases
its efforts to reinstate the license or obtain a new license or a final
non-appealable order denying such license is issued by a court of competent
jurisdiction.

 

ARTICLE 8

TENANT FINANCING; LEASEHOLD
MORTGAGES

 

8.1           Tenant’s Ability to Finance Generally.

 

(a)           Tenant may, at any time and from time to time, without the
consent of Landlord, finance Tenant’s Leasehold Estate and shall have the right
to encumber by a Leasehold Mortgage Tenant’s Leasehold Estate for such purpose
to a Leasehold Mortgagee (as defined below), provided that such financing and
leasehold mortgage conforms to the requirements of this ARTICLE 8
and the amount of such financing is limited to not more than eighty percent
(80%) of the then fair market value of Tenant’s Leasehold Estate calculated at
the time of the funding of such financing, which fair market value shall be
determined by appraisal in accordance with the terms set forth in Section 8.4
below.  “Leasehold Mortgagee”
means a lender and its permitted successors and assigns who (i) is the
owner and holder of a promissory note, the indebtedness evidenced by which is
secured by a first lien on the Tenant’s Leasehold Estate, (ii) is not a
Competing Facility, and (iii) is an “Institutional Mortgagee” (as defined
below), and (iv) is disclosed in a written notice (a “Mortgage Notice”)
given to Landlord containing the name, notice address, contact person,
telephone number, and facsimile transmission number of the lender to which the
Tenant’s Leasehold Estate has been or will be mortgaged as security pursuant to
this ARTICLE 8. “Institutional Mortgagee” means a bank,
savings and loan association, insurance company, mortgage company, real estate
investment trust 

 

22

 

(or wholly owned subsidiary thereof), recognized
institutional type lender or its loan correspondent, or agency of the United
States Government.

 

(b)           Under no circumstances shall Landlord subordinate its fee
simple interest in the Premises to the lien of any Leasehold Mortgagee.  Landlord shall not be liable for the payment
of the sum secured by any Leasehold Mortgage, nor for any expenses in
connection with the same, and neither the Leasehold Mortgage nor any instrument
or document related thereto shall contain any covenant or other obligation on
Landlord’s part to pay such debt, or any part thereof, or to take any
affirmative action of any kind whatsoever, except as Landlord may deem
necessary or desirable to protect its interest under this Lease. The Leasehold
Mortgage shall encumber only Tenant’s Leasehold Estate and shall not be a lien
on Landlord’s interest in the Premises or any portion of the Campus or
reversionary interest in the Tenant Improvements. The Leasehold Mortgage shall
be subject to the terms of this Lease, and the Leasehold Mortgagee, or anyone
claiming by, through or under the same, shall not, by virtue thereof, acquire
any greater rights hereunder than Tenant has under this Lease.

 

(c)           In addition to Section 8.2, the terms of the
Leasehold Mortgage shall expressly: (i) prohibit the Leasehold Mortgagee
from naming Landlord as a party in any such foreclosure or action, or seeking a
judgment against Landlord based upon such Leasehold Mortgage or any instrument
or document related thereto; and (ii) obligate the Leasehold Mortgagee to
apply any insurance proceeds and eminent domain award to the restoration of the
Premises to the full extent of Tenant’s obligation or the option to restore the
Premises as set forth in ARTICLE 13 and ARTICLE 14
hereof, respectively.

 

(d)           As used in this Lease, the term “mortgage” or any
variation thereof shall refer to the security interest granted by Tenant
pursuant to a mortgage, deed to secure debt, deed of trust or other security
agreement.

 

8.2           Leasehold Mortgages; Protective Provisions Subject
to the provisions of this ARTICLE 8, Tenant may encumber as
security Tenant’s Leasehold Estate (the “Leasehold Mortgage”) and assign
to the Leasehold Mortgagee Tenant’s rights to rents and subleases therefrom,
subject to the following terms hereby agreed to by Landlord and Tenant and
which terms shall also be incorporated into the Leasehold Mortgage:

 

(a)         Landlord
shall give to any Leasehold Mortgagee a copy of each notice of Default given to
Tenant at the same time as and whenever any such notice of Default shall
thereafter be given by the Landlord to Tenant, provided Tenant or the Leasehold
Mortgagee shall provide an address for such Leasehold Mortgagee to Landlord.  Notwithstanding the foregoing, no such notice
of Default shall be effective against any Leasehold Mortgagee until such notice
has been sent to such Leasehold Mortgagee in accordance with the notice
provisions of ARTICLE 16. 
Upon a Leasehold Mortgagee’s receipt of written notice of Default by
Tenant (a “Default Notice”), subject to Landlord’s right to cure such
Default in accordance with Section 17.5 and the other provisions of
this Lease, the Leasehold Mortgagee shall have the right, but not the obligation,
to cure such Default on behalf of Tenant, and Landlord shall not have the right
to terminate this Lease in the event that the Leasehold Mortgagee completes the
cure of such default within sixty (60) days after its receipt of the Default
Notice if such Default is capable of being cured within such sixty (60) day
period, or such longer period of time as may be 

 

23

 

reasonably necessary to cure such Default provided
Leasehold Mortgagee is diligently pursuing a cure and the Leasehold Mortgagee
has agreed in writing for the benefit of Landlord to cure such Default. The
time for Leasehold Mortgagee to cure any Default under this Lease which
reasonably requires that Leasehold Mortgagee be in possession of the Premises
to do so shall be deemed extended to include the period of time reasonably
required by Leasehold Mortgagee to obtain such possession (by foreclosure or
otherwise) with due diligence; provided, however, that Leasehold Mortgagee
shall have delivered to Landlord its written commitment to cure such
outstanding Defaults reasonably requiring possession of the Premises; and
further provided, however, that during such period all other obligations of
Tenant under this Lease are being duly performed to the extent that Leasehold
Mortgagee can do so.  Landlord agrees to
accept any Leasehold Mortgagee’s cure of a Default by Tenant.  Landlord acknowledges that the Leasehold
Mortgagee is relying upon Tenant’s interest in this Lease as collateral, so
Landlord agrees to give the Leasehold Mortgagee the opportunity to realize on
such collateral before any termination of this Lease due to a Default by
Tenant.  In furtherance of the foregoing,
Landlord agrees that it shall not terminate this Lease due to the occurrence of
any Tenant Default so long as a Leasehold Mortgagee commences the foreclosure
of its lien on the Tenant’s Leasehold Estate within sixty (60) days after its
receipt of the Default Notice, completes such foreclosure with reasonable
diligence, and pays, upon Landlord’s written demand, all delinquent Rent and
other sums then due and owing under this Lease.

 

(b)           If this Lease is terminated as a result of Tenant’s
Default or rejection of this Lease pursuant to Section 365(a) of the
Bankruptcy Code, 11 U.S.C. §365(a), then, upon the Leasehold Mortgagee’s
request made within thirty (30) days after the Leasehold Mortgagee’s receipt of
written notice from Landlord of such termination, and provided that the
Leasehold Mortgagee pays all of the Rent and other sums then due and owing
under this Lease and the Leasehold Mortgagee performs all other obligations
under this Lease, Landlord shall enter into a new lease with the Leasehold
Mortgagee upon terms and conditions identical to those of this Lease for what
would have been the full remaining term of this Lease had the same not been so
terminated as more particularly provided in Section 8.8 hereof, and
such new lease shall have the same priority as this Lease. If this Lease is
terminated as a result of any casualty or condemnation affecting the Premises,
and not due to a Default by Tenant, Landlord is not obligated to enter into a
new lease with the Leasehold Mortgagee.

 

(c)           Any foreclosure, deed-in-lieu of foreclosure or other sale
of Tenant’s Leasehold Estate in any foreclosure proceedings instituted by a
Leasehold Mortgagee and any subsequent assignment, transfer or conveyance of
the Tenant’s Leasehold Estate by such Leasehold Mortgagee to a third party
shall not be deemed a Transfer of the Tenant’s Leasehold Estate, provided (i) the
successor Tenant shall notify Landlord of its status as such successor, (ii) such
sale, transfer, conveyance or assignment of the Leasehold Estate shall not in
any event be made to a Competing Facility, and (iii) the successor Tenant
shall be subject to all of the terms and conditions of this Lease, including,
without limitation, the terms and provisions related to any subsequent Transfer
of the Tenant’s Leasehold Estate. Landlord agrees to recognize the person or
entity acquiring Tenant’s Leasehold Estate pursuant to the foregoing as the
lessee hereunder with all of the rights and estate of Tenant, provided that any
such purchaser at any foreclosure sale of the Tenant’s Leasehold Estate shall
be deemed to have agreed to perform all of the Tenant’s obligations under this
Lease.

 

24

 

(d)           The making of a Leasehold Mortgage in accordance with the
terms of this Lease shall not be deemed to constitute an assignment or
Transfer.  No Leasehold Mortgagee, simply
by virtue of its mortgage lien on the Tenant’s Leasehold Estate, shall be
deemed to have assumed any of the obligations or liabilities of Tenant
hereunder.  A Leasehold Mortgagee who
takes title to the Tenant’s Leasehold Estate or enters into a new lease with
Landlord pursuant to this Section shall be responsible for the performance
of the Tenant’s obligations under this Lease or such new lease to the same
extent as the original Tenant under this Lease, but only for so long as such
Leasehold Mortgagee is the owner of the Leasehold Estate.

 

(e)           Each Leasehold Mortgagee shall give to Landlord a copy of
each notice of default given to Tenant at the same time as and whenever any
such notice of default shall thereafter be given by the Leasehold Mortgagee to
Tenant, addressed to Landlord at its address as set forth in this Lease or as
otherwise last furnished to the Leasehold Mortgagee.  The Leasehold Mortgage and the loan documents
in connection therewith shall provide that if Tenant does not cure a default, Landlord
(or its Affiliate) shall have the right, but not the obligation, to cure the
default, and any and all costs incurred by Landlord (or its Affiliate) in
connection therewith shall, at the option of Landlord, be treated as Additional
Rent under this Lease, which shall be immediately due and owing to Landlord.

 

8.3           Terms of Financing. 
Any financing to be secured by a Leasehold Mortgage upon Tenant’s
Leasehold Estate shall (i) be in a total principal amount not to exceed
eighty percent (80%) of the then fair market value of Tenant’s Leasehold Estate
calculated at the time of the funding of such financing, which fair market
value shall be determined by appraisal in accordance with the terms set forth
in Section 8.4 below, (ii) may not extend beyond the expiration
of the Term, and (iii) meet the requirements of this ARTICLE 8.  Tenant shall use commercially reasonable
efforts to obtain (but shall not be in default hereunder if it does not obtain)
non-recourse financing on any financing secured by a Leasehold Mortgage.

 

8.4           Appraisal. 
For purposes of Section 4.1 and this ARTICLE 8,
the fair-market value of the Tenant’s Leasehold Estate (valued as if such
Leasehold Estate was a fee estate, but taking into account the use restrictions
applicable thereto) (the “Appraised Value”) shall be determined by an
MAI appraiser selected by Tenant (or the Leasehold Mortgagee). The costs
associated with such appraisal shall be Tenant’s responsibility.  If within ten (10) Business Days after
receipt of Tenant’s appraisal, Landlord disagrees with Tenant’s appraisal, then
Landlord shall, at Landlord’s expense, engage its own qualified MAI appraiser,
who shall determine the Appraised Value. 
If the values determined by such appraisers are within ten percent (10%)
of one another, using the lower value as the base amount, then the Appraised
Value shall be the average of the two (2) appraisals.  If the difference between the two (2) appraisals
is more than ten percent (10%), of one another, using the lower value as the
base amount, then the two (2) appraisers shall choose a third (3rd)
qualified MAI appraiser who shall choose one (1) of the values determined
by the two (2) other MAI appraisers or some value in between such values
as the Appraised Value.  If two (2) or
more MAI appraisers are utilized, each Party shall pay the costs associated
with the MAI appraiser selected by such Party, and the Parties shall share
equally the costs associated with a third MAI appraiser, if necessary. As used
herein, “qualified appraiser” shall mean an independent MAI appraiser not
affiliated with either Landlord or Tenant and having at least ten (10) years’
experience appraising medical office buildings in the Hialeah, Florida area.

 

25

 

8.5           Tenant’s Obligations.  Tenant shall cause a true, complete and
correct copy of the original of each Leasehold Mortgage, together with written
notice containing the name and post office address of the Leasehold Mortgagee,
to be delivered to Landlord.  Tenant
shall, from time to time, when and as requested by Landlord, use commercially
reasonable efforts to obtain from the Leasehold Mortgagee and deliver to
Landlord a certificate from the Leasehold Mortgagee certifying as to the amount
of the unpaid principal balance of the loan secured by the Leasehold Mortgage,
together with accrued interest thereon, and as to the existence or absence of
defaults thereunder. Tenant shall deliver to Landlord copies of all notices of
default received by Tenant from the Leasehold Mortgagee promptly following
receipt of same by Tenant.

 

8.6           Cross Collateralization Prohibition.  The financing secured by the Leasehold
Mortgage shall not be cross-collateralized with any other obligation.

 

8.7           Other Required Terms of
Leasehold Mortgage.

 

(a)         Each
Leasehold Mortgage shall require that the Leasehold Mortgagee give to Landlord
a copy of each notice of default under such Leasehold Mortgage (a “Mortgage
Default”) given to Tenant at the same time as and whenever any such notice
of default shall be given by such Leasehold Mortgagee to Tenant, addressed to
Landlord at its address as set forth in this Lease or as otherwise last
furnished to such Leasehold Mortgagee.

 

(b)        Each
Leasehold Mortgagee agrees that it will not seek to foreclose its lien on the
leasehold interest created by this Lease by reason of any act or omission of
Tenant until:

 

(i)            the Leasehold Mortgagee has given to Landlord a copy of
the notice to Tenant with respect to the Mortgage Default upon which the
proposed foreclosure is based (the “Landlord Notice”); and

 

(ii)           Landlord shall have the right, but shall not be obligated,
to remedy such Mortgage Default, with respect to monetary defaults within
thirty (30) days after Landlord’s receipt of the Landlord Notice from Leasehold
Mortgagee, and with respect to other defaults, within sixty (60) days after
Landlord’s receipt of the Landlord Notice from Leasehold Mortgagee if such
Mortgage Default is capable of being cured within such sixty (60) day period,
or such longer period of time as may be reasonably necessary to cure such
Mortgage Default provided Landlord is diligently pursuing a cure and Landlord
has agreed in writing for the benefit of such Leasehold Mortgagee to cure such
Mortgage Default, and such time period(s) have expired without the cure of
the Mortgage Default. In such event, Leasehold Mortgagee shall accept the cure
of a Mortgage Default tendered by Landlord.

 

(c)         Any
Landlord Notice pursuant to this Section shall be sent by certified mail,
return receipt requested or by a nationally recognized commercial overnight
delivery service to the address set forth herein (or such other address as may
hereinafter be designated in writing to said Leasehold Mortgagee by
Landlord).  The Leasehold Mortgagee must
accept performance by Landlord of any covenant, condition or agreement on
Tenant’s part to be performed under the Leasehold Mortgage with the same force
and effect as though performed by Tenant.

 

26

 

(d)        The
time for Landlord to cure any Mortgage Default which reasonably requires that
Landlord be in possession of the Premises to do so shall be deemed extended to
include the period of time required by Landlord to obtain such possession (by
eviction or otherwise) with due diligence; provided, however, that Landlord
shall have delivered to such Leasehold Mortgagee its written commitment to cure
outstanding Mortgage Defaults reasonably requiring possession of the Premises;
and further provided, however, that during such period all other obligations of
Tenant under the Leasehold Mortgage are being duly performed to the extent that
Landlord can do so.

 

8.8           New Lease. 
In the event of the termination of this Lease as a result of an Event of
Default after the expiration of any cure periods applicable to Tenant and/or
Leasehold Mortgagee, including if this Lease is rejected or disaffirmed
pursuant to any bankruptcy or similar law or proceeding, Landlord shall provide
Leasehold Mortgagee with written notice that this Lease has been terminated,
together with a statement of all sums which would at that time be due under
this Lease absent such termination and of all other defaults, if any, known to
Landlord.  Leasehold Mortgagee shall then
have the right, but not the obligation, to have it or its Affiliate designee (“Successor
Tenant”) enter into a new lease (the “New Lease”) of the Premises
with Landlord for the remainder of the Term, effective upon the date of such
termination, at the Rent provided for herein, and upon all of the other terms,
covenants and conditions of this Lease, provided (a) Leasehold Mortgagee
makes written request upon Landlord for such New Lease within thirty (30) days
after receipt of Landlord’s notice of such termination, (b) Leasehold
Mortgagee shall pay, at the time of execution and delivery of such New Lease,
any and all sums which would at such time be due pursuant to this Lease, but
for such termination (plus all reasonable expenses, including reasonable
attorneys’ fees, which Landlord shall have incurred by reason of such termination
and the execution and delivery of the New Lease), and (c) Successor Tenant
shall assume in writing all of the obligations of the landlord under any then
existing Space Leases; provided further in no event shall a Leasehold Mortgagee
have a right to a New Lease if this Lease is terminated as a result of casualty
or condemnation and the Leasehold Mortgagee applies the insurance or
condemnation proceeds, or any portion thereof to the outstanding balance of the
indebtedness secured by its Leasehold Mortgage. 
The Successor Tenant under any such New Lease shall be liable to perform
the obligations imposed by such New Lease only during the period the Successor
Tenant has ownership of the leasehold estate created thereby. Upon the
execution of such New Lease, Landlord shall allow the Successor Tenant, to
offset against the sums otherwise due under this Section or under
the New Lease, an amount equal to the net income in fact derived by Landlord
from the Premises during the period from the date of termination of this Lease
to the date of the beginning of the term of the New Lease.  In addition to the New Lease, Landlord shall
upon the request of the Successor Tenant, execute and deliver (in recordable
form) to such Successor Tenant or its nominee, such deeds, bills of sale,
assignments and other instruments whereby the Landlord conveys to the Successor
Tenant or its nominee, without warranty of title but with confirmation of no
prior assignment of Landlord, all of Landlord’s right, title and interest, in,
to and under any portion of Tenant’s Interest that may have reverted to
Landlord on account of the termination of this Lease, including without
limitation any Space Leases.

 

27

 

ARTICLE 9

ASSIGNMENT, MORTGAGES AND
SUBLETTING

 

9.1           Assignment.

 

(a)           Tenant covenants that, except as set forth in ARTICLE 8
above, it shall not assign, mortgage, or encumber this Lease, nor sublease, nor
permit the Premises or any part of the Premises to be used or occupied by
others (other than tenants under Space Leases), without the prior written
consent of Landlord in each instance, which consent may granted, withheld or
conditioned in the reasonable discretion of Landlord.  Any assignment or sublease in violation of
this ARTICLE 9 will be void. If this Lease is assigned, or if the
Premises or any part of the Premises are subleased or occupied by anyone other
than Tenant in violation of the terms of this Lease, Landlord may, after
default by Tenant, collect rent from the assignee, subtenant, or occupant, and
apply the net amount collected to Rent, which collection shall not be deemed a
waiver of any provision hereof. No assignment, sublease, occupancy, or
collection shall be deemed (i) a waiver of the provisions of this ARTICLE 9;
(ii) the acceptance of the assignee, subtenant, or occupant as Tenant; or (iii) a
release of Tenant from the further performance by Tenant of covenants on the
part of Tenant contained in this Lease including, without limitation, the
covenant to pay Rent. The consent by Landlord to an assignment or sublease will
not be construed to relieve Tenant from obtaining Landlord’s prior written
consent in writing to any further assignment or sublease. Except as
specifically set forth below, no assignment or subletting shall relieve Tenant
from its obligations hereunder, and Tenant shall continue to be liable as a
principal, and not as a guarantor or surety, to the same extent as though no
assignment or sublease has been made.  No
permitted subtenant may assign or encumber its sublease or further sublease all
or any portion of its subleased space, or otherwise permit the subleased space
or any part of its subleased space to be used or occupied by others, without
Landlord’s prior written consent in each instance, which consent may be granted
or withheld in Landlord’s reasonable discretion. Notwithstanding the foregoing,
in the event that Landlord consents, in Landlord’s reasonable discretion, to an
assignment of this Lease by the Tenant in accordance with the terms of this
Lease, then, in connection with such consent, Landlord shall release the then
existing Tenant from any liability to Landlord under this Lease first arising
or accruing subsequent to the consummation of such assignment, and by virtue of
Landlord’s consent to such an assignment, Tenant shall be deemed to have
released Landlord from any liability to Tenant under this Lease. In the event
there is any request for consent to a proposed assignment or sublease, Landlord
denies such consent and Tenant challenges or disputes Landlord’s denial of such
consent, Tenant’s sole and exclusive remedy arising from any such denial of
consent shall be an action for specific performance and Tenant hereby waives,
relinquishes and releases any rights it may have, now or in the future, to
recover damages (including consequential damages) from Landlord arising out of
Landlord’s failure or refusal to grant any such consent. Landlord and Tenant
agree to submit to arbitration any such dispute concerning the denial of
consent to an assignment or sublease pursuant to the terms of Exhibit 9.1(a) attached
hereto and made a part hereof.

 

(b)           If Tenant requests Landlord’s consent to a specific
assignment or subletting (other than Space Leases in accordance with the terms
of this Lease), Tenant shall submit in writing to Landlord at least thirty (30)
days prior to the effective date of the proposed assignment or sublease (i) the
name and address of the proposed assignee or subtenant; (ii) the 

 

28

 

business terms of the proposed assignment or
sublease; (iii) reasonably satisfactory information as to the nature and
character of the business of the proposed assignee or subtenant, and as to the
nature of its proposed use of the space; (iv) banking, financial, or other
credit information reasonably sufficient to enable Landlord to determine the
financial responsibility and character of the proposed assignee or subtenant; (v) delivery
to Landlord of evidence satisfactory to Landlord of Tenant’s and the proposed
assignee’s compliance with ARTICLE 10 of this Lease; (vi) the
proposed form of assignment or sublease for Landlord’s reasonable approval; and
(vii) any other information which Landlord may reasonably deem
relevant.  Contemporaneously with Tenant’s
notice of any request for consent to a transfer (other than Space Leases in
accordance with the terms of this Lease), Tenant shall reimburse Landlord
promptly following request for its reasonable attorneys’ fees incurred in
connection with considering any request for consent to a transfer, and in
addition, if either (1) Landlord consents to such transfer, or (2) Tenant
requests consent to an assignment or subletting more than one (1) time
during any calendar year, Tenant shall also pay to Landlord a transfer review
fee equal to one (1) month’s then current Base Rent. Landlord agrees to
provide Tenant with Landlord’s response to a request for an assignment or
subletting within thirty (30) days of the date that Landlord receives the last
of the documentation and information described in items (i) through (vii) above,
inclusive.

 

(c)           Subject to the terms of this Lease, the transfer of a
majority of the issued and outstanding capital stock of any corporate Tenant of
this Lease, or a majority of the total interest in any partnership or limited
liability company Tenant, or a change in the direct or indirect control or
management of Tenant, however accomplished, and whether in a single transaction
or in a series of related or unrelated transactions, or the transfer of the power
to vote the same (a “Change of Ownership”), will be deemed an assignment
of this Lease requiring Landlord’s consent in each instance; provided, however,
that Behringer Harvard Florida MOB Member, LLC (“BH”) may assign its
equity interests in Tenant to an Affiliate of BH, without Landlord’s consent,
in accordance with the terms of Tenant’s Organizational Documents, provided
that (1) immediately prior to the effective date of the proposed
assignment the proposed assignee is at least as creditworthy as BH was as of
the Effective Date, (2) the proposed assignee is not a Competing Facility,
(3) no physician or other referral source has any ownership in, or control
of, the proposed assignee (unless such ownership and/or control is disclosed in
writing to Landlord in advance of the proposed assignment, and such assignment
is not, in Landlord’s determination, violative of applicable federal laws and
regulations including, without limitation, the so-called Stark I and Stark II
laws and regulations promulgated thereunder), (4) following the proposed
assignment, there is no change in the direct or indirect management or control
of Tenant or change in the right to manage or control Tenant, and (5) )
the transferring party shall not be released of any of its obligations under
Tenant’s Organizational Documents by virtue of such assignment.

 

(d)           Notwithstanding anything to the contrary contained in Section 9.1(a),
Landlord’s consent shall not be required for an assignment or other transfer of
Tenant’s interest under this Lease to an Affiliate of Tenant provided that (i) Tenant
shall notify Landlord in writing of the proposed transaction and the identity
of the proposed assignee, (ii) at the time of such proposed assignment,
transfer or sublease, Tenant shall not be in Default of any of the terms of
this Lease, (iii) any proposed assignee or transferee shall agree in a
writing reasonably acceptable to Landlord that it will assume and be bound by
the terms of this Lease, (iv) there 

 

29

 

shall be no change in use of the Premises, and (v) any
proposed assignee or transferee shall have a net worth no less than the net
worth of Tenant as of the date of execution of this Lease.

 

Under
no circumstances will an assignment or transfer be permitted to a Competing
Facility.

 

(e)           It is an express condition of any permitted assignment or
sublease that Tenant not be in Default of any of the terms of this Lease at the
time Tenant provides Landlord its request for written consent to such assignment
or sublease.

 

(f)            If Tenant assigns this Lease as permitted herein, the
assignee shall expressly assume all of the obligations of Tenant hereunder in a
written instrument satisfactory to Landlord and furnished to Landlord not later
than fifteen (15) days prior to the effective date of the assignment.  In connection with such an assignment,
Landlord agrees to release the assignor of all obligations under this Lease
which first accrue or arise subsequent to the effective date of the assignment,
provided that the assignor shall remain obligated under this Lease for all
liabilities and obligations which accrue prior to the effective date of the
assignment, including without limitation, the obligation to pay all Rent and
all other charges due under this Lease which relate to such period of time.

 

(g)           Any attempted assignment in violation of any terms of this
Lease shall be non-binding upon Landlord and unenforceable by the Parties
thereto and shall constitute a Default by Tenant without any grace or cure period.

 

(h)           Any assignment by Tenant of this Lease as permitted herein
shall include all of Tenant’s interests in the Improvements, and Tenant may not
assign separately this Lease and its interests in the Improvements (i.e., any
such assignment permitted by this Lease shall be of the entire Tenant’s
Leasehold Estate).

 

(i)            Notwithstanding anything to the contrary contained in
this Lease, including, without limitation, the terms of this Section 9.1,
under no circumstances shall Tenant assign this Lease or sublease all or any
part of the Premises to a Competing Facility. Any such assignment or subletting
to a Competing Facility shall be null and void and of no effect and the
Competing Facility shall acquire no rights whatsoever under this Lease by
virtue thereof.

 

9.2           Covenant Against Encumbrance.  Tenant, its successors and assigns, shall
have no right to mortgage, pledge, or otherwise encumber or transfer this
Lease, the MOB or Tenant’s interest herein, except by a Leasehold Mortgage
meeting the requirements of ARTICLE 8.  Any such Leasehold Mortgage shall be subject
to the terms of this Lease and subordinate to the rights of Landlord hereunder.

 

9.3           Space Leasing.

 

(a)           Tenant shall have the obligation to use commercially
reasonable efforts to sublease the MOB to Space Tenants during the Term as set
forth in this Section 9.3. 
Upon the Effective Date, Tenant shall, in consultation with Landlord,
develop the Approved Marketing Plan for the MOB consistent with the terms of
this Section 9.3. 
Thereafter, Tenant shall, in consultation with Landlord, update the
Approved Marketing Plan, and on the first day of each

 

30

 

 

January prepare and deliver to Landlord the next
year’s Approved Marketing Plan for the MOB for Landlord’s review and
input.  Landlord shall have the right to
approve all signs and materials used by Tenant in the promoting or marketing of
Space Leases.  Landlord shall not
unreasonably withhold, condition or delay its consent to any such signs or
materials proposed by Tenant.  Tenant
shall not use any name (excluding the name of the Tenant), mark or logo of
Landlord or any of its Affiliates in connection with the operation of the MOB
without the prior written approval of Landlord, which approval shall not be
unreasonably withheld.  Tenant shall not
otherwise use any name, mark or logo of Landlord or any of its Affiliates for
any other purpose without the express prior written approval of Landlord, which
approval may be granted or withheld in its sole discretion.

 

(b)           Tenant may only sublease space in the MOB to (i) Landlord
(or its Affiliates) in accordance with the terms of this Lease, (ii) to
prospective tenants in accordance with the Approved Marketing Plan, and (iii)
in accordance with the restrictions in Section 7.1(b) and (c).

 

(c)           All Space Tenants of the MOB shall execute a written Space
Lease with Tenant for space in the MOB. For purposes of this Lease, the term “Space
Lease” means a sublease between Tenant, as lessor, and a physician,
physician group or other user permitted under ARTICLE 7, as lessee, and
the term “Space Tenant” means a lessee under a Space Lease. All Space
Leases shall be substantially in the form of Exhibit 9.3(c) attached
hereto and made a part hereof (the “Approved Space Lease”), subject to
any non-material changes that may be negotiated with individual Space Tenants.
Any material changes to the form of the Approved Space Lease shall be subject
to Landlord’s prior written approval. Landlord has the right to approve the
initial lease structure for the MOB.

