Document:

ex10-49.htm

Exhibit 10.49

 

 

STANDARD FORM

INDUSTRIAL BUILDING LEASE

(SINGLE-TENANT)

 

1.           BASIC TERMS.  This Section 1 contains the Basic Terms of this lease (this “Lease”) between Landlord and Tenant, named below.  Other Sections of the Lease referred to in this Section 1 explain and define the Basic Terms and are to be read in conjunction with the Basic Terms.

 

	
  

	
1.1.

	
Effective Date of Lease:  March 14, 2008

 

	
  

	
1.2.

	
Landlord:  FR York Property Holding, LP, a Delaware limited partnership

 

	
  

	
1.3.

	
Tenant:  United Natural Foods, Inc.

 

	
  

	
1.4.

	
Premises:  A building commonly known as 225 Cross Farm Lane, York, Pennsylvania, and containing approximately 675,000 rentable square feet, as legally described on Exhibit A attached hereto.

 

	
  

	
1.5.

	
Lease Term: Twelve (12) years (“Term”) commencing June 1, 2008 (“Commencement Date”) and ending, subject to Section 2.3 below, on May 31, 2020 (“Expiration Date”).

 

	
  

	
1.6.

	
Permitted Uses:  (See Section 4.1) Warehousing, distribution and any other use not prohibited by applicable zoning laws or regulations and approved in writing by Landlord, which shall not be unreasonably withheld, conditioned or delayed

 

	
  

	
1.7.

	
Tenant’s Guarantor:  None 

 

	
  

	
1.8.

	
Brokers:  (See Section 23; if none, so state):  (A) Tenant’s Broker:  NAI Brannen Goddard ; and (B) Landlord’s Broker:  CB Richard Ellis

 

	
  

	
1.9.

	
Security/Damage Deposit:  None

 

	
  

	
1.10.

	
Exhibits to Lease:  The following exhibits are attached to and made a part of this Lease. (If none, so state):  A (legal description); B (Tenant Operations Inquiry Form); C (Tenant Improvements), D (Confirmation of Commencement Date); E (Broom Clean Condition and Repair Requirements); Exhibit F (Signage Plan); Addendum 1 (Renewal Option); and Addendum 2 (Purchase Option)

 

2.           LEASE OF PREMISES; RENT.

 

2.1.           Lease of Premises for Lease Term.  Landlord hereby leases the Premises to Tenant, and Tenant hereby rents the Premises from Landlord, for the Term and subject to the conditions of this Lease.

 

2.2.           Types of Rental Payments. Tenant shall pay net base rent to Landlord in monthly installments, in advance, on the first day of each and every calendar month during the Term of this Lease (the “Base Rent”) in the amounts and for the periods as set forth below:

 

Rental Payments

 

	
Lease Period

	
Annual Base Rent

	
Monthly Base Rent

	  	  	  
	
____, 2008 – May 31, 2008

	
$0.00

	
$0.00

	 	 	 
	
June 1, 2008 – May 31, 2009

	
$2,558,250.00

	
$231,187.50

	 	 	 
	
June 1, 2009 – May 31, 2010

	
$2,619,000.00

	
$218,250.00

	 	 	 
	
June 1, 2010 – May 31, 2011

	
$2,666,250.00

	
$222,187.50

 

  

  

  

  

 

	
June 1, 2011 – May 31, 2012

	
$2,754,000.00

	
$229,500.00

	 	 	 
	
June 1, 2012 – May 31, 2013

	
$2,821,500.00

	
$235,125.00

	 	 	 
	
June 1, 2013 – May 31, 2014

	
$2,889,000.00

	
$240,750.00

	 	 	 
	
June 1, 2014 – May 31, 2015

	
$2,963,250.00

	
$246,937.50

	 	 	 
	
June 1, 2015 – May 31, 2016

	
$3,037,500.00

	
$253,125.00

	 	 	 
	
June 1, 2016 – May 31, 2017

	
$3,111,750.00

	
$259,312.50

	 	 	 
	
June 1, 2017 – May 31, 2018

	
$3,192,750.00

	
$266,062.50

	 	 	 
	
June 1, 2018 – May 31, 2019

	
$3,273,750.00

	
$272,812.50

	 	 	 
	
June 1, 2019 – May 31, 2020

	
$3,354,750.00

	
$279,562.50

 

Tenant shall also pay all Operating Expenses (defined below) and any other amounts owed by Tenant hereunder (collectively, “Additional Rent”).  In the event any monthly installment of Base Rent or Additional Rent, or both, is not paid within 5 days of the date when due, a late charge in an amount equal to 5% of the then delinquent installment of Base Rent and/or Additional Rent (the “Late Charge”; the Late Charge, Default Interest, as defined in Section 22.3 below, Base Rent and Additional Rent shall collectively be referred to as “Rent”), shall be paid by Tenant to Landlord, c/o First Industrial Investment, Inc., 75 Remittance Drive Suite 1066, Chicago IL 60675-1066, or if sent by overnight courier, The Northern Trust Company, 350 North Orleans, 8th Floor Receipt & Dispatch, Chicago IL 60654, Attention:  FIDS Suite 1066 (or such other entity designated as Landlord’s management agent, if any, and if Landlord so appoints such a management agent, the “Agent”), or pursuant to such other directions as Landlord shall designate in this Lease or otherwise in writing.  Notwithstanding the foregoing, for the first three (3) monthly installments of Rent during the Term, the Late Charge will not be charged to Tenant until five (5) days after notice by Landlord to Tenant of any such delinquent installment of Base Rent and/or Additional Rent

 

2.3.           Covenants Concerning Rental Payments; Initial and Final Rent Payments.  Tenant shall pay the Rent promptly when due, without notice or demand, and without any abatement, deduction or setoff.  No payment by Tenant, or receipt or acceptance by Agent or Landlord, of a lesser amount than the correct Rent shall be deemed to be other than a payment on account, nor shall any endorsement or statement on any check or letter accompanying any payment be deemed an accord or satisfaction, and Agent or Landlord may accept such payment without prejudice to its right to recover the balance due or to pursue any other remedy available to Landlord.  If the Commencement Date occurs on a day other than the first day of a calendar month, the Rent due for the first calendar month of the Term shall be prorated on a per diem basis (based on a 360 day, 12 month year) and paid to Landlord on the Commencement Date, and the Term will be extended to terminate on the last day of the calendar month in which the Expiration Date stated in Section 1.5 occurs.

 

2.4.           Net Lease.  This is an absolutely net lease to Landlord.  It is the intent of the parties hereto that the Base Rent payable under this Lease shall be an absolutely net return to Landlord and that Tenant shall pay all costs and expenses relating to the ownership and operation of the Premises and the business carried on therein, unless otherwise expressly provided to the contrary in this Lease.  Any amount or obligation relating to the Premises that is not expressly declared (under this Lease) to be that of Landlord shall be deemed to be an obligation of Tenant to be performed by Tenant, at Tenant’s expense.  It is the intention of the parties hereto that the obligations of Tenant hereunder shall be separate and independent covenants and agreements, that the Base Rent and the Additional Rent shall continue to be payable in all events, and that the obligations of Tenant hereunder shall continue unaffected in all events, unless the requirement to pay or perform the same shall have been specifically terminated pursuant to an express provision of this Lease.

 

  

  

  

  

3.           OPERATING EXPENSES.

 

3.1.           Definitional Terms Relating to Additional Rent.  For purposes of this Section and other relevant provisions of the Lease:

 

3.1.1.           Operating Expenses. The term “Operating Expenses” shall mean all costs and expenses paid or incurred by Landlord with respect to, or in connection with, the ownership, repair, restoration, maintenance and operation of the Premises.  Operating Expenses may include, but are not limited to, any or all of the following:  (i) all market-based premiums for commercial property, casualty, general liability, boiler, flood, earthquake, terrorism and all other types of insurance provided by Landlord and relating to the Premises, and all deductibles paid by Landlord pursuant to insurance policies required to be maintained by Landlord under this Lease; (ii) management fees to Landlord or Agent in an amount not to exceed 2% per annum of all Rent due hereunder; (iii) Taxes, as hereinafter defined in Section 3.1.2 (subject, however, to the last sentence of Section 3.1.2); (iv) dues, fees or other costs and expenses, of any nature, due and payable to any association or comparable entity to which Landlord, as owner of the Premises, is a member or otherwise belongs and that governs or controls any aspect of the ownership and operation of the Premises; (v) all fees in incurred in connection with the lawn care and landscaping of the Premises; and (vi) any real estate taxes and common area maintenance expenses levied against, or attributable to, the Premises under any declaration of covenants, conditions and restrictions, reciprocal easement agreement or comparable arrangement that encumbers and benefits the Premises and other real property (e.g. a business park).

 

3.1.2.           Taxes.  The term “Taxes,” as referred to in Section 3.1.1(iii) above shall mean (i) all governmental taxes, assessments, fees and charges of every kind or nature (other than Landlord’s income taxes), whether general, special, ordinary or extraordinary, due at any time or from time to time, during the Term and any extensions thereof, in connection with the ownership, leasing, or operation of the Premises, or of the personal property and equipment located therein or used in connection therewith; and (ii) any reasonable expenses incurred by Landlord in contesting such taxes or assessments and/or the assessed value of the Premises.  For purposes hereof, Tenant shall be responsible for any Taxes that are due and payable at any time or from time to time during the Term and for any Taxes that are assessed, become a lien, or accrue during any Operating Year, which obligation shall survive the termination or expiration of this Lease.  If Landlord so elects, by delivery of written notice to Tenant at any time during the Term, Tenant shall pay the Taxes directly to the taxing authority(ies), rather than to Landlord for payment to the taxing authority(ies), whereupon Tenant shall be required to pay all Taxes prior to the date on which they become delinquent and Tenant shall deliver to Landlord, promptly after Tenant’s payment of same, reasonable evidence of such payments.

 

3.1.3.           Operating Year.  The term “Operating Year” shall mean the calendar year commencing January 1st of each year (including the calendar year within which the Commencement Date occurs) during the Term.

 

3.2.           Payment of Operating Expenses.  Tenant shall pay, as Additional Rent and in accordance with the requirements of Section 3.3, all of the Operating Expenses, as set forth in Section 3.3. Additional Rent commences to accrue upon the Commencement Date.  The Operating Expenses payable hereunder for the Operating Years in which the Term begins and ends shall be prorated to correspond to that portion of said Operating Years occurring within the Term.  The Operating Expenses and any other sums due and payable under this Lease shall be adjusted upon receipt of the actual bills therefor, and the obligations of this Section 3 shall survive the termination or expiration of the Lease.

 

3.3.           Payment of Additional Rent.  Landlord shall have the right to reasonably estimate the Operating Expenses for each Operating Year.  Upon Landlord’s or Agent’s notice to Tenant of such estimated amount, Tenant shall pay, on the first day of each month during that Operating Year, an amount (the “Estimated Additional Rent”) equal to the estimate of the Operating Expenses divided by 12 (or the fractional portion of the Operating Year remaining at the time Landlord delivers its notice of the estimated amounts due from Tenant for that Operating Year).  If the aggregate amount of Estimated Additional Rent actually paid by Tenant during any Operating Year is less than Tenant’s actual ultimate liability for Operating Expenses for that particular Operating Year, Tenant shall pay the deficiency within thirty (30) days of Landlord’s written demand therefor.  If the aggregate amount of Estimated Additional Rent actually paid by Tenant during a given Operating Year exceeds Tenant’s actual liability for such Operating Year, the excess shall be credited against the Estimated Additional Rent next due from Tenant during the immediately subsequent Operating Year, except that in the event that such excess is paid by Tenant during the final Lease Year, then upon the expiration of the Term, Landlord or Agent shall pay Tenant the then-applicable excess promptly after determination thereof.

 

3.4.           Audit.  As soon as is reasonably practical after each Operating Year, Landlord shall provide Tenant with a statement (a “Statement”) setting forth the actual ultimate Additional Rent for the subject Operating Year.  If Tenant disputes the amount set forth in a given Statement, Tenant shall have the right, at Tenant's sole expense, to cause Landlord's books and records

 

  

  

  

  

with respect to the particular Operating Year that is the subject of that particular Statement to be audited (the “Audit”) by a certified public accountant mutually acceptable to Landlord and Tenant (the “Accountant”), provided Tenant (i) has not defaulted under this Lease and failed to cure such default on a timely basis and (ii)  delivers written notice (an “Audit Notice”) to Landlord on or prior to the date that is thirty (30) days after Landlord delivers the Statement in question to Tenant (such 30-day period, the “Response Period”).  If Tenant fails to timely deliver an Audit Notice with respect to a given Statement, then Tenant's right to undertake an Audit with respect to that Statement and the Operating Year to which that particular Statement relates shall automatically and irrevocably be waived and such Statement shall be final and binding upon Tenant and shall, as between the parties, be conclusively deemed correct.  If Tenant timely delivers an Audit Notice, Tenant must commence such Audit within thirty (30) days after the Audit Notice is delivered to Landlord, and the Audit must be completed within thirty (30) days of the date on which it is begun.  If Tenant fails, for any reason other than Landlord’s lack of cooperation, to commence and complete the Audit within such periods, the Statement that Tenant elected to Audit shall be deemed final and binding upon Tenant and shall, as between the parties, be conclusively deemed correct.  The Audit shall take place at the offices of Landlord where its books and records are located, at a mutually convenient time during Landlord's regular business hours.  Before conducting the Audit, Tenant must pay the full amount of the Additional Rent billed under the Statement then in question.  Tenant hereby covenants and agrees that the Accountant engaged by Tenant to conduct the Audit shall be compensated on an hourly basis and shall not be compensated based upon a percentage of overcharges it discovers.  If an Audit is conducted in a timely manner, such Audit shall be deemed final and binding upon Landlord and Tenant and shall, as between the parties, be conclusively deemed correct.  If the results of the Audit reveal that the actual ultimate Additional Rent does not equal the aggregate amount of the estimated Additional Rent actually paid by Tenant to Landlord during the Operating Year that is the subject of the Audit, the appropriate adjustment shall be made between Landlord and Tenant, and any payment required to be made by Landlord or Tenant to the other shall be made within thirty (30) days after the Accountant’s determination.  In no event shall this Lease be terminable nor shall Landlord be liable for damages based upon any disagreement regarding an adjustment of the Additional Rent. Tenant agrees that the results of any Audit shall be kept strictly confidential by Tenant and shall not be disclosed to any other person or entity.

 

4.           USE OF PREMISES; SIGNAGE; SECURITY DEPOSIT.

 

4.1.           Use of Premises.  The Premises shall be used by the Tenant for the purpose(s) set forth in Section 1.6 above and for no other purpose whatsoever.  Except as expressly permitted by this Lease, Tenant shall not, at any time, use or occupy, or suffer or permit anyone to use or occupy, the Premises, or do or permit anything to be done in the Premises, in any manner that may (a) violate any Certificate of Occupancy for the Premises; (b) cause, or be liable to cause, injury to, or in any way impair the value or proper utilization of, all or any portion of the Premises (including, but not limited to, the structural elements of the Premises) or any equipment, facilities or systems therein; (c) constitute a violation of the laws and requirements of any public authority or the requirements of insurance bodies or the rules and regulations of the Premises, including any covenant, condition or restriction affecting the Premises; (d) exceed the load bearing capacity of the floor of the Premises; or (e) impair or tend to impair the character, reputation or appearance of the Premises as a commercial warehouse.  On or prior to the date hereof, Tenant has completed and delivered for the benefit of Landlord a “Tenant Operations Inquiry Form” in the form attached hereto as Exhibit B describing the nature of Tenant’s proposed business operations at the Premises, which form is intended to be, and shall be, relied upon by Landlord.  From time to time during the Term (but no more often than once in any twelve month period unless Tenant is in default hereunder or unless Tenant assigns this Lease or subleases all or any portion of the Premises, whether or not in accordance with Section 8), Tenant shall provide an updated and current Tenant Operations Inquiry Form upon Landlord’s request.

 

4.2.           Signage.  Tenant shall not affix any sign of any size or character to any portion of the Premises, without prior written approval of Landlord, which approval shall not be unreasonably withheld or delayed.  Tenant shall remove all signs of Tenant upon the expiration or earlier termination of this Lease and immediately repair any damage to the Premises caused by, or resulting from, such removal. Notwithstanding the foregoing, Tenant may install a sign at the Premises, at Tenant’s sole cost, in accordance with the signage plan attached hereto as Exhibit F.

 

4.3.           Intentionally omitted.

 

5.           CONDITION AND DELIVERY OF PREMISES.

 

5.1.           Condition of Premises.  Subject to the last sentence of Section 9.1, Tenant agrees that Tenant is familiar with the condition of the Premises, and Tenant hereby accepts the foregoing on an “AS-IS,” “WHERE-IS” basis.  Tenant acknowledges that neither Landlord nor Agent, nor any representative of Landlord, has made any representation as to the condition of the foregoing or the suitability of the foregoing for Tenant’s intended use.  Tenant represents and warrants that Tenant has made its own inspection of the foregoing.  Neither Landlord nor Agent shall be obligated to make any repairs, replacements or improvements

 

  

  

  

  

(whether structural or otherwise) of any kind or nature to the foregoing in connection with, or in consideration of, this Lease.  Tenant shall construct and install the tenant improvements (“Tenant Improvements”), at Tenant’s sole cost and expense, pursuant to the terms and conditions of Exhibit C. Further, any documents that Landlord provided to Tenant prior to the execution of this Lease were furnished to Tenant for information purposes only and without any representation or warranty Landlord with respect thereto, express or implied. The floor capacity of the Premises is 500 pound per square foot live load capacity. 

 

5.2.           Delay in Commencement.  

 

5.3.           Memorandum of Commencement Date.  Upon lease execution, and as a condition precedent to such delivery, of the Premises to Tenant, and Tenant shall deliver to Landlord a Confirmation of Commencement Date in substantially the form attached hereto as Exhibit D.

 

6.           SUBORDINATION; ESTOPPEL CERTIFICATES; ATTORNMENT.

 

6.1.           Subordination and Attornment.  This Lease is and shall be subject and subordinate at all times to (a) all ground leases or underlying leases that may now exist or hereafter be executed affecting the Premises and (b) any mortgage or deed of trust that may now exist or hereafter be placed upon, and encumber, any or all of (x) the Premises; (y) any ground leases or underlying leases for the benefit of the Premises; and (z) all or any portion of Landlord’s interest or estate in any of said items.  Tenant shall execute and deliver, within ten (10) days of receipt thereof, and in the form reasonably requested by Landlord (or its lender), any documents evidencing the subordination of this Lease.  Tenant hereby covenants and agrees that Tenant shall attorn to any successor to Landlord.

 

6.2.           Estoppel Certificate.  Tenant agrees, from time to time and within ten (10) days after request by Landlord, to deliver to Landlord, or Landlord’s designee, an estoppel certificate stating such matters pertaining to this Lease as may be reasonably requested by Landlord, so long as such estoppel accurately describes the terms of this Lease.  Failure by Tenant to timely execute and deliver such certificate shall constitute a Default, as defined below (without any obligation to provide any notice thereof or any opportunity to cure such failure to timely perform).

 

6.3.           Transfer by Landlord. In the event of a sale or conveyance by Landlord of the Premises, the same shall operate to release Landlord from any future liability for any of the covenants or conditions, express or implied, herein contained in favor of Tenant and first arising or accruing after the effective date of Landlord’s transfer of its interest in the Premises, and in such event Tenant agrees to look solely to Landlord’s successor in interest (“Successor Landlord”) with respect thereto and agrees to attorn to such successor.

 

7.           QUIET ENJOYMENT.  Subject to the provisions of this Lease, so long as Tenant pays all of the Rent and performs all of its other obligations hereunder, Tenant shall not be disturbed in its possession of the Premises by Landlord, Agent or any other person lawfully claiming through or under Landlord.

 

8.           ASSIGNMENT AND SUBLETTING.  Tenant shall not (a) assign (whether directly or indirectly), in whole or in part, this Lease, or (b) allow this Lease to be assigned, in whole or in part, by operation of law or otherwise, including, without limitation, by transfer of a controlling interest (i.e. greater than a 50% interest) of stock, membership interests or partnership interests, or by merger or dissolution, which transfer of a controlling interest, merger or dissolution shall be deemed an assignment for purposes of this Lease, or (c) mortgage or pledge the Lease, or (d) sublet the Premises, in whole or in part, without (in the case of any or all of (a) through (d) above) the prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed; provided, however, subsection (b) shall not apply as long as Tenant is a publicly traded company (i.e. Tenant’s stock is listed on the Nasdaq or similar stock exchange).  Tenant may, however, assign this Lease or sublease a portion of the Premises to a wholly-owned subsidiary, provided that Tenant advises Landlord, in writing, in advance, and otherwise complies with the succeeding provisions of this Section 8.  In no event shall any assignment or sublease ever release Tenant or any guarantor from any obligation or liability hereunder; and in the case of any assignment, Landlord shall retain all rights with respect to the Security.  Any purported assignment, mortgage, transfer, pledge or sublease made without the prior written consent of Landlord shall be absolutely null and void.  No assignment of this Lease shall be effective and valid unless and until the assignee executes and delivers to Landlord any and all documentation reasonably required by Landlord in order to evidence assignee’s assumption of all obligations of Tenant hereunder.  Regardless of whether or not an assignee or sublessee executes and delivers any documentation to Landlord pursuant to the preceding sentence, any assignee or sublessee shall be deemed to have automatically attorned to Landlord in the event of any termination of this Lease.  If this Lease is assigned, or if the Premises (or any part thereof) are sublet or used or occupied by anyone other than Tenant, whether or not in violation of this Lease, Landlord or Agent may (without prejudice to, or waiver of its rights), collect Rent from the assignee, subtenant

 

  

  

  

  

or occupant.  In the event of an assignment of this Lease and the payment of consideration from the assignee to the Tenant in connection therewith, 50% of such consideration (after deducting Tenant’s actual cost of such assignment or subletting) shall be paid to Landlord.  With respect to the allocable portion of the Premises sublet, in the event that the total rent and any other considerations received under any sublease by Tenant is greater than (on a pro rata and proportionate basis) the total Rent required to be paid, from time to time, under this Lease, Tenant shall pay to Landlord fifty percent (50%) of such excess as received from any subtenant and such amount shall be deemed a component of the Additional Rent. 

 

9.           COMPLIANCE WITH LAWS.

 

9.1.           Compliance with Laws.  Tenant shall, at its sole expense (regardless of the cost thereof), comply with all local, state and federal laws, rules, regulations and requirements now or hereafter in force and all judicial and administrative decisions in connection with the enforcement thereof (collectively, “Laws”), whether such Laws (a) pertain to either or both of the Premises and Tenant’s use and occupancy thereof; (b) concern or address matters of an environmental nature; (c) require the making of any structural, unforeseen or extraordinary changes; and (d) involve a change of policy on the part of the body enacting the same, including, in all instances described in (a) through (d), but not limited to, the Americans With Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.).  If any license or permit is required for the conduct of Tenant’s business in the Premises, Tenant, at its expense, shall procure such license prior to the Commencement Date, and shall maintain such license or permit in good standing throughout the Term.  Tenant and Landlord shall give prompt notice to the other party of any written notice it receives of the alleged violation of any Law or requirement of any governmental or administrative authority with respect to either or both of the Premises and the use or occupation thereof.  Landlord warrants that, as of the date that Landlord executes this Lease, to Landlord’s knowledge, Landlord has not received any notice indicating either the Building or the Premises is/are in violation of any Law or restrictive covenant affecting the Building and the Premises.  As used herein, “Landlord’s knowledge” or words of similar import shall refer only to the actual (as opposed to deemed, imputed or constructive) knowledge of Jeffrey Thomas and Max Wilder without inquiry and, notwithstanding any fact or circumstance to the contrary, shall not be construed to refer to the knowledge of any other person or entity. Notwithstanding the foregoing, Landlord shall be obligated to repair and violations of any Laws that existed prior to the Effective Date of the Lease and was not a result of the Tenant Improvements or otherwise caused by Tenant or any Tenant Parties, provided that Tenant must provide written notice to Landlord of any such violation prior to December 31, 2008.

 

9.2.           Hazardous Materials.  If, at any time or from time to time during the Term (or any extension thereof), any Hazardous Material (defined below) is generated, transported, stored, used, treated or disposed of at, to, from, on or in the Premises by, or as a result of any act or omission of, any or all of Tenant and any or all of Tenant Parties (defined below): (i) Tenant shall, at its own cost, at all times comply (and cause all others to comply) with all Laws relating to Hazardous Materials, and Tenant shall further, at its own cost, obtain and maintain in full force and effect at all times all permits and other approvals required in connection therewith; (ii) Tenant shall promptly provide Landlord or Agent with complete copies of all communications, permits or agreements with, from or issued by any governmental authority or agency (federal, state or local) or any private entity relating in any way to the presence, release, threat of release, or placement of Hazardous Materials on or in the Premises or any portion of the Premises, or the generation, transportation, storage, use, treatment, or disposal at, on, in or from the Premises, of any Hazardous Materials; (iii) Landlord, Agent and their respective agents and employees shall have the right to either or both (x) enter the Premises and (y) conduct appropriate tests, at Tenant’s expense, for the purposes of ascertaining Tenant’s compliance with all applicable Laws or permits relating in any way to the generation, transport, storage, use, treatment, disposal or presence of Hazardous Materials on, at, in or from all or any portion of the Premises; and (iv) upon written request by Landlord or Agent, Tenant shall cause to be performed, and shall provide Landlord with the results of reasonably appropriate tests of air, water or soil to demonstrate that Tenant complies with all applicable Laws or permits relating in any way to the generation, transport, storage, use, treatment, disposal or presence of Hazardous Materials on, at, in or from all or any portion of the Premises.  This Section 9.2 does not authorize the generation, transportation, storage, use, treatment or disposal of any Hazardous Materials at, to, from, on or in the Premises in contravention of this Section 9.  Tenant covenants to investigate, clean up and otherwise remediate, at Tenant’s sole expense, any release of Hazardous Materials caused, contributed to, or created by any or all of (A) Tenant and (B) any or all of Tenant’s officers, directors, members, managers, partners, invitees, agents, employees, contractors or representatives (collectively, “Tenant Parties”) during the Term.  Such investigation and remediation shall be performed only after Tenant has obtained Landlord’s prior written consent; provided, however, that Tenant shall be entitled to respond (in a reasonably appropriate manner) immediately to an emergency without first obtaining such consent.  All remediation shall be performed in strict compliance with Laws and to the reasonable satisfaction of Landlord.  Tenant shall not enter into any settlement agreement, consent decree or other compromise with respect to any claims relating to any Hazardous Materials in any way connected to the Premises without first obtaining Landlord’s written consent (which consent may be given or withheld in Landlord’s sole, but reasonable, discretion) and affording Landlord the reasonable opportunity to participate in any such proceedings.  As used herein, the term, “Hazardous Materials,” shall mean any waste, material or substance (whether in the form of liquids, solids or gases, and whether or not airborne) that is or may be deemed to be or include a pesticide, petroleum,

 

  

  

  

  

asbestos, polychlorinated biphenyl, radioactive material, urea formaldehyde or any other pollutant or contaminant that is or may be deemed to be hazardous, toxic, ignitable, reactive, corrosive, dangerous, harmful or injurious, or that presents a risk to public health or to the environment, and that is or becomes regulated by any Law.  The undertakings, covenants and obligations imposed on Tenant under this Section 9.2 shall survive the termination or expiration of this Lease.  Landlord acknowledges and agrees that, as part of the Tenant Improvements, Tenant will be installing an ammonia-based refrigeration system into the Premises (the “Refrigeration System”) and, as long as the Refrigeration System complies with any and all applicable governmental rules and regulations and the terms of this Section 9.2, the presence of the Refrigeration System at the Premises shall not be an Event of Default (hereinafter defined) by Tenant.  Notwithstanding anything to the contrary contained herein, the Tenant shall be solely responsible for causing the Refrigeration System to comply with any and all applicable governmental rules and regulations and the terms of this Section 9.2. 

 

10.           INSURANCE.

 

10.1.           Insurance to be Maintained by Landlord.  Landlord shall maintain:  (a) a commercial property insurance policy covering the Premises (at its full replacement cost), but excluding Tenant’s personal property; (b) commercial general public liability insurance covering Landlord for claims arising out of liability for bodily injury, death, personal injury, advertising injury and property damage occurring in and about the Premises and otherwise resulting from any acts and operations of Landlord, its agents and employees; (c) rent loss insurance; and (d) any other insurance coverage deemed appropriate by Landlord or required by Landlord’s lender.  All of the coverages described in (a) through (d) shall be determined from time to time by Landlord, in its sole discretion.  All insurance maintained by Landlord shall be in addition to and not in lieu of the insurance required to be maintained by the Tenant.

 

10.2.           Insurance to be Maintained by Tenant.  Tenant shall purchase, at its own expense, and keep in force at all times from and after the date of this Lease, the policies of insurance set forth below (collectively, “Tenant’s Policies”).  All Tenant’s Policies shall (a) be issued by an insurance company with a Best’s rating of A or better and otherwise reasonably acceptable to Landlord and shall be licensed to do business in the state in which the Premises is located; (b) provide that said insurance shall not be canceled or materially modified unless 30 days’ prior written notice shall have been given to Landlord; (c) provide for deductible amounts that are reasonably acceptable to Landlord (and its lender, if applicable) and (d) otherwise be in such form, and include such coverages, as Landlord may reasonably require.  The Tenant’s Policies described in (i) and (ii) below shall (1) provide coverage on an occurrence basis; (2) name Landlord (and its lender, if applicable) as an additional insured; (3) provide coverage, to the extent insurable, for the indemnity obligations of Tenant under this Lease; (4) contain a separation of insured parties provision; (5) be primary, not contributing with, and not in excess of, coverage that Landlord may carry; and (6) provide coverage with no exclusion for a pollution incident arising from a hostile fire. All Tenant’s Policies (or, at Landlord’s option, Certificates of Insurance and applicable endorsements, including, without limitation, an "Additional Insured-Managers or Landlords of Premises" endorsement) shall be delivered to Landlord prior to the Commencement Date and renewals thereof shall be delivered to Landlord’s notice addresses at least 30 days prior to the applicable expiration date of each Tenant’s Policy.  In the event that Tenant fails, at any time or from time to time, to comply with the requirements of the preceding sentence and such failure continues for five (5) days after written notice from Landlord,  Landlord may (i) order such insurance and charge the cost thereof to Tenant, which amount shall be payable by Tenant to Landlord upon demand, as Additional Rent or (ii) impose on Tenant, as Additional Rent, a monthly delinquency fee, for each month during which Tenant fails to comply with the foregoing obligation, in an amount equal to five percent (5%) of the monthly Base Rent then in effect.  Tenant shall give prompt notice to Landlord and Agent of any bodily injury, death, personal injury, advertising injury or property damage occurring in and about the Premises.

 

Tenant shall purchase and maintain, throughout the Term, a Tenant’s Policy(ies) of (i) commercial general or excess liability insurance, including personal injury and property damage, in the amount of not less than $2,000,000.00 per occurrence, and $5,000,000.00 annual general aggregate, per location (such limits may be provided through a combination or primary and excess policies); (ii) comprehensive automobile liability insurance covering Tenant against any personal injuries or deaths of persons and property damage based upon or arising out of the ownership, use, occupancy or maintenance of a motor vehicle at the Premises and all areas appurtenant thereto in the amount of not less than $1,000,000, combined single limit; (iii) commercial property insurance covering Tenant’s personal property; and (iv) workers’ compensation insurance per the applicable state statutes covering all employees of Tenant.

 

10.3.           Waiver of Subrogation.  Notwithstanding anything to the contrary in this Lease, Landlord and Tenant mutually waive their respective rights of recovery against each other and each other’s officers, directors, constituent partners, members, agents and employees, and (to the extent such parties waive their rights of subrogation against Tenant) Tenant further waives such rights against (a) each lessor under any ground or underlying lease encumbering the Premises and (b) each lender under any mortgage or deed of trust or other lien encumbering the Premises (or any portion thereof or interest therein), to the extent any loss

 

  

  

  

  

is insured against or required to be insured against under this Lease, including, but not limited to, losses, deductibles or self-insured retentions covered by Landlord’s or Tenant’s commercial property, general liability, automobile liability or workers’ compensation policies described above,  This provision is intended to waive, fully and for the benefit of each party to this Lease, any and all rights and claims that might give rise to a right of subrogation by any insurance carrier.  Each party shall cause its respective insurance policy(ies) to be endorsed to evidence compliance with such waiver.

