Document:

exv10w54x9y

 

Exhibit 10.54 (9)

AGREEMENT OF LEASE FOR SHOPPING CENTER SPACE

Between

Sequel Investors Limited Partnership

A Virginia limited partnership

(Landlord)

and

Dover Saddlery Retail, Inc.,

a Massachusetts corporation

(Tenant)

Dated as of:

February 1, 2007

Seminole Square

SHOPPING CENTER

Charlottesville, Virginia

INDEX TO LEASE AGREEMENT

	 	 	 	 	 
	SECTION 1 Definitions
	 	 	3	 
	SECTION 2 Grant and Term
	 	 	5	 
	SECTION 3 Rent, Percentage Rent, Utility Charges, Taxes and Insurance
	 	 	5	 
	SECTION 4 Construction of Improvements
	 	 	8	 
	SECTION 5 Use of Premises
	 	 	9	 
	SECTION 6 Quiet Enjoyment and Landlord’s Right of Entry
	 	 	10	 
	SECTION 7 Nuisance, Waste, Hazardous Materials, Rules and Regulations
	 	 	11	 
	SECTION 8 Compliance with Law, Liens, Indemnity
	 	 	13	 
	SECTION 9 Maintenance and Repair of Premises
	 	 	13	 
	SECTION 10 Common Areas and Charges
	 	 	14	 
	SECTION 11 Fixtures, Signs, Contractual Lien and Alterations
	 	 	15	 
	SECTION 12 Condemnation
	 	 	16	 
	SECTION 13 Insurance
	 	 	17	 
	SECTION 14 Damage or Destruction
	 	 	19	 
	SECTION 15 Assignment, Subletting and Encumbrance
	 	 	19	 
	SECTION 16 Default
	 	 	20	 
	SECTION 17 Estoppel Certificates, Subordination, Mortgagee Protection
	 	 	25	 
	SECTION 18 Surrender and Holdover
	 	 	26	 
	SECTION 19 Security Deposit
	 	 	26	 
	SECTION 20 Promotion Fund and Advertising
	 	 	27	 
	SECTION 21 General Provisions
	 	 	28	 

	 	 	 	 	 
	 

	 	EXHIBIT A
	 	Shopping Center Site Plan
	 

	 	EXHIBIT A-1
	 	The Premises
	 

	 	EXHIBIT B
	 	Tenant Design/Criteria Manual
	 

	 	EXHIBIT C
	 	Operating Hours
	 

	 	EXHIBIT D
	 	Sign Criteria
	 

	 	EXHIBIT E
	 	Tenant Covenants Relating to IRB Financing Deleted
	 

	 	EXHIBIT F
	 	Grand Opening Deleted

1

 

	 	 	 	 	 
	 

	 	EXHIBIT G
	 	Guaranty Deleted
	 

	 	EXHIBIT H
	 	Keyman Insurance Deleted
	 

	 	EXHIBIT I
	 	Uniform Commercial Code Filing Form
	 

	 	EXHIBIT J
	 	HVAC Agreement

2

 

THIS LEASE AGREEMENT is made by and between Sequel Investors Limited Partnership, a Virginia
limited partnership (hereinafter called “Landlord”), and Dover Saddlery Retail, Inc., a
Massachusetts corporation (hereinafter called “Tenant”).

SECTION 1 Definitions

This Section 1 is an integral part of this Lease and all of the terms hereof are
incorporated into this Lease in all respects. In addition to the other provisions which are
elsewhere defined herein, following, whenever used in this Lease shall have the meaning set
forth in this Section, and only such meaning, unless such meanings are expressly
contradicted, limited or expanded elsewhere herein:

	 	 	 
	Effective Date of
Lease:

	 	February 1, 2007
	 
	 	 
	Shopping Center:

	 	The real property or leasehold property shown on the site plan outlined in green attached hereto as Exhibit A, commonly known as The
Seminole Square Shopping Center, located at the intersection of Zan Road and U.S. Rt. 29 North in Charlottesville, Virginia, as the
same may be modified from time to time pursuant to Section 6 hereof.
	 
	 	 
	Premises:

	 	The portion of the Shopping Center identified by cross-hatching on Exhibit A-1, consisting of approximately 3,000 square feet of
“Leasable Space” located at 242 Zan Road.
	 
	 	 
	Leasable Space:

	 	When used with respect to the Premises and all other Leasable Space in the Shopping Center, means Landlord’s best estimate of the
number of square feet of area in all structural parts of the Shopping Center for exclusive use of the Tenant thereof and its
customers, including without limitation, basements, mezzanines and balconies used for the sale of goods and services; said area shall
be measured from the exterior face of exterior walls and the center line of any walls which Tenant shares with other tenants or
occupants of the Shopping Center, provided that no deduction from Leasable Space shall be made for columns, stairs, elevators or any
interior construction or equipment within the six (6) boundaries which demise the Leasable Space. If the actual number of square fee
within the Premises is greater than Landlord’s estimate, the number of square feet shall be adjusted to the exact amount of square
feet within the Premises.
	 
	 	 
	Commencement Date:

	 	February 1, 2007
	 
	 	 
	Term:

	 	A period of 3 years and 0 months following (a) the Commencement Date, or (b) if the Commencement Date is not the first day of a
month, the first day of the month following the month in which the Commencement Date occurs or as said period may be extended by any
options to renew granted. Each twelve (12) month period beginning with the Commencement Date or, if the Commencement Date is not the
first day of the month, the day of the month following the Commencement Date shall be a “Lease Year.” If the Lease does not commence
on the first calendar day of a month, the period from the Commencement Date to the first day of the first full calendar month shall
be the first “Lease Year” although such Lease year will be, in actuality, less than 31 calendar days, and the period from the end of
the last full Lease Year until the termination of the Lease, shall be the last Lease Year.
	 
	 	 
	Minimum Rent:

	 	The fixed annual rent payable by Tenant during the Term in monthly installments in advance without notice, demand or setoff as
follows:
	 
	 	 
	 

	 	From the Commencement Date through the last day of the 12th month of the Term, $4,125.00 per month;
	 

	 	From the 1st day of the 13th month through the last day of the 24th month of the Term, $4,248.75 per
month;
	 

	 	From the 1st day of the 25th month through the last day of the 36th month of the Term, $4,376.21 per
month;
	 
	 	 
	Renewal Term:

	 	Tenant shall have the option, to be exercised as hereinafter provided, to extend this Lease for one additional three (3) year term
(“Renewal Term”), provided no violation is existing or continuing, now with the lapse of time or the giving of notice would there be
a violation, in the performance of any of the terms or conditions of this Lease at the time of exercise, or at any time through the
commencement of the Renewal Term. Tenant shall provide written notice of its intent to exercise the Renewal Term option no later
than 270 days or earlier than 360 days prior to the en of the Term of the Lease.
	 
	 	 
	 

	 	Renewal Term:
	 
	 	 
	 

	 	The fixed annual rent payable by Tenant during the Renewal Term in monthly installments in advance without notice, demand or setoff
as follows:

3

 

	 	 	 
	 

	 	From the 1st day of the 37th through the last day of the 48th month of the Term, $4,507.50 per month;
	 

	 	From the 1st day of the 49th month through the last day of the 60th month of the Term, $4,642.72 per
month;
	 

	 	From the 1st day of the 61st month through the last day of the 72nd month of the Term, $4,782.00 per
month.
	 
	 	 
	Percentage Rent:

	 	Deleted.  The amount by which % (“Percentage Rate”) of the Gross Sales (as define din Section 3) occurring in any “Fiscal Period”
exceeds Minimum Rent for that Fiscal Period. Minimum Rent divided by the Percentage Rate shall be “Base Sales.”
	 
	 	 
	Fiscal Period:

	 	A period of time as designated by Landlord from time to time, equal to a calendar year or other less frequently recurring period
within the Term, of such portion thereof as is within the Term. The fiscal period under this Lease shall initially be each Lease
Year.
	 
	 	 
	Security Deposit:

	 	Landlord and Tenant agree that a Security Deposit in the amount of $3,250.00 has been received and deposited by the Landlord as
proscribed in Section 19 of the Lease.
	 
	 	 
	Permitted Uses:

	 	The sale of equipment and apparel of the rider and horse both custom and stock, equestrian, gifts, horse care products, equestrian
consignment items, equestrian related sportswear, books, magazines and video tapes and such other uses as may be hereinafter approved
in writing by Landlord to be conducted under the Trade Name/Trade Style Dover Saddlery.
	 
	 	 
	Tenant’s 

Proportionate Share

	 	The fraction (expressed as a percentage) determined from time to time by dividing the number of square feet of Leasable Space in the
Premises by the number of square feet of Leasable Space in the Shopping Center that is or shall be leased to tenants who shall be
burdened in the same manner and similarly subject to proportionate shares of taxes, insurance, common area maintenance and the like
as hereafter provided; and subject to adjustment as hereinafter provided. There are or may be other Leasable Space in the Shopping
Center that will not be burdened in the same manner.
	 
	 	 
	Guarantor:

	 	Name:           N/A
	 

	 	Address:
	 

	 	SSN:

	 	 	 	 	 
	Broker’s Name and

	 	Great Eastern Management Company
	 	CB Richard Ellis of Charlottesville, LLC
	Address

	 	PO Box 5526
	 	3054-A Berkmar Dr. 
	 

	 	Charlottesville, VA 22905
	 	Charlottesville, VA 22901

	 	 	 
	Estimated Charges:

	 	Estimated Tax Charge: $2,162.70 per annum, payable in equal installments, in advance, at the rate of $180.23 per month, subject to
annual adjustments.
	 
	 	 
	 

	 	Estimated Insurance Charge: $330.60 per annum, payable in equal installments, in advance, at the rate of $27.55per month, subject to
annual adjustments.
	 
	 	 
	 

	 	Estimated Common Area Charge: $2,760.00 per annum, payable in equal installments, in advance, at the rate of $230.00 per month,
subject to annual adjustments.
	 
	 	 
	 

	 	Estimated Water/Sewer Charge: $480.00 per annum, payable in equal installments, in advance, at the rate of $40.00 per month, subject
to annual adjustments.
	 
	 	 
	 

	 	Promotional Fund Charge: $1,500.00 per annum, payable in equal installments, in advance, at the rate of $125.00 per month, subject to
annual adjustments.

	 	 	 	 	 
	Exhibits:	 	This Lease includes the following Exhibits, Riders and Addenda which are incorporated herein and made a part hereof by this reference:
	 

	 	EXHIBIT A
	 	Shopping Center Site Plan
	 

	 	EXHIBIT A-1
	 	The Premises
	 

	 	EXHIBIT B
	 	Tenant Design/Criteria manual
	 

	 	EXHIBIT C
	 	Operating Hours
	 

	 	EXHIBIT D
	 	Sign Criteria
	 

	 	EXHIBIT E
	 	Tenant Covenants Relating to IRB Financing Deleted
	 

	 	EXHIBIT F
	 	Grand Opening Deleted
	 

	 	EXHIBIT G
	 	Guaranty Deleted
	 

	 	EXHIBIT H
	 	Keyman Insurance Deleted
	 

	 	EXHIBIT I
	 	Uniform Commercial Code Filing Form
	 

	 	EXHIBIT J
	 	HVAC Agreement

4

 

SECTION 2 Grant and Term

	 	 	 
	Grant:

	 	In consideration of the rents agreed to be paid and of the
covenants and agreements made by the respective parties hereto,
Landlord demises and leases to Tenant and Tenant hereby leases from
Landlord the Premises, upon the terms and conditions herein
provided, together with the right to use, in common with others
entitled thereto, the Common Areas (as hereinafter defined),
subject to the terms and conditions of this Lease and to reasonable
rules and regulations for the use thereof as prescribed from time
to time by Landlord.
	 
	 	 
	Term:

	 	Subject to the terms, covenants and agreements contained herein,
Tenant shall have and hold the Premises for the entire Term.
Landlord and Tenant agree to execute and deliver a supplement to
this Lease setting forth the dates of commencement and expiration
of the term when determinable or requested by either party. If the
Commencement Date has not occurred upon the expiration of twelve
months following the date hereof, then this Lease shall thereupon
become null and void and shall have no further force and effect in
law or in equity.

SECTION 3 Rent, Percentage Rent, Utility Charges, Taxes and Insurance

	 	 	 
	Minimum Rent:

	 	Tenant covenants and agrees to pay
to Landlord the Minimum Rent
specified in Section 1 in advance
and without notice, demand or setoff
on the first day of each month of
the Term; provided, however, that
the first and last payments due
shall be made upon execution and
delivery of this Lease by Tenant.
Acceptance of late Rent at any time
or times by Landlord shall in no way
waive Tenant’s obligation to pay
Rent in accordance with this Section
or be deemed a waiver of any of
Landlord’s rights hereunder. If the
Term commences on a day other than
the first day of the month, or ends
on a day other than the last day of
the month, Tenant shall pay for the
fractional month within the Term on
a per diem basis (calculated on the
basis of a thirty-day month).
	 
	 	 
	Percentage Rent:

	 	(a) Deleted Within twenty (20) days
following the end of each Fiscal
Year, Tenant shall pay to Landlord
the Percentage Rate, if any, for
such Fiscal Period or such proration
of the Fiscal Period during the
first and last years of the Term
applicable. The acceptance by
Landlord of said payment shall be
without prejudice to Landlord’s
rights of examination and
verification as hereinafter
provided.
	 
	 	 
	 

	 	(b) The term “Gross Sales” as used
herein for the purpose of
determining Percentage Rent shall
mean the dollar aggregate of the
entire amount of receipts from gross
sales of Tenant and all of
licensees, concessionaires and
tenants of Tenant, from all business
conducted upon or from the Premises
by Tenant and all others, whether
such sales be evidenced by check,
credit, charge accounts, exchange or
otherwise, and shall include but not
be limited to, the amounts received
from the sale of goods, wares and
merchandise and for services
performed on or at the Premises
(including the value of all goods
accepted in lieu of cash payment),
together with the amount of all
orders taken or received at the
Premises, mail or telephone orders
received or filled on the Premises,
whether such orders are filled from
the Premises or elsewhere, and
whether such sales be made by means
of merchandise or other vending
devices in the Premises. If any one
or more departments or other
divisions of Tenant’s business gross
sales of such departments or
divisions, whether such sales are
filled at the premises or elsewhere,
in the same manner and with the same
effect as if the business or sales
of such departments and visions of
Tenant’s business had been conducted
by Tenant. Gross Sales shall not
include sales of merchandise of
which, and to the extent that, cash
has been refunded, or allowances
made on merchandise claimed to be
defective or unsatisfactory,
provided they shall have originally
been included in Gross Sales; and
three shall be deduced from Gross
Sales the sale price of merchandise
returned by customers for exchange,
provided that the sale price of
merchandise delivered to the
customer in exchange shall be
included in Gross Sales. Gross
Sales shall not include the amount
of any sales, use, service, gross
receipts or other like tax imposed
by any federal, state, municipal or
governmental authority directly on
sales and collected from customers,
provided that the amount thereof is
added to the selling price or
absorbed therein, and paid by the
Tenant to such government authority.
No franchise, capital stock or
personal property tax and no income
tax or similar tax based upon income
or profits as such shall be deducted
from Gross Sales in any event
whatsoever. Each charge or sale
upon installment or credit shall be
treated as a sale for the full price
in the calendar month during which
such charge or sale shall initially
be made, irrespective of the time
when Tenant shall receive payment
(whether full or partial) therefor.
There shall be no deduction for
uncollected or uncollectible credit
accounts or for bad debts or other
losses.

5

 

	 	 	 
	 

	 	(c) On or before the
20th day of each calendar
month during the Term, Tenant shall
deliver to Landlord a statement in
writing, certified as true and
correct by an executive officer of
the Tenant, which statement shall
show Gross Sales during the
immediately preceding calendar
month. The statement referred to in
this subsection shall be in such
form and style and shall contain
such details and information as
Landlord may reasonably require from
time to time. The acceptance by
Landlord of payment of Percentage
Rent or reports thereof shall be
without prejudice and shall in no
event constitute a waiver of
Landlord’s right to claim a
deficiency in the payment of such
Percentage Rent or to audit Tenant’s
books and records, as hereafter set
forth. Tenant agrees to prepare,
keep and maintain for a period of
not less than three years complete
and accurate books of account and
records of all purchases and
receipts of merchandise, inventories
and all sales and other transactions
by Tenant and its concessionaires,
licensees and tenants from which
Gross Sales can be determined.
Tenant agrees to record all sales,
as the time each sale is made,
whether for cash or credit, in a
cash register or registers
containing locked-in cumulative
tapes with accumulation capacity.
Tenant shall keep for at least three
years all pertinent original sales
records, which records shall include
(i) daily dated register tapes; (ii)
serially numbered sales checks and
slips; (iii) duplicate bank deposit
slips and bank statements; (iv)
related computer records; (v) such
other records as would normally be
required to be kept and examined by
an independent certified public
accountant in accordance with
accepted auditing practices in
performing an audit of Tenant’s
Gross ales; and (vi) all income,
sales and occupation tax returns.
	 
	 	 
	 

	 	(d) Deleted Upon five days’ prior
written notice to Tenant, Landlord
shall have the right to cause a
complete audit to be made of
business affairs conducted at, upon
or from the Premises by Tenant (and
all concessionaires, licensees or
tenants of Tenant) and all books and
records pertaining thereto,
including those specified in
subsection (c) of this Section, and
Tenant will make all such books and
records available, or cause the same
to be made available for such
examination at the Premises; said
audit shall be conducted by
Landlord’s authorized
representative. If the results of
such audit shall show that Tenant’s
statement of Gross Sales for any
Fiscal Period has been understated
by 2% or more, then Tenant agrees to
pay Landlord the cost of such audit
in addition to any deficiency
payment required as shown by such
audit with interest thereon as
provided in the Section titled
“Method of Payment, Past Due Rents.”
A report of the findings of
Landlord’s authorized representative
shall be biding and conclusive upon
Landlord and Tenant. The furnishing
by Tenant of any statement which
understates Gross Sales by 5% or
more shall constitute a material
breach of this Lease and entitle
Landlord at it election to all
remedies herein granted in the event
of default by Tenant. Any
information obtained by Landlord as
a result of such audit shall be held
in strict confidence by Landlord,
except in any action or proceeding
by Landlord to enforce its rights
under this Lease, or in connection
with any prospective sale or
financing of the Premises or any
part thereof.
	 
	 	 
	 

	 	(e) Tenant shall not directly or
indirectly engage in, own or operate
any businesses similar to that
authorized to be conducted
hereunder, or use or permit the use
of the same or a similar trade name,
within a radius of three miles of
the nearest outside boundary of the
Shopping Center during the Term;
provided, however, that nothing
herein shall be construed to prevent
operation of any of Tenant’s
existing stores under their present
tradenames. In the event of any
violation of the covenant contained
in the previous sentence, and in
addition to all other remedies for
default provided hereunder, the
Gross Sales, as defined in this
Lease, of any such businesses within
the restricted radius shall be
included in the Gross Sales made
from the Premises, and the rent
hereunder shall be computed upon the
aggregate of the Gross Sales made
from the Premises and from such
other businesses. Under such
circumstances, Tenant agrees to make
available to Landlord all sales
records from Tenant’s other
businesses within five (5) days of
Landlord’s request. The audit
provisions of paragraph (d) above
shall also apply to such other
businesses.
	 
	 	 
	 

	 	(f) Tenant agrees to cause the
business located on the Premises to
be included in Tenant’s advertising
program so that said business will
receive at least equivalent
treatment with respect to
advertising and publicity as is
afforded other businesses now owned,
operated or hereafter acquired by
tenant and to cause mention of the
address, tradename and location of
said business in such advertising
and publicity.
	 
	 	 
	 

	 	(g) Deleted In determining the rent
payable by Tenant subsequent to an
event of default, as provided in
Section 16, the Percentage Rent for
each year of the then unexpired term
shall be deemed to be equal to the
average annual Percentage Rent paid
by Tenant from the Commencement Date
of the occurrence of

6

 

	 	 	 
	 

	 	such event of
default, or during the three Lease
Years preceding such event of
default, whichever period is
shorter, plus 10% per year for each
such year of the unexpired term.
	 
	 	 
	 

	 	(h) Landlord shall not become or be
deemed a partner or a joint venture
with Tenant by reason of provision
of this Section 3.
	 
	 	 
	 

	 	(i) Deleted In the event that
Tenant has not realized and
maintained, as a minimum, the Base
Sales amount referred to in Section
1 hereof for the Fiscal period
ending nearest to the end of the
second full calendar year after the
date of this Lease, Landlord shall
have the unilateral right at any
time and from time to time
thereafter to terminate this Lease
and Tenant’s right to use the
Premises, upon sixty (60) days’
prior written notice subject to and
in accordance with the provisions of
Section 16 and 18 hereof. The
provisions of this Section 3 shall
also apply to all permitted
sublessees and assignees of Tenant
as to the applicable time period.
	 
	 	 
	 

	 	(j) Deleted For each forthcoming
year, the annual Minimum Rent shall
be increased by the previous year’s
Percentage Rent payable hereunder.
If the forthcoming year’s stipulated
annual Minimum Rent is greater than
the previous year’s Minimum Rent
plus Percentage Rent payable
hereunder, there will be no increase
to the forthcoming year’s stipulated
annual Minimum Rent.
	 
	 	 
	 

	 	(k) Should Tenant fail to furnish
Landlord, when due, with any Gross
Sales Reports required herein, then
Landlord shall have the right to
assess a minimum fee of Twenty-five
and No/100 Dollars ($25.00) per day
until the required report is
furnished and such fee shall be
considered as additional rent
hereunder, provide, however, unless
Tenant shall have failed to provide
such reports on more than two (2)
occasions during the Term, Landlord
shall not charge the slate fee
unless a report remains outstanding
for five (5) days after written
notice from Landlord that such
report ahs not been furnished.
	 
	 	 
	 

	 	(l) Deleted If the Lease year
commences on any day other than the
first day of a full Fiscal Period,
or terminates on any day other than
the last day of a full Fiscal
Period, then the First Fiscal Period
shall be deemed to be those days
between the Commencement Date and
the start of the first full Fiscal
Period, and the Last Fiscal Period
shall be those days from the end of
the last full Fiscal Period and the
termination date of the Lease, and
Percentage Rent for those periods,
if any is due, shall be calculated
according to the definition of
Percentage Rent in Section 1 of this
Lease, and, just as in the case of
full Fiscal Periods, shall be due
and payable on the 20th
of the month following the end of
the Fiscal Point.
	 
	 	 
	Utility Charges:

	 	Tenant shall arrange for utilities
on its own account and in its own
name and shall be solely responsible
for and pay when due all charges for
heat, water, gas, electricity or any
other utility services used or
consumed in the Premise beginning on
the date Tenant takes possession of
the Premises for purposes of
fixturing or Tenant Improvements as
set forth in Section 4. In the
event separate bills are not
obtainable for any such expense,
Tenant shall pay Landlord the
Tenant’s Proportionate Share of such
charges and expenses, subject to
adjustment based on any
extraordinary use or consumption of
any utility by Tenant on the
Premises, within five days after
billing therefor. In the event such
charges shall not be paid when due,
Landlord shall have the right to pay
same, which amount so paid is hereby
declared to be additional rent due
on demand with interest as provided
in Section 3.
	 
	 	 
	Taxes:

	 	Tenant agrees to pay Landlord as
additional rent Tenant’s
Proportionate Share of (a) the total
general and special real estate
taxes and assessments which are
levied and assessed on all land and
buildings in the Shopping Center,
including the Premises and all
common areas, during the Term and
(b) Landlord’s expenses in
contesting the validity of, or
seeking a reduction in, or in
seeking to prevent an increase in
any such tax or assessment, or
attempting to obtain any refund
thereof or reassessment in the value
of the Shopping Center or any
portion thereof. Tenant’s
Proportionate Share shall be paid in
monthly installments on or before
the first day of each calendar
month, in advance, in an amount
estimated by Landlord. Upon receipt
of all tax, assessment and expense
bills attributable to any Lease
Year, Landlord shall furnish Tenant
with a written statement of the
actual amount of Tenant’s
Proportionate Share. If the total
amount paid by Tenant under this
Section for any Lease Year shall be
less than the actual amount due from
Tenant for such Lease Year as shown
on such statement, Tenant shall pay
to Landlord the difference between
the amount paid by Tenant and the
actual amount due, such deficiency
to be paid within 10 days after
demand therefor by Landlord; and if
the total amount paid by Tenant
hereunder for any Lease Year shall
exceed such actual amount due from
Tenant for such Lease Year, such
excess shall

7

 

	 	 	 
	 

	 	be credited against
payments hereunder next due, or if
no payments are next due, refunded
to Tenant. Tenant shall further pay
as additional rent all rental use
taxes related to the Premises
assessed by any governmental
authority whether measured by
Tenant’s gross rental payments or
otherwise, and whether charged
against Tenant or Landlord (but not
including income or franchise taxes
or any other taxes imposed upon or
measured by Landlord’s net income,
profits or net worth unless the same
shall be imposed in lieu of real
estate taxes). All amounts of
additional rent payable pursuant to
this section shall be payable in the
manner and at the place provided for
in Sections 3 and 21 hereof. Tenant
shall further pay and discharge when
due any federal, state, county or
municipal tax levied or assessed
against the leasehold estate created
hereby, and any taxes levied or
assessed against any trade fixtures,
furnishings, equipment, leasehold
improvements, alterations or
additions made by Tenant,
merchandise and personal property of
any kind owned, installed or used by
Tenant in or upon the Premises
during the Term.
	 
	 	 
	Insurance:

	 	Landlord shall, during the Term,
keep in full force and effect public
liability, property damage, fire,
extended coverage, casualty, rent
loss and flood (if required)
insurance covering the Premises and
the Shopping Center (excluding the
Tenant Improvements and property
required to be insured by Tenant
pursuant to Section 13 hereof), with
coverage and in amounts as are
customary with respect to like
properties in the area where the
Shopping Center is located. Tenant
agrees to pay Landlord as additional
rent, Tenant’s Proportionate Share
of the premiums charged Landlord for
such Insurance, prorated on a per
diem basis for the first and last
Lease Years. Tenant’s Proportionate
Share shall be paid in monthly
installments on or before the first
day of each calendar month, in
advance, in an amount estimated by
Landlord.
	 
	 	 
	Additional Rent:

	 	Tenant covenants to pay and
discharge when the same shall become
due, as additional rent, all
amounts, liabilities and obligations
which Tenant has assumed or agreed
to pay or discharge pursuant to this
Lease including those enumerated in
this Section 3 and elsewhere in this
Lease, together with every fine,
penalty, interest and cost which may
be added for non-payment or late
payment thereof.
	 
	 	 
	Method of Payment, Past Due Rents:

	 	The term “rent” as used in this
Lease shall mean and include all
Minimum Rent, Percentage Rent,
Estimated Charges and additional
amounts payable hereunder. All rent
shall be paid to Landlord at the
Rental Payment Address specified in
Section 21 or at such other place or
to such other person as Landlord may
from time to time direct in writing,
or as is otherwise provided herein,
in lawful money of the United States
of America. If Tenant should fail
to pay the Landlord when due any
installment of Minimum Rent or other
sum to be paid hereunder, Tenant
will pay Landlord on demand a late
charge of ten percent (10%) thereof
or Three Hundred and No/100 Dollars
($300.00), whichever is greater.
Failure to pay such late charge upon
demand thereof shall be an event of
default under this Lease. Provision
for such late charge shall be in
addition to all other rights and
remedies available to Landlord
hereunder or at law or in equity and
shall not be construed as liquidated
damages or limiting Landlord’s
remedies in any manner. In
addition, any and all sums remaining
unpaid shall accrue interest at the
rate of twelve percent (12%) or
Wachovia Bank, N.A. Bank Prime plus
three percent (3%) per annum
whichever is the greater, commencing
on the due date for any such
payment, provided however that the
rate shall not exceed that which is
limited by law.
	 