 

(d)           In the event of termination of this Lease pursuant to the
terms hereof, Landlord agrees to honor any Space Leases conforming to the
requirements of this Section 9.3 as if they were direct leases between
Landlord and such Space Tenants; provided, however Landlord shall not be
liable for any breach of any obligations owed by Tenant, as lessor, to such
Space Tenants under such Space Leases, nor shall Landlord be liable to such
Space Tenants for the return to Space Tenants of (i) any sums on deposit with
Tenant, including, without limitation, security deposits, and rent paid more
than one (1) month in advance, or (ii) tenant allowances or inducements made
available to Space Tenants, including, without limitation, leasehold
improvement allowances, unless such sums on deposit or the cash value of such
allowances or inducements have actually been transferred by Tenant to Landlord.

 

(e)           All Space Leases shall have the following terms: (i) the
Space Leases shall contain the terms set forth in the Approved Marketing Plan;
(ii) the permitted uses, and prohibited uses in ARTICLE 7 shall be set
forth in full; (iii) in no case shall any Space Lease term extend beyond the
Term of this Lease without the prior written consent of Landlord; and (iv) rent
(including all inducements and incentives) shall be on fair market value terms,
and shall comply with the requirements of federal law Stark I and II
anti-referral/fraud regulatory safe harbors. 
Tenant and Space Tenant shall not be permitted to amend the Space Lease
in contravention of this Lease, and any such attempted amendment shall not be
binding upon Landlord.

 

31

 

(f)            Except for a Space Lease, Tenant shall not enter into any
other form of (i) lease, (ii) occupancy agreement, (iii) license, (iv) grant,
(v) option to lease or occupy, (vi) lease renewal, or (vii) other grant of
occupancy rights whether exclusive or non-exclusive for space in the MOB.
Notwithstanding the foregoing, subject to the terms of the REA and the other
terms of this Lease, Tenant may enter into a valet parking concession or
license agreement for parking for the MOB.

 

(g)           Tenant shall furnish Landlord with true, correct and
complete copies of all Space Leases within five (5) Business Days after
execution by the parties thereto.

 

9.4           Right of First Offer to Lease Available Space.

 

(a)           During the Term, Tenant shall deliver to Landlord on the
1st day of each January, April, July, and October of each Lease Year, quarterly
supplements to the last Approved Marketing Plan (collectively, the “Supplements”)
which shall list any Available Space (as defined below) and the terms and
conditions on which Tenant is marketing such Available Space for lease to
prospective tenants. For purposes of this Lease, the term “Available Space”
shall mean space in the MOB from time to time that is not subject to a Space
Lease and is available for lease to third parties.

 

(b)           For a period of ten (10) days (the “Response Period”),
beginning on the date of Landlord’s receipt of the applicable Supplement as
described in Section 9.4(a) above, Landlord (or its Affiliate) shall
have the exclusive right and option, but not the obligation, to lease the
Available Space described in such Supplement (“Right of First Offer”) on
the terms set forth in such Supplement. 
If Landlord (or its Affiliate) exercises such right and option,
commencement and duration of the term shall be as set forth in such Supplement,
except that for purposes of Landlord’s Right of First Offer, the rental rate
shall be the rental rate (as adjusted to reflect no leasing commissions are
payable unless otherwise agreed by Landlord and Tenant) in the Supplement.  Other terms and conditions of Landlord’s
occupancy shall, in the case of a prospective lease of Available Space, be as
set forth in the Approved Space Lease, as may be amended by Landlord and Tenant
by mutual agreement.  Subsequent to
Landlord entering into a lease under this Section, Landlord (or its Affiliate)
may, without obtaining Tenant’s written consent, either (x) assign its
leasehold interest in any such lease to an Affiliate or entity in which it owns
a financial interest, or (y) designate a third party (which need not be an
Affiliate of Landlord) which shall enter into a new lease with Tenant, on the
terms in the applicable Supplement, in replacement of the lease by Landlord (or
its Affiliate), and upon execution of such new lease by such third party and
Tenant, Landlord (or its Affiliate) shall have no further liability under the
lease executed by Landlord (or its Affiliate). 
Landlord (or its Affiliate) may exercise its right to lease the Available
Space by delivering written notice to Tenant of Landlord’s (or its Affiliate’s)
desire to so occupy at any time during such Response Period.  If Landlord’s Right of First Offer expires
unexercised, Tenant may market the Available Space upon the terms and
conditions set forth in such Supplement, except for non-material changes to the
rental rate (which shall mean rental rate changes of ten percent (10%) or less)
quoted in the Supplement.

 

9.5           Intentionally Deleted.

 

32

 

9.6           Intentionally Deleted.

 

ARTICLE 10

PREEMPTIVE RIGHTS

 

10.1         Purchase Right of First Refusal.

 

(a)           Tenant shall give Landlord written notice of Tenant’s
intention to Transfer an Interest, which notice (the “Offer Notice”)
shall include (i) the name and address of the prospective transferee, (ii) the
names and addresses of the principal owner(s) of the prospective transferee,
(iii) copies of the most recent audited and unaudited financial statements of
the prospective transferee, (iv) the prospective transferee’s intended use of
the Interest, and (v) the material terms and conditions of the prospective
Transfer together with all other information regarding the prospective Transfer
in the possession of Tenant requested by Landlord.  If a proposed Transfer is part of an offer that includes more than one property, of
which the Interest is included, then the value for the Interest shall be
separately stated, and the Repurchase Right shall only be applicable to the
Interest.

 

(b)           For a period of fifteen (15) days beginning on the date of
Landlord’s receipt of such Offer Notice, Landlord shall have the exclusive
right and option to purchase the Interest (“Repurchase Right”) by
delivering written notice (the “Exercise Notice”) to Tenant.  Subject to the conditions set forth in Section
10.1(f), such exercise shall be
irrevocable and the closing of the transaction shall occur within one
hundred twenty (120) days of the date that Landlord timely exercises its
Repurchase Right.

 

(c)           If Landlord fails to timely exercise its Repurchase Right
pursuant to Section 10.1(b), such right shall be deemed waived, subject
to Section 10.1(d), but only as to that Transfer. If such right is
deemed waived, then, upon written request from Tenant, Landlord agrees to
provide written confirmation of such waiver of the Repurchase Right, in
recordable form, as to the specific proposed Transfer of the Interest. Upon
request Landlord’s Repurchase Right shall continue on subsequent proposed
Transfers of the Interest.

 

(d)           Landlord shall purchase the Interest at a price (including
the deposit of earnest money) equal to the price for which the Interest is to
be sold or transferred to the prospective transferee as set forth in the Offer
Notice. If all or part of the consideration for the proposed Transfer is other
than cash, Landlord’s exercise of its Repurchase Right shall be deemed to be on
the same terms and conditions as long as Landlord agrees to pay the fair market
value (as determined by an appraiser acceptable to both Landlord and Tenant) of
the non-cash consideration to be received by Tenant.  The cost of the appraisal shall be shared
equally by Landlord and Tenant.

 

(e)           If Landlord’s Repurchase Right expires unexercised, Tenant
and the prospective transferee shall, within one fifty (150) days after the
expiration of Landlord’s Repurchase Right, subject to the terms of this Lease,
close the Transfer transaction on the same terms as set forth in the notice
described in Section 10.1(a), except for non-material changes to the
purchase price (which shall mean a change in the purchase price of five percent
(5%) or less).  If Tenant and the
prospective transferee fail to close within said one hundred fifty (150) day 

 

33

 

period, unless extended in writing by Landlord, then
Tenant’s right to Transfer the Interest to such prospective transferee shall
cease, and any future attempt to Transfer the Interest shall again be subject
to Landlord’s Repurchase Right.

 

(f)            In any transaction involving Landlord as purchaser of an
Interest amounting to a fee simple interest, marketable leasehold title to the
Interest shall be conveyed to Landlord free and clear of any and all liens,
encumbrances and exceptions of any kind or nature whatsoever except the
following (the “Permitted Exceptions”): (1) the real estate taxes and assessments  not delinquent; (2) this Lease; (3) easements, restrictions and
encumbrances of record (A) created on or before the Effective Date, and (B)
created after the Effective Date and which do not impair the marketability of
title to the Interest or which Landlord agrees to assume or take title subject
to; (4) Space Leases; (5) that certain Declaration of Easements, Covenants,
Conditions and Restrictions (as executed by Hospital, whether before or after
the Effective Date, and as may be amended pursuant to its terms, the “REA”);
and (6) all acts done or suffered by, through or under Landlord as well as all matters of record that
existed as of the date of the commencement of any ground lease related to the
Interest.  In the event of a
conflict between this Lease and any of the Permitted Exceptions, the terms of
the applicable Permitted Exception shall control.

 

As
evidence of such title, Tenant shall obtain and deliver to Landlord, within
thirty (30) days after Landlord’s exercise of its Repurchase Right: (1) a
commitment for an ALTA owner’s policy of title insurance (the “Commitment”)
which shall have attached thereto copies of all instruments noted therein as
exceptions to title, and which shall be endorsed to and including the date of
closing, insuring good and marketable title to the Interest, subject only to
the Permitted Exceptions, and with such endorsements (which endorsements will
be at Landlord’s sole expense) as may be reasonably required by Landlord; and
(2) a minimum standard detail requirements for ALTA/ACSM land title surveys of
the land and any building included within the Interest to be purchased (the “Survey”),
prepared by a land surveyor licensed and registered in the state where the
Premises are located and reasonably satisfactory to Landlord.

 

Within
ten (10) Business Days after receipt of the Commitment, the documents listed
therein as exceptions, and the Survey, Landlord shall give Tenant written
notice of any exceptions enumerated in the Commitment and/or any matters shown
on the Survey which are not Permitted
Exceptions and are unacceptable to Landlord.  Tenant shall have twenty (20) Business Days
after receipt of that notice to have those exceptions removed and those matters
corrected, and shall use its reasonable
efforts promptly to do so, and if Tenant is unable or unwilling to do so, Tenant shall so notify Landlord in
writing.  Landlord shall then have a
period of five (5) Business Days from and after its receipt of such notice to
elect either (i) to terminate the Transfer, or (ii) waive such exceptions or
matters that are not acceptable to Landlord and proceed to closing.  If Landlord fails to respond within such five
(5) Business Day period, the Transfer contemplated herein shall be deemed to be
terminated.  Landlord may waive any such
objection and close the Transfer subject to such objection taking a credit
against the purchase price in an amount equal to the known or readily and
objectively ascertainable liquidated amount needed to remove such objection.

 

Any
cost and expense of the Commitment and the title insurance policy issued
pursuant thereto, and of the Survey shall be paid by Tenant. Any transfer fees,
documentary stamp taxes 

 

34

 

(including
any surtax) shall be paid by the parties as is customary in the market where
the Premises are located.  If Landlord
shall exercise its Repurchase Right, but fails to purchase without legal cause,
then Tenant shall keep Landlord’s
earnest money deposit as Tenant’s sole and exclusive remedy.

 

(g)           If the Interest is sold and Landlord does not exercise its
Repurchase Right, the purchaser of the Interest shall not be a Competing
Facility, no physician may own any interest in, or have any control of, the
purchaser, and the purchaser must abide by all of the controls and covenants as
set forth in this Lease, and the Repurchase Right described in this Section.
Landlord has the right to approve the purchaser prior to the sale of the
Interest, which approval may granted, withheld or conditioned in the reasonable
discretion of Landlord.

 

ARTICLE 11

MANAGEMENT, MAINTENANCE AND
REPAIR OF MOB

 

11.1         Management of Premises and MOB.  The MOB shall be maintained, operated and
managed by Tenant or an approved Property Manager at all times during this Term
in a manner consistent with Institutional Quality medical office buildings in
the Hialeah, Florida area.  The selection
of the Property Manager of the MOB shall be subject to Landlord’s approval,
which shall not be unreasonably withheld, including the term of the agreement
and the Property Manager’s compensation, which shall be on market terms and
conditions for similar situated Institutional Quality medical office buildings
in the Hialeah, Florida area.  Landlord
shall have the right from time to time, in addition to all other rights and
remedies available to Landlord hereunder, to require the replacement of the
Property Manager if there exists any material uncured event of default of
Tenant regarding Tenant’s duties under this Section 11.1.  In no event shall the Property Manager own,
manage or operate a Competing Facility within the Restricted Area, nor shall
the Property Manager be owned by (i) the owner of a Competing Facility, or (ii)
any physician (unless such proposed Property Manager is a publicly traded
company and no physician owns or controls more than five percent (5%) of the
equity of such entity).  The term “Property
Manager,” as used herein shall mean the Person that is, with respect to the
MOB, responsible for the day to day maintenance, cleaning, care, security and
safety, and, if applicable, leasing.  In
the event that (1) the Property Manager is in default under the terms of the
property management agreement, and such default is not cured by the Property
Manager within the applicable notice and/or grace period under the property
management agreement, or (2) the Property Manager is not maintaining, operating
and managing the MOB in a manner consistent with Institutional Quality medical
office buildings, and such default is not cured by the Property Manager within
the applicable notice and/or grace period under the Property Management
Agreement, then Landlord, at Landlord’s option, may require Tenant to replace
the Property Manager.

 

11.2         Maintenance of Improvements.  Tenant shall keep the Premises and MOB clean
and in good condition and repair consistent with an Institutional Quality
Medical Office Building.  Tenant shall
make all necessary repairs and replacements of the Premises and MOB so that the
same are kept structurally sound, neat and clean in appearance and acceptable
to Landlord.  Tenant shall not commit
waste or damage or allow the Premises or MOB to suffer waste or damage. When
used in this ARTICLE 11, “repairs” shall include all replacements,
renewals, alterations, additions and betterments.  All repairs made by Tenant shall be at least 

 

35

 

equal in quality and functionality to the original
work performed in constructing the Improvements and shall be made by Tenant in
accordance with all Legal Requirements. 
Without limiting Tenant’s obligations under this Section 11.2,
Tenant shall have and keep in force a maintenance contract, in form and with a
contractor satisfactory to Landlord, providing for quarterly inspection of the
Premises’ heating, ventilating and air conditioning equipment, and providing
for necessary maintenance thereof and repairs thereto.  Such contract shall provide that it will not
be cancelable by either party without thirty (30) days prior written notice to
Landlord. In addition to the foregoing, Tenant agrees to perform the repairs
and/or maintenance, as applicable, described on Exhibit 11.2 attached
hereto and made a part hereof (the “Cap-X Work”), at Tenant’s sole cost
and expense, and in no event will the costs of such repairs and/or maintenance
be passed on or passed through to tenants under any Space Leases.  In order to secure Tenant’s obligations to
timely complete the Cap-X Work identified on Exhibit 11.2 as “Immediate”
and “Year 1”, BH-AW Florida MOB Venture, LLC, a Delaware limited liability
company and sole member of Tenant (the “Joint Venture”), (i) has
established, on or prior to the Commencement Date, a separate bank account (the
“Bank Account”) at Bank of America (the “Bank”) with an initial
balance of not less than $5,454,495.00 (the “Cap-X Funds”), and (ii)
hereby pledges and assigns to Landlord, and grants to Landlord a first priority
security interest in, all of the Joint Venture’s right, title and interest in
and to the Bank Account (including, without limitation, the Cap-X Funds).  This Lease is, among other things, intended
by the parties to be a security agreement for purposes of the uniform
commercial code in effect in the State of Florida (the “UCC”), and
Landlord shall have the right to file and/or record a UCC-1 financing statement
against the Joint Venture to perfect its security interest in the Bank Account
(including, without limitation, the Cap-X Funds). In addition, on or prior to
the Commencement Date, the Joint Venture, the Bank and Landlord shall execute
and deliver a deposit account control agreement with respect to the Bank
Account, in a form reasonably acceptable to Landlord and the Bank. Landlord
acknowledges that (a) the Joint Venture has funded the Cap-X Funds into the
Bank Account for the benefit of Tenant and other subsidiaries of the Joint
Venture that have required repair and maintenance obligations under other
ground leases with Landlord or its Affiliates (“Related Ground Leases”),
(b) subject to the terms of this Section, the Joint Venture will be permitted
to withdraw funds from the Bank Account in order to contribute funds to Tenant
to pay for the cost to complete such Cap-X Work under this Lease and/or to its
other subsidiaries to pay for the required repair and maintenance obligations
under the Related Ground Leases, and (c) that the amount of Cap-X Funds
required to be deposited into the Bank Account may be reduced if and to the
extent a Leasehold Mortgagee under this Lease or under any other Related Ground
Lease requires funds to be escrowed or reserved separately for the same Cap-X
Work required under this Lease and/or the required repair and maintenance
obligations under any other Related Ground Lease.  The Cap-X Funds may be invested so long as
any interest earned in connection therewith is added to and becomes part of the
Cap-X Funds.  If Tenant fails to timely
complete the Cap-X Work identified on Exhibit 11.2 as “Immediate” and “Year
1” subject to any applicable cure rights under this Lease, Landlord shall
deliver a notice of Event of Default to Tenant and the Bank, and the Joint
Venture shall have no further right to withdraw Cap-X Funds from the Bank
Account without the prior written consent of Landlord. In addition, upon the
occurrence of an Event of Default, Landlord shall have sole access to the Bank
Account and the Cap-X Funds for the purpose of using the Cap-X Funds to
complete the Cap-X Work, if Landlord, at its option, elects to complete the
Cap-X Work. If and when Tenant cures such Event of Default, Landlord shall
deliver written notice to Tenant, the Joint Venture and the Bank 

 

36

 

acknowledging the cure of such Event of Default and
the Joint Venture’s right to withdraw Cap-X Funds from the Bank Account from
and after the date of such notice without obtaining Landlord’s prior written
consent.  Upon completion of the Cap-X
Work under this Ground Lease and the other Related Ground Leases, (I) the
pledge and security interest granted to Landlord by Tenant in this Section
11.2 shall be of no further force or effect and shall be released in
writing by Landlord, and (II) Tenant may use any remaining funds in the Bank
Account for any purpose and/or may close out the Bank Account. The Joint
Venture joins in this Lease for the purpose of acknowledging its agreement with
the foregoing terms of this Section.

 

11.3         Alterations. 
Tenant shall not make any alterations to the Improvements initially
constructed pursuant to ARTICLE 5 without the prior written consent of
Landlord not to be unreasonably withheld, except that Landlord’s consent shall
not be required for alterations: (a) as may be necessary due to emergency or to
comply with Legal Requirements, (b) repair or replacement of building systems
(such as replacement of HVAC systems), (c) interior tenant finish-out, and (d)
the net cost of which shall not exceed Two Hundred Fifty Thousand and No/100
Dollars ($250,000.00) and that do not in any way alter or affect the external
appearance or structural integrity of the MOB. 
Tenant shall not make any alterations which may weaken or impair the
structural strength or lessen the fair market value of all or any part of the
MOB, or that may impair access, ingress or egress to, from or within the
Campus, or change the site utilization or design of any building comprising
part of the Campus or the MOB.

 

At
least ten (10) days before any construction commences or materials are
delivered for any alterations that Tenant is making to the Premises, whether or
not Landlord’s consent is required, Tenant shall give written notice to
Landlord as to when the construction is to commence or the materials are to be
delivered.  Landlord shall then have the
right to post and maintain on the Premises any notices that are required to protect
Landlord and Landlord’s interest in the Premises from any liens for work and
labor performed or materials furnished in making the alterations; provided,
however, that it shall be Tenant’s duty to keep the Premises free and clear of
all liens, claims and demands for work performed, materials furnished or
operations conducted on the Premises at the request of Tenant.  Tenant shall deliver to Landlord all
applicable mechanics lien releases immediately following the completion of any
alterations.

 

Tenant
shall not at any time permit any mechanics’, laborers’ or materialmen’s liens
to stand against the Premises for any labor or material furnished to Tenant or
claimed to have been furnished to Tenant or Tenant’s agents, contractors or
subtenants, in connection with work of any character performed or claimed to
have been performed on the Premises by or at the direction or sufferance of
Tenant.  If any such lien attaches to the
Premises and Tenant does not cause the same to be released by payment, bonding
or otherwise within thirty (30) days after the attachment thereof, Landlord
shall have the right but not the obligation to cause the same to be released,
and any sums expended by Landlord in connection therewith shall be payable by
Tenant on demand with interest thereon from the date of expenditure by
Landlord.

 

11.4         Utilities. 
Tenant alone shall be responsible for providing public water, sanitary
sewer service, storm water drainage, electric, gas, telephone and all other
necessary utilities and other services from the boundary lines of the Premises
to the MOB.  The cost of access and the
use and consumption of all such utilities and services shall be borne solely by
Tenant and no interruption, discontinuance or cessation thereof shall affect
Tenant’s obligations hereunder or 

 

37

 

result in a termination of or otherwise affect in
any way this Lease. Landlord shall not be responsible for any interruption,
discontinuance or cessation of any such utilities or services.

 

11.5         No Landlord Services. 
Tenant acknowledges that Landlord shall furnish no services during the
Term, it being understood that Tenant shall be responsible for the provision of
all services to the Premises and the MOB.

 

11.6         Compliance with Legal Requirements.  Regardless of cost or inconvenience, Tenant
shall, at its own cost and expense, comply promptly and conform with all
present and future material Legal Requirements governing the Premises or its
use.  Tenant shall, at its own cost and
expense, make any and all additions, alterations or changes to the Premises or
any portion thereof as required by any Governmental Authority and shall comply
promptly with all present and future material Legal Requirements.

 

11.7         No Change in Zoning. 
Landlord agrees that it will not apply for or seek governmental or
quasi-governmental approval for any use of the Campus which requires the grant
of any type of zoning amendment from the applicable zoning authority which
would prohibit the use of the Premises for the MOB.

 

11.8         Permitted Contests. 
Tenant, at Tenant’s expense, may contest, by appropriate legal
proceedings conducted in good faith and with due diligence, the amount or
validity or application, in whole or in part, of any Taxes or any Legal
Requirement or insurance requirement or any lien, attachment, levy,
encumbrance, charge or claim provided that (i) in the case of an unpaid Tax,
lien, attachment, levy, encumbrance, charge or claim, the commencement and
continuation of such proceedings shall suspend the collection thereof from
Landlord and from the Premises; (ii) neither the Premises nor any Rent
therefrom nor any part thereof or interest therein would be in any immediate
danger of being sold, forfeited, attached or lost; (iii) in the case of a Legal
Requirement, Landlord would not be in any immediate danger of civil or criminal
liability for failure to comply therewith pending the outcome of such
proceedings; (iv) in the case of a Legal Requirement and/or a Tax, lien,
encumbrance or charge, Tenant shall give such reasonable security as may be
demanded by Landlord to insure ultimate payment of the same and to prevent any
sale or forfeiture of the affected Premises or the Rent by reason of such
nonpayment or noncompliance; provided, however, the provisions of this Section
shall not be construed to permit Tenant to contest the payment of Rent or any
other sums payable by Tenant to Landlord hereunder; (v) in the case of an
insurance requirement, the coverage required by this Lease shall be maintained;
and (vi) if such contest be finally resolved against Landlord or Tenant, Tenant
shall, as Additional Rent due hereunder, promptly pay the amount required to be
paid, together with all interest and penalties accrued thereon, or comply with
the applicable Legal Requirement or insurance requirement.  Landlord, at Tenant’s expense, shall execute
and deliver to Tenant such authorizations and other documents as may be
reasonably required in any such contest, and, if reasonably requested by Tenant
or if Landlord so desires, Landlord shall join as a party therein.  Tenant hereby agrees to indemnify and save
Landlord harmless from and against any liability, cost or expense of any kind
that may be imposed upon Landlord in connection with any such contest and any
loss resulting therefrom.

 

11.9         Telecommunications Equipment and Services.  Unless otherwise restricted by agreement,
statute or regulation, Landlord shall have the non-exclusive right, without
payment of 

 

38

 

any fee to Tenant, to provide, without limitation,
telephone switching and information and communication services (“Telecommunication
Services”) to Space Tenants of the MOB or to otherwise serve operations on
the Campus. Landlord shall repair any damage to the Premises and the
Improvements thereon caused by Landlord’s exercise of its rights
hereunder.  Landlord shall retain title
to all equipment, cabling, antennae and other personal property and fixtures
located, as of the Effective Date and thereafter, in or upon the MOB and owned
by Landlord and used by Landlord whether to provide the Telecommunication
Services or otherwise used by Landlord in the operation of the Hospital and/or
the Campus.  Tenant shall provide
Landlord and the licensees, contractors, agents and employees reasonable access
to all parts of the MOB as shall be reasonably necessary for the installation,
maintenance, repair and replacement of cabling, antennae, and other equipment
necessary for the provision of Telecommunication Services and, without the payment
of any fee by Landlord, Tenant shall continue to make available to Landlord the
telecommunication closets or similar space within the MOB which is utilized and
occupied by such switching and other equipment used in the provision of
Telecommunications Services.  Tenant
shall not directly or indirectly, as for example, through an Affiliate of
Tenant, market Telecommunication Services to Space Tenants of the MOB.  Incident to the provision of
Telecommunication Services, Landlord shall keep the Leasehold Estate of Tenant
lien-free from any liens related to such Telecommunications Services or the
exercise of rights by Landlord under this Section, and Landlord shall indemnify
and hold Tenant harmless from and against all loss, cost and expense in connection
with any liens or claims of lien resulting from the installation, maintenance,
repair and replacement of cabling and other equipment necessary for the
provision of Telecommunication Services.

 

11.10       Access Rights for Other Personal Property.  Landlord reserves the right to install in the
MOB from time to time during the Term certain personal property, which
facilitate the Campus and/or Hospital (e.g. antennae, rooftop warning light
systems, security cameras, dish systems, fire protection/detection systems,
etc.), the ownership of which has been retained by Landlord (the “Landlord’s
Retained Personal Property”).  Tenant
shall provide Landlord and the licensees, contractors, agents and employees
reasonable access to all parts of the MOB as shall be reasonably necessary for
the installation, maintenance, repair and replacement of Landlord’s Retained
Personal Property without the payment of any fee by Landlord to Tenant for such
access and free of claim of constructive eviction.  Tenant shall continue to make available to
Landlord access to Landlord’s Retained Personal Property throughout the Term;
provided, however, the operation, repair and maintenance of such Retained
Personal Property shall not unreasonably interfere with or disrupt Tenant’s use
and operation of the MOB and/or the building systems located therein and
Landlord shall repair any damage to the Premises caused by Landlord’s exercise
of its rights hereunder.  Incident to the
installation of Landlord’s Retained Personal Property, Landlord shall keep the
Leasehold Estate of Tenant lien-free and shall indemnify and hold Tenant
harmless from and against all loss, cost and expense in connection with any
liens or claims of lien resulting from the installation, maintenance, repair
and replacement of Landlord’s Retained Personal Property.

 

ARTICLE 12

INSURANCE AND INDEMNIFICATION

 

12.1         Tenant’s Insurance. 
Tenant will procure and maintain during the Term a policy or policies of
insurance covering the following risks (collectively, the “Tenant’s
Insurance”): 

 

39

 

Workers’ Compensation; Employer’s Liability;
Commercial General Liability; Automobile Liability insurance (if applicable);
Property Damage; Boiler and Machinery; Builder’s Risk (during the period of any
construction on the Premises); Professional (Errors and Omissions) Liability;
and in the future, such additional insurance coverages as may be customary for
facilities such as the MOB and upon such commercially available terms. The
coverages, policy limits, terms and conditions of the Tenant’s Insurance shall
be as set forth in Exhibit 12.1. 
All insurance policies required hereunder shall be written by an
insurance company or companies reasonably acceptable to Landlord and shall be
non-cancelable and non-amendable without thirty (30) days (10 days for
non-payment of premiums) prior written notice to Landlord.  The original policies or certificates thereof
shall be furnished to Landlord with evidence of timely payment of the premium
therefor.

 

Tenant
shall not take out separate insurance concurrent in form or contributing in the
event of loss with that required in this Section, or increase the amounts of
any then existing insurance, by securing an additional policy or additional
policies, unless all parties having an insurable interest in the subject matter
of the insurance, including Landlord and any Leasehold Mortgagee, are included
therein as additional insureds or loss payees, the loss is payable under said
insurance in the same manner as losses are payable under this Lease, and such
additional insurance is not prohibited by the existing policies of
insurance.  Tenant shall immediately
notify Landlord of the taking out of such separate insurance or the increasing
of any of the amounts of the existing insurance by securing an additional
policy or additional policies.

 

Each
Party hereto hereby waives any and every claim which arises or may arise in its
favor and against the other Party hereto during the Term for any and all loss
of, or damage to, any of its property located within or upon, or constituting a
part of, the Premises, which loss or damage is covered by valid and collectible
insurance policies, to the extent that such loss or damage is recoverable under
such policies.  The waiver set forth
hereinabove shall bar the assertion of any claim made by a subrogee against a
Party, whether the asserted claim is one covered by insurance or
otherwise.  Said mutual waiver shall be
in addition to, and not in limitation or derogation of, any other waiver or
release contained in this Lease with respect to any loss or damage to property
of the Parties hereto.  Inasmuch as the
said waivers will preclude the assignment of any aforesaid claim by way of
subrogation (or otherwise) to an insurance company (or any other Person), each
Party hereto agrees immediately to give each insurance company which has issued
to it policies of insurance, written notice of the terms of said mutual
waivers, and to have such insurance policies properly endorsed, if necessary,
to prevent the invalidation of said insurance coverage by reason of said
waivers, so long as such endorsement is available at a reasonable cost.

 

After
an Event of Default occurs hereunder, Tenant shall make such periodic payments
of insurance premiums in accordance with Landlord’s requirements after receipt
of notice thereof from Landlord.