 

11.           ALTERATIONS.  Tenant may, from time to time, at its expense, make alterations or improvements in and to the Premises (hereinafter collectively referred to as “Alterations”; provided that this term shall not apply to the Tenant Improvements, which are governed by other provisions), provided that Tenant first obtains the written consent of Landlord, which shall not be unreasonably withheld, delayed or conditioned. All of the following shall apply with respect to all Alterations:  (a) the Alterations are non-structural and the structural integrity of the Premises shall not be affected; (b) the proper functioning of the mechanical, electrical, heating, ventilating, air-conditioning (“HVAC”), sanitary and other service systems of the Premises shall not be adversely affected; and (c) Tenant shall have appropriate insurance coverage, reasonably satisfactory to Landlord, regarding the performance and installation of the Alterations.  Additionally, before proceeding with any Alterations, Tenant shall (i) at Tenant’s expense, obtain all necessary governmental permits and certificates for the commencement and prosecution of Alterations; (ii) if Landlord’s consent is required for the planned Alteration, submit to Landlord, for its written approval, working drawings, plans and specifications and all permits for the work to be done and Tenant shall not proceed with such Alterations until it has received Landlord’s approval (if required), , which shall not be unreasonably withheld, delayed or conditioned, and which shall be given or declined within ten (10) business days.  If Landlord declined to give its consent Landlord shall provide the reasons with reasonably specificity, and Tenant may resubmit a request for approval which addresses such reasons, which shall again but subject to the above-referenced 10-day provision; and (iii) cause any contractors or others engaged to perform the Alterations to deliver to Landlord certificates of insurance (in a form reasonably acceptable to Landlord) evidencing policies of commercial general liability insurance (providing the same coverages as required in Section 10 above) and workers’ compensation insurance.  Such insurance policies shall satisfy the obligations imposed under Section 10.  Tenant shall cause the Alterations to be performed in compliance with all applicable permits, Laws and requirements of public authorities, and any other reasonably restrictions that Landlord may impose on the Alterations.  Tenant shall cause the Alterations to be diligently performed in a good and workmanlike manner, using new materials and equipment at least equal in quality and class to the standards for the Premises established by Landlord.  With respect to any and all Alterations for which Landlord’s consent is required, Tenant shall provide Landlord with “as built” plans, copies of all construction contracts, governmental permits and certificates and proof of payment for all labor and materials, including, without limitation, copies of paid invoices and final lien waivers.  If Landlord’s consent to any Alterations is required, and Landlord provides that consent, then at the time Landlord so consents, Landlord shall also advise Tenant whether or not Landlord shall require that Tenant remove such Alterations at the expiration or termination of this Lease.  

 

12.           LANDLORD’S AND TENANT’S PROPERTY.  All fixtures, machinery, equipment, improvements and appurtenances built into the Premises at the commencement of, or during the Term, whether or not placed there by or at the expense of Tenant, shall become and remain a part of the Premises; shall be deemed the property of Landlord (the “Landlord’s Property”), without compensation or credit to Tenant; and shall not be removed by Tenant at the Expiration Date unless Landlord requires their removal (including, but not limited to, Alterations pursuant to Section 10.3).  Further, any personal property in the Premises on the Commencement Date, movable or otherwise, unless installed and paid for by Tenant, shall also constitute Landlord’s Property and shall not be removed by Tenant.  Notwithstanding the foregoing, the Tenant Improvements shall not constitute Landlord’s Property.  In no event shall Tenant remove any of the following materials or equipment without Landlord’s prior written consent (which consent may be given or withheld in Landlord’s sole discretion):  any power wiring or power panels, lighting or lighting fixtures, wall or window coverings, carpets or other floor coverings, heaters, air conditioners or any other HVAC equipment, fencing or security gates, or other similar building operating equipment and decorations. At or before the Expiration Date, or the date of any earlier termination, Tenant, at its expense, shall remove from the Premises all of Tenant’s personal property and any Alterations that Landlord requires be removed pursuant to Section 10.3, and Tenant shall repair (to Landlord’s reasonable satisfaction) any damage to the Premises resulting from either or both of such installation and removal.  Any other items of Tenant’s personal property that remain in the Premises after the Expiration Date, or following an earlier termination date, may, at the option of Landlord, be deemed to have been abandoned, and in such case, such items may be retained by Landlord as its property or be disposed of by Landlord, in Landlord’s sole and absolute discretion and without accountability, at Tenant’s expense.  Notwithstanding the foregoing, if Tenant is in default beyond any applicable cure period provided herein and under the terms of this Lease, Tenant may remove Tenant’s personal property from the Premises only upon the express written direction of Landlord.  The foregoing sentence shall not apply to Tenant’s inventory.

 

  

  

  

  

13.           REPAIRS AND MAINTENANCE.

 

13.1.           Tenant Responsibilities.  Tenant acknowledges that, with full awareness of its obligations under this Lease, Tenant has accepted the condition, state of repair and appearance of the Premises.  Except for events of damage, destruction or casualty to the Premises (as addressed in Section 18 below), Tenant agrees that, at its sole expense, it shall put, keep and maintain the Premises, including any Alterations and any altered, rebuilt, additional or substituted buildings, structures and other improvements thereto or thereon, in a good and safe condition, repair and appearance (collectively, the “Required Condition”) and shall make all repairs and replacements necessary therefore.  Without limiting the foregoing, Tenant shall promptly make all structural and nonstructural, foreseen and unforeseen, ordinary and extraordinary changes, replacements and repairs of every kind and nature, and correct any patent or latent defects in the Premises, which may be required to put, keep and maintain the Premises in the Required Condition.  Tenant will keep the Premises orderly and free and clear of rubbish.  Tenant covenants to perform or observe all terms, covenants and conditions of any easement, restriction, covenant, declaration or maintenance agreement (collectively, “Easements”) to which the Premises are currently subject or become subject pursuant to this Lease, whether or not such performance is required of Landlord under such Easements, including, without limitation, payment of all amounts due from Landlord or Tenant (whether as assessments, service fees or other charges) under such Easements.  Each party shall deliver to the other party promptly, but in no event later than five (5) business days after receipt thereof, copies of all written notices received from any party thereto regarding the non-compliance of the Premises or Landlord’s or Tenant’s performance of obligations under any Easements.  Tenant shall, at its expenses, use reasonable efforts to enforce compliance with any Easements benefiting the Premises by any other person or entity or property subject to such Easement. Landlord shall not be required to maintain, repair or rebuild, or to make any alterations, replacements or renewals of any nature to the Premises, or any part thereof, whether ordinary or extraordinary, structural or nonstructural, foreseen or not foreseen, or to maintain the Premises or any part thereof in any way or to correct any patent or latent defect therein.  Tenant hereby expressly waives any right to make repairs at the expense of Landlord which may be provided for in any Law in effect at the Effective Date of the Lease or that may thereafter be enacted.  If Tenant shall vacate or abandon the Premises, it shall give Landlord immediate written notice thereof. Notwithstanding anything to the contrary contained herein, Landlord shall be responsible for the lawn care and landscaping and Tenant shall be solely responsible, at Tenant’s sole cost, for snow removal at the Premises and maintenance of the fire maintenance systems of the Premises.

 

13.2.           HVAC Maintenance Contract.  Tenant shall also maintain, in full force and effect, a preventative maintenance and service contract with a reputable service provider for maintenance of any of the HVAC systems of the Premises (the “HVAC Maintenance Contract”).  The terms and provisions of any such HVAC Maintenance Contract shall require that the service provider maintain the Premises’ HVAC system in accordance with the manufacturer’s recommendations and otherwise in accordance with normal, customary and reasonable practices in the geographic area in which the Premises is located and for HVAC systems comparable to the Premises’ HVAC system. Within 30 days following the Commencement Date, Tenant shall procure and deliver to Landlord the HVAC Maintenance Contract for any HVAC systems currently existing. In the event Tenant installs any additional HVAC systems at the Premises, Tenant shall obtain a HVAC Maintenance Contract for such HVAC systems.  Thereafter, Tenant shall provide to Landlord a copy of renewals or replacements of such HVAC Maintenance Contract no later than 30 days prior to the then-applicable expiry date of the existing HVAC Maintenance Contract.  If Tenant fails to timely deliver to Landlord the HVAC Maintenance Contract (or any applicable renewal or replacement thereof), then Landlord shall have the right to contract directly for the periodic maintenance of the HVAC systems in the Premises and to charge the cost thereof back to Tenant as Additional Rent.

 

14.           UTILITIES.  Tenant shall purchase all utility services and shall provide for scavenger, cleaning and extermination services.  Tenant shall pay the utility charges for the Premises directly to the utility or municipality providing such service, all charges shall be paid by Tenant before they become delinquent.  Tenant shall be solely responsible for the repair and maintenance of any meters necessary in connection with such services.  Tenant’s use of electrical energy in the Premises shall not, at any time, exceed the capacity of either or both of (x) any of the electrical conductors and equipment in or otherwise servicing the Premises; and (y) the HVAC systems of the Premises.

 

15.           INVOLUNTARY CESSATION OF SERVICES.  Landlord reserves the right, without any liability to Tenant and without affecting Tenant’s covenants and obligations hereunder, to stop service of any or all of the HVAC, electric, sanitary, elevator (if any), and other systems serving the Premises, or to stop any other services required by Landlord under this Lease, whenever and for so long as may be necessary by reason of (i) accidents, emergencies, strikes, or (ii) any other cause beyond Landlord’s reasonable control, if and only if all of such stoppages are believed to be, in Landlord’s discretion, absolutely necessary to effect any repairs to the Premises or if Landlord is requested or required by any governmental or quasi-governmental authority to stop such services.  Further, it is also understood and agreed that Landlord or Agent shall have no liability or responsibility for a cessation of services to the Premises that occurs as a result of causes beyond Landlord’s or Agent’s reasonable control.  No such interruption of service shall be deemed an eviction or disturbance of Tenant’s use and possession of the Premises or any part thereof, or render Landlord or Agent liable to Tenant for damages, or relieve Tenant from performance of Tenant’s obligations under this Lease, including, but not limited to, the obligation to pay Rent; provided, however, that if any interruption of services persists for a period in excess of five (5) consecutive business days Tenant shall, as Tenant’s sole remedy, be entitled to a proportionate abatement of Rent to the extent, if any, of any actual loss of use of the Premises by Tenant.

 

  

  

  

  

 

16.           LANDLORD’S RIGHTS.  Landlord, Agent and their respective agents, employees and representatives shall have the right to enter and/or pass through the Premises at any time or times upon reasonable prior notice (except in the event of emergency) to examine and inspect the Premises and to show them to actual and prospective lenders, prospective purchasers or mortgagees of the Premises or providers of capital to Landlord and its affiliates; and in connection with the foregoing, to install a sign at or on the Premises to advertise the Premises for lease or sale; during the period of six months prior to the Expiration Date (or at any time, if Tenant has vacated or abandoned the Premises or is otherwise in default under this Lease), Landlord and its agents may exhibit the Premises to prospective tenants.  Additionally, Landlord and Agent shall have the following rights with respect to the Premises, exercisable without notice to Tenant, without liability to Tenant, and without being deemed an eviction or disturbance of Tenant’s use or possession of the Premises or giving rise to any claim for setoff or abatement of Rent:  (i) to have pass keys, access cards, or both, to the Premises; and (ii) to decorate, remodel, repair, alter or otherwise prepare the Premises for reoccupancy at any time after Tenant vacates or abandons the Premises for more than 30 consecutive days or without notice to Landlord of Tenant’s intention to reoccupy the Premises.

 

17.           NON-LIABILITY AND INDEMNIFICATION.

 

17.1.           Non-Liability.  None of Landlord, Agent, any other managing agent, or their respective affiliates, owners, partners, directors, officers, agents and employees shall be liable to Tenant for any loss, injury, or damage, to Tenant or to any other person, or to its or their property, irrespective of the cause of such injury, damage or loss; provided, however, that the preceding limitation shall not be construed to limit or negate Landlord’s obligations under Section 17.3 below.  In the event that Landlord’s indemnity under Section 17.3 is applicable, it shall apply only as and to the specific extent expressly provided in Section 17.3.  Further, none of Landlord, Agent, any other managing agent, or their respective affiliates, owners, partners, directors, officers, agents and employees shall be liable to Tenant (a) for any damage caused by other persons in, upon or about the Premises, or caused by operations in construction of any public or quasi-public work; (b) for consequential or indirect damages, including those purportedly arising out of any loss of use of the Premises or any equipment or facilities therein by Tenant or any person claiming through or under Tenant; (c) for any defect in the Premises; or (d) for injury or damage to person or property caused by fire, or theft, or resulting from the operation of heating or air conditioning or lighting apparatus, or from falling plaster, or from steam, gas, electricity, water, rain, snow, ice, or dampness, that may leak or flow from any part of the Premises, or from the pipes, appliances or plumbing work of the same.

 

17.2.           Tenant Indemnification.  Except in the event of, and to the extent of, Landlord’s negligence, sole negligence or willful misconduct, Tenant hereby indemnifies, defends, and holds Landlord, Agent, Landlord’s members and their respective affiliates, owners, partners, members, directors, officers, agents and employees (collectively, “Landlord Indemnified Parties”) harmless from and against any and all Losses (defined below) arising from or in connection with any or all of:  (a) the conduct or management of the Premises or any business therein, or any work or Alterations done, or any condition created by any or all of Tenant and Tenant Parties in or about the Premises during the Term or during the period of time, if any, prior to the Commencement Date that Tenant has possession of, or is given access to the Premises; (b) any act, omission or negligence of any or all of Tenant and Tenant Parties; (c) any accident, injury or damage whatsoever occurring in, at or upon the Premises and caused by any or all of Tenant and Tenant Parties; (d) any breach by Tenant of any or all of its warranties, representations and covenants under this Lease; (e) any actions necessary to protect Landlord’s interest under this Lease in a bankruptcy proceeding or other proceeding initiated by or against Tenant under the Bankruptcy Code; (f) the creation or existence of any Hazardous Materials in, at, on or under the Premises, if and to the extent brought to the Premises or caused by Tenant or any party within Tenant’s control; and (g) any violation or alleged violation by any or all of Tenant and Tenant Parties of any Law (collectively, “Tenant’s Indemnified Matters”).  In case any action or proceeding is brought against any or all of Landlord and the Landlord Indemnified Parties by reason of any of Tenant’s Indemnified Matters, Tenant, upon notice from any or all of Landlord, Agent or any Superior Party (defined below), shall resist and defend such action or proceeding by counsel reasonably satisfactory to Landlord.  The term “Losses” shall mean all claims, demands, expenses, actions, judgments, damages (actual, but not consequential), penalties, fines, liabilities, losses of every kind and nature, suits, administrative proceedings, costs and fees, including, without limitation, attorneys’ and consultants’ reasonable fees and expenses, and the costs of cleanup, remediation, removal and restoration, that are in any way related to any matter covered by the foregoing indemnity.  The provisions of this Section 17.2 shall survive the expiration or termination of this Lease.

 

17.3.           Landlord Indemnification.  Landlord hereby indemnifies, defends and holds Tenant harmless from and against any and all Losses actually suffered or incurred by Tenant as the sole and direct result of any negligent, willful or intentional acts or omissions of any or all of Landlord, Agent and any parties within the direct and sole control of either or both of Landlord and Agent.  Notwithstanding anything to the contrary set forth in this Lease, however, in all events and under all circumstances, the liability of Landlord to Tenant, whether under this Section 17.3 or any other provision of this Lease, shall be limited to the interest of Landlord in the Premises, and Tenant agrees to look solely to Landlord’s interest in the Premises for the recovery of any judgment or award against Landlord, it being intended that Landlord shall not be personally liable for any judgment or deficiency.  The provisions of this Section 17.3 shall survive the expiration or termination of this Lease.

  

  

  

  

 

17.4.           Force Majeure.  Each of the obligations of Tenant (except the obligation to pay Rent and the obligation to maintain insurance, and provide evidence thereof, in accordance with Section 10.2) and each of the obligations of Landlord, shall be excused, and neither Landlord nor Tenant shall have any liability whatsoever to the other, to the extent that any failure to perform, or delay in performing such obligation arises out of either or both of (a) any labor dispute, governmental preemption of property in connection with a public emergency or shortages of fuel, supplies, or labor, or any other cause, whether similar or dissimilar, beyond Landlord’s or Tenant’s, as the case may be, reasonable control; or (b) any failure or defect in the supply, quantity or character of utilities furnished to the Premises, or by reason of any requirement, act or omission of any public utility or others serving the Premises, beyond Landlord’s or Tenant’s, as the case may be, reasonable control.

 

18.           DAMAGE OR DESTRUCTION.

 

18.1.           Notification and Repair; Rent Abatement.  Tenant shall give prompt notice to Landlord and Agent of (a) any fire or other casualty to the Premises, and (b) any damage to, or defect in, any part or appurtenance of the Premises’ sanitary, electrical, HVAC, or other systems.  In the event that, as a result of Tenant’s failure to promptly notify Landlord pursuant to the preceding sentence, Landlord’s insurance coverage is compromised or adversely affected, then Tenant is and shall be responsible for the payment to Landlord of any insurance proceeds that Landlord’s insurer fails or refuses to pay to Landlord as a result of the delayed notification.  Subject to the provisions of Section 18.2 below, if the Premises is damaged by fire or other insured casualty, Landlord shall repair (or cause Agent to repair) the damage and restore and rebuild the Premises (except Tenant’s personal property) with reasonable dispatch after the adjustment of the insurance proceeds attributable to such damage.  Landlord (or Agent, as the case may be) shall use its diligent, good faith efforts to make such repair or restoration promptly and in such manner as not to unreasonably interfere with Tenant’s use and occupancy of the Premises, but Landlord or Agent shall not be required to do such repair or restoration work except during normal business hours of business days.  Provided that any damage to the Premises is not caused by, or is not the result of acts or omissions by, any or all of Tenant and Tenant Parties, if the Premises are partially damaged by fire or other casualty, the Rent shall be proportionally abated to the extent of any actual loss of use of the Premises by Tenant.

 

18.2.           Total Destruction.  If the Premises shall be totally destroyed by fire or other casualty, or if the Premises shall be so damaged by fire or other casualty that (in the reasonable opinion of a reputable contractor or architect designated by Landlord):  (i) its repair or restoration requires more than one hundred eighty (180) days or (ii) such repair or restoration requires the expenditure of more than fifty percent (50%) of the full insurable value of the Premises immediately prior to the casualty, Landlord and Tenant shall each have the option to terminate this Lease (by so advising the other, in writing) within ten (10) days after said contractor or architect delivers written notice of its opinion to Landlord and Tenant, but in all events prior to the commencement of any restoration of the Premises by Landlord.  Additionally, if the damage (x) is less than the amount stated in (ii) above, but more than ten percent (10%) of the full insurable value of the Premises; and (y) occurs during the last two years of Lease Term, then Landlord, but not Tenant, shall have the option to terminate this Lease pursuant to the notice and within the time period established pursuant to the immediately preceding sentence.  In the event of a termination pursuant to either of the preceding two (2) sentences, the termination shall be effective as of the date upon which either Landlord or Tenant, as the case may be, receives timely written notice from the other terminating this Lease pursuant to the preceding sentence.  If neither Landlord nor Tenant timely delivers a termination notice, this Lease shall remain in full force and effect.  Notwithstanding the foregoing, if (A) any holder of a mortgage or deed of trust encumbering the Premises or landlord pursuant to a ground lease encumbering the Premises (collectively, “Superior Parties”) or other party entitled to the insurance proceeds fails to make such proceeds available to Landlord in an amount sufficient for restoration of the Premises, or (B) the issuer of any commercial property insurance policies on the Premises fails to make available to Landlord sufficient proceeds for restoration of the Premises, then Landlord may, at Landlord’s sole option, terminate this Lease by giving Tenant written notice to such effect within thirty (30) days after Landlord receives notice from the Superior Party or insurance company, as the case may be, that such proceeds shall not be made available, in which event the termination of this Lease shall be effective as of the date Tenant receives written notice from Landlord of Landlord’s election to terminate this Lease.  Landlord shall have no liability to Tenant, and Tenant shall not be entitled to terminate this Lease by virtue of any delays in completion of repairs and restoration.  For purposes of this Section 18.2 only, “full insurable value” shall mean replacement cost, less the cost of footings, foundations and other structures below grade.

 

19.           EMINENT DOMAIN.  If the whole, or any substantial (as reasonably determined by Landlord) portion, of the Premises is taken or condemned for any public use under any Law or by right of eminent domain, or by private purchase in lieu thereof, and such taking would prevent or materially interfere with the Permitted Use of the Premises, this Lease shall terminate effective when the physical taking of said Premises occurs.  If less than a substantial portion of the Premises is so taken or condemned, 

 

  

  

  

  

or if the taking or condemnation is temporary (regardless of the portion of the Premises affected), this Lease shall not terminate, but the Rent payable hereunder shall be proportionally abated to the extent of any actual loss of use of the Premises by Tenant.  Landlord shall be entitled to any and all payment, income, rent or award, or any interest therein whatsoever, which may be paid or made in connection with such a taking or conveyance, and Tenant shall have no claim against Landlord for the value of any unexpired portion of this Lease.  Notwithstanding the foregoing, any compensation specifically and independently awarded to Tenant for loss of business or goodwill, or for its personal property, shall be the property of Tenant.

 

20.           SURRENDER AND HOLDOVER.  On the last day of the Term, or upon any earlier termination of this Lease, or upon any re-entry by Landlord upon the Premises:  (a) Tenant shall quit and surrender the Premises to Landlord “broom-clean” (as defined by Exhibit E attached hereto and incorporated herein by reference), and in a condition that would reasonably be expected with normal and customary use in accordance with prudent operating practices and in accordance with the covenants and requirements imposed under this Lease, subject only to ordinary wear and tear (as is attributable to deterioration by reason of time and use, in spite of Tenant’s reasonable care) and such damage or destruction as Landlord is required to repair or restore under this Lease; provided, however, Tenant shall remove all of the Tenant Improvements and restore the Premises to a dry, shell condition, including without limitation, the removal of the Refrigeration Systems and structures (provided, however, the floors of the freezer, cooler and/or cold dock areas may remain so long as there is no evidence of heaving or buckling and the floor load is equal to or exceeds the design parameters of the rest of the warehouse floor), lawfully disposing of any and all of the ammonia or other chemicals that supply the Refrigeration System (in accordance with any and all applicable laws), returning the sprinklers to their original condition and capping any and all floor piping; (b) Tenant shall remove all of Tenant’s personal property therefrom, except as otherwise expressly provided in this Lease; and (c) Tenant shall surrender to Landlord any and all keys, access cards, computer codes or any other items used to access the Premises.  Landlord shall be permitted to inspect the Premises in order to verify compliance with this Section 20 at any time prior to (x) the Expiration Date, (y) the effective date of any earlier termination of this Lease, or (z) the surrender date otherwise agreed to in writing by Landlord and Tenant.  The obligations imposed under the first sentence of this Section 20 shall survive the termination or expiration of this Lease.  If Tenant remains in possession after the Expiration Date hereof or after any earlier termination date of this Lease or of Tenant’s right to possession:  (i)  Tenant shall be deemed a tenant-at-will;  (ii) Tenant shall pay 150% of the aggregate of all Rent last prevailing hereunder, and also shall pay all actual damages sustained by Landlord, directly by reason of Tenant’s remaining in possession after the expiration or termination of this Lease;  (iii) there shall be no renewal or extension of this Lease by operation of law; and (iv) the tenancy-at-will may be terminated by either party hereto upon 30 days’ prior written notice given by the terminating party to the non-terminating party.  The provisions of this Section 20 shall not constitute a waiver by Landlord of any re-entry rights of Landlord provided hereunder or by law.

 

21.           EVENTS OF DEFAULT.

 

21.1.           Bankruptcy of Tenant.  It shall be a default by Tenant under this Lease (“Default” or “Event of Default”) if Tenant makes an assignment for the benefit of creditors, or files a voluntary petition under any state or federal bankruptcy (including the United States Bankruptcy Code) or insolvency law, or an involuntary petition is filed against Tenant under any state or federal bankruptcy (including the United States Bankruptcy Code) or insolvency law that is not dismissed within ninety (90) days after filing, or whenever a receiver of Tenant, or of, or for, the property of Tenant shall be appointed, or Tenant admits it is insolvent or is not able to pay its debts as they mature.

 

21.2.           Default Provisions.  In addition to any Default arising under Section 21.1 above, each of the following shall constitute a Default:  (a) if Tenant fails to pay Rent or any other payment when due hereunder within five days after written notice from Landlord of such failure to pay on the due date; provided, however, that if in any consecutive twelve (12) month period, Tenant shall, on two (2) separate occasions, fail to pay any installment of Rent on the date such installment of Rent is due, then, on the third such occasion and on each occasion thereafter on which Tenant shall fail to pay an installment of Rent on the date such installment of Rent is due, Landlord shall be relieved from any obligation to provide notice to Tenant, and Tenant shall then no longer have a five (5) day period in which to cure any such failure; (b) if Tenant fails, whether by action or inaction, to timely comply with, or satisfy, any or all of the obligations imposed on Tenant under this Lease (other than the obligation to pay Rent) for a period of thirty (30) days after Landlord’s delivery to Tenant of written notice of such default under this Section 21.2(b); provided, however, that if the default cannot, by its nature, be cured within such thirty (30) day period, but Tenant commences and diligently pursues a cure of such default promptly within the initial thirty (30) day cure period, then Landlord shall not exercise its remedies under Section 22 unless such default remains uncured for more than sixty (60) days after the initial delivery of Landlord’s original default notice; and, at Landlord’s election, (c) if Tenant vacates or abandons the Premises during the Term.

 

  

  

  

  

 

22.           RIGHTS AND REMEDIES.

 

22.1.           Landlord’s Cure Rights Upon Default of Tenant.  If a Default occurs, then Landlord may (but shall not be obligated to) cure or remedy the Default for the account of, and at the expense of, Tenant, but without waiving such Default.

 

22.2.           Landlord’s Remedies.  In the event of any Default by Tenant under this Lease, Landlord, at its option, may, in addition to any and all other rights and remedies provided in this Lease or otherwise at law or in equity, do or perform any or all of the following:

 

22.2.1.         Terminate Tenant’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate and Tenant shall immediately surrender possession to Landlord.  In such event, Landlord shall be entitled to recover from Tenant all of:  (i) the unpaid Rent that is accrued and unpaid as of the date on which this Lease is terminated; (ii) the worth, at the time of award, of the amount by which (x) the unpaid Rent that would otherwise be due and payable under this Lease (had this Lease not been terminated) for the period of time from the date on which this Lease is terminated through the Expiration Date exceeds (y) the amount of such rental loss that the Tenant proves could have been reasonably avoided; and (iii) any other amount necessary to compensate Landlord for all the detriment proximately caused by the Tenant’s failure to perform its obligations under this Lease or which, in the ordinary course of events, would be likely to result therefrom, including but not limited to, the cost of recovering possession of the Premises, expenses of reletting, including renovation and alteration of the Premises, reasonable attorneys’ fees, and that portion of any leasing commission paid by Landlord in connection with this Lease applicable to the unexpired Term (as of the date on which this Lease is terminated).  The worth, at the time of award, of the amount referred to in provision (ii) of the immediately preceding sentence shall be computed by discounting such amount at the current yield, as of the date on which this Lease is terminated under this Section 22.2.1, on United States Treasury Bills having a maturity date closest to the stated Expiration Date of this Lease, plus one percent per annum.  Efforts by Landlord to mitigate damages caused by Tenant’s Default shall not waive Landlord’s right to recover damages under this Section 22.2.  If this Lease is terminated through any unlawful entry and detainer action, Landlord shall have the right to recover in such proceeding any unpaid Rent and damages as are recoverable in such action, or Landlord may reserve the right to recover all or any part of such Rent and damages in a separate suit; or

 

22.2.2.         Continue the Lease and either (a) continue Tenant’s right to possession or (b) terminate Tenant’s right to possession and in the case of either (a) or (b), recover the Rent as it becomes due.  Acts of maintenance, efforts to relet, and/or the appointment of a receiver to protect the Landlord’s interests shall not constitute a termination of the Tenant’s right to possession; or

 

22.2.3.         Pursue any other remedy now or hereafter available under the laws of the state in which the Premises are located.

 

22.2.4.         Without limitation of any of Landlord’s rights in the event of a Default by Tenant, Landlord may also exercise its rights and remedies with respect to any Security under Section 4.3 above.

 

Any and all personal property of Tenant that may be removed from the Premises by Landlord pursuant to the authority of this Lease or of law may be handled, removed or stored by Landlord at the sole risk, cost and expense of Tenant, and in no event or circumstance shall Landlord be responsible for the value, preservation or safekeeping thereof.  Tenant shall pay to Landlord, upon demand, any and all expenses incurred in such removal and all storage charges for such property of Tenant so long as the same shall be in Landlord’s possession or under Landlord’s control.  Any such property of Tenant not removed from the Premises as of the Expiration Date or any other earlier date on which this Lease is terminated shall be conclusively presumed to have been conveyed by Tenant to Landlord under this Lease as in a bill of sale, without further payment or credit by Landlord to Tenant.  Neither expiration or termination of this Lease nor the termination of Tenant’s right to possession shall relieve Tenant from its liability under the indemnity provisions of this Lease.

 

22.3.           Additional Rights of Landlord.  All sums advanced by Landlord or Agent on account of Tenant under this Section, or pursuant to any other provision of this Lease, and all Base Rent and Additional Rent, if delinquent or not paid by Tenant and received by Landlord when due hereunder, shall bear interest (“Default Interest”) at the rate of five percent (5%) per annum above the “prime” or “reference” or “base” rate (on a per annum basis) of interest publicly announced as such, from time to time, by the JPMorgan Chase Bank, NA, or its successor, from the due date thereof until paid, and such interest shall be and constitute Additional Rent and be due and payable upon Landlord’s or Agent’s submission of an invoice therefor.  The various rights, remedies and elections of Landlord reserved, expressed or contained herein are cumulative and no one of them shall be deemed to be exclusive of the others or of such other rights, remedies, options or elections as are now or may hereafter be conferred upon Landlord by law.

 

  

  

  

  

 

22.4.           Event of Bankruptcy.  In addition to, and in no way limiting the other remedies set forth herein, Landlord and Tenant agree that if Tenant ever becomes the subject of a voluntary or involuntary bankruptcy, reorganization, composition, or other similar type proceeding under the federal bankruptcy laws, as now enacted or hereinafter amended, then:  (a) “adequate assurance of future performance” by Tenant pursuant to Bankruptcy Code Section 365 will include (but not be limited to) payment of an additional/new security deposit in the amount of three times the then current Base Rent payable hereunder; (b) any person or entity to which this Lease is assigned, pursuant to the provisions of the Bankruptcy Code, shall be deemed, without further act or deed, to have assumed all of the obligations of Tenant arising under this Lease on and after the effective date of such assignment, and any such assignee shall, upon demand by Landlord, execute and deliver to Landlord an instrument confirming such assumption of liability; (c) notwithstanding anything in this Lease to the contrary, all amounts payable by Tenant to or on behalf of Landlord under this Lease, whether or not expressly denominated as “Rent”, shall constitute “rent” for the purposes of Section 502(b)(6) of the Bankruptcy Code; and (d) if this Lease is assigned to any person or entity pursuant to the provisions of the Bankruptcy Code, any and all monies or other considerations payable or otherwise to be delivered to Landlord or Agent (including Base Rent, Additional Rent and other amounts hereunder), shall be and remain the exclusive property of Landlord and shall not constitute property of Tenant or of the bankruptcy estate of Tenant.  Any and all monies or other considerations constituting Landlord’s property under the preceding sentence not paid or delivered to Landlord or Agent shall be held in trust by Tenant or Tenant’s bankruptcy estate for the benefit of Landlord and shall be promptly paid to or turned over to Landlord.