	 	 
	Net Lease:

	 	This is a net lease and the rent,
additional rent and all other sums
payable hereunder by Tenant shall be
paid without notice, demand, setoff,
counterclaim, deduction, or defense
and, except as otherwise expressly
provided herein, without abatement
or suspension. Except as otherwise
expressly provided in this Lease,
this Lease shall not terminate, nor
shall Tenant have any right to
terminate this Lease nor shall
Tenant be entitled to any abatement
or reduction of rent hereunder, nor
shall the obligations of Tenant
under this Lease be affected, by
reason if (i) any damage to or in
the destruction of all or any part
of the Premises from whatever cause,
(ii) the taking of the Premises or
any portion thereof by condemnation,
requisition or otherwise for any
reason, (iii) the prohibition,
limitation or restriction of
Tenant’s use of all or any part of
the Premises, or any interference
with such use, by law or ordinance
or other governmental regulation or
by injunction, (iv) any default on
the part of Landlord under this
Lease, or under any other agreement
to which landlord and Tenant may be
parties, (v) the bankruptcy,
insolvency, reorganization,
composition, readjustment,
liquidation, dissolution, winding up
or other proceeding affecting
Landlord or any assignee of
Landlord, or (vi) any other cause
whether similar or dissimilar to the
foregoing. It is the intention of
the parties hereto that the
obligations of Tenant hereunder
shall continue to be payable in all
events and that the obligations of
Tenant hereunder shall continue
unaffected, unless the requirement
to pay or perform the same shall
have been terminated pursuant to an
express provision of this Lease.

8

 

SECTION 4 Construction and Improvements

	 	 	 
	Condition of Premises:

	 	Landlord agrees that it will, at its
sole cost and expense as soon as is
practical after the execution of
this Lease, commence and pursue to
completion the improvements to been
erected by Landlord to the extent
shown on the attached Exhibit B
labeled “Description of Landlord’s
Work and Tenant’s Work.” Tenant’s
taking possession of the Premises
shall be conclusive evidence as
against Tenant that the Premises
were in satisfactory condition when
Tenant took possession. Tenant
acknowledges that it has inspected
the Premises and hereby accepts the
Premises “AS IS” with no
representation or warranty by
landlord as to the condition of the
Premises or their suitability for
tenant’s proposed improvements
thereto or use thereof or the
condition of the Shopping Center,
and with no promise by Landlord or
its agent to improve or repair the
premises of the Shopping Center
except as set forth in Exhibit B
attached hereto.
	 
	 	 
	Tenant’s Work:

	 	Any additional improvements to the
Premises necessary for the Tenant’s
use or occupancy thereof and not
listed as Landlord’s work in Exhibit
B shall be completed by Tenant, at
Tenant’s expense, and shall
hereinafter be referred to as
“Tenant Improvements.” The Tenant
Improvements shall be completed by
Tenant in conformity with the
specifications in Exhibit B. Tenant
agrees to submit to Landlord plans
and specifications covering the
Tenant Improvements in such detail
as Landlord or Managing Agent may
require within fifteen (15) days of
execution of this Lease and Tenant
agrees not to commence any work on
any of the Tenant Improvements until
Landlord has approved such plans and
specifications in writing. At all
times during Tenant’s construction,
Landlord and its representatives
shall have the right to enter upon
the Premises for the purpose of
inspecting construction and progress
of the Tenant Improvements. Tenant
agrees that its entry onto and
occupation of the Premises prior to
the Commencement Date shall be
subject to all of the terms of this
Lease, except the covenants to pay
the amounts as set forth in Section
3 as rent, taxes or insurance. If
Tenant Improvements deviate from the
plans and specifications approved by
the Landlord, Landlord can elect to
(a) approve the deviation in the
Tenant’s Improvements, (b) have
Tenant make corrections to
correspond with the approved plans
and specifications, and (c) place
Tenant in default for material
deviation in Tenant’s Improvements.
	 
	 	 
	Excuse of Performance

	 	Anything in this Lease to the
contrary notwithstanding, neither
Tenant nor Landlord shall be deemed
in default with respect to the
performance of any of the terms of
this Lease (except for payment of
money due hereunder) if a failure of
performance is due to any strike,
lockout, boycott, labor dispute,
civil commotion, war-like operation,
invasion, rebellion, hostilities,
military or usurped power, sabotage,
governmental regulation or control,
inability to obtain any material or
service, Act of God, adverse weather
condition, energy shortage or any
other cause whether similar to
dissimilar, beyond the reasonable
control of Tenant or Landlord;
provided such cause is not due to
the willful act of Tenant or
Landlord; and further provided that
delays or failures to perform
resulting from lack of funds shall
not be deemed delays beyond the
reasonable control of a party; and
further provided that the foregoing
shall not relieve Tenant from its
obligation timely to pay rent and
other sums due under this Lease. In
order to claim the benefits of this
section, the party claiming any such
excuse for its performance hereunder
must have given the other party
written notice of the cause and
anticipated duration of such failure
of performance within 5 days of the
occurrence of said cause.
	 
	 	 
	Failure of Tenant to Open:

	 	In the event that the Tenant fails
to take possession and to open the
Premise for business fully improved,
to fixtured, stocked and staffed by
the Commencement Date, then the
Landlord shall have, in addition to
any and all remedies herein
provided, the right to its option to
collect not only the Minimum Rent
and additional amounts due in
accordance with Section 3 hereof,
but also additional rent at the rate
of $.03 per square foot of Leasable
Space in the Premises per day for
each and every day that the Tenant
shall fail to commence to do
business; said additional rent shall
be deemed to be liquidated damages
for the benefit of Landlord and
shall be in lieu of any Percentage
Rent if applicable that might have
been earned during such period of
the Tenant’s failure to open.

SECTION 5 Use of Premises

	 	 	 
	Use:

	 	(a) The Premises shall be occupied and used only for the Permitted
Uses and for no other purpose whatever unless Landlord, in its sole
right, discretion or with the approval and consent of any other
interested party who has a right, consents to a change of such uses.
Tenant acknowledges and agrees that the Permitted Uses of the
Premises set forth herein are a critical element of the bargain of
the parties hereto and that actual and substantial detriment will
result to Landlord and the other tenants and occupants of the
Shopping Center in the event that a change or deviation in such uses
shall occur or be permitted without the express written consents
herein required.

9

 

	 	 	 
	 

	 	(b) Tenant agrees to keep the Premises open and diligently, actively
and continuously operate the business conducted therein under the
tradename specified in Section 1, using a sufficient number of
adequately trained managers and personnel for efficient service,
during the minimum hours and days and evenings of the week which are
indicated on Exhibit C, provided that such minimum hours of operation
are subject to change from time to time by Landlord so long as any
such change is applicable to substantially all tenants of the
Shopping Center. Tenant shall carry at all times in the Premises a
full stock of current season merchandise of such quantity, character,
and quality as to maximize Gross Sales and shall operate 100% of the
Premises. Tenant shall install and maintain at all times display
windows on the Premises. Tenant agrees to conduct Tenant’s business
at all times in a first-class, high-grade manner consistent with
reputable business standards and practices in good faith and in such
manner that the high reputation of the Shopping Center is furthered.
Tenant agrees that storage and office space in the Premises shall
only exist to the extent required for the permitted uses conducted on
the Premises. No auction, fire, liquidation or bankruptcy sales may
be conducted in the Premises without the prior written consent of
Landlord having been first obtained. Landlord makes no warrant that
the zoning of the Premises is proper for Tenant’s business purpose.
Such determination shall be the Tenant’s sole responsibility. Tenant
acknowledges that the Shopping Center is an Interdependent enterprise
and its success is dependent upon the opening and continued operation
of Tenant’s business in accordance with the Lease. In the event
Tenant breaches the provisions of this subparagraph (b), in addition
to all other remedies contained in this Lease, Landlord may assess a
charge of $.05 per square foot of Leasable Space for each day or
portion thereof that these provisions are violated. Such charge
shall be deemed additional rent hereunder and shall be due and
payable within ten (10) days of billing thereof.

SECTION 6 Quiet Enjoyment and Landlord’s Right of Entry

	 	 	 
	Quiet Employment:

	 	If and so long as Tenant shall pay the rent specified
herein and observe and perform all covenants, agreements
and obligations required by it to be observed and
performed hereunder, Tenant shall peaceably and quietly
hold and enjoy the Premises for the Term without
hindrance or interruption by Landlord or any other
person or persons lawfully or equitably claiming by,
though or under Landlord, subject, nevertheless, to the
terms and conditions of this Lease and the mortgages and
other matters to which this Lease is subordinate.
Landlord expressly reserves the right as to the Shopping
Center at any time to do, or permit to be done, any or
all of the following: add or remove buildings or
structures; change the number and location of buildings
and structures; change building dimensions; change the
number of floors in any of the buildings or structures;
enclose any mall; add to, alter or remove partially or
wholly any structure or structures used to enclose any
plaza area; change the identity and type of stores and
tenancies and the dimensions thereof; change the name of
the Shopping Center in which the Premises are located;
change the address or designation of the Premises;
provide subterranean and multiple level parking decks;
convert common areas into leasable areas; change the
means of access to and egress from the Shopping Center,
and expand or reduce the size of the Shopping Center,
provided, however, that no such changes shall deny or
materially interfere with reasonable visibility of,
ingress to, or egress from the Premises.
	 
	 	 
	Right of Entry:

	 	Tenant agrees that Landlord, Managing Agent, their
agents, employees or servants or any person authorized
by Landlord may enter the Premises for the purpose of
inspecting the condition of the same and to make such
repairs, additions, improvements, changes or alterations
to the Premises or the building of which they are a part
as Landlord may elect to make, and to exhibit the same
to prospective purchasers, mortgagees and, tenants of
other areas of the Shopping Center and to prospective
tenants and to place in and upon the Premises during the
last six months of the Term as such places as may be
determined by Landlord “for rent” signs or notices, and
tenant undertakes and agrees that neither Tenant nor any
other person within Tenant’s control will interfere with
such signs or notices. Such entry, inspection and
repairs, additions, improvements, changes or alterations
as Landlord may make of or to the Premises or the
building of which the Premises are a part shall not
constitute eviction of Tenant in whole or in part, and
the rent reserved shall in no wise abate while such work
is being done by reason of loss or interruption of
business of Tenant or otherwise. If Tenant or Tenant’s
agents or employees shall not be present to permit entry
to the Premises at any time when for any reason entry
therein shall be necessary in the reasonable judgment of
the Landlord to prevent injury or damage, Landlord,
Managing Agent or their

10

 

	 	 	 
	 

	 	agents or employees may enter
same by or by forcible entry or otherwise without
liability therefor and without in any manner affecting
the obligations, covenants, terms or conditions of this
Lease. Nothing herein contained, however, shall be
deemed or construed to impose upon Landlord any
obligation or liability whatsoever for care,
supervision, repair, improvement, addition, change or
alteration of the Premises or the building of which they
are a part or the Shopping Center or any part thereof
other than herein expressly provided.

SECTION 7 Nuisance, Waste, Hazardous Materials, Rules and Regulations

	 	 	 
	Nuisance:

	 	Tenant shall not perform any acts or carry on any
practices which may injure the building of which
the Premises are a part, violate any certificate
of occupancy affecting same, constitute a public
or private nuisance or a menace to other tenants
in the Shopping Center, produce undue noise,
create obnoxious fumes or odors or otherwise
cause unreasonable interference with other
tenants of the Shopping Center.
	 
	 	 
	Waste, Etc.:

	 	Tenant agrees not to: (a) permit any unlawful or
immoral practice to be carried on or committed on
the Premises; (b) make any use of or allow the
Premises to be used for any purpose that might
invalidate or increase the rates of insurance
therefor; (c) keep or use or permit to be kept or
used on the Premises any inflammable fluids or
explosives without the written permission of the
Landlord first had and obtained; (d) use the
Premises for any purpose whatsoever which might
create a nuisance or injure the reputation of the
Premises or the Shopping Center; (e) deface or
injure the Premises or the Shopping Center; (f)
overload the floors; (g) sell or consume or allow
the sale or consumption of alcoholic beverages on
the Premises, unless the same is included in the
Permitted Uses and appropriate licenses and
insurance coverage has been secured; or (h)
commit or suffer any waste in or about the
Premises. Tenant agrees to pay as additional
rent any increase in the cost of insurance on the
Premises to Landlord as a result of any
unauthorized use of the Premises by Tenant, but
such payment shall not constitute in any manner a
waiver by Landlord of its rights to enforce all
of the covenants and provisions of this Lease.
	 
	 	 
	Hazardous Material:

	 	Tenant shall not cause or permit any Hazardous
Material to be brought upon, kept or used in or
about the Premises by Tenant, its agents,
employees, contractors or invitees, without the
prior written consent of Landlord (which Landlord
shall not unreasonably withhold as long as Tenant
demonstrates to Landlord’s reasonable
satisfaction that such Hazardous Material is
necessary or useful to Tenant’s business and will
be used, kept and stored in a manner that
complies with all laws regulating any such
Hazardous Material so brought upon or used or
kept in or about the Premises). If Tenant
breaches the obligations in the preceding
sentence, or if the presence of Hazardous
Material on the Premises caused or permitted by
Tenant results in contamination of the Premises,
or if contamination of the Premises by Hazardous
Material otherwise occurs for which Tenant is
legally liable to Landlord for damage resulting
therefrom, then Tenant shall identify, defend and
hold Landlord harmless from any and all claims,
judgments, damages, penalties, fines, costs,
liabilities or losses (including, without
limitation, diminution in value of the Premises,
damages for the loss or restriction on use of
rentable or usable space or if any amenity of the
Premises, damages arising from any adverse impact
on marketing of space, and sums paid in
settlement of claims, attorney’s fees, consultant
fees and expert fees) which arise during or after
the lease term as a result of such contamination.
This indemnification of Landlord by Tenant
includes, without limitation, costs incurred in
connection with any investigation of site
conditions or any cleanup, remedial, removal or
restoration work required by any federal, state
or local governmental agency or political
subdivision because of Hazardous Material present
in the soil or ground water on or under the
Premises. Without limiting the foregoing, if the
presence of any Hazardous Material on the
Premises caused or permitted by Tenant results in
any contamination of the Premises, Tenant shall
promptly take all actions at its sole expense as
are necessary to return the Premises to the
condition existing prior to the introduction of
any such Hazardous Material to the Premises;
provided that Landlord’s approval of such actions
shall first be obtained, which approval shall not
be unreasonably withheld so long as such actions
would not potentially have any material adverse
long-term or short-term effect on the Premises.
	 
	 	 
	 

	 	As used herein, the term “Hazardous Material”
means any hazardous or toxic substance, material
or waste which is or becomes regulated by any
local government authority, the state in which
the Premises are located or the United States
Government. The provisions of this Section shall
remain in force after the termination of the
Lease.
	 
	Rules and Regulations:

	 	Tenant covenants and agrees with Landlord that:

11

 

	 	 	 
	 

	 	(a) All loading and unloading of goods shall be
done only at such times, in the areas and through
the entrances designed for such purposes by
Landlord.
	 
	 	 
	 

	 	(b) The delivery or shipping of merchandise,
supplies, furnishings and fixtures to and from
the Premises shall be subject to such rules and
regulations as in the judgment of Landlord are
necessary for the proper operation of the
premises and the Shopping Center.
	 
	 	 
	 

	 	(c) All garbage and refuse shall be kept in the
kind of container specified by Landlord and shall
be placed outside of the Premises prepared for
collection in the manner and at the times and
places specified by Landlord. If Landlord shall
provide or designate a service for picking up
refuse and garbage, Tenant shall use same at
Tenant’s cost. Tenant shall pay the cost of
removal of all of Tenant’s refuse or rubbish.
	 
	 	 
	 

	 	(d) No aerial or any other device or structure
including but not limited to T.V., disc, etc.
shall be erected on the roof or exterior walls of
the Premises, or on the Shopping Center, without
in each instance, the written consent of
Landlord. Any aerial so installed without such
written consent shall be subject to removal
without notice at any time.
	 
	 	 
	 

	 	(e) Tenant shall keep the Premises at a
temperature sufficiently high to prevent freezing
water in pipes and fixtures.
	 
	 	 
	 

	 	(f) The areas immediately adjoining the Premises
shall be kept clean and free from dirt and
rubbish by Tenant to the satisfaction of
Landlord, and Tenant shall not place or permit
any obstructions or merchandise in such areas.
	 
	 	 
	 

	 	(g) Tenant and Tenant’s employees shall park
their cars only in those portions of the parking
areas designated for that purpose by Landlord.
Tenant shall from time to time furnish Landlord
with state automobile license numbers assigned to
Tenant’s car or cars, and cars of Tenant’s
employees.
	 
	 	 
	 

	 	(h) The plumbing facilities shall not be used for
any other purpose than that for which they were
constructed, and no foreign substance of any kind
shall be disposed of therein.
	 
	 	 
	 

	 	(i) Tenant shall not burn any trash or garbage of
any kind in or about the Premises or the Shopping
Center. Tenant shall sweep sidewalk in front of
the store and keep the windows and sills clean.
	 
	 	 
	 

	 	(j) Tenant shall keep the signs, exterior lights
and display window lights on the Premises lighted
each and every day of the Term during the hours
designated by Landlord.
	 
	 	 
	 

	 	(k) Tenant shall not use or allow the Premises to
be used for any unlawful or improper purpose,
including, but no limited to, the unlawful or
improper use, possession, sale or distribution of
any illegal drugs or controlled substances as
prohibited by federal , state or local law.
	 
	 	 
	 

	 	(l) If Tenant’s Use of the Premise includes any
of the following (restaurant, food preparation,
sale of food prepared in or from the Premises,
catering or automotive service or supply), Tenant
shall be responsible for the installation,
servicing, maintenance and any replacement of a
great trap system, the size of which shall
effectively contain all grease generated from the
Premises. Tenant shall contract with a
recognized grease removal contractor approved by
the Landlord and ensure that the Landlord is at
all times during the Term of any extensions
thereof, provided with a copy of the then current
contract. Should a blockage occur because of the
discharge of fats, petroleum oil,
nonbiodegradable cutting oil, products of mineral
oil origin or grease from the Premises, Tenant
shall be liable for all costs to clean and clear
the sewer line as well as the costs for damage
done to adjoining tenants’ property. If Tenant’s
sewer discharges violate any of the local, state
or federal stream standard ordinances regarding
prohibited waste discharges or creates a public
nuisance, Tenant shall be solely responsible for
any and all fines levied against the Landlord,
its Agent or neighboring tenants. Noncompliance
with any of the above regulations shall result in
a Default of the Lease and shall be subject to
monetary penalties contained herein.
	 
	 	 
	 

	 	The term “Landlord” as used in (a) through (l)
above shall be deemed to include Landlord’s
Managing Agent.

12

 

	 	 	 
	 

	 	In the event any violation of any of the above
rules and regulations continues after five (5)
days following notice to the Tenant of such
violation, beginning on such fifth day tenant
shall, in addition to any and all other remedies
of Landlord provided in this Lease for default by
Tenant, pay liquidated damages of Fifty Dollars
($50.00) per day for each such violation for each
day such violation continues. Landlord reserves
the right to adopt additional rules and
regulations in respect to the conduct of Tenant’s
activities in the Premises and the Shopping
Center, which upon adoption shall be deemed
incorporated herein, provided that Tenant is
given notice thereof.

SECTION 8 Compliance with Law, Liens, Indemnity

	 	 	 
	Compliance with Law and Contracts:

	 	Tenant shall, at its expense, comply
with and shall cause the Premises
and Tenant’s employees to comply
with all governmental statutes,
laws, rules, orders, regulations and
ordinances including environmental
laws and regulations affecting the
Premises or any part thereof, or the
use thereof, at any time during the
Term. Tenant shall, at its expense,
comply with the requirements of all
policies of insurance which at any
time may be in force with respect to
the Premises, and with the
provisions of all contracts,
agreements and restrictions
affecting the Premises or any part
hereof or the occupancy or use
thereof.
	 
	 	 
	Title and Covenant Against Liens:

	 	The Landlord’s title is and always
shall be paramount to the title of
the Tenant and nothing in this
contained shall empower the Tenant
to do any act which can, shall or
may encumber the title of the
Landlord. Tenant covenants and
agrees not to suffer or permit any
lien of mechanics or materialmen to
be placed upon or against the
Shopping Center or the Premises or
against the Tenant’s leasehold
interest in the Premises and, in
case of any such lien attaching, to
immediately pay and remove same.
Tenant has no authority or power to
cause or permit any lien or
encumbrance of any kind whatsoever,
whether created by act of Tenant,
operation of law or otherwise, to
attach to or be placed upon the
Shopping Center or the Premises, and
any and all liens and encumbrances
created by Tenant shall attach only
to Tenant’s interest in the
Premises. If any such liens so
attach and Tenant fails to pay and
remove same within ten (10) days,
Landlord, at its election, may pay
and satisfy the same and in such
event the sums so paid by Landlord,
with interest from the date of
payment at the rate set forth in
Section 3 hereof for amounts owed
Landlord by Tenant, shall be deemed
to be additional rent due and
payable by Tenant at once without
notice or demand and/or Landlord may
place Tenant in Default under this
Lease.
	 
	 	 
	Indemnification:

	 	Tenant agrees to pay, and to
protect, save harmless and indemnify
Landlord, agents and employees of
Landlord, from and against any and
all liabilities, losses, damages,
costs, expenses (including all
attorney’s fees and expenses of
Landlord), causes of action, suits,
claims, demands or judgments of any
nature whatsoever (except those
arising from the gross negligent
acts of Landlord, its agents or
employees) arising from any of the
following: (a) any injury to, or
the death of any person or damages
to property on the Premises; (b) any
injury to, or the death of any
person or damage to property upon
adjoining sidewalks, parking areas,
streets or ways which arises out of
or is in any manner connected with
any activity of Tenant or sponsored
or co-sponsored by Tenant, with or
without Landlord approval or which
arises out of or is in any manner
connected with the use, condition or
occupation of the Premises or any
part thereof by Tenant; (c)
violation of any agreement or
condition of this Lease by Tenant;
or (d) violation by Tenant of any
contract or agreement to which
Tenant is party or any restriction,
statute, ordinance or regulation, in
each case affecting the Premises or
adjoining areas, or any part
thereof.

SECTION 9 Maintenance and Repair of Premises

	 	 	 
	Maintenance by Tenant

	 	Tenant shall at all times maintain
the entire Premises (including
maintenance of exterior entrances
and all glass and show window
moldings) and all floors, ceilings,
interior walls, partitions, doors,
fixtures, equipment and
appurtenances thereof (including,
but not limited to lighting,
plumbing fixtures and heating, air
conditioning, ventilating,
electrical and fire detection and
protection systems installed by
landlord or tenant exclusively
serving the Premises and including
leaks around ducts, pipes, vents or
other parts of the heating, air
conditioning, ventilating and
plumbing systems which protrude
through the roof of the Premises) in
good order, appearance, condition
and repair, including all necessary
replacements thereof. During the
entire term hereof, Tenant agrees to
contract for the regular maintenance
and repair of the heating,
ventilating and air conditioning
equipment with a reputable service
contractor acceptable to landlord
and to provide an executed copy of
such agreement to Landlord. If
Landlord has not received a

13

 

	 	 	 
	 

	 	copy of
such agreement within ten (10) days
of request therefor, in addition to
all other remedies hereunder,
Landlord may, but shall not have the
obligation to, contract for such
services and bill the Tenant the
cost thereof plus 20% for
administration and overhead as
additional rent payable upon demand.
	 
	 	 
	Maintenance by Landlord:

	 	(a) Landlord covenants to maintain
or cause to be maintained only the
foundation and roof of the Premises,
and the structural soundness of the
concrete floors and exterior and
demising walls thereof in good
order, repair and condition,
exclusive of any work required
because of damage caused by any act,
omission or negligence of Tenant,
any subtenant or their respective
employees, agents, invitees,
licensees or contractors. Landlord
shall not be required to commence
any such repair until ten (10) days
after written notice from Tenant
that the same is necessary. The
provisions of this paragraph shall
not apply in the case of damage or
destruction by fire or other
casualty or a taking under the power
of eminent domain, in which events
the obligations of the Landlord
shall be controlled by the Sections
of this Lease dealing therewith.
	 
	 	 
	 

	 	(b) If Landlord is required to make
repairs to the Premises by reason of
Tenant’s acts, omissions or
negligence, or if Tenant refuses or
neglects to repair as required
hereunder to the reasonable
satisfaction of Landlord, Landlord
may make such repairs without
liability to Tenant for any loss or
damage that may accrue to Tenant’s
merchandise, fixtures, or other
property or to Tenant’s business by
reason thereof. Upon completion
thereof, Tenant shall reimburse
Landlord’s costs for making such
repairs plus twenty percent (20%) of
such costs for overhead and
supervision, upon presentation of a
bill therefor, as additional rent.

SECTION 10 Common Areas and Charges

	 	 	 
	Control of Common Areas:

	 	All automobile parking areas,
entrances and exits thereto, and
other facilities furnished by
Landlord from time to time in or
near the Shopping Center, including
employee and customer parking areas,
mall areas, the truck way or ways,
loading docks, package pick-up
stations, Shopping Center signs,
pedestrian sidewalks and ramps,
landscaped areas, exterior and
interior stairways, facades,
canopies, hallways, display and
exhibit areas and other areas and
Improvements provided by Landlord
for general use, in common, by
tenants of the Shopping Center,
their officers, agents, employees
and customers shall at all times be
subject to the exclusive control and
management of Landlord or its
designees, and Landlord shall have
the right from time to time to
establish, modify and enforce
reasonable rules and regulations
with respect to all facilities and
areas mentioned in this Section.
All facilities and areas, including
but not limited to the foundations,
concrete floors, exterior walls, and
roofs of all buildings within the
Shopping Center and all ducts,
conduits and similar items, heating,
ventilating, air conditioning,
plumbing, security and fire
detection and protection systems and
storm, sanitary drainage and other
utility systems not installed by or
exclusively serving a single tenant
of the Shopping Center, are
hereinafter collectively called the
“Common Areas.” Landlord or its
designees shall have the right to
construct, maintain and operate
lighting and parking facilities on
all Common Areas; to police the
same; from time to time to change or
reduce the area, level, location,
size and arrangement of parking
areas and other facilities
hereinafter referred to; to restrict
parking by tenants, their officers,
agents and employees to employee
parking areas; to close all or any
portion of said areas or facilities
to such extent as may, in the
opinion of Landlord’s counsel, be
legally sufficient to prevent a
dedication thereof or the accrual of
any rights to any person or the
public therein to close temporarily
all or any portion of the parking
areas or facilities; to erect
improvements or buildings on such
parking areas for lease or sale
purposes and other common areas and
to lease area improvements; to
discourage non-customer parking; and
to do and perform such other acts in
and to said areas and improvements
as, in the use of good business
judgment, the Landlord shall
determine to be advisable with a
view to the improvement of the
convenience and use thereof by
tenants of the Shopping Center,
their officers, agents, employees
and customers; provided that no such
changes shall deny or materially
adversely interfere with the
reasonable visibility of, ingress to
or egress from the Premises.
	 