 

12.2         Indemnification of Landlord by Tenant.  Except to the extent prohibited by any Legal
Requirements, Tenant shall indemnify and save Landlord, together with its
parent, Affiliates and subsidiary organizations, its and their respective
shareholders, members, directors, managers, officers, employees and agents
(collectively “Landlord Indemnitees”) harmless against and from all
liabilities, obligations, damages, penalties, claims, costs, liens, charges and

 

40

 

expenses, including but not limited to reasonable
fees and costs for architects, engineers, attorneys and other professionals,
which may be imposed upon or incurred by or asserted against Landlord
Indemnitees  (unless caused by the gross
negligence or willful misconduct of Landlord) by reason of any of the following
occurrences during the Term of this Lease: any work done, in or about the
Premises or any part thereof by Tenant or any of its agents, contractors,
employees, subtenants, licensees or invitees; any use, non-use, possession,
occupation, condition, operation, maintenance or management of the Premises or
any part thereof; any negligence on the part of Tenant or any of its agents,
contractors, employees, subtenants, licensees or invitees; any accident, injury
or damages to any person or property occurring in, on or about the Premises or
any part thereof; violation of any Legal Requirement by Tenant or anyone acting
by, through or under Tenant or any failure on the part of Tenant to perform or
comply with any of the covenants, agreements, terms, provisions, conditions or
limitations contained in this Lease on its part to be performed or complied
with.  In case any action or proceeding
is brought against any Landlord Indemnitee by reason of any such claim, Tenant,
upon written notice from Landlord, shall at Tenant’s expense resist or defend
such action or proceeding by counsel approved by Landlord in writing, which
approval Landlord agrees not to unreasonably withhold.  If Tenant has supplied Landlord with
insurance policies covering any of the aforementioned risks, no claim shall be
made against Tenant under this ARTICLE 12 unless and until the insurer
shall fail or refuse to defend and/or pay all or any part thereof.

 

12.3         Indemnification of Tenant by Landlord.  Except to the extent prohibited by any Legal
Requirements, Landlord shall indemnify and save Tenant together with its
parent, Affiliates and subsidiary organizations, its and their respective
shareholders, members, directors, managers, officers, employees and agents
(collectively “Tenant Indemnitees”) harmless against and from all
liabilities, obligations, damages, penalties, claims, costs, charges and
expenses, including but not limited to reasonable fees and costs for
architects, engineers, attorneys and other professionals, which may be imposed
upon or incurred by or asserted against Tenant Indemnitees by reason of any of
the following occurrences during the Term of this Lease: any negligence on the
part of Landlord or any of its agents, contractors, employees, subtenants,
licensees or invitees.  In case any
action or proceeding is brought against any Tenant Indemnitee by reason of any
such claim, Landlord, upon written notice from Tenant, shall at Landlord’s
expense resist or defend such action or proceeding by counsel reasonably
acceptable to Tenant.  If Landlord has
insurance policies covering any of the aforementioned risks, no claim shall be
made against Landlord under this ARTICLE 12 unless and until the insurer
shall fail or refuse to defend and/or pay all or any part thereof.

 

12.4         Hazardous Material - Premises.  Tenant, its agents, employees, contractors,
Space Tenants or invitees shall not cause or permit any Hazardous Material to
be brought upon, kept or used in or about the Campus, unless such Hazardous
Material is necessary to the business of any such Person and such Hazardous
Material is used, kept, stored and disposed of in a manner that complies with
all label requirements and with all Environmental Law regulating any such
Hazardous Material so brought upon or used or kept in or about the Campus.
Tenant shall not install, use, dispose of on, or incorporate into the Premises
(1) any asbestos or asbestos-containing materials (which for the purpose hereof
shall be deemed a toxic hazardous material), or (2) any underground storage
tanks. If Tenant or its agents, employees, contractors, Space Tenants or
invitees breaches the obligations stated in the preceding sentences or if the
presence of Hazardous Material on the Campus, even if present with the consent
of Landlord, results in 

 

41

 

contamination of the Premises or the Campus, or if
contamination of the Premises or the Campus by Hazardous Material otherwise
occurs, then Tenant shall indemnify, defend and hold Landlord harmless from any
and all claims, judgments, damages, penalties, fines, costs, liabilities or
losses (including, without limitation, diminution in value of the Premises or
the Campus, damages for the loss or restriction on use of the Campus and sums
paid in settlement of claims, attorneys’ fees, consultant fees and expert fees)
which arise during or after the Term as a result of such contamination.  This indemnification of Landlord by Tenant
includes, without limitation, costs and reasonable attorneys fees incurred by
Landlord in connection with any investigation of site conditions or any
clean-up, remedial, removal or restoration work performed by any individual or
entity, regardless of whether such investigation or work is required by any
federal, state or local governmental agency or political subdivision because of
Hazardous Material present in the soil or ground water on or under the Campus,
and shall survive the cancellation, termination or expiration of the Term.  Without limiting the foregoing, if the
presence of any Hazardous Material on the Premises or the Campus caused or
permitted by Tenant results in any contamination of the Premises or the Campus,
Tenant shall promptly take all actions at its sole expense as are necessary to
return the Premises and the Campus to the condition existing prior to the
introduction of any such Hazardous Material to the Premises or the Campus;
provided that Landlord’s approval of such actions shall first be obtained,
which approval shall not be unreasonably withheld so long as such actions would
not potentially have any material adverse long-term or short-term effect on the
Premises or the Campus.  As used herein,
the term “Hazardous Material” means any hazardous or toxic substance,
material or waste, which is or becomes regulated by any local governmental
authority, the State of Florida or the United States Government.  The term “Hazardous Material”
includes, without limitation, any material or substance which is (a) petroleum,
(b) asbestos, (c) radioactive material or waste, (d) Infectious Waste, (e)
designated as a “hazardous substance” pursuant to Section 311 of the Federal
Water Pollution Control Act (33 U.S.C. § 1317), (f) defined as a “hazardous
waste” pursuant to Section 1004 of the Federal Resource Conservation and
Recovery Act, 42 U.S.C. § 6901 et seq. (42 U.S.C. § 6903), (g) defined as a “hazardous
substance” pursuant to Section 101 of the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 (42 U.S.C. § 9601), (h) regulated under
the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.) or defined as a “PCB,”
or (i) any other substance or material similarly classified by any other
federal, state or local statute or ordinance or by any rule or regulation promulgated
or adopted pursuant thereto, whether now existing or hereinafter enacted.  Tenant shall arrange for the removal and
proper disposition of any infectious, hazardous or radioactive waste or other
medical wastes from the Premises by qualified vendors and in accordance with
Legal Requirements. Upon the Landlord’s reasonable request, at any time and
from time to time during the existence of this Lease, the Tenant will provide
at the Tenant’s sole expense (unless such request by Landlord was not based on
Landlord’s good faith belief, supported by reasonable evidence, that Tenant is
operating the Premises in violation of the terms of this Section, in which case
Landlord will pay the reasonable cost thereof), an inspection or audit of the
Premises from an engineering or consulting firm approved by the Landlord
indicating the presence or absence of such Hazardous Materials on the Premises.
If the Tenant fails to provide same after thirty (30) days notice, the Landlord
may order same, and the Tenant grants to the Landlord and its employees and
agents access to the Premises and a license to undertake the testing.  The cost of such tests, together with
interest thereon at the Interest Rate, shall be Additional Rent owing by the
Tenant to the Landlord pursuant to this Lease.

 

42

 

12.5         Notification. 
Tenant shall immediately notify the Landlord in writing: (a) of any
existing, pending, or, to the knowledge of Tenant, threatened investigation or
inquiry regarding the Premises by any governmental authority in connection with
any applicable Environmental Laws and will transmit to Landlord copies of any
citations, orders, notices or other materials, governmental or other
communication received with thereto or other environmentally regulated
substances affecting the Premises or Tenant; (b) should Tenant become aware of
any litigation, enforcement, or threat of litigation relating to any alleged
unauthorized release of any Hazardous Materials or the existence of any Hazardous
Materials or other environmental contamination, liability, or problem with
respect to or arising out of or in connection with the Premises; and (c) of any
change in the nature or extent of any pollutants, toxic materials, petroleum
oil or waste oil, any Hazardous Materials maintained on, in or under the
Premises or used in connection therewith.

 

12.6         Survival.  Section
12.2 to Section 12.5, inclusive, shall survive the expiration or any
termination of this Lease.

 

ARTICLE 13

DAMAGE OR DESTRUCTION

 

13.1         Duty to Repair. 
Except as otherwise provided in this ARTICLE 13, if the MOB or
any part thereof shall be damaged or destroyed by any casualty or cause
whatsoever, Tenant shall promptly give written notice thereof to Landlord, and
Tenant shall, at its sole cost and expense, and whether or not any insurance
proceeds are available or sufficient for such purpose, restore, repair, or
rebuild the MOB to the condition and value prior to such damage or
destruction.  Alternatively, Tenant may,
at its election, either remove all of the Improvements on the Premises and
dispose of them in accordance with Legal Requirements, and construct the
Replacement MOB, or remove any damaged or destroyed portion of the MOB and
replace said portion with new improvements, provided that Tenant complies with
the requirements of this Lease concerning construction of the
Improvements.  Tenant shall commence
reconstruction, repair, restoration, or rebuilding of the damaged or destroyed
portion within ninety (90) days after the occurrence of such damage or
destruction thereof (provided that if such reconstruction, repair, restoration,
or rebuilding of the damaged or destroyed portion cannot reasonably be
commenced within said 90 day period using commercially reasonable efforts,
whether due to delays in government permitting or otherwise, then said 90 day
period shall be automatically extended for a reasonable period of time not to
exceed a maximum of 270 days in any event), and thereafter Tenant shall
diligently pursue the same to completion.

 

13.2         Landlord’s Election to Terminate.  In the event that Tenant fails to commence
its repair, restoration, rebuilding, or reconstruction of the MOB in accordance
with this ARTICLE 13, or fails to substantially complete the same within
one hundred twenty (120) days following the commencement thereof (provided that
if such repair, restoration, rebuilding, or reconstruction of the MOB cannot
reasonably be substantially completed within said 120 day period using
commercially reasonable efforts, then said 120 day period shall be
automatically extended for a reasonable period of time in order to make the
applicable repair, restoration, rebuilding, or reconstruction provided that
Tenant diligently pursues completion of the same), and in the further event
that Tenant shall not cure such failure within thirty (30) days after notice
thereof from Landlord, Tenant’s failure shall be deemed a Default under this
Lease.  If Tenant is in 

 

43

 

Default under this Lease, any insurance proceeds
which shall have been paid to Tenant and not applied to the demolition and
removal of the Improvements or the repair, restoration, rebuilding, or
reconstruction of the MOB (excluding any insurance proceeds paid to Leasehold
Mortgagee in accordance with any existing Leasehold Mortgage) shall be deemed
Additional Rent due and payable by Tenant to Landlord immediately prior to the
termination of Tenant’s rights under this Lease.  All insurance proceeds not yet paid to Tenant
(excluding any insurance proceeds to be paid to Leasehold Mortgagee in
accordance with any existing Leasehold Mortgage) shall become the property of
Landlord upon such a Default.

 

13.3         Payment of Proceeds. 
All insurance proceeds paid on account of such damage or destruction,
less the reasonable cost, if any, incurred in connection with adjustment of the
loss and the collection thereof, shall be paid to Landlord or, if required by
the terms of the Leasehold Mortgage, to the Leasehold Mortgagee in accordance
with the terms of the Leasehold Mortgage, and such proceeds shall be held for
the use and benefit of Tenant in a federally insured, interest-bearing account,
to be applied solely to the payment of the costs of the aforesaid restoration,
repair, rebuilding or reconstruction incurred by Tenant, including the cost of
temporary repairs or for the protection of property pending the completion of
permanent restoration, repairs, rebuilding, or reconstruction.  Such proceeds shall be paid out to, or at the
direction of, Tenant from time to time as such work progresses in the manner
provided in this Lease for the construction of the Improvements.  If the net insurance money as aforesaid shall
be insufficient to pay the entire cost of such work, Tenant shall pay the
deficiency upon demand by Landlord or any applicable Leasehold Mortgagee.
Tenant may finance any such deficiency and secure such financing with a
Leasehold Mortgage. Upon receipt by Landlord and any applicable Leasehold
Mortgagee of satisfactory evidence of the character required hereunder that the
restoration has been completed and paid for in full and that there are no liens
of the character referred to therein, and if said repair, rebuilding, or
restoration shall be otherwise in compliance with the requirements of this Article,
then any balances of the insurance money then held by Landlord or Leasehold
Mortgagee shall be paid to Tenant. 
Anything herein contained to the contrary notwithstanding, in the event
of the termination of this Lease prior to such completion, any and all
insurance proceeds then on hand with the Landlord or Leasehold Mortgagee shall
become the property of Landlord and Leasehold Mortgagee in proportion to their
interests, and Tenant shall have no right, title, interest or claim thereto or
therein whatsoever. If the Leasehold Mortgagee elects to apply the insurance or
condemnation proceeds to the debt secured by the Leasehold Mortgage as
permitted by Article 8, it shall be obligated to release the Premises
and the interests related to the Premises from the liens, security interests
and assignments of the Leasehold Mortgage. If the insurance or condemnation
proceeds are applied by the Leasehold Mortgagee to the debt secured by the
Leasehold Mortgage in accordance with the terms of this Lease, the Leasehold
Mortgagee shall be obligated to release the Premises and the interests related
to the Premises from the liens, security interests and assignments of the
Leasehold Mortgage.

 

13.4         No Abatement. 
No destruction of or damage to the Improvements by fire or any other
casualty or cause shall relieve Tenant from its liability to pay Rent and other
charges payable under this Lease, and Tenant shall have no right to terminate
or surrender this Lease.  Tenant waives
any rights now or hereafter conferred upon it by statute or other applicable
law to terminate or surrender this Lease or the MOB or any part thereof, or to
any suspension, diminution, abatement or reduction of rent on account of any
such destruction or damage.

 

44

 

ARTICLE 14

CONDEMNATION

 

14.1         Participation in Proceedings.  In the event that the Premises in whole or in
any part, shall be taken in condemnation proceedings or by exercise of any
right of eminent domain or by agreement between Landlord, Tenant, and those
authorized to exercise such right (any such matters being herein referred to as
a “Taking”), Landlord, Tenant, and any Person having an interest in the
award or awards, including, without limitation, any Leasehold Mortgagee, shall
have the right to participate in any such condemnation proceedings or agreement
for the purpose of protecting their interests hereunder.  Each party so participating shall pay its own
expenses therein.

 

14.2         Definitions. 
For purposes of this Lease, the term “Improvements Award” shall
mean that part of any award which shall be specifically attributed by the
condemning authority, or other body authorized to make the award (“Condemnation
Authority”) as compensation for the MOB on the Premises and, in the case of
a partial Taking, any consequential damages to the untaken portions of the MOB;
or, if not attributed by the Condemnation Authority, that part of the award as
shall be determined by agreement between the parties, or by a court of
competent jurisdiction if the parties are unable to reach an agreement, as
being attributable to the MOB and to any consequential damages to such untaken
portions thereof.

 

14.3         Effect of Taking; Termination of Lease.  If at any time during the Term of this Lease
there shall be a Taking of substantially all of the Premises, this Lease shall
terminate and expire on the date of such Taking. Rent hereunder shall be
apportioned and paid to the date of such Taking.  For the purpose of this Article, “substantially
all of the Premises” shall be deemed to have been taken if, in Landlord’s
reasonable determination, the untaken part of the Premises shall be
insufficient for the economic and feasible use and operation of the Premises by
Tenant.

 

14.4         Allocation of Proceeds.  If this Lease shall have terminated as a
result of such a Taking, Landlord shall be entitled to the award for (a) the
underlying land constituting the Premises, (b) consequential damages to and
diminution of the land described in (a) of this sentence not so taken, (c)
shall be entitled to any award for loss of future rental income from the
Premises and loss of the reversionary interest in the Improvements; and (d) the
value of any easement or other property interests or rights in favor of
Landlord provided for in the REA affecting the Premises, if any.  Subject to the terms of any then existing
Leasehold Mortgage and the terms of this Lease, Tenant shall be entitled to the
balance of the Improvements Award.

 

14.5         Continuation of Lease After Taking.  If any Taking shall not be of substantially
all of the Premises, this Lease shall continue after any such partial Taking
and shall remain unaffected, except that Tenant shall, promptly after such
partial Taking and at its expense, take commercially reasonable efforts to
either restore any improvements to the Premises altered or damaged by such
partial Taking to a complete architectural unit, in which event Tenant shall be
entitled to so much of the Improvements Award as may be reasonably necessary to
reimburse Tenant for its costs (the sum of the funds paid by Tenant for labor,
services, materials, supplies, insurance and bond premiums, development,
financing and all other costs and expenses) directly related to such
restoration, or demolish any such damaged or altered Improvements and construct
new Improvements thereon in accordance with the terms of this Lease.  Tenant shall be required 

 

45

 

to restore the Premises regardless of whether the
cost of such restoration exceeds Tenant’s share of the Improvements Award.  Following any such partial Taking, the Base
Rent shall be redetermined equitably by Landlord based on the amount of land
comprising the Premises that was the subject of the Taking and the amount of
land comprising the Premises remaining after such Taking.  The balance of the Improvements Award shall
be apportioned between Landlord and Tenant, with Landlord receiving a
percentage of such balance equal to the number of years of useful life of the
Improvements expected after expiration of the Term, divided by the total number
of years of useful life of the Improvements. 
Alternatively, Tenant may demolish any such damaged or altered
Improvements and construct new improvements thereon in accordance with the
terms of this Lease, in which case the entire Improvements Award shall be the
property of Tenant.  In either case, the
Improvements Award shall be paid to the Landlord or, if required by the terms
of the Leasehold Mortgage, to the Leasehold Mortgagee pursuant to the terms of
the Leasehold Mortgage, and held and disbursed periodically to Tenant as
provided in the case of insurance proceeds in ARTICLE 13. Tenant shall
commence such construction or restoration within ninety (90) days after the
date of such partial Taking, shall diligently pursue such construction or
restoration, and shall use reasonable efforts to substantially complete the
same within one hundred twenty (120) days from the date of the Taking.  If Tenant shall fail to commence or complete such
construction or restoration within the respective time periods specified hereby
(or Tenant has failed to adopt the plan for the completion of such construction
or if Tenant has adopted such a plan, Tenant is not diligently pursuing its
completion), unless such failure is due to circumstances that are beyond the
control of Tenant and in the further event that Tenant does not cure such
failure within thirty (30) days after notice thereof is given by Landlord, such
failure shall be a Default under this Lease, whereupon Landlord shall be entitled
to the entire Improvements Award, or so much thereof as has not been disbursed
and used in construction or restoration. 
Landlord shall commence the construction or restoration of any partial
Taking of the Common Areas within sixty (60) days after the date of such
partial Taking and shall diligently pursue such construction or restoration,
and shall use reasonable efforts to substantially complete the same within six
(6) months from the date of the Taking. 
If Tenant’s share of the Improvements Award shall be less than the costs
incurred by Tenant in construction or restoration, Tenant shall pay all other
such costs not covered by the Improvements Award.

 

14.6         Certain Damages Not Collectible by Tenant.  In the event of any Taking, Tenant shall not
be entitled to any payment based upon the value of the unexpired Term of this
Lease, or for any amount or sum other than Tenant’s share of the Improvements
Award.

 

14.7         Taking of Lesser Interests.  In the event of the Taking of an easement or
any other taking which shall be of an interest or estate in the Premises less
than a fee simple (other than a Taking for temporary use mentioned in Section
14.3 hereof), as a result of which the Premises shall be insufficient for
the economic and feasible operation thereof by Tenant, this Lease shall
terminate and expire with the same force and effect as in the case of a Taking
pursuant to Section 14.3 hereof. 
Otherwise, such Taking shall be deemed insufficient to terminate this
Lease, and the division of the award shall be governed by Section 14.4
and Section 14.5 hereof.  For
purposes of this Section, any change of grade of a roadway on which the
Premises abuts, to the extent that such change impairs Tenant’s use of the
Premises and requires Tenant to make changes to the Premises to restore such
use, shall be deemed a partial Taking subject to this Article, and any recovery
as a result of the same shall be paid to Tenant to the extent provided in this ARTICLE
14 for restoration costs.

 

46

 

14.8         Taking for Temporary Use.  In the event of a Taking of all or a part of
the Premises for temporary use, this Lease shall continue without change as
between Landlord and Tenant, there shall be no redetermination of Rent, and
Tenant shall be entitled to the award made for such use, except that:

 

(a)           for a Taking of all or part of the Premises for a
temporary use, if such award is payable periodically as such temporary use
continues, it shall be paid to Tenant until the date of expiration or termination
of this Lease and to Landlord from and after the date of expiration or
termination of this Lease; or, if any such award shall be in a lump sum, Tenant
shall be entitled to a sum equal to a maximum of three (3) months’ aggregate
Rent, and the balance of such award shall be deposited with Landlord.  Such balance shall be paid to Tenant in equal
quarter-annual installments so long as this Lease shall continue in effect; and

 

(b)           for a Taking of all or part of the Premises for a
temporary use, Tenant shall be entitled to file and prosecute any claim against
the condemnor for damages and to recover the same, for any negligent use, waste
or injury to the Premises throughout the balance of the Term of this
Lease.  The amount of damages so
recovered shall be paid to the Tenant and shall be applied by Tenant first to
any necessary repair or restoration of the Premises occasioned by such
negligent use, waste, or injury.

 

ARTICLE 15

SURRENDER

 

15.1         Surrender of Premises.  Except as herein otherwise expressly provided
in this Lease, Tenant shall surrender and deliver up the Premises and all
Improvements to Landlord at the expiration or other termination of this Lease
or of Tenant’s right to possession hereunder, without fraud or delay (a) in
same condition as exists on the date leased, ordinary wear and tear resulting
from proper use thereof excepted, (b) in such operating condition as is capable
of performing its originally intended use, (c) having been used, operated,
serviced and repaired in accordance with the terms of this Lease and the terms
of manufacturer’s instructions, and (d) free and clear of all liens and
encumbrances (including but not limited to any Leasehold Mortgage,  and other liens or encumbrances on the
Premises and any Improvements to secure the Acquisition Financing or a
Refinance), and without any payment or allowance whatsoever by Landlord on
account of the improvements or any other improvements made by Tenant, except as
otherwise specifically set forth herein. 
The improvements and all other structures and improvements made by
Tenant upon the Premises and Tenant’s personal property and fixtures which
cannot be removed without causing damage to the MOB or the Tenant Common Area
Improvements or the Premises shall become the property of Landlord upon such
expiration or termination.

 

15.2         Removal of Certain Property.  Notwithstanding the provisions of Section
15.1, within ten (10) days following the expiration or other termination of
this Lease or of Tenant’s right to possession hereunder, Tenant shall remove
all or so much of Tenant’s personal property as specified by Landlord from the
Premises. Tenant shall pay or cause to be paid to Landlord the costs of
repairing or restoring any injury or damage to the Premises arising from such
removal so as to return the Premises to the condition thereof that existed (or
was required to exist) 

 

47

 

immediately prior to such removal.  Such costs shall be Additional Rent and shall
be deemed due and payable as of the date on which surrender by Tenant is
required under this Lease.

 

15.3         Property Not Removed. 
Any personal property of Tenant which shall remain in or upon the
Premises after Tenant has surrendered possession of the Premises shall be
deemed to have been abandoned by Tenant, and at the option of Landlord, such
property:  (a) shall be retained by
Landlord as its property; (b) shall be disposed of by Landlord in such manner
as Landlord shall determine, without accountability to any person; or (c) shall
be promptly removed by Tenant at Tenant’s expense upon written request from
Landlord.  Landlord shall not be
responsible for any loss or damage occurring to any property owned by
Tenant.  Notwithstanding such automatic
vesting of title, Tenant shall execute and deliver such appropriate deed or
bill of sale in recordable form evidencing such title transfer at Landlord’s
request.

 

15.4         Holdover.  If
Tenant, with or without the express or implied consent of Landlord, continues
to hold and occupy the Premises after the expiration of the Term or earlier
termination of this Lease, such holding over beyond the Term and the acceptance
or collection of Rent in the amount specified below by Landlord shall operate
and be construed as creating a tenancy from month to month and not for any
other term whatsoever.  Said month to
month tenancy may be terminated by Landlord by giving Tenant seven (7) days
written notice, and at any time thereafter Landlord may re-enter and take
possession of the Premises.  If Tenant
continues after the expiration of the Term or earlier termination of this Lease
to hold and occupy the Premises whether as a month-to-month tenant or a tenant
at sufferance or otherwise, Tenant shall pay Rent for each month in an amount
equal to the sum of (i) 150% times the Base Rent payable during the month in
which such expiration or termination occurs, plus (ii) all Additional Rent
accruing during the month, plus (iii) any and all other sums payable by Tenant
pursuant to this Lease.  During any
continued tenancy after the expiration of the Term or earlier termination of
this Lease, Tenant shall be obligated to perform and observe all of the terms,
covenants and conditions of this Lease, but shall have no rights hereunder
other than the right, to the extent given by applicable law, to continue its
occupancy and use of the Premises until the tenancy is terminated.  Nothing contained herein shall constitute the
consent, express or implied, of Landlord to the holding over of Tenant after
the expiration or earlier termination of this Lease.

 

15.5         Failure to Surrender. If Tenant fails to surrender
the Premises upon the expiration or termination of this Lease in a timely
manner and in accordance with the provisions of this Lease, in addition to any
other liabilities to Landlord accruing therefrom, Tenant shall defend,
indemnify and hold Landlord, its principals, officers, directors, agents, and
employees harmless from loss or liability resulting from such failure,
including, without limiting the generality of the foregoing, loss of rental
with respect to any new lease in which the rental payable thereunder exceeds
the Rent collected by Landlord pursuant to this Lease during Tenant’s hold-over
and any claims by any proposed new tenant founded on Tenant’s failure to
surrender the Premises.

 

15.6         Survival of Terms. 
The terms of this Article shall survive any termination of this Lease.

 

48

 

ARTICLE 16

NOTICE

 

16.1         Notice. 
Whenever in this Lease it is required or permitted that notice be given
by either Party to the other, such notice shall be personally delivered, sent
by confirmed facsimile transmission or by nationally recognized commercial
overnight courier.  Notice shall be
deemed received, when given (or refused), if by personal delivery or confirmed
facsimile transmission prior to 5:00 p.m. recipient’s time on a business day,
otherwise on the next regularly occurring business day.  Notice by commercial overnight delivery
service shall be deemed received on the next business day following
deposit.  All notices shall be directed
as follows, unless the Parties shall otherwise direct, in writing:

 

	
  LANDLORD:

  	
   

  	
  Tenet Hialeah Healthsystem, Inc.

  c/o Hialeah Hospital

  651 East 25th Street

  Hialeah, FL 33013

  Attention: Chief Executive Officer

  Telephone: (305) 693-6100

  Facsimile: (305) 835-4252

  
	
   

  	
   

  	
   

  
	
  COPY
  TO:

  	
   

  	
  Tenet
  Hialeah Healthsystem, Inc.

  c/o
  Tenet Healthcare Corporation

  1445
  Ross Avenue, Suite 1400

  Dallas,
  TX 75202

  Attention:
  Legal Department

  Telephone:
  (469) 893-2709

  Facsimile:
  (469) 893-8613

  
	
   

  	
   

  	
   

  
	
  COPY TO:

  	
   

  	
  Tenet Healthcare Corporation

  1445 Ross Avenue, Suite 1400

  Dallas, TX 75202

  Attention: Vice President — Real Estate

  Telephone: (469) 893-2210

  Facsimile: (469) 893-8613

  
	
   

  	
   

  	
   

  
	
  TENANT

  	
   

  	
  c/o
  Applefield Waxman, Inc.

  2801
  PGA Boulevard, Suite 220

  Palm
  Beach Gardens, FL 33410

  Attention:
  Brian K. Waxman

  Telephone:
  (561) 687-5800

  Facsimile:
  (561) 689-1255

  
	
   

  	
   

  	
   

  
	
  COPY TO:

  	
   

  	
  Scott L. McMullen, Esq.

  Jones, Foster, Johnston & Stubbs, P.A.

  801 Maplewood Drive, Suite 22-1

  Jupiter, FL 33458

  Telephone: (561) 659-3000

  Facsimile:(561) 746-6933

  

 

49

 

	
  COPY TO:

  	
   

  	
  BH-AW Hialeah, LLC

  15601 Dallas Parkway, Suite 600

  Addison, TX 75001

  
	
   

  	
   

  	
  Attn:

  	
  Executive Vice President of Real Estate

  
	
   

  	
   

  	
  Fax:

  	
  (214) 655-1610

  
	
   

  	
   

  	
   

  
	
  COPY TO:

  	
   

  	
  Behringer Harvard Opportunity REIT II, Inc.

  15601 Dallas Parkway, Suite 600

  Addison, TX 75001

  Attn: Chief Legal Officer

  Facsimile: (214) 655-1610

  

 

ARTICLE 17

DEFAULT; REMEDIES

 

17.1         Default of Tenant. 
Each of the following shall be deemed a default by Tenant (each, a “Default”
or “Event of Default”):

 

(a)           Failure to pay the Base Rent, Additional Rent or any other
sums payable by Tenant hereunder as and when due and such default shall
continue for more than ten (10) days after written notice; provided Landlord
shall only be obligated to provide written notice twice in any twelve (12)
month period.