 

22.5.           WAIVER OF NOTICE UNDER PENNSYLVANIA LANDLORD AND TENANT ACT.  IF PROCEEDINGS ARE COMMENCED BY LANDLORD TO RECOVER POSSESSION UNDER THE ACTS OF ASSEMBLY AND RULES OF CIVIL PROCEDURE, UPON THE EXPIRATION OR EARLIER TERMINATION OF THE TERM, OR FOR NON-PAYMENT OF RENT OR ANY OTHER REASON, TENANT SPECIFICALLY WAIVES THE RIGHT TO THE NOTICES REQUIRED BY THE LANDLORD AND TENANT ACT OF 1951, AS THE SAME MAY BE AMENDED, AND AGREES THAT TEN (10) DAYS' NOTICE SHALL BE SUFFICIENT IN ALL CASES, EXCEPT WHERE OTHERWISE PROVIDED HEREIN.

 

23.           BROKER.  Tenant covenants, warrants and represents that the broker set forth in Section 1.7(A) was the only broker to represent Tenant in the negotiation of this Lease (“Tenant’s Broker”).  Landlord covenants, warrants and represents that the broker set forth in Section 1.7(B) was the only broker to represent Landlord in the negotiation of this Lease (“Landlord’s Broker”).  Landlord shall be solely responsible for paying the commission of Landlord’s Broker and Tenant’s Broker.  Each party agrees to and hereby does defend, indemnify and hold the other harmless against and from any brokerage commissions or finder’s fees or claims therefor by a party claiming to have dealt with the indemnifying party and all costs, expenses and liabilities in connection therewith, including, without limitation, reasonable attorneys’ fees and expenses, for any breach of the foregoing.  The foregoing indemnification shall survive the termination or expiration of this Lease.

 

24.           MISCELLANEOUS.

 

24.1.           Merger.  All prior understandings and agreements between the parties are merged in this Lease, which alone fully and completely expresses the agreement of the parties.  No agreement shall be effective to modify this Lease, in whole or in part, unless such agreement is in writing, and is signed by the party against whom enforcement of said change or modification is sought.

 

24.2.           Notices.  Any notice required to be given by either party pursuant to this Lease, shall be in writing and shall be deemed to have been properly given, rendered or made only if (a) personally delivered, or (b) if sent by Federal Express or other comparable commercial overnight delivery service, or (c) sent by certified mail, return receipt requested and postage prepaid addressed (in the case of any or all of (a), (b) and (c) above) to the other party at the addresses set forth below each party’s respective signature block (or to such other address as Landlord or Tenant may designate to each other from time to time by written notice), and shall be deemed to have been given, rendered or made (i) on the day so delivered or (ii) in the case of overnight courier delivery on the first business day after having been deposited with the courier service, and (iii) in the case of certified mail, on the third (3rd) business day after deposit with the U.S. Postal Service, postage prepaid.

 

24.3.           Non-Waiver.  The failure of either party to insist, in any one or more instances, upon the strict performance of any one or more of the obligations of this Lease, or to exercise any election herein contained, shall not be construed as a waiver or relinquishment for the future of the performance of such one or more obligations of this Lease or of the right to exercise such election, but the Lease shall continue and remain in full force and effect with respect to any subsequent breach, act or omission.  The receipt and acceptance by Landlord or Agent of Base Rent or Additional Rent with knowledge of any breach by Tenant of any obligation of this Lease shall not be deemed a waiver of such breach.

 

  

  

  

  

24.4.           Legal Costs.  Any party in breach or default under this Lease (the “Defaulting Party”) shall reimburse the other party (the “Nondefaulting Party”) upon demand for any legal fees and court (or other administrative proceeding) costs or expenses that the Nondefaulting Party incurs in connection with the breach or default, regardless whether suit is commenced or judgment entered.  Such costs shall include legal fees and costs incurred for the negotiation of a settlement, enforcement of rights or otherwise.  Furthermore, in the event of litigation, the court in such action shall award to the party in whose favor a judgment is entered a reasonable sum as attorneys’ fees and costs, which sum shall be paid by the losing party. Tenant shall pay Landlord’s attorneys’ reasonable fees incurred in connection with Tenant’s request for Landlord’s consent under provisions of this Lease governing assignment and subletting, or in connection with any other act which Tenant proposes to do and which requires Landlord’s consent.

 

24.5.           Parties Bound.  Except as otherwise expressly provided for in this Lease, this Lease shall be binding upon, and inure to the benefit of, the successors and assignees of the parties hereto.  Tenant hereby releases Landlord named herein from any obligations of Landlord for any period subsequent to the conveyance and transfer of Landlord’s ownership interest in the Premises.  In the event of such conveyance and transfer, Landlord’s obligations hereunder shall thereafter be binding upon each transferee (whether Successor Landlord or otherwise).  No obligation of Landlord shall arise under this Lease until the instrument is signed by, and delivered to, both Landlord and Tenant.

 

24.6.           Recordation of Lease.  Tenant shall not record or file this Lease (or any memorandum hereof) in the public records of any county or state.

 

24.7.           Governing Law; Construction.  This Lease shall be governed by and construed in accordance with the laws of the state in which the Premises is located.  If any provision of this Lease shall be invalid or unenforceable, the remainder of this Lease shall not be affected but shall be enforced to the extent permitted by law.  The captions, headings and titles in this Lease are solely for convenience of reference and shall not affect its interpretation.  This Lease shall be construed without regard to any presumption or other rule requiring construction against the party causing this Lease to be drafted.  Each covenant, agreement, obligation, or other provision of this Lease to be performed by Tenant, shall be construed as a separate and independent covenant of Tenant, not dependent on any other provision of this Lease.  All terms and words used in this Lease, regardless of the number or gender in which they are used, shall be deemed to include any other number and any other gender as the context may require.

 

24.8.           Time.  Time is of the essence for this Lease.  If the time for performance hereunder falls on a Saturday, Sunday or a day that is recognized as a holiday in the state in which the Premises is located, then such time shall be deemed extended to the next day that is not a Saturday, Sunday or holiday in said state.

 

24.9.           Authority of Tenant.  Tenant and the person(s) executing this Lease on behalf of Tenant hereby represent, warrant, and covenant with and to Landlord as follows:  the individual(s) acting as signatory on behalf of Tenant is(are) duly authorized to execute this Lease; Tenant has procured (whether from its members, partners or board of directors, as the case may be), the requisite authority to enter into this Lease; this Lease is and shall be fully and completely binding upon Tenant; and Tenant shall timely and completely perform all of its obligations hereunder.

 

24.10.         WAIVER OF TRIAL BY JURY.  LANDLORD AND TENANT, TO THE FULLEST EXTENT THAT THEY MAY LAWFULLY DO SO, HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING BROUGHT BY ANY PARTY TO THIS LEASE WITH RESPECT TO THIS LEASE, THE PREMISES, OR ANY OTHER MATTER RELATED TO THIS LEASE OR THE PREMISES.

 

24.11.         intentionally omitted.

 

24.12.         Confidential Information.  Tenant and Landlord agree to maintain in strict confidence the economic terms of this Lease and any or all other materials, data and information delivered to or received by any or all of Landlord, Tenant and Tenants’ Parties either prior to or during the Term in connection with the negotiation and execution hereof (the “Confidential Information”); provided, however, Landlord may share any Confidential Information with any of its attorneys, accountants, agents, representatives, and prospective purchasers or lenders of the Property.  The provisions of this Section 24.12 shall survive the termination of this Lease.

 

24.13.         Submission of Lease.  Submission of this Lease to Tenant for signature does not constitute a reservation of space or an option to lease.  This Lease is not effective until execution by and delivery to both Landlord and Tenant.

 

  

  

  

  

 

24.14.         Lien Prohibition.  Tenant shall not permit any mechanics or materialmen’s liens to attach to the Premises.  Tenant, at its expense, shall procure the satisfaction or discharge of record of all such liens and encumbrances within 30 days after the filing thereof; or, within such thirty (30) day period, Tenant shall provide Landlord, at Tenant’s sole expense, with endorsements (satisfactory, both in form and substance, to Landlord and the holder of any mortgage or deed of trust) to the existing title insurance policies of Landlord and the holder of any mortgage or deed of trust, insuring against the existence of, and any attempted enforcement of, such lien or encumbrance.  In the event Tenant has not so performed, Landlord may, at its option, pay and discharge such liens and Tenant shall be responsible to reimburse Landlord, on demand and as Additional Rent under this Lease, for all costs and expenses incurred in connection therewith, together with Default Interest thereon, which expenses shall include reasonable fees of attorneys of Landlord’s choosing, and any costs in posting bond to effect discharge or release of the lien as an encumbrance against the Premises.

 

24.15.         Counterparts.  This Lease may be executed in multiple counterparts, but all such counterparts shall together constitute a single, complete and fully-executed document.

 

[Signature Pages Follow]

 

  

  

  

  

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

 

	  	
LANDLORD:

	  	  	  	  	  	  
	  	
FR YORK PROPERTY HOLDING, LP, a Delaware limited partnership

	  	  	  	  	  	  
	  	
By:

	
FR York General Partner, LP, a Delaware limited partnership, its

general partner

	  	  	  	  	  	  
	  	
By:

	
FR York Second, LLC, a Delaware limited liability company, its

general partner

	  	  	  	  	  	  
	  	
By:

	
FR York, LLC, a Delaware limited liability company, its sole

member

	  	  	  	  	  	  
	  	
By:

	
First Industrial Investment, Inc., a Maryland corporation, its sole

member

	  	  	  	  	  	  
	  	
By:

	  	
/s/ Richard Czerwinski      

	  	
Name:

	  	
Richard Czerwinski

	  	
Its:

	  	
National Director Leasing & Asset Management

	  	  	  	  	  	  
	  	
DATE: __________________________________

	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	
TENANT:

	  	  	  	  	  	  
	  	
UNITED NATURAL FOODS, INC., a Delaware corporation

	  	  	  	  	  	  
	  	
By:

	
/s/ Mark E. Shamber            

	  
	  	
Its:

	
Vice-President, CFO and Treasurer   

	  

	
Landlord’s Addresses for Notices:

	
Tenant’s Addresses for Notices:

	
c/o First Industrial Realty Trust, Inc.

	
United Natural Foods, Inc.

	
311 South Wacker Drive, Suite 4000

	
260 Lake Road

	
Chicago, Illinois  60606

	
Dayville, Connecticut 06241

	
Attn: Executive Vice President-Operations

	
Attn: Thomas A. Dziki, Vice President

	  	  
	
With a copy to:

	
With a copy (which shall not constitute notice) to:

	
c/o First Industrial Realty Trust, Inc.

	
Joseph A. Anesta, Esq.

	
2780 Commerce Drive, Suite 100

	
Cameron & Mittleman LLP 

	
Middletown, Pennsylvania  17057

	
56 Exchange Terrace

	
Attn:  Regional Director

	
Providence, Rhode Island 02903

	  	  
	
With a copy to:

	  
	  	  
	
Barack Ferrazzano Kirschbaum & Nagelberg, LLP

	  
	
200 West Madison Street, Suite 3900

	  
	
Chicago, Illinois  60606

	  
	
Attn:  Suzanne Bessette-Smith

	  

  

  

  

  

EXHIBIT A

 

Premises

 

ATTACH APPROPRIATE LEGAL DESCRIPTION

 

 

A-1  

  

  

LEASE EXHIBIT B

 

TENANT OPERATIONS INQUIRY FORM

 

	
1.

	
Name of Company/Contact_______________________________________________________________________

	 	 
	
2.

	
Address/Phone________________________________________________________________________________

	
  

	
____________________________________________________________________________________________

	 	 
	
3.

	
Provide a brief description of your business and operations: ______________________________________________

	
  

	
____________________________________________________________________________________________

	
  

	
____________________________________________________________________________________________

	 	
____________________________________________________________________________________________

	 	
____________________________________________________________________________________________

	 	 
	
4.

	
Will you be required to make filings and notices or obtain permits as required by Federal and/or State regulations for the operations at the proposed facility?  Specifically:

 

a. SARA Title III Section 312 (Tier II) reports                                                                                                YES           NO

(> 10,000lbs. of hazardous materials STORED at any one time)

 

b. SARA Title III Section 313 (Tier III) Form R reports                                                                                 YES           NO

(> 10,000lbs. of hazardous materials USED per year)

 

c. NPDES or SPDES Stormwater Discharge permit                                                                                        YES           NO

(answer “No” if “No-Exposure Certification” filed)

 

d. EPA Hazardous Waste Generator ID Number                                                                                           YES           NO

5.           Provide a list of chemicals and wastes that will be used and/or generated at the proposed location. Routine office and cleaning supplies are not included. Make additional copies if required.

 

	
Chemical/Waste

	
Approximate 

Annual Quantity 

Used or Generated

	
Storage Container(s)

(i.e. Drums, Cartons, Totes, 

Bags, ASTs, USTs, etc)

	  	  	  
	  	  	  
	  	  	  
	  	  	  

 

B-1  

  

  

LEASE EXHIBIT C

 

Tenant Improvements

 

This Exhibit C sets forth the rights and obligations of Landlord and Tenant with respect to the construction of the Tenant Improvements.  Capitalized terms used herein, unless otherwise defined in this Exhibit C, shall have the respective meanings ascribed to them in the Lease.  The initial floor plan for the Tenant Improvements is attached hereto as Exhibit C-1. 

 

1.           Tenant Improvements.

 

Tenant shall engage a duly licensed and reputable contractor (the “Contractor”) to construct and install the Tenant Improvements in the Premises provided for in the Approved Plans (defined below), all at Tenant’s sole cost and expense.

 

2.           Pre-Construction Activities.

 

(a)           On or before Tenant commences any work in the Premises, Tenant shall submit the following information and items to Landlord for Landlord's review and approval:

 

(i)           Certified copies of insurance policies or certificates of insurance as hereinafter described.  Tenant shall not permit the Contractor or any of Tenant’s Contractors to commence work until the required insurance has been obtained and certified copies of policies of insurance or certificates thereof have been delivered to Landlord.

 

(ii)           The Plans (defined below) for the Tenant Improvements, which Plans shall be subject to Landlord's approval in accordance with Paragraph 2(b) below.

 

(iii)           All necessary building permits have been applied for and obtained by Tenant.

 

Tenant will update such information and items by written notice to Landlord of any changes.

 

(b)           As used herein the term “Approved Plans” shall mean the Plans (defined below), as and when approved in writing by Landlord.  As used herein, the term “Plans” shall mean the full and detailed architectural and engineering plans and specifications covering the Tenant Improvements (including, without limitation, architectural, mechanical and electrical working drawings for the Tenant Improvements).  The Plans shall be subject to Landlord's approval and the approval of all local governmental authorities requiring approval of the Tenant Improvements and the Approved Plans.  Landlord agrees not to unreasonably withhold, delay or condition its approval of said Plans and to provide with reasonable specificity the basis for any disapproval.  If Landlord notifies Tenant that changes are required to the final Plans submitted by Tenant, Tenant shall submit to Landlord, for its approval, the Plans amended in accordance with the changes so required.  The Plans shall also be revised, and the Tenant Improvements shall be changed, all at Tenant's cost and expense, to incorporate any work required in the Premises by any local governmental field inspector.  Landlord's approval of the Plans shall in no way be deemed to be (x) an acceptance or approval of any element therein contained which is in violation of any applicable laws, ordinances, regulations or other governmental requirements, or (y) an assurance that work done pursuant to the Approved Plans will comply with all applicable law (or with the interpretations thereof) or satisfy Tenant's objectives and needs.

 

3.           Change Orders.

 

All changes to the Approved Plans requested by Tenant must be approved by Landlord in advance of the implementation of such changes as part of the Tenant Improvements.

 

4.           Standards Of Design and Construction and Conditions of Tenant’s Performance.

 

All Tenant Improvements done in or upon the Premises by Tenant shall be done according to the standards set forth in this Exhibit C, except as the same may be modified in the Approved Plans.

 

(a)           Tenant's Approved Plans and all design and construction of the Tenant Improvements shall comply with all legal requirements and industry standards, including, but not limited to, requirements of Landlord's fire insurance underwriters.

 

  

C-1

  

  

(b)           Tenant shall use only new, first-class materials in the Tenant Improvements, except where explicitly shown in the Approved Plans. All Tenant Improvements shall be constructed and installed in a good and workmanlike manner.

 

(c)           Tenant shall permit Landlord to have access to the Premises, and the Tenant Improvements shall be subject to inspection by Landlord and Landlord's architects, engineers, contractors and other representatives, at all times during the period in which the Tenant Improvements is being constructed and installed and following completion of the Tenant Improvements.

 

Tenant shall impose on and enforce all applicable terms of this Exhibit C against Tenant's architect and the Contractor.

 

5.           Insurance and Indemnification.

 

(a)           In addition to any insurance which may be required under the Lease, Tenant shall secure, pay for and maintain or cause the Contractor and all subcontractors (collectively, “Tenant’s Contractors”) to secure, pay for and maintain during the continuance of construction and fixturing work within the Premises, insurance in the following minimum coverages and the following minimum limits of liability:

 

(i)           Worker's Compensation and Employer's Liability Insurance with limits of not less than $500,000.00, or such higher amounts as may be required from time to time by any Employee Benefits Act or other statutes applicable where the work is to be performed, and in any event sufficient to protect Tenant's Contractors from liability under the aforementioned acts.

 

(ii)           Comprehensive General Liability Insurance (including Contractor's Protective Liability) in commercially reasonable amounts given the scope of the work to be performed by each of Tenant’s Contractors.  Such insurance shall provide for explosion and collapse, completed operations coverage and broad form blanket contractual liability coverage and shall insure Tenant's Contractors against any and all claims for bodily injury, including death resulting therefrom, and damage to the property of others and arising from its operations under the contracts whether such operations are performed by Tenant's Contractors or by anyone directly or indirectly employed by any of them.

 

(iii)           Comprehensive Automobile Liability Insurance, including the ownership, maintenance and operation of any automotive equipment, owned, hired, or non-owned in an amount not less than $500,000.00 for each person in one accident, and $1,000,000.00 for injuries sustained by two or more persons in any one accident and property damage liability in an amount not less than $1,000,000.00 for each accident.  Such insurance shall insure Tenant's Contractors against any and all claims for bodily injury, including death resulting therefrom, and damage to the property of others arising from its operations under the contracts, whether such operations are performed by Tenant's Contractors, or by anyone directly or indirectly employed by any of them.

 

(iv)           “All-risk” builder's risk insurance covering the Tenant Improvements to the full insurable value thereof. This insurance shall include the interests of Landlord and Tenant (and their respective contractors and subcontractors to the extent of any insurable interest therein) in the Tenant Improvements and shall insure against the perils of fire and extended coverage and shall include “all-risk” builder's risk insurance for physical loss or damage including, without duplication of coverage, theft vandalism and malicious mischief.  Any loss insured under said “all-risk” builder's risk insurance is to be adjusted with Landlord and Tenant and made payable to Landlord, as trustee for the insureds, as their interests may appear.

 

All policies (except the worker's compensation policy) shall be endorsed to include Landlord as an additional insured.  The waiver of subrogation provisions contained in the Lease shall apply to all insurance policies (except the workmen's compensation policy) to be obtained by Tenant pursuant to this paragraph. The insurance policy endorsements shall also provide that all additional insured parties shall be given thirty (30) days' prior written notice of any reduction, cancellation or non-renewal of coverage (except that ten (10) days' notice shall be sufficient in the case of cancellation for non-payment of premium) and shall provide that the insurance coverage afforded to the additional insured parties thereunder shall be primary to any insurance carried independently by said additional insured parties. Additionally, where applicable. each policy shall contain a cross-liability and severability of interest clause.

 

(b)           Without limiting the indemnification provisions in the Lease, to the fullest extent permitted by law, Tenant agrees to indemnify, protect, defend and hold harmless Landlord, the parties listed, or required by, the Lease to be named as additional insureds, and their respective beneficiaries, partners, directors, officers, employees and agents, from and against all claims, liabilities, losses,

 

  

C-2

  

  

damages and expenses of whatever nature arising out of or in connection with the Tenant Improvements or the entry of Tenant or Tenant's Contractors into the Building and the Premises, including, without limitation, mechanics liens, the cost of any repairs to the Premises or Building necessitated by activities of Tenant or Tenant's Contractors, bodily injury to persons or damage to the property of Tenant, its employees, agents, invitees. licensees or others. It is understood and agreed that the foregoing indemnity shall be in addition to the insurance requirements set forth above and shall not be in discharge of or in substitution for same or any other indemnity or insurance provision of the Lease.

 

6.           Lien Waivers.

 

Tenant shall cause the Contractor and Tenant’s Contractors to provide such contractor's affidavits, partial and final waivers of lien, architect's certificates and any additional documentation (including, without limitation, Contractor’s or Tenant’s Contractor’s personal undertakings) which may be reasonably requested by Landlord.  Upon completion of the Tenant Improvements, Tenant shall furnish Landlord with full and final waivers of liens and contractor's affidavits and statements, in such form as may be reasonably required by Landlord, Landlord's title insurance company and Landlord's construction or permanent lender, if any, from all parties performing labor or supplying materials or services in connection with the Tenant Improvements showing that all of said parties have been compensated in full and waiving all liens in connection with the Premises and Building. Tenant shall submit to Landlord a detailed breakdown of Tenant's total construction costs, together with such evidence of payment as is reasonably satisfactory to Landlord.

 

7.           Roof Work.

 

In the event any portion of the Tenant Improvements are to be performed on the roof of the Building (“Roof Work”), Tenant must first obtain Landlord shall written approval of such Roof Work and the proposed manner of such Roof Work, which shall not be unreasonably withheld. The installation of any Roof Work shall be performed by Landlord’s designated contractor(s), and any Roof Work related to roof penetration or patching of the roof shall be undertaken only by Landlord’s designated roofing contractor, all at Tenant’s sole cost and expense. Tenant shall not do or permit anything which would void any warranty of the roof.  Tenant shall not be permitted to have access to the roof of the Building without a representative of Landlord present. Tenant shall also be responsible, at Tenant’s sole cost and expense, for the purchase, installation, maintenance, repair, replacement and removal of the Roof Work and Tenant shall at all times, at Tenant’s sole cost and expense, maintain the Roof Work in good condition and repair utilizing Landlord’s designated contractor(s).  If any utilities or services are required for the operation of the Roof Work , all such utilities and services shall be arranged by Tenant (subject to Landlord’s prior written approval thereof) and shall be at Tenant’s sole cost and expense.  All costs and expenses of whatever nature under this Section 7 shall be borne by Tenant at it’s sole cost and expense. Notwithstanding anything to the contrary contained in this Lease, Tenant shall be solely responsible for any and all damage caused (whether to person or property) by the Roof Work and/or Tenant’s installation, operation, service, maintenance or removal thereof. In the event any provisions of this Lease conflict with or are inconstant with any terms of this Lease, the terms of this Section shall control.

 

  

C-3

  

  

LEASE EXHIBIT D

 

CONFIRMATION OF COMMENCEMENT DATE

 

[Date]

 

[Tenant’s Name and Address]

 

 

RE:           [Describe lease, by title and date (the “Lease”); name Landlord and Tenant]

 

Dear [Name of Contact Person at Tenant]:

 

This letter shall confirm that the Commencement Date for the above-referenced Lease is [specify Commencement Date].

 

[Name of Tenant], as Tenant, hereby acknowledges the following:  (i) Tenant is in possession of the Premises (as defined in the Lease); (ii) the Lease is in full force and effect; (iii) Landlord is not in default under the Lease; and (iv) possession of the Premises is accepted by Tenant as having been delivered in accordance with the terms and conditions of the Lease.

 

Our records indicate the following information for the [Number of square feet comprising Premises] square feet of space:

 

	
Commencement Date:

	
____________________ 200__

	 	 
	
Base Rent Commencement Date:

	
____________________ 200__

	 	 
	
Next Monthly Base Rent Due:

	
____________________ 200__

	 	 
	
Operating Expense Commencement Date:

	
____________________ 200__

	 	 
	
Lease Expiration Date:

	
____________________ 200__

 

Please sign two (2) copies of this letter in the space provided below acknowledging your agreement with the above and return them to me at my office.  I suggest you attach a copy of this letter to your copy of the Lease.

 

Thank you again for your cooperation and assistance regarding this matter.  Please contact me at any time should you have questions regarding the lease, building, or any related manner.

 

	
Sincerely,

	
Acknowledged and Agreed to this ___ day of __________________, 20____

	 	 
	
[Name]

Property Manager

	
[Name of Tenant]

 

By:           ___________________________________

Title:        ___________________________________

 

 

  

D-1  

  

  

LEASE EXHIBIT E

 

Broom Clean Condition and Repair Requirements

 

Reasonable wear and tear excepted:

 

	
·

	
All lighting is to be placed into good working order.  This includes replacement of bulbs, ballasts, and lenses as needed.

 

	
·

	
All truck doors and dock levelers should be serviced and placed in good operating order (including, but not limited to, overhead door springs, rollers, tracks and motorized door operator).  This would include the necessary (a) replacement of any dented truck door panels, broken panels and cracked lumber, and (b) adjustment of door tension to insure proper operation.  All door panels that are replaced shall be painted to match the building standard.

 

	
·

	
All structural steel columns in the warehouse and office should be inspected for damage, and must be repaired.  Repairs of this nature shall be pre-approved by the Landlord prior to implementation.

 

	
·

	
HVAC system shall be in good working order, including the necessary replacement of any parts to return the unit to a well-maintained condition.  This includes, but is not limited to, filters, thermostats, warehouse heaters and exhaust fans.  Upon move-out, Landlord will have an exit inspection performed by a certified mechanical contractor to determine the condition of the HVAC system.

 

	
·

	
All holes in the sheet rock walls shall be repaired prior to move-out.  All walls shall be clean.

 

	
·

	
The carpets and vinyl tiles shall be in a clean condition and shall not have any holes or chips in them.  Flooring shall be free of excessive dust, dirt, grease, oil and stains.  Cracks in concrete and asphalt shall be acceptable as long as they are ordinary wear and tear, and are not the result of misuse.

 

	
·

	
Facilities shall be returned in a clean condition, including, but not limited to, the cleaning of the coffee bar, restroom areas, windows, and other portions of the Premises.

 

	
·

	
There shall be no protrusion of anchors from the warehouse floor and all holes shall be appropriately patched.  If machinery/equipment is removed, the electrical lines shall be properly terminated at the nearest junction box.

 

	
·

	
All exterior windows with cracks or breakage shall be replaced.  All windows shall be clean.

 

	
·

	
Tenant shall provide keys for all locks on the Premises, including front doors, rear doors, and interior doors.

 

	
·

	
All mechanical and electrical systems shall be left in a safe condition that conforms to code.    Bare wires and dangerous installations shall be corrected to Landlord’s reasonable satisfaction.

 

	
·

	
All plumbing fixtures shall be in good working order, including, but not limited to, the water heater.  Faucets and toilets shall not leak.

 

	
·

	
All dock bumpers shall be left in place and well-secured.

 

	
·

	
Drop grid ceiling shall be free of excessive dust from lack of changing filters.  No ceiling tiles may be missing or damaged.

 

	
·

	
All trash shall be removed from both inside and outside of the building.

 

	
·

	
All signs in front of building and on glass entry door and rear door shall be removed.

 

 

  

E-1  

  

  

LEASE EXHIBIT F

 

Signage Plan

 

 

See Attached

 

  

F-1  

  

  

 

 

 

 

 

  

F-2

 

  

 

 

  

F-3

 

  

 

 

  

F-4

 

  

 

 

  

F-5

 

  

 

 

  

F-6

 

  

 

 

  

F-7

 

  

 

 

  

F-8

 

  

 

 

  

F-9

  

 

 

  

F-10

 

  

 

 

  

F-11

 

  

 

 

  

F-12

 

  

 

 

  

F-13

 

  

 

 

  

F-14

 

  

 

 

  

F-15

 

  

 

 

 

  

F-16

 

  

 

ADDENDUM 1

 

RENEWAL OPTION

 

1.      Tenant shall have the option (“Renewal Option”) to renew this Lease for two (2) consecutive terms of five (5) years each (each, a “Renewal Term”), on all the same terms and conditions set forth in this Lease, except that Base Rent during each Renewal Term shall be equal to Fair Market Rent (as defined in Section 2 below). Tenant shall deliver written notice to Landlord of Tenant’s election to exercise the Renewal Option (“Renewal Notice”) not less than nine (9) months, nor more than twelve (12) months, prior to the expiration date of the original Term or the then-current Renewal Term, as applicable; and if Tenant fails to timely deliver the Renewal Notice to Landlord, then Tenant shall automatically be deemed to have irrevocably waived and relinquished the Renewal Option.

 

2.       “Fair Market Rent” shall be determined by Landlord, in its sole, but good faith, discretion based upon the annual base rental rates then being charged (as of the date on which Tenant delivers the applicable Renewal Notice) in the industrial market sector of the geographic area where the Building is situated for comparable space (provided, however, that comparable space shall be deemed to be “dry” warehouse space and shall exclude the value of any Tenant improvements) and for a lease term commencing on or about the commencement date of the applicable Renewal Term and equal in duration to the applicable Renewal Term, taking into consideration:  the geographic location, quality and age of the building; the location and configuration of the relevant space within the applicable building; the extent of service to be provided to the proposed tenant thereunder; applicable distinctions between “gross” lease and “net” leases; the creditworthiness and quality of Tenant; leasing commissions; and any other relevant term or condition in making such evaluation, as reasonably determined by Landlord.  In no event, however (and notwithstanding any provision to the contrary in Section 3 below), shall the Fair Market Rent ever be less than the rate of Base Rent in effect as of the expiration date of the original Term or the first Renewal Term, as applicable (the “Renewal Rent Floor”).  Landlord shall notify Tenant of Landlord’s determination of Fair Market Rent for the Renewal Term, in writing (the “Base Rent Notice”) within thirty (30) days after receiving the applicable Renewal Notice.

 

3.      Tenant shall then have fifteen (15) days after Landlord’s delivery of the Base Rent Notice in which to advise Landlord, in writing (the “Base Rent Response Notice”) whether Tenant (i) is prepared to accept the Fair Market Rent established by Landlord in the Base Rent Notice and proceed to lease the Premises, during the Renewal Term, at that Fair Market Rent; or (ii) elects to withdraw and revoke its Renewal Notice, whereupon the Renewal Option shall automatically be rendered null and void; or (iii) elects to contest Landlord’s determination of Fair Market Rent.  In the event that Tenant fails to timely deliver the Base Rent Response Notice, then Tenant shall automatically be deemed to have elected (i) above.  Alternatively, if Tenant timely elects (ii), then this Lease shall expire on the original expiration date of the initial Term or the then current Renewal Term, as applicable.  If, however, Tenant timely elects (iii), then the following provisions shall apply:

 

	
  

	
a.

	
The Fair Market Rent shall be determined by either the Independent Brokers or the Determining Broker, as provided and defined below, but in no event shall the Fair Market Rent be less than the Renewal Rent Floor.

 

	
  

	
b.

	
Within fifteen (15) days after Tenant delivers its Base Rent Response Notice, electing (iii), each of Landlord and Tenant shall advise the other, in writing (the “Arbitration Notice”) of both (i) the identity of the individual that each of Landlord and Tenant, respectively, is designating to act as Landlord’s or Tenant’s, as the case may be, duly authorized representative for purposes of the determination of Fair Market Rent pursuant to this Section 3 (the “Representatives”); and (ii) a list of three (3) proposed licensed real estate brokers, any of which may serve as one of the Independent Brokers (collectively, the “Broker Candidates”).  Each Broker Candidate:

 

	
  

	
i.

	
shall be duly licensed in the jurisdiction in which the Premises is located;

 

	
  

	
ii.

	
shall have at least five (5) years’ experience, on a full-time basis, leasing industrial space (warehouse/distribution/ancillary office) in the same general geographic area as that in which the Premises is located, and at least three (3) of those five (5) years of experience shall have been consecutive and shall have elapsed immediately preceding the date on which Tenant delivers the Renewal Notice; and

 

  

Addendum 1-1

  

  

	
  

	
iii.

	
shall be independent and have no then-pending (as of the date Landlord or Tenant designates the broker as a Broker Candidate) brokerage relationship, formal or informal, oral or written, with any or all of Landlord, Tenant, and any affiliates of either or both of Landlord and Tenant (“Brokerage Relationship”), nor may there have been any such Brokerage Relationship at any time during the two (2) year period immediately preceding the broker’s designation, by Landlord or Tenant, as a Broker Candidate.