	 	 
	License:

	 	All Common Areas and facilities
therein not within the Premises
which Tenant may be permitted to use
and occupy are to be used and
occupied under a revocable license,
and if the amount of such areas be
diminished, Landlord shall not be
subject to any liability nor shall
Tenant be entitled to any
compensation or diminution or
abatement of rent, nor shall such
diminution of such areas be deemed
constructive or actual eviction.

14

 

	 	 	 
	Maintenance Charges:

	 	(a) Tenant agrees to pay as
additional rent, monthly or less
frequently as directed by Landlord,
Tenant’s Proportionate Share of the
Shopping Center’s Common Area
Maintenance Cost (as hereinafter
defined). Such payments shall be
based on Landlord’s reasonable
estimates, subject to adjustment
from time to time on determination
of the actual amount of the Shopping
Center’s Common Area Maintenance
Cost. The failure of Tenant to pay
any portion of Tenant’s
Proportionate Share of the Shopping
Center’s Area Maintenance Cost on or
before the tenth (10th)
day after notice from landlord shall
constitute a material default under
this Lease and shall be treated for
all purposes as a default in the
payment of rent.
	 
	 	 
	 

	 	(b) “Shopping Center’s Common Area
Maintenance Cost” shall be the total
of all items of cost and expense
expended (including appropriate
reserves) in operating, managing,
equipping, protecting, policing,
lighting, repairing, replacing and
maintaining the Common Areas and
their facilities (less any insurance
proceeds collected with respect to
any such repair or replacement)
including, but not limited to, all
costs and expenses of (1)
maintaining and repairing the Common
Areas as shall be required in
Landlord’s judgment to preserve the
utility and condition of the Common
Areas in substantially the same
condition and status though not
necessarily the same area or
configuration as the Common Areas
were in as of the Commencement Date;
(2) security, fire detection and
protection and traffic direction and
control; (3) cleaning and removal of
rubbish, dirt, debris, water, snow
and ice (including removal of water,
snow and ice from rooftops); (4)
planting, replanting and replacing
flowers and landscaping; (5) water,
drainage and sewage; (6) liability,
property damage, fire, extended
coverage, flood, rent loss,
malicious mischief, vandalism,
worker’s compensation and employees’
liability, and any other casualty
and liability insurance; (7) wages,
health and welfare benefits, pension
or profit sharing benefits, union
dues, vacations, unemployment taxes
and social security taxes; (8)
personal property taxes; (9) permits
and licenses; (10) supplies; (11)
the operation of loud-speakers and
any other equipment supplying music;
(12) utility services and lighting
(including the cost of light bulbs
and electric current); (13)
patching, repairing, resurfacing,
topping and marking of all parking
and drive areas; (14) filling,
sealing and supporting of sinkholes;
(15) depreciation of machinery and
equipment used in the operation of
the Common Areas (but not including
depreciation of the original cost of
acquiring Common Areas of the
Shopping Center); (16)
administrative charges in an amount
not to exceed fifteen percent (15%)
of the Shopping Center’s Common Area
Maintenance Cost (exclusive of such
administrative charges); (17) the
charges of any independent
contractor who, under contract with
the Landlord or its representatives,
does any of the work of operating,
maintaining or repairing the Common
Areas; and (18) any other expense or
charge, whether or not hereinbefore
mentioned, which in accordance with
generally accepted accounting and
management principles, would be
considered as an expense of
managing, operating, maintaining or
repairing the Common Areas.

SECTION 11 Fixtures, Signs and Alterations

	 	 	 
	Fixtures:

	 	All readily moveable furnishings,
store fixtures and equipment owned
and used by Tenant in the Premises
shall at all time during the term be
and remain the property of the
Tenant without regard to the means
by which they are installed in or
attached to the Premises. Upon
expiration or termination of this
Lease, Tenant shall remove all such
furnishings, fixtures, and equipment
and restore the Premises as provided
in Section 18, provided that Tenant
shall not remove any equipment,
conduits, and fixtures providing
water, plumbing, electrical,
heating, ventilation, air
conditioning, lighting and sewer
service to the Premises, all of
which, together with any other
furnishing, fixtures and equipment
not removed by Tenant as provided
above, shall become the property of
Landlord upon expiration of the term
or termination of Tenant’s right to
possession of the Premises pursuant
to Section 16 and shall be
conclusively presumed to have been
conveyed by Tenant to Landlord under
this Lease as a bill of sale without
any payment or credit by Landlord to
Tenant.
	 
	 	 
	Signs:

	 	Tenant shall have the right to place
signs and advertisements on the
exterior and interior of the
Premises and the Shopping Center in
the locations and subject to the
conditions set forth in Exhibit D,
provided that the size, style and
appearance of all exterior signs and
all interior signs visible from the
exterior of the Premises shall be
subject to the approval of Landlord
or Managing Agent and shall be in
compliance with applicable law. At
the expiration or sooner termination
of the Term of this Lease, Tenant
shall remove all of its exterior and
interior signage existing at the
Premises. Such signage and all
installations appurtenant thereto,
including panels and electrical
hook-ups, shall be removed and the
Premises restored to its condition
before the installation of such
signage. In the event Tenant shall
have failed or refused to remove any
such signage, and to restore the
Premises as required hereunder,
Landlord, after providing

15

 

	 	 	 
	 

	 	seven (7)
days notice to Tenant, may undertake
the removal and restoration at
Tenant’s sole cost and expense.
Tenant shall pay such removal and
restoration costs within ten (10)
days after receipt of Landlord’s
invoice therefor.
	 
	 	 
	Contractual Lien:

	 	All furnishings, fixtures (including
trade), personal property, equipment
and merchandise (“secured property”)
which have been, are, or may be, put
into the Premises either before or
after the Effective Date of the
Lease, whether exempt or not from
sale under execution and attachment
under the laws of the state where
the Premises are located, shall at
all times be subject to a first lien
and security interest in favor of
Landlord, for the purpose of
securing Tenant’s performance under
this Lease including, but not
limited to, the payment of all rent,
additional rent or other sums which
may become due to Landlord from
Tenant hereunder. Upon default or
breach of any covenants of this
Lease, Landlord shall have all
remedies available under the Uniform
Commercial Code enacted in the state
where the Premises are located
including, but not limited to, the
right to take possession of the
above mentioned secured property and
dispose of it by sale in a
commercially reasonably manner.
Tenant hereby agrees to sign a
Uniform Commercial Code Filing Form
similar to that attached hereto as
Exhibit C upon a request to do so by
the Landlord, for the purpose of
serving notice to third parties of
the security interest herein
granted, or failing to do so upon
request, does hereby appoint
Landlord or the Managing Agent as
tenant’s attorney-in-fact for said
purpose. In addition to any
statutory lien provided by law, this
provision is intended to provide a
contractual lien and security
interest in the secured property and
is intended by the parties to be
fully enforceable as between
themselves and all third parties in
all events, including but not
limited to, any event of bankruptcy
described herein. Tenant hereby
grants such lien and security
interest to Landlord and warrants
that there are no prior liens
existing against the secured
property. In accordance with said
lien herein granted by Tenant to
Landlord, tenant shall not remove
from the Premises any of said
secured property without the written
consent of Landlord (except for
normal repairs and replacements).
	 
	 	 
	Alterations:

	 	Tenant shall not make any
alterations, additions, improvements
or changes in the Premises without
in each instance first obtaining the
prior written consent of Landlord,
which consent shall not be
unreasonably withheld; provided that
Tenant may make in a first-class
manner such interior additions,
improvements and changes in the
Premises as Tenant may deem
necessary or desirable in connection
with operation of its retail store
in the Premises so long as such
alterations, additions, improvements
and changes are non-structural and
do not interfere with or otherwise
affect any heating, ventilating, air
conditioning, plumbing, security,
fire detection and protection or
utility systems except those
installed by Tenant or exclusively
serving the Premises. All such
permitted alterations, additions,
improvements and changes in the
Premises shall be at Tenant’s
expense and shall conform to all
specifications set forth in Exhibit
b and comply with all insurance
requirements and with applicable
governmental laws, and shall conform
to all specifications set forth in
Exhibit B and comply with all
insurance requirements and with
applicable governmental laws,
statutes, ordinances, rules and
regulations. Tenant shall be
responsible for and shall pay to
Landlord, as additional rent, the
entire amount of any real estate
taxes attributable to any
alterations, additions or
improvements made by Tenant pursuant
to this Section. All such
alterations, additions, improvements
and changes shall become upon
completion the property of the
Landlord, unless otherwise agreed to
in writing by the Landlord.
	 
	 	 
	Loss and Damage to Tenant’s Property

	 	Landlord shall not be liable for any
damages to property of Tenant or of
others located on the Premises, or
for the loss or damage to any
property of Tenant or of others by
theft or otherwise. All property of
tenant kept or stored on the
Premises shall be so kept or stored
by the risk of Tenant only, and
Tenant shall hold Landlord harmless
from any claims arising out of
damage to the same, including
subrogation claims by Tenant’s
insurance carrier, unless such
damage shall be caused by the
willful act or gross neglect of the
Landlord.

SECTION 12 Condemnation

	 	 	 
	All of Premises Taken:

	 	If the whole of the Premises shall
be taken or condemned either
permanently or temporarily for any
public or quasi-public use or
purpose by any competent authority
in appropriation proceedings or by
any right of eminent domain or by
agreement or conveyance in lieu
thereof (each of the foregoing being
hereinafter referred to as
“Condemnation”), this Lease shall
terminate as of the day before the
date of such taking, and Tenant
shall pay rent and perform all of
its other obligations under this
Lease up to such date with a
proportionate refund by Landlord of
any rent which shall have been paid
in advance for periods subsequent to
such date.

16

 

	 	 	 
	Less Than All of Premises Taken:

	 	If less than all but more than
twenty-five percent of the Leasable
Space in the Premises is taken by
Condemnation, or if (regardless of
the percentage of Leasable Space in
the Premises which is taken) the
remainder of the Premises cannot be
used for Tenant’s continued use or
occupancy for Tenant’s business, in
the reasonable judgment of Landlord,
then in either such event Landlord
or Tenant shall each have the right
to terminate this Lease upon notice
to the other party within sixty days
after possession is taken by such
Condemnation. If this Lease is so
terminated, it shall terminate as of
the day before the day of such
taking, and Tenant shall pay rent
and perform all of its other
obligations under this Lease up to
such date with a proportionate
refund by Landlord of any rent which
shall have been paid in advance for
periods subsequent to such date. If
this Lease is not so terminated, it
shall terminate only with respect to
the parts of the Premises so taken
as of the date possession shall be
taken by such authority, and Tenant
shall pay rent up to such date with
a proportionate refund by Landlord
of any rent which shall have been
paid in advance for periods
subsequent to such date.
Thereafter, the Minimum Rent and
Estimated Charges shall be reduced
in direct proportion to the amount
of Leasable Space of the Premises
taken, and Landlord agrees, at
Landlord’s cost and expense, as soon
as reasonably possible to restore
the remainder of the Premises to a
complete unit of similar quality and
character as the condemnation award
received by Landlord (less all
expenses, costs and legal fees
incurred by Landlord in connection
with such award) multiplied by a
fraction the numerator of which is
the number of square feet of
Leasable Space in the Premises so
taken and the denominator of which
is the number of square feet of
Leasable Space in the Shopping
Center so taken will allow.
	 
	 	 
	Shopping Center Taken:

	 	If any part of the Shopping Center
is taken by Condemnation so as to
render, in Landlord’s sole judgment,
the remainder unsuitable for use as
a retail shopping center, Landlord
shall have the right to terminate
this Lease upon notice to Tenant
within 120 days after possession is
taken by such Condemnation. If
Landlord so terminates this Lease,
it shall terminate as of the day
before the day of such taking, by
the condemning authority, and Tenant
shall pay rent and perform all of
its other obligations under this
Lease up to such date with a
proportionate refund by Landlord of
any rent which shall have been paid
in advance for periods subsequent to
such date.
	 
	 	 
	Ownership of Award:

	 	As between Landlord and Tenant, all
damages for any Condemnation of all
or any part of the Shopping Center,
including without limitation all
damages as compensation for
diminution in value of the
leasehold, reversion and fee of the
Premises, and the Tenant
Improvements, shall belong to the
Landlord without any deduction
therefrom for any present or future
estate of Tenant, and Tenant hereby
assigns to Landlord all its right,
title and interest to any such
award. Although all damages in the
event of any Condemnation are to
belong to Landlord, whether such
damages are awarded as compensation
for diminution in value of the
leasehold, reversion or fee of the
Premises, or the Tenant
Improvements, Tenant shall have the
right to claim and recover from the
condemning authority, but not from
Landlord, such compensation as may
be separately awarded or recoverable
by Tenant in Tenant’s business by
reason of the Condemnation and for
or on account of any cost or loss
which Tenant might incur in removing
Tenant’s merchandise, furniture and
fixtures, provided that the effect
of such award is not to reduce the
award otherwise payable to Landlord.

SECTION 13 Insurance

	 	 	 
	Insurance to be Provided by Tenant:

	 	Tenant shall maintain throughout the
Term, at its expense, insurance of
the following character: (a)
casualty insurance against loss or
damage by fire and other risks from
time to time included under
“extended coverage” policies with
endorsements for vandalism and
malicious mischief, in the amount of
the full replacement cost of all
Tenant Improvements, furniture,
trade fixtures, equipment,
merchandise and all other items of
Tenant’s property on the Premises;
(b) insurance against loss or damage
to plate glass in or on the
Premises; (c) business interruption
insurance insuring that the monthly
Minimum Rent and all other payments
due under this Lease will be paid
for a period of up to one year if
the Premises are destroyed or
rendered inaccessible by a risk
insured under (a) above; (d) if the
Permitted uses include sale and/or
serving of alcoholic beverages,
insurance covering any claims
arising under applicable law
relating to said uses which could be
asserted against Landlord, Tenant or
the Premises; (e) worker’s
compensation insurance in amounts
required by applicable law covering
all personnel employed in connection
with any work done on or about the
Premises; (f) a policy of
comprehensive, all risk public
liability insurance insuring
Landlord and Tenant against any
liability arising out of the
ownership, use, occupancy or
maintenance of the Premises and all
areas appurtenant thereto with
initial basic limits of not less
than $500,000 for injury or death of
one person in any one accident or
occurrence and with basic limits of
not less than $1,000,000 for injury
or death of more than one person in
any one accident or occurrence.
Such

17

 

	 	 	 
	 

	 	insurance shall further
initially insure Landlord and Tenant
against liability for property
damage of not less than $100,000 and
not less than $100,000 for fire
legal liability; (g) such other
insurance on the Premises in such
amounts and against such other
insurable hazards which at the time
are commonly obtained in the case of
property similar to the Premises.
In addition, Tenant shall maintain
throughout the Term, as its expense,
a standard umbrella insurance policy
with initial limits of $2,000,000.
The limit of any of the insurance
required by this Section shall not
limit the liability of Tenant.
Tenant may provide this insurance
under a blanket policy, provided
that said insurance shall have a
Landlord’s protective liability
endorsement attached thereto and
otherwise strictly complies with all
other terms and conditions in this
Lease. Any such blanket policy must
also contain an endorsement which
(i) identifies with specificity the
particular address of the Premise as
being covered under the blanket
policy; (ii) provides minimum
guaranteed coverage amounts per
occurrence as provided herein for
the Premises; and (iii) expressly
waives any pro-rata distribution
requirement contained in such
blanket policy (if any) covering the
Premises. The limits of all
insurance required herein shall be
increased from time to time to
reflect the increase in the consumer
price index and as required by good
business practice.
	 
	 	 
	General Insurance Requirements:

	 	Each policy of insurance referred to
in the preceding paragraph shall be
issued by companies authorized to
issue such insurance in the state
where the Premises are located and
which maintain an A.B. Best Company,
Inc. rating of A-, X or better,
shall name Landlord, including its
agent and other parties designated
by Landlord, as additional insured
as their interests may appear
(ATIMA) with respect to all
liability (including umbrella)
policies and as “loss payees” under
all property coverages, and shall be
written as a primary policy which
contains agreement by the insurer
that it will not cancel or fail to
renew or amend such policy or reduce
the coverage thereunder except
after thirty days’ prior written
notice to Landlord and that any loss
otherwise payable thereunder shall
be payable notwithstanding any act
or negligence of Tenant which might,
absent such agreement, result in a
forfeiture of all or part of such
insurance payment and
notwithstanding (a) the occupation
or use of the Premises for purposes
more hazardous than permitted by the
terms of such policy; (b) any
foreclosure or other action or
proceeding taken by any mortgagee of
the Premises; or (c) any change in
title of ownership of the Premises.
On or prior to the Commencement
Date, Tenant shall deliver to
Landlord certificates of the
insurers, evidencing all of the
insurance which is required to be
maintained by Tenant hereunder
together with evidence of the
payment of all premium therefor, and
Tenant shall, within thirty days
prior to the expiration of any such
insurance, deliver other
certificates of the insurers
evidencing the renewal or
replacement of such insurance
together with evidence of the
payment of all premiums therefor.
Should Tenant fail to maintain or
renew any insurance provided for in
this Section, or to pay the premium
therefor, or to deliver to Landlord
any of such certificates, then and
in any of said events, Landlord, at
its option, but without obligation
to do so, may procure such
insurance, and any sums so expended
by Landlord (together with
Landlord’s reasonable administrative
expense in procuring such insurance)
shall be additional rent hereunder
and shall be paid by Tenant to
Landlord on the first day of the
month next following the date on
which such expenditure is made by
Landlord. If Tenant fails to
furnish Landlord with a copy of
certificate of any insurance policy
required to be furnished by Tenant
to Landlord when due, and such
failure continues for ten (10) days
after written notice from Landlord,
Landlord may assess and collect a
minimum administrative fee of Ten
and No/100 Dollars ($10.00) for each
day said policy or certificate has
not been received in the office of
Landlord at the close of each
business day and such fee shall be
considered as additional rent
hereunder and shall be in addition
to all other remedies hereunder.
	 
	 	 
	Waiver of Claims:

	 	Landlord and Landlord’s agent and
employers shall not be liable for
and Tenant waives all claims for
damages to person or property
sustained by Tenant or any party
claiming through Tenant resulting
from any accident or occurrence in
or upon the Premises, the building
of which they shall be a part, or
the Shopping Center, including but
not limited to such claims for
damage resulting from: (i) any
equipment or appurtenances becoming
out of repair; (ii) Landlord’s
failure to keep the Shopping Center,
said building of the Premises in
repair; (iii) injury done or
occasioned by wind, settling, earth
movement or other natural causes;
(iv) any defect in or failure of
plumbing, heating, or air
conditioning equipment, electric
wiring of installation thereof, gas,
water, steam pipes, stairs, porches,
railings or walks; (v) broker glass,
the backing up of any water or sewer
pipe or downspout; the bursting,
leaking or running of any tank, tub,
washstand, water closet, waste or
water pipe, drain or any other pipe
or tank through the roof, skylight,
trapdoor, stairs, walks, Common Area
or any other place upon or near such
building or the Premises or
otherwise; (vii) the failing of any
fixtures, plaster, stucco or the
like; and (viii) any act,
commission, or negligence of
co-tenants or of other persons or
occupants of the Shopping Center.

18

 

SECTION 14 Damage or Destruction

	 	 	 
	Destruction of Premises:

	 	In the event that the Premises are
totally or partially damaged or
destroyed or destroyed by fire or
other casualty or occurrence covered
by insurance, the damage shall be
repaired and the Premises restored
to the same condition as they were
in immediately before such damage or
destruction by Landlord at
Landlord’s expense to the extent of
insurance recovery. If such damage
results from a cause not insured, or
the cost of repair of restoration
exceeds the amount of insurance
proceeds received by Landlord and
available for restoration of the
Premises, Landlord may elect to
either repair or restore the
Premises or to terminate this Lease
upon giving notice of such election
in writing to Tenant within thirty
days after the occurrence of the
event causing the damage; provided
that if Landlord elects to terminate
this Lease, Tenant may, within
thirty days after receiving
Landlord’s notice to terminate,
elect to pay to Landlord at the time
Tenant notifies Landlord of such
election the difference between the
amount of insurance proceeds and the
cost of repair and restoration, in
which case Landlord shall repair and
restore the Premises as aforesaid
and shall provide Tenant with
satisfactory evidence that all sums
contributed by Tenant as provided in
this Section have been expended by
Landlord in paying the cost of such
repair and restoration; provided
further that if Tenant does not give
Landlord notice of such election,
this Lease shall terminate upon the
expiration and said thirty-day
period. If Landlord is required or
elects to rebuild as herein
provided, Landlord shall rebuild
with due diligence and in any event
within 270 days after the casualty
(subject to causes of the type set
forth in Section 4 and delays in the
adjustment of insurance) only that
part of the Premises originally
provided by Landlord at its expense
pursuant hereto, and Landlord shall
have no responsibility to rebuild or
restore any portion of the Premises
constructed by Tenant at its
expense. If the casualty or the
repairing or rebuilding shall render
the Premises untenantable in whole
or in part, a proportionate
abatement of the Minimum Rent shall
be allowed from the date when the
damage occurred until the date when
the Premises have been restored by
Landlord, said proportion to be
computed on the basis of the
relation which the square foot
leasable area of the portion of the
Premises rendered untenantable and
not occupied by Tenant bears to the
aggregate square foot leasable area
of the Premises.
	 
	 	 
	Destruction of Shopping Center:

	 	In the event that fifty percent
(50%) or more of the Leasable Space
of the buildings in the Shopping
Center of which the Premises are a
part shall be damaged or destroyed
by fire or other cause,
notwithstanding that the Premises
may be unaffected by such fire or
other cause, Landlord may terminate
this Lease and the tenancy hereby
created by giving to Tenant thirty
days’ prior written notice of
Landlord’s election to terminate,
which notice shall be given, if at
all, within the sixty (60) days
following the date of said
occurrence.

SECTON 15 Assignment, Subletting and Encumbrance

	 	 	 
	Assignment and Subletting:

	 	Tenant has the right to assign this
Lease or any interest therein to any
affiliate of Dover Saddlery, Inc.
without the necessity of obtaining
written consent of the Landlord.
Tenant shall not assign this Lease
to any interest therein, whether
voluntarily, involuntarily or by
operation of law, or sublet the
Premises or any portion thereof,
without the prior written consent of
Landlord, which consent may be
granted or withheld in the sole
discretion of Landlord, and no
permitted assignment or subletting
shall relieve Tenant of Tenant’s
covenants and agreements hereunder.
The consent of Landlord to any one
assignment pursuant hereto shall not
be deemed to be a waiver of the
provisions of this Section with
respect to any subsequent
assignments or subleases. Each such
permitted sublease shall expressly
be made subject to the provisions of
this Lease. If Tenant assigns any
of its rights and interests under
this Lease, the assignee under such
assignment shall expressly assume
all of the obligations of Tenant
hereunder in a written instrument
satisfactory to Landlord at the time
of such assignment. No assignment
or sublease shall impose any
obligations on Landlord or otherwise
affect any of the rights of Landlord
under this Lease nor shall it affect
or reduce any of the obligations of
Tenant hereunder, and all such
obligations shall continue in full
effect as obligations of a principal
and not as obligations of a
guarantor or surety to the same
extent as though no assignment of
subletting had been made. In the
event Tenant shall assign this Lease
or sublease the Premises for rent or
other consideration in excess of the
rent payable hereunder, Landlord
shall receive all such excess rent
or other consideration as additional
rent hereunder. The assignee or
sublessee shall be required to make
all payments due to Landlord and
Landlord shall thereafter, in a
prompt manner, remit to Tenant any
amounts that may be due Tenant.
Tenant shall, concurrently with the
execution and delivery of any such
permitted assignment or sublease,
deliver a duplicate original thereof

19

 

	 	 	 
	 

	 	to Landlord. A change in the
beneficial or record ownership of
any class of capital stock of
Tenant, a transfer of partnership
interests of the beneficial interest
in Tenant and a sale of
substantially all of the merchandise
on the Premises to one purchaser
shall be treated as and deemed to be
an event of assignment of this Lease
within the foregoing provisions of
this Section, if the effect of same
shall be to result in a change in
management or control of Tenant
which shall be subject to the terms
hereof. The Tenant shall pay
Landlord a minimum administrative
fee of Five Hundred and No/100
Dollars ($500.00) plus reasonable
attorney’s fees for each proposed
sublease or assignment of this
Lease. Upon any sublease or
assignment by Tenant or its
successor(s) which is not approved
by Landlord, the Landlord shall have
the right to unilaterally terminate
this Lease.
	 
	 	 
	Criteria for Assignment and
Subletting:

	 	The Landlord has retained the prior
right of consent to proposed
assignment or sublease for several
substantial business and equity
reasons which were considerations
for this Lease, including, without
limitation, the fact that the
success and continuation thereof of
the Shopping Center is directly
related to the use and operation of
each particular store in the concept
of the overall and integrated
merchandising scheme of the Shopping
Center, the obligations of Landlord
owed to mortgagees, major tenants,
other nearby shopping centers and
the public; the direct economic
benefits to be derived to Landlord
in the form of Percentage Rent based
upon Gross Sales; and the reputation
and expertise of Tenant. In
evaluating and determining whether
or not to consent to a requested
assignment or sublease of the
Premises by Tenant, Landlord must be
satisfied in its sole reasonable
determination that the criteria
elements set forth above must
continue to be satisfied and the
Landlord must receive adequate
assurance of (i) the financial
condition and stability of the
proposed assignee, sublessee or
subtenant (“assignee”); (ii) the
reputation and expertise of the
assignee; (iii) the ability and
likelihood of payment by assignee of
all rents and other amounts due
hereunder; (iv) assignee’s ability
including the expectation of
Percentage Rate in amounts no less
than that previously received from
Tenant and expected to be received
in the future based upon increased
reasonable sales projection, and
such other assurances as Landlord
requires.
	 
	 	 
	Encumbrance:

	 	Neither this Lease nor the Term
shall be mortgaged, pledged or
encumbered by Tenant, nor shall
Tenant mortgage, pledge or encumber
the interest of Tenant in and to any
sublease of the Premises or the
rental payable thereunder, without
the prior written consent of
Landlord, which consent may be
granted or withheld in the sole
discretion of Landlord, and Tenant
shall not allow or permit any
transfer of this Lease or any
interest hereunder by operation of
law. Any such mortgage, pledge,
encumbrance, sublease, assignment or
transfer made in violation of this
Section shall be void.