 

(b)           Tenant fails to observe and perform any other covenant,
condition or agreement under this Lease to be performed by Tenant and (i) such
failure continues for a period of thirty (30) days after written notice thereof
is given to Tenant by Landlord; or (ii) if, by reason of the nature of such
default it cannot be remedied within thirty (30) days, Tenant fails to proceed
with diligence reasonably satisfactory to Landlord after receipt of the notice
to cure the default or, in any event, fails to cure such default within one
hundred twenty (120) days after receipt of the notice; provided, however, that
if such default is not cured within one hundred twenty (120) day after receipt
of the notice notwithstanding Tenant’s diligent and commercially reasonable
efforts to cure such default, then, provided that Tenant furnishes to Landlord
adequate assurance of the performance of the prompt cure of such default, and
Tenant is diligently pursuing a cure of such default, then Tenant shall have
such longer period of time as may be reasonably necessary to cure such default.
The foregoing notice and cure provisions do not apply to any Event of Default
otherwise specifically described in any other subsection of Section 17.1.

 

(c)           Intentionally Deleted.

 

(d)           Tenant fails to continuously operate the Premises as a
medical office building, which, for purposes of this subsection, means that
Tenant permits the Occupants of more than seventy percent (70%) of the rentable
square footage of the MOB to cease to do business in the MOB for more than one
hundred eighty (180) days, except in connection with any (A) casualty or
condemnation, (B) repairs or maintenance pursuant to the terms of this Lease,
(C) the demolition of the MOB and construction or the Replacement MOB pursuant
to the terms of this Lease, (D) construction, repairs or maintenance by
Landlord at the Hospital or the

 

50

 

 

 

Premises, or any other cessation caused by the
actions or omissions of Landlord, or (E) with the consent of Landlord.

 

(e)           (i) The filing by Tenant of a petition under the
Bankruptcy Code or the commencement of a bankruptcy or similar proceeding by
Tenant; (ii) the failure by Tenant within sixty (60) days to dismiss an
involuntary bankruptcy petition or other commencement of a bankruptcy,
reorganization or similar proceeding against such party, or to lift or stay any
execution, garnishment or attachment of such consequence as will impair its
ability to carry on its operation at the Premises; (iii) the entry of an
order for relief under the Bankruptcy Code in respect of Tenant; (iv) any
assignment by Tenant for the benefit of its creditors; (v) the entry by Tenant
into an agreement of composition with its creditors; (vi) the approval by
a court of competent jurisdiction of a petition applicable to Tenant in any
proceeding for its reorganization instituted under the provisions of any state
or federal bankruptcy, insolvency, or similar laws; (vii) the appointment
by final order, judgment, or decree of a court of competent jurisdiction of a
receiver of a whole or any substantial part of the properties of Tenant
(provided such receiver shall not have been removed or discharged within sixty
(60) days of the date of his qualification); or (viii) the dissolution of
Tenant (provided, however, that if such dissolution of Tenant is due to an
administrative dissolution, Tenant shall be in Default if it is not reinstated
within sixty (60) days after the effective date of such administrative
dissolution).

 

(f)            (i) Any receiver, administrator, custodian or other
Person takes possession or control of any of the Premises and continues in
possession for sixty (60) days; (ii) any writ against any of the Premises
is not released within sixty (60) days; (iii) any judgment is rendered or
proceedings are instituted against the Premises or Tenant which affect the
Premises or any part thereof, which is not dismissed for sixty (60) days (except
as otherwise provided in this Section); (iv) all or a substantial part of
the assets of Tenant are attached, seized, subjected to a writ or distress
warrant, or are levied upon, or come into the possession of any receiver,
trustee, custodian, or assignee for the benefit of creditors; (v) Tenant
is enjoined, restrained, or in any way prevented by court order, or any
proceeding is filed or commenced seeking to enjoin, restrain or in any way
prevent Tenant from conducting all or a substantial part of its business or
affairs; or (vi) except as otherwise permitted hereunder, a final notice
of lien, levy or assessment is filed of record with respect to all or any part
of the Premises or any property of Tenant located at the Premises and is not
dismissed, discharged, or bonded off within thirty (30) days.

 

(g)           Any material representation or warranty made by Tenant in
this Lease or any other document executed in connection with this Lease, or any
report, certificate, application, financial statement or other instrument
furnished by Tenant pursuant hereto or thereto shall prove to be false,
misleading or incorrect in any material respect as of the date made.

 

(h)           Tenant defaults under the REA, and any applicable grace or
cure period with respect to default under the REA expires without such default
having been cured.  This provision
applies to the REA as it may be amended, modified, extended, or renewed from
time to time.

 

(i)            The occurrence of Change of Ownership or other change in
ownership or an assignment or sublease of this Lease, which is not permitted by
the terms of this Lease.

 

51

 

(j)            Any material Government Authorization is cancelled,
suspended, reduced to provisional or temporary, or otherwise invalidated, or
license revocation or decertification proceedings are commenced against Tenant.

 

(k)           Intentionally Deleted.

 

(l)            Tenant’s failure to maintain insurance required to be
maintained by this  Lease.

 

17.2         Default of Landlord. 
The following shall be deemed a default by Landlord: failure to perform
any act to be performed by Landlord hereunder or to comply with any provision,
condition or covenant contained herein and such failure continues for more than
thirty (30) calendar days after written notice of such failure is delivered to
Landlord, or in the event of a default which cannot with due diligence be cured
within such thirty (30) day period to cure said default and to prosecute the
curing of such default with due diligence and to complete the curing of said
default within a reasonable time thereafter.

 

17.3         Remedies.  Upon
the occurrence of a Default or an Event of Default under this Lease, and at any
time thereafter until Landlord waives the default in writing or acknowledges
cure of the default in writing, at Landlord’s option, without additional
declaration, notice of nonperformance, protest, notice of protest, notice of
default, notice to quit or any other notice or demand of any kind, Landlord may
exercise any and all rights and remedies provided in this Lease or under
applicable law, including, without limitation, any one or more of the following
remedies:

 

(a)           Landlord may re-enter and take
possession of the Premises or any portion thereof without terminating this
Lease, and lease such Premises for the account of Tenant, holding Tenant liable
for all costs of Landlord in reletting such Premises and for the difference in
the amount received by such reletting and the amounts payable by Tenant under
the Lease.

 

(b)           Landlord may terminate this Lease with
respect to all or any portion of the Premises, exclude Tenant from possession
of such Premises, holding Tenant liable for all Rent and all other amounts
payable by Tenant hereunder to the date of such termination, and use efforts to
lease such Premises to others, holding Tenant liable for the difference in the
amounts received from such reletting and the amounts payable by Tenant under
this Lease.

 

(c)           Landlord may re-enter the Premises or
any portion thereof and have, repossess and enjoy such Premises as if this
Lease had not been made, and in such event, Tenant and its successors and
assigns shall remain liable for any contingent or unliquidated obligations or
sums owing at the time of such repossession.

 

(d)           Landlord may have access to and
inspect, examine and make copies of the books and records and any and all
accounts, data and income tax and other returns of Tenant insofar as they
pertain to the Premises.

 

(e)           Landlord may accelerate all of the
unpaid Rent hereunder so that the aggregate Rent for the unexpired term of this
Lease becomes immediately due and payable, in 

 

52

 

addition to all Rent and all other amounts
payable by Tenant hereunder to the date of termination.

 

(f)            Landlord may take whatever action at
law or in equity as may appear necessary or desirable to collect the Rent and
other amounts payable under this Lease then due and thereafter to become due,
or to enforce performance and observance of any obligations, agreements or
covenants of Tenant under this Lease.

 

(g)           Without waiving any prior or
subsequent Event of Default, Landlord may waive any Event of Default or, with
or without waiving any Event of Default, remedy any default.

 

(h)           Landlord may enter and take
possession of the Premises or any portion thereof without terminating the Lease
and perform the obligations of Tenant under this Lease.

 

(i)            Landlord may apply, without notice
to Tenant, for the appointment of a receiver (“Receiver”) of the
Premises.  Unless prohibited by law, such
appointment may be made either before or after termination of Tenant’s
possession of the Premises, without notice, without regard to the solvency or
insolvency of Tenant at the time of application for such Receiver and without
regard to the then value of the Premises, and Landlord may be appointed as
Receiver.  The Receiver shall have the
power to collect the rents, income, profits and receivables of the Premises
during the pendency of the receivership and all other powers which may be
necessary or are usual in such cases for the protection, possession, control,
management and operation of the Premises during the whole of said
proceeding.  All sums of money received
by the Receiver from such rents and income, after deducting therefrom the
reasonable charges and expenses paid or incurred in connection with the
collection and disbursement thereof, shall be applied to the payment of the
Rent or any other monetary obligation of Tenant under this Lease, including,
without limitation, any losses or damages incurred by Landlord under this
Lease.  Tenant, if requested to do so,
will consent to the appointment of any such Receiver as aforesaid.

 

(j)            Landlord
may terminate any management agreement with respect to any of the Premises and
shall have the right to retain one or more managers for the Premises at the
expense of Tenant, such manager(s) to serve for such term and at such
compensation as Landlord reasonably determines is necessary under the
circumstances.

 

17.4         Right of Set Off. 
Landlord may, and is hereby authorized by Tenant to, at any time and
from time to time without advance notice to Tenant (any such notice being
expressly waived by Tenant), set off and apply any and all sums held by
Landlord, any indebtedness of Landlord to Tenant, and any claims by Tenant
against Landlord, against any obligations of Tenant hereunder and against any
claims by Landlord against Tenant, whether or not such obligations or claims of
Tenant are matured and whether or not Landlord has exercised any other remedies
hereunder.  The rights of Landlord under
this Section are in addition to any other rights and remedies Landlord may
have against Tenant.

 

17.5         Performance of Tenant’s Covenants.  Landlord may perform any obligation of Tenant
which Tenant has failed to perform within five (5) days after Tenant’s
receipt of written notice to Tenant from Landlord informing Tenant of its
specific failure.  Tenant shall reimburse

 

53

 

Landlord on demand, as Additional Rent, for any
expenditures thus incurred by Landlord and shall pay interest thereon at the
Interest Rate.

 

17.6         Escrows and Application of Payments.  As security for the performance of its
obligations hereunder, Tenant hereby assigns to Landlord all its right, title,
and interest in and to all monies escrowed with Landlord under this Lease and
all deposits with utility companies, taxing authorities and insurance
companies; provided, however, that Landlord shall not exercise its rights
hereunder until an Event of Default has occurred which is not cured within the
applicable notice and/or cure period. 
Any payments received by Landlord under any provisions of this Lease
during the existence or continuance of an Event of Default shall be applied to Tenant’s
obligations in the order which Landlord may determine.

 

17.7         Remedies Cumulative. 
Suit or suits for the recovery of such damages, or any installments
thereof, may be brought by Landlord from time to time at its election, and
nothing contained herein shall be deemed to require Landlord to postpone suit
until the date when the term of this Lease would have expired nor limit or
preclude recovery by Landlord against Tenant of any sums or damages which, in
addition to the damages particularly provided above, Landlord may lawfully be
entitled by reason of any Default hereunder on the part of Tenant.  All the remedies hereinbefore given to
Landlord and all rights and remedies given to it at law and in equity shall be
cumulative and concurrent.

 

17.8         Waivers.  To
the fullest extent permitted by applicable law, Tenant waives (i) any
notice required by statute or other law as a condition to bringing an action
for possession of, or eviction from, any of the Premises, (ii) any right
of re-entry or repossession, (iii) any right to a trial by jury in any
action or proceeding arising out of or relating to this Lease, (iv) any
objections or claims with respect to the exercise by Landlord of any rights or
remedies, (v) any right of redemption whether pursuant to statute, at law
or in equity, (vi) all presentments, demands for performance, notices of
nonperformance, protest, notices of protest, notices of dishonor, notices to
quit and any other notice or demand of any kind, (vii) all notices of the
existence, creation or incurring of any obligation or advance under this Lease
before or after this date, and (viii) any obligation Landlord may have to
mitigate Tenant’s damages.

 

17.9         No Waiver. 
Forbearance by Landlord to enforce one or more of the remedies herein
provided upon a default shall not be deemed or construed to constitute a waiver
of Landlord’s right to enforce any such remedies with respect to any subsequent
default. No failure by a party to insist upon the strict performance of any
agreement, term, covenant or condition hereof or to exercise any right or
remedy consequent upon a breach thereof and no acceptance of full or partial
Rent during the continuance of any such breach, shall constitute a waiver of
any such breach or of such agreement, term, covenant or condition.  No agreement, term, covenant or condition
hereof to be performed or complied with by a Party, and no breach thereof,
shall be waived, altered or modified except as a written instrument executed by
the Party against whom enforcement is sought. 
No waiver of any breach shall affect or alter this Lease, but each and
every agreement, term, covenant and condition hereof shall continue in full
force and effect with respect to other then existing or subsequent breach
thereof.

 

17.10       Obligations Under the Bankruptcy Code.  Upon filing of a petition by or against
Tenant under the Bankruptcy Code, Tenant, as debtor and as
debtor-in-possession, and any 

 

54

 

trustee who may be appointed with respect to the
assets of or estate in bankruptcy of Tenant, agree to pay monthly in advance on
the first day of each month, as reasonable compensation for the use and
occupancy of the Premises, an amount equal to all Rent due pursuant to this
Lease.  Included within and in addition
to any other conditions or obligations imposed upon Tenant or its successor in
the event of the assumption and/or assignment of this Lease are the following: (i) the
cure of any monetary defaults and reimbursement of pecuniary loss within not
more than thirty (30) days of assumption and/or assignment; (ii) the
deposit of an additional amount equal to not less than three (3) months’
Base Rent, which amount is agreed to be a necessary and appropriate deposit to
secure the future performance under this Lease of the Tenant or its assignee; and
(iii) the continued use of the Premises for the use permitted under this
Lease.

 

17.11       Tenant’s Remedies. 
In the event of an uncured default of Landlord, Tenant shall, subject to
the provisions of Section 9.1(a) and Section 20.1,
be entitled to all rights and remedies available to Tenant at law or in equity,
except Tenant shall not be entitled to (a) any abatement, set-off or
withholding of Rent, or (b) terminate this Lease.

 

ARTICLE 18

QUIET ENJOYMENT

 

18.1         Tenant’s Right to Quiet Enjoyment.  Tenant, upon paying the Rent and other
charges herein provided for, and upon observing and keeping all covenants,
agreements and conditions of this Lease to be kept on its part, shall quietly
have and enjoy the Premises during the term of this Lease without hindrance or
molestation by anyone claiming by, through or under Landlord; subject,
however, to the exceptions, reservations and conditions of this Lease.

 

18.2         Landlord’s Right of Entry.  Tenant shall permit Landlord and its
authorized representatives to enter the Premises at all reasonable times and
with reasonable notice (except in an emergency) for the purpose of (a) inspecting
the same, and (b) making any necessary repairs thereto and performing any
work therein that may be necessary by reason of Tenant’s failure to make any
such repairs or perform any such work or to commence the same for ten (10) days
after written notice from Landlord (or without notice in case of
emergency).  Nothing herein shall imply
any duty upon the part of Landlord to do any such work, and performance thereof
by Landlord shall not constitute a waiver of Tenant’s Default in failing to
perform the same.  During the progress of
any work in the Premises performed by Landlord pursuant to the provisions of
this Section, Landlord may keep and store therein all necessary materials,
tools, supplies and equipment.  Landlord
shall not be liable for inconvenience, annoyance, disturbance, loss of business
or other damage to Tenant by reason of making such repairs or performing any
such work, or on account of bringing materials, tools, supplies and equipment
into the Premises during the course thereof, and the obligations of Tenant
under this Lease shall not be affected thereby. 
Landlord shall also have the right to enter the Premises at all reasonable
times during usual business hours for the purpose of showing the same to
prospective purchasers or lenders of the Premises, and for the purpose of
showing the same to prospective lessees.

 

55

 

ARTICLE 19

ESTOPPEL CERTIFICATES

 

Tenant shall, at its own cost and expense, at any
time and from time to time, within ten (10) days after request by
Landlord, certify by written instrument, duly executed, acknowledged and
delivered to Landlord, or any other Person specified by Landlord: that this
Lease is unmodified and in full force and effect, or, if there have been any
modifications, that the same is in full force and effect as modified and
stating the modifications; whether or not there are then existing any setoffs
or defenses against the enforcement of any of the agreements, terms, covenants
or conditions hereof and any modifications hereof upon the part of Tenant to be
performed or complied with, and, if so, specifying the same; the dates, if any,
to which the Base Rent, Additional Rent and any other charges hereunder have
been paid in advance; the date of expiration of the Term; the Rent then payable
under this Lease; and such other matters reasonably requested by Landlord.  Landlord shall at any time and from time to
time, within thirty (30) days after request by Tenant, certify by written
instrument, duly executed, acknowledged and delivered to Tenant, or any other
Person specified by Tenant: that this Lease is unmodified and in full force and
effect, or, if there have been any modifications, that the same is in full
force and effect as modified and stating the modifications; whether or not
there are then existing any setoffs or defenses against the enforcement of any
of the agreements, terms, covenants or conditions hereof and any modifications
hereof upon the part of Tenant to be performed or complied with, and, if so,
specifying the same; the dates, if any, to which the Base Rent, Additional Rent
and any other charges hereunder have been paid in advance; the date of
expiration of the Term; the Rent then payable under this Lease; and such other
matters reasonably requested by Tenant and Tenant’s Leasehold Mortgagee;
provided, however, that any such instrument shall not amend or modify the terms
of this Lease.  Landlord.  Tenant shall pay the Landlord’s costs and
expenses (including the cost and expense of legal counsel) incurred in
connection with responding to any request for an estoppel statement.

 

ARTICLE 20

LANDLORD’S LIABILITY

 

20.1         Landlord’s Liability. 
The term “Landlord” as used in this Lease, as far as the
covenants and agreements of Landlord in this Lease are concerned, shall be
construed to mean only the holder or holders of Landlord’s interest in this
Lease at the time in question.  In the
event of any transfer or transfers of Landlord’s interest, other than a
transfer for security prior to foreclosure thereof, the Landlord herein named
(and in case of any subsequent transfer, the then transferor) shall be
automatically freed and relieved, from and after the date of such transfer,
from all duties and obligations as to the performance of any covenants or
agreements on the part of Landlord to be performed or observed after such
transfer.  Any funds in which Tenant has
an interest and which are in the hands of such Landlord at the time of such
transfer shall be turned over to the transferee, and any amount then due and
payable to Tenant shall be paid to Tenant by the then transferor.  It is the intent of this Section that
the provisions of this Lease shall be binding upon Landlord, its successors and
assigns only during and in respect of their respective successive periods of
ownership.  In any event, and
notwithstanding any other provision of this Lease, neither Landlord (including
any successor Landlord) nor any officer, director, agent, partner, member
trustee, beneficiary, or employee thereof shall be liable in an individual or
personal capacity for the performance or nonperformance of any agreement,
covenant, or obligation of Landlord contained in this Lease, and Tenant shall
look solely to the interest of Landlord from time to time in the Premises as
the sole asset for payment and satisfaction of all liabilities of Landlord
under this Lease.

 

56

 

20.2         Nonliability of Landlord.  Landlord, its agents, and employees, will not
be liable for any loss, injury, death, or damage (including consequential
damages) to persons, property, or Tenant’s business occasioned by theft, act of
God, public enemy, injunction, riot, strike, insurrection, war, court order,
requisition, order of governmental body or authority, fire, explosion, falling
objects, steam, water, rain, leak or flow of water (including water from the
elevator system), rain or snow from the Premises or into the Premises or from
the roof, street, subsurface or from any other place, or by dampness or from
the breakage, leakage, obstruction, or other defects of the pipes, sprinklers,
wires, appliances, plumbing, air conditioning, or lighting fixtures of the Premises,
or from construction, repair, or alteration of the Premises or from any acts or
omissions of any other occupant or visitor of the Premises, or from any other
cause beyond Landlord’s control.

 

ARTICLE 21

BROKERS

 

21.1         Indemnification for Leasing Commissions.  The Parties hereby represent and warrant
that, except for Jones Lang Lasalle Americas, Inc. (to be paid by Landlord
under a separate agreement), there were no real estate brokers involved in the
negotiation and execution of this Lease and that no other Party is entitled, as
a result of the actions of the respective party, to a commission or other fee
resulting from the execution of this Lease. Each Party shall indemnify the
other from any and all liability for the breach of this representation and warranty
on its part and shall pay any compensation to any broker or Person who may be
entitled thereto notwithstanding the representation and warranty.

 

ARTICLE 22

MISCELLANEOUS

 

22.1         Waiver.  One or
more waivers of any covenant or condition by either party shall not be
construed as such party’s waiver of a subsequent breach of the same covenant or
condition, and the consent or approval by Landlord to or of any act by Tenant
requiring Landlord’s consent or approval shall not be deemed to render
unnecessary Landlord’s consent or approval to or of any subsequent similar act
by Tenant.  No breach of a covenant or
condition of this Lease shall be deemed waived unless in writing.

 

22.2         Entire Agreement; Amendments.  This Lease and the exhibits, attached hereto
and forming a part hereof, set forth all covenants, promises, agreements,
conditions and understandings between Landlord and Tenant concerning the
Premises and there are no covenants, promises, agreements, conditions or
understandings, either oral or written, between them other than are herein set
forth.  No alteration, amendment, change
or addition to this Lease shall be binding upon Landlord or Tenant unless
reduced to writing and signed by each Party. Landlord and Tenant agree that
during the time period when this Lease is encumbered by a Leasehold Mortgage
which complies with the terms of this Lease, then Landlord and Tenant will not
amend either (i) the terms of Article 8 of this Lease, or (ii) the
Term of this Lease, without the written approval of the Leasehold Mortgagee.

 

22.3         Standards of Consent. 
Where any provision of this Lease requires the consent or approval of
Landlord or Tenant, Landlord and Tenant shall: (a) not unreasonably
withhold, 

 

57

 

condition, or delay such consent or approval, except
as otherwise expressly provided in this Lease (such as by words to the effect
of “sole” and/or “complete” discretion, in which event the consent or approval
may be granted or withheld in such Party’s sole and absolute discretion); and (b) in
the event consent or approval is withheld, the reasons for such withholding
shall be given in writing.  Where any
provision of this Lease requires a Party to do anything to the satisfaction of
the other Party, each Party agrees that it will not unreasonably refuse to
state its satisfaction with such action by the other Party.  Whenever any request for consent or approval
is requested and Landlord denies such consent or approval and Tenant challenges
or disputes Landlord’s denial of approval or consent, Tenant’s sole and
exclusive remedy arising from any such denial of consent or approval shall be
an action for specific performance and Tenant hereby waives, relinquishes and
releases any rights it may have, now or in the future, to recover damages from
Landlord arising out of Landlord’s failure or refusal to grant any such consent
or approval.

 

22.4         Offer of Lease. 
The submission of this Lease for examination does not constitute a
reservation of or option for the Premises, and this Lease shall become
effective as a Lease only upon execution and delivery thereof by Landlord and
Tenant.

 

22.5         Governing Law. 
This Lease shall be governed by, and construed in accordance with, the
laws of the State of Florida, without regard to conflict of laws
principles.  If any provision of this
Lease or the application thereof to any Person or circumstances shall, to any
extent, be invalid or unenforceable, the remainder of this Lease shall not be
affected thereby and each provision of the Lease shall be valid and enforceable
to the fullest extent permitted by the law. Venue of any legal action arising
under or pursuant to this Lease shall be in Miami-Dade County, Florida.

 

22.6         True Lease. 
Notwithstanding anything herein to the contrary, Landlord and Tenant
intend that this Lease constitute a true lease of the Premises and not a lease
intended for security or other financing arrangements, and the Parties hereto
have treated and will continue to treat this Lease as a true lease for all
purposes, including, without limitation, tax and accounting.

 

22.7         Time is of the essence.  Time is of the essence of each obligation of
each Party hereunder.

 

22.8         Unavoidable Delay - Force Majeure.  Except as otherwise expressly set forth in
this Lease, in the event Landlord or Tenant shall be delayed or hindered in, or
prevented from, the performance of any act required hereunder by reason of
Force Majeure, then performance of such acts shall be excused for the period of
the delay, and the period of the performance of any such act shall be extended
for a period equivalent to the period of such delay.  For purposes of this Lease, “Force Majeure”
means delay due in whole or in part to any strike, lockout, labor trouble,
civil disorder, inability to procure materials, failure of power, restrictive
governmental laws and regulations, riots, insurrections, war, fuel shortages,
accidents, casualties, acts of God, acts caused directly or indirectly by the
other Party (or that Party’s agents, employees, contractors, licensees or
invitees) or any other cause beyond the reasonable control of the Party, then
that Party shall not be deemed in default under this Lease as a result of such
failure and any time for performance by Landlord or Tenant provided for herein
shall be extended by the period of delay resulting from such cause.  Force Majeure shall not excuse or delay the
payment of any monetary obligation.

 

58

 

22.9         Counterparts. 
This Lease may be executed simultaneously or in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

22.10       Recorded Memorandum. 
This Lease shall not be recorded. 
However, the Parties hereto shall enter into a memorandum of this Lease,
in recordable form, setting forth the identities of Landlord and Tenant, the
date of the expiration of the Term, Landlord’s purchase rights and such other
information as Landlord and Tenant shall agree upon.  In no event shall any such memorandum
disclose the economic terms of this Lease. This memorandum of lease shall be in
the form attached hereto as Exhibit 22.10 and incorporated herein
by reference.

 

22.11       Landlord’s Lien. 
Landlord shall have a lien against all of the property of the Tenant
which may be located on the Premises for unpaid rent or other charges. Tenant
hereby pledges and assigns to Landlord all the furniture, fixtures, goods and
equipment of Tenant which shall or may be brought or put on the Premises as
additional security for the payment of Tenant’s monetary obligations under this
Lease, and Tenant agrees that said lien may be enforced by distress,
foreclosure or otherwise at the election of the Landlord.  This provision shall be deemed to constitute
a security agreement as that term is defined and utilized in the uniform
commercial code in force in the state where the Premises are located. Tenant
hereby authorizes Landlord to file and/or record uniform commercial code
financing statements in sufficient form so that when properly filed, the
security interest hereby given shall be perfected. Notwithstanding the order of
recording or filing or any provision hereto, the lien described in this Section 22.11
shall be subordinate to the rights of any Leasehold Mortgagee.

 

22.12       Attorneys’ Fees and Costs.  Tenant shall pay all of Landlord’s costs and
expenses, including reasonable attorneys’ fees in connection with any approvals
requested by Tenant or required under this Lease.  In all matters relating to the enforcement or
preservation of rights and remedies under this Lease and the security for this
Lease, and in all matters of collection, whether or not an Event of Default has
actually occurred or has been declared and thereafter cured the losing Party
shall reimburse the prevailing Party for all costs and expenses and the
prevailing Party shall be entitled to recover its reasonable legal fees and
expenses. The Parties agree that such legal fees and expenses shall include,
without limitation: (a) reasonable attorney’s and paralegal’s fees and
disbursements; (b) the fees and expenses of any litigation (including
appeals), bankruptcy, insolvency, receivership and any other similar
proceeding, including, without limitation, attorney’s fees and costs; (c) court
costs; (d) the expenses of the prevailing party and its employees, agents,
attorneys and witnesses in preparing for litigation, administrative,
bankruptcy, insolvency and other proceedings and for lodging, travel, and
attendance at meetings, hearings, depositions, and trials; and (e) consulting
and witness fees and expenses incurred by the prevailing party in connection
with any litigation or other proceeding.

 

22.13       Conditions and Covenants.  All of the provisions of this Lease shall be
deemed as running with the land, and construed to be “conditions” as well as “covenants”
as though the words specifically expressing or imparting covenants and
conditions were used in each separate provision.

 

22.14       Survival of Indemnities.  All representations, warranties and
indemnities of Tenant under this Lease shall survive the expiration or sooner
termination of this Lease.

 

59

 

22.15       Interpretation; Conflict.  Landlord and Tenant acknowledge that they
were each represented by counsel in connection with this Lease and that each of
them or their respective counsel reviewed and revised this Lease and that any rule of
construction to the effect that ambiguities are to be resolved against the
drafting Party or Landlord shall not be employed in the interpretation of this
Lease. The words “hereof,” “herein” and “herewith” and words of similar import
shall, unless otherwise stated, be construed to refer to this Lease as a whole
and not to any particular provision of this Lease, and article, section, paragraph,
exhibit and schedule references are to the articles, sections, paragraphs,
exhibits and schedules of this Lease unless otherwise specified.  The words denoting persons shall include
corporations and partnerships and vice versa. Any conflict between the printed
provisions of this Lease and the typewritten or handwritten provisions, if any,
shall be controlled by the typewritten or handwritten provisions. In the event
of a conflict between the terms of this Lease and the terms of the REA, the
terms of this Lease shall govern and control.

 

22.16       Waiver of Trial by Jury.  To the fullest extent permitted by applicable
law, the Parties hereto shall and they hereby do waive trial by jury in any
action, proceeding or counterclaim brought by either of the Parties hereto
against the other on any matters whatsoever arising out of or in any way
connected with this Lease, the relationship of Landlord and Tenant, Tenant’s
use or occupancy of the Premises and/or any claim or injury or damage.  In the event Landlord commences any
proceedings for nonpayment of Rent, Tenant will not interpose any counterclaim
of whatever nature or description in any such proceedings.

 

22.17       Relationship of the Parties.  Nothing contained in this Lease shall be
deemed or construed as creating the relationship of principal and agent or of
partnership or joint venture between the Parties hereto, it being understood
and agreed that neither the method of computing rent nor any other provision
contained herein nor any acts of the Parties hereto shall be deemed to create
any relationship between the Parties hereto other than that of landlord and
tenant.