 

	
  

	
c.

	
Within fifteen (15) days after each of Landlord and Tenant delivers its Arbitration Notice to the other, Landlord and Tenant shall cause their respective Representatives to conduct a telephonic meeting at a mutually convenient time.  At that meeting, the two (2) Representatives shall examine the list of six (6) Broker Candidates and shall each eliminate two (2) names from the list on a peremptory basis.  In order to eliminate four (4) names, first, the Tenant’s Representative shall eliminate a name from the list and then the Landlord’s Representative shall eliminate a name therefrom.  The two (2) Representatives shall alternate in eliminating names from the list of six (6) Broker Candidates in this manner until each of them has eliminated two (2) names.  The two (2) Representatives shall immediately contact the remaining two (2) Broker Candidates (the “Independent Brokers”), and engage them, as behalf of Landlord and Tenant, to determine the Fair Market Rent in accordance with the provisions of this Section 3.

 

	
  

	
d.

	
The Independent Brokers shall determine the Fair Market Rent within thirty (30) days of their appointment.  Landlord and Tenant shall each make a written submission to the Independent Brokers (no more than ten (10) pages in length, in the aggregate, per submitting party), advising of the rate that the submitting party believes should be the Fair Market Rate, together with whatever written evidence or supporting data that the submitting party desires in order to justify its desired rate of Fair Market Rent; provided, in all events, however, that the aggregate maximum length of each party’s submission shall not exceed ten (10) pages (each such submission package, a “FMR Submission”).  The Independent Brokers shall be obligated to choose one (1) of the parties’ specific proposed rates of Fair Market Rent, without being permitted to effectuate any compromise position.

 

	
  

	
e.

	
In the event, however, that the Independent Brokers fail to reach agreement, within twenty (20) days after the date on which both Landlord and Tenant deliver the FMR Submissions to the Independent Brokers (the “Decision Period”), as to which of the two (2) proposed rates of Fair Market Rent should be selected, then, within five (5) days after the expiration of the Decision Period, the Independent Brokers shall jointly select a real estate broker who (x) meets all of the qualifications of a Broker Candidate, but was not included in the original list of six (6) Broker Candidates; and (y) is not affiliated with any or all of (A) either or both of the Independent Brokers and (B) the real estate brokerage companies with which either or both of the Independent Brokers is affiliated (the “Determining Broker”).  The Independent Brokers shall engage the Determining Broker on behalf of Landlord and Tenant (but without expense to the Independent Brokers), and shall deliver the FMR Submissions to the Determining Broker within five (5) days after the date on which the Independent Brokers select the Determining Broker pursuant to the preceding sentence (the “Submission Period”).

 

	
  

	
f.

	
The Determining Broker shall make a determination of the Fair Market Rent within twenty (20) days after the date on which the Submission Period expires.  The Determining Broker shall be required to select one of the parties’ specific proposed rates of Fair Market Rent, without being permitted to effectuate any compromise position.

 

	
  

	
g.

	
The decision of the Independent Brokers or the Determining Broker, as the case may be, shall be conclusive and binding on Landlord and Tenant, and neither party shall have any right to contest or appeal such decision.  Judgment may be entered, in a court of competent jurisdiction, upon the decision of the Independent Brokers or the Determining Broker, as the case may be.

 

  

Addendum 1-2

  

  

	
  

	
h.

	
In the event that the initial Term expires and the Renewal Term commences prior to the date on which the Independent Brokers or the Determining Broker, as the case may be, renders their/its decision as to the Fair Market Rent, then from the commencement date of the Renewal Term through the date on which the Fair Market Rent is determined under this Section 3 (the “Determination Date”), Tenant shall pay monthly Base Rent to Landlord at a rate equal to 110% of the rate of monthly Base Rent in effect on the expiration date of the initial Term (the “Temporary Base Rent”).  Within ten (10) business days after the Determination Date, Landlord shall pay to Tenant, or Tenant shall pay to Landlord, depending on whether the Fair Market Rent is less than or greater than the Temporary Base Rent, whatever sum that Landlord or Tenant, as the case may be, owes the other (the “Catch-Up Payment”), based on the Temporary Base Rent actually paid and the Fair Market Rent due (as determined by the Independent Brokers or the Determining Broker, as the case may be) during that portion of the Renewal Term that elapses before the Catch-Up Payment is paid, in full (together with interest thereon, as provided below).  The Catch-Up Payment shall bear interest at the rate of Prime (defined below), plus five percent (5.0%) per annum from the date each monthly component of the Catch-Up Payment would have been due, had the Fair Market Rent been determined prior to the commencement of the Renewal Term, through the date on which the Catch-Up Payment is paid, in full (inclusive of interest thereon).  For purposes hereof, “Prime” shall mean the per annum rate of interest publicly announced by JPMorgan Chase Bank, N.A. (or its successor), from time to time, as its “prime” or “base” or “reference” rate of interest.

 

	
  

	
i.

	
The party whose proposed rate of Fair Market Rent is not selected by the Independent Brokers or the Determining Broker, as the case may be, shall bear all costs of all counsel, experts or other representatives that are retained by both parties, together with all other costs of the arbitration proceeding described in this Section 3, including, without limitation, the fees, costs and expenses imposed or incurred by any or all of the Independent Brokers and the Determining Broker.

 

	
  

	
j.

	
Unless otherwise expressly agreed in writing, during the period of time that any arbitration proceeding is pending under this Section 3, Landlord and Tenant shall continue to comply with all those terms and provisions of this Lease that are not the subject of their dispute and arbitration proceeding, most specifically including, but not limited to, Tenant’s monetary obligations under this Lease; and, with respect to the payment of Base Rent during that portion of the Renewal Term that elapses during the pendency of any arbitration proceeding under this Section 3, the provisions of Section 3(h) shall apply.

 

	
  

	
k.

	
During any period of time that an arbitration is pending or proceeding under this Section 3, Tenant shall have no right to assign this Lease or enter into any sublease for all or any portion of the Premises, notwithstanding any provision to the contrary in this Lease.  Furthermore, if this Lease requires that Landlord perform any tenant improvement work in connection with the Renewal Term, Landlord shall be relieved of any such obligation during the pendency of any arbitration proceeding under this Section 3.

 

	
  

	
4.

	
The Renewal Option is granted subject to all of the following conditions:

 

	
  

	
a.

	
As of the date on which Tenant delivers its Renewal Notice and continuing through the commencement date of the Renewal Term, this Lease shall be in full force and effect and no act or omission shall occur which, with the giving of notice or the passage of time, or both, shall constitute a breach or default by Tenant under this Lease.

 

	
  

	
b.

	
There shall be no further right of renewal after the expiration of the second Renewal Term.

 

	
  

	
c.

	
The Renewal Option is personal to Tenant.  In the event that Tenant assigns its interest under this Lease or subleases all or any portion of the Premises, whether or not in accordance with the requirements of this Lease, and whether directly or indirectly, the provisions of this Addendum A, shall not be available to, or run to the benefit of, and may not be exercised by, any assignee or sublessee.

 

 

  

Addendum 1-3

  

  

ADDENDUM 2

 

PURCHASE OPTION

 

ADDENDUM TO INDUSTRIAL BUILDING LEASE

BY AND BETWEEN FR YORK PROPERTY HOLDING, LP (“LANDLORD”)

AND UNITED NATURAL FOODS, INC. (“TENANT”)

 

1.           Defined Terms.  Capitalized terms used in this Addendum and not otherwise defined shall have the meanings respectively ascribed to such terms in the Lease.

 

2.           Grant of Purchase Option.  Landlord hereby grants to Tenant a one time option to purchase (the “Purchase Option”) the Premises on the terms and conditions hereinafter set forth.  This Purchase Option shall expire, and the rights of Tenant hereunder shall irrevocably terminate, upon the sooner to occur of:  (i) December 31, 2009 (the “Option Exercise Date”) unless Tenant has delivered an Option Exercise Notice (as hereinafter defined) to Landlord on or prior to such date; (ii) the expiration or sooner termination of the Lease; (iii) any breach, default or failure of performance by Tenant pursuant to the Lease beyond any applicable notice and cure periods; or (iv) the failure by Tenant to proceed to the Option Closing (as hereinafter defined) after having exercised this Purchase Option.

 

3.           Exercise of Purchase Option.  Tenant may exercise this Purchase Option by delivery of written notice to Landlord (an “Option Exercise Notice”) on or prior to the Option Exercise Date.  If Tenant (x) fails to timely deliver an Option Exercise Notice on or prior to the Option Exercise Date, or (y) timely delivers an Option Exercise Notice but fails to simultaneously deposit the Earnest Money (as hereinafter defined) with Landlord, Tenant shall have no further right to exercise this Purchase Option.  Simultaneously with the delivery by Tenant to Landlord of an Option Exercise Notice, Tenant shall deposit with First American Title Insurance Company, 30 N. LaSalle Street, Suite 300, Chicago, IL  60602, Attn:  Dick Siedel (the “Title Company”) as its earnest money deposit, the sum of One Million Eight Hundred Thousand and No/100 Dollar ($1,800,000.00) (the “Earnest Money”) to be held by the Title Company and applied in accordance with this Addendum.  Tenant shall have no right to exercise this Purchase Option if Tenant is either in monetary or material non-monetary default pursuant to the Lease or any fact or condition exists that with the giving of notice, or passage of time, or both, would constitute a monetary or material non-monetary default pursuant to the Lease.  If Tenant is in monetary default or material non-monetary default pursuant to the Lease as of the Option Closing, Landlord may elect, in its sole discretion, to void Tenant’s exercise of this Purchase Option by delivery of written notice to Tenant, in which event this Purchase Option shall thereafter be forever null and void and the Title Company shall immediately deliver the Earnest Money to the Landlord.  If Tenant exercises this Purchase Option, Landlord and Tenant shall proceed to the Option Closing pursuant to this Addendum and shall not negotiate, execute and enter into a Purchase and Sale Agreement to govern the conveyance of the Premises by Landlord to Tenant.  Within ten (10) days after the delivery by Tenant to Landlord of an Option Exercise Notice, Tenant shall deliver to Landlord a title commitment, issued by a reputable, national title insurance company selected by the Title Company, for an owner’s title insurance policy (the “Title Policy”) in the full amount of the Option Purchase Price (as hereinafter defined), together with copies of all recorded documents representing title exceptions.

 

4.           Option Purchase Price.  The total purchase price to be paid by Tenant to Landlord for the Premises shall be (a) if the Option Closing Date is on or before May 31, 2009, THIRTY FIVE MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($35,500,000.00), or (b) if the Option Closing Date is on or before May 31, 2010, THIRTY SIX MILLION FOUR HUNDRED THOUSAND AND NO/100 DOLLARS ($36,400,000.00) (as applicable, the “Option Purchase Price”), plus or minus any adjustments contemplated in Section 7 below.  The Earnest Money shall be retained by Landlord and applied against the Option Purchase Price.

 

5.           Option Closing.  The purchase of the Premises contemplated herein shall be consummated at a closing (the “Option Closing”) to take place by mail or at the offices of the Title Company.  The Option Closing shall occur on the sooner to occur of:  (i) such date as the parties shall mutually agree in writing; and (ii) one hundred fifty (150) days after the delivery by Tenant to Landlord of an Option Exercise Notice (the “Option Closing Date”).  The Option Closing shall be effective as of 11:59 p.m. on the Option Closing Date.

 

  

Addendum 2-1

  

  

5.1.           Landlord’s Option Closing Deliveries.  At the Option Closing, Landlord shall deliver, or cause to be delivered, to Tenant the following duly executed by Landlord where appropriate:  (i) a Special Warranty Deed, in recordable form, conveying the Premises to Tenant subject to the Permitted Exceptions (as hereinafter defined); (ii) a Quitclaim Bill of Sale conveying all of Landlord’s interest in and to any tangible personal property located on the Premises which is owned by Landlord and used by Landlord solely in connection with the Premises; (iii) an Affidavit of Title in form and substance reasonably acceptable to the Title Company; (iv) a closing statement (the “Closing Statement”) conforming to the proration and other relevant provisions of this Addendum; (v) an Entity Transfer Certification confirming that Landlord is a “United States Person” within the meaning of Section 1445 of the Internal Revenue Code of 1986, as amended; and (vi) such evidence of the authority and good standing of Landlord as the Title Company shall reasonably require as a condition to the issuance of the Title Policy.

 

5.2.           Tenant’s Option Closing Deliveries.  At the Option Closing, Tenant shall deliver, or cause to be delivered, to Landlord the following duly executed by Tenant where appropriate:  (i) the Closing Statement; and (ii) the Option Purchase Price, plus or minus prorations and other adjustments, in immediately available funds.

 

5.3.           Title Condition.  It shall be a condition precedent to Tenant’s obligation to proceed to the Option Closing that, at the Option Closing, the Title Company shall issue the Title Policy (or a “marked” title commitment) to Tenant insuring, in the full amount of the Option Purchase Price, Tenant as the fee simple owner of the Premises, subject only to the Permitted Exceptions.  If the foregoing condition precedent fails for any reason other than the actions of Purchaser, the exercise of this Purchase Option by Tenant shall be null and void, in which event (i) the Earnest Money shall be returned by the Title Company to Tenant, and (ii) this Purchase Option shall be irrevocably terminated and of no further force and effect.  Landlord shall convey the Premises to Tenant subject to any and all liens, claims and encumbrances of record (“PermittedExceptions”) other than the following:  (i) the liens of any mortgage, trust deed or deed of trust evidencing an indebtedness owed by Landlord; (ii) mechanic’s liens pursuant to a written agreement either between (x) the claimant (the “Contract Claimant”) and Landlord or (y) the Contract Claimant and any other contractor, materialman or supplier with which Landlord has a written agreement; and (iii) broker’s liens pursuant to a written agreement between the broker and Landlord (the “Mandatory Cure Items”).  Landlord shall, at Landlord’s sole cost, cure and remove any Mandatory Cure Items on or prior to the Option Closing.  If Landlord fails to cure and remove (whether by endorsement or otherwise) any Mandatory Cure Items on or prior to the Option Closing, Tenant may, at its option and as its sole remedy hereunder, at law, in equity or pursuant to the Lease, either (i) terminate its election to exercise this Purchase Option, in which event the Earnest Money shall be returned by the Title Company to Tenant and this Purchase Option shall thereafter become forever null and void, or (ii) proceed to close with title to the Premises as it then is with the right to deduct from the Option Purchase Price the amount reasonably necessary to cure and remove (by endorsement or otherwise, as mutually and reasonably determined by Tenant and Landlord) those Mandatory Cure Items that Landlord has failed to cure and remove.

 

6.           Premises Transferred “As Is”.  The sale of the Premises pursuant to this Purchase Option as provided for herein shall be made on a “AS IS,” “WHERE-IS” basis as of the Option Closing Date, without any representations or warranties, of any nature whatsoever from Landlord.  Landlord hereby specifically disclaims any warranty (oral or written) concerning:  (i) the nature and condition of the Premises and the suitability thereof for any and all activities and uses that Tenant may elect to conduct thereon, (ii) the manner, construction, condition and state of repair or lack of repair of any improvements located thereon, (iii) the nature and extent of any right-of-way, lien, encumbrance, license, reservation, condition or otherwise, (iv) the compliance of the Premises or its operation with any laws, rules, ordinances, or regulations of any government or other body; and (v) any other matter whatsoever. Tenant expressly acknowledges that, in consideration of the agreements of Landlord herein, LANDLORD MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, OR ARISING BY OPERATION OF LAW, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF QUANTITY, QUALITY, CONDITION, HABITABILITY, MERCHANTABILITY, SUITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PREMISES, ANY IMPROVEMENTS LOCATED THEREON, OR ANY SOIL CONDITIONS RELATED THERETO.  TENANT, FOR TENANT AND TENANT’S SUCCESSORS AND ASSIGNS, HEREBY RELEASES LANDLORD FROM AND WAIVES ANY AND ALL CLAIMS AND LIABILITIES AGAINST LANDLORD FOR, RELATED TO, OR IN CONNECTION WITH, ANY ENVIRONMENTAL CONDITION AT THE PREMISES (OR THE PRESENCE OF ANY MATTER OR SUBSTANCE RELATING TO THE ENVIRONMENTAL CONDITION OF THE PREMISES), INCLUDING, BUT NOT LIMITED TO, CLAIMS AND/OR LIABILITIES RELATING TO (IN ANY MANNER WHATSOEVER) ANY HAZARDOUS, TOXIC OR DANGEROUS MATERIALS OR SUBSTANCES LOCATED IN, AT, ABOUT OR UNDER THE PREMISES, OR FOR ANY AND ALL CLAIMS OR CAUSES OF ACTION (ACTUAL OR THREATENED) BASED UPON, IN CONNECTION WITH OR ARISING OUT OF ANY AND ALL ENVIRONMENTAL LAWS.

 

7.           PRORATIONS.  Notwithstanding any local custom to the contrary, there shall be no prorations and adjustments between Landlord and Tenant at the Option Closing (including, but not limited to, any proration or adjustment of ad valorem real estate taxes or special assessments) except as hereinafter expressly provided.  Tenant shall receive a credit from Landlord at the Option Closing for that portion of any Rent paid by Tenant to Landlord for the month in which the Option Closing occurs (the “Closing Month”) that is allocable to the period from and after the Option Closing Date.  Tenant shall provide a credit to Landlord at 

 

  

Addendum 2-2

  

  

the Option Closing for:  (i) any and all Rent and other sums due and owing from Tenant to Landlord pursuant to the Lease with respect to the period prior to the Option Closing Date that Tenant has not previously paid to Landlord, including, but not limited to, Rent for that portion of the Closing Month occurring prior to the Option Closing Date to the extent not paid by Tenant prior to the Option Closing; (ii) any and all operating expenses and costs related to the Premises that have been paid by Landlord and are related to the period from and after the Option Closing to the extent not previously reimbursed by Tenant; and (iii) any and all Taxes paid by Landlord for which Tenant has not reimbursed Landlord, whether related to the period prior to or after the Option Closing Date.  Landlord and Tenant hereby agree to re-prorate such amounts to the extent of any error, which obligation shall survive the Option Closing and the delivery of any conveyance documentation.

 

8.           Closing Expenses.  Tenant will pay the entire cost of the Title Policy (including the cost of any endorsements), any survey, the fees of Tenant’s attorney, one-half of all documentary and state, county and municipal transfer taxes relating to the instruments of conveyance contemplated herein, the cost of recording the deed and one-half of the cost of any escrows hereunder.  Landlord will pay the fees of Landlord’s attorney, one-half of all documentary and state, county and municipal transfer taxes relating to the instruments of conveyance contemplated herein and one-half of any escrow costs hereunder.

 

9.           Termination of Lease.  Upon the Option Closing and the transfer of the Premises pursuant to this Addendum, the Lease shall terminate except for those provisions under the Lease which by their terms specifically survive.  This Section 9 shall survive the Option Closing and the delivery of any conveyance documentation.

 

10.           Brokerage.  Each party hereto represents and warrants to the other that it has dealt with no brokers or finders in connection with this Purchase Option other than NAI Branner Goddard and CB Richard Ellis (“Broker”).  Landlord and Tenant each hereby indemnify, protect and defend and hold the other harmless from and against all losses, claims, costs, expenses, damages (including, but not limited to, reasonable fees of counsel selected by the indemnified party) resulting from the claims of any broker, finder, or other such party claiming a commission in connection with the sale of the Premises pursuant to this Purchase Option by, through or under the acts or agreements of the indemnifying party. The obligations of the parties pursuant to this Section 10 shall survive any transfer of the Premises and the delivery of any conveyance documentation.  It is the intention of the parties that there be a single commission arising from the initial leasing and sale of the Premises, and not two separate duplicative commissions.

 

11.           Absence of Contingencies. Tenant acknowledges and agrees that, except for the condition precedent relative to the issuance of the Title Policy contained in Section  5.3 above, there are no conditions precedent or other contingencies to Tenant’s obligation to proceed to the Option Closing if Tenant exercises this Purchase Option.  Without limitation of the foregoing, Tenant shall not be entitled to the benefit of any due diligence or other contingency period.  Prior to the exercise of this Purchase Option, Tenant may conduct normal and customary due diligence investigations and studies of the Premises (“Tenant’s Project Inspection”) subject to the terms and conditions set forth in this Section 11.  Tenant shall not conduct (or cause to be conducted) any physically intrusive investigation, examination or study of the Premises (any such investigation, examination or study, an “Intrusive Investigation”) as part of Tenant’s Project Inspection without obtaining the prior written consent of Landlord, which consent shall not be unreasonably withheld, delayed or conditioned.  In the event Tenant desires to conduct (or cause to be conducted) any Intrusive Investigation, such as sampling of soils, other media, building materials, or the other comparable investigation, Tenant will provide a written scope of work to Landlord describing exactly what procedures Tenant desires to perform.  Tenant and Tenant’s consultants, agents and employees shall, in performing any Tenant’s Project Inspections, comply with the agreed upon procedures and with any and all laws, ordinances, rules, and regulations applicable to such procedures or the Premises.  Tenant and Tenant’s consultants shall: (a) maintain comprehensive general liability (occurrence) insurance in an amount of not less than $2,000,000 covering any accident arising in connection with Tenant’s Project Inspections, and deliver a certificate of insurance (in form reasonably acceptable to Landlord), which names Landlord as additional insured thereunder verifying such coverage, to Landlord prior to the performance of any Tenant’s Project Inspections; (b) promptly pay when due any third party costs resulting from Tenant’s Project Inspections; and (c) restore the Premises to the condition in which the same were found before any such Tenant’s Project Inspections were undertaken and repair any damage to the Premises to the extent such condition was altered or the Premises were damaged (directly or indirectly) in connection with Tenant’s Project Inspections.  Tenant hereby indemnifies, protects, defends and holds Landlord, Landlord’s affiliates, their respective partners, shareholders, officers and directors, and all of their respective successors and assigns, harmless from and against any and all losses, damages, claims, causes of action, judgments, damages, costs and expenses (including reasonable attorneys’ fees and court costs) that any such party suffers or incurs as a result of, or in connection with, (i) any damage caused to, in, or at the Premises; (ii) injury or death to person; or (iii) mechanic’s liens or materialmen’s liens arising out of, or in connection with, Tenant’s Project Inspections.  Tenant’s undertakings pursuant to this Section 11 shall indefinitely survive the Option Closing and shall not be merged into any instrument of conveyance delivered at the Option Closing.

 

  

Addendum 2-3

  

  

12.           No Assignment.  The rights of Tenant pursuant to this Purchase Option are personal to Tenant and may not be assigned by Tenant; provided, however, Tenant may assign this Purchase Option to a wholly owned subsidiary of Tenant, provided Landlord is provided a written assignment in the form reasonably acceptable to Landlord.  In the event that Tenant assigns, transfers or conveys all or some portion of its interest in the Lease to anyone other than a wholly-owned subsidiary of Tenant, this Purchase Option shall be null, void and of no further force and effect irrespective of whether Landlord has consented to such assignment. For purposes of this Section 12, the term “assigns, transfers or conveys” shall not include a subleases of a portion of the Premise.

 

13.           Default by Landlord.  If Landlord shall be in material default of its obligations pursuant to this Purchase Option, Tenant may either (i) terminate Tenant’s election to exercise this Purchase Option by written notice to Landlord, in which event (a) the Earnest Money shall be returned by the Title Company to Tenant and (b) this Purchase Option shall thereafter be forever null and void; or (ii) Tenant may file an action for specific performance of Landlord’s obligation to proceed to the Option Closing.  Tenant shall have no other remedy for any default by Landlord pursuant to this Addendum.  Without limitation of the foregoing, a default by Landlord of its obligations pursuant to this Addendum shall not constitute a default by Landlord pursuant to the Lease and Tenant shall not be entitled to exercise any remedies it may have pursuant to the Lease on account of a default by Landlord pursuant to this Addendum.

 

14.           Default by Tenant.  In the event Tenant defaults in its obligations to close the purchase of the Premises, or in the event Tenant otherwise defaults pursuant to this Addendum, then (i) Landlord shall be entitled to obtain the Earnest Money from the Title Company as fixed and liquidated damages, this Purchase Option shall thereafter be forever void and of no further force and effect.  Landlord shall have no other remedy for any default by Tenant pursuant to this Addendum, including any right to damages or to exercise its rights pursuant to the Lease.  LANDLORD AND TENANT ACKNOWLEDGE AND AGREE THAT (1) THE AMOUNT OF THE EARNEST MONEY IS A REASONABLE ESTIMATE OF AND BEARS A REASONABLE RELATIONSHIP TO THE DAMAGES THAT WOULD BE SUFFERED AND COSTS INCURRED BY LANDLORD AS A RESULT OF HAVING WITHDRAWN THE PREMISES FROM SALE AND THE FAILURE OF THE OPTION CLOSING TO HAVE OCCURRED DUE TO A DEFAULT OF TENANT UNDER THIS ADDENDUM; (2) THE ACTUAL DAMAGES SUFFERED AND COSTS INCURRED BY LANDLORD AS A RESULT OF SUCH WITHDRAWAL AND FAILURE TO CLOSE DUE TO A DEFAULT OF TENANT UNDER THIS ADDENDUM WOULD BE EXTREMELY DIFFICULT AND IMPRACTICAL TO DETERMINE; AND (3) THE AMOUNT OF THE EARNEST MONEY SHALL BE AND CONSTITUTE VALID LIQUIDATED DAMAGES.

 

15.           Conflict.  In the event of any conflict between the terms of this Addendum and the terms of the Lease, the terms of this Addendum shall prevail.

 

16.           No Recording.  Neither this Addendum nor any memorandum thereof shall be recorded and the act of recording by Tenant shall be deemed a default by Tenant pursuant to the Lease and this Addendum.

 

 

  

Addendum 2-4ex10-53.htm

Exhibit 10.53

AMERICAN LOCOMOTIVE

Providence, Rhode Island

OFFICE LEASE

 

by and between

 

ALCO CITYSIDE FEDERAL LLC

 

(Landlord)

 

and

 

UNITED NATURAL FOODS, INC.

 

(Tenant)

  

i

  

TABLE OF CONTENTS

	
1

	
DEFINITIONS.

	
1

	
2

	
PREMISES; MEASUREMENT.

	
7

	
3

	
TERM.

	
8

	
4

	
RENT; SECURITY DEPOSIT.

	
10

	
5

	
TAXES.

	
14

	
6

	
USE OF PREMISES.

	
15

	
7

	
INSURANCE AND INDEMNIFICATION.

	
18

	
8

	
SERVICES AND UTILITIES.

	
21

	
9

	
REPAIRS AND MAINTENANCE.

	
23

	
10

	
IMPROVEMENTS.

	
24

	
11

	
LANDLORD'S RIGHT OF ENTRY.

	
27

	
12

	
DAMAGE OR DESTRUCTION.

	
27

	
13

	
CONDEMNATION.

	
28

	
14

	
ASSIGNMENT AND SUBLETTING.

	
29

	
15

	
RULES AND REGULATIONS.

	
30

	
16

	
SUBORDINATION AND ATTORNMENT.

	
31

	
17

	
DEFAULTS AND REMEDIES.

	
32

	
18

	
ESTOPPEL CERTIFICATE.

	
34

	
19

	
QUIET ENJOYMENT.

	
35

	
20

	
NOTICES.

	
35

	
21

	
GENERAL

	
36

Exhibits

 

	
A.

	
Plan showing Project and Building

	
B.

	
Drawing showing approximate location of Premises

	
C.

	
Tenant Improvements/Space Plan

	
D.

	
Current Rules and Regulations

	
E.

	
Forms:  First Amendment to Lease and Promissory Note

	
F.

	
Schedule of Deliveries

	
G.

	
Janitorial Specifications

	
H.

	
Parking Area Drawing

  

ii

  

OFFICE LEASE

 

THIS LEASE is made on this 16th day of October, 2008 (the "Effective Date"), by and between ALCO CITYSIDE FEDERAL LLC, a Rhode Island limited liability company (the "Landlord"), and UNITED NATURAL FOODS, INC., a Delaware corporation (the "Tenant").

 

IN CONSIDERATION of the agreements and covenants hereinafter set forth, Landlord and Tenant mutually agree as follows:

 

1       DEFINITIONS.

 

1.1           As used herein, the following terms shall have the following meanings:

 

"Base Operating Costs" means Operating Costs incurred for the 2009 calendar year (the "Base Year").  If less than 95% of the rentable square feet in the Project is occupied by tenants or Landlord is not supplying services to 95% of the rentable square feet of the Project at any time during any calendar year (including the Base Year), then Operating Costs for such calendar year shall be an amount equal to the Operating Costs which would normally be expected to be incurred using reasonable projections and reasonable extrapolations from existing cost data had 95% of the Project’s rentable square feet been occupied and had Landlord been supplying services to 95% of the Project’s rentable square feet throughout such calendar year.

 

"Base Rent" has the meaning given it in subsection 4.1.

 

"Base Taxes" means Taxes on the Building and the underlying tax parcel incurred for the state fiscal tax year in which (i) the Building is first re-assessed to reflect the Landlord's rehabilitation and conversion of the Building and the related improvements, and (ii) 95% of the Building’s rentable square feet has been occupied.

 

"Building" means the building located at 317 Iron Horse Way in Providence, Rhode Island, and commonly known as American Locomotive Works, consisting of two buildings known as “Building #51” (containing approximately 90,000 rentable square feet of space) and “Building #52” (containing approximately 40,737 rentable square feet of space).  The Building is more particularly shown on Exhibit A, subject to adjustment from time to time.

 

"Building Service Equipment" means all apparatus, machinery, devices, fixtures, appurtenances, equipment and personal property now or hereafter located on the Premises and owned by the Landlord.

 

"Common Areas" means those areas and facilities of the Building and/or Project which may be designated by the Landlord from time to time as common areas (portions of which may from time to time be relocated and/or reconfigured by the Landlord in its sole discretion so long as reasonable access (ingress and egress) to and from the Premises and Parking Areas is maintained, the number of allocated parking spaces as set forth in Section 6.5.3(b) below is maintained and visibility of the Premises is not materially adversely affected), which Common Areas include footways, sidewalks, Parking Areas, lobbies, elevators, stairwells, corridors, restrooms, and certain exterior areas on the Project (and/or the Building), subject, however, to the Rules and Regulations.

  

1

  

 

"Default Rate" means an annual floating rate of interest equal to two (2) percentage points in excess of the prime rate of interest as announced from time to time by Bank of America, or its successor.  In no event shall the default rate be less than eight (8) percent.

 

"Insurance Premiums" means the aggregate of any and all premiums paid by the Landlord for hazard, liability, loss-of-rent, workers’ compensation, boiler and machinery or similar insurance upon any or all of the Project.

 

"Landlord" means the Person hereinabove named as such and its successors and assigns.

 

"Lease Year" means (a) the period commencing on the Rent Commencement Date and terminating at 11:59 p.m. on the first anniversary of the last day of the month in which the Rent Commencement Date occurs, and (b) each successive period of twelve (12) calendar months thereafter during the Term.

 

"Legal Requirements" means all laws, statutes, ordinances, orders, rules, regulations and requirements of all federal, state and municipal governments, whether now or hereafter in force, including but not limited to The Americans with Disabilities Act, 42 U.S.C. §12101 et. seq., and the ADA Disability Guidelines promulgated with respect thereto and the rules and regulations of the National Board of Fire Underwriters or other bodies exercising similar functions."