SECTION 16 Default

	 	 	 
	Events of Default:

	 	Any of the following occurrences or acts shall constitute an event of default under this Lease:
	 
	 	 
	 

	 	(a) If Tenant, at any time during Term, shall (i) fail to make any payment of rent, additional
rent or other sum herein required to be paid by Tenant for a period of five (5) days after
delivery by Landlord of written notice to Tenant that any such payment has become due; or (ii)
fail to pay rent, additional rent or other sums herein required to be paid by Tenant when due
on two or more occasions during any twelve-month period; or (iii) fail to cure, immediately
after notice from Landlord, any hazardous condition which Tenant has created or suffered in
violation of law or this Lease; or (iv) fail to observe or perform any of the covenants in
respect to assignment, subletting and encumbrance set forth in Section 15; or (v) fail to
remove any liens attached to the Premises for a period of ten (10) days after notice by
Landlord; or (vi) fail to observe or perform any other provision hereof for thirty days after
Landlord shall have delivered to Tenant written notice of such failure provided that in the
case of any default referred to in this clause (vi) which cannot be cured by the payment of
money and cannot with diligence be cured within such thirty-day period, if Tenant shall
commence, to cure the same within such thirty-day period and thereafter shall prosecute the
curing of same with diligence and continuity, then the time within which such failure may be
cured shall be extended for such period not to exceed sixty days as may be necessary to
complete the curing of the same with diligence and continuity; or
	 
	 	 
	 

	 	(b) to the full extent permissible under the Bankruptcy Reform Act of 1978, or any successor
thereto, (i) if Tenant or any Guarantor shall file a petition in bankruptcy or for
reorganization or for an arrangement pursuant to any present or future federal or state
bankruptcy law or under any similar federal or state law, or shall to be adjudicated a
bankrupt or insolvent or shall make an assignment for the benefit of its creditors or shall
admit in writing its inability to pay its debts generally as thy become due, or if a petition
or answer

20

 

	 	 	 
	 

	 	proposing the adjudication of Tenant or any Guarantor as a bankrupt or its
reorganization under any present or future federal or state bankruptcy law or any similar
federal or state law shall be filed in any court and such petition or answer shall not be
discharged or denied within thirty days after the filing thereof; or (ii) if a receiver,
trustee or liquidator of Tenant or any Guarantor of all or substantially all of the assets of
Tenant or any Guarantor of the Premises or any portion thereof shall be appointed in any
proceeding brought by or against Tenant or any Guarantor and shall not be discharged within
thirty days after such appointment, or if Tenant or any Guarantor shall consent to or
acquiesce in such appointment; or

	 	 	 
	 

	 	(c) if the Tenant, without prior notice and Landlord’s consent, transfers a substantial part
of Tenant’s furnishings, fixtures, merchandise, equipment, operations, business or personnel
from Premises, or is in the process of so transferring, the Tenant shall be deemed to have
abandoned the Premises, or to be in the process of abandoning the Premises, and in either
case, in addition to all remedies under this Section 16, Landlord shall have the right to take
any lawful action to preserve its security, including, but not limited to, the implementation
of the remedies set forth in Sections 11 and 16 of this Lease immediately and without notice;
or
	 
	 	 
	 

	 	(d) if Tenant fails to carry on its business at the Premises for a period of five consecutive
business days; or
	 
	 	 
	 

	 	(e) if Tenant fails to take possession of the Premises within ten (10) days after possession
is tendered by Landlord, or fails to submit plans or other information regarding the Tenant
improvements for Landlord’s approval or to commence and complete construction of the Tenant
Improvements to be constructed by Tenant when and as required by the provisions of this Lease
and open its business therein promptly upon such completion.
	 
	 	 
	Right to Terminate:

	 	If an event of default shall have occurred, or with the passage of time or the giving of
notice would have occurred, Landlord shall have the right at its election, then or at any time
thereafter, to give Tenant written notice of Landlord’s election to terminate this Lease on a
date specified in such notice. Upon the giving of such notice, this Lease and estate hereby
granted shall expire and terminate on such date as fully and completely and with the same
effect as if such date were the date hereinbefore fixed for the expiration of the Term, and
all rights of the Tenant hereunder shall expire and terminate, but Tenant shall remain liable
as hereinafter provided. In the event the Tenant files any bankruptcy proceeding, or any
bankruptcy proceeding is filed against the Tenant under the laws of the United States, the
Tenant shall elect (and shall make every reasonable effort to cause the Trustee to elect)
within ten days of the entry of the Order of Relief whether to accept or reject the terms of
this Lease and perform the same.
	 
	 	 
	Right of Re-Entry:

	 	If any event of default shall have occurred, or with the passage of time or the giving of
notice would have occurred, Landlord shall have the immediate right, whether or not this Lease
shall have been terminated pursuant to this Section 16, to re-enter and repossess the Premises
or any part thereof by force, summary proceedings, ejectment or otherwise with the right to
remove all persons and property therefrom. Landlord shall be under no liability for or by
reason of any such entry, repossession or removal. No such re-entry or taking of possession
of the Premises by Landlord shall be construed as an election of Landlord’s part to terminate
this Lease unless a written notice of such election be given to Tenant pursuant to this
Section 16 or unless the termination of this Lease be decreed by a court of competent
jurisdiction.
	 
	 	 
	Right to Relet:

	 	At any time or from time to time after the repossession of the Premises or any part thereof
pursuant to this Section 16, whether or not this Lease shall have been terminated pursuant to
this Section 16, Landlord may (but shall be under to obligation to) relet the Premises or any
other part thereof for the account of Tenant, in the name of Tenant or landlord or otherwise,
without notice to Tenant, for such term or terms (which may be greater or less than the which
period would otherwise have constituted the balance of the Term) and on such conditions (which
may include concessions or free rent) and for uses as Landlord, in its absolute discretion,
and determine, and Landlord may collect and receive any rents payable by reason of such
reletting. Landlord shall not be responsible or liable for any failure to collect any rent
due upon such reletting.
	 
	 	 
	Tenant to Remain
Liable:

	 	No expiration or termination of this Lease pursuant to this Section 16, by operation of law or
otherwise, and no repossession of the Premises or any part thereof pursuant to this Section 16
or otherwise, and no reletting of the Premises or any part thereof pursuant to or any part
thereof pursuant to this Section 16, shall relieve Tenant of its liabilities and obligations
hereunder, all of which shall survive such expiration, termination, repossession or reletting.

21

 

	 	 	 
	Current Damages:

	 	In the event of any expiration or termination of this Lease or repossession of the Premises or
any part thereof by reason of the occurrence of an event of default, Tenant will pay to
Landlord the rent, additional rent and other sums required to be paid by the Tenant for the
period to and including the date of such expiration, termination or repossession, and,
thereafter until the end of what would have been the Term in the absence of such expiration,
termination or repossession, and whether or not the Premises or any part thereof shall have
been relet, Tenant shall be liable to Landlord for, and shall pay to Landlord, as liquidated
and agreed current damages the rent, additional rent and other sums which would be payable
under this Lease by Tenant in the absence of such expiration, termination or repossession,
less the net proceeds, if any, of any reletting effected for the account of Tenant pursuant to
this Section 16, after deducting from such proceeds all of Landlord’s expenses reasonably
incurred in connection with such reletting (including, without limitation, all repossession
costs, brokerage commissions, legal expenses, attorney’s fees, employee expenses, alteration
costs and expenses of preparation for such reletting). Tenant will pay such current damages
on the days on which rent would have been payable under this Lease in the absence of such
expiration, termination or repossession, and Landlord shall be entitled to recover the same
from Tenant on each such day.
	 
	 	 
	Final Damages:

	 	At any time after any such expiration or termination of this Lease or repossession of the
Premises or any part thereof by reason of the occurrence of an event of default, whether or
not Landlord shall have collected ant current damages pursuant to this Section 16, Landlord
shall be entitled to recover from Tenant, and Tenant will pay to Landlord on demand, as and
for liquidated and agreed final damages for Tenant’s default and in lieu of all current
damages beyond the date of such demand (it being agreed that it would be impracticable or
extremely difficult to fix the actual damages), a lump sum payment equal to the excess, if
any, of (a) the rent, additional rent and other sums which would be payable under this Lease
from the date of such demand (or, if it be earlier, the date to which Tenant shall have
satisfied in full its obligations under this Section 16 to pay current damages) for what would
be the then unexpired Term in the absence of such expiration, termination or repossession,
discounted to present worth at an assumed interest rate of 5% per annum, compounded annually
over (b) the then net rental value of the Premises discounted to present worth at an assumed
interest rate of 5% per annum, compounded annually for the same period. Rental value shall be
established by reference to the terms and conditions upon which Landlord relets the Premises
if such reletting is accomplished within a reasonable period of time after such expiration,
termination or repossession, and otherwise established on the basis of Landlord’s estimated
and assumptions of fact regarding market and other relevant circumstances, which shall govern
unless shown to be erroneous by a court of competent jurisdiction. If any statute or rule of
law shall validly limit the amount of such liquidated final damages to less than the amount
above agreed upon, Landlord shall be entitled to the maximum amount allowable under such
statute or rule of law.
	 
	 	 
	Event of Bankruptcy
Defined:

	 	An “Event of Bankruptcy” means filing of a voluntary petition by Tenant, or the entry of an
order for relief against Tenant, under Chapter 7, 11, or 13 of the Bankruptcy Code (or the
conversion to Chapter 11 or 13 proceeding of a proceeding that is filed by or against Tenant
under any other chapter of the Bankruptcy Code). The parties hereto agree that the following
provisions of this section are and shall be deemed to be commercially reasonable.
	 
	 	 
	Assumption of Lease:

	 	If an Event of Bankruptcy occurs, the trustee of Tenant’s bankruptcy estate, or Tenant as
debtor-in-possession, may assume the Lease, and may subsequently assign the Lease, only if it:
	 

	 	(i) files a timely motion to assume in the appropriate court; (ii) cures all monetary defaults
within 10 days of date of assumption and nonmonetary defaults within 60 days; (iii)
compensates Landlord for all pecuniary losses as a result of the default of Tenant, trustee or
debtor-in-possession; (iv) provides Landlord with Adequate Assurance of Future Performance as
defined herein within 60 days after the date of the filing of the voluntary petition, the
entry of the order for relief or the date of conversion (or such additional time as a court of
competent jurisdiction may grant, for cause, upon a motion made within the original 60-day
period); and (v) delivers to Landlord a written statement that the conditions described herein
have been satisfied.
	 
	 	 
	Adequate Assurance:

	 	(a) For purposes only of Assumption of Lease above and in addition to any other requirements
under the bankruptcy Code, any future federal bankruptcy law and applicable case law,
“Adequate Assurance” means at least entering an order segregating sufficient cash to pay
Landlord as described above, and granting Landlord a valid first lien and security interest in
a form acceptable to Landlord, in Tenant’s property or bankruptcy estate in order to secure
the trustee’s or debtor-in-possession’s obligations to cure defaults as described herein.

22

 

	 	 	 
	 

	 	(b) Adequate Assurance of Future Performance – For purposes only of Assumption of the Lease
provisions above, and in addition to any other requirements under the Bankruptcy Code, any
future federal bankruptcy law and applicable case law, “Adequate Assurance of Future
Performance” means at least: (i) the trustee or debtor-in-possession depositing with Landlord,
as security for the timely payment of rent and other monetary obligations, an amount equal to
the amount of two (2) months’ Minimum Rent and one-sixth (1/6) of Tenant’s annual obligation
under the Lease for the immediately proceeding twelve (12) months for Common Area Maintenance
costs, Real Estate Tax payments, insurance costs, promotional funds and similar charges; (ii)
the trustee or the debtor-in-possession providing adequate assurance of the source of the rent
and other consideration due under the Lease; (iii) the trustee or the debtor-in-possession
providing adequate assurance that the Percentage Rent due under the Lease will not decline
substantially; and (iv) Tenant’s bankrupt estate and the trustee or debtor-in-possession
providing adequate assurance that the bankrupt estate (and any successor after the conclusion
of the Tenant’s bankruptcy proceedings) will continue to have sufficient unencumbered assets
after the payment of all secured obligations and administrative expenses to assure Landlord
that the bankruptcy estate (and any successor after the conclusion of Tenant’s bankruptcy
proceedings) will have sufficient funds to fulfill tenant’s obligations under the Lease and to
keep the Premises stocked with Merchandise and properly staffed with sufficient employees to
conduct a fully-operational, actively promoted business on the Premises, and as set forth in
the Lease.
	 
	 	 
	Assignment of Lease
after Event of
Bankruptcy:

	 	(a) General – If the trustee or the debtor-in-possession assumes the Lease under Assumption of
Lease above and applicable bankruptcy law, it may assign its interest in this Lease only if
the proposed assignee first provides Landlord with Adequate Assurance of Future Performance of
Assignee (see subparagraph (b) below) of all of Tenant’s obligations under the Lease and if
Landlord determines, in the exercise of its reasonable business judgment, that the assignment
of the Lease will not (i) breach any other lease, mortgage, financing agreement, or other
agreement relating to the Shopping Center by which Landlord is bound (and Landlord is not
required to obtain consents or waivers from any third party required under any lease,
mortgage, financing agreement, or other agreement by which Landlord is bound); or (ii) disrupt
the tenant mix of the Shopping Center or any other attempt by Landlord to provide a specific
variety of retail stores therein that, in landlord’s reasonable business judgment, would be
most beneficial to all of the tenants of the Shopping Center and would enhance its image,
reputation, and profitability.

(b) Adequate Assurance of Future Performance of Assignee – For purposes only of subparagraph
(a) above, and in addition to any other requirements under the Bankruptcy Code, any future
federal bankruptcy law and applicable case law, “Adequate Assurance of Future Performance of
Assignee” means at least the satisfaction of the following conditions: (i) the proposed
assignee submitting a current financial statement, audited by a certified public accountant,
that shows a net worth and working capital in amounts determined in the reasonable business
judgment of Landlord to be sufficient to assure the future performance by the assignee of
Tenant’s obligation under the Lease; (ii) if requested by Landlord in the exercise of its
reasonable business judgment, the proposed assignee obtaining a guarantee (in form and
substance satisfactory to Landlord) from one or more persons who satisfy Landlord’s standards
of credit worthiest; and (iii) the proposed assignee submitting written evidence, satisfactory
to Landlord in the exercise of its reasonable business judgment, of substantial retailing
experience in shopping centers of comparable size to the Shopping Center and in the sale of
merchandise and services permitted under the Lease.
	 
	 	 
	Rights Cumulative 

Non-Waiver:

	 	No right or remedy herein conferred upon or reserved to Landlord or Tenant is intended to be
exclusive of any other right or remedy, and each and every right and remedy shall be
cumulative and in addition to any other right or remedy given hereunder or now and hereafter
existing at law or in equity or by statute. The failure of Landlord or Tenant to insist at
any time upon the strict performance of any covenant or agreement or to exercise any option,
right, power or remedy contained in this Lease shall not be construed as a waiver or
relinquishment thereof for the future. The receipt by Landlord of any rent, additional rent
or any other sum payable hereunder with knowledge of the breach of any covenant or agreement
contained in this Lease shall not be deemed a waiver of such breach, and no waiver of any
provision of this Lease shall be deemed to have been made unless expressed in writing and
signed by Landlord or Tenant. In addition to other remedies provided in this Lease, Landlord
or Tenant shall be entitled, to the extent permitted by applicable law, to injunctive relief
in case of the violation, or attempted or threatened violation, of any of the covenants,
agreements, conditions or provisions of this Lease, or to a decree compelling performance of
this Lease, or to any other remedy allowed to Landlord or Tenant at law or in equity.
	 
	 	 
	Legal Expenses:

	 	In the event Tenant shall be in default in the performance of any of its obligations under
this Lease, or with the passage of time or the giving of notice would be in default, and an
action shall be brought for the

23

 

	 	 	 
	 

	 	enforcement thereof in which it shall be finally and with no
further appeal determined that Tenant was in default, the Tenant shall pay to Landlord all
attorney’s fees and litigation expense incurred or paid by Landlord in connection therewith.
In the event Landlord shall, without fault on its part, be made a party to any litigation
commenced against tenant, if Tenant, at its expense, shall fail to provide Landlord with
counsel approved by Landlord, tenant shall pay as additional rent all costs and attorney’s
fees incurred or paid by Landlord in connection with such litigation or proposed litigation.
	 
	 	 
	Landlord’s Right to
Cure:

	 	Landlord may, but shall not be obligated to, cure any default by Tenant after complying with
the notice provisions herein set forth (but such notice provisions shall not apply in the case
of an emergency), and whenever Landlord so elects, all costs and expenses paid or incurred by
Landlord in curing such default, including without limitation reasonable attorney’s fees,
shall be considered as additional rent due on demand with interest as provided in Section 3.
	 
	 	 
	Default by Landlord:

	 	Landlord shall not be in default unless Landlord fails to perform obligations required of
Landlord within a reasonable time, but in no event earlier than thirty (30) days after
written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust
covering the Premises whose name and address shall have theretofore been furnished to Tenant
in writing, specifying wherein Landlord has failed to perform such obligation; provided,
however, that if the nature of Landlord’s obligation is such that more than thirty (30) days
are required for performance then Landlord shall not be in default if Landlord commences
performance within such thirty (30) day period and thereafter diligently prosecutes the same
to completion. In no event shall Tenant have the right to terminate this Lease as a result of
Landlord’s default and Tenant’s remedies shall be limited to actual damages and in no event
shall Landlord ever have any liability or responsibility whatever for any consequential or
indirect damages, whether proximately or remotely related to a default by Landlord. The
Landlord shall be liable for the performance of its obligations hereunder only to the extent
of Landlord’s equity in the Premises and the respective owner or partners of Landlord, their
heirs, personal representatives, successors and assigns, shall not be personally liable.
	 
	 	 
	 

	 	Landlord’s default shall be waived by Tenant if Tenant fails to provide Landlord with written
notice of such default within fifteen (15) days of such failure by Landlord to perform any
obligations required of Landlord within this Lease.
	 
	 	 
	Mitigation of
Damages:

	 	(a) Commercially Reasonable Efforts. Both Landlord and Tenant shall each use commercially
reasonable efforts to mitigate any damages resulting from a default of the other party under
this Lease.
	 
	 	 
	 

	 	(b) Criteria for Substitute Tenant. Landlord’s obligation to mitigate damages after a default
by Tenant under this Lease that results in Landlord regaining possession of all or part of the
Premises shall be satisfied in full if Landlord undertakes to lease the Premises to another
tenant (a “Substitute Tenant”) in accordance with the following criteria: (i) Landlord shall
have no obligation to entertain negotiations with any other prospective tenants for the
Premises until Landlord obtains full and complete possession of the Premises including,
without limitation, the final and unappealable legal right to re-let the Premises free of any
claim of Tenant; (ii) Landlord shall not be obligated to offer the Premises to any prospective
tenant when other premises in the Shopping Center suitable for that prospective tenant’s use
are currently available, or will be available within the next six months; (iii) Landlord shall
not be obligated to lease the Premises to a Substitute Tenant for a rental less than the
current fair market rental then prevailing for similar retail space in comparable shopping
centers in the same market area as the Shopping Center; (iv) Landlord shall not be obligated
to enter into a new lease under terms and conditions that are unacceptable to Landlord under
the Landlord’s then current leasing policies for comparable space in the Shopping Center; (v)
Landlord shall not be obligated to enter into a lease with any proposed Substitute Tenant that
does not have, in Landlord’s reasonable opinion, sufficient financial resources or operating
experience to operate the Premises in a first-class manner; (vi) Landlord shall not be
required to expend any amount of money to specially advertise, alter, remodel, or otherwise
make the Premises suitable for use by a Substitute Tenant unless Tenant pays any such sum to
Landlord in advance of such actions (which payment shall not be in lieu of any damages or
other sums to which Landlord may be entitled to as a result of Tenant’s default under this
Lease); or Landlord, in Landlord’s sole discretion, determines that any such expenditure is
financially justified in connection with entering into any lease with such Substitute Tenant;
(vii) Landlord shall not be obligated to enter into a lease with any Substitute Tenant whose
use would: (a) disrupt the tenant mix or balance of the Shopping Center; (b) violate any
restriction, covenant or requirement contained in the lease of another

24

 

	 	 	 
	 

	 	tenant of the Shopping
Center; (c) adversely affect the reputation of the Shopping Center; or (d) be incompatible
with the operation of the Shopping Center as a first-class shopping center.
	 
	 	 
	 

	 	(c) Mitigation Obligation Deemed Satisfied. Upon compliance with the above criteria
regarding the reletting of the Premises after a default by Tenant, Landlord shall be deemed to
have fully satisfied Landlord’s obligation to mitigate damages under this Lease and under any
law or judicial ruling in effect on the date of this Lease or at the time of Tenant’s default;
and Tenant waives and releases, to the fullest extent legally permissible, any right to assert
in any action by Landlord to enforce the terms of this lease, any defense, counterclaim, or
rights of setoff or recoupment respecting the mitigation of damages by Landlord, unless and to
the extent Landlord maliciously or in bad faith fails to act in accordance with the
requirements of this clause.
	 
	 	 
	 

	 	(d) Tenant’s Mitigation Responsibility. Tenant’s rights to seek damages from Landlord as a
result of a default by Landlord, if allowed under this Lease, shall be conditioned on Tenant
taking all actions reasonably required, under the circumstances, to minimize any loss or
damage to Tenant’s property or business, or to any of Tenant’s officers, employees, agents,
invitees, or other third parties that may be caused by any such default of Landlord.

SECTION 17 Estoppel Certificates, Subordination, Mortgagee Protection

	 	 	 
	Estoppel Certificate:

	 	Within ten (10) days after request
therefor by Landlord, Tenant agrees
to execute and deliver a certificate
in the form presented by Landlord to
any proposed mortgagee or purchaser
of the Premises, or to Landlord,
certifying (if such be the case) to
matters requested by Landlord
including without limitation the
following: (a) that Tenant is in
full and complete possession of the
Premises, such possession having
been delivered by Landlord or its
predecessor and accepted by Tenant;
(b) that any improvements required
to be furnished by Landlord by the
terms of this Lese have been
completed in all respects to the
satisfaction of the Tenant; (c) that
this Lease is in full force and
effect and has not been amended,
modified, supplemented or superseded
except as specifically noted; (d)
that there is no existing default on
the part of Landlord in the
performance of any covenant,
agreement or condition contained in
this Lease to be performed by
Landlord; (e) that the Tenant does
not have any actual or pending claim
against the Landlord; (f) that no
rents or other charges have been
prepaid by Tenant; and (g) that the
addressee of said certificate may
rely on the representations therein
made; and certifying as to the dates
of commencement and termination of
the Term, the date on which rents
commenced to accrue under this
Lease, and the date through which
rents and other charges hereunder
have been paid. Failure of Tenant
to execute and deliver the requested
certificate shall constitute an
event of default and Tenant agrees
to pay to Landlord as liquidated
damages (and in addition to all
remedies available to Landlord under
this Lease, at law or in equity)
$500.00 per day for each day Tenant
fails to so deliver such certificate
to Landlord after the expiration of
the ten (10) day limit. Further, if
Tenant fails to execute any such
certificate within said ten (10) day
period, Tenant hereby irrevocably
appoints Landlord as its
attorney-in-fact, to execute such
instrument in Tenant’s name.
	 
	 	 
	Subordination/ Superiority

	 	The rights and interests of Tenant
under this Lease shall be subject
and subordinate to any mortgage,
trust deed or deed of trust that is
or hereafter may be placed upon the
Shopping Center, or any part thereof
containing the Premises and to any
and all advances to be made
thereunder and to the interest
thereon and all renewals,
amendments, modifications,
replacements and extensions thereof,
if the mortgagee or trustee or
secured party named in such
mortgage, trust deed or deed of
trust shall elect to subject and
subordinate the rights and interests
of Tenant under this Lease to the
lien of its mortgage, trust deed or
deed of trust and shall agree by
instrument in writing to recognize
this Lease in the event of
foreclosure, if and so long as
Tenant is not in default hereunder.
Any mortgagee or trustee of the
Shopping Center or any part thereof
containing the Premises may elect to
give certain rights and interests of
Tenant under this Lease priority
over the lien of its mortgage, trust
deed or deed of trust. In the event
of either such election and upon
notification by such mortgagee or
trustee of that effect, the rights
and interests of Tenant under this
Lease shall be deemed to be
subordinate to or to have priority
over, as the case may be, the lien
of said mortgage, trust deed, or
deed of trust whether this Lease is
dated prior to or subsequent to the
date of said mortgage or trust deed.
Tenant shall, within ten (10) days
following the request of Landlord or
such secured party, execute and
deliver whatever instruments may be
required for such purpose. Failure
of Tenant to execute and deliver
such instruments shall constitute an
event of default and Tenant agrees
to

25

 

	 	 	 
	 

	 	pay to Landlord as liquidated
damages (and in addition to all
remedies available to Landlord under
this Lease, at law or in equity)
$500.00 per day for each day Tenant
fails to so deliver such instruments
to Landlord after the expiration of
the ten (10) day limit. Further, if
Tenant fails to execute any such
instruments within said ten (10) day
period, Tenant hereby irrevocably
appoints Landlord as its
attorney-in-fact, to execute such
instruments in Tenant’s name.
	 
	 	 
	Mortgagee Protection:

	 	Tenant agrees to give any mortgagee
or trustee of trust deed or deed of
trust (“Mortgagee”) of the Shopping
Center, by registered or certified
mail, given at the same time Tenant
gives notice to Landlord, a copy of
any notice of default served upon
the Landlord by Tenant, provided
that prior to such notice Tenant has
been notified in writing (by way of
service on Tenant of a copy of an
Assignment of Rents and Leases, or
otherwise) of the address of such
Mortgagee. Tenant further agrees
that if Landlord shall have failed
to cure such default within thirty
(30) days after such notice to
Landlord (or if such default cannot
be cured or corrected within that
time, then such additional time as
may be necessary if Landlord has
commenced within such thirty (30)
days and is diligently pursuing the
remedies or steps necessary to cure
or correct such default), then the
Mortgagee shall have an additional
thirty (30) days within which to
cure or correct such default (or if
such default cannot be cured or
corrected within that time, then
such additional time as may be
necessary if such Mortgagee has
commenced within such thirty (30)
days and is diligently pursuing the
remedies or steps necessary to cure
or correct such default, including
without litigation commencement of
foreclosure proceedings if necessary
to effect such a cure). Tenant
shall have no right to, and shall
not, terminate this Lease on account
of Landlord’s default and Tenant’s
remedies shall be as set forth in
Section 16. Should any prospective
mortgagee require a modification or
modifications of this Lease, which
modification or modifications will
not cause an increased cost or
expense to Tenant or in any other
way substantially change the rights
and obligations of Tenant hereunder,
then, and in such event, Tenant
agrees that this Lease may be so
modified and agrees to promptly
execute whatever documents are
required therefor and failure to do
so shall constitute an event of
default.

SECTION 18 Surrender and Holdover

	 	 	 
	Surrender:

	 	Upon the expiration or earlier termination of this Lease,
Tenant shall peaceably leave and surrender the Premises to
Landlord broom-clean and otherwise in the condition in which
the Premises are required to be maintained by the terms of this
Lease. Tenant shall surrender all keys for the Premises to
Landlord at the place then fixed for the payment of rent and
shall inform Landlord of all combinations on locks, safes, and
vaults, if any, in the Premises. Tenant shall, at its expense,
remove from the Premises on or prior to such expiration or
earlier termination all furnishings, fixtures and equipment
situated thereon (including all exterior and interior signs)
which are not the property of Landlord as provided in Section
11, and Tenant shall, at its expense, on or prior to such
expiration or earlier termination, repair any damage caused by
such removal. Any property not so removed shall become the
property of Landlord, and Landlord may thereafter cause such
property to be removed from the Premises and disposed of, but
the cost of any such removal and disposition and the cost of
repairing any damage caused by such removal shall be borne by
Tenant.
	 
	 	 
	Holdover:

	 	Should the Tenant or any party claiming under Tenant hold over
in possession at the expiration of the Term, such holding over
shall not be deemed to extend the Term or renew this Lease, and
such holding over shall be an unlawful detainer and tenant or
such parties shall be subject to immediate eviction and
removal. Tenant shall pay upon demand to Landlord during any
period while Tenant shall hold the Premises after expiration of
the term, as liquidated damages, a sum equal to double the
highest monthly rate of Minimum Rent in effect during the term
or any extension thereof, plus double the Percentage Rent (at
the rate to be determined as set forth in Section 3 hereof),
and Tenant shall also pay all damages, consequential as well as
direct, sustained by Landlord by reason of such holding over.