 

22.18       No Third Party Beneficiaries.  This Lease shall not confer any rights or
remedies upon any Person other than the Parties hereto and their respective
successors and permitted assigns.

 

22.19       Severability. 
The provisions of this Lease are intended to be independent and, in the
event any provision hereof should be declared by a court of competent
jurisdiction to be illegal or invalid for any reason whatsoever, such
illegality or invalidity shall not affect the remainder of this Lease.

 

22.20       Radon Gas. 
Tenant hereby acknowledges that Radon is a natural occurring radioactive
gas that, when it has accumulated in a building in sufficient quantities, may
present health risk to persons who are exposed to it over time.  Levels of radon that exceed federal and state
guidelines have been found in buildings in Florida.  Additional information regarding radon
and radon testing may be obtained from the County Public Health Unit.

 

22.21       Intentionally Deleted.

 

22.22       No Condition of
Referrals.  Landlord and
Tenant acknowledge, agree and confirm that neither the selection of Tenant nor
the terms and conditions of this Lease shall be

 

60

 

conditioned on Landlord or Tenant (i) making
referrals to the other; (ii) being in a position to make or influence
referrals to the other, or (iii) otherwise generating business for the
other.

 

22.23       Compliance Obligations. 
Tenant acknowledges, agrees and confirms that Tenant has received, read,
understood and shall abide by Landlord’s Standards of Conduct.  The parties to this Lease shall comply with
Landlord’s Compliance Program and Landlord’s policies and procedures related to
the Anti-Kickback Statute and the Stark Law. 
Landlord’s Standards of Conduct, summary of Compliance Program. and
policies and procedures are available at:
http://www.tenethealth.com/TenetHealth/OurCompany/EthicsBusiness Conduct.  Further, the parties to this Lease certify
that they shall not violate the Anti-Kickback Statute and/or the Stark Law.

 

22.24       Exclusion Lists Screening.  Tenant shall screen all of its current and
prospective owners, legal entities, officers, directors, employees,
contractors, and agents (“Screened Persons”), if any, against (a) the
United States Department of Health and Human Services/Office of Inspector
General List of Excluded Individuals/Entities (available through the Internet
at htt;://www.oig.hhs.gov), and (b) the General Services Administration’s
List of Parties Excluded from Federal Programs (available through the Internet
at http://www.epls.gov) (collectively, the “Exclusion Lists”) to ensure
that none of the Screened Persons (y) are currently excluded, debarred,
suspended, or otherwise ineligible to participate in Federal healthcare
programs or in Federal procurement or nonprocurement programs, or (z) have
been convicted of a criminal offense that falls within the ambit of 42 U.S.C.
§  1320a-7(a), but have not yet been excluded, debarred, suspended, or
otherwise declared ineligible (each, an “Ineligible Person”).  If, at any time during the term of this Lease
any Screened Person becomes an Ineligible Person or proposed to be an
Ineligible Person, Tenant shall immediately notify Landlord of the same.  Screened Persons shall not include any
employee, contractor or agent who is not providing services to Landlord under
this Lease.

 

22.25       Security. 
Tenant, at its sole cost, shall be responsible for security on the
Premises and shall take whatever legal precautions are necessary to protect the
Premises, and all Occupants and property thereon. Landlord makes no
representations or warranties with respect to crime in the area, undertakes no
duty to protect Tenant or and Occupants against criminal acts and shall not be
liable for any injury, wrongful death or property damage arising from any
criminal acts.  Landlord may, from time
to time, at Landlord’s sole discretion, employ or caused to be employed
security personnel and equipment, however, such personnel and equipment are
only for the protection of Landlord’s property. Landlord reserves the right, in
its sole and absolute discretion, to start, alter or terminate any such
security services without notice to Tenant or any Occupant. Tenant is urged to
provide security for Tenant and the Occupants, and property as it deems
necessary. Tenant is urged to obtain insurance to protect against criminal
acts. Tenant acknowledges and agrees that Landlord is not providing any
security services with respect to the Premises and that Landlord shall not be
liable to Tenant or any Occupants for, and Tenant waives any claim against
Landlord with respect to, any loss by theft or any other damage, personal
injury, or wrongful death, suffered or incurred by Tenant or any Occupants in
connection with the Premises or the use of the Premises.

 

61

 

[SIGNATURES APPEAR ON FOLLOWING PAGE]

 

62

 

THIS
LEASE IS SIGNED as of the date first written above.

 

 

	
  WITNESSES:

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENET
  HIALEAH HEALTHSYSTEM, INC., a Florida corporation

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Sue Lynn Duncan

  	
   

  	
  By:

  	
  /s/
  Nicholas R. Bonrepos

  
	
  Print Name:

  	
  Sue Lynn Duncan

  	
   

  	
  Print Name:

  	
  Nicholas
  R. Bonrepos

  
	
   

  	
   

  	
  Title:

  	
  Authorized
  Signatory

  
	
  /s/ Kimberly Bicknell

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Kimberly Bicknell

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BH-AW
  HIALEAH, LLC, a Delaware limited liability company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Scott L. McMullen

  	
   

  	
  By:

  	
  /s/
  Brian Waxman

  
	
  Print Name:

  	
  Scott L . McMullen

  	
   

  	
  Print
  Name:

  	
  Brian
  Waxman

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
  /s/ Cynthia F. Skwierc

  	
   

  	
   

  	
   

  
	
  Print Name:

  	
  Cynthia F. Skwierc

  	
   

  	
   

  	
   

  

 

63

 

JOINDER BY JOINT VENTURE

 

The
undersigned joins in this Lease for the purpose of acknowledging its agreement
with the terms of Section 11.2 of this Lease.

 

	
   

  	
  JOINT VENTURE:

  
	
   

  	
   

  
	
   

  	
  BH-AW Florida MOB Venture, LLC, a Delaware

  limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian Waxman

  
	
   

  	
  Print Name:

  	
  Brian Waxman

  
	
   

  	
  Title:

  	
  President

  

 

64

 

EXHIBIT A

 

Legal Description of Premises

 

[TO BE ATTACHED]

 

1

 

EXHIBIT 9.1(a)

 

Arbitration Provision re: Section 9.1(a)

 

Resolution
of Dispute. In the event of a dispute between the parties
concerning Landlord’s denial of consent to a proposed assignment or sublease as
provided in Section 9.1(a) of this Lease, the parties shall
first seek to resolve the dispute by directly conferring with each other. If
that fails to resolve the dispute within five (5) days after the party
first notifies the other party of the dispute, either party may submit the
dispute to a final and binding arbitration under the rules of the American
Arbitration Association (“AAA”) governing commercial disputes. Notwithstanding
any requirements of the rules or procedures of the AAA to the contrary,
the following shall govern any such arbitration:

 

a.)                                   A single
neutral arbitrator selected by the AAA will be used. The arbitrator used shall
be selected by AAA, and the arbitrator shall have at least twenty (20) years of
experience as a real estate attorney, with experience in the sale of medical
office buildings in the Hialeah, Florida area and significant experience in
hospital operations, including real estate operations associated therewith.

 

b.)                                  After selection
of the arbitrator, counsel for the parties shall confer with the arbitrator to
determine the discovery that shall take place. 
Unless the parties agree otherwise, each party shall be entitled to take
no more than two (2) depositions of potential witnesses and shall be
entitled to serve not more than two (2) sets of interrogatories, neither
of which shall include more than ten (10) interrogatories including
subparts. Each party shall be entitled to make one (1) request for
production of documents. The parties will respond within ten (10) days of
service (and service shall be by e-mail or hand delivery) to any such
interrogatories or request for production. Additional discovery may be
permitted in the discretion of the arbitrator. All discovery shall be completed
within ten (10) Business Days after selection of the arbitrator unless
extended by the arbitrator for good cause shown.

 

c.)                                   The arbitration
shall be governed by the laws of the State of Florida.

 

d.)                                  Unless extended
by the arbitrator for good cause shown, the arbitration hearings shall commence
no later than twenty (20) Business Days after selection of the arbitrator. The
arbitration hearing shall not extend beyond two (2) days and the
arbitrator shall determine the amount of time to be allocated to direct
examination of witnesses and cross examination. Time shall be allocated equally
among the parties.

 

e.)                                   Each party
shall prepare and submit to the arbitrator and the other party a letter brief
of no more than ten (10) pages setting forth its position not less
than three (3) Business Days before the commencement of the arbitration
hearing. Each party shall prepare and submit to the arbitrator and the other
party a letter brief of 

 

 

no more than ten (10) pages setting forth its position not
more than three (3) Business Days after the conclusion of the arbitration
hearing.

 

f.)                                     The decision of
the arbitrator shall be made not more than five (5) Business Days after
the conclusion of the arbitration hearing. The decision shall be in writing,
and shall set forth an explanation of the arbitrator’s decision. The arbitrator
shall not have the authority to award any damages (including consequential
damages).

 

g.)                                  Landlord and
Tenant agree that the foregoing is the sole and exclusive remedy available to
Tenant in the event of a dispute concerning the Landlord’s denial of consent to
a proposed assignment or sublease. In addition, during the pendency of any
dispute and any related arbitration proceeding neither party may make
application to a court of competent jurisdiction for any remedy.

 

h.)                                  The dispute,
any testimony, all documents produced and the outcome of the arbitration shall
be confidential. Each party shall be entitled to all remedies available at law
or equity to enforce this confidentiality obligation.

 

 

EXHIBIT 9.3(c)

 

Form of Approved Space Lease

 

[TO BE ATTACHED]

 

 

EXHIBIT 11.2

 

List of Repairs and Maintenance

 

[TO BE ATTACHED]

 

1

 

EXHIBIT 12.1

 

Tenant’s Insurance

 

All
insurance required hereunder shall be primary to any and all other insurance
coverage and shall not contribute with similar insurance in effect by the other
Party.

 

Tenant
shall provide and maintain during the term of this Lease, at Tenant’s expense,
the following insurance coverage written with carriers authorized to insure
risks in the State of Florida and providing a thirty (30) day written
notification of cancellation.  Landlord
and its Affiliates shall be additional insureds under all such policies and
under any excess liability policies supplying any portion of the Specified
Limits except workers’ compensation insurance, Tenant’s insurers shall waive
their rights of subrogation against Landlord and its Affiliates, and, upon
request by Landlord, Tenant shall furnish Landlord with certificates and
additional insured endorsements evidencing the existence of such insurance
policies executed by Tenant’s insurance carrier or its authorized
representative.

 

Workers
compensation insurance, subject to statutory limits.

 

Employer’s
liability insurance, in an amount of one million dollars ($1,000,000) per
accident, with limits of $1,000,000 per accident for bodily injury by accident,
and $1,000,000 per person for bodily injury by disease.

 

Commercial
general liability insurance insuring against: (a) Claims for personal injury or
property damage commonly covered by comprehensive general liability insurance
with endorsements for incidental malpractice, contractual, personal injury,
owner’s protective liability, voluntary medical payments, products and
completed operations, broad form property damage, and extended bodily injury,
with commercially reasonable amounts for bodily injury, property damage, and
voluntary medical payments acceptable to Landlord, but with a combined single
limit of not less than $10,000,000.00 per occurrence; (b) Claims for personal
injury and property damage commonly covered by comprehensive automobile
liability insurance, covering all owned and non owned automobiles, with
commercially reasonable amounts for bodily injury, property damage, and for
automobile medical payments acceptable to Landlord, but with a combined single
limit of not less than $10,000,000.00 per occurrence; and (c) Claims commonly
covered by worker’s compensation insurance for all persons employed by Tenant
on the Premises. Such worker’s compensation insurance shall be in accordance
with the requirements of all applicable local, state, and federal law.

 

During
the period of any construction, Builder’s completed value risk policy (“Builder’s
Risk Policy”) of insurance in a nonreporting form insuring against all “Special
Form” risk of physical loss or damage to the Improvements, on an “all-risk”
basis, including but not limited to, risk of loss from fire and other hazards,
collapse, transit coverage, vandalism, malicious mischief, theft, earthquake
(if Premises are in earthquake zone 1 or 2) and sinkholes (if usually
recommended in the area of the Premises). 
The Builder’s Risk Policy shall include endorsements providing coverage
for building materials and supplies and temporary premises.  The Builder’s Risk Policy shall be in the
amount of the full replacement value of the 

 

1

 

Improvements
and shall contain a deductible amount acceptable to Landlord and any Leasehold
Mortgagee. Landlord shall be named as an additional insured.  The Builder’s Risk Policy shall include an
endorsement permitting initial occupancy.

 

Property
Damage Insurance insuring against: (a) Loss or damage commonly covered by a “Special
Form” policy insuring against physical loss or damage to the Improvements, on
an “all-risk” basis, including but not limited to, risk of loss from fire and
other hazards, collapse, transit coverage, vandalism, malicious mischief,
theft, earthquake (if the Premises are in earthquake zone 1 or 2) and sinkholes
(if usually recommended in the area of the Premises).  The policy shall be in the amount of the full
replacement value of the Improvements and personal property of Tenant and shall
contain a deductible amount acceptable to Landlord.  Landlord shall be named as an additional insured.  The policy shall include a stipulated value
endorsement or agreed amount endorsement and endorsements for contingent
liability for operations of building laws, demolition costs, and increased cost
of construction; (b) If applicable, loss or damage by explosion of steam
boilers, pressure vessels, or similar apparatus, now or hereafter installed on
the Premises, in commercially reasonable amounts acceptable to Landlord; (c)
Consequential loss of rents and income coverage insuring against all “Special Form”
risk of physical loss or damage with limits and deductible amounts acceptable
to Landlord covering risk of loss during the first 9 months of reconstruction,
and containing an endorsement for extended period of indemnity of at least 6
months, and shall be written with a stipulated amount of coverage if available
at a reasonable premium; (d) If the Premises are located, in whole or in part,
in a federally designated 100 year flood plain area, flood insurance for the
Improvements in an amount equal to the lesser of (i) the full replacement value
of the Improvements; or (ii) the maximum amount of insurance available for the
Improvements under all federal and private flood insurance programs; (e) Loss
or damage caused by the breakage of plate glass in commercially reasonable
amounts acceptable to Landlord; and (f) Loss or damage commonly covered by
blanket crime insurance including employee dishonesty, in commercially
reasonable amounts acceptable to Landlord.

 

Professional
liability insurance as reasonably appropriate.

 

Business
Interruption Insurance coverage with respect to the Premises in an amount of
coverage reasonably sufficient to pay, if necessary, the Rent and other charges
under the Lease for a period of not less than one (1) year.

 

Boiler
and machinery insurance covering the full replacement cost value of the
machinery and equipment in the MOB for loss or damage from explosion of boilers
or pressure vessels and mechanical or electrical breakdown.

 

Before
permitting any general contractor or subcontractor to perform any work at the
MOB, Tenant shall obtain a certificate from such general contractor or
subcontractor evidencing that it has obtained insurance in such amounts and
against such risks as is customarily carried by persons engaged in similar businesses
in the same geographical area. 
Certificates of insurance shall be executed and filed prior to the
commencement of  the subcontractor’s
performance of any work.  All Tenant
general contractors and subcontractors shall be required to include the Parties
and their Affiliates as additional insureds on their insurance policies.  Tenant shall obtain endorsements evidencing
such additional insured status for all required coverage.

 

2

 

The
insurance requirements set forth herein shall in no way limit either of the
Parties liability hereunder.

 

All
dollar amounts expressed in this Exhibit shall be updated every five (5) years
based on the then-current market conditions.

 

The
following provisions shall apply to all insurance coverages required hereunder:
(a) the form and substance of all policies shall be subject to the approval of
Landlord, which approval will not be unreasonably withheld, (b) the carriers of
all policies shall have a Best’s Rating of “A” or better and a Best’s Financial
Category of X or higher and shall be authorized to do insurance business in the
State, (c) Tenant shall be the “named insured” and Landlord shall be an “additional
insured” on each policy,  (d) Tenant
shall deliver to Landlord certificates or policies showing the required
coverages and endorsements.  The policies
of insurance shall provide that the policy may not be cancelled or not renewed,
and no material change or reduction in coverage may be made, without at least
thirty (30) days’ prior written notice to Landlord, (e) the policies shall
contain a severability of interest and/or cross liability endorsement, provide
that the acts or omissions of Tenant or Landlord will not invalidate the
coverage of the other party, and provide that Landlord shall not be responsible
for payment of premiums,  (f) all loss
adjustment shall require the written consent of Landlord and Tenant, as their
interests may appear, and (g) at least 30 days prior to the expiration of each
insurance policy, Tenant shall deliver to Landlord a certificate showing
renewal of such policy and payment of the annual premium therefor and a current
certificate of compliance completed and signed by Tenant’s insurance agent.

 

The
term “full replacement value” means the actual replacement cost thereof from
time to time including increased cost of construction endorsement, with no
reductions or deductions.  Tenant shall,
in connection with each annual policy renewal, deliver to Landlord a
redetermination of the full replacement value by the insurer or an endorsement
indicating that the Premises is insured for its full replacement value.  If Tenant makes any permitted alterations to
the Premises, Landlord may have such full replacement value redetermined at any
time after such permitted alterations are made, regardless of when the full
replacement value was last determined.

 

Each
of Tenant’s (or Developer’s) contractors (each, a “Contractor”) shall be
required to obtain and maintain throughout construction related to the Improvements:

 

I.              CONTRACTOR’S LIABILITY INSURANCE

 

A.            The Contractor shall purchase from
and maintain in a company or companies lawfully authorized to do business in
the jurisdiction in which the Premises are located such insurance as will
protect the Contractor, Tenant and Landlord from claims set forth below which
may arise out of or result from the Contractor’s operations under the
construction contract and for which the Contractor may be legally liable,
whether such operations be by the Contractor or by a Subcontractor or by anyone
directly or indirectly employed by any of them, or by anyone for whose acts any
of them may be liable:

 

3

 

1.             claims under workers’ compensation,
disability benefit and other similar employee benefit acts which are applicable
to the work to be performed;

 

2.             claims for damages because of
bodily injury, occupational sickness or disease, or death of the Contractor’s
employees;

 

3.             claims for damages because of
bodily injury, sickness or disease, or death of any person other than the
Contractor’s employees;

 

4.             claims for damages insured by usual
personal injury liability coverage;

 

5.             claims for damages, other than to
the work itself, because of injury to or destruction of tangible property,
including loss of use resulting therefrom;

 

6.             claims for damages because of
bodily injury, death of a person or property damage arising out of ownership,
maintenance or use of a motor vehicle;

 

7.             claims for bodily injury or
property damage arising out of completed operations; and

 

8.             claims involving contractual
liability insurance applicable to the Contractor’s obligations.

 

B.            The insurance required by Section
I.A includes the following:

 

                1.             Commercial General Liability Insurance, including as minimum
coverages:  (1) Operations and Premises
Liability (including Elevator Liability); (2) Independent Contractors’
Protective Liability; (3) Completed Operations and Product Liability
(maintained on a year to year basis in effect for a period of three years after
the date of final payment); (4) Personal Injury Liability with employment
exclusion deleted; (5) Broad Form Property Damage Liability with Explosion,
Collapse, and Underground Damage Liability endorsement; (6) Blanket Contractual
Liability; (7) Scaffolding Act Liability (if available); and (8) terrorism
coverage.  This insurance shall be
written on an occurrence basis for not less than the following limits of
liability, or any limits required by law, whichever is greater:  Bodily Injury Liability or Property Damage
Liability each occurrence/aggregate - $4,000,000 Products/Completed Operations
each occurrence/aggregate - $4,000,000 Personal and Advertising Injury each
occurrence/aggregate - $4,000,000.  The
policy shall be endorsed to have the general aggregate apply to the Premises
only.

 

                2.             Workers’ Compensation, Occupational Disease, and
Employer’s Liability Insurance shall be acquired by the Contractor and
maintained throughout the term of this Agreement including as minimum
coverages:  (1) Florida statutory limits;
and (2) Employer’s Liability Insurance at a limit of not less than $1,000,000
each accident.

 

                3.             Comprehensive Automobile Liability Insurance shall be
acquired by the Contractor and maintained throughout the term of the work
including as minimum coverages:  (1)
covering owned automobiles, employers’ non-ownership liability (including
loading and 

 

4

 

unloading
thereof); and (2) insuring against bodily injury, personal injury (including death),
property damage, medical payments, and uninsured and underinsured motorists;
and the limits of liability shall be no less than:  Bodily Injury Liability each
occurrence/aggregate - $1,000,000; - Property Damage Liability each
occurrence/aggregate - $1,000,000.

 

                4.             Umbrella Excess Liability Insurance with coverages for
the same hazards as covered in the primary policies, including any special
requirements, insuring liability exceeding the limits of each of the
above-described coverages.  The limit of the
insurance shall be no less than $10,000,000 combined limits.

 

C.            Prior to the commencement of the
work, the Contractor shall file with the Tenant valid Certificates of Insurance
and amendatory riders or endorsements to Contractor’s insurance policies required
by this Paragraph, all in form and substance satisfactory to Tenant and
Landlord, naming with respect to coverages in Sections I.B.1, I.B.3 and I.B.4:
the Tenant, the Landlord and any subsidiary, parent or Affiliate either of them
and their respective directors, officers, agents and employees; and its agents
and employees and other persons or entities with an insurable interest
designated by Tenant or Landlord as additional insureds.

 

                1.             Such certificates shall indicate that as respects said
additional insureds, there shall be severability of interests under the
insurance policies for all coverages provided under said insurance policies and
that the coverages thereunder shall be primary with no insurance provisions,
unless acceptable to Tenant and Landlord.

 

                2.             Such certificates and amendatory riders or endorsements
shall clearly indicate the specific coverage (including the contractual
liability for the Contractor’s obligations) and shall contain a provision
requiring the giving of written notice to Tenant and Landlord at least thirty
(30) days prior to the cancellation, non-renewal or material modification of
any such policies, as evidenced by return receipt of United States Certified or
Registered Mail.

 

D.            If requested by Tenant or Landlord,
the Contractor shall promptly procure, at Tenant’s expense, liability insurance
in such amounts as the Tenant may request insuring against perils not listed in
Section I.A.

 

E.             If Contractor fails to purchase or
maintain or require to be purchased and maintained the liability insurance
specified by Section I.A, the Tenant may (but shall not be obligated to)
purchase such insurance on the Contractor’s behalf and shall be entitled to be
repaid for any premiums paid therefor by the Contractor.

 

F.             When such insurance, due to the
attainment of a normal expiration date or renewal date, shall expire, the
Contractor shall, not less than fifteen (15) days prior to such expiration or
renewal date, supply Tenant and Landlord with updated replacement Certificates
of Insurance and amendatory riders or endorsements that clearly evidence the
continuation of all coverage in the same manner, limits of protection, and
scope of coverage, as was provided by the Certificates and amendatory riders or
endorsements originally supplied.

 

5

 

EXHIBIT 22.10

 

MEMORANDUM OF GROUND LEASE

 

[to be attached]

 

1

 

Schedule to Exhibit 10.51

 

Substantially Similar Ground Leases Omitted

 

	
  Property

  	
   

  	
  Landlord

  
	
   

  	
   

  	
   

  
	
  Central Medical Building at

  Florida Medical Center

  	
   

  	
  Douglas E. Rabe, as successor trustee pursuant to

  the FMC Land Trust Agreement Number 1001

  
	
   

  	
   

  	
   

  
	
  East Medical Building at

  Florida Medical Center

  	
   

  	
  Douglas E. Rabe, as successor trustee pursuant to

  the FMC Land Trust Agreement Number 1001

  
	
   

  	
   

  	
   

  
	
  North Medical Building at

  Florida Medical Center

  	
   

  	
  Douglas E. Rabe, as successor trustee pursuant to

  the FMC Land Trust Agreement Number 1001

  
	
   

  	
   

  	
   

  
	
  Oakland Medical Mall at

  Florida Medical Center

  	
   

  	
  Douglas E. Rabe, as successor trustee pursuant to

  the FMC Land Trust Agreement Number 1001

  
	
   

  	
   

  	
   

  
	
  Medical Arts Building at

  North Shore Medical Center

  	
   

  	
  Tenet Healthsystem North Shore, Inc.

  
	
   

  	
   

  	
   

  
	
  Palmetto Medical Building

  	
   

  	
  Lifemark Hospitals, Inc.

  
	
   

  	
   

  	
   

  
	
  Farris Building at Good

  Samaritan Medical Center

  	
   

  	
  Tenet Good Samaritan, Inc.

  

 

1Exhibit
10.51

 

PURCHASE AND SALE AGREEMENT

 

THIS
PURCHASE AND SALE AGREEMENT (the “Agreement”) is made the 16th day of November, 2010 (the “Effective Date”), by and between IBC Industrial Properties
LLC, a Delaware limited liability company (“Seller”)
and CT/BH Interchange LLC, a Delaware limited liability company (“Purchaser”).

 

RECITALS

 

A.            WHEREAS, Seller, is the owner of
that certain real property located at 1651 Interchange Drive, 3392 Mike Daley
Drive, 3454 Mike Daley Drive and 3524 Mike Daley Drive, each in the City of San
Bernardino, California, commonly known as “Building A, Building D-1, Building
D-2 and Building E in the Interchange Business Center,” and as more
particularly described in Exhibit A, attached hereto (the “Real Property”).

 

B.             WHEREAS, Purchaser desires to
purchase the Real Property from Seller, and Seller desires to sell the Real
Property to Purchaser upon the terms and conditions hereinafter set forth.

 

NOW,
THEREFORE, in consideration of the premises and the mutual promises and agreements
hereinafter contained and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Seller and Purchaser hereby
agree as follows:

 

1.             Purchase and
Sale of the Property. 
Subject to the terms and conditions of this Agreement, Seller hereby
agrees to sell, assign and transfer, without recourse and warranty except as
specifically set forth herein, and Purchaser hereby agrees to purchase, the
Real Property, together with all of the other real and personal property
described in, and to be conveyed by Seller to Purchaser pursuant to, Exhibits
C, D, E and F of this Agreement (collectively with the Real Property, the “Property”).

 

2.             Purchase Price.

 

2.1.          Purchase
Price.  The purchase price (the “Purchase Price”) for the Property payable by Purchaser to
Seller hereunder shall be Thirty Million and No/100
Dollars ($30,000,000.00).

 

2.2.          Wire.  Purchaser shall pay the Purchase Price in
immediately available funds to Seller on the Closing Date (as defined in Section 7.1
below) by wire transfer to the Escrow Agent (as defined in Section 3
below), plus or minus prorations as set forth below.

 

2.3.          Treatment
as Sale; Ownership.  On the Closing
Date, the ownership of all legal and equitable right, title and interest in the
Property will be transferred to and vested in Purchaser.

 

3.             Earnest Money

 

3.1.          On
the Effective Date, Purchaser shall deliver to First American Title Insurance
Company (as “Escrow Agent” or “Title Company”) an earnest money deposit of Two Million and
No/100 Dollars ($2,000,000.00) (together with any and all interest that may be
earned 

 

1

 

thereon between the date of deposit and the date of
Closing hereunder, collectively the “Earnest Money”),
which Earnest Money shall be non-refundable and shall be refunded to Purchaser
in the event that the conditions to Purchaser’s obligation to consummate the
Closing in accordance with Section 7.5 below are not satisfied or
due to a Seller default in accordance with Section 10 below or as
otherwise expressly provided in this Agreement that the Earnest Money shall be
refunded to Purchaser.  Notwithstanding
any provision in this Agreement to the contrary, if Purchaser fails to timely
deposit the Earnest Money as provided herein, Purchaser shall be deemed to have
elected to terminate this Agreement and the parties shall have no further
rights or obligations hereunder except for obligations which expressly survive
the termination of this Agreement.

 

3.2.          The
Escrow Agent shall have no liability to any party on account of its failure to
disburse the Earnest Money in the event of any unresolved dispute as to which
party is entitled to receive the same. 
In the event of any dispute as to which party hereto is entitled to
receive the Earnest Money, Escrow Agent shall have the right, at its sole
election, either to retain the funds and disburse them in accordance with the
final order of a court of competent jurisdiction or to deposit the Earnest
Money with said court, pending a final decision of such controversy.  The parties hereto further agree that Escrow
Agent shall not be liable except in the event of its negligence or willful
misconduct.

 

3.3           Upon Closing, the Earnest Money shall
be delivered by Escrow Agent to Seller and shall be applied as a credit against
the Purchase Price hereunder.

 

4.             Inspection.

 

4.1.          Purchaser acknowledges and agrees that (i) Seller has
delivered to Purchaser prior to the date hereof copies of those instruments and
documents relating to the Property in its possession, as identified on Exhibit B,
attached hereto, and incorporated herein by this reference (collectively, the “Due Diligence Materials”), (ii) Purchaser has conducted
all due diligence as Purchaser considered necessary or appropriate (including
but not limited to Hazardous Materials or the environmental condition of the
Property); (iii) Purchaser has reviewed, examined, evaluated and verified
the results of its due diligence to the extent it deems necessary or
appropriate with the assistance of such experts as Purchaser deemed
appropriate; (iv) Purchaser has determined to its satisfaction the
assignability of any documents to be assigned as part of the transaction; (v) except
for the Seller’s Warranties (defined below), Purchaser is acquiring the Property
based exclusively upon its own due diligence; (vi) Purchaser has
independently confirmed to its satisfaction all information that it considers
material to its purchase of the Property; and (vii) Purchaser has reviewed
and evaluated the Due Diligence Materials and has elected to proceed with the
purchase and sale transaction contemplated by this Agreement.  Seller shall immediately deliver to Purchaser
any additional instruments and documents relating to the Property that Seller
discovers or first obtains from and after the Effective Date (collectively the “Additional Due Diligence Materials”); provided, however,
Purchaser shall have no right to terminate this Agreement as the result of such
Additional Due Diligence Materials except to the extent the information
disclosed in the Additional Due Diligence Materials results in a failure of
condition under Section 7.5, below. 
For purposes of this Agreement the term “Seller’s
Warranties” shall mean, collectively, the representations and 

 

2

 

warranties of Seller contained in Section 8
of this Agreement and/or in any document executed by Seller and delivered to
Purchaser at Closing.