 

"Operating Costs" means any and all costs and expenses incurred by the Landlord for services performed by the Landlord or by others on behalf of the Landlord with respect to the operation and maintenance of the Premises, Building, the Project, and the Common Areas located therein and serving or allocable to the Premises (including the Parking Areas) in a manner deemed reasonable and appropriate by Landlord, including, without limitation, all costs and expenses of:

 

	
  

	
(a)

	
operating, maintaining, repairing, lighting, signage, cleaning, removing trash from, painting, striping, controlling of traffic in, controlling of rodents in, policing and securing the Common Areas ;

 

	
  

	
(b)

	
purchasing and maintaining in full force insurance for the Project as deemed necessary in Landlord's commercially reasonable discretion;

 

	
  

	
(c)

	
operating, maintaining, repairing and replacing machinery, furniture, accessories and equipment used in the operation and maintenance of the Project, and the personal property taxes and other charges incurred in connection with such machinery, furniture, accessories and equipment;

 

	
  

	
(d)

	
maintaining and repairing roofs, awnings, canopies, paving, curbs, walkways, drainage pipes, ducts, conduits, stormwater management systems, grease traps and lighting fixtures throughout the Common Areas;

  

2

  

 

	
  

	
(e)

	
interior and exterior planting, replanting and replacing flowers, shrubbery, trees, grass and planters;

 

	
  

	
(f)

	
operating, maintaining and repairing any equipment used in connection with providing electricity, heating, ventilation and air conditioning to the Building and costs of electricity used in the Common Areas and the central HVAC system for the Building;

 

	
  

	
(g)

	
gas, water and sanitary sewer services and other services, if any, furnished to the Project for the non-exclusive use of tenants.

 

	
  

	
(h)

	
parcel pick-up, delivery and other similar services;

 

	
  

	
(i)

	
accounting, legal, audit and management fees and expenses, including a property management fee equal to six (6) percent of gross rents (on a full service basis), payroll, payroll taxes, employee benefits and related expenses of all personnel directly engaged in the operation, maintenance, and management of the Project;

 

	
  

	
(j)

	
the cost and expense of complying with all federal, state and local laws, orders, regulations and ordinances applicable to the Project which are now in force, or which may hereafter be in force, except for violations existing as of the Rent Commencement Date;

 

	
  

	
(k)

	
the cost (including legal, architectural and engineering fees incurred in connection therewith) of any improvement made to the Project during any Operating Year either (x) in order to comply with a Legal Requirement or insurance requirement, whether or not such Legal Requirement or insurance requirement is valid or mandatory, except for violations existing as of the Rent Commencement Date, (y) with the reasonable expectation by Landlord of reducing Operating Costs (as, for example, a labor-saving improvement) or enhancing services, or (z) in lieu of a repair; provided, however, (i) to the extent the cost of such improvement is required to be capitalized under generally accepted accounting principles, such cost shall be amortized over the useful economic life of such improvement as reasonably estimated by Landlord, and the annual amortization shall be deemed an Operating Cost in each of the Operating Years during which the cost of the improvement is amortized; and (ii) in no event shall the amount included in Operating Costs in connection with a capital improvement of the nature described in clause (y) above exceed the annual amount by which Operating Costs were reduced as a result of such capital improvement;

 

	
  

	
(l)

	
providing janitorial and trash removal services to the Project and Premises;

 

	
  

	
(m)

	
all other costs of maintaining, repairing or replacing any or all of the Building (including expenses of landscaping, snow, ice, water and debris removal, outdoor lighting, road maintenance and interior and exterior signage relating to the Project); and

  

3

  

 

	
  

	
(n)

	
the cost of all capital improvements made to the Building which are reasonably necessary to replace equipment existing as of the Rent Commencement Date and which are not provided for in subsections (a) through (m) above; provided that the cost of each such capital improvement shall be amortized over the useful life thereof, as reasonably determined by Landlord.

 

Notwithstanding the foregoing, the following items shall be excluded from Operating Expenses:

 

	
  

	
(aa)

	
Taxes, franchise, income taxes, or excess profit imposed upon Landlord;

 

	
  

	
(ab)

	
rents under the Superior Lease and debt service on Mortgages and any costs and expenses relating to a refinancing or debt modification, including legal fees, title insurance premiums, survey expenses, appraisal, environmental report, or engineering report;

 

	
  

	
(ac)

	
leasing commissions, brokerage fees or legal fees incurred in connection with the negotiation and preparation of letters, deal memos, letters of intent, leases and related documents with respect to the leasing, assignment or subletting of space for any occupant of the Building;

 

	
  

	
(ad)

	
the cost of tenant installations incurred in connection with preparing space for a new tenant or refurbishing or renovating space for an existing tenant;

 

	
  

	
(ae)

	
salaries and other compensations of personnel above the level of property manager;

 

	
  

	
(af)

	
costs of compliance with the Americans with Disabilities Act;

 

	
  

	
(ag)

	
capital costs, depreciation or amortization (except as provided in the list of inclusions for Operating Costs under items (j) and 0 above);

 

	
  

	
(ah)

	
costs resulting from the negligence, intentionally tortuous or other act or omission of the Landlord, its agents or employees;

 

	
  

	
(ai)

	
costs to correct original defects in the design or construction of the Building or Project;

 

	
  

	
(aj)

	
costs incurred in performing work or furnishing services or utilities for any tenant or other occupant or for any other building or portion of a building located in the Project, whether at such tenant's or other occupant's or at Landlord's expense, to the extent that such work or service or utility benefits only an individual tenant or group of tenants and not the Project as a whole (unless a fair allocation is made between what is benefiting the Building, and what is benefiting another party);

 

	
  

	
(ak)

	
any expense for which Landlord is otherwise compensated through the proceeds of insurance or condemnation awards, or is otherwise compensated by any tenant (including Tenant) of the Building for services in excess of the services Landlord is obligated to furnish to Tenant hereunder;

  

4

  

 

	
  

	
(al)

	
fines or penalties incurred by Landlord not related to the failure by Tenant to perform its obligations under this Lease;

 

	
  

	
(am)

	

attorneys fees and disbursements and other expenses, including settlements, incurred in connection with disputes with the Mortgagee, any lender on the Project or other tenants or occupants of the Building or the Project, or associated with the enforcement of any leases or the defense of Landlord's title or interest in the Project or any part thereof;

 

	
  

	
(n)

	
accounting fees incurred in preparing Landlord's financial reports for Landlord, its partners, affiliates or any Mortgagee or lender or in preparing Landlord's tax returns or other third party accounting fees not directly related to the preparation of Operating Cost statements; and

 

	
  

	
(an)

	
those portions of costs applicable solely to any additional buildings constructed on the Project.

 

"Operating Year" means each respective calendar year or part thereof during the Term, or, at the Landlord's option, any other 12-month period or part thereof designated by the Landlord during the Term.

 

"Parking Areas" means those portions of the Common Areas or other areas under Landlord’s control which from time to time are designated by the Landlord for the parking of automobiles and other automotive vehicles while engaged in business upon the Premises (other than while being used to make deliveries to and from the Premises).

 

"Person" means a natural person, a trustee, a corporation, a limited liability company, a partnership and/or any other form of legal entity.

 

"Premises" means that certain space having a Rentable Area of 52,560 square feet and located on the first and second floor of Building #52 and the second floor of Building #51 of the Building, as more particularly depicted on Exhibit B; provided, that if at any time hereafter any portion of the Premises becomes no longer subject to this Lease, "Premises" shall thereafter mean so much thereof as remains subject to this Lease.

 

"Project" means that certain project located in Providence, Rhode Island known as American Locomotive Works containing the Building thereon.  The Project is more particularly shown on Exhibit A.

 

"Rent" means all Base Rent and all Additional Rent.

 

"Rentable Area" means the rentable area of the Premises as determined hereinafter.  Landlord’s architect shall verify the Rentable Area of the Premises using the "Standard Method for Measuring Floor Area in Office Buildings", ANSI/BOMA Z65.1-1996 and provide Tenant with the calculations.  After completion of Landlord's Work, the Tenant shall have the right to verify the usable square feet of the Premises at the Tenant's sole cost.  Once the Rentable Area of the Premises has been verified and jointly agreed to, the parties shall enter into a confirmation agreement setting forth (i) the area of the Premises, (ii) the calculation of the Base Rent and (iii) the Tenants' Proportionate Share.

  

5

  

 

"Rules and Regulations" means the reasonable rules and regulations having uniform applicability to all tenants of the Project (subject to their respective leases) and governing their use and enjoyment of the Project; provided that such rules and regulations shall not materially interfere with the Tenant’s use and enjoyment of the Premises in accordance with this Lease for its uses as permitted hereunder.

 

"Tax Year" means the 12-month period beginning July 1 of each year or such other 12-month period (deemed for the purposes of this Lease to have 365 days) established as a real estate tax year by the taxing authority having lawful jurisdiction over the Project.

 

"Taxes" means the aggregate of any and all real property and other taxes, metropolitan district charges, front-foot benefit assessments, special assessments and other taxes or public or private assessments or charges levied against any or all of the tax parcel containing the Premises.  If any tax or assessment is payable over a period of time, only that portion of such tax or assessment due within the Term shall be included in Taxes.

 

"Tenant" means the Person hereinabove named as such and its successors and permitted assigns hereunder.

 

"Tenant Delay" means a delay in the completion of Landlord’s Work if and to the extent caused by any or all of the following: (i) Tenant’s failure to timely comply with the requirements set forth in the Schedule of Deliveries (as defined in Section 10.1.1.) or respond to any requests for approval within five (5) calendar days; or (ii) Tenant’s request for change orders in accordance with Section 10.1.2 hereof; provided that Landlord may determine that a single or several Tenant change orders may not cause a Tenant Delay but that an aggregate of change orders does cause a Tenant Delay.  Landlord shall notify Tenant when an aggregate of change orders will cause a Tenant Delay within five (5) calendar days of the time Tenant submits the change order that would cause the Tenant Delay.

 

"Tenant's Proportionate Share" means a fraction, the numerator of which is the Rentable Area and the denominator of which is the number of square feet in the Building, the Project or such other areas as Landlord may in good faith deem reasonably appropriate, subject to adjustment from time to time as such areas may change.  The parties acknowledge that certain expenses should and will be allocated by Landlord among the tenants of the Project based on such tenant’s particular use.  For example, retail tenants may be allocated a greater share of the water charges and office tenants may be allocated a greater share of the janitorial expenses.  Landlord reserves the right to adjust Tenant’s Proportionate Share accordingly in order to allocate the Operating Costs and Taxes for the Project such that Tenant’s Proportionate Share will vary depending upon the type of expense being allocated.

 

"Tenant's Share of Increased Operating Costs" shall be the amount of (i) the Operating Costs for the Operating Year in question less the Base Operating Costs multiplied by (ii) the Tenant's Proportionate Share.

 

"Tenant's Share of Increased Taxes" shall be the amount of (i) the Taxes for the Tax Year in question less the Base Taxes multiplied by (ii) the Tenant's Proportionate Share.

  

6

  

 

“Tenant Electric” means electric current supplied to or used in the Premises, including, but not limited to lights, outlets, VAV boxes with or without electric heat, air handling units, compressors for air handling units, non-central plant HVAC, any primary electric service charge and any specialized HVAC equipment serving the Premises.

 

"Term" means the Original Term plus any exercised renewals thereof.

 

2       PREMISES.

 

2.1           The Landlord hereby leases to the Tenant, and the Tenant hereby leases from the Landlord, the Premises, together with the right to use, in common with others, the Common Areas.

 

2.2           If and when Landlord receives a bona fide prospect or request for proposal for office space in Building #51 or Building #52 contiguous to the Premises (the “Additional Space”) from any party other than the current tenant, and provided that there then exists no default by Tenant beyond all applicable notice and cure periods, and that Tenant is the sole occupant of the Premises, and subject to the rights of any existing tenants, Tenant shall have the right of first offer to lease all of the Additional Space, subject to the following:

(a)           Landlord shall notify Tenant when Landlord receives a bona fide prospect or request for proposal for the Additional Space by any party other than the tenant then in occupancy of the Additional Space, and Tenant shall have five (5) business days following receipt of such notice within which to notify Landlord in writing (e-mail notification shall be acceptable) that Tenant is interested in negotiating terms for leasing such Additional Space and to have its offer considered by Landlord prior to the leasing by Landlord of the Additional Space to a third party.  If Tenant notifies Landlord within such time period that Tenant is so interested, then Landlord and Tenant shall have fifteen (15) business days following Landlord’s receipt of such notice from Tenant within which to negotiate mutually satisfactory terms for the leasing of the Additional Space by Tenant and to execute an amendment to this lease incorporating such terms or a new lease for the Additional Space.

(b)           If Tenant does not notify Landlord within such five (5) business days of its interest in leasing the Additional Space or if Tenant does not execute such amendment or lease within such fifteen (15) business days, then this right of first offer to lease the Additional Space will lapse and be of no further force or effect and Landlord shall have the right to lease all or part of the Additional Space to any other party at any time on any terms and conditions acceptable to Landlord.

 

(c)           This right of first offer to lease the Additional Space is a one-time right if and when the Additional Space first becomes available, is personal to Tenant and its affiliates and is non-transferable to any other assignee or sublessee (regardless of whether any such assignment or sublease was made with or without Landlord’s consent) or other party.

  

7

  

 

3       TERM.

 

3.1           Original Term; Rent Commencement Date.

 

3.1.1          This Lease shall be for a term (the "Original Term") commencing on the Effective Date and ending at 11:59 p.m. on the tenth (10th) anniversary of the last day of the month in which the Rent Commencement Date shall occur (which date is hereinafter referred to as the "Termination Date").

 

3.1.2           Monthly payments of Base Rent, Additional Rent and all other charges under this Lease shall commence on the “Rent Commencement Date” which shall be the earliest to occur of:  (i) the date upon which the Landlord’s Work to the Premises are Substantially Complete (defined below); or (ii) the date upon which the Tenant actually moves into occupancy of the Premises and conducts business therein; provided, however, that the Rent Commencement Date shall be one (1) day earlier for each one (1) day of Tenant Delay.  Tenant shall be permitted access to the Premises two (2) weeks prior to the Rent Commencement Date solely for the purpose of installing Tenant’s furniture and telecommunications equipment; provided and such other times as reasonably necessary in order for Tenant to coordinate the installation of cabling in the Premises during the time that Landlord is completing Landlord’s Work, however Tenant and its agents and vendors shall refrain from interfering with the completion of the Landlord’s Work.  Tenant’s access prior to the Rent Commencement Date shall be subject to all of the terms and conditions of this Lease, except that Tenant shall not be required to pay Base Rent or Additional Rent until the Rent Commencement Date. “Substantial Completion” or “Substantially Completed” or variations of those terms shall mean that a permanent or temporary certificate of occupancy for the Premises has been issued, the Premises and Landlord’s Work (defined herein) are sufficiently complete in accordance with this Lease, subject to minor punchlist items, so that Tenant can occupy the Premises for its intended use, and possession of the Premises has been tendered to Tenant by Landlord.

 

3.2           Confirmation of Commencement and Termination. After (a) the Rent Commencement Date or (b) the expiration of the Term or any earlier termination of this Lease by action of law or in any other manner, the Landlord shall confirm in writing by instrument in recordable form that, respectively, such rent commencement or such termination has occurred, setting forth therein, respectively, the Rent Commencement Date and the Termination Date.

 

3.3           Renewal.  Tenant shall have the option to renew the Term of this Lease for two (2) periods of five (5) years (each, a "Renewal Term").  Tenant shall exercise the option by providing written notice to Landlord of its election to exercise such option no later than twelve (12) months prior to the expiration of the Term, or Renewal Term, as applicable, provided, however, that Tenant's option to renew shall be subject to the condition that no default shall have occurred and be continuing after applicable notice and cure periods have expired as of the date of Tenant's exercise of such option or as of the date of commencement of the Renewal Term.  Tenant shall have no other right to renew this Lease after the second Renewal Term.  Except as otherwise expressly provided in this Lease, all terms, covenants, and conditions of this Lease shall remain in full force and effect during the Renewal Terms, except that the Rent applicable to the Renewal Terms shall be as set forth in Section 4.10.  In no event shall the Rent for the Renewal Terms be less than the Rent in effect at the expiration of the immediately preceding Term of the Lease.  If the Tenant fails to give notice exercising the foregoing option by the date required herein, or if at the time Tenant exercises such option or at commencement of the applicable Renewal Term the Tenant is in default of any term of this Lease, or if this Lease is assigned by Tenant or the Premises is sublet in whole or part in violation of this Lease, then Tenant’s rights and options to renew shall be automatically terminated and of no further force or effect.

  

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3.4           Surrender.  The Tenant, at its expense at the expiration of the Term or any earlier termination of this Lease, shall (a) promptly surrender to the Landlord possession of the Premises (including any fixtures or other improvements which are owned by the Landlord) in good order and repair (ordinary wear and tear and damage by fire or other casualty excepted) and broom clean, (b) remove therefrom all signs, goods, effects, machinery, fixtures and equipment used in conducting the Tenant's trade or business which are neither part of the Building Service Equipment nor owned by the Landlord, and (c) repair any damage caused by such removal.  All tenant improvements in the Premises installed as part of Landlord's Work may remain in the Premises at the expiration of the Term or any earlier termination of this Lease without any obligation on Tenant to remove such improvements.

 

3.5           Holding Over.  If the Tenant continues to occupy the Premises after the expiration of the Term or any earlier termination of this Lease after obtaining the Landlord's express, written consent thereto, then:

 

(a)           such occupancy (unless the parties hereto otherwise agree in writing) shall be deemed to be under a month-to-month tenancy, which shall continue until either party hereto notifies the other in writing, at least one month before the end of any calendar month, that the notifying party elects to terminate such tenancy at the end of such calendar month, in which event such tenancy shall so terminate;

 

(b)           anything in this section to the contrary notwithstanding, the Rent payable for each such monthly period shall equal the sum of (a) one and one half (1-1/2) times the amount of monthly Base Rent for the Lease Year during which such expiration of the Term or termination of this Lease occurs, plus (b) the Additional Rent payable hereunder; and

 

(c)           except as provided herein, such month-to-month tenancy shall be on the same terms and subject to the same conditions as those set forth in this Lease; provided, however, that if the Landlord gives the Tenant, at least one month before the end of any calendar month during such month-to-month tenancy, written notice that such terms and conditions (including any thereof relating to the amount and payment of Rent) shall, after such month, be modified in any reasonable manner specified in such notice, then such tenancy shall, after such month, be upon the said terms and subject to the said conditions, as so modified.

  

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4       RENT; SECURITY DEPOSIT.

 

As Rent for the Premises, the Tenant shall pay to the Landlord all of the following:

 

4.1           Base Rent.

 

(a)      An annual rent (the "Base Rent") for the Original Term as follows:

 

	
Period

	
Per Square Foot

	
Monthly

	
Annual

	
Month 1-18

	
$22.50*

	
$62,784.38

	
$753,412.56

	
Months 19-36

	
$22.50

	
$98,550.00

	
$1,182,600.00

	
Months 37-84

	
$23.00

	
$100,740.00

	
$1,208,880.00

	
Months 85-120

	
$24.00

	
$105,120.00

	
$1,261,440.00

 

	 	
* The first 18 months of Base Rent is based upon 33,485 rentable square feet of space.

 

 

(b)           The Base Rent for the first Renewal Term shall be as follows and the Base Operating Costs and Base Taxes shall remain calendar/fiscal year 2009:

 

	
Year

	
Per Square Foot

	
Monthly

	
Annual

	
1

	
$27.75

	
$121,545.00

	
$1,458,540.00

	
2

	
$28.51

	
$124,873.80

	
$1,498,485.60

	
3

	
$29.29

	
$128,290.20

	
$1,539,482.40

	
4

	
$30.10

	
$131,838.00

	
$1,582,056.00

	
5

	
$30.93

	
$135,473.40

	
$1,625,680.80

 

(c)           The Base Rent for the second Renewal Term shall be the greater of (i) the Market Rent as determined in subsection 4.1(e) below or (ii) the then escalated Base Rent at the end of the first Renewal Term as follows:

 

(d)           The "Market Rent" shall be the prevailing market rate of rent and all charges for comparable space at the end of the Term as increased in accordance with market rate annual escalations.  If Tenant exercises its option to renew hereunder, Tenant and Landlord shall make a good faith effort to agree on the Market Rent on or before a date (the "Outside Negotiation Date") which is no later than nine (9) months prior to the expiration of the Term, and prior to implementing the procedures set forth below if the parties are unable to agree.  If Landlord and Tenant are unable to agree upon the Market Rent by the Outside Negotiation Date, then Landlord and Tenant shall determine the Market Rent in accordance with the appraisal procedure set forth herein.  Within ten (10) days after the Outside Negotiation Date, the parties shall appoint a broker who shall be mutually agreeable to both Landlord and Tenant, shall have at least ten (10) years' experience as a broker of commercial leasehold estates, and shall be knowledgeable in office rentals in the Providence, Rhode Island market.  If the parties are unable to agree on a broker within such ten (10) day period, then each party, within five (5) days after the expiration of such ten (10) day period, shall appoint a broker (with the same qualifications) and the two (2) brokers (or the one broker if either Landlord or Tenant fails timely to appoint a broker) shall together appoint a third broker with the same qualifications.  The broker or brokers so appointed then shall determine, within sixty (60) days after the appointment of such broker or brokers, the then Market Rent for the Premises.  Among the factors to be considered by the broker(s) in determining the fair market base rent for the Premises shall be those factors set out below.  The figure arrived at by the broker (or the average of the figures arrived at by the three brokers, if applicable) shall be used as the Market Rent for such renewal term.  If the three broker method is chosen, then if any broker's estimate of fair Market Rent is either (x) less than ninety percent (90%) of the average figure or (y) more than one hundred ten percent (110%) of such average, then the fair market rent will be either (1) the average of the remaining two (2) appraisal figures falling within such a range of percentages, (2) the remaining appraisal that is within such range of percentages or (3) if none of the figures are within such range, the average of the three (3) appraisals.  Landlord and Tenant shall each bear the cost of its broker and shall share equally the cost of the third broker.

  

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(e)             In determining the Market Rent, the parties hereto and such brokers shall be guided by the following principles:  the Market Rent shall be determined by reference to office space in office buildings in the Providence market or comparable neighborhoods in the Providence, Rhode Island metropolitan area most comparable to the quality, location, amenities, stature, reputation, visibility and services of the Building.  The Market Rent shall take into account the fact that there are no new tenant improvements to be constructed by Landlord nor other lease-up costs (except broker commissions, if any) and shall provide for updating the Base Operating Costs to the first year of each renewal term, if such factors are considered market concessions at such time.  The valuation shall be conducted in accordance with the provisions of this Section and, to the extent not inconsistent herewith, in accordance with the then prevailing rules of the American Arbitration Association in Rhode Island (or any successor thereto).  The final determination of such brokers shall be in writing and shall be binding and conclusive on the parties, each of whom shall receive counterpart copies thereof.  In rendering such decision the brokers shall not add to, subtract from, or otherwise modify the provisions of this Lease.  In determining the Market Rent, the brokers shall consider all the items set forth above for consideration in determining the Market Rent.  Instructions to such effect shall be given to the brokers.

 

4.2           Additional Rent.  Additional rent ("Additional Rent") shall include any and all charges or other amounts that the Tenant is obligated to pay to the Landlord under this Lease, other than the Base Rent.

 

4.3           Operating Costs.

 

4.3.1        Computation.  Within one hundred twenty (120) days after the end of each calendar year during the Term, the Landlord shall compute the total of the Operating Costs incurred for the Building during such calendar year, and the Landlord shall allocate them to each separate rentable space within the Building in proportion to the respective operating costs percentages assigned to such spaces; provided that anything herein to the contrary notwithstanding, wherever the Tenant and/or any other tenant of space within the Building has agreed in its lease or otherwise to provide any item of such services partially or entirely at its own expense, or wherever in the Landlord's reasonable judgment any such significant item of expense is not incurred with respect to or for the benefit of all of the net rentable space within the Building, in allocating the Operating Costs pursuant to this subsection, the Landlord shall make an appropriate adjustment, using generally accepted accounting principles and/or sound commercial office lease management practices so as to avoid allocating to the Tenant or to such other tenant (as the case may be) those Operating Costs covering such services already being provided by the Tenant or by such other tenant at its own expense, or to avoid allocating to all of the net rentable space within the Project those Operating Costs incurred only with respect to a portion thereof, as aforesaid.  The Tenant shall have the right to review the books and records of the Landlord with respect to the calculation of Operating Costs for the prior Lease Year and the underlying cost for each item included in Operating Costs for such Lease Year at the Landlord's office during normal business hours, at the Tenant's sole expense, provided (i) the Tenant provides at least fifteen (15) days' advance written notice to the Landlord of its desire to inspect such books and records, and (ii) such request is made within ninety (90) days after the Operating Costs Statement is delivered by the Landlord to the Tenant.  If, upon Tenant's review of the books and records, it is ultimately determined that the Operating Costs were overstated by more than five percent (5%), then the reasonable cost of the review shall be paid for by Landlord.  Tenant shall be permitted to make copies of the books and records reviewed at its sole cost and expense.

  

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4.3.2        Payment as Additional Rent.  For each Operating Year, the Tenant shall pay as Additional Rent to the Landlord, in the manner provided herein, Tenant's Share of Increased Operating Costs.  The Landlord shall send to the Tenant an annual statement setting forth the Operating Costs for the applicable calendar year.

 

4.3.3        Proration.  If only part of any calendar year falls within the Term, the amount computed as Tenant's Share of Increased Operating Costs for such calendar year under this subsection shall be prorated in proportion to the portion of such calendar year falling within the Term (but the expiration of the Term before the end of a calendar year shall not impair the Tenant's obligation hereunder to pay such prorated portion of Tenant's Share of Increased Operating Costs for that portion of such calendar year falling within the Term, which amount shall be paid on demand).

 

4.3.4        Landlord's Right to Estimate.  Anything in this subsection to the contrary notwithstanding, the Landlord, at its reasonable discretion, may (a) make from time to time during the Term a reasonable estimate of the Operating Costs which may become due under this subsection for any calendar year, (b) require the Tenant to pay to the Landlord for each calendar month during such year one twelfth (1/12) of such Operating Costs, at the time and in the manner that the Tenant is required hereunder to pay the monthly installment of the Base Rent for such month, and (c) increase or decrease from time to time during such calendar year the amount initially so estimated for such calendar year, all by giving the Tenant at least twenty (20) days prior written notice thereof, accompanied by a schedule setting forth in reasonable detail the expenses comprising the Operating Costs, as so estimated.  In such event, the Landlord shall cause the actual amount of such Operating Costs to be computed and certified to the Tenant within one hundred twenty (120) days after the end of such calendar year.  Any overpayment or deficiency in the Tenant's payment of Tenant's Share of Increased Operating Costs shall be adjusted between the Landlord and the Tenant; the Tenant shall pay the Landlord or the Landlord shall credit to the Tenant's account (or, if such adjustment is at the end of the Term, the Landlord shall pay to the Tenant), as the case may be, within fifteen (15) days after such notice to the Tenant, such amount necessary to effect such adjustment.  The Landlord's failure to provide such notice within the time prescribed above shall not relieve the Tenant of any of its obligations hereunder.

  

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4.4           When Due and Payable.

 

4.4.1        Base Rent.  The Base Rent for any Lease Year shall be due and payable in twelve (12) consecutive, equal monthly installments, in advance, on the first (1st) day of each calendar month during such Lease Year.  In addition, if the Rent Commencement Date falls on a day other than the first day of a calendar month, then the Base Rent for the first month of the Term shall be prorated based on the number of days remaining in that month and such amount shall be due and payable on the Rent Commencement Date.

 

4.4.2        Additional Rent.  Any Additional Rent accruing to the Landlord under this Lease, except as is otherwise set forth herein, shall be due and payable within twenty (20) days after receipt by Tenant of written notice from Landlord that such Additional Rent is due and payable, unless Landlord is prevented from providing Tenant with twenty (20) days to make such payment because the Landlord received fewer than twenty (20) days notice that such charge or expense comprising the Additional Rent was due and payable, in which case the Landlord shall immediately make written demand upon the Tenant for payment and such Additional Rent shall be due and payable at such time.

 

4.4.3        No Set-Off; Late Payment.  Each such payment shall be made promptly when due, without any deduction or setoff whatsoever, and without demand, failing which the Tenant shall pay to the Landlord as Additional Rent, after the fifth (5th) day after such payment remains due but unpaid, a late charge equal to five percent (5%) of such payment which remains due but unpaid.  In addition, any payment that is not paid by the tenth (10th) day after written notice that such payment is due shall bear interest at the Default Rate.  Any payment made by the Tenant to the Landlord on account of Rent may be credited by the Landlord to the payment of any Rent then past due before being credited to Rent currently falling due.  Any such payment which is less than the amount of Rent then due shall constitute a payment made on account thereof, the parties hereto hereby agreeing that the Landlord's acceptance of such payment (whether or not with or accompanied by an endorsement or statement that such lesser amount or the Landlord's acceptance thereof constitutes payment in full of the amount of Rent then due) shall not alter or impair the Landlord's rights hereunder to be paid all of such amount then due, or in any other respect.

 

4.5           Where Payable.  The Tenant shall pay the Rent, in lawful currency of the United States of America, to the Landlord by delivering or mailing it to the Landlord's address set forth herein, or to such other address or in such other manner as the Landlord from time to time specifies by written notice to the Tenant.

 

4.6           Tax on Lease.  Other than Landlord's income taxes or any tax on lease imposed in lieu of income taxes, if federal, state or local law now or hereafter imposes any tax, assessment, levy or other charge directly or indirectly upon (a) the Landlord with respect to this Lease or the value thereof, (b) the Tenant's use or occupancy of the Premises, (c) the Base Rent, Additional Rent or any other sum payable under this Lease, or (d) this transaction, then the Tenant shall pay the amount thereof as Additional Rent to the Landlord upon demand, unless the Tenant is prohibited by law from doing so, in which event the Landlord at its election may terminate this Lease by giving written notice thereof to the Tenant.

  

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4.7           Advance Rent. Tenant has as of this date deposited with Landlord the sum of $52,500.00 representing advance payment of the first month's Base Rent, to be applied by Landlord to such rental obligations.

 

5       TAXES.

 

5.1           Payment.  For each Tax Year, the Tenant shall pay to the Landlord, in the manner provided herein, Tenant's Share of Increased Taxes.

 

5.2           Proration.  If only part of any Tax Year falls within the Term, the amount computed as Tenant's Share of Increased Taxes for such Tax Year under this subsection shall be prorated in proportion to the portion of such Tax Year falling within the Term (but the expiration of the Term before the end of a Tax Year shall not impair the Tenant's obligations hereunder to pay such prorated portion of Tenant's Share of Increased Taxes for that portion of such Tax Year falling within the Term, which amount shall be paid on demand).

 

5.3           Method of Payment.  Tenant's Share of Increased Taxes shall be paid by the Tenant in advance, in equal monthly installments in such amounts as are estimated and billed for each Tax Year by the Landlord at the commencement of the Term and at the beginning of each successive Tax Year during the Term, each such installment being due on the first day of each calendar month.  The Landlord may re-estimate Tenant's Share of Increased Taxes and thereafter adjust the Tenant's monthly installments payable during the Tax Year in a reasonable manner and with at least twenty (20) days prior written notice to Tenant to reflect more accurately Tenant's Share of Increased Taxes.  Within one hundred twenty (120) days after the Landlord's receipt of tax bills for each Tax Year, the Landlord will notify the Tenant of the amount of Taxes for the Tax Year in question and the amount of Tenant's Share of Increased Taxes thereof.  Any overpayment or deficiency in the Tenant's payment of Tenant's Share of Increased Taxes for each Tax Year shall be adjusted between the Landlord and the Tenant; the Tenant shall pay the Landlord or the Landlord shall credit to the Tenant's account (or, if such adjustment is at the end of the Term, the Landlord shall pay the Tenant), as the case may be, within fifteen (15) days after such notice to the Tenant, such amount necessary to effect such adjustment.  The Landlord's failure to provide such notice within the time prescribed above shall not relieve the Tenant of any of its obligations hereunder.  Upon written request by Tenant, Landlord shall provide Tenant with a copy of the applicable tax bill and Landlord's calculation of taxes for the applicable Tax Year.

 

5.4           Allocation of Taxes/Tax Contest.  Landlord shall allocate Taxes among tenants of the Building based on square footage.  If separate buildings exist on the same tax parcel, Taxes for each building shall be allocated based on respective values as reflected on the tax assessor’s worksheet.  Upon written request by Tenant given with respect to any Tax Year during the Term and provided that Tenant is leasing at least 52,560 square feet in the Building, Landlord shall (i) contest the tax assessment for such Tax Year or (ii) apply for a rebate or a reduction in Taxes.  Any rebate or reduction in Taxes that are achieved by Landlord as a result of any proceeding shall be applied proportionately as a credit and adjustment to Tenant’s Share of Increased Taxes, after deducting Landlord’s reasonable expenses including without limitation, reasonable attorneys’ fees and disbursements in connection with such proceeding.  If Tenant is to receive such a rebate, credit or reimbursement and such rebate, credit or reimbursement exceeds Tenant's payment obligation for Tenant’s Share of Increased Taxes for such Tax Year, Tenant shall be credited such savings against Tenant's future payments of Tenant's Share of Increased Taxes for each Tax Year thereafter until the amount of such savings is exhausted.