SECTION 19 Security Deposit

	 	 	 
	Security Deposit:

	 	The Security Deposit, if any, specified in Section 1
shall be held by Landlord as security for the full and
faithful performance by Tenant of each and every term,
covenant and condition of this Lease on the part of
Tenant to be observed and performed, and Landlord shall
have no liability to pay interest thereon unless
required by law nor shall Landlord be required to keep
the Security Deposit separate from its general funds.
Landlord’s obligations with respect to the Security
Deposit are those of a debtor and not a

26

 

	 	 	 
	 

	 	trustee. If any
rent or additional rent herein reserved or any other
sums payable by Tenant hereunder shall be overdue and
unpaid or should Landlord make payments on behalf of
Tenant, or should Tenant fail to perform any of the
terms of this Lease, then Landlord may, at its option,
and without prejudice to any other remedy which Landlord
may have on account thereof, apply the Security Deposit
or so much thereof as may be necessary to compensate
Landlord toward the payment of the rents or other sums
due from Tenant, or towards any loss, damage or expense
sustained by Landlord resulting from such default on the
part of Tenant; and in such event Tenant shall forthwith
upon demand restore the Security Deposit to its original
amount, and the sum required to so restore the Security
Deposit shall be additional rent hereunder. In the
event Tenant shall have fully and faithfully complied
with all of the terms, covenants and conditions of this
Lease, the Security Deposit shall be returned in full to
Tenant within thirty days following the end of the Term
or earlier termination of this Lease. In the event that
any bankruptcy, insolvency, reorganization or other
creditor-debtor proceedings shall be instituted by or
against Tenant or its successors or assigns, Landlord
may apply the Security Deposit first to the payment of
any rent, additional rent and other amounts due Landlord
hereunder, and the balance, if any, of the Security
Deposit may be retained by Landlord in partial
liquidation of Landlord’s damages. Landlord may deliver
the Security Deposit to the purchaser of Landlord’s
interest in the Premises, in the event that such
interest is sold, and Landlord shall thereupon be
discharged from any further liability with respect to
the Security Deposit. Any interest earned on the
Security Deposit shall belong to Landlord.

SECTION 20 Promotion Fund and Advertising

	 	 	 
	Promotion Funds:

	 	Tenant shall become and remain
during the Term of this Lease, a
member in good standing in a
Promotion Fund now or hereafter
established by the Landlord for the
purpose of advertising, public
relations, sales promotions, and
other activities promoting the
Shopping Center. Tenant will
contribute each month towards the
Promotional Fund, a sum in the
amount specified in Section 1.
Tenant agrees to pay the Promotional
Fund contribution in advance on the
first day of each month. The charge
shall increase/decrease annually
effective the first January of each
year following the first full year
of operation by a percentage equal
to the percentage change in the U.S.
Department of Labor Consumer Price
Index for all urban consumers. Such
increase/decrease may be waived in
whole or in part at the discretion
of Landlord.
	 
	 	 
	 

	 	Tenant agrees to pay to the
Promotional Fund as an Initial
Assessment, in addition to the
foregoing charge, a sum in the
amount specified in Section 1, for
the promotional expense incurred in
connection with the opening and/or
ongoing marketing effort of the
Shopping Center, and its store.
Said sum shall be paid within thirty
(30) days after a statement is
rendered by Landlord. Tenant shall
pay such Initial Assessment
regardless of whether Tenant opens
on the opening date of the Shopping
Center or on a subsequent date.
Landlord will contribute to the Fund
an amount equal to 25% of the total
of Tenant’s cash contribution as
collected.
	 
	 	 
	 

	 	Landlord shall have the exclusive
right to hire a promotional
director, secretary and other
personnel, which, in Landlord’s sole
judgment, are required to carry out
the purposes of the Promotional
Fund. All such personnel shall be
under the exclusive control and
supervision of Landlord, who shall
have the sole authority to employ
and discharge such personnel. The
Promotional Fund shall reimburse
Landlord for all expenses incurred
by it on behalf of the promotional
programs of the Shopping Center,
including any salary and all
reasonable expenses incurred by the
promotional director and other
promotional personnel. Financial
and operating statements of the
Promotional Fund shall be made
available for Tenant’s review upon
written request. A violation of the
provisions in this Section 20
(including non-payment of dues)
shall constitute and event of
default of this Lease.
	 
	 	 
	Advertising:

	 	Unless required by law, Tenant shall
not change its Trade Name/Trade
Style without the written permission
of Landlord, which Landlord shall
not unreasonably withhold or delay.
Tenant, in all advertising, shall
identify that the Premises are
located in the Shopping Center by
specifically setting forth the name
of the Shopping Center in all
written and oral advertising engaged
in by Tenant concerning the
Premises.
	 
	 	 
	Solicitation of Business:

	 	Tenant and Tenant’s employees and
agents shall not solicit business in
the Common Areas, nor shall Tenant
place any handbills or other
advertising matter in or on
automobiles parked in the parking
area or in the Common Areas.

27

 

SECTION 21 – General Provisions

	 	 	 
	Successors:

	 	Subject to Section 15, all of the provisions hereof shall be binding upon and inure to
the benefit of the parties hereto and their respective heirs, legal representatives,
successors and assigns.
	 
	 	 
	No Option:

	 	The submission of this Lease for examination does not constitute an offer to enter into
a lease, and this Lease shall become effective only upon execution and delivery hereof
by Landlord and Tenant.
	 
	 	 
	No Joint Venture:

	 	The relationship of the parties is that of Landlord and Tenant only, and nothing in
this Lease shall be construed as creating a partnership, joint venture, principal-agent
or any other relationship. Except as expressly otherwise provided herein, neither
party shall have any right or power to create any expense or liability chargeable to
the other party.
	 
	 	 
	Broker:

	 	Tenant represents and warrants to Landlord that Tenant has not dealt with any broker or
finder entitled to any commission, fee or other compensation by reason of the execution
of this Lease except the Broker, if any, specified in Section 1, and Tenant agrees to
indemnify and hold Landlord harmless from any charge, liability or expense (including
attorney’s fees) Landlord may suffer, sustain or incur in respect to any claim for a
commission, fee or other compensation by a broker or finder claiming by, through or
under Tenant, other than Broker. Landlord will satisfy any obligation to Broker in
respect to this Lease.
	 
	 	 
	Financial and Other
Information:

	 	At the request of Landlord, Tenant shall, not later than ninety (90) days following the
close of each fiscal year of Tenant during the Term, furnish to Landlord a balance
sheet of Tenant as of the end of such fiscal year and a statement of income and expense
for the fiscal year then ended together with an opinion of an Independent certified
public accountant of recognized standing to the effect that said financial statements
have been prepared in conformity with generally accepted accounting principles
consistently applied and fairly present the financial condition and results of
operations of Tenant as of and for the periods covered.

Tenant warrants that financial and other information provided and to be provided by
Tenant to landlord (and which will be relied upon by Landlord) relating to this Lease
does not and will not contain any statement which at the time and in the light of
circumstances under which it is made, is false or misleading with respect to any
material fact, or omits to state any material fact (which is known, or should have been
known) necessary in order to make any statement contained therein not false or
misleading in any material respect.
	 
	 	 
	Headings and
Captions:

	 	The headings and captions contained in this Lease are inserted for convenience of
reference only, and are not to be deemed part of or to be used in construing this
Lease.
	 
	 	 
	Use of Pronoun,
Joint and Several
Liability:

	 	The necessary grammatical changes required to make the provisions of this Lease apply
in the plural sense where there is more than one Tenant and to either corporations,
associations, partnerships, or individuals, males or females, shall in all instances be
assured as though in each case fully expressed. If there be more than one Tenant, the
liability of all such parties for compliance with and performances of the terms and
covenants of this Lease shall be joint and several.
	 
	 	 
	Partial Invalidity

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

	 	Any provision of this Lease which obligates the Landlord or the Tenant to pay an amount
or perform an obligation before the commencement of the Term or after the expiration of
the Term shall be binding and enforceable notwithstanding that payment or performance
is not within the Term, and the same shall survive.
	 
	 	 
	Definition of
Landlord,
Exculpation:

	 	The term Landlord as used in this Lease, so far as the covenants or obligations on the
part of Landlord are concerned, shall be limited to mean and include only the owner or
owners of the Premises at the time in question. In event of any transfer or transfers
of title thereto, Landlord named herein (and in case of any subsequent transfer or
conveyance, the then grantor) shall be automatically relieved from the performance of
any covenants or obligations of Landlord accruing after said transfer date. It is
expressly understood and agreed by and between the parties hereto, anything herein to
the contrary notwithstanding, that all of the representations, warranties, covenants,
undertakings and agreements herein made on the part of Landlord while in form
purporting to be the representations,

28

 

	 	 	 
	 

	 	warranties, undertakings and agreements of
Landlord are nevertheless each and every one of them made and intended, not as personal
representations, warranties, covenants, undertakings and agreements by Landlord or for
the purpose or with the intention of binding Landlord personally, but are made and
intended for the purpose only of subjecting Landlord’s interest in the Premises to the
terms of this Lease and for no other purpose whatsoever, and that in the case of
default hereunder by Landlord, the Tenant shall look solely to the interest of Landlord
in the Premises for satisfaction of any obligation of Landlord to Tenant.
	 
	 	 
	Time of Essence:

	 	Time is of the essence of this Lease, and all provisions herein relating thereto shall
be strictly construed.
	 
	 	 
	Accord and
Satisfaction:

	 	No payment by Tenant or receipt by Landlord of a lesser amount than the rent or other
amounts herein stipulated shall be deemed to be other than on account of the stipulated
rent and amounts due, nor shall any endorsement or statement on any check or any letter
accompanying any check or payment thereof be deemed an accord and satisfaction, and
Landlord may accept such check of payment without prejudice to Landlord’s right to
recover the balance of such amounts or pursue any other remedy provided in this Lease.
	 
	 	 
	Waiver of Jury
Trial:

	 	Neither Landlord nor Tenant shall seek a jury trial in any lawsuit, proceeding,
counterclaim or any other litigation based upon or arising out of the Lease, this
instrument or any related instrument, any collateral of the dealings or the
relationship between or among the parties, or any of them. No party will seek to
consolidate any such action, in which a jury has been waived, with any other action in
which a jury trial cannot or has not been waived. There are no exceptions whatsoever
to this jury trial waiver. No party has in any way agreed with or represented to any
other party that the provisions of this paragraph will not be fully enforced in all
instances.
	 
	 	 
	Notices:

	 	All notices, demands, requests, consents, approvals and other instruments required or
permitted to be given pursuant to the terms of this Lease shall be deemed sufficiently
given or rendered if in writing and hand delivered, sent by registered or certified
mail, postage prepaid, return receipt required, or deposited with a recognized
overnight courier (such as United Parcel Service or Federal Express, e.g.), addressed
to Tenant at Tenant’s address or Landlord at Landlord’s address, as the case may be,
and any such notice shall be deemed to have been delivered on the date received,
refused or returned for insufficient address. Landlord and Tenant shall each have the
right from time to time to specify as its address for the purposes of this Lease any
other addresses in the United States of America upon three days’ notice thereon,
similarly given, to the other party.
	 
	 	 
	 

	 	Landlord’s Address: c/o Great Eastern Management Company, P.O. Box 5526,
Charlottesville, VA 22905-5528 (Physical Address: 2619 Hydraulic Road, Charlottesville,
VA 22901)
	 
	 	 
	 

	 	Tenant’s Address: Dover Saddlery Retail, Inc., 525 Great Road, Littleton, MA 01460

(Contact Name) Stephen Day (Telephone) 978-952-8062

I.R.S. Tax I.D. Number 20-4417762      Social Security Number N/A 

Organizational ID from the Virginia State Corporation Commission: F166762
	 
	 	 
	 

	 	Registered Agent in the Commonwealth of Virginia: Name CT Corporation 

Address: 4701 Cox Road, Suite 301, Glen Allen, VA 23060-6820      Telephone 804-217-7255

Rental Payment Address (if different from Landlord)
	 
	 	 
	Change in Domicile:

	 	Tenant and any Guarantor hereunder hereby acknowledge an affirmative duty to provide
Landlord with written notice of a change in domicile thirty (30) days in advance of any
such change. Change in domicile for this provision refers to the location requirements
for UCC filings which shall be one of the following: i) for an entity created by a
filing with a state, the entity’s location in that state; ii) for an entity not created
by filing, the entity’s location is the place of its chief executive officer; or iii)
for an individual, the person’s location is his/her principal residence. Failure of
Tenant to provide this notice shall estop Tenant or any person or entity ascertaining
claims on behalf of Tenant from raising the issue of location in any dispute concerning
the priority of a UCC filing involving Tenant and Landlord.
	 
	 	 
	Disclosure:

	 	CB Richard Ellis, Charlottesville, LLC represents the Landlord in this transaction.
The General Partner of the Landlord, Great Eastern Management Company (“Great
Eastern”), is a licensed real estate brokerage firm. Mr. Everett S. Hopkins, Jr., an
employee and officer of Great Eastern, holds an active real estate license. Mr.
Hopkins and Mrs. Dotty N. Hopkins, who is also employed by Great Eastern and holds an
active real estate license, are limited partners in a partnership which owns a limited
partnership interest in Landlord.

29

 

	 	 	 
	Entire Agreement:

	 	This Lease and the Exhibits, Riders, Addenda and Guaranty, if any, attached hereto and
forming a part hereof, set forth all the covenants, promises, agreements, conditions,
and understandings between Landlord and Tenant concerning the Premises, and there are
no covenants, promises, agreements, conditions or understandings, either oral or
written, between Landlord and Tenant concerning the Premises except those herein set
forth, Except as otherwise provided herein, no subsequent alteration, amendment,
change or addition to this Lease shall be binding upon Landlord or Tenant unless
reduced to writing and signed by them.
	 
	 	 
	Recordation:

	 	Tenant shall not record this Lease without the written consent of Landlord.
	 
	 	 
	Governing Law:

	 	This Lease shall be construed and enforced in accordance with the laws of the state
where the Premises are located.
	 
	 	 
	Corporate Tenants:

	 	In the event the Tenant hereunder is a corporation, the persons executing this Lease on
behalf of the Tenant hereby covenant and warrant that: (i) the Tenant is a duly
constituted corporation qualified to do business in the state in which the Shopping
Center is located; (ii) all Tenant’s franchise and corporate taxes have been paid to
date; (iii) all future forms, reports, fees and other documents necessary for Tenant to
comply with applicable laws will be filed by Tenant when due and such persons are duly
authorized by the governing body of such corporation to execute and deliver this Lease
on behalf of the corporation.

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

	 	 	 	 	 	 	 	 	 
	 	 	 	 	LANDLORD: Sequel Investors Limited Partnership, a

Virginia limited partnership

	 
	 	 	 	 	 	 	 	 
	ATTEST/WITNESS:	 	 	 	    By: Great Eastern Management Company, Agent
	 
	 	 	 	 	 	 	 	 
	/s/ Kristin P. Peura
 

	 	 
	 	By:
	 	/s/ E. Stephen Hopkins, Jr.
 

	 	 
	Title: Manager	 	 	 	 	 	Title: Vice President
	Date: 8-3-07	 	 	 	 	 	Date: 8-3-07
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	TENANT: Dover Saddlery Retail, Inc., a Massachusetts corporation
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Stephen L. Day
 

	 	 
	 	 	 	 	 	 	Title: President and CEO
	 	 	 	 	 	 	Date: 8-3-07

30

 

EXHIBIT A

SHOPPING CENTER SITE PLAN

31

 

EXHIBIT A-1

THE PREMISES

32

 

EXHIBIT B

NOTICE

This manual has been developed to assist and guide Tenant in the completion of its store
space in preparation for the commencement of business operations. The provisions of this manual
incorporate and expand upon various provisions of the Lease between the Landlord and Tenant and
Exhibit B and D thereto and is part of the Lease. Failure to comply with the provisions of this
Manual shall be considered a breach of the Lease and shall entitle Landlord to proceed under the
provisions of the Lease relating to Default by Tenant.

33

 

Developers/Owners

Great Eastern Management Company, Agent, P.O. Box 5526, Charlottesville, VA 22905-5526

Telephone (434) 296-4141      Fax (434) 293-5197

Architects/Design

Shank & Gray Architects, 510 E. Main Street, Charlottesville, V A 22901

Telephone (434) 295-013]      Fax (434) 295-0338

Architects/Inspection

Shank & Gray Architects, 510 E. Main Street, Charlottesville, V A 22901

Telephone (434) 295-013]      Fax (434) 295-0338

General Contractors & Approved Contractors for Tenant Improvements

Coleman-Adams Construction, Inc., Route 221 South, P.O. Box 368, Forest, VA 34551

Telephone (434) 525-4700

Great Eastern Management Company, Agent, P.O. Box 5526, Charlottesville, VA 22905-5526

E. Stephen Hopkins, Jr.      Telephone (434) 296-4141      Ext 37

			
	Note:	 	The architects and contractors listed on this page are approved for the project.
Tenants desiring to use another contractor or architect for interior construction must
obtain prior written consent of the Landlord. We recommend Great Eastern Management Company
for interior improvements as it will be doing the majority of the interior finishes and is
familiar with the provisions of this Manual.

Leasing

Great Eastern Management Company, Agent, P.O. Box 5526, Charlottesville, VA 22905-5526

Andrew Boninti            Telephone (434) 974-7377

Milton Realty Service Company, Inc., P.O. Box 4207, 7806 Timberlake Road, Lynchburg, VA 24502

George Lupton            Telephone (434) 455-2306

Management

Great Eastern Management Company, Agent, P.O. Box 5526, Charlottesville, VA 22905-5526

E. Stephen Hopkins, Jr.      Telephone (434) 296-4141      Ext 37

Promotional Fund

Great Eastern Management Company, Agent, P.O. Box 5526, Charlottesville, VA 22905-5526

Kristin P. Peura      Telephone (434) 296-4141      Ext 36

34

 

1. Landlord’s Work. The Tenant accepts the Premises “as-is.” Upon Tenant’s written request,
Landlord will reimburse Tenant $3,000.00 spent by Tenant for Tenant Finish Out Allowance for the
Premises (“Allowance”). Tenant must provide original receipts from its contractor(s) or material
supplier(s) in order to be reimbursed. Landlord will reimburse Tenant within twenty (20) days of
receipt of Tenant’s request, which shall be made after possession of the Premises occurs. In the
event this Lease is terminated for any reason prior to the end of the Term, Tenant shall promptly
reimburse Landlord, as additional rent, one thirty-sixth (1/36) of the Allowance times the number
of months remaining between the termination date and the end of the Term.

	2.	 	Tenant’s Work
	 
	 	 	Subject to Landlord’s prior written approval as outlined herein, Tenant may, at its expense,
construct within the Premises or furnish for the Premises:

	 	a.	 	deviations from standard storefront provided by Landlord.
	 
	 	b.	 	ceiling material, other than that provided by Landlord.
	 
	 	c.	 	wall material, other than that provided by Landlord.
	 
	 	d.	 	paint and interior decoration of store space.
	 
	 	e.	 	additional partitions.
	 
	 	f.	 	enclosing of columns.
	 
	 	g.	 	installation of all floor covering (no asbestos containing material is
permitted).
	 
	 	h.	 	the penetration and flashing of all roof openings, which work shall be
performed by the Landlord’s contractor at Tenant’s expense.
	 
	 	i.	 	lighting fixtures, including lamps not provided by Landlord.
Surface-mounted or suspended fluorescent lights are not permitted in sales area.
	 
	 	j.	 	all signs, including such marquee, canopy, door signs or other signs as
may be required by Landlord and in accordance with criteria as set forth in this
Manual.
	 
	 	k.	 	such fire extinguishers as required by Code and approved by the fire
preventions official having jurisdiction.
	 
	 	l.	 	install backflow preventor if required by an local jurisdiction.

	3.	 	Store Architects and Designers
	 
	 	 	Within ten (10) days after the date the Lease is fully executed by all parties, Tenant shall
identify to Landlord the licensed architect or interior designer engaged by the Tenant to
prepare its plans for the construction in the demised Premises by Tenant (herein “Tenant’s
Work”).
	 
	4.	 	The Tenant and its contractor are responsible for compliance with all local, state and
federal building code and all other applicable laws. It is strongly recommended that the
Tenant’s architect, designer and /or contractor consult with local building officials.
	 
	5.	 	Contractor
	 
	 	 	Before entering into a contract for construction, Tenant must become familiar with the
requirements of this Manual, all applicable local ordinances, the statewide building code,
and all applicable federal regulations included but not limited to ADA, OSHA, and
environmental requirements. Prior to commencement of construction, Tenant must notify
Landlord of the identity of the contractor(s) engaged for construction in

35

 

	 	 	the Premises. Contractors employed by Tenant will not be permitted to start construction
until all approvals required by this Manual are obtained and document submittals are
complete. Contracts for construction are solely between Tenant and its contractor(s). The
Landlord shall in no way be held liable for errors, omissions or performance by either
Tenant or its contractor(s).
	 
	6.	 	Drawing Submission Requirements
	 
	 	 	The following deadlines apply to the submission of Tenant space design and construction
drawings. The time sequence shall begin as of the date the Lease is fully executed by all
parties.

	 	a.	 	within 15 days — name, address, telephone number of the architect or interior
designer.
	 
	 	b.	 	within 20 days — two (2) complete sets of preliminary plans outlining
specifications with Tenant’s approval affixed.
	 
	 	c.	 	within 10 days of obtaining Landlord’s written approval of plans (as outlined
in 6. b. above) — four (4) complete sets of working drawings and specifications; two
(2) sets with Tenant’s approval affixed. If either preliminary drawings or working
drawings are disapproved upon initial submission, Tenant shall resubmit the modified
drawings and specifications within ten (10) days of each disapproval until drawings are
approved. When submitted, working drawings and specifications shall include:

	 	i.	 	detailed drawings and specifications of all work, including
plumbing and electrical installations (which shall be connected by Tenant to
utility systems furnished by Landlord).
	 
	 	ii.	 	complete detail of all parts which will affect the appearance
of the Premises and its architectural, mechanical and electrical components.
	 
	 	iii.	 	reflected ceiling plan, if changed or different from that
provided by Landlord.
	 
	 	iv.	 	all plans, sections and elevations drawn to appropriate scale.
	 
	 	v.	 	all dimensions, material, color, texture and specifications
(color chips shall also be included).
	 
	 	vi.	 	a stamp by an architect that has been approved by Landlord.
	 
	 	vii.	 	NOTE: SUPERIMPOSED LOADS, EITHER PLACED UPON OR HUNG FROM THE
ROOF STRUCTURE ARE NOT PERMITTED!

7. Additional Documentation Requirements

     Prior to commencement of construction, Tenant shall furnish to Landlord copies of the
following documents:

     a. A certificate signed and sealed by an architect registered in the State of Virginia and
approved by Landlord providing:

	 	i.	 	that all Tenant’s Work shown on the final working plans and
specifications is in conformance with all applicable laws and codes.
	 
	 	ii.	 	the total connected demand electrical load.
	 
	 	iii.	 	that nothing in the Tenant’s Work will adversely affect the
structural integrity of the building.

36

 

	 	iv.	 	that the HV AC design as provided by the Landlord or to be
constructed by the Tenant is sufficient to effectively heat and cool the
Premises considering all aspects of the space design and that the HV AC design
does not develop a negative pressure within the Premises.
	 
	 	v.	 	that the design of the Tenant space has been completed in
accordance with this Tenant Design Criteria Manual and the Lease.

	 	b.	 	A performance bond and labor and material payment bond or such other surety as
may be acceptable to Landlord naming the Tenant and Landlord as dual obligees. Said
bond shall be in the form of A.I.A. Document A-311 (latest edition) or such other form
as may be acceptable to Landlord and shall be in an amount equal to 100% of the value
of Tenant’s Work .
	 
	 	c.	 	Workers compensation coverage in accordance with local requirements.
	 
	 	d.	 	Builder’s risk insurance in the amount of the estimated cost of Tenant’s
improvements naming the Landlord as an additional insured party.
	 
	 	e.	 	Public liability insurance coverage naming the Landlord as an additional
insured with minimum limits as set forth in the Lease.
	 
	 	f.	 	Plans and specifications approved by Landlord and all other agencies having
jurisdiction.
	 
	 	g.	 	A building permit issued by the locality in which the construction is to occur
and any other permits required by local authorities, which shall be obtained at
Tenant’s expense.
	 
	 	h.	 	A business license for the contractor as required by the locality in which the
construction is to occur and/or the State of Virginia.
	 
	 	i.	 	The Landlord will issue a letter to Tenant authorizing the commencement of
construction within 10 days from receipt of all of the above.

	8.	 	Tenant’s Construction Procedures

	 	a.	 	Tenant will not commence construction until written authority has been obtained
from Landlord.
	 
	 	b.	 	Storage of materials and/or equipment is to be confined within the walls of the
Premises.
	 
	 	c.	 	All work shall be done in a first class and workmanlike manner, in accordance
with all governing regulations and codes, and none of the same shall damage or weaken
the building of which the Premises are a part.
	 
	 	d.	 	Tenant and Tenant’s contractor shall be responsible for removal of all trash,
rubbish and surplus material as frequently as necessary to keep the Premises free of
debris. It either fails to observe this requirement, Landlord may remove same and
charge Tenant for the cost of removal.
	 
	 	e.	 	Tenant’s contractors must coordinate their work with that of the Landlord’s
contractors and make certain that such work shall not interfere or conflict with
Landlord’s contractors in completion of the overall development.
	 
	 	f.	 	Landlord’s general contractor shall have the right, but not the obligation, to
establish reasonable rules and regulations governing Tenant and Tenant’s contractors
during construction period in order to insure that construction proceeds in a safe and
orderly manner and is in accordance with all governing rules and codes.
	 
	 	g.	 	In the event that Tenant’s Work is performed subsequent to the opening of any
anchor tenant(s) within the Shopping Center, Tenant shall cause its contractors to:

37

 

	 	i.	 	perform that portion of the construction which is noisy or may
otherwise disturb in any way the operation of the Shopping Center or its
tenants before 10:00 am or after 8:00 pm.
	 
	 	ii.	 	enclose the Premises so that the interior is not visible from
the front of the Shopping Center.
	 
	 	iii.	 	receive delivery of all material through the rear of the
Premises unless otherwise approved by Landlord.

	 	h.	 	Tenant shall fully comply with all environmental laws and guidelines at all
times, and assumes express liability therefore.

	9.	 	Documents to be Submitted upon Completion Of Construction Prior to Occupancy and/or
Commencement of Business.

	 	a.	 	A certificate of occupancy issued by the locality in which the Premises is
located.
	 
	 	b.	 	An architect’s affidavit that Tenant’s Work has been completed to Tenant’s
satisfaction and in strict accordance with the working drawings and Tenant’s
construction requirements.
	 
	 	c.	 	A General Contractor’s affidavit that it has fully completed Tenant’s Work in
accordance with the working plans and that all subcontractors, laborers and materials
for such work have been paid in full.
	 
	 	d.	 	A fully executed lease commencement agreement in the form provided by Landlord.

	10.	 	Sign Criteria

	 	a.	 	The content of all signs shall be limited to white (acrylite 048) letters
designating the store name only and shall contain no advertising devices, slogans,
symbols or marks other than logos crests or corporate shields universally used by
national or regional tenants on all signs. Logos, crests or corporate shield designs
must by submitted to Landlord for approval, which approval shall not be unreasonably
withheld provided that the proposed sign or symbol is compatible with the design intent
of the Shopping Center.
	 
	 	b.	 	The location, character, design, color and layout off all signs shall be
subject to Landlord’s written approval and no sign will be place in final position
without such approval.
	 
	 	c.	 	All signs must be professionally made, carry a V.L. approved label and be
constructed of individual neon lighted letters. The maximum letter height shall be 30”
unless a written exception is granted by Landlord. Each letter shall be fabricated from
22 gauge point grip steel with spot welded construction, be 4” deep and mounted on an
8” x 8” raceway and use 15 mm neon with 30 hertz normal power factor 120 volt
transformers.
	 
	 	d.	 	The provisions in Exhibit D shall further govern signage.