 

4.2.          As
used herein, the term “Natural Hazard Area” shall mean those areas identified as
natural hazard areas or natural hazards in the Natural Hazard Disclosure Act,
California Government Code Sections 8589.3, 8589.4 and 51183.5, and California
Public Resources Code Sections 2621.9, 2694 and 4136, and any successor
statutes or laws (the “Act”). 
Purchaser hereby acknowledges that, prior to the Effective Date, Seller
has provided Purchaser with a Natural Hazard Disclosure Statement (the “Disclosure
Statement”) in a form required by the Act.  Purchaser acknowledges that Seller retained
the services of LGS Reports, Inc. to examine the maps and other
information made available to the public by government agencies for the purpose
of enabling Seller to fulfill its disclosure obligations with respect to the
Act and to prepare the written report of the result of its examination (the “Report”).  Purchaser acknowledges
that the Report fully and completely discharges Seller from its disclosure
obligations under the Act and under California Civil Code Sections 1102 through
1102.17.  Purchaser acknowledges and
agrees that nothing contained in the Disclosure Statement releases Purchaser
from its obligation to fully investigate and satisfy itself with the condition
of the Property, including, without limitation, whether the Property is located
in any Natural Hazard Area.  Purchaser
further acknowledges and agrees that the matters set forth in the Disclosure
Statement or Report may change on or prior to the Closing and that Seller has
no obligation to update, modify or supplement the Disclosure Statement or
Report.  Purchaser is solely responsible
for preparing and delivering its own Disclosure Statement to subsequent
prospective purchasers of the Property.

 

4.3.          In
the event the Closing does not occur, Purchaser shall promptly return to Seller
or destroy (as directed by Seller) all copies of Due Diligence Materials
delivered by Seller to Purchaser, unless Purchaser is required to keep any such
documents by applicable law or any such documents are needed in connection with
the resolution of any dispute between the parties hereunder; provided, however,
that Purchaser shall keep such Due Diligence Materials confidential in
accordance with the Confidentiality Agreement, as such term is defined in Section 16.14,
below.

 

5.             AS IS.

 

5.1.          Notwithstanding
anything to the contrary contained in this Agreement, Purchaser understands and
agrees that the Property is being sold and conveyed hereunder “AS IS, WHERE IS”
without any representation or warranty by Seller whatsoever, except for the
Seller’s Warranties.  Except for the
Seller’s Warranties, (i) Seller has not made and does not hereby make any
express or implied representations or warranties whatsoever with respect to the
Property, and (ii) Purchaser acknowledges that Purchaser is entering into
this Agreement without relying upon any statement or representation made by
Seller, any agent, employee or officer of Seller with respect to the Property
or any matter set forth, contained or addressed in the Due Diligence Materials,
including without limitation, the following:

 

(a)                                  the operation
or performance of the Property, the income potential, economic status, uses, or
the merchantability, habitability or fitness of any portion of the Property for
a particular purpose;

 

3

 

(b)                                 the physical
condition of the Property or the condition or safety of the Property or any
component thereof, including, but not limited to, plumbing, sewer, heating,
ventilating and electrical systems, roofing, air conditioning, foundations,
soils and geology, including Hazardous Materials, lot size, or suitability of
the Property or any component thereof for a particular purpose;

 

(c)                                  the presence or
absence, location or scope of any Hazardous Materials in, at, about or under
the Property;

 

(d)                                 the habitability
or suitability for occupancy of any structure and the quality of its
construction;

 

(e)                                  whether the
improvements are structurally sound, in good condition, or in compliance with
applicable Laws;

 

(f)                                    the accuracy of
any statements, calculations or conditions stated or set forth in the Due
Diligence Materials, other books and records concerning the Property, or any of
Seller’s offering materials with respect to the Property;

 

(g)                                 the dimensions
of the Property or the accuracy of any floor plans, square footage, lease
abstracts, sketches, or revenue or expense projections related to the Property;

 

(h)                                 the locale of
the Property, the leasing market for the Property, or the market assumptions
Purchaser utilized in its analysis of the Property and determination of the
Purchase Price (such as rental rates, leasing costs, vacancy and absorptions
rates, land values, replacement costs, maintenance and operating costs, and
financing costs);

 

(i)                                     whether the
Property is or would likely constitute a target of terrorist activity or other
acts of war;

 

(j)                                     existing land
use or governmental entitlements of the Property, or the ability of Purchaser
to obtain any and all necessary governmental approvals or permits for Purchaser’s
intended use and development of the Property;

 

(k)                                  the leasing
status of the Property or the intentions of any parties with respect to the
negotiation and/or execution of any lease for any portion of the Property; and

 

(l)                                     Seller’s
ownership of any portion of the Property or the condition or status of Seller’s
or Purchaser’s title to the Property.

 

5.2.          In addition, Purchaser expressly understands and
acknowledges that it is possible that unknown problems, conditions, losses,
costs, damages, claims, liabilities, expenses, demands or obligations of any
kind or nature (collectively, “Liabilities”) may exist with respect to the
Property and that, except for the Seller’s Warranties, Purchaser took that
possibility into account in determining and agreeing to the Purchase Price, and
that a portion of such consideration, having been bargained for between the
parties with the knowledge of the possibility of such 

 

4

 

unknown Liabilities shall be given in exchange for a
full accord and satisfaction and discharge of all such Liabilities.  Absent actual fraud, Purchaser agrees that no
claim may be made by Purchaser against Seller or any parent, subsidiary,
member, employee, representative, affiliate or related party of Seller, and
their successors and assigns (“Seller Parties”)
for any special, indirect or consequential damages related to any breach or
wrongful conduct (whether the claim therefore is based on contract, tort or
duty imposed by law) in connection with, arising out of or in any way related
to the transactions contemplated and relationship established by this
Agreement, any other document executed in connection herewith, or any act,
omission or event occurring in connection therewith.  Purchaser, for Purchaser and, to the extent
enforceable under applicable law, Purchaser’s successors and assigns, hereby
waives, releases and agrees not to bring a claim against Seller Parties for any
and all Liabilities, whether or not accrued, whether attributable to events or
circumstances which have heretofore or may hereafter occur and whether or not
known or suspected to exist in its favor. 
With respect to the waivers and releases set forth in this Section 5,
Purchaser specifically waives the provisions of California Civil Code Section 1542,
which provides as follows:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH
THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME
OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

PURCHASER
HAS BEEN ADVISED BY ITS LEGAL COUNSEL AND UNDERSTANDS THE SIGNIFICANCE OF THIS
WAIVER OF SECTION 1542 RELATING TO UNKNOWN, UNSUSPECTED AND CONCEALED
CLAIMS.  BY ITS INITIALS BELOW, PURCHASER
ACKNOWLEDGES THAT IT FULLY UNDERSTANDS, APPRECIATES AND ACCEPTS ALL OF THE
TERMS OF THIS SECTION 5.

 

PURCHASER’S
INITIAL:                                         

 

The
release and waiver set forth in this Section 5.2 is not intended and shall
not be construed as affecting or impairing any rights or remedies that
Purchaser may have against Seller as a result of a breach of Seller’s
Warranties (to the extent provided in this Agreement) or any of any of Seller’s
Contract Responsibilities.

 

5.3           Except for the Seller’s Contract
Responsibilities and the Seller’s Warranties, Seller is under no duty to make
any affirmative disclosures or inquiry regarding any matter which may or may
not be known to Seller Parties, and Purchaser, for itself and for its
successors and assigns, hereby specifically waives and releases each of the
Seller Parties from any such duty that otherwise might exist. For purposes of
this Agreement the term “Seller’s Contract
Responsibilities” shall mean collectively (i)  the covenants
contained in Section 6 and Section 14, and
(ii) the obligations of Seller contained in Sections 15, 16.11
and 16.13 of this Agreement and/ or in any document executed by Seller
and delivered to Purchaser at Closing.

 

5.4           If Purchaser consummates the Closing
of the purchase of the Property pursuant to this Agreement on the Closing Date
as herein contemplated, Purchaser hereby assumes any and all Assumed
Liabilities (as defined below) and Purchaser and/or any transferee of the
Property that is an affiliate or related party of Purchaser (collectively, “Purchaser
Indemnitors”) agree to and shall indemnify, defend with legal counsel
reasonably acceptable to Seller, and hold 

 

5

 

harmless
Seller Parties from and against any and all Assumed Liabilities to the extent
provided below. For purposes hereof, the term “Assumed
Liabilities” shall mean any and all Liabilities of Seller of any
kind or nature arising out of or in connection with the ownership and operation
of the Property, whether arising or accruing before, on or after the Effective
Date, whether attributable to events or circumstances which have heretofore or
may hereafter occur and whether known or unknown to Purchaser as of the Closing
Date; provided, however, Assumed Liabilities shall not include (i) any
Liabilities to any of the Seller Parties or relating to Seller’s Contract
Responsibilities, (ii) any Liabilities for which Seller is responsible
under Section 6 of this Agreement, or (iii) any Liabilities
arising from or in connection with a tort claim not caused by Purchaser arising
during the time in which Seller owned fee title to the Property, unless
Purchaser has the right to seek a full recovery of such Liabilities from
tenants of the Property.  Notwithstanding
the foregoing or any provision to the contrary contained in this Agreement or
any of the other documents executed and delivered by Purchaser in connection
with this Agreement and this Transaction or otherwise, the maximum aggregate
liability of Purchaser Indemnitors under the foregoing indemnity solely attributable
to events or circumstances arising prior to the Closing Date shall not exceed
One Million Dollars ($1,000,000.00). 
There shall be no cap on the amount of liability of Purchaser
Indemnitors under the foregoing indemnity for events or circumstances arising
on or after the Closing Date.  The terms
of this Section 5.4 shall survive the Closing.

 

6.             Adjustments and
Prorations.

 

6.1.          Lease
Rentals.  All collected rents,
collected common area maintenance amounts and any collected tax and operating
expense reimbursements (“Rents”) due
from tenants of the Property shall be prorated between Seller and Purchaser as
of the Closing Date.  Seller shall be
entitled to all Rents attributable to any period to but not including the
Closing Date.  Purchaser shall be entitled
to all Rents attributable to any period on and after the Closing Date.

 

6.2.          Other
Revenues.  Revenues from Property
operations (other than Rents (which shall be prorated as provided in Section 6.1,
and pre-paid installments or other payments under any and all other contracts
relating to the Property (which shall be the sole property of Seller)) that are
actually collected shall be prorated between Purchaser and Seller as of the
Closing Date.  Seller shall be entitled
to all such revenues attributable to any period to but not including the
Closing Date and Purchaser shall be entitled to all such revenues attributable
to any period after the Closing Date.

 

6.3.          Post-Closing
Collections.  After Closing,
Purchaser shall make a good faith effort (i.e., include the amount of
delinquent rent in the first bills thereafter submitted to the tenants in
question after the Closing) to collect any Rents or other revenues not
collected as of the Closing Date on Seller’s behalf and to tender the same
(less Purchaser’s reasonable cost of collection of same) to Seller upon
receipt, but Purchaser shall not be required in connection therewith to serve
any notices or proceed with an unlawful detainer or breach of lease
action.  Rents or other revenues
collected by Purchaser after the Closing Date shall be applied first to unpaid
Rents and other revenue accruing after the Closing Date, and then to delinquent
Rents.  Seller shall deliver to Purchaser
all Rents and other revenue received by Seller from tenants for the period from
and after the Closing Date which are unpaid as of the Closing Date and which
are not prorated through Escrow.  The
terms of this Section 6.3 shall survive the Closing.

 

6

 

6.4.          Proration
of Ad Valorem Taxes.  Ad valorem real
estate and personal property taxes for the Property shall be prorated as of the
Closing Date, such that Purchaser shall be solely responsible for all such ad valorem real estate and personal property taxes due and
payable with respect to the period from and after the Closing Date and Seller
shall be solely responsible for all such taxes due and payable with respect to
the period prior to Closing Date.  If the
amount of any such item is not ascertainable on the Closing Date, the credit therefor
shall be based on the most recent available tax bill for the Property.

 

6.5.          Special
Assessments.  Seller shall pay all
installments of special assessments due and payable with respect to the period
prior to the Closing Date and Purchaser shall pay all installments of special
assessments due and payable with respect to the period from and after the
Closing Date.

 

6.6.          Reassessment.  In the event the Property has been assessed
for property tax purposes at such rates as would result in reassessment (i.e., “escape assessment”
or “roll-back taxes”) based upon the change
in land usage or ownership of the Property on or after the Closing Date,
Purchaser hereby agrees to pay all such taxes and to indemnify and save Seller
harmless from and against all Liabilities for such taxes.  Similarly, in the event the Property has been
assessed for property tax purposes at such rates as would result in
reassessment (i.e., “escape assessment”
or “roll-back taxes”) based upon the change
in land usage or ownership of the Property prior to the Closing Date, Seller
hereby agrees to pay all such taxes and to indemnify and save Purchaser
harmless from and against all Liabilities for such taxes. Such indemnity
obligations shall survive the Closing and not be merged therein.

 

6.7.          Other
Property Operating Expenses. 
Operating expenses for the Property (including, without limitation,
amounts payable under any Contract assumed by Purchaser at Closing and any
association dues and assessments) shall be prorated as of the Closing Date.  Seller shall pay all utility charges and
other operating expenses attributable to the Property to, but not including the
Closing Date (except for those utility charges and operating expenses payable
by tenants in accordance with the leases on the Property) and Purchaser shall
pay all utility charges and other operating expenses attributable to the
Property after the Closing Date.  To the
extent that the amount of actual consumption of any utility services is not determined
prior to the Closing Date, a proration shall be made at Closing based on the
last available reading and post-closing adjustments between Purchaser and
Seller shall be made within twenty (20) days of the date that actual
consumption for such pre-closing period is determined, which obligation shall
survive the Closing and not be merged therein. 
Seller shall not assign to Purchaser any deposits which Seller has with
any of the utility services or companies servicing the Property.  Purchaser shall arrange with such services
and companies to have accounts opened in Purchaser’s name beginning at
12:01 a.m. on the Closing Date. 
Notwithstanding the foregoing terms of this Section 6.7,
Seller shall have no obligation to pay (and Purchaser shall not receive a
credit at Closing for) any operating expenses to the extent that Purchaser is
entitled after Closing to reimbursement of operating expenses, or the recovery
of any increase in operating expenses, from the tenants under the leases on the
Property, regardless of whether Purchaser actually collects such reimbursement
or increased operating expenses from such tenants, it being understood and
agreed by Purchaser and Seller that (a) as between Purchaser and Seller,
Purchaser shall be responsible for payment of all of such operating expenses,
and (b) the burden of collecting such reimbursements shall be solely on
Purchaser.

 

7

 

6.8.          Security
Deposits.  Purchaser shall be
credited, and Seller shall be charged, with the amount of the unapplied
security deposits, if any, under the Leases.

 

6.9.          Closing
Costs.  Purchaser shall pay the
following costs and expenses associated with the Transaction:  (a) the incremental premiums charged by
the Title Company for the ALTA extended coverage portion of an ALTA owner’s
title insurance policy in the amount of the Purchase Price (the “Owner’s Title Policy”) (including endorsements requested by
Purchaser), if Purchaser elects to obtain same, (b) the cost of any new
survey ordered by Purchaser, (c) all recording and filing charges in
connection with the instrument by which Seller conveys the Property,
(d) fifty percent (50%) of all escrow or closing charges, (e) fifty
percent (50%) of all city and county transfer taxes, if any, (f) all costs
of Purchaser’s due diligence, including fees due its consultants and attorneys,
and (g) all lenders’ fees related to any financing to be obtained by
Purchaser.  Seller shall pay the
following costs and expenses associated with the Transaction:  (i) all fees due its attorneys, (ii) the
premium charged for the CLTA standard coverage portion of the Owner’s Title
Policy and all costs related to the removal or cure of Title Objections that
Seller has agreed or is required to remove or cure pursuant to Section 7.5(c) below,
(iii) fifty percent (50%) of all city and county transfer taxes, and (iv) fifty
percent (50%) of all escrow or closing charges, of all escrow or closing
charges.  The obligations of the parties
under this Section 6.9 shall survive the Closing or any earlier
termination of this Agreement.

 

6.10.        Apportionment
Credit.  In the event the
apportionments to be made at the Closing result in a credit balance (a) to
Purchaser, such sum shall be paid at the Closing by giving Purchaser a credit
against the Purchase Price in the amount of such credit balance, or (b) to
Seller, Purchaser shall pay the amount thereof to Seller at the Closing by wire
transfer of immediately available funds to the account or accounts to be
designated by Seller for the payment of the Purchase Price.

 

7.             Closing.

 

7.1.          Closing
Date.  The consummation of the
purchase and sale of the Property contemplated hereby (the “Closing”) shall occur on or before November 30,
2010 (the “Closing Date”).
The parties shall conduct an escrow-style closing through the Escrow Agent so
that it will not be necessary for any party to attend the Closing.  Time is of the essence with respect to the
Closing.  Notwithstanding the timing of
the Closing Date as set forth above, in the event Seller consents to the
Closing occurring after the Closing Date due to Purchaser’s inability to close
on or before the Closing Date, the Purchase Price shall increase by Twenty-Five
Thousand Dollars ($25,000) per day until the Transaction closes (provided that
no such increase shall be applicable if and to the extent the Closing Date is
extended due to the failure of a period of time provided under Section 7.5(c) or
Article 15 to end prior to the Closing Date, so long as such failure is
not caused by Purchaser).

 

7.2.          Title
Transfer and Payment of Purchase Price. 
Provided all conditions precedent to Seller’s obligations hereunder have
been satisfied or waived by Seller, Seller agrees to convey the Property to
Purchaser upon confirmation of receipt of the Purchase Price by the Escrow
Agent as set forth below.  Provided all
conditions precedent to Purchaser’s obligations hereunder have been satisfied
or waived by Purchaser, Purchaser agrees to pay the entire Purchase Price
(minus the Earnest Money and adjusted for any prorations) by timely delivering
the same to the 

 

8

 

Escrow Agent no later than one business day prior to
the Closing Date and unconditionally directing the Escrow Agent to deposit the
same in Seller’s designated account by 2:00 p.m. Pacific Time on the
Closing Date.  Notwithstanding the
foregoing, Seller shall have the right to terminate this Agreement at any time
if such payment is not received in Seller’s designated account by 2:00 p.m.
Pacific Time on the Closing Date.

 

7.3.          Seller’s
Closing Deliveries.  At Closing,
Seller shall deliver or cause to be delivered the following:

 

(a)                                  Deed.  A deed in the form of Exhibit C
attached hereto and incorporated herein by this reference (“Deed”) executed and acknowledged by Seller.

 

(b)                                 Bill of Sale.  A bill of sale in the form of Exhibit D
attached hereto and incorporated herein by this reference (“Bill of Sale”) executed by Seller.

 

(c)                                  Assignment of
Tenant Leases.  An
assignment and assumption of the leases on the Property, in the form of Exhibit E
attached hereto and incorporated herein by this reference (“Assignment of Leases”) executed by Seller.

 

(d)                                 Assignment of
Intangible Property.  An
assignment and assumption of the Intangible Property (as defined therein) (to
the extent the same are not transferred by the Deed, Bill of Sale or Assignment
of Leases) in the form of Exhibit F attached hereto and
incorporated herein by this reference (“Assignment of Intangible
Property”) executed by Seller.

 

(e)                                  Notice to
Tenants.  A single form letter in the
form of Exhibit H attached hereto and incorporated herein by this
reference, executed by Seller, duplicate copies of which shall be sent by
Purchaser after Closing to each tenant under the leases on the Property.

 

(f)                                    Non-Foreign
Status Affidavits.  A
non-foreign status affidavit in the form of Exhibit I attached
hereto and incorporated herein by this reference, as required by
Section 1445 of the Internal Revenue Code, and a California Form 593-C,
each executed by Seller.

 

(g)                                 Other Documents.  The owner’s affidavit attached hereto as Exhibit M
and such other documents as may be reasonably required by the Escrow Agent or
the Title Company or as may be agreed upon by Seller and Purchaser to
consummate the Transaction and to issue the Owner’s Title Policy.

 

(h)                                 Closing
Statement.  A closing
statement, setting forth the prorations and adjustments to the Purchase Price
respecting the Property to be made pursuant to Article 6 (the “Closing Statement”), executed by Seller.

 

(i)                                     Miscellaneous.  Seller shall request that the Property
Manager deliver all personal property, documents and all other information
relating to the Property to Buyer within ten (10) Business Days of the
Closing Date, but that Purchaser 

 

9

 

acknowledges that in no
event shall Seller be responsible or liable for causing the Property Manager to
deliver all such materials to Purchaser.

 

The
items to be delivered by Seller in accordance with the terms of Subsections (a) through
(g) of this Section 7.3 shall be delivered to Escrow
Agent no later than 5:00 p.m. Pacific Time on the last business day prior
to the Closing Date and the Closing Statement shall be delivered no later than
noon Pacific Time on the Closing Date.

 

7.4.          Purchaser’s
Closing Deliveries.  At the Closing,
Purchaser shall deliver or cause to be delivered the following:

 

(a)                                  Purchase Price.  The Purchase Price, as adjusted for
apportionments and other adjustments required under this Agreement, plus any
other amounts required to be paid by Purchaser at Closing.

 

(b)                                 Bill of Sale.  The Bill of Sale executed by Purchaser.

 

(c)                                  Assignment of
Leases.  The Assignment of Leases
executed by Purchaser.

 

(d)                                 Assignment of
Intangible Property.  The
Assignment of Intangible Property executed by Purchaser.

 

(e)                                  Other Documents.  Such other documents as may be reasonably
required by the Title Company or may be agreed upon by Seller and Purchaser to
consummate the Transaction.

 

(f)                                    Closing
Statement.  The Closing
Statement, executed by Purchaser.

 

The
Purchase Price shall be paid in accordance with the terms of Section 7.2
hereof and the items to be delivered by Purchaser in accordance with the terms
of Subsections (b) through (e) of this Section 7.4
shall be delivered to Escrow Agent no later than 5:00 p.m. Pacific Time on
the last business day prior to the Closing Date, and the Closing Statement
shall be delivered no later than noon Pacific Time on the Closing Date.

 

7.5.          Conditions
to Purchaser’s Obligations.  The
obligations of Purchaser under this Agreement to be performed on the Closing
Date are subject to either the satisfaction or waiver by Purchaser of each of
the following conditions:

 

(a)                                  All of the
representations and warranties of Seller specified in Section 8 of
this Agreement are true and correct in all material respects on and as of the
Closing Date;

 

(b)                                 Seller shall
have delivered all of the documents and other items required pursuant to Section 7.3
and shall have performed all other covenants, undertakings and obligations, and
complied with all conditions required by this Agreement, to be performed or
complied with by Seller at or prior to the Closing;

 

10

 

(c)                                  Title Company
shall be unconditionally committed to issue an Owner’s Title Policy in the form
of, and subject only to the exceptions set forth in, the pro-forma owner’s
title policy attached hereto as Exhibit J (“Pro-Forma
Policy”).  If Title Company issues
a supplemental title report for the Property, adding new exceptions not shown
on the Pro-Forma Policy and not caused by Purchaser, Title Company shall
deliver to Purchaser and Seller a copy of such supplemental report setting
forth any such new exceptions not previously included in the Pro Forma Title
Policy and not caused by Purchaser, together with copies of any new underlying
documents listed therein (“Supplemental Report”).  Purchaser shall have three (3) Business
Days after receipt of any Supplemental Report to deliver to Seller a written
notice (“Supplemental Title Notice”)
disapproving any such item.  If Seller
does not receive a Supplemental Title Notice from Purchaser within such three (3) Business
Day period, Purchaser shall be deemed to have approved such Supplemental
Report.  If Purchaser delivers to Seller
a Supplemental Title Notice disapproving any new exceptions in the Supplemental
Report (each a “Title Objection”), Seller shall
have three (3) Business Days after receipt of Purchaser’s Supplemental
Title Notice to deliver to Purchaser a written response (“Seller’s
Supplemental Response”) identifying which of such Title Objections
Seller shall undertake to cure or not cure. 
If Seller does not deliver a Seller’s Supplemental Response within said
three (3) Business Day period, Seller shall be deemed to have elected not
to eliminate or otherwise cure any such Title Objections.  If Seller elects not to eliminate or
otherwise cure a Title Objection in said Purchaser’s Supplemental Title Notice,
Purchaser shall have until the date which is five (5) Business Days after
Purchaser delivered the Supplemental Title Notice to notify Seller and Escrow
Agent, in writing, of Purchaser’s election to either waive the objection or
terminate this Agreement and obtain a refund of the Earnest Money.  If Seller has not received written notice
from Purchaser by said date, said failure shall be deemed to be Purchaser’s
approval of Seller’s Supplemental Response. 
Notwithstanding the foregoing, Purchaser shall be deemed to have
objected to any item in a Supplemental Report which is based on delinquent
taxes or delinquent real property assessments or any mortgage, deed of trust,
mechanic’s lien or similar monetary encumbrance, all of which encumbrances
(other than any such matters that are caused by Purchaser) shall automatically
constitute Title Objections.  If Seller
elects to cure any Title Objection, such cure may be by removal or affirmative
insurance and such removal or insurance may be effected by payment, bonding,
indemnity or otherwise.  Notwithstanding
the foregoing, if either Purchaser or Seller has scheduled the Closing Date
pursuant to Section 7.1 prior to receipt of a Supplemental Report,
the Closing Date shall be extended to the extent necessary in order to comply
with the response periods set forth above (but without any increase in the
Purchase Price with respect to such extension).

 

(d)                                 No casualty or
condemnation shall have occurred pursuant to which Purchaser has elected to
terminate the Agreement in accordance with Section 15 below; and

 

11

 

(e)                                  No petition has
been filed by or then pending against Seller under the Federal Bankruptcy Code
or any similar State or Federal Law, whether now or hereafter existing.

 

7.6.          Conditions
to Seller’s Obligations.  The
obligations of Seller under this Agreement to be performed on the Closing Date
are subject to either the satisfaction or waiver by Purchaser of each of the
following conditions:

 

(a)                                  All of the representations
and warranties of Purchaser specified in Section 9 of this
Agreement are true and correct in all material respects on and as of the
Closing Date;

 

(b)                                 Purchaser shall
have delivered all of the documents and other items required pursuant to Section 7.4
and shall have performed all other covenants, undertakings and obligations, and
complied with all conditions required by this Agreement, to be performed or
complied with by Purchaser at or prior to the Closing; and

 

(c)                                  No petition has
been filed by or then pending against Purchaser under the Federal Bankruptcy
Code or any similar State or Federal Law, whether now or hereafter existing.

 

7.7.          Waiver
of Failure of Conditions Precedent. 
At any time or times on or before the date specified for the satisfaction
of any condition, Seller or Purchaser may elect in writing to waive the benefit
of any such condition set forth in Section 7.5 or Section 7.6,
respectively.  By closing the transaction
contemplated by this Agreement, Seller and Purchaser shall be conclusively
deemed to have waived the benefit of any remaining unfulfilled conditions set
forth in Section 7.5 or Section 7.6, respectively.  In the event any of the conditions set forth
in Section 7.5 or Section 7.6 are neither waived nor
fulfilled, Seller or Purchaser (as appropriate) may exercise such rights and
remedies, if any, that such party may have pursuant to the terms of Section 10
or Section 11 (as applicable) of this Agreement.