  

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5.5           Tax Treaty.  If due to Tenant's occupancy in the Building, the City of Providence enacts a tax treaty resulting in lower real estate taxes for the Premises and/or the Building, such lower Taxes will directly inure to Tenant's benefit by virtue of a dollar for dollar reduction in Base Rent.   By way of example, if the tax treaty is enacted Landlord and Tenant agree that the portion of Taxes included in Tenant’s Base Rent shall be $2.40 per square foot.  If, for Lease Year 1, Taxes are $.89 per square foot due to the tax treaty, Tenant’s Base Rent shall be reduced by $1.51 per square foot ($2.40 per square foot less $.89 per square foot equals $1.51 per square foot).

 

5.6           Taxes on Rent.  In addition to Tenant's Share of Increased Taxes, the Tenant shall pay to the appropriate agency any sales, excise and other tax (not including, however, the Landlord's income taxes or any tax on rent imposed in lieu of income taxes) levied, imposed or assessed by the State of Rhode Island or any political subdivision thereof or other taxing authority upon any Rent payable hereunder.  The Tenant shall also pay, prior to the time the same shall become delinquent or payable with penalty, all taxes separately imposed on its inventory, furniture, trade fixtures, apparatus, equipment, leasehold improvements installed by the Tenant or by the Landlord on behalf of the Tenant and owned by Tenant and any other property of the Tenant.

 

6       USE OF PREMISES.

 

6.1           Nature of Use.  The Tenant shall use the Premises only for general office purposes, training rooms and related accessory uses.

 

6.2           Compliance with Law and Covenants.  The Tenant, throughout the Term and at its sole expense, in its use and possession of the Premises, shall comply promptly and fully with (i) all Legal Requirements applicable to the use, occupancy and alteration of the Premises; (ii) pay when due all personal property taxes, payroll taxes, income taxes, license fees and other taxes assessed, levied or imposed upon the Tenant or any other person in connection with the operation of its business upon the Premises or its use thereof in any other manner; and (iii) not obstruct, annoy or interfere with the rights of other tenants.  The Landlord shall deliver the Premises to the Tenant in compliance with all Legal Requirements.  During the Term, except for Tenant's obligations as set forth above, Landlord shall comply with all Legal Requirements which are applicable to any or all of the Building or Project.

 

6.3           Mechanics' Liens.  Without limiting the generality of the foregoing provisions of this section, the Tenant shall not create or permit to be created, and if created shall discharge, have released or bond over, any mechanics' or materialmens' lien arising while this Lease is in effect and affecting any or all of the Premises, the Building and/or the Project, and the Tenant shall not permit any other matter or thing whereby the Landlord's estate, right and interest in any or all of the Premises, the Building and/or the Project might be impaired.  The Tenant shall defend, indemnify and hold harmless the Landlord against and from any and all liability, claim of liability or expense (including but not limited to that of reasonable attorneys' fees) incurred by the Landlord on account of any such lien or claim.

  

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6.4           Signs.  Tenant shall have the right to install exterior signage at the entrance to the Premises, subject to Landlord’s prior written approval, which approval shall not be unreasonably withheld or delayed.  The Tenant shall not erect any other signs upon the Premises or the remainder of the Building or the Project without obtaining the prior written consent of Landlord.  The Landlord shall provide, at the Landlord’s sole expense for the first time only, customary identification of the Tenant’s business on the lobby directory of the Building.

 

6.5           License.

 

6.5.1        Grant of License.  The Landlord hereby grants to the Tenant a non-exclusive license to use (and to permit its officers, directors, agents, employees and invitees to use), in the course of conducting business at the Premises, the Common Areas.

 

6.5.2        Non-Exclusive License.  Such license shall be exercised in common with the exercise thereof by the Landlord, the other tenants or occupants of the Project, and their respective officers, directors, agents, employees and invitees.

 

6.5.3        Parking Areas; Changes.

 

(a)           The Landlord reserves the right to change the entrances, exits, traffic lanes, boundaries and locations of the Parking Areas.  The Landlord reserves the right to designate for the specific account of the Tenant, and/or of other tenants of the Project, specific parking areas or spaces constructed around, within or under the Project.  All Parking Areas and facilities which may be furnished by the Landlord in or near the Project, including any employee parking areas, truckways, loading docks, pedestrian sidewalks and ramps, landscaped areas and other areas and improvements which may be provided by the Landlord for the Tenant's exclusive use or for general use, in common with other tenants, their officers, agents, employees and visitors, shall at all times be subject to the Landlord's exclusive control and management, and the Landlord shall have the right from time to time to establish, modify and enforce reasonable rules and regulations with respect thereto.  The Landlord shall have the right to (a) police the Common Areas, (b) establish and from time to time to change the level of parking surfaces, (c) close all or any portion of the Common Areas to such extent as, in the opinion of the Landlord's counsel, may be legally sufficient to prevent a dedication thereof or the accrual of any rights to any person or to the public therein, (d) close temporarily all or any portion of the Parking Areas, (e) discourage non-tenant parking, and (f) do and perform such other acts in and to the Common Areas as, in the use of good business judgment, the Landlord determines to be advisable with a view to the improvement of the convenience and use thereof by tenants, their officers, agents, employees and visitors.  The Tenant shall cause its officers, agents and employees to park their automobiles only in such areas as the Landlord from time to time may designate by written notice to the Tenant as employee parking areas, and the Tenant shall not use or permit the use of any of the Common Areas in any manner which will obstruct the driveways or throughways serving the Parking Areas or any other portion of the Common Areas allocated for the use of others.

  

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(b)           Landlord hereby grants to Tenant and Tenant’s employees and invitees, the non-exclusive right during the Term to use without charge four (4) parking spaces per 1,000 square feet leased by Tenant for a total of 210 parking spaces, which parking spaces shall at all times be located within that certain area marked on Exhibit H.  At Landlord's request, Tenant shall provide license plate numbers for its employees and otherwise cooperate with Landlord's management of the Parking Areas, which may include attended parking service.  Such parking expenses shall be part of Operating Expenses.  To the extent additional parking spaces are available, Landlord may issue to Tenant additional parking permits at Landlord’s then standard rate, which rate may vary based upon whether such parking permits relate to outdoor or indoor parking.  If there is an increase or a decrease in the rentable square footage of the Premises, the number of parking spaces available to Tenant shall increase or decrease, as the case may be, at a rate of 4 spaces per 1,000 rentable square feet of such increase or decrease.  If Landlord constructs a structured parking garage on the Project that is available for use by commercial tenants, then Tenant shall have the right to park in such garage subject to the terms of this Lease.

 

6.5.4        Alterations.  The Landlord reserves the right at any time and from time to time (i) to change or alter the location, layout, nature or arrangement of the Common Areas or any portion thereof, including but not limited to the arrangement and/or location of entrances, passageways, doors, corridors, stairs, lavatories, elevators, parking areas, and other public areas of the Building, and (ii) to construct additional improvements on the Project and make alterations thereof or additions thereto and build additional stories on or in any such buildings adjoining the same; provided, however, that no such change or alteration shall deprive the Tenant of access (ingress and egress) to and from the Premises, the Parking Areas (except as permitted pursuant to Section 6.5.3(a) above) or the number of allocated parking spaces as set forth in Section 6.5.3(b) above, or materially adversely affect the visibility of the Premises or Tenant's ability to conduct business in the Premises.

 

6.5.5        Use of Common Areas. The Landlord shall at all times have full and exclusive control, management and direction of the Common Areas.  The Tenant shall maintain in a neat and clean condition that area designated by the Landlord as the refuse collection area, and shall not place or maintain anywhere within the Project, other than within the area which may be designated by Landlord from time to time as such refuse collection area, any trash, garbage or other items, except as may otherwise be expressly permitted by this Lease.

 

6.6           Liability of Landlord.  The Landlord and its agents and employees shall not be liable to the Tenant or any other person whatsoever (a) for any injury to person or damage to Project caused by any defect in or failure of equipment, pipes, wiring or broken glass, or the backing up of any drains, or by gas, water, steam, electricity or oil leaking, escaping or flowing into the Premises, or (b) for any loss or damage that may be occasioned by or through the acts or omissions of any other tenant of the Project or of any other person whatsoever, in each case other than due to the negligence, intentionally tortuous or other act or omission of the Landlord or its employees or agents.

  

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6.7           Floor Load.  The Tenant shall not place a load upon any floor of the Premises exceeding the floor load per square foot area which such floor was designed to carry.  The Landlord reserves the right to prescribe the weight and position of all safes and other heavy equipment, and to prescribe the reinforcing necessary, if any, which in the opinion of the Landlord may be required under the circumstances, such reinforcing to be at the Tenant's sole expense.  Business machines and mechanical equipment shall be placed and maintained by the Tenant in settings sufficient in the Landlord's judgment to absorb and prevent vibration and noise, and the Tenant shall, at its sole expense, take such steps as the Landlord may direct to remedy any such condition.

 

6.8           Hazardous Materials.  The Tenant warrants and agrees that the Tenant shall not cause or permit any Hazardous Material (defined below) to be brought upon, kept or used in or about the Premises by the Tenant, its agents, employees, contractors or invitees.  If the Tenant breaches the obligations stated in the preceding sentence, then the Tenant shall indemnify, defend and hold the Landlord harmless from and against any and all claims, judgments, damages, penalties, fines, costs, liabilities or losses (including, without limitation, diminution in value of the Premises, the Building and the Project generally, damages for the loss or restriction on use of rentable or usable space or of any amenity of the Building or the Project generally, damages from any adverse impact on marketing of space in the Building, and sums paid in settlement of claims, reasonable attorneys' fees, reasonable consultant fees and reasonable expert fees) which arise during or after the Term as a result of such contamination.  Tenant shall deliver to Landlord copies of all Material Safety Data Sheets or other written information prepared by manufacturers, importers or suppliers of any Hazardous Material brought upon the Premises, and all notices, filings, permits and any other written communications from or to Tenant and any entity regulating any Hazardous Materials brought upon the Premises.  For purposes of this Lease, the term “Hazardous Materials” shall mean pollutants, contaminants, toxic or hazardous wastes or other materials the removal of which is required or the use of which is regulated, restricted, or prohibited by any present or future federal, state or local laws, ordinances, rules or regulations (including the rules and regulations of the federal Environmental Protection Agency and comparable state agency) relating to the protection of human health or the environment, but excluding immaterial quantities of substances customarily and prudently used in the normal course of business on the Premises or in the cleaning or maintenance of the Premises in accordance with any applicable law.

 

7       INSURANCE AND INDEMNIFICATION.

 

7.1           Insurance.  At all times from and after the earlier of (i) the entry by the Tenant into the Premises, or (ii) the Rent Commencement Date, the Tenant shall take out and keep in full force and effect, at its expense:

 

(a)           commercial general liability insurance with a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) in the aggregate, which limit may be reasonably increased by Landlord to reflect changing legal liability standards;

  

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(b)           special form property insurance written at an amount sufficient to cover the full replacement cost value of all of Tenant's property within the Premises, except for improvements which are part of the Landlord's Work;

 

(c)           business interruption and extra expense insurance on an actual loss sustained basis and for a minimum period of twelve (12) months;

 

(d)           worker's compensation or similar insurance in form and amounts required by law; and

 

(e)           such other insurance in such types and amounts as Landlord may reasonably require, provided that such other insurance is in accordance with standards generally accepted for comparable buildings in the Providence area.

 

7.2         Tenant's Contractor's Insurance.  The Tenant shall require any contractor of the Tenant performing work in, on or about the Premises to take out and keep in full force and effect, at no expense to the Landlord, such insurance as Landlord may reasonably require in accordance with standards generally acceptable for comparable work in the Providence area.

 

7.3           Policy Requirements. The company or companies writing any insurance which the Tenant is required to take out and maintain or cause to be taken out or maintained pursuant to this Lease, as well as the form of such insurance, at all times be subject to the Landlord's reasonable approval, and any such company or companies shall be authorized to do business in the State of Rhode Island and have a rating of at least A- or better and a financial size rating of XII or larger from Best's Key Rating Guide and Supplemental Service (or comparable rating from a comparable insurance rating service).  Public liability and all-risk casualty insurance policies evidencing such insurance shall name the Landlord and/or its designees (including, without limitation, any Mortgagee) as additional insureds, shall be primary and noncontributory, and shall also contain a provision by which the insurer agrees that such policy shall not be cancelled, materially changed, terminated or not renewed except after thirty (30) days' advance written notice to the Landlord and/or such designees.  Tenant shall provide Landlord with certificates evidencing the insurance coverage required hereunder prior to the Commencement Date, upon renewal of each policy and upon written request from Landlord.

 

7.4           Indemnities by Tenant and Landlord.

 

7.4.1        Notwithstanding any policy or policies of insurance required of the Tenant, the Tenant, for itself and its successors and assigns, to the extent permitted by law, shall defend, indemnify and hold harmless the Landlord, the Landlord's agents and any Mortgagee against and from any and all liability or claims of liability by any person asserted against or incurred by the Landlord and/or such agent or Mortgagee in connection with (i) the use, occupancy, conduct, operation or management of the Premises by the Tenant or any of its agents, contractors, servants, employees, licensees, concessionaires, suppliers, materialmen or invitees during the Term; (ii) any work or thing whatsoever done or not done on the Premises during the Term performed by Tenant, its employees, agents or contractors; (iii) any breach or default in performing any of the obligations under the provisions of this Lease and/or applicable law by the Tenant or any of its agents, contractors, servants, employees, licensees, suppliers, materialmen or invitees during the Term; (iv) any negligent, intentionally tortuous or other act or omission by the Tenant or any of its agents, contractors, servants, employees, licensees, concessionaires, suppliers, materialmen or invitees during the Term; or (v) any injury to or death of any person or any damage to any property occurring upon the Premises (whether or not such event results from a condition existing before the execution of this Lease or resulting in the termination of this Lease) unless caused by the negligence, intentionally tortuous or other act or omission of Landlord, its agents or employees, and from and against all costs, expenses and liabilities incurred in connection with any claim, action, demand, suit at law, in equity or before any administrative tribunal, arising in whole or in part by reason of any of the foregoing (including, by way of example rather than of limitation, the fees of attorneys, investigators and experts), all regardless of whether such claim, action or proceeding is asserted before or after the expiration of the Term or any earlier termination of this Lease.

  

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7.4.2        If any such claim, action or proceeding is brought against the Landlord and/or any agent or Mortgagee, the Tenant, if requested by the Landlord or such agent or Mortgagee, and at the Tenant's expense, promptly shall resist or defend such claim, action or proceeding or cause it to be resisted or defended by an insurer.  The Tenant shall keep the Landlord reasonably apprised of the proceeding and shall not settle such proceeding without the prior written approval of the Landlord, not to be unreasonably withheld, conditioned or delayed unless such settlement would be adverse to the interests of Landlord in its commercially reasonable judgment in which case Landlord may withhold its consent in its sole discretion.

 

7.4.3        Subject to the provisions of subsection 7.8, the Landlord hereby agrees for itself and its successors and assigns to indemnify and save the Tenant harmless from and against any liability or claims of liability arising out of the negligence, intentionally tortuous or other act or omission of the Landlord, its agents or employees and/or any failure of Landlord to perform its obligations under the Lease.

 

7.5           Landlord Not Responsible for Acts of Others.  The Landlord shall not be responsible or liable to the Tenant, or to those claiming by, through or under the Tenant, for any loss or damage which may be occasioned by or through the acts or omissions of persons occupying or using space adjoining the Premises or any part of the premises adjacent to or connecting with the Premises or any other part of the Building or the Project, or for any loss or damage resulting to the Tenant (or those claiming by, through or under the Tenant) or its or their property, from (a) the breaking, bursting, stoppage or leaking of electrical cable and/or wires, or water, gas, sewer or steam pipes, (b) falling plaster, concrete or other matter, or (c) dampness, water, rain or snow in any part of the Building unless caused by the negligent, intentionally tortuous or other act or omission of the Landlord, its agents or employees.  To the maximum extent permitted by law, the Tenant agrees to use and occupy the Premises, and to use such other portions of the Project as the Tenant is herein given the right to use, at the Tenant's own risk. The Landlord is not obligated to protect from the criminal acts of third parties the Tenant, Tenant's agents, customers, invitees or  employees, the Premises or the property of Tenant or any property of any of Tenant's agents, customers, invitees or employees.  Tenant acknowledges that, if Landlord shall provide security guards for the Common Areas, Landlord does not represent, guarantee, or assume responsibility that Tenant will be secure from any claims or causes of action relating to such security guards.

  

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7.6           Landlord's Insurance.  During the Term, the Landlord shall maintain, in commercially reasonable amounts in accordance with standards generally accepted for comparable buildings in the Providence area, (a) insurance on the Project against loss or damage by fire and all of the hazards included in the extended coverage endorsement, (b) comprehensive liability and property damage insurance with respect to the Common Areas, against claims for personal injury or death, or property damage suffered by others occurring in, on or about the Project, and (c) any other insurance, in such form and in such amounts as are deemed reasonable by the Landlord, including, without limitation, rent continuation and business interruption insurance, theft insurance and workers' compensation, flood and earthquake, and boiler and machinery insurance.  The costs and expenses of any and all such insurance carried by the Landlord shall be deemed a part of Operating Costs.

 

7.7           Increase in Insurance Premiums.  The Tenant shall not do or suffer to be done, or keep or suffer to be kept, anything in, upon or about the Premises, the Building or the Project which will contravene the Landlord's policies of hazard or liability insurance or which will prevent the Landlord from procuring such policies from companies reasonably acceptable to the Landlord.  If anything done, omitted to be done, or suffered by the Tenant to be kept in, upon or about the Premises, the Building or the Project shall cause the rate of fire or other insurance on the Premises, the Building or the Project to be increased beyond the minimum rate from time to time applicable to the Premises or to any such other property for the use or uses made thereof, the Tenant shall pay to the Landlord, as Additional Rent, the amount of any such increase upon the Landlord's demand therefor.

 

7.8           Waiver of Right of Recovery.  To the extent that any loss or damage to the Premises, the Building, the Project, any building, structure or other tangible property, or resulting loss of income, or losses under workers' compensation laws and benefits, are covered by insurance, neither party shall be liable to the other party or to any insurance company insuring the other party (by way of subrogation or otherwise), even though such loss or damage might have been occasioned by the negligence of such party, its agents or employees.

 

8       SERVICES AND UTILITIES.

 

8.1           Services Provided.  Landlord shall provide the following services and utilities, the cost of which shall be included as an Operating Cost or paid by Tenant in accordance with Section 8.2 below:

 

(a)              central heating and air conditioning in the Premises and the Common Areas at temperature levels within a range of 68-74 degrees;

 

(b)              electrical service, subject to Tenant’s obligation to pay the costs of Tenant Electric;

 

(c)              janitorial services five business days per week pursuant to the specifications set forth on Exhibit G; and

 

(d)              at least one elevator, to be used in common with other tenants.

  

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Tenant shall have access to the Premises, utilities and elevators seven (7) days a week, twenty-four (24) hours a day, subject to and in accordance with any security procedures that Landlord may have in place and subject further to any maintenance and repairs to the utility systems and elevators which may be necessary to perform after hours.

 

8.2           Utility Providers.  Tenant shall be responsible for the payment of all Tenant Electric.   Tenant Electric used in the Premises shall be directly measured by a separate meter to be provided by Landlord as part of Landlord’s Work (unless provided by the utility company directly) and Tenant shall maintain an account in its name with such utility provider and shall pay such amounts directly to the applicable utility provider and, upon written request, provide Landlord with a copy of any invoices.  Upon reasonable prior notice, Landlord or its designated electric service provider may have access to the Premises to install equipment necessary to deliver electric service to the Premises or the Building provided that Landlord or the utility company shall restore the Premises to its condition prior to the commencement of such work.  Landlord and Tenant each reserve the right to switch utility providers, if legally permissible, at any time.  Landlord shall not be liable to Tenant for damages arising as a result of service interruptions caused by any electric service provider.  Electric current supplied to or used in the Premises may be measured by a submeter.

 

8.3           Interruption.  Any failure by the Landlord to furnish any of the foregoing services or utilities, resulting from circumstances beyond the Landlord's reasonable control or from interruption of such services due to repairs or maintenance, shall not render the Landlord liable in any respect for damages to either person or property, nor be construed as an eviction of the Tenant, nor cause an abatement of rent hereunder, nor relieve the Tenant from any of its obligations hereunder, unless caused by Landlord or its agents, employees and/or contractors.  If any public utility or governmental body shall require the Landlord or the Tenant to restrict the consumption of any utility or reduce any service for the Premises or the Building, the Landlord and the Tenant shall comply with such requirements, whether or not the services and utilities referred to herein are thereby reduced or otherwise affected, without any liability on the part of the Landlord to the Tenant or any other person or any reduction or adjustment in rent payable hereunder.  The Landlord and its agents shall be permitted reasonable access to the Premises for the purpose of installing and servicing systems within the Premises deemed necessary by the Landlord to provide the services and utilities referred to herein to the Tenant and other tenants in the Building.

 

8.4           Capacity.  Tenant shall not at any time overburden or exceed the capacity of the mains, feeders, ducts, conduits, or other facilities by which such utilities are supplied to, distributed in or serve the Premises.  If Tenant desires to install any equipment that shall require additional utility facilities or utility facilities of a greater capacity than the facilities existing, such installation shall be subject to Landlord's prior written approval of Tenant's plans and specifications therefor.  If such installation is approved by Landlord and if Landlord provides such additional facilities to accommodate Tenant's installation, Tenant agrees to pay Landlord, on demand, the cost for providing such additional utility facilities or utility facilities of greater capacity.  Except as provided by Landlord as part of Landlord’s Work, Landlord shall not be responsible for providing any meters or other devices for the measurement of utilities supplied to the Premises.  

  

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8.5           Trash Removal.  Landlord shall cause to be operated a trash removal service for the Project, the costs and expenses of which shall be a part of Operating Costs.  In the event that Tenant's use of the Premises requires trash removal services in excess of that required for standard office tenants, Tenant shall pay to Landlord, as additional rent all costs and expenses in excess of the trash removal costs which are attributable to such excess usage.  Tenant shall make its reasonable efforts to participate in Landlord’s recycling program.

 

8.6           Central HVAC System; Photovoltaic Power.  Electricity costs for powering the central HVAC system serving the Building (the “Central HVAC”) shall be a part of Operating Costs.  However, Landlord and Tenant agree to investigate the possibility of Tenant paying for its direct share of electricity used to power the Central HVAC.  In the event that Tenant pays for its share of electricity used to power the Central HVAC directly, Landlord shall make a commensurate reduction in the Base Rent due pursuant to Section 4.1 above.  If the Tenant is able to secure funding for a photovoltaic power system that provides Landlord with a full return on investment in less than six (6) years, Landlord will agree to pursue the approvals necessary for the installation of a photovoltaic power system in the Building.  In exchange, Tenant shall benefit from the free use of all electricity generated by the photovoltaic power system through the Term and any expansions and extensions thereof.

 

9       REPAIRS AND MAINTENANCE.

 

9.1           Landlord's Duty to Maintain Structure.  The Landlord shall maintain or cause to be maintained in good operating condition the structure of the Building and shall be responsible for structural repairs to the exterior walls, load bearing elements, foundations, roofs, structural columns and structural floors with respect thereto, and the Landlord shall make all required repairs thereto, the costs of which shall be Operating Costs, provided, however, that if the necessity for such repairs shall have arisen, in whole or in part, from the negligence or willful acts or omissions of the Tenant, its agents, concessionaires, officers, employees, licensees, invitees or contractors, or by any unusual use of the Premises by the Tenant, then the Landlord may collect the cost of such repairs, as Additional Rent, upon demand.  In addition, the Landlord shall provide the maintenance for all pipes and conduits and all mechanical, electrical, HVAC and plumbing systems so that such pipes, conduits and systems remain in good, safe, clean and sanitary condition, the costs of which shall be Operating Costs.  If Tenant requires lighting other than the standard lighting provided by Landlord for the Building, Tenant shall be required to pay for such lighting, including the replacement of its own light bulbs and ballasts or pay Landlord on demand for the costs thereof.  Any replacement light bulbs and ballasts for standard lighting provided by Landlord for the Building shall be at Landlord’s cost.

 

9.2           Tenant's Duty to Maintain Premises.  Except as provided in subsection 9.1, the Tenant shall keep and maintain the Premises and all fixtures and equipment located therein in a good, safe, clean and sanitary condition consistent with the operation of a first-class office building, and in compliance with all Legal Requirements applicable to the use, occupancy and alteration of the Premises. Except as provided in subsection 9.1, all injury, breakage and damage to the Premises (and to any other part of the Building and/or the Project, if caused by any act or omission of the Tenant, its agents, concessionaires, officers, employees, licensees, invitees or contractors) shall be repaired or replaced by the Tenant at its expense The Tenant shall keep the Premises in a neat, clean and orderly appearance to a standard reasonably satisfactory to the Landlord.  The Tenant shall surrender the Premises at the expiration of the Term or at such other time as the Tenant may vacate the Premises in accordance with Section 3.4 of the Lease.

  

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10           IMPROVEMENTS.

 

10.1.1        Initial Tenant Improvements.  The Landlord shall, at its sole cost and expense (except as set forth herein), diligently complete the improvements to the Building and the Premises, including all architectural and mechanical plans and construction drawings related thereto, in a good and workmanlike manner, in accordance with all applicable laws and governmental requirements and in accordance with the approved space plan, scope of work and specifications attached hereto as Exhibit C (the “Landlord’s Work”) as further refined and agreed to in accordance with that certain schedule as set forth on Exhibit F (the "Schedule of Deliveries").  Landlord and Tenant shall work together to achieve a LEED Commercial Interiors (CI) Certified level of certification for the Premises.  Landlord shall provide Tenant with as-built CAD files for the Premises after completion of Landlord’s Work.

 

10.1.2         Change Orders.  Tenant shall submit in writing any request for additional work or improvements or any changes or modifications to the Landlord’s Work, which shall be subject to Landlord’s approval, not to be unreasonably withheld or delayed.  If Landlord estimates that such additions, changes or modifications will increase the cost of Landlord’s Work (“Tenant Excess”), result in a Tenant Delay or otherwise delay Substantial Completion, then Landlord shall advise Tenant within five (5) calendar days of Tenant’s request of the cost of such change order and/or the delay in Substantial Completion that is due to the change order and, subject to Tenant’s right to revoke or continue with such request as provided hereinafter, the cost relating to such change order would be Tenant's sole responsibility.  Tenant shall have five (5) calendar days following receipt of such information from Landlord to elect to (a) revoke such request, or (b) continue with the modifications (it being agreed that Tenant’s failure to respond within such five (5) calendar day period shall be deemed an election to continue with the modifications).  Prior to the commencement of construction of Landlord’s Work, or prior to making any changes to Landlord’s Work, as applicable, Landlord may request that Tenant remit payment or authorization of payment for the Tenant Excess to Landlord.  Notwithstanding anything to the contrary herein, Landlord and Tenant may submit modifications to Landlord’s Work costing less than $5,000 upon oral notice to the Tenant’s Construction Contact and Landlord’s Construction Contact, as applicable.  Such modifications shall be documented in writing within five (5) calendar days after such oral request.  In the event of any Tenant Excess, Landlord shall be obligated to spend excess money to make additional tenant improvements only upon the satisfaction of the following two conditions: (i) the Landlord obtains an acceptable equity or financing source for the Tenant Excess, which equity or financing source shall be satisfactory to Landlord in its sole discretion and (ii) the Tenant agrees to pay an increased Base Rent in an amount necessary to amortize at ten percent (10%) the cost of the Tenant Excess over the remaining Term of the Lease.  If Tenant provides such additional funding, the promissory note and lease amendment in connection therewith shall be in substantially the form attached hereto as Exhibit E.

  

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10.1.3         Construction Contacts.  Tenant has designated Thomas Dziki to be Tenant’s construction contact (“Tenant’s Construction Contact”), who shall be entitled to field verify the existing status of the Premises, inspect the construction work, attend the periodic job-site meetings, and otherwise act on Tenant's behalf during construction.  Landlord shall provide Tenant’s Construction Contact with prior notice of all project meetings and copies of all material status reports.  Landlord agrees that it shall cooperate, and shall cause its contractor and Landlord's construction manager to cooperate, with Tenant's Construction Contact.  Tenant may designate a substitute Tenant's Construction Contact by written notice to Landlord.  Landlord has designated Sam Bradner to be Landlord’s construction contact (“Landlord’s Construction Contact”), who shall be Landlord’s liaison and be authorized to act on Landlord's behalf during construction.  Tenant agrees that it shall cooperate with Landlord’s Construction Contact and Landlord’s construction manager.  Landlord's Construction Contact shall have full authority to make all decisions on behalf of Landlord with respect to material or design changes and change orders (to be documented and submitted to the construction manager prior to completion), and any decisions made in the field by such construction contact shall be binding upon Landlord.  Landlord may designate a substitute Landlord's Construction Contact by written notice to Tenant.

 

10.1.4         Punchlist Inspection.  Within twenty (20) days following Substantial Completion, Tenant and Landlord shall inspect the Premises and Landlord and Tenant shall prepare and execute a punchlist.  Landlord shall complete as soon as conditions practically permit all punchlist items with a good faith effort on the part of Landlord to complete the punchlist items within thirty (30) days of the punchlist preparation and execution, and Tenant shall reasonably cooperate with Landlord in using the Premises in a manner that will not materially increase the cost of completion of the punchlist items.  Tenant shall not be responsible for the costs of completion of the punchlist items unless such costs are related to change orders approved in accordance with Section 10.1.2 and are payable by Tenant.

 

10.1.5         Construction.  As of the date of this Lease, Tenant acknowledges that the Building and the Project are under construction by the Landlord and that, during such construction, disruptions and inconveniences to the Tenant may occur.  During the construction and renovation of the Building and the Project, Tenant agrees to provide Landlord with any and all access to the Premises as is necessary for Landlord to complete the construction and renovation of the Building and the Project, provided however, Landlord agrees to use its best efforts to minimize any and all disruption and inconveniences to the Tenant.  In addition, Tenant agrees to follow the rules and regulations with respect to a site under construction, including, but not limited to, following all safety guidelines posted around or in construction areas.  No construction activities shall deprive the Tenant of access (ingress and egress) to and from the Premises, the Parking Areas (except as permitted pursuant to Section 6.5.3(a) above) or the number of allocated parking spaces as set forth in Section 6.5.3(b) above, or materially adversely affect the visibility of the Premises or Tenant's ability to conduct business in the Premises.

 

10.2           Tenant Alterations.

  

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10.2.1         The Tenant shall not make any alteration, improvement or addition which affects the structural portions of the Building or any non-structural interior alteration, improvement or addition in the aggregate costing more than Fifty Thousand Dollars ($50,000) (excluding painting, wallpapering and carpeting) (collectively "Alterations") to the Premises without first:

 

(a)           presenting to the Landlord plans and specifications therefor and obtaining the Landlord's written consent thereto (which shall not, in the case of (1) non-structural interior Alterations, or (2) Alterations that would not affect any electrical, mechanical, plumbing or other Building systems, be unreasonably withheld so long as such Alterations will not violate applicable law, historic preservation guidelines, or the provisions of this Lease, or impair the value of the Premises, the Building or the rest of the Project or be visible from the exterior of the Building) and

 

(b)           obtaining any and all governmental permits or approvals for such Alterations, which are required by applicable law; provided, that (1) any and all contractors or workmen performing such Alterations must first be approved by the Landlord, (2) all work is performed in a good and workmanlike manner in compliance with all applicable codes, rules, regulations and ordinances, and (3) the Tenant shall restore the Premises to its condition immediately before such Alterations were made, by not later than the date on which the Tenant vacates the Premises or the Termination Date, whichever is earlier.