	11.	 	UTILITIES
	 
	 	 	All utilities (including but not limited to on-line computer service, telephone,
electricity, gas, cable, water and sewer) shall be in Tenant’s name if such utility
exclusively serves the Premises leased by Tenant, and Tenant shall make the necessary
arrangements with the utility company to establish service. In any circumstance in which the
cost for a utility is determined by the reading of a common meter which measures usage for
both Tenant’s Premises and other areas, Landlord shall make the arrangements to establish
service, and Tenant shall pay to Landlord, as provided in the Lease, Tenant’s pro rata share
of the cost of the utility which cost may include a service fee paid to Landlord.

38

 

EXHIBIT C

OPERATING HOURS

Tenant agrees to keep the Premises open as specified in Section 5 paragraph (b) of the Lease from
10 o’clock a.m. to 6 o’clock p.m., Monday through Friday; and from 10 o’clock a.m. to 5 o’clock
p.m. Saturday. Such minimum hours of operation are subject to change from time to time by Landlord
so long as any such change is applicable to substantially all tenants of the Shopping Center.

39

 

EXHIBIT D

SIGN CRITERIA

	A.	 	The advertising content of all signs shall be limited to individual letters designating
the store name only and shall contain no advertising devices, slogans, symbols or marks
other than logos, crests, or corporate seals universally used by national or regional
tenants on all signs. Logos, crests or corporate shield designs must be submitted to
Landlord for approval, which approval shall not be unreasonably withheld, provided that the
proposed sign or symbol is compatible with the design intent of the Shopping Center.
	 
	B.	 	The location, character, design, color and layout of all signs shall be subject to
Landlord’s written approval and no sign will be placed in final position without same.
	 
	C.	 	All signs must be professional made, carry a U.L. approved label and be constructed of
individual neon lit letters. The maximum letter height shall be 30” unless written
exception is granted by Landlord. Each letter shall be fabricated from 22-gauge point grip
steel with spot-welded construction, be 4” deep and mounted on an 8” by 8” raceway and use
15 mm. neon with 30 hertz normal power factor 120-volt transformers. Distance between tube
and sign fact shall be no less than 1/2 the distance between the rows of neon. Plastic
faces shall be 3/16” acrylic plastic. Exterior and interior of all letters shall be
painted white; returns shall be baked enamel (bronze). The raceway shall be painted to
match the color of the building. The following four letter styles will be acceptable.

	 	1.	 	Helvetica medium
	 
	 	2.	 	Script
	 
	 	3.	 	Optima semi-bold
	 
	 	4.	 	Goudy

	D.	 	Drawings submitted for approval by Landlord shall include:

	 	1.	 	dimensions of the sign as a whole and of each letter or symbol.
	 
	 	2.	 	type of illumination. All signs shall be lit from the interior unless
specific exception is granted by Landlord.
	 
	 	3.	 	necessary electrical requirements. All sign circuits shall be tied
into a clock-timer controlled from inside the premises to facilitate lighting of
signs at night until the time specified by Landlord.
	 
	 	4.	 	the name and/or stamp of the sigh contractor or sign company which
shall not be exposed to view.

	E.	 	The following are expressly prohibited:

	 	1.	 	Animation, moving signs or moving lights.
	 
	 	2.	 	Temporary signs, irrespective of the composition of the sign or
material used.
	 
	 	3.	 	Box or cabinet type signs or signs with formed plastic letters.
	 
	 	4.	 	Painted on or luminous letters.
	 
	 	5.	 	Back-lit signs or letters.
	 
	 	6.	 	Rooftop signs or banners or projection signs.
	 
	 	7.	 	Free-standing signs or sandwich board signs.
	 
	 	8.	 	Noise making devices, boxes, cabinets or frames.
	 
	 	9.	 	Wooden backed signs or letters.
	 
	 	10.	 	Signs above the roof line or on the roof.
	 
	 	11.	 	Pop rivet contraction of signs.

	F.	 	One sign is allowed per storefront unless there are two or more angled faces, such as a
corner storefront, in which case a second sign may be allowed, subject to Landlord’s
approval.
	 
	G.	 	There will be one authorized suspended sign under the canopy. All Tenants will be
required to install a flush-mounted over the store entry with letters 1” high. Design,
location and letter type shall be approved by Landlord.

40

 

	H.	 	In addition, Tenant shall purchase one sign from High Tech Signs in Charlottesville,
Virginia or other vendor designated by Landlord (call High Tech Signs at (434) 974-7900,
Address: 2165 Seminole Trail, Charlottesville, VA 22901 to order sign or with any
questions).

	 	1.	 	Each sign shall be oval shaped 8 inches high by 40 inches long made
from Dupont Lucite, Color BR 2418 (a medium brown).
	 
	 	2.	 	The store name, which shall be the “trading as” name in the lease,
(letters and numerals as appropriate) shall be written in Times Bold, using 2 m.m.
Arlon Cast #68 Beige (a beige color to match the drivit of the fascias).
	 
	 	3.	 	East side of each sign shall carry a reproduction of the shopping
center logo, located centrally along the length of the sign and rising vertically
from the lower edge of the sign to a height of 1.5 inches. The logo shall be Arlon
Vinyl Cal-Plus #11 Green.
	 
	 	4.	 	The sign shall have an oval border, one-half inch thick and of the same
beige vinyl as the store name.
	 
	 	5.	 	All sign requests and specifications shall be presented to the Landlord
in writing for approval prior to the installation of any sign.
	 
	 	6.	 	All work (including the manufacturing of the sign and the installation
thereof) shall be done by High Tech signs or other vendor designated by Landlord.
	 
	 	7.	 	In order to protect the beauty of the Shopping Center, no variations
from these guidelines will be permitted.

41

 

EXHIBIT I

Uniform Commercial Code Filing Form

42

 

EXHIBIT J

Heating, Ventilation, Air Conditioning Agreement

     This
document evidences an Agreement made as of the ___ day of                     2007, by and between
Dover Saddlery Retail, Inc., a Massachusetts corporation (“Tenant”) and (“HV AC Contractor”).

     For and in consideration of the mutual covenants contained herein, Tenant and HVAC Contractor
do hereby agree to the following services to be performed by HVAC Contractor at 242 Zan Rd.
(ABusiness Name@) Seminole Shopping Center, Charlottesville, VA.

     HVAC Contractor agrees to provide two precision tune-ups: one in April and the other one in
September of each year. There are to be (4) four filter cleanings or replacements, during each
precision tune-up and also during the months of December and July.

     The precision tune-up and professional cleaning services include the following:

	 	•	 	Clean condenser coil
	 
	 	•	 	Monitor refrigerant pressure
	 
	 	•	 	Clean evaporator coil
	 
	 	•	 	Clean condensate drains
	 
	 	•	 	Test starling capabilities
	 
	 	•	 	Apply algae treatment where indicated
	 
	 	•	 	Apply protective coating to outside unit
	 
	 	•	 	Oil fan motors where applicable
	 
	 	•	 	Adjust and clean blower components
	 
	 	•	 	Monitor voltage/amperage
	 
	 	•	 	Test for proper airflow rate
	 
	 	•	 	Tighten electrical connections
	 
	 	•	 	Lubricate moving parts where applicable
	 
	 	•	 	Replace/clean filters
	 
	 	•	 	Measure heating/cooling transfer capability
	 
	 	•	 	Calibrate thermostat
	 
	 	•	 	Test and adjust safety controls
	 
	 	•	 	Perform safety inspection on heat exchanger
	 
	 	•	 	Monitor flue draft
	 
	 	•	 	Monitor gas pressure and adjust gas valves as necessary
	 
	 	•	 	Clean and adjust burner/pilot assembly
	 
	 	•	 	Clean ignition assembly
	 
	 	•	 	Monitor fan and safety limit controls
	 
	 	•	 	Replace oil filter/nozzle as needed
	 
	 	•	 	Submit written reports

The following materials are to be furnished by the contractor:

	 	•	 	Disposable filters
	 
	 	•	 	Bearing Lubricants
	 
	 	•	 	Motor Lubricants
	 
	 	•	 	Coil cleaner

HV AC Contractor agrees to (a) furnish the skilled technicians required to carry out the terms of
this Agreement; (b) carry “Worker’s Compensation Insurance” together with such other insurance and
all licenses as are required by the Commonwealth of Virginia and the locality in which the work set
forth hereunder is to be performed; and (c) warrant the quality of its workmanship and the
materials used.

43

 

     HV AC Contractor agrees to provide the services described herein for the sum of $  per year.

GENERAL PROVISIONS:

	 	1.	 	This Agreement is limited to the terms hereof. Any extra service, parts,
materials, or special tools shall be furnished only after the parties hereto have
mutually agreed thereon and, if furnished, shall be invoiced as separate items.
	 
	 	2.	 	HVAC Contractor does not warrant the condition of the equipment at any time and
the parties hereto acknowledge that this Agreement does not cover the repair or
replacement of any equipment necessitated by ordinary wear and tear and the normal
operation of said equipment. It is understood that the aforesaid repair or replacement
shall be negotiated and invoiced separately from this Agreement.
	 
	 	3.	 	HVAC Contractor will not be responsible for items over which it has no control
such as water, thermostats controlled by other persons, vandalism, strikes, acts of
nature or government, or those acts normally excluded from standard liability insurance
policies.

DURATION OF AGREEMENT

This Agreement shall become effective on date of execution hereof and the term of this
Agreement shall be for one year from the date of execution. HV AC Contractor shall provide a
renewal notice to the Tenant thirty days prior to the expiration of this contract. Tenant
shall ensure that all terms and conditions of the HVAC provisions of he Lease which it has
signed with Sequel Investors Limited Partnership, a Virginia limited partnership are met.
(Landlord)

     In witness whereof the parties have executed this Agreement on the date indicated below their
signature.

	 	 	 	 	 	 	 
	 	 	HVAC CONTRACTOR	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Its:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	TENANT	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Its:
	 	 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:exv10w55

 

Exhibit 10.55

CENTER PAVILLION NORTH SHOPPING CENTER

SPACE # 7529 CAMPBELL ROAD, SUITE 306

TENANT DOVER SADDLERY RETAIL, INC.

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	SECTION 1:
	 	DEFINITIONS AND CERTAIN BASIC PROVISIONS.	 	 	1	 
	SECTION 2:
	 	GRANTING CLAUSE.	 	 	2	 
	SECTION 3:
	 	OCCUPANCY AND ACCEPTANCE OF PREMISES.	 	 	2	 
	SECTION 4:
	 	RENT.	 	 	3	 
	SECTION 5:
	 	INTENTIONALLY OMITTED.	 	 	3	 
	SECTION 6:
	 	COMMON AREAS.	 	 	3	 
	SECTION 7:
	 	USE AND CARE OF PREMISES.	 	 	4	 
	SECTION 8:
	 	MAINTENANCE AND REPAIR OF PREMISES.	 	 	5	 
	SECTION 9:
	 	ALTERATIONS.	 	 	5	 
	SECTION 10:
	 	LANDLORD'S RIGHT OF ACCESS; USE OF ROOF.	 	 	6	 
	SECTION 11:
	 	SIGNS; STORE FRONTS.	 	 	6	 
	SECTION 12:
	 	UTILITY SERVICE.	 	 	6	 
	SECTION 13:
	 	INTENTIONALLY OMITTED	 	 	7	 
	SECTION 14:
	 	INDEMNITY AND PUBLIC LIABILITY INSURANCE.	 	 	7	 
	SECTION 15:
	 	OTHER INSURANCE.	 	 	7	 
	SECTION 16:
	 	NON-LIABILITY FOR CERTAIN DAMAGE.	 	 	8	 
	SECTION 17:
	 	DAMAGE BY CASUALTY.	 	 	8	 
	SECTION 18:
	 	EMINENT DOMAIN.	 	 	9	 
	SECTION 19:
	 	ASSIGNMENT AND SUBLETTING.	 	 	9	 
	SECTION 20:
	 	REAL ESTATE TAXES.	 	 	10	 
	SECTION 21:
	 	DEFAULT BY TENANT AND REMEDIES.	 	 	10	 
	SECTION 22:
	 	INTENTIONALLY OMITTED.	 	 	13	 
	SECTION 23:
	 	BANKRUPTCY.	 	 	13	 
	SECTION 24:
	 	HOLDING OVER.	 	 	13	 
	SECTION 25:
	 	SUBORDINATION; ATTORNMENT; ESTOPPELS.	 	 	14	 
	SECTION 26:
	 	LIABILITY OF LANDLORD; SALE BY LANDLORD.	 	 	14	 
	SECTION 27:
	 	WARRANTIES AND REPRESENTATIONS.	 	 	14	 
	SECTION 28:
	 	TIMING.	 	 	14	 
	SECTION 29:
	 	ENTIRE AGREEMENT.	 	 	14	 
	SECTION 30:
	 	NOTICES.	 	 	14	 
	SECTION 31:
	 	MISCELLANEOUS.	 	 	15	 
	SECTION 32:
	 	INDEPENDENT CONTRACTOR.	 	 	15	 
	SECTION 33:
	 	“DTPA” WAIVER.	 	 	16	 
	SECTION 34:
	 	ADDITIONAL REPRESENTATIONS, WARRANTIES AND COVENANTS OF TENANT.	 	 	16	 
	SECTION 35:
	 	HAZARDOUS MATERIALS.	 	 	16	 
	 
	 	 	 	 	 	 
	EXHIBIT “A”: 
	 	SITE PLAN	 	 	 	 
	EXHIBIT “B”:
	 	LEGAL DESCRIPTION	 	 	 	 
	EXHIBIT “C”:
	 	IMPROVEMENTS	 	 	 	 
	EXHIBIT “D”:
	 	SIGN CRITERIA	 	 	 	 
	EXHIBIT “E”:
	 	POLICIES AND REGULATIONS	 	 	 	 
	EXHIBIT “F”:
	 	TENANTS MOVE OUT CHECK LIST	 	 	 	 
	EXHIBIT “G”:
	 	INTENTIONALLY OMITTED	 	 	 	 
	EXHIBIT “H”:
	 	EXCLUSIVES AND PROHIBITED USES	 	 	 	 
	EXHIBIT “I”:
	 	OPTION/S TO RENEW	 	 	 	 

 

 

SHOPPING CENTER LEASE AGREEMENT

STATE OF TEXAS

COUNTY OF DALLAS

     THIS
LEASE AGREEMENT is entered into this ___ day of ___, 2007 by and
between the Landlord and the Tenant hereinafter named.

SECTION 1:DEFINITIONS AND CERTAIN BASIC PROVISIONS.

	(a)	 	“Landlord”: Pavillion North, Ltd., a Texas limited partnership
	 
	(b)	 	Landlord’s Address: 7517 Campbell Road, #601, Dallas, TX 75248
	 
	(c)	 	“Tenant”: Dover Saddlery Retail, Inc.
	 
	(d)	 	Tenant’s Mailing Address: 525 Great Road, Littleton, MA 01460
	 
	(e)	 	Tenant’s Trade Name: Dover Saddlery
	 
	(f)	 	Tenant’s Address in Shopping Center: 7529 Campbell Road, Suite 306, Dallas, TX 75248
	 
	(g)	 	“Principal Agent”: The John Bowles Company-Mike Cagle
	 
	(h)	 	“Cooperating Agent”: NA
	 
	(i)	 	“Demised Premises”: Pavillion North Shopping Center (the “Shopping Center”) in the City of
Dallas, Dallas County, Texas, a store unit containing approximately 5,378 square feet
in area, being an irregular space of approximately  68 feet by 70 feet
(measured to the exterior of outside walls and to the center of interior walls), said premises
being shown and outlined on EXHIBIT “A”. With regard to EXHIBIT “A”, the parties
agree that the Exhibit is attached solely for the purpose of locating the Shopping Center and
the Demised Premises within the Shopping Center and that no representation, warranty, or
covenant is to be implied by any other information shown on the Exhibit (i.e. any information
as to buildings, tenants, or prospective tenants), and is subject to change at any time.
	 
	(j)	 	“Lease Term”: Commencing the earlier of sixty (60) days from the date Landlord tenders
delivery of the Demised Premises or when Tenant opens for business (the “Commencement Date”)
except as may be modified by exhibits which will be attached to this Lease if a building or
store unit is to be constructed for Tenant, and continuing for five (5) years and
zero (0) months; provided that if the Commencement Date is a date other than the first
day of a calendar month, the Lease Term shall be extended for said number of years and months
in addition to the remainder of the calendar month in which the Commencement Date occurs.
Tenant shall have two 5 year options to renew as described in detail on EXHIBIT “I”
attached hereto and made a part hereof.
	 
	(k)	 	“Minimum Guaranteed Rental” per month, payable in advance:

	 	 	 	 	 
	Months 2 – 24:

	 	$12.00/SF
	 	$5,378.00/Month
	Months 25 – 60:

	 	$12.35/SF
	 	$5,534.86/Month

	 	 	Tenant’s Minimum Guaranteed Rental (but not Common Area Maintenance, Taxes and Insurance
expenses) shall be abated for the first thirty (30) days of the Lease Term.
	 
	(l)	 	“Percentage Rental Rate”: N/A% Monthly Breakpoint: $N/A Yearly
Breakpoint: $N/A 
	 
	(m)	 	Initial estimated Common Area maintenance charge, as set forth in Section 6, payable in
advance and subject to adjustment as provided herein: A minimum of $739.48 per
month.
	 
	(n)	 	Initial estimated real estate tax charge, as set forth in Section 20, payable in advance and
subject to adjustment as provided herein: $1,286.24 per month.
	 
	(o)	 	Initial estimated charge for the cost of insurance obtained by Landlord, as set forth in
Section 15, payable in advance and subject to adjustment as provided herein: $85.15
per month.
	 
	(p)	 	“Prepaid Rental”: $2,110.87, being Tenant’s Minimum Guaranteed Rental and Tenant’s
share of the estimated Common Area maintenance charges, real estate taxes, insurance for the
1st month of the Lease Term, payable upon execution hereof.
	 
	(q)	 	Intentionally omitted.
	 
	(r)	 	Permitted use: Subject to the exclusives and prohibited uses as set forth on EXHIBIT
“H”, Tenant shall use the Demised Premises solely for the sale of equestrian riding
equipment, saddles, tack, riding apparel, barn and stable equipment and other equestrian
related items (the “Permitted Use”), and for no other use. With the exception of (i)
Marshall’s, or (ii) any other tenant, their successors and assigns, with a lease executed
prior to this Lease, during the term of this Lease including any extended term, Landlord, to
the extent that Landlord may lawfully do so, covenants and agrees that it will not directly
lease or rent any additional property within the Shopping Center to a tenant that sells
equestrian or equestrian related products. Notwithstanding the foregoing, Landlord will not
grant its consent to any sublease or assignment for any sublessee or assignee whose use of the
premises would be substantially similar to the Permitted Use.

1

 

	 	 	Except as provided below, Tenant shall not abandon, vacate or cease to actively operate its
business in the
Demised Premises. Notwithstanding the foregoing, in the event Tenant shall fail to actively
operate its business in the Demised Premises for more than ninety (90) consecutive days and
such failure is not due to casualty or repair, condemnation, remodeling or other cause beyond
Tenant’s control, Landlord shall have the right to (i) continue to accept Tenant’s payment of
Rent and allow Tenant to remain in possession of the Demised Premises or (ii) terminate this
Lease. In the event Landlord elects (ii) above, Tenant shall pay Landlord a termination
penalty (the “Termination Fee”) equal to the unamortized portion of the Additional Allowance
(hereinafter defined) based on amortization at 9% per annum over seven (7) years and Tenant
shall immediately surrender the Demised Premises to Landlord and be released from all
obligations under this Lease thereafter. The ninety (90) consecutive day period shall mean
that Tenant cannot cease business operations and resume operations for a brief time as a
means of preventing Landlord from exercising its termination right.

Each of the foregoing definitions and basic provisions shall be construed in conjunction with and
limited by the references thereto in the other provisions of this Lease.

SECTION 2: GRANTING CLAUSE.

	 	 	In consideration of the obligation of Tenant to pay rent as herein provided and in
consideration of the other terms, covenants and conditions hereof, to be kept, performed and
observed by Tenant, Landlord hereby demises and leases to Tenant, and Tenant hereby takes
from Landlord, the Demised Premises as described in Section 1(i), TO HAVE AND TO HOLD the
Demised Premises for the Lease Term specified in Section 1(j), all upon the terms and
conditions set forth in this Lease. NOTE: If this Lease provides for construction prior to
occupancy, refer to the appropriate exhibits attached hereto. In such case, this Section 2
shall be deemed modified to the extent inconsistent with such exhibits.

SECTION 3: OCCUPANCY AND ACCEPTANCE OF PREMISES.

	(a)	 	By occupying the Demised Premises, Tenant shall be deemed to have accepted the same and to
have acknowledged that the same comply fully with Landlord’s covenants and obligations
hereunder. Tenant accepts the Demised Premises and all buildings, fixtures, equipment and
other improvements of every kind and character included therein or situated thereon in “AS IS,
WHERE IS” condition and “WITH ALL FAULTS”. Landlord makes no warranty of any kind, express or
implied, with respect to the Demised Premises (without limitation, Landlord makes no warranty
as to the habitability, fitness or suitability of the Demised Premises for a particular
purpose).

	(b)	 	Tenant acknowledges that Tenant has inspected and approved the site (hereinafter referred to
as the “Site”) and the site plan (hereinafter referred to as the “Site Plan”) pursuant to
which is located the Demised Premises; provided, however, Landlord shall have the right to
modify the Site Plan at any time and from time to time where necessary in Landlord’s sole and
absolute discretion to provide for changes in the plan of development of the Site in such
manner as Landlord deems advisable. Notwithstanding the above, Landlord shall not allow a
“kiosk” on the sidewalk directly in front of the Demised Premises. Tenant, by occupying the
Demised Premises, shall be deemed to have acknowledged that Landlord has substantially
completed the construction of the shell of the Demised Premises and the Landlord’s Work (as
hereinafter defined) has been constructed to Tenant’s satisfaction.

	(c)	 	If this Lease is executed before the Demised Premises becomes vacant, or if any present
tenant or occupant of the Demised Premises holds over, and Landlord cannot acquire possession
of the Demised Premises prior to the Commencement Date of this Lease, as above defined,
Landlord shall not be deemed to be in default hereunder; and in such event Tenant agrees to
accept possession of the Demised Premises at such time as Landlord is able to tender the same.
If Landlord utilizes the provisions of this Section, Landlord will waive the payment of rent
covering any period prior to tender of possession of the Demised Premises to Tenant. If
Landlord does not provide possession of the Demised Premises within three (3) months following
execution of this Lease, Tenant shall have the option to cancel this Lease and receive
repayment of all prepaid rents.

	(d)	 	Whether or not this Lease provides for construction of improvements at the Demised Premises,
whether by Landlord or Tenant, the Lease Term shall commence upon the Commencement Date
specified in Section 1(j) above.

	(e)	 	This Lease shall be a binding contractual agreement effective upon the date of execution
hereof by both Landlord and Tenant, notwithstanding the later commencement of the Lease Term
of this Lease.

	(f)	 	Tenant agrees to participate in a joint opening of the Shopping Center if requested to do so
by Landlord.

	(g)	 	For the purposes of this Lease, “Landlord’s Work” comprises the construction or, if already
partially constructed, the completion of construction of the Demised Premises, the finish out
work (if any) to be carried out by Landlord in and/or to the Demised Premises, (all as
described in EXHIBIT “C”, and any work for which Landlord itself will contract, as
described in EXHIBIT “C”.

	(h)	 	Landlord may complete Landlord’s Work with such minor variations as Landlord may deem
advisable.

	(i)	 	Tenant shall have no right to enter or occupy the Demised Premises until the Demised Premises
are Ready for Occupancy. As used in this Lease, the term “Ready for Occupancy” means the date
upon which Landlord tenders delivery of the Demised Premises in compliance with the terms of
this Lease.

	(j)	 	If Landlord shall for any reason fail to substantially complete Landlord’s Work prior to the
scheduled completion date of Landlord’s Work, Landlord shall not be deemed to be in default
hereunder or otherwise liable in damages to Tenant, nor shall the Lease Term or any other
provision of this Lease be affected, save that if the Demised Premises are not Ready for
Occupancy within three (3) months following the scheduled completion date of Landlord’s Work,
for any reason other than Tenant’s default or failure, (in which event the period of three (3)
months shall be extended by the period of the delay resulting from such default or failure),
Tenant may at its option terminate this Lease by written notice to Landlord delivered within
thirty (30) days following the expiration

2

 

of said three (3) months or extended period, as
aforesaid, and in such event neither party shall have any further liabilities or obligations
hereunder, except that Landlord shall repay Tenant any Prepaid Rental or Security Deposit.

	(k)	 	Upon the Demised Premises being Ready for Occupancy, Tenant agrees to accept possession
thereof and to use its best endeavors to have Tenant’s Work completed, and its fixtures,
furniture, and equipment installed in the Demised Premises, as soon as reasonably possible.

SECTION 4: RENT.

	(a)	 	Rental shall accrue hereunder from the Commencement Date, and shall be payable to Landlord at
the address specified in Section 1(b) above. Tenant’s proportionate share of Common Area
cost, real estate taxes, costs for insurance, and any other amount payable hereunder by Tenant
to Landlord are herein referred to as “additional rent” or “additional rental”. Minimum
Guaranteed Rent and additional rent are herein referred to as “rent” or “rental”.

	(b)	 	Tenant shall pay to Landlord Minimum Guaranteed Rental in monthly installments in the amounts
specified in Section 1(k) above. The first such monthly installment shall be due and payable
on or before the Commencement Date, and subsequent installments shall be due and payable on or
before the first day of each succeeding calendar month during the Lease Term; provided that if
the Commencement Date is a date other than the first day of a calendar month, there shall be
due and payable on or before such date as Minimum Guaranteed Rental for the balance of such
calendar month a sum equal to that proportion of the rent specified for the first full
calendar month as herein provided, which the number of days from the Commencement Date to the
end of the calendar month during which the Commencement Date shall fall bears to the total
number of days in such month. No acceptance by Landlord of partial payment of any rent or
other sum due from Tenant shall be deemed a waiver by Landlord of any of its rights to the
full amount due, nor shall any endorsement or statement on any check or accompanying letter
from Tenant be deemed an accord and satisfaction.

	(c)	 	Intentionally Omitted.
	 
	(d)	 	Intentionally Omitted.
	 
	(e)	 	Intentionally Omitted.

	(f)	 	It is understood that the Minimum Guaranteed Rental is payable on or before the first day of
the month without offset or deduction of any nature. In the event any rental is not received
within 5 days after its due date, as set forth above, for any reason whatsoever, or if any
rental payment is made by check that is returned due to insufficient funds, then in addition
to the past due amounts, Tenant shall pay to Landlord one of the following (the choice to be
at the sole option of Landlord unless one of the choices is improper under applicable law, in
which event the other alternative will automatically be deemed to have been selected): (a) a
late charge in an amount equal to ten percent (10%) of the rental then due in order to
compensate Landlord for its administrative and other overhead expenses; or (b) interest on the
rental then due at the maximum contractual rate which could legally be charged in the event of
a loan of such rental to Tenant (but in no event to exceed 11/2% per month), such interest to
accrue continuously on any unpaid balance due to Landlord by Tenant during the period
commencing with the rental due date and terminating with the date on which Tenant makes full
payment of all amounts owing to Landlord at the time of said payment. Any such late charge or
interest payment shall be payable as additional rental under this Lease, shall not be
considered as a deduction from Percentage Rental, and shall be payable immediately on demand.