 

8.             Representations,
Warranties and Agreements of Seller.  Seller hereby represents, warrants and agrees
to Purchaser as of the date hereof and as of the Closing Date that:

 

(a)                                  Seller is a
limited liability company duly organized, validly existing and in good standing
under the laws of the State of  Delaware;

 

(b)                                 Seller has the
full power, right and authority to execute, deliver and perform, and to enter
into and consummate all transactions contemplated by this Agreement, and the
full right and authority to sell all legal and equitable interests in the
Property, free of any participation interests currently existing therein;

 

(c)                                  Each individual
and/or entity signing this Agreement on behalf of Seller has been duly
authorized by Seller to execute and deliver this Agreement on behalf of Seller,
and Seller has duly authorized, executed and delivered this Agreement;

 

12

 

(d)                                 This Agreement
and the other instruments and documents required to be delivered by Seller
hereunder, when duly executed and delivered by Seller, shall constitute legal,
valid and binding obligations of Seller, enforceable against Seller in
accordance with their terms;

 

(e)                                  The execution,
delivery and performance of this Agreement by Seller does not materially
conflict with the organizational documents of Seller, or with any agreement,
contract, law, statute or regulation applicable to Seller, nor, to Seller’s
knowledge, constitute a material default under any agreement or instrument to
which Seller is a party or by which Seller is bound;

 

(f)                                    Seller is not a
foreign person and is a “United States Person” as such term is defined in Section 7701(a)(30)
of the Internal Revenue Code of 1986, as amended;

 

(g)                                 Neither Seller
nor any of its affiliates has dealt or negotiated with, or engaged on its own
behalf or for its benefit, any person or entity as an agent, broker, dealer or
otherwise who is entitled to a commission or fee in connection with the
purchase of the Property by Purchaser;

 

(h)                                 No petition has
been filed by or against Seller under the Federal Bankruptcy Code or any
similar State or Federal Law;

 

(i)                                     To Seller’s
knowledge, neither Seller nor any person, group, entity or nation that Seller
is acting, directly or indirectly for, or on behalf of, is named by any
Executive Order (including the September 24, 2001, Executive Order
Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism) or the United States Treasury
Department as a terrorist, “Specially Designated National and Blocked Person,”
or is otherwise a banned or blocked person, group, entity, or nation pursuant
to any Law  that
is enforced or administered by the Office of Foreign Assets Control, and Seller
is not engaging in this transaction, directly or indirectly, on behalf of, or
instigating or facilitating this transaction, directly or indirectly, on behalf
of, any such person, group, entity or nation. 
Seller is not engaging in this transaction, directly or indirectly, in
violation of any Laws relating to drug trafficking, money laundering or
predicate crimes to money laundering. 
None of the funds of Seller have been or will be derived from any
unlawful activity with the result that the investment of direct or indirect
equity owners in Seller is prohibited by Law or that the transaction or this
Agreement is or will be in violation of Law. 
Seller has and will continue to implement procedures, and has
consistently and will continue to consistently apply those procedures, to
ensure the foregoing representations and warranties remain true and correct at
all times prior to Closing.  For purposes
of this Agreement, the term “Law” shall mean
any municipal, county, state or Federal statutes, codes, ordinances, laws rules and
regulations; and

 

(j)                                     Seller’s
Knowledge Representations.  To Seller’s
knowledge:

 

13

 

(i)                              Except as
listed in Exhibit K
attached hereto and incorporated herein by this reference, Seller has not
received any written notice of any current, pending or threatened litigation
against Seller which would, if determined adversely to Seller, materially
adversely affect the Property, including, without limitation, Purchaser’s use
and/or operation thereof;

 

(ii)                           As of the
Effective Date, Seller has not entered into any contracts, subcontracts or agreements
affecting the Property which will be binding upon Purchaser after the Closing
other than (i) the contracts listed in Exhibit B attached hereto (the “Contracts”),
and (ii) the leases listed in Exhibit B
attached hereto (the “Leases”);

 

(iii)                     Exclusive of any Contracts
delivered to Purchaser by third parties, the copies of the Contracts delivered
solely by Seller to Purchaser pursuant to this Agreement are true, correct, and
complete copies of all of the Contracts that Seller provided Purchaser.  Except for defaults cured on or before the
Effective Date, Seller has not received nor given any written notices of
default under the terms of any of the Contracts except as listed in Exhibit K attached hereto;

 

(iv)                       As of the
Effective Date, the only tenants of the Property are the tenants listed in Exhibit L attached hereto and
incorporated herein by this reference; provided, however, that
the foregoing is not intended (and shall not be construed) as a representation
by Seller of the parties that are in actual possession of any portion of the
Property since there may be subtenants, licensees or assignees that are in
possession of portions of the Property of which Seller may not be aware; and

 

(v)                          Exclusive of
any Leases delivered to Purchaser by third parties, the copies of the Leases
delivered solely by Seller to Purchaser pursuant to this Agreement are true,
correct, and complete copies of all of the Leases that Seller provided
Purchaser.  Except for defaults cured on
or before the Effective Date, Seller has not received nor given any written
notices of default under the terms of any of the Leases, except as listed in Exhibit K
attached hereto;

 

(vi)                       Except for
violations cured or remedied on or before the Effective Date and except as
listed in Exhibit K
attached hereto, Seller has not received any written notice from any
governmental authority or otherwise of any violation of any Law applicable to
the Property, including, without limitation, any Environmental Law (defined
below); and

 

(vii)                    Seller has received no
written notice of any proceeding or inquiry by any governmental authority with
respect to the presence of Hazardous Materials upon or under the Property or
the migration thereof from or to other property.  As used in this Agreement, “Hazardous Materials” means any 

 

14

 

pollutants, hazardous or toxic substances or wastes, or contaminated
materials including oil and oil products, asbestos, urea formaldehyde and all
other materials and substances designated or regulated as hazardous or toxic
substances or wastes, pollutants or contaminated materials under any
Environmental Law (as hereinafter defined). As used herein, “Environmental Laws” means the Clean Water Act, Clean Air
Act, Resource Conservation and Recovery Act, the Comprehensive Environmental
Response, Compensation and Liability Act, the Superfund Amendment and
Reauthorization Act, the Toxic Substances Control Act, the Occupational Safety
and Health Act, the Carpenter - Presley-Tanner Hazardous Substance Account Act
(California Health and Safety Code §§ 25300-25395), the Hazardous Waste
Contract Law (California Health and Safety Code §§25100-25250.25) and all other
Federal, State or local environmental statutes, rules and regulations as
enacted or amended from time to time and all licenses, permits, certificates or
like authorizations promulgated under any of the foregoing.

 

(viii)                 The copies of the Due Diligence Materials
listed on Exhibit B and delivered to Purchaser prior to the
Effective Date constitute true and complete copies in all material respects; provided,
however, Seller shall not be deemed to make any representation or
warranty hereunder regarding the accuracy, completeness, methodology,
reliability or current status of any material contained in any document
prepared by any third party which comprises any portion of the Seller Due
Diligence Materials.

 

The
representations and warranties of Seller set forth in subsections (a) through
(j) of this Section 8 shall not survive the Closing and
shall merge with the Deed.  The maximum
aggregate liability of Seller for breaches of Seller’s representations and
warranties shall be limited to Purchaser’s out-of-pocket costs related to
performing due diligence on the Property and negotiating this Agreement, but in
no event greater than Twenty-Five Thousand Dollars ($25,000).  If
the Closing occurs, Purchaser hereby expressly waives, relinquishes and
releases any right or remedy available to it at law, in equity, under this
Agreement or otherwise to make a claim against Seller for damages that
Purchaser may incur, or to rescind this Agreement, as the result of any of
Seller’s representations and warranties being untrue, inaccurate or incorrect.

 

It
is understood and agreed, and Purchaser hereby acknowledges, that the Property
shall be purchased by Purchaser without recourse and without any further
representations or warranties from Seller, whether express or implied, except
as set forth in this Section 8 and/or in any document executed by
Seller and delivered to Purchaser at Closing and except with respect to any of
the Seller’s Contract Responsibilities.

 

As
used herein, “to Seller’s knowledge” shall refer
only to the actual (and not constructive) knowledge of Jason Haas and Douglas
Schwartz (collectively, the “Designated Representatives”)
and shall not be construed to refer to the knowledge of any other party or
individual or to impose or have imposed upon the Designated Representatives any
duty to investigate the matters to which such knowledge, or the absence
thereof, pertains, including, but not limited to, the contents of the files,
documents and materials made available to or disclosed 

 

15

 

to
Purchaser or the contents of files maintained by the Designated
Representatives.  There shall be no
personal liability on the part of the Designated Representatives arising out of
any of the Seller’s representations and warranties.  The Designated Representatives are the
persons at Seller most likely to have knowledge of the information contained
herein.

 

9.             Representations,
Warranties and Agreements of Purchaser.  Purchaser hereby represents, warrants and
agrees to and with Seller, as of the date hereof and as of the Closing Date,
that:

 

(a)                                  Purchaser is a
limited liability company duly organized, validly existing and in good standing
under the laws of the state of its organization;

 

(b)                                 Purchaser has
the full power, right and authority to execute, deliver and perform, and to
enter into and consummate all transactions contemplated by this Agreement;

 

(c)                                  Each individual
and/or entity signing this Agreement on behalf of Purchaser has been duly
authorized by Purchaser to execute and deliver this Agreement on behalf of
Purchaser, and Purchaser has duly authorized, executed and delivered this
Agreement;

 

(d)                                 This Agreement
and the other instruments and documents required to be delivered by Purchaser
hereunder, when duly executed and delivered by Purchaser, shall constitute
legal, valid and binding obligations of Purchaser, enforceable against
Purchaser in accordance with their terms;

 

(e)                                  The execution,
delivery and performance of this Agreement by Purchaser does not conflict with
the organizational documents of Purchaser, or with any law, statute or
regulation applicable to Purchaser;

 

(f)                                    With respect to
the litigation involving the Property that has been filed by HCM Solutions, Inc.
(“HCM”) against certain parties including
the prior owners of the Property and Seller, in its capacity as lender and
holder of the deed of trust, on which lender has since foreclosed (Case No. CIVDS1001489
in the Superior Court of the State of California for the County of San
Bernardino, “HCM Litigation”), Purchaser agrees
that, provided the Closing hereunder occurs, (A) Seller shall have no duties,
obligations or liabilities to Purchaser or any other party arising out of or in
connection with the HCM Litigation following Closing hereunder, and (B) that
Purchaser Indemnitors shall indemnify, defend and save Seller harmless of, from
and against any and all claims, loss, cost, damage, liability or expense,
arising out of or in connection with the HCM litigation, and Seller may call upon Purchaser to defend any
such claim or cause of action brought or asserted against Seller  arising
out of the HCM Litigation at the expense of Purchaser, with counsel designated
by such Seller in its sole discretion;

 

(g)                                 PURCHASER
ACKNOWLEDGES, REPRESENTS AND AGREES THAT IT HAS MADE ANY AND ALL INQUIRY, INVESTIGATION
AND ANLYSIS 

 

16

 

DESIRED BY PURCHASER WITH
RESPECT TO THE SUBJECT MATTER OF THE TRANSACTION CONTEMPLATED UNDER THIS
AGREEMENT, AND HAS MADE ITS OWN DECISION TO ENTER INTO THIS AGREEMENT.  EXCEPT FOR SELLER’S WARRANTIES AND
REPRESENTATIONS SET FORTH IN SECTION 8 OF THIS AGREEMENT AND/OR IN
ANY DOCUMENT EXECUTED BY SELLER AND DELIVERED TO PURCHASER AT CLOSING, (I) SELLER
MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE WHATSOEVER,
WHETHER EXPRESS OR IMPLIED, BY OPERATION OF LAW OR OTHERWISE, CONCERNING THE
PROPERTY, AND (II) ALL DOCUMENTATION, INFORMATION, ANALYSIS AND/OR
CORRESPONDENCE, IF ANY, WHICH IS OR MAY BE SOLD, TRANSFERRED,
ASSIGNED AND CONVEYED TO PURCHASER WITH RESPECT TO THE PROPERTY IS SOLD,
TRANSFERRED, ASSIGNED AND CONVEYED TO PURCHASER ON AN “AS IS, WHERE IS” BASIS,
WITH ALL FAULTS;

 

(h)                                 Purchaser (A) is
a sophisticated entity with respect to the purchase of the Property and the
assumption of the obligations thereunder, (B) is able to bear the economic
risk associated with the purchase of the Property and the assumption of the
obligations thereunder, (C) has adequate information to make an informed
decision regarding the purchase of the Property and the assumption of the
obligations thereunder, and (D) has such knowledge and experience, and has
made investments of a similar nature, so as to be aware of the risks and
uncertainties inherent in the purchase of rights and assumption of liabilities
of the type contemplated in this Agreement;

 

(i)                                     Neither
Purchaser nor any of its affiliates has dealt or negotiated with, or engaged on
its own behalf or for its benefit, any person or entity as an agent, broker,
dealer or otherwise who is entitled to a commission or fee arising from the
purchase of the Property by Purchaser pursuant to this Agreement;

 

(j)                                     No petition has
been filed by or against Purchaser under the Federal Bankruptcy Code or any
similar State or Federal Law;

 

(k)                                  To Purchaser’s
knowledge, neither Purchaser nor any person, group, entity or nation that
Purchaser is acting, directly or indirectly for, or on behalf of, is named by
any Executive Order (including the September 24, 2001, Executive Order
Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism) or the United States Treasury
Department as a terrorist, “Specially Designated National and Blocked Person,”
or is otherwise a banned or blocked person, group, entity, or nation pursuant
to any Law that is enforced or administered by the Office of Foreign Assets
Control, and Purchaser is not engaging in this transaction, directly or
indirectly, on behalf of, or instigating or facilitating this transaction,
directly or indirectly, on behalf of, any such person, group, entity or
nation.  Purchaser is not engaging in
this transaction, directly or indirectly, in violation of any Laws relating to
drug 

 

17

 

trafficking, money
laundering or predicate crimes to money laundering.  None of the funds of Purchaser have been or
will be derived from any unlawful activity with the result that the investment
of direct or indirect equity owners in Purchaser is prohibited by Law or that
the transaction or this Agreement is or will be in violation of Law.  Purchaser has and will continue to implement
procedures, and has consistently and will continue to consistently apply those
procedures, to ensure the foregoing representations and warranties remain true
and correct at all times prior to Closing; and

 

(l)                                     Purchaser
represents and warrants that none of Purchaser’s assets constitute “plan
assets” subject to Title I of the Employee Retirement Income Security Act
of 1974, as amended and/or Section 4975 of the Internal Revenue Code.

 

Purchaser’s
representations and warranties in this Section 9 shall survive the
Closing and not be merged herein.

 

10.          Purchaser’s
Remedies.  If, at the
Closing, (i) Seller defaults in its obligation to close pursuant to the
terms of this Agreement, (ii) any of Seller’s representations and
warranties set forth in Section 8 are untrue, inaccurate or
incorrect in any material respect, or (iii) Seller has failed to perform
any of its covenants, undertakings or obligations under Section 14
of this Agreement, and any such circumstance described in any of clauses (i), (ii) or
(iii) continues for three (3) Business Days after written notice from
Purchaser to Seller, which written notice shall detail such default, untruth or
failure, as applicable, then in each case Purchaser shall be entitled to elect,
as its sole and exclusive remedy, to either (a) terminate this Agreement
by written notice to Seller, in which event Escrow Agent shall return the
Earnest Money to Purchaser, Seller shall reimburse Purchaser for Purchaser’s
actual and verifiable out of pocket costs and expenses not to exceed Twenty-Five
Thousand Dollars ($25,000.00), and this Agreement shall become null and void
and neither Purchaser nor Seller shall have any further liabilities or
obligations hereunder except for obligations which expressly survive the
termination of this Agreement, or (b) waive the condition and proceed to
close the transaction without reduction in the Purchase Price, in which event
Seller shall have no liability or obligation to Purchaser with respect to such
condition, or (c) Purchaser may sue Seller for specific performance but in
no event shall Purchaser be entitled to any claim for damages in any specific
performance action, except that the foregoing shall not limit Purchaser’s right
to recover attorneys fees under Section 16.11 of this
Agreement.  Under no circumstances except
for Seller’s fraud shall Seller be responsible for any consequential,
incidental or punitive damages.  As a
condition precedent to Purchaser exercising any right it may have to bring an
action for specific performance hereunder, Purchaser must commence such an
action within thirty (30) days after Purchaser’s notice of Seller’s
default.  Purchaser agrees that its
failure to timely commence such an action for specific performance within such
thirty (30) day period shall be deemed a waiver by it of its right to commence
an action for specific performance. 
Purchaser agrees to not file a lis pendens against the Property unless
an action for specific performance is timely and properly brought hereunder.
Purchaser Indemnitors shall indemnify, defend with legal counsel acceptable to
Seller, and hold Seller and the Property harmless from and against any loss,
damage, liability, cost or expense arising out of any lis pendens filed against
the Property other than in strict compliance with the foregoing
requirements.  The foregoing shall not
limit Purchaser’s right to recover attorneys fees under Section 16.11
of this Agreement.

 

18

 

11.          Seller’s Remedies. If the
Closing fails to occur as a result of a “Material Purchaser Default” (defined
below), then Seller shall be entitled to elect, as its sole and exclusive
remedy, to either (a) extend the Closing Date for a period, not to exceed
ten (10) days, and receive the per diem increase in Purchase Price as set
forth in Section 7.1 above, or (b) terminate this Agreement by
written notice to Purchaser, promptly after which the Escrow Agent shall pay
the Earnest Money to Seller as liquidated damages, as Seller’s sole remedy at
law or in equity, and thereafter neither Purchaser nor Seller shall have any
further liabilities or obligations hereunder except for obligations which
expressly survive the termination of this Agreement.  The parties acknowledge that in the event of
any such Material Purchaser Default, it is impossible to compute exactly the
damages which would accrue to Seller. 
Taking these facts into account, the parties have agreed that the amount
of the deposit and potential earnings thereon are a reasonable estimate by them
of the amount of such damages.  The
payment of such amount as liquidated damages is not intended as a forfeiture or
penalty within the meaning of California Civil Code Sections 3275 or 3369, but
is intended to constitute liquidated damages to Seller pursuant to California
Civil Code Sections 1671, 1676 and 1677. 
Under no circumstances, except for Purchaser’s fraud, shall Purchaser be
responsible for any consequential, incidental or punitive damages (provided
that this sentence shall not be construed as limiting Seller’s rights to liquidated
damages as set forth in this Section 11).  As a condition precedent to Seller exercising
any right it may have under this Section 11 to extend the Closing
Date, Seller must give Purchaser written notice of such extension by 10 a.m.
Pacific Time on the Business Day preceding the Closing Date, and Seller agrees
that its failure to timely provide such written notice shall be deemed a waiver
by Seller of its right to extend the Closing Date under this Section 11.  The foregoing shall not limit Seller’s right
to recover attorneys fees under Section 16.11 of this
Agreement.  For purposes of this
Agreement, “Material Purchaser Default” shall mean either (i) Purchaser
defaults in its obligation to close on the acquisition of the Property pursuant
to the terms of this Agreement, or (ii) Purchaser defaults in the
performance of any of its material obligations under the terms of this
Agreement or any of Purchaser’s representations and warranties set forth in Section 9
are untrue, inaccurate or incorrect in any material respect, and such
default or circumstance continues for three (3) Business Days after
written notice from Seller to Purchaser (or such period of time in excess of
three (3) Business Days as is reasonably necessary given the nature of the
default or circumstance so long as Purchaser promptly commences to cure such
default or circumstance and diligently prosecutes same to completion, but in no
event later than the date which is ten (10) days after the then scheduled
Closing Date), which written notice shall detail such default, untruth or
failure, as applicable.

 

Seller’s
Initial:                                                    Purchaser’s
Initial:             

 

12.          WAIVER OF JURY
TRIAL.  TO THE FULLEST EXTENT LEGALLY
PERMISSIBLE, THE PARTIES HERETO WAIVE TRIAL BY JURY IN RESPECT OF ANY “DISPUTE”
AND ANY ACTION ON SUCH “DISPUTE”.  THIS
WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE AND EACH PARTY HEREBY
REPRESENTS THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY
PERSON OR ENTITY TO INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY
OR NULLIFY ITS EFFECT.  THIS PROVISION IS
A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS AGREEMENT.  EACH PARTY IS HEREBY AUTHORIZED TO FILE A
COPY OF THIS SECTION 12 N ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF
THIS WAIVER OF JURY TRIAL.  

 

19

 

PURCHASER REPRESENTS AND WARRANTS THAT IT HAS BEEN
REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING OF THIS WAIVER
BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY
INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD
THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.  “Dispute” means
any controversy, claim or dispute between or among the parties to this
Agreement, including any controversy, claim or dispute arising out of or
relating to (a) any related agreements or instruments, or (b) the
transaction contemplated herein or therein (including any claim based on or
arising from an alleged personal injury or business tort).

 

 

      Seller’s
Initial:                                                             Purchaser’s
Initial:                         

 

13.          Consent to
Judicial Reference.  If
and to the extent that Section 12 immediately above is determined
by a court of competent jurisdiction to be unenforceable, each of the parties
to this Agreement hereby consents and agrees that (a) any and all Disputes
shall be heard by a referee in accordance with the general reference provisions
of California Code of Civil Procedure Section 638, (b) such referee
shall hear and determine all of the issues in any such Dispute (whether of fact
or of law) and shall report a statement of decision, provided  that,
at the mutual agreement of the parties, any such issues pertaining to a “provisional
remedy” as defined in California Code of Civil Procedure Section 1281.8
shall be heard and determined by the court, and (c) pursuant to California
Code of Civil Procedure Section 644(a), judgment may be entered upon the
decision of such referee in the same manner as if the Dispute had been tried
directly by a court.  The parties shall
use their respective best efforts to agree upon and select such referee, provided
that such referee shall be a retired California state or federal
judge.  Each party hereto acknowledges
that this consent is a material inducement to enter into this Agreement and all
other agreements and instruments provided for herein, and that each will continue
to rely on this consent in their related future dealings.  The parties shall share the cost of the
referee and reference proceedings equally; provided that, the referee may award
attorneys’ fees and reimbursement of the referee and referenced proceeding fees
and costs to the prevailing party, whereupon all referee and reference
proceeding fees and charges will be payable by the non-prevailing party (as so
determined by the referee).  Each party
hereto further warrants and represents that it has reviewed this consent with
legal counsel of its own choosing, or has had an opportunity to do so, and that
it knowingly and voluntarily gives this consent having had the opportunity to
consult with legal counsel.  This consent
is irrevocable, meaning that it may not be modified either orally or in writing,
and this consent shall apply to any subsequent amendments, renewals,
supplements, or modifications to this Agreement or any other agreement or
document entered into between the parties in connection with this Agreement.  In the event of litigation, this Agreement
may be filed as evidence of either or both parties’ consent to have any and all
Disputes heard and determined by a referee under California Code of Civil
Procedure Section 638.

 

Seller’s
Initial:                            Purchaser’s
Initial:                            

 

14.          Covenants of
Seller.

 

14.1.        Contracts.  After the Effective Date and continuing until
the Closing, Seller will not enter into any new Contracts or terminate, renew
or make any modifications to any existing Contracts

 

20

 

 

without Purchaser’s prior written consent, which
consent may be withheld in Purchaser’s sole and absolute discretion, unless the
new Contract shall terminate prior to the Closing Date, then Purchaser shall
not have consent rights.  Until the date
which is ten (10) Business Days prior to the Closing, Purchaser shall have
the right to deliver notice to Seller specifying any Contracts which Purchaser
does not wish to assume (“Disapproved Contracts”)
pursuant to the Assignment attached as Exhibit F hereto.  Seller shall provide written notice of
termination to those applicable third parties with respect to such Disapproved
Contracts on or before the Closing, provided, however, Purchaser acknowledges
and agrees that the effective date of termination of the Disapproved Contracts
may occur after the Closing Date, and in such event, Purchaser shall assume
such Disapproved Contract.

 

14.2.        Leases.  After the Effective Date and continuing until
the Closing, Seller will not enter into any new Leases (“New Leases”)
or terminate, renew or make any modifications to any existing Lease without
Purchaser’s prior written consent, which consent may be withheld in Purchaser’s
sole and absolute discretion.

 

15.          Damage or
Condemnation.

 

15.1.        Material
Damage or Condemnation.  If, prior to
the Closing Date, the Property shall be destroyed or damaged, or Seller has
knowledge that the Property has become the subject of any proceedings,
judicial, administrative, or otherwise, for eminent domain or condemnation,
Seller shall promptly notify Purchaser thereof. 
If (a) the damage to the Property is not fully insured and the
value of the Property destroyed or damaged is greater than Two Hundred Thousand
Dollars ($200,000), (b) the value of the Property destroyed or damaged or
subject to taking (and/or the impact on the remainder of the Property) is
greater than One Million Dollars ($1,000,000.00) as reasonably determined by
Seller, or (c) there is an actual or threatened condemnation or eminent
domain action that would permit a tenant to terminate its lease as of the
Closing Date, or (d) any such damage or condemnation would cause a zoning
violation (whether or not grandfathered or waived) or provide insufficient
parking such that the Property cannot be operated in the same manner as of the
Effective Date (each of which matters in subsections (a), (b), (c) and
(d) shall be referred to herein as a “Material
Damage or Condemnation Event”), then Purchaser shall have the right
to terminate this Agreement by written notice to Seller no later than five (5) Business
Days after the giving of Seller’s notice, and upon such termination, the
Earnest Money shall be returned to Purchaser and neither Seller or Purchaser
shall thereafter have any obligation to each other, other than those that by
their terms expressly survive the termination of this Agreement.  If the Closing Date has been scheduled in
accordance with Section 7.1, then the Closing Date shall be
extended, if necessary, to provide Purchaser sufficient time to make such
election, and no increase in the Purchase Price shall be applicable to any such
extension.  In the alternative, Purchaser
may elect to complete the transaction on the terms set forth in this Agreement
and, in such event, Purchaser shall receive a credit at Closing in the amount
of the deductible for the applicable insurance coverage (unless Purchaser has a
right of reimbursement from any tenant pursuant to the Leases) and a full
assignment of all insurance proceeds payable by reason of such damage or
destruction or condemnation awards, as applicable, given as consideration for
the taking, less any costs, expenses and fees, including reasonable attorney’s
fees, expenses and disbursements, incurred by Seller in connection with the
negotiation and/or settlement of any casualty claim or condemnation award, and
any portion of such claim or award that is allocable to loss of use of the
Property prior to Closing and reasonable and actual costs 

 

21

 

incurred by Seller in stabilizing the Property
following a casualty.  The phrase “taking
by eminent domain” includes any notices of taking or commencement of
proceedings under eminent domain power, but excludes any claim for inverse
condemnation.  If Purchaser elects to
proceed with its purchase of the Property, Seller shall not compromise, settle
or adjust any claims to such proceeds or award without Purchaser’s prior
written consent.  Notwithstanding the
foregoing, damage to the Property which is not fully insured shall not be
deemed to be a Material Damage or Condemnation Event under subsection (a),
above, if Purchaser receives a credit at Closing in the amount of the cost of
restoration and repair of such uninsured damage or destruction as jointly
estimated by Purchaser and Seller in their reasonable discretion.

 

15.2.        Non-Material
Damage or Condemnation.  If
(a) the damage or destruction to the Property is fully insured and the
value of the Property destroyed or damaged is equal to or less than Two Hundred
Thousand Dollars ($200,000), (b) the value of the Property destroyed or
damaged or subject to taking (and/or the impact on the remainder of the
Property) is equal to or less than One Million Dollars ($1,000,000.00) as
reasonably determined by Seller, (c) the actual or threatened condemnation
or eminent domain action does not permit a tenant to terminate its lease as of
the Closing Date, or (d) any such damage or condemnation does not cause a
zoning violation (whether or not grandfathered or waived) or does not cause
insufficient parking such that the Property cannot be operated in the same
manner as of the Effective Date, Purchaser shall complete the transaction on
the terms set forth in this Agreement and, in such event, Purchaser shall
receive a credit at Closing in the amount of the deductible for the applicable
insurance coverage (unless Purchaser has a right of reimbursement from any
tenant pursuant to the Leases) and a full assignment of all insurance proceeds
payable by reason of such damage or destruction or condemnation awards, as applicable,
given as consideration for the taking, less any costs, expenses and fees,
including reasonable attorney’s fees, expenses and disbursements, incurred by
Seller in connection with the negotiation and/or settlement of any casualty
claim or condemnation award, and any portion of such claim or award that is
allocable to loss of use of the Property prior to Closing and reasonable and
actual costs incurred by Seller in stabilizing the Property following a
casualty.  Seller shall not compromise,
settle or adjust any claims to such proceeds or award without Purchaser’s prior
written consent.

 

16.          Miscellaneous.

 

16.1.        Notices.  All written notices or demands of any kind
that either party hereto may be required or may desire to serve on the other
party hereto in connection with this Agreement shall be personally served or
(as an alternative to personal service) sent by registered or certified mail
with return receipt requested, or by overnight express United States mail or by
a nationally recognized overnight courier service, or by facsimile or
electronic mail, provided the party follows up such notice by electronic mail
with delivery by first class United States mail or any of the other means set
forth in this Section 16.1. Any such notice or demand to be served by
registered or certified mail shall be deposited in the United States Mail with
postage thereon fully prepaid. If the party to be served is Seller, such
notices or demands shall be addressed to Seller as follows:

 

IBC
Industrial Properties LLC

c/o
Cohen Asset Management, Inc.

 

22

 

1900
Avenue of the Stars, 5th Floor

Los
Angeles, Ca 90067

Attention:
Mr. Jason Haas

Fax:  (310) 860-0599

Email:
jason@cohenasset.com

 

with
a copy to:

 

Raines Feldman LLP

9720 Wilshire Boulevard, Fifth Floor

Beverly Hills, California 90212

Attention: 
Andrew Raines, Esq.