 

10.2.2         The Tenant shall be responsible for the cost of repairing any damage to the Building caused by bringing therein any property for its use, or by the installation or removal of such property, regardless of fault or by whom such damage is caused.  Landlord shall have the right to require Tenant to remove any Alterations at the expiration or early termination of the Term and restore the Premises to substantially the condition prior to the completion of such Alterations, provided that Landlord gives Tenant written notice of such requirement prior to Tenant’s installation of such Alterations.

 

10.3           Acceptance of Possession.  The Tenant shall for all purposes of this Lease be deemed to have accepted the Premises and the Building and to have acknowledged them to be in the condition called for hereunder except with respect to those latent defects and defects of which the Tenant notifies the Landlord within sixty (60) days after the Rent Commencement Date, except that Tenant shall have (a) thirty (30) days after completion of the punchlist to notify Landlord of any defects in the punchlist items and (b) three hundred sixty-five (365) days after the Rent Commencement Date to notify Landlord of any hidden or latent defects or any defects to the HVAC system installed as part of Landlord's Work.

 

10.4           Fixtures.  Any and all improvements, repairs, alterations and all other property attached to, used in connection with or otherwise installed within the Premises by the Landlord or the Tenant shall become the Landlord's property, without payment therefor by the Landlord, immediately on the completion of their installation; provided that any machinery, equipment or fixtures installed by the Tenant and used in the conduct of the Tenant's trade or business (rather than to service the Premises, the Building or the Project generally) and not part of the Building Service Equipment shall remain the Tenant's property; but further provided that if any leasehold improvements made by the Tenant replaced any part of the Premises, such leasehold improvements that replaced any part of the Premises shall be and remain the Landlord's property.

  

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11       LANDLORD'S RIGHT OF ENTRY.

 

The Landlord and its authorized representatives shall be entitled to enter the Premises at any reasonable time during the Tenant's usual business hours after giving the Tenant at least twenty-four (24) hours' oral or written notice thereof, (a) to inspect the Premises, (b) to exhibit the Premises (i) to any existing or prospective purchaser or Mortgagee thereof, or (ii) to any prospective tenant thereof, provided that in doing so the Landlord and each such invitee observes all reasonable safety standards and procedures which the Tenant may require, and (c) to make any repair thereto and/or to take any other action therein which the Landlord is permitted to take by this Lease or applicable law (provided, that in any situation in which, due to an emergency or otherwise, the Landlord reasonably believes the physical condition of the Premises, the Building or any part of the Project would be unreasonably jeopardized unless the Landlord were to take such action immediately, the Landlord shall not be required to give such notice to the Tenant and may enter the same at any time).  Nothing in this section shall be deemed to impose any duty on the Landlord to make any such repair or take any such action, and the Landlord's performance thereof shall not constitute a waiver of the Landlord's right hereunder to have the Tenant perform such work.  Unless caused by the negligence, intentionally tortuous or other act or omission of the Landlord, its agents or employees, the Landlord shall not in any event be liable to the Tenant for any inconvenience, annoyance, disturbance, loss of business or other damage sustained by the Tenant by reason of the making of such repairs, the taking of such action or the bringing of materials, supplies and equipment upon the Premises during the course thereof, and the Tenant's obligations under this Lease shall not be affected thereby; however, Landlord shall use reasonable efforts to minimize any disruption to Tenant's use and occupancy of, or access to, the Premises in connection with the exercise of the foregoing rights.

 

12       DAMAGE OR DESTRUCTION.

 

12.1           Option to Terminate.  If during the Term either the Premises or any portion of the Building or the Project are substantially damaged or destroyed by fire or other casualty, the Landlord shall have the option (which it may exercise by giving written notice thereof to the Tenant within ninety (90) days after the date on which such damage or destruction occurs) to terminate this Lease as of the date specified in such notice (which date shall not be earlier than the thirtieth (30th) day after such notice is given).  On such termination, the Tenant shall pay to the Landlord all Base Rent, Additional Rent and other sums and charges payable by the Tenant hereunder and accrued through such date (as justly apportioned to the date of such termination).  If  the Landlord does not terminate this Lease pursuant to this section, the Landlord shall restore the Premises as soon thereafter as is reasonably possible to their condition on the date of completion of the Landlord's Work, taking into account any delay experienced by the Landlord in recovering the proceeds of any insurance policy payable on account of such damage or destruction and in obtaining any necessary permits.  Until the Premises are so repaired, the Base Rent (and each installment thereof) and the Additional Rent shall abate in proportion to the floor area of so much, if any, of the Premises as is rendered substantially unusable by the Tenant by such damage or destruction.  Notwithstanding the foregoing, if all or any portion of the Premises shall be made untenantable by fire or other casualty, Landlord shall, with reasonable promptness, provide Tenant with a written estimate of the amount of time required to substantially complete the repair and restoration of the Premises (the "Completion Estimate").  If the Completion Estimate indicates that the Premises cannot be repaired or restored within one hundred eighty (180) days from the date of the casualty, then Tenant shall have the right to terminate this Lease by giving written notice to the Landlord of such election within fifteen (15) days after receipt of the Completion Estimate.  If Tenant elects not to terminate this Lease, Landlord shall promptly commence repair and restoration of the Premises and diligently pursue same to completion.  Upon termination of this Lease pursuant to this subsection, Tenant shall pay to the Landlord all Base Rent, Additional Rent and other sums and charges payable by the Tenant hereunder and accrued through the date of the casualty.

  

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12.2           No Termination of Lease.  Except as is otherwise expressly permitted by subsection 12.1, no total or partial damage to or destruction of any or all of the Premises shall entitle either party hereto to surrender or terminate this Lease, or shall relieve the Tenant from its liability hereunder to pay in full the Base Rent, any Additional Rent and all other sums and charges which are otherwise payable by the Tenant hereunder, or from any of its other obligations hereunder, and the Tenant hereby waives any right now or hereafter conferred upon it by statute or otherwise, on account of any such damage or destruction, to surrender this Lease, to quit or surrender any or all of the Premises, or to have any suspension, diminution, abatement or reduction of the Base Rent or any Additional Rent or other sum payable by the Tenant hereunder.

 

13       CONDEMNATION.

 

13.1           Termination of Lease.  If any or all of the Premises and/or of that portion of the Building in which the Premises is located is taken by the exercise of any power of eminent domain or is conveyed to or at the direction of any governmental entity under a threat of any such taking (each of which is herein referred to as a "Condemnation"), this Lease shall terminate on the date on which the title to so much of the Premises as is the subject of such Condemnation vests in the condemning authority, unless the parties hereto otherwise agree in writing.  If this Lease is not terminated pursuant to this subsection, the Landlord shall restore any of the Premises damaged by such Condemnation substantially to its condition immediately before such Condemnation, as soon after the Landlord's receipt of the proceeds of such Condemnation as is reasonably possible under the circumstances.

 

13.2           Condemnation Proceeds.  Regardless of whether this Lease is terminated under this section, the Tenant shall have no right in any such Condemnation to make any claim on account thereof against the condemning authority, except that the Tenant may make a separate claim for the Tenant's moving expenses and the value of the Tenant's trade fixtures, provided that such claim does not reduce the sums otherwise payable by the condemning authority to the Landlord.  Except as aforesaid, the Tenant hereby (a) waives all claims which it may have against the Landlord or such condemning authority by virtue of such Condemnation, and (b) assigns to the Landlord all such claims (including but not limited to all claims for leasehold damages or diminution in value of the Tenant's leasehold interest hereunder).

  

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13.3           Effect on Rent.  If this Lease is terminated under this section, any Base Rent, any Additional Rent and all other sums and charges required to paid by the Tenant hereunder shall be apportioned and paid to the date of such termination.  If this Lease is not so terminated in the event of a Condemnation, the Base Rent (and each installment thereof) and the Additional Rent shall be abated from the date on which the title to so much, if any, of the Premises as is the subject of such Condemnation vests in the condemning authority, through the Termination Date, in proportion to the floor area of such portion of the Premises as is the subject of such Condemnation.

 

13.4           No Termination of Lease.  Except as otherwise expressly provided in this section, no partial Condemnation shall entitle either party hereto to surrender or terminate this Lease, or shall relieve the Tenant from its liability hereunder to pay in full the Base Rent, any Additional Rent and all other sums and charges which are otherwise payable by the Tenant hereunder, or from any of its other obligations hereunder, and the Tenant hereby waives any right now or hereafter conferred upon it by statute or otherwise, on account of any such Condemnation, to surrender this Lease, to quit or surrender any or all of the Premises, or to receive any suspension, diminution, abatement or reduction of the Base Rent or any Additional Rent or other sum payable by the Tenant hereunder.

 

14       ASSIGNMENT AND SUBLETTING.

 

14.1           Landlord's Consent Required.  The Tenant shall not assign this Lease, in whole or in part, nor sublet all or any part of the Premises, nor license concessions or lease departments therein, nor otherwise permit any other person to occupy or use any portion of the Premises (collectively, a "Transfer"), without in each instance first obtaining the written consent of the Landlord, which consent may not be unreasonably withheld or delayed.  Notwithstanding the foregoing, Tenant shall have the right without Landlord’s prior written consent to assign this Lease or sublet all or any part of the Premises to any parent, subsidiary, affiliate corporation of the survivor of any merger or to the purchaser of all or substantially all of the assets of Tenant.  Consent by the Landlord to any assignment, subletting, licensing or other transfer shall not (i) constitute a waiver of the requirement for such consent to any subsequent assignment, subletting, licensing or other Transfer, (ii) relieve the Tenant from its duties, responsibilities and obligations under this Lease, or (iii) relieve any guarantor of this Lease from such guarantor's obligations under its guaranty agreement.

 

14.2           Acceptance of Rent from Transferee.  The acceptance by the Landlord of the payment of Rent from any person following any act, assignment or other Transfer prohibited by this section shall not constitute a consent to such act, assignment or other Transfer, nor shall the same be deemed to be a waiver of any right or remedy of the Landlord's hereunder.

 

14.3           Conditions of Consent.  All reasonable costs incurred by the Landlord in connection with any request for consent to a Transfer, including reasonable costs of investigation and the reasonable fees of the Landlord's counsel, which costs shall not exceed One Thousand Five Hundred Dollars ($1,500.00), shall be paid by the Tenant on demand as a further condition of any consent which may be given.

  

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14.4           Profits from Use or Transfer.  The Tenant agrees that in the event of a Transfer requiring Landlord’s consent, the Tenant shall pay the Landlord, within ten (10) days after receipt thereof, fifty percent (50%) of the excess of (i) any and all consideration, money or thing of value, however characterized, received by the Tenant or payable to the Tenant in connection with or arising out of such Transfer, over (ii) all amounts otherwise payable by the Tenant to the Landlord pursuant to this Lease, less any and all reasonable costs incurred by Tenant in effecting the Transfer.  The sums payable pursuant to this Section 14.4 are in addition to Tenant’s or Tenant’s transferee’s obligation to pay Base Rent, Additional Rent, and all other sums payable pursuant to the terms of this Lease.

 

14.5           Landlord's Right of Recapture.  If Tenant intends to sublease any portion of the Premises or assign this Lease, which subletting or assignment requires Landlord consent under Section 14.1, then Tenant shall give written notice of such intent to Landlord, which notice shall constitute an offer to Landlord to recapture the Premises, or the portion of the Premises covered by such sublease, as the case may be.  Tenant's notice to Landlord shall identify the specific "Rentable Area" of the Premises subleased or indicate that the Lease is to be assigned, and the date of commencement and termination of the sublease or the effective date for the assignment, and shall include a copy of all of the documents relating to such sublease or assignment.  Within thirty (30) days after Landlord's receipt of Tenant's notice, Landlord may at its sole option elect to recapture the Premises or such portion thereof, as the case may be, by giving Tenant written notice thereof.  If Landlord exercises its option, Tenant shall notify the prospective subtenant or assignee of Landlord's election, shall terminate the agreement with such prospective subtenant or assignee if so directed by Landlord, and shall surrender the space to Landlord pursuant to a written partial or total surrender of lease, as applicable, reasonably satisfactory to both parties, providing for the termination of this Lease with respect to the Premises or such portion thereof and the parties' obligations to each other with respect to such space.  Upon any partial termination under this Section 14.5, (x) the Rentable Area of the Premises shall be adjusted, and the base rent and additional rent shall be pro-rated as of the date of termination and shall be abated following the termination as to the surrendered Rentable Area, and (y) Landlord, at Landlord's sole cost and expense, shall construct Building standard demising walls to separate the space covered by such partial termination from the remaining part of the Premises.

 

15       RULES AND REGULATIONS.

 

The Landlord shall have the right to prescribe, at its sole discretion, the Rules and Regulations.  The Rules and Regulations may govern, without limitation, the use of sound apparatus, noise or vibrations emanating from machinery or equipment, obnoxious fumes and/or odors, the parking of vehicles, lighting and storage and disposal of trash and garbage.  The Landlord will not enforce the Rules and Regulations in a discriminatory manner and will make reasonable efforts to enforce the Rules and Regulations uniformly against all tenants.  The Tenant shall adhere to the Rules and Regulations and shall cause its agents, employees, invitees, visitors and guests to do so.  A copy of the Rules and Regulations in effect on the date hereof is attached hereto as Exhibit D. The Landlord shall have the right to amend the Rules and Regulations from time to time, provided that such amendment shall not have a material adverse effect on Tenant’s use of the Premises.  In the event of a conflict between the terms set forth in the Rules and Regulations and the terms set forth in this Lease, the terms set forth in this Lease shall govern.

  

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16       SUBORDINATION AND ATTORNMENT.

 

16.1           Subordination.

 

16.1.1        Unless a Mortgagee otherwise shall elect as provided herein, the Tenant's rights under this Lease are and shall remain subject and subordinate to the operation and effect of any mortgage, deed of trust or other security instrument constituting a lien upon the Premises, and/or the Project, whether the same shall be in existence on the date hereof or created hereafter (any such lease, mortgage, deed of trust or other security instrument being referred to herein as a "Mortgage," and the party or parties having the benefit of the same, whether as beneficiary, trustee or noteholders being referred to hereinafter collectively as "Mortgagee"), provided that any subordination shall provide for non-disturbance in favor of the Tenant so that in the event of any foreclosure of the Mortgage, so long as Tenant is not in default of its obligations under this Lease and agrees to attorn to a foreclosure sale purchaser, Tenant’s rights under this Lease shall not be disturbed.  The Tenant's acknowledgment and agreement of subordination as provided for in this section is self-operative and no other instrument of subordination shall be required; however, the Tenant shall execute, within ten (10) days after request therefor, a reasonable document providing for such further assurance thereof and for such other matters as shall be requisite or as may be requested from time to time by the Landlord or any Mortgagee.  At Tenant’s request, Landlord agrees to use commercially reasonable efforts to obtain a commercially reasonable subordination, attornment and non-disturbance agreement on Landlord’s current mortgagee’s standard form.

 

16.1.2        The Landlord hereby directs the Tenant, upon (i) the occurrence of any event of default by the Landlord, as mortgagor under any Mortgage, (ii) the receipt by the Tenant of a notice of the occurrence of such event of default under such Mortgage from the Landlord or such Mortgagee, or (iii) a direction by the Mortgagee under such Mortgage to the Tenant to pay all Rent thereafter to such Mortgagee, to make such payment to such Mortgagee, and the Landlord agrees that in the event that the Tenant makes such payments to such Mortgagee, as aforesaid, the Tenant shall not be liable to the Landlord for the same.  In addition, the Mortgagee (and any person who acquires the property from Mortgagee) shall not be responsible for security deposits not actually received by the Mortgagee, or its affiliate, after the Mortgagee, or its affiliate, becomes the owner of the property.

 

16.2           Mortgagee's Unilateral Subordination.  If a Mortgagee shall so elect by notice to the Tenant or by the recording of a unilateral declaration of subordination, this Lease and the Tenant's rights hereunder shall be superior and prior in right to the Mortgage of which such Mortgagee has the benefit, with the same force and effect as if this Lease had been executed, delivered and recorded prior to the execution, delivery and recording of such Mortgage, subject, nevertheless, to such conditions as may be set forth in any such notice or declaration.

 

16.3           Attornment.  If any Person shall succeed to all or any part of the Landlord's interest in the Premises, whether by purchase, foreclosure, deed in lieu of foreclosure, power of sale, termination of lease or otherwise, and if such successor-in-interest requests or requires, the Tenant shall attorn to such successor-in-interest and shall execute within ten (10) after receipt thereof an agreement in confirmation of such attornment in a form as may be reasonably requested by such successor-in-interest.  Failure to respond within such ten (10) day period shall be deemed to be a confirmation by the Tenant of the facts and matters set forth therein.

  

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16.4           Superior Leases.  Tenant acknowledges that Landlord may restructure the ownership of the Project involving one or more ground leases or master leases (the "Superior Leases").  In such event, Tenant agrees that this Lease will be automatically subordinated to such Superior Leases or, at Landlord's option, Tenant enter into a new sublease with the applicable master lessee upon substantially the same terms and conditions as are set forth herein, provided that in connection with such subordination or such new sublease, so long as Tenant is not in default hereunder beyond the expiration of any notice and cure period, in the event of a termination of any Superior Lease, Tenant's rights of use and occupancy shall not be disturbed and this Lease will automatically become a direct lease with the landlord under the Superior Lease.

 

17           DEFAULTS AND REMEDIES.

 

17.1           "Event of Default" Defined.  Any one or more of the following events shall constitute a default under the terms of this Lease ("Event of Default"):

 

(a)           the failure of the Tenant to pay any Rent or other sum of money due hereunder to the Landlord or any other person within ten (10) days after written notice that the same is due;

 

(b)           the filing of a petition proposing the adjudication of the Tenant as a bankrupt or insolvent, or the reorganization of the Tenant, or an arrangement by the Tenant with its creditors, whether pursuant to the Federal Bankruptcy Act or any similar federal or state proceeding, unless such petition is filed by a party other than the Tenant and is withdrawn or dismissed within ninety (90) days after the date of its filing;

 

(c)           the appointment of a receiver or trustee for the business or property of the Tenant, unless such appointment is vacated within ninety (90) days of its entry;

 

(d)           the making by the Tenant of an assignment for the benefit of  its creditors;

 

(e)           a default by the Tenant in the performance or observance of any covenant or agreement of this Leases to be performed or observed by the Tenant (other than as set forth in clauses (a) through (d) above), which default is not cured within thirty (30) days after the giving of written notice thereof by the Landlord, unless such default is of such nature that it cannot be cured within such 30-day period, in which event an Event of Default shall not be deemed to have occurred if the Tenant institutes a cure within the 30-day period and thereafter diligently and continuously prosecutes the curing of the same until completion, but in no event shall such cure period exceed ninety (90) days; provided, however, that if the Tenant defaults in the performance of any such covenant or agreement more than once in any twelve (12) month period during the Term, then notwithstanding that such defaults have each been cured by the Tenant, any further defaults shall be deemed an Event of Default without the ability to cure; or

 

(f)           the vacating or abandonment of the Premises by the Tenant at any time during the Term.

  

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17.2           Landlord's Remedies.  Upon the occurrence of an Event of Default, the Landlord, without notice to the Tenant in any instance (except where expressly provided for below), may do any one or more of the following:

 

(a)           perform, on behalf and at the expense of the Tenant, any obligation of the Tenant under this Lease which the Tenant has failed to perform beyond any applicable grace or cure periods and of which the Landlord shall have given the Tenant notice (except in an emergency situation in which no notice is required), the cost of which performance by the Landlord, together with interest thereon at the Default Rate from the date of such expenditure, shall be deemed Additional Rent and shall be payable by the Tenant to the Landlord as otherwise set forth herein;

 

(b)           elect to terminate this Lease and the tenancy created hereby by giving notice of such election to the Tenant without any right on the part of the Tenant to save the forfeiture by payment of any sum due or by other performance of condition, term, agreement or covenant broken, or elect to terminate the Tenant's possessory rights and all other rights of the Tenant without terminating this Lease, and in either event, at any time thereafter without notice or demand and without any liability whatsoever, re-enter the Premises by force, summary proceedings or otherwise to the extent permitted by applicable law, and remove the Tenant and all other persons and property from the Premises, and store such property in a public warehouse or elsewhere at the cost and for the account of the Tenant without resort to legal process and without the Landlord being deemed guilty of trespass or becoming liable for any loss or damage occasioned thereby; and

 

(c)           exercise any other legal and/or equitable right or remedy which it may have at law or in equity, including rights of specific performance and/or injunctive relief, where appropriate.

 

17.3           Damages.

 

17.3.1        If this Lease or Tenant’s right to possession is terminated by the Landlord pursuant to subsection 17.2, the Landlord shall use commercially reasonable efforts to relet the Premises and to otherwise mitigate its damages hereunder (provided, however, that such duty shall not be construed to require Landlord to lease the Premises in preference to other premises owned by Landlord and available for lease), and the Tenant nevertheless shall remain liable for any Rent and damages which may be due or sustained prior to such termination, as well as all reasonable costs, fees and expenses incurred by the Landlord in pursuit of its remedies hereunder, and/or in connection with any bankruptcy proceedings of the Tenant, and/or in connection with renting the Premises to others from time to time plus either:

 

(i)           the Rent which, but for the termination of this Lease, would have become due during the remainder of the Term, less the amount or amounts of rent, if any, which the Landlord receives during such period from others to whom the Premises may be rented (other than any additional rent received by the Landlord as a result of any failure of such other person to perform any of its obligations to the Landlord), in which case damages shall be computed and payable in monthly installments, in advance, on the first business day of each calendar month following the termination of this Lease and shall continue until the date on which the Term would have expired but for such termination, and any action or suit brought to collect any such damages for any month shall not in any manner prejudice the right of the Landlord to collect any damages for any subsequent months by similar proceeding; or

  

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(ii)           liquidated damages equal to the present worth (as of the date of such termination) of the Rent which, but for the termination of this Lease, would have become due during the remainder of the Term, less the fair rental value of the Premises, as determined by an independent real estate broker selected by the Landlord, in which case such damages shall be payable to the Landlord in one lump sum on demand, and shall bear interest at the Default Rate.  "Present worth" shall be computed by discounting such amount to present worth at a rate equal to one percentage point above the discount rate then in effect at the Federal Reserve Bank.

 

17.3.2        Notwithstanding anything to the contrary set forth in this subsection 17.3, if either party commences an action against the other party arising out of or in connection with this Lease, the prevailing party shall be entitled to have and recover from the losing party reasonable attorneys' fees, costs of suit, investigation expenses and discovery costs, including costs of appeal.

 

17.4           Waiver of Jury Trial.  Each party hereto hereby waives any right which it may otherwise have at law or in equity to a trial by jury in connection with any suit or proceeding at law or in equity brought by the other against the waiving party or which otherwise relates to this lease, as a result of an event of default or otherwise.  The Tenant agrees that in the event the Landlord commences any summary proceeding for nonpayment of rent or possession of the Premises, the Tenant will not, and hereby waives, all right to interpose any counterclaim of whatever nature in any such proceeding.

 

18       ESTOPPEL CERTIFICATE.

 

From time to time, within ten (10) days after request from the Landlord, Tenant agrees to execute a written estoppel certificate in form and substance as may be reasonably requested from time to time by the Landlord, or any Mortgagee, certifying to any Mortgagee, any purchaser of Landlord's interest in all or any part of the Property, or any other person or entity designated by Landlord, as of the date of such estoppel certificate, the following: (a) whether the Tenant is in possession of the Premises; (b) whether this Lease is in full force and effect; (c) whether there are any amendments to this Lease, and if so, specifying such amendments; (d) whether there are any then-existing setoffs or defenses against the enforcement of any rights hereunder, and if so, specifying such matters in detail; (e) the dates, if any, to which any rent or other sums due hereunder have been paid in advance and the amount of any security deposit held by the Landlord; (f) that the Tenant has no knowledge of any then-existing defaults of the Landlord under this Lease, or if there are such defaults, specifying them in detail; (g) that the Tenant has no knowledge of any event having occurred that authorized the termination of this Lease by the Tenant, or if such event has occurred, specifying it in detail; (h) the address to which notices to the Tenant should be sent; and (i) any and all other matters reasonably requested by the Landlord, any Mortgagee and/or any other person or entity designated by the Landlord.  Any such estoppel certificate may be relied upon by the person or entity to whom it is directed or by any other person or entity who could reasonably be expected to rely on it in the normal course of business.  The failure of the Tenant to execute, acknowledge and deliver such a certificate in accordance with this section within ten (10) days after a request therefor by the Landlord shall constitute an acknowledgment by the Tenant, which may be relied on by any person or entity who would be entitled to rely upon any such certificate, that such certificate as submitted by the requesting party to the other party is true and correct, and the requesting party is hereby authorized to so certify.

 

  

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19       QUIET ENJOYMENT.

 

The Landlord hereby warrants that, so long as all of the Tenant's obligations hereunder are timely performed, the Tenant will have during the Term quiet and peaceful possession of the Premises and enjoyment of such rights as the Tenant may hold hereunder to use the Common Areas, except if and to the extent that such possession and use are terminated pursuant to this Lease.  

 

20       NOTICES.

 

Except as may be otherwise provided in this Lease, any notice, demand, consent, approval, request or other communication or document to be provided hereunder to the Landlord or the Tenant (a) shall be in writing, and (b) shall be deemed to have been provided (i) two (2) days following the date sent as certified mail in the United States mails, postage prepaid, return receipt requested, (ii) on the day following the date it is deposited prior to the close of business with Federal Express or another national courier service or (iii) on the date of hand delivery (if such party's receipt thereof is acknowledged in writing), in each case to the address of such party set forth hereinbelow or to such other address as such party may designate from time to time by notice to each other party hereto.

 

If to the Landlord, notice shall be sent to:

Struever Bros. Eccles & Rouse, Inc.

1040 Hull Street, Suite 200

Baltimore, Maryland  21230

Attention:  Asset Management

 

with a copy to:

 

John P. Machen, Esquire

DLA Piper LLP (US)

6225 Smith Avenue

Baltimore, Maryland  21209

  

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If to the Tenant, notice shall be sent to:

 

Prior to occupancy:

 

260 Lake Road

Dayville, Connecticut 06241

Attention:  Thomas A. Dziki

After occupancy:

The Premises

Attention:  Thomas A. Dziki

with a copy to:

Joseph A. Anesta, Esq.

Cameron & Mittleman LLP

56 Exchange Terrace

Providence, Rhode Island  02903

 

21       GENERAL

 

21.1           Effectiveness.  This Lease shall become effective on and only on its execution and delivery by each party hereto.

 

21.2           Complete Understanding.  This Lease represents the complete understanding between the parties hereto as to the subject matter hereof, and supersedes all prior negotiations, representations, guaranties, warranties, promises, statements and agreements, either written or oral, between the parties hereto as to the same.

 

21.3           Amendment.  This Lease may be amended by and only by an instrument executed and delivered by each party hereto.

 

21.4           Waiver.  No party hereto shall be deemed to have waived the exercise of any right which it holds hereunder unless such waiver is made expressly and in writing (and, without limiting the generality of the foregoing, no delay or omission by any party hereto in exercising any such right shall be deemed a waiver of its future exercise).  No such waiver made in any instance involving the exercise of any such right shall be deemed a waiver as to any other such instance or any other such right.  Without limiting the generality of the foregoing provisions of this subsection, the Landlord's receipt or acceptance of any Base Rent, Additional Rent or other sum from the Tenant or any other person shall not be deemed a waiver of the Landlord's right to enforce any of its rights hereunder on account of any default by the Tenant in performing its obligations hereunder.

  

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21.5           Applicable Law.  This Lease shall be given effect and construed by application of the laws of Rhode Island and any action or proceeding arising hereunder shall be brought in the courts of Rhode Island.

 

21.6           Commissions.  The parties hereto hereby acknowledge and agree that, in connection with the leasing of the Premises hereunder, they have used the services of CB Richard Ellis-New England.  Any and all commissions due such brokers shall be paid in accordance with the terms and conditions set forth in a separate written agreement or agreements between the Landlord and such broker.  Subject to the foregoing, each party hereto hereby represents and warrants to the other that, in connection with such leasing, the party so representing and warranting has not dealt with any real estate broker, agent or finder, and there is no commission, charge or other compensation due on account thereof.  Each party hereto shall indemnify and hold harmless the other against and from any inaccuracy in such party's representation.

 

21.7           Landlord's Liability.   No Person holding the Landlord's interest hereunder (whether or not such Person is named as the "Landlord" herein) shall have any liability hereunder after such Person ceases to hold such interest, except for any such liability accruing while such Person holds such interest.  No Mortgagee not in possession of the Premises shall have any liability hereunder.  Neither the Landlord nor any principal of the Landlord, whether disclosed or undisclosed, shall have any personal liability under this Lease.  If the Landlord defaults in performing any of its obligations hereunder or otherwise, the Tenant shall look solely to the Landlord's equity, interest and rights in the Project and the proceeds thereof to satisfy the Tenant's remedies on account thereof.

 

21.8           Remedies Cumulative.  No reference to any specific right or remedy shall preclude the Landlord from exercising any other right or from having any other remedy or from maintaining any action to which it may otherwise be entitled at law or in equity.  No failure by the Landlord 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, agreement, term, covenant or condition.  No waiver by either party of any breach by the other party under this Lease or of any breach by any other tenant under any other lease of any portion of the Building shall affect or alter this Lease in any way whatsoever.

 

21.9           Severability.  No determination by any court, governmental or administrative body or agency or otherwise that any provision of this Lease or any amendment hereof is invalid or unenforceable in any instance shall affect the validity or enforceability of (a) any other provision hereof, or (b) such provision in any circumstance not controlled by such determination.  Each such provision shall remain valid and enforceable to the fullest extent allowed by, and shall be construed wherever possible as being consistent with, applicable law.

 

21.10         Authority.  If the Tenant is a corporation partnership, limited liability company or similar entity, the person executing this Lease on behalf of the Tenant represents and warrants that (a) the Tenant is duly organized and validly existing and (b) this Lease (i) has been authorized by all necessary parties, (ii) is validly executed by an authorized officer or agent of the Tenant and (iii) is binding upon and enforceable against the Tenant in accordance with its terms.

 

21.11         Recordation.  Except for a memorandum of lease which has been approved by Landlord, neither this Lease, any amendment to this Lease, nor any memorandum, affidavit or other item with respect thereto shall be recorded by the Tenant or by anyone acting through, under or on behalf of the Tenant, and the recording thereof in violation of this provision shall (i) be deemed an Event of Default and (ii) at the Landlord's election, make this Lease null and void.

 

21.12         Headings.  The headings of the sections, subsections, paragraphs and subparagraphs hereof are provided herein for and only for convenience of reference and shall not be considered in construing their contents.

 

 

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21.13         Construction.  As used herein, all references made (a) in the neuter, masculine or feminine gender shall be deemed to have been made in all such genders; (b) in the singular or plural number shall be deemed to have been made, respectively, in the plural or singular number as well; and (c) to any section, subsection, paragraph or subparagraph shall be deemed, unless otherwise expressly indicated, to have been made to such section, subsection, paragraph or subparagraph of this Lease.

 

21.14         Exhibits.  Each writing or drawing referred to herein as being attached hereto as a schedule, an exhibit or otherwise designated herein as a schedule or an exhibit hereto is hereby made a part hereof.

 

IN WITNESS WHEREOF, each party hereto has executed and ensealed this Lease, or caused it to be executed and ensealed on its behalf by its duly authorized representatives, on the date first above written.

 

	
WITNESS or ATTEST:

	
LANDLORD:

	 	 
	  	
ALCO CITYSIDE FEDERAL LLC

	  	  
	
/s/ Catherine A. Hearn      

	
By: /s/ J. Martin Lastner      (SEAL)

	  	
Name: J. Martin Lastner   

	  	
Title: Agent         

	  	  
	  	  
	
WITNESS or ATTEST:

	
TENANT:

	  	  
	  	
UNITED NATURAL FOODS, INC.

	  	  
	
/s/ Thomas A. Dziki            

	
By: /s/ Mark E. Shamber      (SEAL)

	  	
Name: Mark Shamber

	  	
Title: Chief Financial Officer

  

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EXHIBIT A

 

Site Plan showing Project and Building

 

  

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EXHIBIT B

 

Drawing showing approximate location of Premises

 

 

  

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Exhibit C

 

Tenant Improvements/Space Plan

 

 

 

  

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10/9/08

 

American Locomotive Works

313 Iron Horse Way

Providence, RI 02908

EXHIBIT C

TENANT IMPROVEMENT

TURNKEY SCOPE OF WORK

UNITED NATURAL FOODS

 

INTRODUCTION

 

The primary intent of these guidelines is to illustrate the Tenant improvements.