	(g)	 	If any rental is paid by check that is returned due to insufficient funds, Tenant shall on
demand make the required payment to Landlord in good and sufficient funds. Moreover, Tenant
shall also pay to Landlord on demand all bank fees incurred by Landlord as a result of such
returned check.

	(h)	 	If Tenant fails more than twice in any twelve (12) calendar month period to make any rental
payment when due, Landlord may require, by giving written notice to Tenant (and in addition to
any late charge or interest accruing, as well as any other rights and remedies accruing
pursuant to Sections 21 and 22 to follow, or any other term, provision or covenant of this
Lease), that all future rental payments are to be made by cash, cashier’s check, or money
order, and that the delivery of Tenant’s personal or corporate check will no longer constitute
a payment of rental as provided in this Lease. Any acceptance of Tenant’s personal or
corporate check thereafter by Landlord shall not be construed as a subsequent waiver of said
rights.

SECTION 5: INTENTIONALLY OMITTED.

SECTION 6: COMMON AREAS.

	(a)	 	The term “Common Area” is defined for all purposes of this Lease as that part of the Shopping
Center intended for the common use of all tenants, including but not limited to the parking
area, private streets and alleys, landscaping, curbs, loading areas, sidewalks, malls and
promenades (enclosed or otherwise), lighting facilities, drinking fountains, meeting rooms,
common area and equipment storage, public toilets, and the like. Landlord reserves the right
to change from time to time the dimensions and location of the Common Area, as well as the
dimensions, identity and type of any buildings in the Shopping Center. Tenant and its
employees and customers, and, when duly authorized pursuant to the provisions of this Lease,
its subtenants, licensees and concessionaires, shall have the non-exclusive right to use the
Common Area as constituted from time to time (provided, that Tenant shall not have the right
to use any Common Area that Landlord grants an exclusive use right to another tenant or
occupant of the Shopping Center), such use to be in common with Landlord, other tenants of the
Shopping Center and other persons permitted by Landlord to use the same, and subject to such
reasonable policies and regulations governing use as set forth on EXHIBIT “E” and as
amended by Landlord from time to time, including the designation of specific areas within the
Shopping Center, or in reasonable proximity thereto, in which automobiles owned by Tenant, its
employees, subtenants, licensees and concessionaires shall be parked. In this regard, Tenant
shall furnish to Landlord upon request a complete list of the vehicle license numbers of all
employees, licensees or concessionaires. Should Tenant or any of its employees, subtenants,

3

 

	 	 	licensees or concessionaires park in any part of the Shopping Center other than the specified
areas designated for employee parking and, after verbal or written warning or by violation
sticker placed on vehicle, the vehicle will be subject to towing at the expense of the
violator.

	(b)	 	Tenant shall not solicit business or display merchandise within the Common Area or distribute
handbills therein or take any action that would interfere with the rights of other persons to
use the Common Area. Landlord may temporarily close any part of the Common Area for such
periods of time as may be necessary to make repairs or alterations.

	(c)	 	Landlord may from time to time substitute for any parking area other areas reasonably
accessible to the tenants of the Shopping Center, which areas may be elevated, surface or
underground.

	(d)	 	Landlord shall be responsible for the operation, management, and maintenance of the Common
Area, the manner of maintenance and the expenditures therefor to be in the sole discretion of
Landlord. Tenant acknowledges that Landlord makes no representation or warranty as to whether
or not Landlord will provide security services or, if so, what form of security services will
be provided.

	(e)	 	In addition to the rentals and other charges prescribed in this Lease, Tenant shall pay to
Landlord, without offset or deduction, Tenant’s proportionate share of the cost of operation,
repair, maintenance and replacement, as needed, of the Common Area (including, without
limitation, among other Common Area costs, those for lighting, painting, cleaning, policing,
inspecting, repairing, replacing, canopies, skylights, floors, corridors, railings, gutters,
downspouts, foundations, fences, loudspeakers, public address, musical broadcasting and
electrical systems; gardening, landscaping and grounds maintenance, watering, irrigation;
cleaning, snow/ice removal, sanding, garbage and waste collection and disposal including
maintenance and replacement of trash receptacles and ash urns, trash compactors, benches,
bicycle racks and outdoor furniture; traffic control, security, alarm monitoring, supervising,
striping, resurfacing and drainage of parking area, driveways and sidewalks, including but not
limited to compliance with all governing codes; all utilities and repairs and maintenance of
such including electricity, gas, water, and sewer, and in the event of an enclosed mall or
promenade in the Shopping Center for heating and cooling; Tenant’s pro-rata share of whatever
management costs are incurred by the Landlord, including, but not limited to salaries and
expenses related to management, maintenance and accounting personnel, overhead and operating
expenses attributable to the operation of the management office (including, but not limited to
telephone, postage, and stationary expenses); rental or lease charges and repairs and
replacements to and maintenance and operation of signs, flags, banners or seasonal décor
relating to the Shopping Center, whether owned or rented by Landlord, which may be incurred by
Landlord in its sole discretion; and depreciation of maintenance equipment. In addition,
although the roof(s) of the building(s) in the Shopping Center are not literally part of the
Common Area, Landlord and Tenant agree that roof maintenance and repair, but not replacement,
shall be included as a common area maintenance item to the extent not specifically allocated
to Tenant under this Lease or to another tenant pursuant to its lease. Landlord’s fee for the
administration of all the above items shall be fifteen (15%) percent of the total annual
Common Area costs excluding utilities. Excluded from Common Area costs are capital
expenditures, ad valorem taxes, assessments, and depreciation of Landlord’s original
investment.

	(f)	 	The proportionate share of Common Area costs to be paid by Tenant shall be computed on the
ratio that the total gross leasable area of the Demised Premises bears to the total gross
leasable area of all buildings (excluding Common Areas) within the Shopping Center; provided
that, in no event shall such share be less than the amount specified in Section 1(m) above.
Notwithstanding the foregoing, if during the Lease Term Landlord permits any tenant or
occupant in the Shopping Center to perform any item of Common Area costs for its sole benefit
and at its sole expense in lieu of Landlord’s performance thereof (which Common Area cost item
is typically provided by Landlord to all tenants of the Shopping Center and the cost of which
would be included in Common Area costs pursuant to Section 6(e), then Landlord shall have the
right but not the obligation, to equitably allocate the Common Area cost of such specific
Common Area item so that only those tenants in the Shopping Center that directly or indirectly
benefit from such Common Area item shall pay such Common Area cost (such tenants shall be
hereinafter referred to as “Cost Pool Tenants”. Each Cost Pool Tenant’s share of such Common
Area cost shall be a fraction with a numerator equal to the leasable square footage of the
Cost Pool Tenant’s premises and the denominator equal to the sum of the leasable square
footage of all Cost Pool Tenants’ premises. Tenant shall make estimated monthly payments to
Landlord, and Landlord may at its option make other periodic charges for conditions that
exceed the estimated annual cost of operation and maintenance of the Common Area. These
expenses are payable in advance but subject to adjustment after the end of the year on the
basis of the actual cost for such year. Within ten (10) days after delivery to Tenant of such
actual cost adjustment by Landlord, Tenant shall pay to Landlord any additional monies due.
Provided that Tenant is not in default, Landlord shall credit Tenant’s excess, if any, to its
next scheduled payment.

SECTION 7: USE AND CARE OF PREMISES.

	(a)	 	The Demised Premises may be used only for the purpose or purposes specified in Section 1(r)
and for no other purpose without the prior written consent of Landlord. Tenant shall use in
the transaction of business in the Demised Premises the trade name specified in Section 1(e)
above and no other trade name without the prior written consent of Landlord. Tenant shall not
at any time leave the Demised Premises vacant, but shall in good faith continuously throughout
the Lease Term conduct business in a reputable manner so as to produce the maximum amount of
sales from the Demised Premises, and shall, except during reasonable periods for repairing,
cleaning and decorating, keep the Demised Premises open to the public for business with
adequate personnel in attendance on all days during all hours (including evenings) established
by Landlord from time to time as store hours for the Shopping Center, and during any other
hours when the Shopping Center generally is open to the public for business, except to the
extent Tenant may be prohibited from being open for business by applicable law, ordinance or
governmental regulation. Such that the Shopping Center may be available to customers’ use,
the hours shall have a minimum parameter of five (5) days a week, with a minimum of
eight (8) hours per day; specifically 10:00 a.m. to 6:00 p.m. Fewer hours require the written
consent of Landlord.

	(b)	 	Tenant shall not, without Landlord’s prior written consent, keep anything within the Demised
Premises or use the Demised Premises for any purpose which (i) increases the insurance premium
cost, or (ii) makes void or voidable any insurance policy carried on the Demised Premises or
other parts of the Shopping Center, or (iii) makes any

4

 

other lease in the Shopping Center void
or voidable or would render Landlord in default thereunder, or (iv) constitutes a default
under any indebtedness secured by the Shopping Center or any part thereof. All property kept,
stored or maintained within the Demised Premises by Tenant shall be at Tenant’s sole risk.

	(c)	 	Tenant shall not conduct within the Demised Premises any fire, auction, bankruptcy,
“going-out-of-business”, “lost-our-lease”, or similar sales. Tenant shall not permit any
objectionable or unpleasant odors to emanate from the
Demised Premises; nor place or permit any radio, television, loudspeaker or amplifier on the
roof or outside the Demised Premises or where the same can be seen or heard from outside the
building; nor place any antenna, awning or other projection on the exterior of the Demised
Premises; nor take any other action which in the exclusive judgment of Landlord, would
constitute a public or private nuisance or would disturb or endanger other tenants of the
Shopping Center or unreasonably interfere with their respective premises; nor do anything
which would tend to injure the reputation of the Shopping Center.

	(d)	 	Tenant shall take good care of the Demised Premises and keep the same free from waste at all
times. Tenant shall keep the Demised Premises and sidewalks, service-ways and loading areas
adjacent to the Demised Premises neat, clean and free from dirt or rubbish at all times, and
shall store all trash and garbage within the Demised Premises, until disposed of in dumpsters
provided. Receiving and delivery of goods and merchandise and removal of garbage and trash
shall be made only in the manner and areas prescribed by Landlord. Landlord may, at its sole
option, arrange for collection of all trash and garbage and, should Landlord exercise such
option, Tenant’s proportionate share of the cost thereof will be a part of its Common Area
cost. Tenant shall not operate an incinerator or burn trash or garbage within the Shopping
Center area. If Tenant is a restaurant, Tenant shall keep a grease trap properly serviced and
free of odor and clean at all times and at Tenant’s sole expense. There shall be no outside
storage of grease that does not meet with Landlord’s approval; and if approved, the storage
area shall be kept washed and clean at Tenant’s expense. All trash shall be disposed of in
heavy-duty plastic bags, securely tied and placed into dumpsters. All non-waxed cardboard
shall be flattened and recycled.

	(e)	 	Tenant shall maintain all display windows in a neat, attractive condition, and shall keep all
display windows, exterior electric signs lighted from dusk until 11:00 p.m., or such other
hours as Landlord may from time to time in its sole discretion designate, every day, including
Sundays and holidays.

	(f)	 	Tenant shall procure at its sole expense any permits and licenses required for the
transaction of business in the Demised Premises and otherwise comply with all applicable laws,
ordinances, and governmental regulations.

SECTION 8: MAINTENANCE AND REPAIR OF PREMISES.

	(a)	 	Landlord shall keep the foundation, the exterior walls (except plate glass windows, doors,
door closure devices, special store fronts and other exterior openings; window and door
frames, molding, locks and hardware; signs, placards, decorations or advertising media of any
type; and interior painting or other treatment of exterior walls) and roof of the Demised
Premises in good repair, except that Tenant shall be required to make all repairs occasioned
by the act or negligence of Tenant, its agents, employees, subtenants, licensees and
concessionaires. In the event that the Demised Premises should become in need of repairs
required to be made by Landlord hereunder, Tenant shall give immediate written notice thereof
to Landlord; and Landlord shall not be responsible in any way for failure to make any such
repairs until a reasonable time shall have elapsed after delivery of such written notice.
Landlord and Tenant expressly agree that all repairs, maintenance, management and other
services to be performed by Landlord or Landlord’s agents exclusively consists of the exercise
of professional judgment by such service providers, and Tenant expressly waives any claims for
breach of warranty arising from the performance of such services. Other than as set out in
this Lease, Landlord shall be under no obligation to perform any repair, maintenance or
management services in the Demised Premises or the surrounding Common Areas, and Tenant shall
be fully responsible at its expense for all repair, maintenance and management services other
than those which are expressly assumed by Landlord.

	(b)	 	Tenant shall keep the Demised Premises clean and habitable and in first class condition and
repair and shall at its sole cost and expense keep the Demised Premises free of insects,
termites, rodents, vermin and other pests and make all needed repairs and replacements,
including replacement of cracked or broken glass, except for repairs and replacements required
to be made by Landlord under the provisions of Sections 8(a), 17 or 18. Without limiting the
coverage of the previous sentence, it is understood that Tenant’s responsibilities therein
include the repair, maintenance and replacement of all lighting (including electric light
bulbs, tubes, tube casings and ballasts), heating, air conditioning, plumbing and other
electrical, mechanical and electromotive installation, equipment and fixtures and also include
all utility repairs and maintenance in wiring ducts, conduits, pipes and wiring, keeping all
free from obstruction and protected against ice and freezing and any sewer stoppage located
in, under and above the Demised Premises. Tenant shall be responsible for preventive
maintenance on the heating, ventilation and air conditioning systems (HVAC) and shall retain,
and furnish on request to Landlord, evidence of semi-annual maintenance and inspection
contract for such systems. If any repairs or maintenance required to be made by Tenant
hereunder are not made within ten (10) days after written notice delivered to Tenant by
Landlord, Landlord may at its option make such repairs or maintenance without liability to
Tenant for any loss or damage which may result to its stock or business by reason of such
repairs or maintenance; and Tenant shall pay to Landlord upon demand, as additional rent
hereunder, the cost of such repairs or maintenance plus interest at the maximum lawful rate
(but in no event to exceed one and one half percent (11/2%) per month), such interest to accrue
continuously from the date of payment by Landlord until repayment by Tenant. Notwithstanding
the above, Landlord shall warranty the HVAC for the first six (6) months of the Lease Term.
At the expiration of this Lease, Tenant shall surrender the Demised Premises in good condition
excepting reasonable wear and tear.

SECTION 9: ALTERATIONS.

	(a)	 	Tenant shall not make any alterations, additions or improvements to the Demised Premises
without the prior written consent of Landlord, except for the installation of unattached,
movable trade fixtures that may be installed without drilling, cutting or otherwise defacing
the Demised Premises. Without limiting the generality of the preceding sentence, any
installation or replacement of Tenant’s heating or air conditioning equipment shall be
effected strictly in accordance with Landlord’s instructions. All alterations, additions,
improvements and fixtures (other than unattached, movable trade fixtures) which may be made or
installed by either party upon the Demised

5

 

	 	 	Premises shall remain upon and be surrendered with
the Demised Premises and become the property of Landlord at the termination of this Lease,
unless Landlord requests their removal in which event Tenant shall remove the same and restore
the Demised Premises to their original condition at Tenant’s expense. Any linoleum, carpeting
or other floor covering of similar character that may be cemented or otherwise adhesively
affixed to the floor of the Demised Premises shall become the property of Landlord without
credit or compensation to Tenant. Tenant shall submit plans and specifications for Landlord’s
approval of all improvements and work to be done by Tenant within the Demised Premises prior
to the commencement of any such work.

	(b)	 	All construction work done by Tenant within the Demised Premises shall be performed in a good
and workmanlike manner, in compliance with all governmental requirements, and in such manner
as to cause a minimum of interference with other construction in progress and with the
transaction of business in the Shopping Center. Tenant agrees to pay for all cost of
alterations, additions or improvements, and to indemnify Landlord and hold Landlord harmless
against any loss, liability or damage resulting from such work, and Tenant shall, if requested
by Landlord, furnish bond or other security satisfactory to Landlord against any such loss,
liability or damage.

	(c)	 	In the event that Tenant uses a general contractor to perform construction work within the
Demised Premises, Tenant shall, prior to the commencement of such work, require said general
contractor to execute and deliver to Landlord a waiver and release of any and all claims
against Landlord and liens against the Shopping Center to which such contractor might at any
time be entitled and to execute and record a Bond to Pay Claims in accordance with Chapter 53
of the Texas Property Code, as such may be amended, superseded or replaced from time to time,
and shall deliver a copy of the recorded bond to Landlord. The delivery of the waiver and
release of lien and the bond shall be a condition precedent to Tenant’s ability to enter on
and begin its construction work at the Demised Premises and, if applicable, to any
reimbursement from Landlord for its construction work.

	(d)	 	In the event that Landlord elects to remodel all or any portion of the Shopping Center,
Tenant will cooperate with such remodeling, including Tenant’s tolerating temporary
inconveniences (and even the temporary removal of Tenant’s signs in order to facilitate such
remodeling, as it may relate to the exterior of the Demised Premises).

SECTION 10: LANDLORD’S RIGHT OF ACCESS; USE OF ROOF.

	(a)	 	Landlord shall have the right to enter upon the Demised Premises, upon 48 hours advance
notice except in the case of an emergency, for the purpose of inspecting the same, or of
making repairs to the Demised Premises, or of making repairs, alterations or additions to
adjacent premises, or of showing the Demised Premises to prospective purchasers, lessees or
lenders, or for any other reason in Landlord’s discretion.

	(b)	 	Use of the roof and all air space, heights, elevation rights and uses above the roof of the
Demised Premises is reserved to Landlord, and Tenant or Tenant’s agents, contractors or
designees must first have written approval of Landlord to access the roof for Tenant’s repairs
or remodeling. There shall be no roof penetration in connection with the installation of any
Tenant fixture or improvement on the Demised Premises.

SECTION 11: SIGNS; STORE FRONTS.

	(a)	 	Tenant shall not, without Landlord’s prior written consent (i) make any changes to the store
front, exterior walls, roof, foundation or any other part of the building, or (ii) install any
exterior lighting, decorations, or paintings, or (iii) erect or install any signs, window or
door lettering, placards, decorations or advertising media of any type which can be viewed
from the exterior of the Demised Premises, excepting only dignified displays of customary type
professionally made (hand scribed signs being prohibited) for its display windows. All signs,
lettering, placards, decoration and advertising media shall conform in all respects to the
sign criteria established by Landlord for the Shopping Center from time to time in the
exercise of its sole discretion, and shall be subject to the prior written approval of
Landlord as to construction, method of attachment, size, shape, height, lighting, color and
general appearance all as more particularly set forth in EXHIBIT “D”. All signs shall
be kept in good condition and in proper operating order at all times. Landlord reserves the
right to remove unauthorized signage upon notice to Tenant.

	(b)	 	Tenant agrees upon the Commencement Date, to have a sign installed and operative according to
Landlord’s sign criteria (as set forth in EXHIBIT “D”. Upon vacating the Demised
Premises or upon removal or alteration of its sign, Tenant shall be responsible for repair,
painting and/or replacement of building fascia surface where sign is attached.

SECTION 12: UTILITY SERVICE.

	(a)	 	Subject to definable limitations, Landlord agrees to provide and maintain the necessary
mains, conduits and other means necessary to supply water, gas, electricity, telephone service
and sewerage service to the Demised Premises. Tenant shall be responsible for the delivery of
service within the Demised Premises.

	(b)	 	Tenant shall promptly pay all charges for electricity, water, gas, telephone service,
sewerage service and other utilities furnished to the Demised Premises. Landlord may, if it
so elects, furnish one or more utility services to Tenant, and in such event Tenant shall
purchase the use of such services as are tendered by Landlord, and shall pay on demand as
additional rental the rates established therefor by Landlord which shall not exceed the rates
which would be charged for the services if furnished by the local public utility companies.
Landlord may at any time discontinue furnishing any such service without obligation to Tenant
other than to connect the Demised Premises to the public utility, if any, furnishing such
service.

	(c)	 	Landlord shall not be liable for supplying any such utilities or for any interruption,
reduction or discontinuance whatsoever in utility services not furnished by Landlord, nor for
interruptions, reductions or discontinuances in utility service furnished by Landlord which
are due to fire, accident, strike, acts of God, governmental action, shortages, or other
similar shortages or reductions or other causes beyond the control of Landlord or which would
cause such services to be economically impractical or which are necessary or useful in
connection with making alterations, repairs or improvements. Tenant shall be responsible for
the installation and maintenance of any

6

 

	 	 	dilution tanks, holding tanks, settling tanks, sewer
sampling devices, sand traps, grease traps or similar devices as may be required by any
governmental authority for Tenant’s use of the sanitary sewer system. Tenant shall be
responsible for any registration and upkeep of same as may be required by such legislation of
governmental authorities.

	(d)	 	Tenant may not use the services of an alternative electricity service provider (an “ASP”)
rather than the public utility that is servicing the Shopping Center as of the date of
Tenant’s execution of this Lease, and no ASP may provide service to Tenant or to install its
lines or other equipment within the Shopping Center, without obtaining the prior consent of
Landlord. Landlord’s consent under this Section 12(d) shall not be deemed any kind of
warranty or representation by Landlord, including, without limitation as to the suitability or
competence of any ASP. Further, if Landlord consents to Tenant’s use of an ASP, then Tenant
acknowledges and agrees that (1) all electricity
services desired by Tenant shall be ordered and utilized at the sole expense of Tenant; (2)
Landlord has no obligation or liability with respect to the interruption or discontinuation,
for whatever reason, of ASP service; and (3) TENANT SHALL INDEMNIFY, DEFEND, AND HOLD
HARMLESS LANDLORD FOR ALL CLAIMS, FINES, SUITS, LOSSES, COSTS, LIABILITIES, DEMANDS,
EXPENSES, ACTIONS AND JUDGMENTS (COLLECTIVELY, “CLAIMS”) AGAINST LANDLORD CAUSED BY OR
ARISING OUT OF, EITHER DIRECTLY OR INDIRECTLY, ANY ACTS OR OMISSIONS BY ASP (INCLUDING THOSE
CLAIMS RESULTING IN ANY WAY FROM THE NEGLIGENCE OF LANDLORD). Landlord’s refusal to consent
to any prospective ASP is not a default or breach by Landlord of its obligations under this
Lease unless and until Landlord is adjudicated in a final and unappealable court decision to
have acted recklessly or maliciously with respect to its refusal. Further, Landlord may at
any time and from time to time during the Lease Term require Tenant to contract for
electricity service with a different ASP or ASPs if the change in ASP will not raise Common
Area costs or Tenant’s electricity costs for the Demised Premises.

SECTION 13: INTENTIONALLY OMITTED.

SECTION 14: INDEMNITY AND PUBLIC LIABILITY INSURANCE.

	(a)	 	Landlord shall not be liable to Tenant or to Tenant’s employees, agents or visitors, or to
any other person whomsoever, for any injury to person or damage to property in or about the
Demised Premises or the Common Area caused by the negligence or misconduct of Tenant,
its employees, subtenants, licensees or concessionaires, or of any person entering the
Shopping Center under express or implied invitation of Tenant, or arising out of the use of
the Demised Premises by Tenant and the conduct of its business therein, or arising out of any
breach or default by Tenant in the performance of its obligations hereunder; and Tenant hereby
agrees to indemnify Landlord and hold it harmless from any loss, expense or claims arising out
of such damage or injury.

	(b)	 	Tenant shall procure and maintain throughout the Lease Term a commercial general liability
policy or policies of insurance, at its sole cost and expense, insuring both Landlord and
Tenant against all claims, demands or actions arising out of or in connection with Tenant’s
use or occupancy of the Demised Premises, the limits of such policy or policies to be in an
amount not less than $1,000,000 combined single limit, and to be written by insurance
companies approved by and registered with the Texas State Board of Insurance written on an
“occurrence” basis on Insurance Services Office, Inc. form CG 0001 0196 or an equivalent
occurrence basis form reasonably satisfactory to Landlord. Landlord and Landlord’s property
management company shall be named as additional insureds on each of Tenant’s insurance
policies. Tenant shall obtain a written obligation on the part of each insurance company to
notify Landlord at least thirty (30) days prior to cancellation of such insurance. Such
policies or duly executed certificates of insurance shall be promptly delivered to Landlord
prior to occupancy of the Demised Premises, and all renewals thereof shall be delivered to
Landlord not less than ten (10) days prior to the expiration date of the respective policy
terms. If Tenant should fail to comply with the foregoing requirements relating to insurance,
Landlord may obtain such insurance and Tenant shall pay to Landlord on demand, as additional
rent hereunder, the premium cost thereof plus interest at the maximum lawful rate (but in no
event to exceed 11/2% per month) from date of payment by Landlord until repaid by Tenant.

	(c)	 	UNLESS THE WAIVER HEREINAFTER EXPRESSED OPERATES TO VOID OR DIMINISH INSURANCE COVERAGE
CURRENTLY IN EFFECT BY LANDLORD, NOTWITHSTANDING ANYTHING IN THIS LEASE TO THE CONTRARY,
LANDLORD AND TENANT HEREBY WAIVE ANY AND ALL RIGHTS OF RECOVERY, CLAIMS, ACTIONS, OR CAUSES OF
ACTION AGAINST EACH OTHER, THEIR AGENTS, OFFICERS, AND EMPLOYEES, FOR ANY LOSS OR DAMAGE THAT
MAY OCCUR TO THE DEMISED PREMISES, IMPROVEMENTS, INVENTORY, OR TO ANY BUILDING ON THE DEMISED
PREMISES, BY REASON OF FIRE, THE ELEMENTS OR ANY OTHER CAUSES WHICH ARE INSURED AGAINST UNDER
THE TERMS OF STANDARD FIRE AND EXTENDED COVERAGE INSURANCE POLICIES, REGARDLESS OF COST OR
ORIGIN, INCLUDING NEGLIGENCE OF LANDLORD OR TENANT AND THEIR AGENTS, OFFICERS, AND EMPLOYEES.
BECAUSE THIS SECTION WILL PRECLUDE THE ASSIGNMENT OF ANY CLAIM MENTIONED IN IT BY WAY OF
SUBROGATION (OR OTHERWISE) TO AN INSURANCE COMPANY (OR ANY OTHER PERSON), TENANT AGREES
IMMEDIATELY TO GIVE TO EACH INSURANCE COMPANY WHICH HAS ISSUED TO IT POLICIES OF FIRE AND
EXTENDED COVERAGE INSURANCE, WRITTEN NOTICE OF THE TERMS OF THE MUTUAL WAIVERS CONTAINED IN
THIS SECTION, AND TO HAVE THE INSURANCE POLICIES PROPERLY ENDORSED, IF NECESSARY, TO PREVENT
THE INVALIDATION OF THE INSURANCE COVERAGE BY REASON OF THE MUTUAL WAIVERS CONTAINED IN THIS
SECTION.

	(d)	 	All trade furnishings, fixtures and equipment as well as improvements paid for by Tenant in
the Demised Premises, which are supplied and installed at the sole expense of Tenant, shall be
insured at Tenant’s expense. Landlord shall not be liable for any damage to the property of
Tenant or others located on the Demised Premises, nor for the loss of or damage to any
property of Tenant or others by theft or otherwise. Landlord shall not be liable for damage
to such property resulting from fire, explosion, falling plaster, steam, gas, electricity,
dampness, water or leaks from any part of the Demised Premises (including the pipes,
appliances, or plumbing work therein) or from any other place, or by any other cause of
whatsoever nature. All property of Tenant or other persons kept or stored on the Demised
Premises shall be so kept or stored at the risk of Tenant or such other persons, and Tenant
shall hold Landlord harmless from claims arising out of damage to same, including subrogation
claims by Tenant’s or such other person’s insurance carrier.