Fax:  (310) 765-7331

Email:
araines@raineslaw.com

 

If
the party to be served is Purchaser, such notices or demands shall be addressed
to Purchaser as follows:

 

CT/BH Interchange LLC

c/o
CT Realty Investors

65
Enterprise, Suite 150

Aliso
Viejo, Ca 92656

Attention:
Mr. Carter Ewing

Fax:  (949) 330 5771

Email:
cewing@ctrinvestors.com

 

with
a copy to:

 

CT
Realty Investors

65
Enterprise, Suite 150

Aliso
Viejo, Ca 92656

Attention:
Mr. Michael Traynham

Fax:  (949) 330 5771

Email:
mtraynham@ctrinvestors.com

 

and
to:

 

Behringer Harvard Funds

15601 Dallas Parkway, Suite 600

Addison,
Texas 75001-6026

Attention:
Mr. James D. Fant

Fax No.: 214-655-1610

E-mail:  jfant@behringerharvard.com

 

and to:

 

Behringer Harvard Funds

 

23

 

 

15601 Dallas Parkway, Suite 600

Addison, Texas 75001-6026

Attention:  General Counsel

Fax No.: 214-655-1610

E-mail:  trenolds@behringerharvard.com

 

and to:

 

Haynes and Boone, LLP

2323 Victory Avenue, Suite 700

Dallas, Texas 
75219

Attention: 
Mr. Richard K. Martin

Fax No.: (214) 200-0740

E-mail: 
rick.martin@haynesboone.com

 

Service
of any such notice or demand made in accordance with this Section 16.1
shall be deemed given on the date of actual receipt or refusal to accept
delivery, provided, however, that any notice given after 5:00 p.m.
(Pacific time) on any business day shall be deemed delivered on the next
business day. Any party hereto may from time to time, by notice in writing
served upon the other party hereto as aforesaid, designate a different mailing
address to which it or a different person to whose attention all such notices
or demands are thereafter to be addressed. 
Any notice given by an attorney for a party shall be effective for all
purposes.

 

16.2.        Waivers.  Except as expressly provided herein to the
contrary, no delay or omission by either party hereto in exercising any right
or power arising from any default by the other party hereto shall be construed
as a waiver of such default or as an acquiescence therein, nor shall any single
or partial exercise thereof preclude any further exercise thereof or the
exercise of any other right or power arising from any default by the other
party hereto.  Except as expressly
provided herein to the contrary, no waiver of any breach of any of the
covenants or conditions contained in this Agreement shall be construed to be a
waiver of or acquiescence in or consent to any previous or subsequent breach of
the same or of any other condition of covenant.

 

16.3.        No
Third Party Beneficiary.  This
Agreement is made for the sole benefit of Seller and Purchaser and their
respective successors and permitted assigns, and no other person or persons
shall have any rights or remedies under or by reason of this Agreement or any
right to the exercise of any right or power of either party hereto or arising
from any default by either party hereto.

 

16.4.        No
Partnership.  This Agreement is not
intended to constitute, and shall not be construed to establish, a partnership
or joint venture between Seller and Purchaser.

 

16.5.        Time
of Essence.  Time is hereby declared
and agreed by the parties hereto to be of the essence of this Agreement and
every part hereof.

 

16.6.        Context.  When the context and construction so require,
all words used in the singular herein shall be deemed to have been used in the
plural and the masculine shall include the feminine and the neuter and vice
versa.

 

24

 

16.7.        Entire
Agreement.  This Agreement
constitutes the entire understanding between the parties hereto with respect to
the subject matter hereof, superseding all prior written or oral
understandings, and may not be terminated, modified or amended in any way except
by a written agreement signed by each of the parties hereto.

 

16.8.        Governing
Law.  This Agreement is to be
governed by and construed in accordance with the laws of the State of
California. In any action brought under or arising out of this Agreement, the
parties hereto hereby consent to the jurisdiction of any competent court within
the State of California and hereby consent to service of process by any means
authorized by California law.

 

16.9.        Counterparts;
Electronic Signatures.  This
Agreement may be executed in two (2) or more counterparts, each of which
shall be deemed an original but all of which together shall constitute but one
and the same document.  Signatures to
this Agreement transmitted by facsimile or by electronic transmission shall be
valid and effective to bind the party so signing.  Each party agrees to promptly deliver an
execution original to this Agreement with its actual signature to the other
party, but a failure to do so shall not affect the enforceability of this
Agreement, it being expressly agreed that each party to this Agreement shall be
bound by its own telecopied or scanned signature and shall accept the
telecopied or scanned signature of the other party to this Agreement.

 

16.10.      Successors
and Assigns.  This Agreement shall
not be assigned by Seller or Purchaser without the prior written consent of the
other party; provided, however, Purchaser shall have the right upon written
notice to Seller to assign its right to purchase the Property to any entity
owned, controlling, controlled by, or under common control with Purchaser or
Behringer Harvard Opportunity REIT II, Inc., a Maryland corporation,
(collectively, an “Affiliate”).  In the event Seller consents to an assignment
by Purchaser or Purchaser assigns its interest hereunder to an Affiliate, such
assignee shall assume all obligations of Purchaser as set forth herein and
Purchaser shall not be released from such obligations.  This Agreement shall be binding upon and
shall inure to the benefit of Seller and Purchaser and their respective
successors and permitted assigns. 
Without limiting the foregoing, Seller Parties shall not assign or
pledge, or attempt to assign or pledge, in whole or in part, any of its rights
or remedies with respect to the indemnification of the Assumed Liabilities, and
any such assignment or pledge or attempted assignment or pledge with respect to
the indemnification of the Assumed Liabilities shall be null and void and of no
force or effect.

 

16.11.      Attorneys’
Fees.  If any action, suit, arbitration or other proceeding is
instituted to remedy, prevent or obtain relief from a default in the
performance by any party to this Agreement of its obligations under this
Agreement, or in the event of any dispute between the parties relating to this
Agreement or the Property, the prevailing party shall be entitled to recover
all of such party’s reasonable attorneys’ fees incurred in connection with each
and every such action, suit, arbitration or other proceeding, including any and
all appeals or petitions thereof.

 

16.12.      Further
Actions and Additional Documentation. 
In furtherance of the provisions of this Agreement, Purchaser and Seller
shall take or cause to be taken such reasonable further actions and shall
execute, deliver and file, or cause to be executed, delivered and filed, such
further reasonable documents and instruments as may be reasonably necessary in
order to fully effectuate the purposes, terms and conditions of this Agreement,
all of which shall be consistent 

 

25

 

with the terms of this Agreement.  Any and all such documents and instruments
shall be prepared by, or at the direction of, Purchaser, at Purchaser’s sole
cost and expense, and shall be in form and substance acceptable to Seller.  This paragraph shall survive closing.

 

16.13.      Commissions.  Purchaser and Seller represent to each other
that they have dealt with no broker, agent or finder in connection with this
transaction.  Each party hereto agrees to
indemnify, defend and hold harmless the other party from and against any and
all claims, losses, damages, costs and expenses of any kind, or character
(including reasonable attorneys’ fees) arising out of or resulting from any
agreement, arrangement or understanding alleged to have been made by such party
with any broker, agent or finder in connection with this Agreement, the sale of
the Property, or the transactions contemplated hereby.

 

16.14.      Confidentiality.  Purchaser and Seller hereby agree that the
Confidentiality, Non-Disclosure and Due Diligence Agreement dated as of August 10,
2010 (“Confidentiality Agreement”), between
Seller, as “Disclosing Party” and Purchaser, as “Recipient” is in full force
and effect, is integrated into this Agreement, and shall survive the Closing of
the transaction contemplated in this Agreement for such time as set forth in
the Confidentiality Agreement.  No public
announcement, press release or other similar public disclosure of the
acquisition of the Property or the terms of this Agreement may be made by
Purchaser, Seller or their respective affiliates unless same is approved in
advance in writing by Purchaser and Seller; provided, however, that,
notwithstanding the terms of the Confidentiality Agreement, if the transaction
contemplated by this Agreement closes, (a) either party and its respective
affiliates may issue a press release regarding the acquisition and disposition
of the Property, without using the other party’s name and without including the
terms of this Agreement, (b) either party and its direct and indirect
owners shall have the right, without obtaining the consent of the other party,
to make such disclosures as may, in the reasonable judgment of such party’s
counsel, be required by applicable law, and (c) Purchaser and Seller shall
have the right to disclose the Purchase Price at closing as required by
applicable law in connection with calculation and payment of applicable
transfer taxes.  Furthermore, it is
agreed that the foregoing provisions of this Section16.14 shall not prohibit
Purchaser or Seller and their owners from disclosing such information to the
accountants, attorneys, consultants, lenders and vendors of such party, and to
the title company and escrow closing agents for this transaction, as is
necessary to allow such third parties to provide services, funds or goods to
Purchaser, Seller and their owners, as applicable. Seller and Purchaser
acknowledge and agree that any unauthorized disclosure in violation of this
Section 16.14 may cause the other party (“Non-Disclosing
Party”) irreparable harm, the amount of which may be difficult to
ascertain and, therefore, agrees that such Non-Disclosing Party shall have the
right to obtain an order restraining any further unauthorized use or
disclosure.  Such right shall be in
addition to remedies otherwise available to the Non-Disclosing Party at law or
in equity.  The obligations of Seller and
Purchaser under this Section 16.14 shall survive the Closing.

 

16.15.      Definition
of Business Day.  For purposes of
this Agreement, “Business Day” or “business day” means any day other than Saturday, Sunday or a
holiday observed by national or federally chartered banks.  Unless the context otherwise requires, all
periods terminating on a given day, period of days, or date shall terminate at
5:00 p.m. (California time) on such date or dates, and references to “days” shall refer to calendar days except if such references
are to 

 

26

 

Business Days. 
Any event specified to occur on a non-Business Day shall be extended automatically
to the end of the first Business Day thereafter.

 

16.16.      No
Derivative Liability. 
Notwithstanding anything set forth in this Agreement or any other
document executed or delivered in connection herewith or otherwise, no direct
or indirect (through tiered ownership or otherwise) advisor, trustee, director,
officer, employee, beneficiary, shareholder, participant, partner, member,
owner, representative or agent of Purchaser shall have any personal liability,
directly or indirectly, under or in connection with this Agreement or any other
document executed and delivered in connection herewith or any amendment or
amendments to any of the foregoing made at any time or times, heretofore or
hereafter, and Seller and its successors and assigns and, without limitation,
all other persons and entities, shall look solely to Purchaser Indemnitors’
assets for the payment of any indemnification claims related to the Assumed
Liabilities, and each other party, on behalf of itself and its successors and
assigns, hereby waives any and all such personal liability.

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS.

 

27

 

IN
WITNESS WHEREOF, Seller and Purchaser have caused this Agreement to be executed
by their respective officers thereunto duly authorized as of November 16,
2010.

 

 

	
   

  	
  SELLER:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  IBC
  Industrial Properties LLC,

  	
   

  
	
   

  	
  a
  Delaware limited liability company

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Interchange
  Industrial Capital LLC,

  	
   

  
	
   

  	
   

  	
  a
  Delaware limited liability company,

  	
   

  
	
   

  	
   

  	
  its
  Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Interchange
  Capital Management LLC,

  	
   

  
	
   

  	
   

  	
   

  	
  a
  Delaware limited liability company,

  	
   

  
	
   

  	
   

  	
   

  	
  its
  Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Cohen
  Holdings LLC,

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  a
  Delaware limited liability company,

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  its
  Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Bradley S. Cohen

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name:
  Bradley S. Cohen

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Its:
  Managing Member

  	
   

  
							

 

	
   

  	
  PURCHASER:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CT/BH
  Interchange LLC,

  	
   

  
	
   

  	
  a
  Delaware limited liability company

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  CT
  Interchange LLC,

  	
   

  
	
   

  	
  a
  Delaware limited liability company,

  	
   

  
	
   

  	
  its
  Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  CT
  California Fund VI, LLC,

  	
   

  
	
   

  	
   

  	
   

  	
  a
  California limited liability company,

  	
   

  
	
   

  	
   

  	
   

  	
  its
  sole member

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  CT Fund Manager VI, LLC,

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  a California limited liability company,

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  its Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/
  Robert M. Campbell

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Robert
  M. Campbell

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Manager

  	
   

  

 

28

 

SCHEDULE OF EXHIBITS

 

	
  A.

  	
  Legal
  Description

  
	
   

  	
   

  
	
  B.

  	
  List
  of Due Diligence Materials

  
	
   

  	
   

  
	
  C.

  	
  Form of
  Grant Deed

  
	
   

  	
   

  
	
  D.

  	
  Form of
  Bill of Sale

  
	
   

  	
   

  
	
  E.

  	
  Form of
  Assignment of Leases

  
	
   

  	
   

  
	
  F.

  	
  Form of
  Assignment of Intangible Property

  
	
   

  	
   

  
	
  H.

  	
  Form of
  Notice to Tenants

  
	
   

  	
   

  
	
  I.

  	
  FIRPTA
  Certificate

  
	
   

  	
   

  
	
  J.

  	
  Form of
  Owner’s Title Policy

  
	
   

  	
   

  
	
  K.

  	
  Notices
  of Litigation, Contract Defaults and Governmental Violations

  
	
   

  	
   

  
	
  L.

  	
  List
  of Tenants

  
	
   

  	
   

  
	
  M.

  	
  Form of
  Owner’s Affidavit

  

 

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

[To be attached]

 

 

EXHIBIT B

 

LIST OF DUE DILIGENCE MATERIALS

 

[To be attached]

 

 

Exhibit C

 

FORM OF GRANT DEED

 

RECORDING REQUESTED BY

AND WHEN RECORDED RETURN TO:

 

 

 

Attention:

 

MAIL TAX STATEMENTS TO:

 

 

 

 

SPACE ABOVE THIS LINE RESERVED FOR RECORDER’S USE

 

GRANT DEED

 

IBC Industrial Properties LLC, a Delaware
limited liability company (“Grantor”),
for and in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00) and
other good and valuable consideration paid in hand to Grantor by CT/BH Interchange LLC, a Delaware limited liability company (“Grantee”), the receipt and sufficiency of which are
hereby acknowledged, hereby GRANTS to Grantee that certain real property
located in the City and County of San Bernardino, California and more
particularly described in Exhibit A attached hereto and
incorporated herein by this reference, together with all buildings,
improvements and fixtures located thereon and owned by Grantor as of the date
hereof and all right, title and interest, if any, that Grantor may have in and
to all rights, privileges and appurtenances pertaining thereto including all of
Grantor’s right, title and interest, if any, in and to all rights-of-way, open
or proposed streets, alleys, easements, strips or gores of land adjacent
thereto (herein collectively called the “Real
Property”).

 

This conveyance is made by
Grantor and accepted by Grantee subject to all covenants, conditions,
restrictions, and other matters of record in the office of the County Recorder
of San Bernardino, and all unpaid taxes and assessments not now due and
payable, known or unknown (collectively, the “Permitted Exceptions”).

 

TO HAVE AND TO HOLD the Real
Property together with all improvements, if any, located thereon all and
singular the rights and appurtenances thereto in anywise belonging, subject to
the Permitted Exceptions, unto Grantee, its legal representatives, successors
and assigns forever.

 

 [Remainder
of page intentionally blank]

 

 

IN WITNESS WHEREOF, this Deed has been executed
by Grantor as of the
           day of
                    ,
2010 to be effective as of the                 
day of
                    ,
2010.

 

IBC Industrial Properties LLC,

a Delaware limited liability company

 

	
  By:

  	
  Interchange Industrial Capital
  LLC,

  	
   

  
	
   

  	
  a Delaware limited liability company,

  	
   

  
	
   

  	
  its Manager

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Interchange Capital Management
  LLC,

  	
   

  
	
   

  	
   

  	
  a Delaware limited liability company,

  	
   

  
	
   

  	
   

  	
  its Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Cohen Holdings LLC,

  	
   

  
	
   

  	
   

  	
   

  	
  a Delaware limited liability company,

  	
   

  
	
   

  	
   

  	
   

  	
  its Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Bradley S. Cohen

  	
   

  
	
   

  	
   

  	
   

  	
  Its: Managing Member

  	
   

  

 

 

State
of

 

County
of

 

On
                                                
before me,
                                                
, a Notary Public, personally appeared 
        
           
         
         
            who proved
to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity
upon behalf of which the person(s) acted, executed the instrument.

 

I
certify under PENALTY OF PERJURY under the laws of the State of
                          
that the foregoing paragraph is true and correct.

 

WITNESS
my hand and official seal.

 

	
   

  	
   

  	
  (SEAL)

  

 

 

EXHIBIT A

 

LEGAL DESCRIPTION

 

[To be attached]

 

1

 

EXHIBIT D

 

FORM OF BILL OF SALE

 

THIS
BILL OF SALE (this “Bill of Sale”),
is made as of November     , 2010 by and between IBC
Industrial Properties LLC, a Delaware limited liability company (“Seller”), and
[                                ],
a                 
limited liability company (“Purchaser”).

 

W I T N E S S E T H:

 

WHEREAS,
pursuant to the terms of that certain Purchase and Sale Agreement, dated as of October       ,
2010, by and between Seller and Purchaser (as the same may be amended or
modified, the “Sale Agreement”),
Seller agreed to sell to Purchaser, inter alia,
certain real property, the improvements located thereon and certain rights
appurtenant thereto, all as more particularly described in the Sale Agreement
(collectively, the “Real Property”).  Initially capitalized terms not otherwise
defined herein shall have the respective meanings ascribed to such terms in the
Sale Agreement; and

 

WHEREAS,
by deed of even date herewith, Seller conveyed the Real Property to Purchaser
and by assignment of even date herewith Seller assigned to Purchaser, Seller’s
rights under certain leases relating to the Real Property, as more particularly
described in such assignment (collectively, the “Leases”);
and

 

WHEREAS,
in connection with the above described conveyance Seller desires to sell,
transfer and convey to Purchaser certain items of tangible personal property as
hereinafter described.

 

NOW,
THEREFORE, in consideration of the receipt of TEN AND NO/100 DOLLARS ($10.00)
and other good and valuable consideration paid in hand by Purchaser to Seller,
the receipt and sufficiency of which are hereby acknowledged, Seller has
GRANTED, CONVEYED, SOLD, TRANSFERRED, SET OVER and DELIVERED and by these
presents does hereby GRANT, SELL, TRANSFER, SET OVER and DELIVER to Purchaser,
its legal representatives, successors and assigns, and Purchaser hereby accepts
all right, title and interest in and to (a) all tangible personal property
owned by Seller that is located on the Real Property and used in the ownership,
operation and maintenance of the Real Property, and (b) all books, records
and files of Seller relating to the Real Property and the Leases, but
specifically excluding from the items described in clauses (a) and (b) any
Confidential Materials (as defined in the Confidentiality Agreement defined in
the Sale Agreement) and any computer software that is licensed to Seller
(herein collectively called the “Personal Property”).

 

This
Bill of Sale is made without any covenant, warranty or representation by, or
recourse against, Seller, and is made with certain indemnification obligations
of Purchaser, as more expressly set forth in the Sale Agreement and the other
closing documents.

 

This
Bill of Sale may be executed in counterparts, each of which shall be an
original and all of which counterparts taken together shall constitute one and
the same agreement.

 

If
any term or provision of this Bill of Sale or the application thereof to any
persons or circumstances shall, to any extent, be invalid or unenforceable, the
remainder of this Bill of Sale or the application of such term or provision to
persons or circumstances other than those as to which it is held invalid or
unenforceable shall not be affected thereby, and each term and provision of
this Bill of Sale shall be valid and enforced to the fullest extent permitted
by law.

 

1

 

IN
WITNESS WHEREOF, the undersigned have executed this Bill of Sale to
be effective as of the date first set forth hereinabove.

 

	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  IBC
  Industrial Properties LLC,

  
	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  ACCEPTED:

  	
   

  
	
   

  	
   

  
	
  PURCHASER:

  	
   

  
	
   

  	
   

  
	
  [                                          ]

  	
   

  
	
  a
                      
  limited liability company

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

2

 

EXHIBIT E

 

FORM OF ASSIGNMENT OF LEASES

 

THIS
ASSIGNMENT OF LEASES (this “Assignment”),
is made as of November      , 2010, by and
between IBC Industrial Properties LLC, a Delaware limited liability company (“Assignor”), and
[                                    ],
a
                
limited liability company (“Assignee”).

 

W I T N E S S E T H:

 

WHEREAS,
pursuant to the terms of that certain Purchase and Sale Agreement, dated as of October     ,
2010, by and between Assignor and Assignee (as the same may be amended or
modified, the “Sale Agreement”),
Assignor agreed to sell to Assignee, inter alia,
certain real property, the improvements located thereon and certain rights
appurtenant thereto, all as more particularly described in the Sale Agreement
(collectively, the “Real Property”).  Initially capitalized terms not otherwise
defined herein shall have the respective meanings ascribed to such terms in the
Sale Agreement; and

 

WHEREAS,
the Sale Agreement provides, inter alia,
that Assignor shall assign to Assignee certain leases and Assignee shall assume
all of the obligations of Assignor under such leases, and that Assignor and
Assignee shall enter into this Assignment.

 

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

 

1.             Assignment.  Assignor hereby assigns, sets over and
transfers to Assignee all of Assignor’s right, title and interest in, to and
under the space leases (“Leases”)
with the tenants of the Real Property identified on Exhibit A
attached hereto and incorporated herein by this reference and Assignee hereby
accepts the foregoing assignment of the Leases. 
Reference is hereby made to Section 5.4 of the Sale
Agreement pursuant to which Assignee has agreed to assume and indemnify
Assignor for certain Assumed Liabilities as and to the extent more fully set
forth therein.

 

2.             Miscellaneous.  This Assignment and the obligations of the
parties hereunder shall survive the closing of the transaction referred to in
the Sale Agreement and shall not be merged therein, shall be binding upon and
inure to the benefit of the parties hereto, their respective legal
representatives, successors and assigns, shall be governed by and construed in
accordance with the laws of the State in which the Property is located
applicable to agreements made and to be wholly performed within said State and
may not be modified or amended in any manner other than by a written agreement
signed by the party to be charged therewith.

 

4.             Severability.  If any term or provision of this Assignment
or the application thereof to any persons or circumstances shall, to any
extent, be invalid or unenforceable, the remainder of this Assignment or the
application of such term or provision to persons or circumstances other than
those as to which it is held invalid or unenforceable shall not be affected
thereby, and each term and provision of this Assignment shall be valid and
enforced to the fullest extent permitted by law.

 

5.             Counterparts.  This Assignment may be executed in
counterparts, each of which shall be an original and all of which counterparts
taken together shall constitute one and the same agreement.

 

[Remainder of page intentionally blank]

 

 

IN WITNESS WHEREOF, the undersigned have
executed this Assignment to be effective as of the date first set forth
hereinabove.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  IBC
  Industrial Properties LLC,

  
	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  [                                                    ],

  
	
   

  	
  a
                    
  limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

EXHIBIT F

 

FORM OF ASSIGNMENT OF INTANGIBLE PROPERTY

 

THIS
ASSIGNMENT OF INTANGIBLE PROPERTY (this “Assignment”),
is made as of November       , 2010, by and
between IBC Industrial Properties LLC, a Delaware limited liability company (“Assignor”), and [                                  ],
a                 
limited liability company (“Assignee”).

 

W I T N E S S E T H:

 

WHEREAS,
pursuant to the terms of that certain Purchase and Sale Agreement, dated as of November     ,
2010, by and between Assignor and Assignee (as the same may be amended or
modified, the “Sale Agreement”),
Assignor agreed to sell to Assignee, inter alia,
certain real property, the improvements located thereon and certain rights
appurtenant thereto, all as more particularly described in the Sale Agreement
(collectively, the “Real Property”).  Initially capitalized terms not otherwise
defined herein shall have the respective meanings ascribed to such terms in the
Sale Agreement; and

 

WHEREAS,
the Sale Agreement provides, inter alia,
that Assignor shall assign to Assignee rights to certain intangible property
and that Assignee shall assume all of the obligations of Assignor under such
intangible property and that Assignor and Assignee shall enter into this
Assignment.

 

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

 

1.             Assignment.  Assignor hereby assigns, sets over and
transfers to Assignee all of Assignor’s right, title and interest in, to and
under the following, if and only to the extent the same may be assigned or
quitclaimed by Assignor without expense to Assignor:

 

(a)                                  any and all
service, supply, maintenance, utility and commission agreements, all equipment
leases, and all other contracts, subcontracts and agreements relating to the
Real Property and the Personal Property that are described in Exhibit A attached hereto and
incorporated herein by this reference (herein collectively called the “Contracts”); and

 

(b)                                 to the extent
that the same are in effect as of the date hereof, any licenses, permits and
other written authorizations necessary for the use, operation or ownership of
the Real Property (herein collectively called the “Licenses
and Permits”); and

 

(c)                                  any guaranties
and warranties in effect with respect to any portion of the Real Property or
the Personal Property as of the date hereof;

 

(d)                               to the extent
assignable, the benefit of any environmental indemnity that may have survived
the foreclosure of Assignor’s deed of trust on the Real Property (Case No. CIVDS1001489)
contained in such deed of trust and/or any separate indemnity agreement
executed by the trustor under the deed of trust in connection with the loan
secured thereby, but expressly excluding any and all obligations or liabilities
of the lender or any other person thereunder; and

 

(e)                                  the rights of
Assignor (if any) to the name “Interchange Business Center” (it being
acknowledged by Assignee that Assignor does not have exclusive rights (and in
fact may 

 

 

have no rights) to use such name and Assignor has not registered the
same in any manner).

 

Assignee
hereby accepts the foregoing assignment of the interests described in this Section 1
(collectively, the “Intangible Property”).

 

2.             Warranties and Indemnification.  This Assignment is made without any covenant,
warranty or representation by, or recourse against, Assignor as more expressly
set forth in the Sale Agreement and the other closing documents.  Reference is hereby made to Section 5.4
of the Sale Agreement pursuant to which Assignee has agreed to assume and
indemnify Assignor for certain Assumed Liabilities as and to the extent more
fully set forth therein.

 

3.             Miscellaneous.  This Assignment and the obligations of the
parties hereunder shall survive the closing of the transaction referred to in
the Sale Agreement and shall not be merged therein, shall be binding upon and
inure to the benefit of the parties hereto, their respective legal
representatives, successors and assigns, shall be governed by and construed in
accordance with the laws of the State in which the Property is located
applicable to agreements made and to be wholly performed within said State and
may not be modified or amended in any manner other than by a written agreement
signed by the party to be charged therewith.

 

5.             Severability.  If any term or provision of this Assignment
or the application thereof to any persons or circumstances shall, to any
extent, be invalid or unenforceable, the remainder of this Assignment or the
application of such term or provision to persons or circumstances other than
those as to which it is held invalid or unenforceable shall not be affected
thereby, and each term and provision of this Assignment shall be valid and
enforced to the fullest extent permitted by law.

 

6.             Counterparts.  This Assignment may be executed in
counterparts, each of which shall be an original and all of which counterparts
taken together shall constitute one and the same agreement.

 

[REMAINDER OF PAGE INTENTIONALLY BLANK]

 

 

IN WITNESS WHEREOF, the undersigned have
executed this Assignment to be effective as of the date first set forth
hereinabove.

 

	
   

  	
  ASSIGNOR:

  
	
   

  	
   

  
	
   

  	
  IBC
  Industrial Properties LLC,

  
	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE:

  
	
   

  	
   

  
	
   

  	
  [                                    ]

  
	
   

  	
  a
                    
  limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  	
   

  

 

 

EXHIBIT H

 

FORM OF NOTICE TO TENANTS

 

, 2010

 

	
  Re:

  	
  Notice
  of Change of Ownership of

  
	
   

  	
  Interchange
  Business Center

  
	
   

  	
  [Address]

  
	
   

  	
  San
  Bernardino, California

  

 

Ladies
and Gentlemen:

 

You
are hereby notified as follows:

 

That
as of the date hereof, IBC Industrial Properties LLC has transferred,
sold, assigned, and conveyed all of its interest in and to the above-described
property, (the “Property”) to
[                                  ]
(the “New Owner”).

 

Future
notices and rental payments with respect to your leased premises at the
Property should be made to the New Owner in accordance with your lease terms at
the following address:

 

 

 

 

Sincerely,

 

 

EXHIBIT I

 

FORM OF FIRPTA AFFIDAVIT

 

Section 1445
of the Internal Revenue Code (the “Code”)
provides that a transferee of a United States real property interest must withhold
tax if the transferor is a foreign person. 
For U.S. tax purposes
(including Section 1445), the owner of a disregarded entity (which has
legal title to a U.S. real property interest under local law) will be the
transferor of the property and not the disregarded entity.  To inform the transferee
that withholding of tax is not required upon the disposition of a United States
real property interest by IBC Industrial Properties LLC (“IBC”),
the undersigned hereby certifies the following on behalf of IBC:

 

1.             IBC is not a foreign corporation,
foreign partnership, foreign trust, or foreign estate (as those terms are
defined in the Internal Revenue Code and Income Tax Regulations); and

 

2.             IBC is not a disregarded entity as
defined in §1.1445-2(b)(2)(iii) of the Code; and

 

3.             IBC’s U.S. employer taxpayer
identification number is
[                          ];
and

 

4.             IBC’s office address is as follows:
[                                        ]

 

IBC
understands that this certification may be disclosed to the Internal Revenue
Service by transferee and that any false statement contained herein could be
punished by fine, imprisonment, or both.

 

Under
the penalties of perjury, I declare that I have examined this
certification and to the best of my knowledge and belief it is true, correct
and complete, and I further declare that I have authority to sign this document
on behalf of IBC.

 

Dated:  , 2010

 

IBC
Industrial Properties LLC, a Delaware limited liability company

 

By:          

Name:     

Title:

 

 

EXHIBIT J

 

PRO FORMA OWNER’S TITLE POLICY

 

 

EXHIBIT K

 

NOTICES OF LITIGATION, CONTRACT DEFAULTS

AND GOVERNMENTAL VIOLATIONS

 

Litigation:

 

1.   HCM
Litigation

 

Contract
Defaults:

 

1.   None

 

Governmental
Violations:

 

1.   None

 

 

EXHIBIT L

 

LIST OF TENANTS

 

1.   FTDI West, Inc.

2.   GENCO I, Inc.

 

 

EXHIBIT M

 

FORM OF OWNER’S AFFIDAVIT

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