 

The building has obtained a historic designation from the National Park Service and all applicable work will be completed in accordance with the Historic Preservation Certification Application Part II – Description of Rehabilitation and under the guidelines of the National Park Service and The Secretary of the Interior's Standards for Rehabilitation. This means that the building's rehabilitation will be guided by procedures negotiated with the NPS and Rhode Island Historical Preservation and Heritage Commission for this particular project.

 

The guidelines described below will provide Tenant improvements that enhance the existing masonry, wood and steel structure, which are the most distinctive interior elements of the existing building. An open ceiling and a relatively open floor plan will take advantage of the large windows and tall floor-to-ceiling heights, resulting in dramatic airy space. Due to considerations for retaining the historic fabric of the existing buildings, an open ceiling approach will be required in designated locations and there may be certain limitations on the type of improvements permitted.

 

Existing building components where serviceable for intended project use will be reused. The Landlord will perform its work as part of the Turnkey improvements. This work is usually performed prior to beginning of any Tenant Improvements but some Base Building construction activities may be concurrent with the construction of Tenant Improvements.

 

  

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Finishes unless specified otherwise will be standard manufacturer's finish and commercial builders-grade products and installation. Landlord and Tenant shall work together to achieve a Leadership in Energy and Environmental Design (LEED) Commercial Interiors (CI) Certified Silver level of certification for the Premises.

The Base Building architect is Durkee Brown Viveiros & Werenfels Architects.

01  ASSUMPTIONS:

	
·

	
General contracting for improvement of the tenant space by Struever Bros. Eccles & Rouse.

	
·

	
No site visits allowed without prior approval.

	
·

	
Improvement-related questions and coordination of site visits to be arranged through SBER.

	
·

	
All assumptions based on test-fit provided to tenant dated 9/18/08.

	
·

	
All allowances include installation cost.

01  DESIGN:

	
·

	
One preliminary test-fit and appropriate revisions as approved by Landlord and Tenant.

	
·

	
Any additional space plan and all other related costs for architectural drawings and MEP's including the cost of all necessary permits.

	
·

	
Contract documents – plans and specifications.

	
  

	
o

	
Schematic

	
  

	
o

	
Design Development*

	
  

	
o

	
Construction Documents

* Tenant shall be provided a review set of plans for final approval after the Design Development level.

	
·

	
Cost of estimating

	
·

	
Shop drawings shall be a parallel submission to Owner's Rep and Architect. Owner's copy shall be for information only. Architect shall respond within 36 hours of issuance.

02  DEMOLITION:

	
  

	
·

	
Complete As Needed

02  SITE WORK:

	
·

	
Access to all Buildings in Conformance with ADA

	
·

	
Site improvements as provided

	
·

	
Exterior Lighting, (excluding Tenant signage) and exterior seating as provided.

03  CONCRETE:

	
·

	
Prep floors ready for Tenant finishes.

04  MASONRY:

  

45

  

	
·

	
Clean interior face of exterior masonry walls as required by NPS and RIHPHC to preserve the existing brick finish.

	
·

	
Repair of masonry walls limited to structural flaws only (larger than 1⁄2")

	
·

	
Air blast per historic standards perimeter interior masonry walls, wood ceilings, purlins, and steel joists in areas determined to have finishes with historic significance. Where all interior walls are currently painted, not all paint or other materials will be removed from walls.

05  STAIRS:

	
·

	
Common area stairways as existing in Buildings 51 and 52.

	
·

	
Handrail painted standard steel.

	
·

	
Existing stair in Building 52 to be modified as main access between first and second floor. Work to include

	
  

	
·

	
Existing stair structure to remain

	
  

	
·

	
Allowance of $20,000 assumes a replacement of the existing rail and provision and installation of tile flooring on treads and landings of 170 SF. Demolition not part of this allowance and included elsewhere.

	
  

	
·

	
Smoke Curtain if required by code

06  CARPENTRY:

	
·

	
In-wall blocking as needed at toilet/bathroom accessories and casework per plan

	
·

	
Window trim

	
  

	
o

	
All historic windows shall have aluminum sills

	
  

	
o

	
Trim for windows on north side of building 52 shall be painted drywall, wood or MDF as specified on plans

	
·

	
Borrowed light shall be wood frame or recycled window product in Large Conference and Conference C4 located on the second floor of Building 52, east side.

07  MOISTURE PROTECTION:

	
·

	
Existing single-ply EPDM roof

	
·

	
Any roof penetrations needed for Tenant's improvements will be completed by qualified, certified roofer in order to maintain warranty.

08  DOORS, WINDOWS AND GLASS:

	
·

	
All existing exterior doors, windows, and glass and manual key lock interior entry system to Premises from common area(s).

	
·

	
All exterior windows as provided.

	
·

	
All new interior doors, windows, and glass.

	
  

	
§

	
New interior doors to be pre-finished, clear coat, solid core birch veneer Marshfield Door Systems (or approved equal) – Environmental Class Doors – Model and height to be determined

	
  

	
§

	
Knock down hollow metal frames

	
  

	
§

	
Hardware: Sargent, or approved equal, commercial medium grade hardware line as needed per code. Schedule shall be developed as part of design process.

  

46

  

	
  

	
§

	
Lockset for each office only.

	
  

	
§

	
Wall/floor stops

	
  

	
§

	
Kick plate at bathrooms only

	
  

	
§

	
Closers for breakroom, restrooms and exit doors only

	
  

	
§

	
Doors for two HR offices on first floor of Building 52 shall include 24" x 30" light kit.

	
·

	
Borrowed light shall be wood frame or recycled window product in Large Conference and Conference C4 located on the second floor of Building 52, east side. Window blinds will be included on these borrowed lights.

	
·

	
All door frames to be knock-down hollow metal frame. All trim will be painted drywall, wood (poplar or mdf) or aluminum

	
·

	
Keys to the Premises, copies of which will be provided to Landlord. FOB or other access/security technology to be provided by tenant

ENTRANCES:

	
·

	
Maintain existing glass storefront at the first floor of Building 52, with all exterior or interior access to be ADA compliant

	
·

	
Building-standard canopies above main entrances as provided.

	
·

	
Provide emergency exits and exit lights in common areas and tenant space as required by code.

	
·

	
Second floor non-public entrance(s) to space in Building 51 to be building standard fire rated door per code

09  FINISHES:

	
  

	
·

	
Walls

	
  

	
o

	
Demising partitions to define common corridors, common stairs, tenant restrooms, common mechanical rooms and shafts.

	
  

	
o

	
Building 51 interior office walls shall be full height

	
  

	
o

	
Building 52 interior office walls shall be partial height with sheetrock return

	
  

	
o

	
Building 52 interior restrooms, shaft wall and demising walls shall be full height

	
  

	
o

	
All full-height drywall partitions shall have sound batt insulation the full thickness of the wall assembly.

	
  

	
·

	
Paint

	
  

	
o

	
Prime and finish of interior walls and interior face of perimeter exterior walls (prime and two coats)

	
  

	
o

	
Paint previously-painted interior face of perimeter exterior walls.

	
  

	
o

	
Any additional treatment of existing brick interior walls is subject to National Park Service approval and shall be provided by the tenant.

	
  

	
o

	
All painting to meet PDCA standards

	
  

	
o

	
Paint to be selected to meet LEED CI requirements

	
·

	
Flooring

	
  

	
o

	
in building 51 all existing wood deck shall be covered with varying thicknesses plywood, all existing concrete deck shall be flash patched to bring floor to a reasonable, generally flat condition in accordance with industry standard tolerances. Any depressions greater than 3⁄4'' shall be filled with a suitable substrate.

  

47

  

	
  

	
o

	
Tile – porcelain or ceramic as approved by landlord in bathroom and entrance lobby

	
  

	
§

	
Tile in new bathrooms shall match existing tile in Building 52 bathrooms

	
  

	
§

	
Allowance for tile in lobby includes 540 SF at $10 psf including installation.

	
  

	
o

	
Carpet with recycled content to be selected to meet LEED CI requirements. Allowance for carpet at $20 per square yard including installation

	
  

	
o

	
Resilient Flooring in service areas per test fit. Standard Johnsonite VCT or approved equal

	
  

	
o

	
Base – vinyl or approved equal to meet LEED CI requirements

	
·

	
Ceiling

	
  

	
o

	
Ceiling shall remain open and exposed where possible

	
  

	
o

	
Executive offices (7) throughout and partial height wall offices in building 52 (27) shall have acoustic ceiling tile to match building standard

	
  

	
o

	
Armstrong Circus or approved equal – (24 x 24) White; typical with 15/16" grid system and perimeter trim as needed at windows (approximately 3' from exterior windows)

	
  

	
o

	
Existing wood ceilings shall be air blast cleaned and ready for primer and finishes or sealer.

	
  

	
o

	
Any ceiling finishes (i.e. painting (prime and topcoat), drywall, or acoustic tile) will be subject to National Park Service approval.

	
  

	
o

	
Historic mechanical structures (e.g. conveyors) shall remain in place from ceiling.

	
  

	
o

	
All improvements including but not limited ductwork, hangers, rigid and flexible conduit, fire suppression piping shall be constructed in first class workman like manner using industry standard materials. All components shall be parallel and tight to the ceiling wherever possible. All hangers shall meet seismic requirements

10  SPECIALTIES:

	
·

	
Directory sign in lobby, if used by multiple Tenants.

	
·

	
Fire extinguishers- as required by code hook or cabinet mounted.

	
·

	
Exterior signage to be provide by Tenant and approved by Landlord

	
·

	
One Dyson Airblade (total of 2) to be provided in each new Tenant restroom

	
·

	
Life safety and standard individual room identification allowance of $7,500 including installation

11

	
·

	
All appliances by tenant as approved by Landlord

12

  

48

  

	
·

	
Casework and/or shelving

	
  

	
o

	
Standard finish (flat front, flush overlay, laminate cabinets) base and wall cabinets with standard brushed chrome wire pull in reception, mail room, kitchen(s), work area/copy center(s) and break room as shown on tenant test fit dated 6.27.08 Any additional cabinets/millwork to be provided by tenant

	
  

	
o

	
Shelving includes 250 LF of melamine shelving on a metal standard support. Excludes specialty shelving in BLM conference room

	
·

	
Building standard mini-blind window treatments as provided on exterior windows only (not including sawtooth monitor or exterior entrances).

EXCLUDED

	
·

	
Movable or folding partitions

	
·

	
Furniture, fixtures and equipment

	
·

	
Systems furniture

13  N/A

14  CONVEYING SYSTEMS

	
·

	
Existing elevator system in common area.

	
·

	
Any Key Card security access system within elevator is excluded.

15  MECHANICAL/HVAC:

	
·

	
Base building HVAC systems shall be provided as designed to provide 1 ton cooling per 350 sq.ft.

	
·

	
The base building HVAC system consists of a water source heat pump system. A cooling tower and condensing type boilers with associated pumping stations are provided to keep the distribution loop between approximately 70 to 90 degrees Fahrenheit. All heat pumps that will serve the building connect to this loop.

	
·

	
The building (with no interior zones) is designed for natural ventilation.

	
·

	
The HVAC systems for the common spaces is provided by the Landlord. Added tonnage in excess of one ton per 350 square feet, if required to be provided by Tenant

	
·

	
All work within the premise beyond the distribution loop and the main ductwork, including but not limited to ductwork, piping, louvers, grilles, dampers, controls.

	
·

	
Any additional HVAC equipment required by the Tenant shall be installed on dunnage and located as approved by the Landlord.

	
·

	
If the space is divided by the Tenant to form interior zones, mechanical ventilation will be required to serve these spaces. All ductwork, energy recovery ventilators, fans, louvers etc. required for mechanical ventilation shall be provided to comply with code to meet the tenant test fit dated 6.27.08

	
·

	
Location of flue, rooftop units, condensing units, outside air intake and toilet exhaust fans for Tenant space shall be toward center of roof to the extent possible and as approved by the Landlord.

	
·

	
Tenant to be allocated its proportionate share of designated roof area for its supplemental HVAC equipment if applicable, units to be located within the premises.

  

49

  

	
·

	
Temperature range: 68 – 74 degrees

EXCLUDED

	
·

	
Specialty HVAC

15  PLUMBING:

	
·

	
Within multi-Tenant floors, all design and construction of common area ADA-compliant restrooms to be by Landlord.

	
·

	
Tenant restrooms within Premises will be designed to meet LEED CI requirements

	
·

	
Distribution of water and sewerage within Tenant Premises. Sewer greywater to be routed to Landlord established location via ejector pump(s).

15  SPRINKLERS, FIRE ALARM, and FIREPROOFING:

	
·

	
Sprinkler main, risers and distribution for tenant improvement certificate of occupancy

	
·

	
Connected central fire alarm panel

16  ELECTRICAL:

	
·

	
Landlord to provide Premises electrical panel sized as needed for general office use

	
·

	
Emergency lighting in all common areas: i.e., stairway, corridors and lobby as required by building code

	
·

	
All design and distribution of electric within the Premise from point of Landlord supplied panel.

	
·

	
Tie into panel

	
·

	
All subpanels and transformers

	
·

	
Tenant usage shall be metered separately

	
·

	
Executive Offices shall be provided with allowance of 6 duplex receptacles and 2 tel/data outlets per office. Regular Offices shall be provided with 4 duplex receptacles and 1 tel/data outlet per office. Workstations shall be provided a junction box in the ceiling or adjacent wall for access by tenant's furniture installer and tel/data contractor as determined by the final design.

	
·

	
All conference rooms shall be provided with power and tel/data similar to office allowance based on size. Large conference room to be designed.

EXCLUDED

	
·

	
All low voltage design, wiring and installation, conduit, etc. within Premises, including but not limited to security systems, telecommunications, cable tray, computer wiring or etc. cable and equipment or any specialized systems.

16  LIGHTING:

	
·

	
Exit, emergency and common area lighting for Base Building certificate of occupancy

	
·

	
Landlord approved lighting

	
  

	
·

	
Pendant Dome – Abolite Standard Dome or approved equal, non-dimmable. Specification to be provided as part of design process

  

50

  

	
  

	
·

	
Pendant Linear Blade – Day-O-Lite Cross Blade Louver or approved equal non-dimmable. Specification to be provided as part of design process

	
  

	
·

	
In-Ceiling – Day-O-Lite New Age Series, or approved equal non-dimmable drop-in 2x4. Specification to be provided as part of design process

	
·

	
Specialized lighting in first floor lobby and Large Conference room on second floor of building 52 including a total of 20 LF of track lighting with total of 8 heads

	
  

	
·

	
Con-Tech Track with Front Relamp PAR30 Track Fixture, non dimmable, or approved equal. Specification to be provided as part of design process

	
·

	
All enclosed offices will have motion sensors with manual override.

	
·

	
Changes to Exit and emergency lighting in Premises as required by Tenant layout.

16  TELECOMMUNICATIONS:

Two (2) 4" Conduit from Main Demark Telecommunications room to Telecommunications closets.

	
·

	
One (1) 4" Conduit from Telecommunications Closets to Premises

EXCLUDED

	
·

	
Pull wires and terminate from main Demark and terminate with telecommunications vendor.

	
·

	
All contracts with Verizon or other Telecommunications vendors.

	
·

	
Apply for service with provider.

	
·

	
Tenant electronic security and electronic lock mechanism and connection of Premises entry key card access system to Landlord system.

	
·

	
Configuration and engineering of cable TV, CCTV, Telecommunications; routing to be approved by Landlord.

	
·

	
All low voltage design, wiring, conduit and service within Premises.

UTILITIES:

	
·

	
Cost of Tenant Electric usage for Premises including but not limited to HVAC, lighting and convenience outlets and communications/data shall be paid for and billed to the tenant.

MISCELLANEOUS: EXCLUDED

	
·

	
Moving Expenses

	
·

	
Tenant's Legal fees

	
·

	
All other items not specifically named in Shell Scope of Work as By Landlord

  

51

  

 

 

 

EXHIBIT D

 

Current Rules and Regulations

 

	
1.

	
The sidewalks, passages, driveways, stairways and other Common Areas shall not be obstructed by the Tenant or Tenant’s agents, employees, or invitees or used by the Tenant for any purpose other than ingress and egress from and to the Tenant's premises.  The Landlord shall in all cases retain the right to control or prevent access thereto by any person whose presence, in the Landlord's judgment, would be prejudicial to the safety, peace, character or reputation of the property or of any tenant of the Project.

 

	
2.

	
The toilet rooms, water closets, sinks, faucets, plumbing and other service apparatus of any kind shall not be used by the Tenant for any purpose other than those for which they were installed, and no sweepings, rubbish, rags, ashes, chemicals or other refuse or injurious substances shall be placed therein or used in connection therewith by the Tenant, or left by the Tenant in the lobbies, passages, elevators or stairways of the Building.  The expense of any breakage, stoppage or damage to such sinks, toilets and the like shall be borne by the tenant who, or whose employees, contractors or invitees, caused it.

 

	
3.

	
No skylight, window, door or transom of the Building shall be covered or obstructed by the Tenant, and no window shade, blind, curtain, screen, storm window, awning, canopy or other material shall be installed or placed on any window or in any window space, except as approved in writing by the Landlord.  If the Landlord has installed or hereafter installs any shade, blind or curtain in the Premises, the Tenant shall not remove it without first obtaining the Landlord's written consent thereto.  The color and design of any shade, blind, curtain, screen, storm window, awning, canopy or other material must be in accordance with Landlord’s Building standards.

 

	
4.

	
No sign, lettering, insignia, advertisement, notice or other thing shall be inscribed, painted, installed, erected or placed in any portion of the Premises which may be seen from outside the Building, or on any window, window space or other part of the exterior or interior of the Building, unless first approved in writing by the Landlord.  Names on suite entrances may be provided by and only by the Landlord and at the Tenant's expense, using in each instance lettering of a design and in a form consistent with the other lettering in the Building, or as approved in writing by the Landlord, which approval shall not be unreasonably withheld.

 

	
5.

	
The Tenant shall not place any other or additional lock upon any door within the Premises or elsewhere upon the Project, and the Tenant shall surrender all keys for all such locks at the end of the Term.  The Landlord shall provide the Tenant with one set of keys to the Premises when the Tenant assumes possession thereof.

 

	
6.

	
The Tenant shall not do or permit to be done anything that obstructs or interferes with the rights of any other tenant of the Project.  No bird, fish or animal shall be brought into or kept in or about the Premises, the Building and/or the Project.

  

52

  

 

	
7.

	
If the Tenant desires to install signaling, telegraphic, telephonic, protective alarm or other wires, apparatus or devices within the Premises, the Landlord shall direct where and how they are to be installed and, except as so directed, no installation, boring or cutting shall be permitted.  The Landlord shall have the right (a) to prevent or interrupt the transmission of excessive, dangerous or annoying current of electricity or otherwise into or through the Premises, the Building and/or the Project, (b) to require the changing of wiring connections or layout at the Tenant's expense, to the extent that the Landlord may deem necessary, (c) to require compliance with such reasonable rules as the Landlord may establish relating thereto, and (d) in the event of noncompliance with such requirements or rules, immediately to cut wiring or do whatever else it considers necessary to remove the danger, annoyance or electrical interference with apparatus in any part of the Building and/or the Project.  Each wire installed by the Tenant must be clearly tagged at each distributing board and junction box and elsewhere where required by the Landlord, with the number of the office to which such wire leads and the purpose for which it is used, together with the name of the Tenant or other concern, if any, operating or using it.

 

	
8.

	
A directory shall be provided by the Landlord on the ground floor of the Building or elsewhere within the Project, on which the Tenant's name may be placed.

 

	
9.

	
The Landlord shall in no event be responsible for admitting or excluding any person from the Premises.  In case of invasion, hostile attack, insurrection, mob violence, riot, public excitement or other commotion, explosion, fire or any casualty, the Landlord shall have the right to bar or limit access to the Project to protect the safety of occupants of the Project, or any property within the Project.

 

	
10.

	
The use of any area within the Building as sleeping quarters is strictly prohibited at all times.

 

	
11.

	
The Tenant shall keep the windows and doors of the Premises (including those opening on corridors and all doors between rooms entitled to receive heating or air conditioning service and rooms not entitled to receive such service) closed while the heating or air-conditioning system is operating, in order to minimize the energy used by, and to conserve the effectiveness of, such systems.  The Tenant shall comply with all reasonable rules and regulations from time to time promulgated by the Landlord with respect to such systems or their use.

 

	
12.

	
The Landlord shall have the right to prescribe the weight and position of inventory and of other heavy equipment or fixtures, which shall, if considered necessary by the Landlord, stand on plank strips to distribute their weight.  Any and all damage or injury to the Project arising out of the Tenant's equipment being on the property shall be repaired by the Tenant at its expense.  The Tenant shall not install or operate any machinery whose installation or operation may affect the structure of the Building without first obtaining the Landlord's written consent thereto, and the Tenant shall not install any other equipment of any kind or nature whatsoever which may necessitate any change, replacement or addition to, or in the use of, the water system, the heating system, the plumbing system, the air-conditioning system or the electrical system of the Premises, the Building or the Project without first obtaining the Landlord's written consent thereto.  Business machines and mechanical equipment belonging to the Tenant which cause noise or vibration that may be transmitted to the structure of the Building, any other buildings on the Project, or any space therein to such a degree as to be objectionable to the Landlord or to any tenant, shall be installed and maintained by the Tenant, at its expense, on vibration eliminators or other devices sufficient to eliminate such noise and vibration.  The Tenant shall remove promptly from any sidewalks and other areas on the Project any of the Tenant's furniture, equipment, inventory or other material delivered or deposited there.

  

53

  

 

	
13.

	
The Tenant shall not place or permit its agents, employees or invitees to place any thing or material on the roof or in the gutters and downspouts of the Building or cut, drive nails into or otherwise penetrate the roof, without first obtaining the Landlord's written consent thereto.  The Tenant shall be responsible for any damage to the roof caused by its employees or contractors.  The Tenant shall indemnify the Landlord and hold the Landlord harmless against expenses incurred to correct any damage to the roof resulting from the Tenant's violation of this rule, as well as any consequential damages to the Landlord or any other tenant of the Project.  The Landlord shall repair damage to the roof caused by the Tenant's acts, omissions or negligence and the Tenant shall reimburse the Landlord for all expenses incurred in making such repairs.  The Landlord or its agents may enter the Premises at all reasonable hours to make such roof repairs.  If the Landlord makes any expenditure or incurs any obligation for the payment of money in connection therewith, including but not limited to attorneys' fees in instituting, prosecuting or defending any action or proceeding, such sums paid or obligations incurred, with interest at the Default Rate, and costs, shall be deemed to be Additional Rent and shall be paid by the Tenant to the Landlord within five (5) days after rendition of any bill or statement to the Tenant therefor.  The Tenant shall not place mechanical or other equipment on the roof without the Landlord's prior written consent, which shall be conditioned in part upon the Landlord's approval of the Tenant's plans and specifications for such installations.  The costs of any roof improvements made pursuant hereto shall be borne by the Tenant.

 

	
14.

	
The Landlord reserves the right to institute energy management procedures when necessary provided such procedures do not materially adversely affect Tenant’s business operations at the Premises.

 

	
15.

	
Subject to applicable laws, Landlord shall specifically designate smoking areas throughout the Project.  Tenant and Tenant’s agents, employees and invitees shall refrain from smoking in any areas of the Project (whether enclosed or otherwise), other than those areas specifically designated by Landlord as smoking areas.

 

	
16.

	
The Tenant shall assure that the doors and windows of the Premises are closed and locked and that all water faucets, water apparatus and utilities are shut off before the Tenant and its employees leave the Premises each day.

 

	
17.

	
The Landlord shall have the right to rescind, suspend or modify these Rules and Regulations and to promulgate such other rules or regulations as, in the Landlord's reasonable judgment, are from time to time needed for the safety, care, maintenance, operation and cleanliness of the Building or the Project, or for the preservation of good order therein.  Upon the Tenant's having been given notice of the taking of any such any action, the Rules and Regulations as so rescinded, suspended, modified or promulgated shall have the same force and effect as if in effect at the time at which the Tenant's lease was entered into (except that nothing in the Rules and Regulations shall be deemed in any way to alter or impair any provision of such lease).

  

54

  

 

	
18.

	
Nothing in these Rules and Regulations shall give any tenant any right or claim against the Landlord or any other person if the Landlord does not enforce any of them against any other tenant or person (whether or not the Landlord has the right to enforce them against such tenant or person), and no such non-enforcement with respect to any tenant shall constitute a waiver of the right to enforce them as to the Tenant or any other tenant or person.

 

	
19.

	
Except as otherwise set forth in the Lease, in any instance in which the Landlord's prior consent or approval is required, the Landlord shall have the right to withhold or condition such consent or approval in its reasonable discretion.

  

55

  

 

 Exhibit E

 

FORMS

FIRST AMENDMENT TO LEASE

 

THIS FIRST AMENDMENT TO LEASE is made on this _________ day of ________ _____ by and between _______________________, a ____________ limited liability company (the "Landlord"), and _________________________________, a ____________ (the "Tenant").

 

	
  

	
A.

	
Landlord and Tenant are parties to a Lease dated ____________, with respect to approximately ______ square feet of space (the “Premises”) at the mixed use retail/office project located in Providence, Rhode Island at ______________ Street known as ________________ (the “Lease”).

 

	
  

	
B.

	
The parties have agreed to amend the Lease to provide that (i) Landlord will construct and own certain additional improvements to the Premises and (ii) in return for Landlord undertaking such additional work the rent under the Lease shall increase as provided herein.

 

NOW THEREFORE, in consideration of the foregoing and for other good and valuation consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree to amend the Lease as follows:

 

1.           Construction of Improvements.  Landlord shall, in addition to the improvements to be constructed by Landlord as currently provided in the Lease, construct the improvements to the Premises as described on Exhibit A attached hereto (the “Additional Improvements”).  All such work shall be undertaken in a good and workmanlike manner in accordance with plans and specifications approved by both Landlord and Tenant and otherwise as provided in the Lease.

 

2.           Ownership of Improvements.  All Additional Improvements to be constructed by Landlord as described in Exhibit A shall be the property of the Landlord.  If any of such Additional Improvements are damaged by fire and other casualty and the Landlord is required under the Lease to restore, such restoration obligation shall extend to the Additional Improvements.

 

3.           Increased Rent.  Notwithstanding Section ____ of the Lease, the Base Rent under the Lease shall be increased by the amount of the "Increased TI Rent" as provided below:

 

	
Period

	
Base Rent

	
Increased TI Rent

	
Total

	  	  	  	  
	  	  	  	  
	  	  	  	  

 

  

56

  

 

4.           Liability for Increased TI Rent.  Notwithstanding anything herein or the Lease to the contrary, if Tenant shall fail to make any payment of the Increased TI Rent to Landlord hereunder, Landlord's sole and exclusive remedy as to such default alone shall be to credit the amount of such delinquent Increased TI Rent payment against the debt service payment owed under that certain promissory note dated ________________ by Landlord, as maker, to Tenant, as payee.

 

5.           No Other Amendments.  Except as provided herein, the terms and conditions of the Lease remain unmodified and in full force and effect.

 

IN WITNESS WHEREOF, the parties have executed this First Amendment to Lease as of the day and year first above written.

 

	
WITNESS/ATTEST:

	
[LANDLORD]

	  	  
	
_________________________

	
By:_________________________________

	  	  
	  	
[TENANT]

	  	  
	
_________________________

	
By:_________________________________

  

57

  

PROMISSORY NOTE

 

	
$__________________

	
_________________, ____

	  	
__________, _________

FOR VALUE RECEIVED, __________________________________[name of Landlord] (the "Borrower") promises to pay to the order of ______________________________________ [name of Tenant] (the "Lender"), its successors and assigns, and any subsequent holder of this Note, the aggregate principal amount of $______________________________ (the "Principal Amount") together with interest on the unpaid balance of the Principal Amount.

 

Interest shall not begin to accrue on this Note until the Interest Commencement Date, which shall be the date the Lender commences payment of rent under that certain Lease dated _________________________________, as amended, for space in the improvements located at _______________________ in ____________ (the "Lease").  Commencing on first day of the month next following the Interest Commencement Date and continuing on the first day of each month thereafter, Borrower shall pay to Lender principal and interest, in equal monthly installments of $_____________________ until the maturity of this Note, at which time all unpaid interest accrued through the date of such maturity shall be paid in full by the Borrower to the Lender.  Such payment represents a level monthly payment of principal and interest at ten percent (____________%) per year over a ____________________ month amortization period.  Unless sooner paid, the unpaid Principal Amount, together with interest accrued and unpaid thereon, shall be due and payable in full on the first day of the ________________th month after the Interest Commencement Date.

 

Borrower’s failure to pay any monthly installment of Principal and Interest when due hereunder shall constitute a default under this Note (“Default”). Upon the occurrence of a Default, the Lender’s sole and exclusive remedy (and notwithstanding any restrictions in the Lease regarding rent offset) shall be to offset against each monthly installment of rent due under the Lease and any amendments thereto, the amount of any such unpaid monthly installment due hereunder.  The Lender shall have no right to accelerate the payment of the indebtedness hereunder in the event of any Default.

 

All payments and prepayments of the Principal Amount, interest thereon and any other amounts payable hereunder shall be paid in lawful money of the United States of America in immediately available funds during regular business hours of the Lender at ____________________________________ , or at such other place as the Lender or any other holder of this Note may at any time or from time to time designate in writing to the Borrower.

 

The Borrower and the Lender hereby voluntarily and intentionally waive any right they may have to a trial by jury in any action, proceeding or litigation directly or indirectly arising out of, under or in connection with this Note.

 

This note shall be governed and construed under the laws of the State of Rhode Island, and the Borrower hereby irrevocably consents and submits to the jurisdiction and venue of any state or federal court sitting in the State of Rhode Island over any suit, action or judicial proceeding brought to enforce or construe this Note or arising out of or relating to this Note.

  

58

  

 

IN WITNESS WHEREOF, the Borrower has caused this Note to be executed in its name, under its seal and on its behalf by its duly authorized officers the day and year first written above.

 

	
ATTEST:

	
[LANDLORD]

	  	  
	  	
By:_________________________________

 

 

 

  

59

  

 

Exhibit F

 

Schedule of Deliveries

 

  

60

  

	
UNFI Schedule

	  
	  	  
	
Task

	
Schedule

	  	  
	
Lease Negotiation and Execution

	
August 13 – October 15, 2008

	
Design Process

	
October 10 – December 31, 2008

	
Schematic Design

	
October 31, 2008

	
Design Development

	
November 21, 2008

	
Tenant Review/Approval of DD plans – 1 week

	
November 28, 2008

	
Permit Set Submittal

	
December 15, 2008

	
Construction Documents/Submittal of Permit Application

	
December 31, 2008

	  	  
	
Bid/Permit Review and Approval (4 weeks from permit set submittal – assumes early submittal of permit plans to City of Providence

	
January 15, 2009

	
Construction Process

	
May 15, 2009

	  	  
	
NOTES:

	  
	
All dates are approximate and assume typical City review approval timelines.

	  

 

 

  

61

  

 

 Exhibit G

Janitorial Specifications

 

Daily: Office Areas

 

Remove trash, dust, vacuum and spot clean carpets, clean kitchen, mop all tile/wood floors, clean and polish door glass, clean and polish elevator cabs.  Landlord will also establish recycling programs for office space and coordinate with cleaning services for the proper disposal of office refuse.

 

Weekly: Office Areas

 

Dust windowsills, dust blinds, dust/clean file cabinets and all work station surfaces.

 

Monthly: Office Areas

 

Wipe down doorframes and baseboards, clean wall vents and heaters

 

Daily: Restrooms

 

Clean mirrors, sweep and wash floor, fully clean and disinfect toilets and urinals, clean walls/partitions next to urinals, clean sinks, empty trash, refill paper products and soap.

 

  

62

  

 

Exhibit H

Parking Area Drawing

 

 

  

63

  

 

 

  

64

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