7

 

SECTION 15: OTHER INSURANCE.

	(a)	 	Landlord agrees to keep all buildings and improvements within the Shopping Center insured
against fire and extended coverage perils to be the extent of the full insurable value (with
replacement cost endorsement) and liability insurance (plus whatever endorsements or special
coverages Landlord, in its sole discretion, may consider appropriate) to the extent necessary
to comply with Landlord’s obligations under this Lease. If Tenant’s use of the Demised
Premises increases the insurance premium on policies maintained by Landlord over the premium
charged for normal retail and service uses, then Tenant shall be responsible for and pay the
amount of such increase.

	(b)	 	If Tenant makes any additions or alterations or changes in its operations or vacates the
Demised Premises and thereby causes an increase in the insurance premiums, Tenant shall pay to
Landlord the amount of such increase.

	(c)	 	Any insurance carried by Landlord or Tenant against loss or damage to the building and other
improvements within the Shopping Center or the Demised Premises shall be carried for the
benefit of Landlord to the extent of loss or damage to the building or improvements within the
Shopping Center and for the benefit of Tenant to extent of loss or damage to improvements in
the Demised Premises owned by Tenant.

	(d)	 	As additional rent during the Lease Term, Tenant will promptly reimburse Landlord on demand
all insurance costs for coverage of the Shopping Center and the Demised Premises. Such
insurance costs for fractional parts of the first and last year of the Lease Term shall be
prorated for the commencement or termination year by the following formula:
	 
	 	 	Multiply the number of days Tenant occupied the Demised Premises by Tenant’s share of
insurance costs and divide that quotient by 365.

	(e)	 	The copy of the invoice for insurance charges submitted by Landlord to Tenant shall be
sufficient evidence of the amount of insurance charges against the property to which the bills
relate. Tenant’s pro rata share of actual insurance charges for a given year shall be the
result of the actual insurance charges for such year multiplied by a fraction, the numerator
of which is the total gross leasable area of the Demised Premises set forth in Section 1(i)
and the denominator of which is the total gross leasable area in the Shopping Center.
Tenant’s share of the actual insurance costs for the calendar year in which the commencement
of this Lease occurs is estimated as set forth in Section 1(o) hereof, payable monthly by
Tenant to Landlord on the same date monthly rental is due. For the first partial year and for
each calendar year during the Lease Term, Tenant shall pay to Landlord on the date the Minimum
Guaranteed Rental is due, one twelfth (1/12) of the estimated insurance costs for the current
year, or if none have been estimated by Landlord, then one twelfth (1/12) of the actual
insurance costs of the immediately preceding calendar year. Within ten (10) days from
Tenant’s receipt from Landlord of a statement of the actual insurance costs for such year or
partial year, Tenant shall pay to Landlord the amount of the excess, if any, between Tenant’s
share of actual insurance costs for such year or partial year and the estimated amount
theretofore paid by Tenant for such period. If Tenant’s share of actual insurance costs for
any calendar year or partial year during the Lease Term for which Tenant has made payment to
Landlord hereunder is less than the estimated amount theretofore paid by Tenant for such year,
such excess amount paid by Tenant shall: (i) be credited against the next maturing
installment due from Tenant to Landlord for Tenant’s share of actual insurance costs, or (ii)
if paid for the last year of the Lease Term and Tenant is not in default, be refunded by
Landlord to Tenant upon expiration of the Lease.

	(f)	 	Tenant shall at its cost, maintain insurance covering: (i) its personal property and
improvements installed providing protection against fire and extended coverage, sprinkler
damage, vandalism and malicious mischief; (ii) all plate glass in the Demised Premises; (iii)
liquor law liability, if applicable; (iv) signage; and (v) pollution and contamination on the
Demised Premises if applicable. All coverage shall be written with replacement cost
endorsement.

SECTION 16: NON-LIABILITY FOR CERTAIN DAMAGE.

	 	 	Landlord and its agents and employees shall not be liable to Tenant for any injury to person,
damage to property, or losses due to business interruptions caused by the Demised Premises or
other portions of the Shopping Center becoming out of repair, or by defects or failure of
equipment, pipes or wiring, or broken glass, or by the backing up of drains, or by gas,
water, steam, electricity or oil leaking, escaping, or flowing into the Demised Premises
(except where due to Landlord’s willful failure to make repairs required to be made
hereunder, after the expiration of a reasonable time after written notice to Landlord of the
need for such repairs); nor shall Landlord be liable to Tenant for any loss or damage that
may be occasioned by or through the acts or omissions of other tenants of the Shopping Center
or of any other persons whomsoever, excepting only duly authorized employees and agents of
Landlord.

SECTION 17: DAMAGE BY CASUALTY.

	(a)	 	Tenant shall give immediate written notice to Landlord of any damage caused to the Demised
Premises by fire or other casualty.

	(b)	 	In the event that the Demised Premises shall be damaged or destroyed by fire or other
casualty insurable under standard fire and extended coverage insurance and Landlord does not
elect to terminate this Lease as hereinafter provided, Landlord shall proceed with reasonable
diligence and at its sole cost and expense to rebuild and repair the Demised Premises. In the
event (i) the building in which the Demised Premises are located shall be destroyed or
substantially damaged by a casualty not covered by Landlord’s insurance; or (ii) such building
shall be destroyed or rendered untenantable to an extent in excess of fifty percent (50%) of
the floor area by casualty covered by Landlord’s insurance; or (iii) such building be damaged
to such extent that the remaining Lease Term is not sufficient to amortize the cost of
reconstruction; or (iv) the holder of a mortgage, deed of trust or other lien on the Demised
Premises at the time of the casualty elects, pursuant to such mortgage, deed of trust or lien,
to require the use of all or part of Landlord’s insurance proceeds in satisfaction of all or
part of the indebtedness secured by the mortgage, deed of trust or other lien, then Landlord
may elect either to terminate

8

 

	 	 	this Lease or to proceed to rebuild and repair the Demised
Premises. Landlord shall give written notice to Tenant of such election within ninety (90)
days after the occurrence of such casualty, and if Landlord elects to rebuild and repair the
Demised Premises, it shall proceed to do so with reasonable diligence and at its sole cost and
expense. If despite Landlord’s best efforts, Tenant shall be deprived of the Demised Premises
for a period of two hundred twenty-one (221) days or longer, Tenant shall have the option to
terminate this Lease by providing Landlord thirty (30) days prior written notice.

	(c)	 	Landlord’s obligation to rebuild and repair under this Section shall in any event be limited
to restoring (i) the Demised Premises to substantially the condition in which the same existed
prior to such casualty, exclusive of any alterations, additions, improvements, fixtures and
equipment installed by Tenant; or (ii) Landlord’s Work as described in EXHIBIT “C”, if
any, to substantially the same condition in which the same existed prior to the casualty, as
the case may be. Tenant agrees that promptly after completion of such work by Landlord,
Tenant will proceed with reasonable diligence and at Tenant’s sole cost and expense to
restore, repair and replace all alterations, additions, improvements, fixtures, signs and
equipment installed by Tenant as described in EXHIBIT “C”, if any.

	(d)	 	Tenant agrees that during any period of reconstruction or repair of the Demised Premises it
will continue the operation of its business within the Demised Premises to the extent
practicable. During the period from the occurrence of the casualty until Landlord’s repairs
are completed, the Minimum Guaranteed Rental shall not be affected thereby and there shall be
no abatement of the Percentage Rental and other charges provided for herein unless more than
twenty percent (20%) of the floor area of the Demised Premises shall have been damaged by such
casualty; and then such Minimum Guaranteed Rental shall be reduced to the extent as may be
fair and reasonable under the circumstances.

SECTION 18: EMINENT DOMAIN.

	(a)	 	If more than ten percent (10%) of the floor area of the Demised Premises should be taken for
any public or quasi-public use under any governmental law, ordinance or regulation or by right
of eminent domain or by private purchase in lieu thereof, this Lease shall terminate and the
rent shall be abated during the unexpired portion of this Lease, effective on the date
physical possession is taken by the condemning authority.

	(b)	 	If less than ten percent (10%) of the floor area of the Demised Premises should be taken as
aforesaid, this Lease shall not terminate; however, the Minimum Guaranteed Rental payable
hereunder during the unexpired portion of this Lease shall be reduced in proportion to the
area taken, effective as of the date physical possession is taken by the condemning authority.
Following such partial taking, Landlord shall make all necessary repairs or alterations to
the remaining portion of the Demised Premises or, if an EXHIBIT “C” is attached
hereto, all necessary repairs or alterations within the scope of Landlord’s Work as described
in EXHIBIT “C”, as the case may be, required to make the remaining portions of the
Demised Premises an architectural whole.

	(c)	 	If any part of the Common Area of the Shopping Center should be taken as aforesaid, this
Lease shall not terminate, nor shall the rent payable hereunder be reduced, except that either
Landlord or Tenant may terminate this Lease if the area of the Common Area of the Shopping
Center remaining following such taking plus any additional parking area provided by Landlord
in reasonable proximity to the Shopping Center shall be less than seventy percent (70%) of the
area of the Common Area of the Shopping Center immediately prior to the taking. Any election
to terminate this Lease in accordance with this provision shall be evidenced by written notice
of termination delivered to the other party within thirty (30) days after the date physical
possession is taken by the condemning authority.

	(d)	 	All compensation awarded for any taking (or the proceeds of private sale in lieu thereof) of
the Demised Premises or any Common Area shall be the property of Landlord, and Tenant hereby
assigns its interest in any such award to Landlord; provided, however, Landlord shall have no
interest in any award made to Tenant for loss of business or for the taking of Tenant’s
fixtures and other property if a separate award for such items is made to Tenant.

SECTION 19: ASSIGNMENT AND SUBLETTING.

	(a)	 	Provided that Tenant shall not be in default of any of its obligations hereunder, Tenant may,
without Landlord’s consent, assign this Lease or sublet the Demised Premises to any Affiliate
(hereinafter defined) of Tenant, provided that (i) Tenant provides Landlord a copy of the
sublease or the assignment within 10 days after its execution, (ii) the total assets and net
worth of such assignee or sublessee shall not be less than that of Tenant immediately prior to
such assignment or sublease and (iii) such successor shall execute an instrument in writing
reasonably satisfactory to Landlord fully assuming all of the obligations and liabilities
imposed upon Tenant hereunder and shall deliver the same to Landlord. No such assignment or
subletting shall operate to relieve Tenant from any liability hereunder. The term “Affiliate”
means any entity that acquires all or part of Tenant, or that is acquired in whole or in part
by Tenant, or which entity, directly or indirectly, controls, is controlled by, or is under
common control with Tenant. For purposes of this Paragraph 19(a), “control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of an entity, whether through the ownership of voting securities or by
contract or otherwise.

	(b)	 	Provided that Tenant shall not be in default of any of its obligations hereunder, Tenant
shall have the further right to sublet portions of the Demised Premises with Landlord’s
approval of the Tenant and the form of the sublease, which approval will not be unreasonably
withheld, subject to Section 19(d). In the event of such a sublet, the Tenant and Landlord
shall share equally in the net profits realized by the Tenant on account of said sublease.
Should Tenant sublet the entire Demised Premises during any Lease Term of this Lease, Landlord
shall have the option to enter into a direct lease with the subtenant upon the renewal thereof
and, in such event, the Tenant shall be relieved of any further liabilities or benefits under
the terms of this Lease.

	(c)	 	Should Tenant at any time during the Lease Term desire to assign this Lease or sublet the
Demised Premises to a party other than a party under Section 19(a) above, Tenant shall furnish
Landlord with thirty (30) days or more advance written notice (prior to the date of such
proposed assignment) specifying therein the date of such proposed assignment or subletting,
the name and address of the proposed assignee or subtenant, and, if a corporation or
partnership, its principals and the nature of the business proposed to be conducted in the
Demised

9

 

	 	 	Premises by said assignee or subtenant. Any attempted assignment or sublease by
Tenant or any attempted reorganization of Tenant in violation of the terms of this Section 19
is void.

	(d)	 	If the Tenant proposes under Section 19(b) above to assign this Lease to a party (a
“Transferee”) (i) acceptable to Landlord in its reasonable discretion, taking into account
such things as existing uses, tenant mix and existing exclusives, (ii) with total assets and
net worth of the proposed assignee or subtenant shall not be less than that of Tenant
immediately prior to such assignment or sublease, (iii) with a use that will not conflict with
any then existing exclusive use given to another tenant of the Shopping Center and (iv) that
shall otherwise meet with Landlord’s approval, and if such Transferee delivers to Landlord in
recordable form an instrument that contains Transferee’s assumption of liabilities and
obligations under the Lease, then Landlord shall accept such assignment or subletting
Transferee. Tenant shall reimburse Landlord on demand for any costs that may be incurred by
Landlord in connection with any proposed transfer or assignment, including, without
limitation, the costs of investigation of the Transferee and the legal costs incurred in
connection with documenting the requested transfer.

	(e)	 	Tenant is traded on NASDAQ under symbol DOVR.

	(f)	 	Tenant shall not mortgage, pledge or otherwise encumber or grant any right with respect to
its interest in this Lease or in the Demised Premises, without the prior written consent of
Landlord.

	(g)	 	In the event of an assignment of this Lease by Tenant, in no event shall the rental payable
by Tenant for any calendar year be less than the annual Minimum Guaranteed Rental.

	(h)	 	In the event of the transfer and assignment by Landlord of its interest in this Lease,
Landlord shall thereby be released from any further obligations hereunder, and Tenant agrees
to look solely to such successor in interest of Landlord for performance of such obligations.
Any security given by Tenant to secure performance of Tenant’s obligations hereunder may be
assigned and transferred by Landlord to such successor in interest, and Landlord shall thereby
be discharged of any further obligation relating thereto.

SECTION 20: REAL ESTATE TAXES.

	(a)	 	As additional rent for the Lease Term, or any renewal or extension thereof, Tenant will
promptly pay real estate taxes, assessments, business taxes, excises, association dues, fees,
levies, charges and other taxes of every kind and nature whatsoever, general and special,
extraordinary and ordinary, foreseen and unforeseen, including interest on installment
payments, which may be levied or assessed against or arise in connection with ownership, use,
occupancy, rental, operation or possession of the Demised Premises (including personal
property taxes for property that is owned by Landlord and used in connection with the
operation, maintenance and repair of the Demised Premises), or substituted, in whole or in
part, for a tax previously in existence by any taxing authority, or assessed in lieu of a tax
increase, or paid as rent under any ground lease. Real estate taxes do not include Landlord’s
income, franchise or estate taxes (unless such excluded taxes are assessed in lieu of any of
the taxes enumerated above).

	(b)	 	The copy of the tax bill submitted by Landlord to Tenant shall be sufficient evidence of the
amount of taxes assessed or levied against the parcel of real property to which the bill
relates. Tenant’s pro rata share of actual real estate taxes for a given year shall be the
result of the actual tax charges for such year multiplied times a fraction, the numerator of
which is the total gross leasable area of the Demised Premises, set forth in Section 1(i) and
the denominator of which is the total gross leasable area in the Shopping Center or separate
tax parcel of which the Demised Premises are a part, whichever is applicable. Notwithstanding
the foregoing, if Tenant is a tenant in the Shopping Center with a ground lease that is taxed
separately, or Landlord permits a tenant in the Shopping Center to be taxed separately as in
the case of a ground lease, then Landlord shall have the right to equitably allocate the tax
bill so that Tenant pays its correct share of the taxes. Tenant’s share of the actual taxes
for the calendar year in which the commencement of this Lease occurs is estimated as set forth
in Section 1(n), payable monthly by Tenant to Landlord on the same date on which the Minimum
Guaranteed Rental is due. For the first partial year and for each calendar year during the
Lease Term, Tenant shall pay to Landlord on the date the Minimum Guaranteed Rental is due one
twelfth (1/12) of the estimated real estate taxes for the current year, or if none have been
estimated by Landlord, then one twelfth (1/12) of the actual real estate taxes for the
immediately preceding calendar year. Within ten (10) days from Tenant’s receipt from Landlord
of a statement of the actual taxes for such year, or partial year, Tenant shall pay to
Landlord the amount of the excess, if any, between Tenant’s share of actual taxes for such
year or partial year and the estimated amount theretofore paid by Tenant for such period. If
Tenant’s share of actual taxes for any calendar year or partial year during the Lease Term for
which Tenant has made payment to Landlord hereunder is less than the estimated amount
theretofore paid by Tenant for such year, such excess amount paid by Tenant shall: (i) be
credited against the next maturing installment due from Tenant to Landlord for Tenant’s share
of actual taxes; or (ii) if paid for the last year of the Lease Term and Tenant is not in
default, be refunded by Landlord to Tenant upon expiration of the Lease.

	(c)	 	All real estate taxes and assessments herein assumed to be paid by Tenant shall be paid by
Landlord before they become delinquent or penalty accrues thereon.
	 
	(d)	 	Intentionally omitted.

	(e)	 	Tenant shall be liable for all taxes levied against personal property and trade fixtures
owned by Tenant in the Demised Premises. If any such taxes are levied against Landlord or
Landlord’s property and if Landlord elects to pay the same or if the assessed value of
Landlord’s property is increased by inclusion of personal property and trade fixtures owned by
Tenant and Landlord elects to pay the taxes based on such increase, Tenant shall pay to
Landlord upon demand that part of such taxes for which Tenant is primarily liable hereunder.

	(f)	 	If Tenant should fail to pay any taxes, assessments, or governmental charges required to be
paid by Tenant hereunder, in addition to any other remedies provided herein, Landlord may, if
it so elects, pay such taxes, assessments, and governmental charges. Any sums, including
reasonable expenses and legal fees, so paid by Landlord shall be deemed to be additional
rental owing by Tenant to Landlord and shall be due and payable
upon 

10

 

	 	 	demand plus interest at
the maximum lawful rate (not to exceed 11/2% per month) from the date of payment by Landlord
until repaid by Tenant.

	(g)	 	Tenant hereby acknowledges that Landlord hires a tax consultant (the “Tax Consultant”) and
Tenant agrees to pay its proportionate share of the reasonable cost of the Tax Consultant.
Tenant’s share of the cost of the Tax Consultant is a fraction the numerator of which is the
gross leasable area of in the Demised Premises and the denominator of which is the gross
leasable area of all property owned by Landlord that is the subject of the Tax Consultant’s
review, provided in no event shall Tenant’s proportionate share be greater than if the subject
of such Tax Consultant’s work consisted only of the Shopping Center.

SECTION 21: DEFAULT BY TENANT AND REMEDIES.

	(a)	 	The following events shall be deemed to be events of default by Tenant under this Lease:

	 	(i)	 	Tenant shall fail to pay any installment of rent or any other obligation
hereunder involving the payment of money and such failure shall continue for a period of
ten (10) days after written notice. Notwithstanding the above, Landlord shall only be
obligated to provide such written notice to Tenant a maximum of two (2) times in any
twelve calendar month period. The next default shall be an automatic default hereunder
without any further obligation on the part of Landlord to provide notice thereof.

	 	(ii)	 	Tenant does not comply with any of the terms of this Lease or any amendment,
addendum or exhibit hereto, (other than as described in Subsections (iii) through (xii)
below for which no notice is required), and other than the payment of Rent, and does not
cure the failure within thirty (30) days after Landlord delivers notice of the failure
to Tenant, except that no Event of Default occurs if the failure cannot reasonably be
cured within the 30-day period and Tenant commences the cure promptly and diligently
completes the cure within a reasonable time, not to exceed 60 days after the last day of
the 30-day period.

	 	(iii)	 	Tenant or any guarantor of Tenant’s obligations under this Lease shall become
insolvent, or shall make a transfer in fraud of creditors, or shall make an assignment
for the benefit of creditors.

	 	(iv)	 	Tenant or any guarantor of Tenant’s obligations under this Lease shall file a
petition under any section or chapter of the United States Bankruptcy Code, as amended,
or under any similar law or statute of the United States or any State thereof; or Tenant
or any guarantor of Tenant’s obligations under this Lease shall be adjudged bankrupt or
insolvent in proceedings filed against Tenant or said guarantor.

	 	(v)	 	A receiver or trustee shall be appointed for the Demised Premises or for all or
substantially all of the assets of Tenant or any guarantor of Tenant’s obligations under
this Lease.

	 	(vi)	 	Tenant shall desert or vacate or shall commence to desert or vacate the Demised
Premises or any substantial portion of the Demised Premises or shall remove or attempt
to remove, without the prior written consent of Landlord, all or a substantial value of
Tenant’s goods, wares, equipment, fixtures, furniture, or other personal property.

	 	(vii)	 	Tenant shall do or permit to be done anything that creates a lien upon the
Demised Premises.

	 	(viii)	 	The business operated by Tenant shall be closed by a failure to pay any governmental
taxes required or for any other reason.

	 	(ix)	 	Tenant shall assign this Lease or sublet the Demised Premises without the prior
written consent of Landlord.

	 	(x)	 	The Demised Premises shall be used for purposes other than those set forth in
Section 1(r).

	 	(xi)	 	Tenant shall use or display signs other than those approved in accordance with
Section 11.

	 	(xii)	 	Tenant shall fail to keep regular business hours or to operate continuously,
except as provided for in Section 1(r).

	(b)	 	Upon the occurrence of any such events of default, Landlord shall have the option to pursue
any one or more of the following remedies:

	 	(i)	 	Without any notice or demand whatsoever, take any one or more of the actions
permissible at law to insure performance by Tenant of Tenant’s covenants and obligations
under this Lease. In this regard, it is agreed that if Tenant deserts the Demised
Premises or if the Demised Premises becomes vacant, (1) Landlord may enter upon and take
possession of such premises in order to protect them from deterioration and continue to
demand from Tenant the monthly rentals and other charges provided in this Lease, without
any obligation to relet, (2) but that if Landlord does, at its sole discretion, elect to
relet the Demised Premises, such action by Landlord shall not be deemed as an acceptance
of Tenant’s surrender of the Demised Premises unless Landlord expressly notifies Tenant
of such acceptance in writing pursuant to Section 21(b)(ii) of this Section, Tenant
hereby acknowledging that Landlord shall otherwise be reletting as Tenant’s agent and
Tenant furthermore hereby agreeing to pay to Landlord on demand any deficiency that may
arise between the monthly rentals and other charges provided in this Lease and that
actually collected by Landlord. It is further agreed in this regard in the event of any
default described in Section 21(a)(ii), Landlord shall have the right to enter upon the
Demised Premises, by force if necessary, without being liable for prosecution or any
claim for damages therefor, and do whatever Tenant is obligated to do under the terms of
this Lease; and Tenant agrees to reimburse Landlord on demand for any expenses which
Landlord may incur in thus effecting compliance with Tenant’s obligations under this
Lease, and Tenant further agrees that Landlord shall not be liable for any damages
resulting to the Tenant from such action.

11

 

	 	(ii)	 	Terminate this Lease by written notice to Tenant, in which event Tenant shall
immediately surrender the Demised Premises to Landlord, and if Tenant fails to do so,
Landlord may, without prejudice to any other remedy which Landlord may have for
possession or arrearages in rent (including any interest which may have accrued pursuant
to Section 4 of this Lease), enter upon and take possession of the Demised Premises and
expel or remove Tenant and any other person who may be occupying the Demised Premises or
any part thereof, by force if necessary, without being liable for prosecution or any
claim for damages therefor; and Tenant agrees to pay to Landlord on demand the amount of
all loss and damage which Landlord may suffer by reason of such termination, said loss
and damage to be determined by either of the following alternative measures of damages:

	 	(1)	 	Until Landlord is able through reasonable efforts,
the nature of which efforts shall be at the sole discretion of Landlord,
to relet the Demised Premises, Tenant shall pay to Landlord on or before
the first day of each calendar month, the monthly rentals and other
charges provided in this Lease. After the Demised Premises have been
relet by Landlord, Tenant shall pay to Landlord on the 20th day of each
calendar month the difference between the monthly rentals and other
charges provided in this Lease for the preceding calendar month and that
actually collected by Landlord for such month. If it is necessary for
Landlord to bring suit in order to collect any deficiency, Landlord shall
have the right to allow such deficiencies to accumulate and to bring an
action on several or all of the accrued deficiencies at one time. Any
such suit shall not prejudice in any way the right of Landlord to bring a
similar action for any subsequent deficiency or deficiencies. Any amount
collected by Landlord from subsequent tenants for any calendar month, in
excess
of the monthly rentals and other charges provided in this Lease, shall be
credited to Tenant in reduction of Tenant’s liability for any calendar
month for which the amount collected by Landlord will be less than the
monthly rentals and other charges provided in this Lease; but Tenant
shall have no right to such excess other than the above described credit.
	 
	 	(2)	 	When Landlord desires, Landlord may demand a final
settlement. Upon demand for a final settlement, Landlord shall have a
right to, and Tenant hereby agrees to pay, the difference between the
total monthly rentals and other charges provided in this Lease for the
remainder of the Lease Term and the reasonable rental value of the Demised
Premises for such period, such difference to be discounted to present
value at a rate equal to the highest rate of interest which is allowed by
law in the State of Texas when the parties to a contract have not agreed
on any particular rate of interest.

	 	(iii)	 	Terminate Tenant’s right of possession (but not this Lease) and may repossess
the Demised Premises by forcible entry and detainer suit or otherwise, without thereby
releasing Tenant from any liability hereunder and without demand or notice of any kind
to Tenant and without terminating this Lease, in which event Landlord may, but shall be
under no obligation to do so, relet the same for the account of Tenant for such rent and
upon such terms as shall be satisfactory to Landlord. For the purpose of such
reletting, Landlord is authorized to decorate or to make any repairs, changes,
alterations or additions in or to the Demised Premises as may be reasonably necessary or
desirable: and (1) if Landlord shall fail or refuse to relet the Demised Premises, or
(2) if the same are relet and a sufficient sum shall not be realized from such reletting
after first deduction therefrom, for retention by Landlord, the unpaid rent due
hereunder earned but unpaid at the time of reletting plus interest thereon at the
maximum lawful rate (not to exceed 11/2% per month), the cost of recovering possession
(including legal fees and costs of suit), all of the costs and expenses of such
decorations, repairs, changes, alterations, and additions, the expense of such reletting
(including without limitation brokerage fees and legal fees) and the cost of collection
of the rent accruing therefrom to satisfy the rent provided for in this Lease to be
paid: the (a) Tenant shall pay to Landlord as damages a sum equal to the monthly rentals
and other charges provided in this Lease for such period or periods, plus the cost of
recovering possession of the Demised Premises (including legal fees and cost of suit),
the unpaid rent earned at the time of repossession plus interest thereon at the maximum
lawful rate (not to exceed 11/2% per month), and the cost incurred in any attempt by
Landlord to relet the Demised Premises: or (b) if the Demised Premises have been relet,
the Tenant shall satisfy and pay any such deficiency. Landlord may file suit to recover
any sums falling due under the terms of this Section from time to time. Such reletting
shall not be construed as an election on the part of Landlord to terminate this Lease
unless a written notice of such intention is given to Tenant by Landlord.
Notwithstanding any such reletting without termination, Landlord may at any time
thereafter elect to terminate this Lease for such previous breach.

	 	(iv)	 	The following provisions shall override and control any conflicting provisions of
Section 93.002 of the Texas Property Code, as amended, as well as any successor statute
governing the right of a landlord to change the door locks of commercial tenants. In
the event of default or if Tenant breaches any term, covenant or condition of this
Lease, Landlord is entitled and is hereby authorized, without any further notice to
Tenant except as expressly provided herein, to enter upon the Demised Premised by use of
a master key, a duplicate key, or other peaceable means, and to change, alter, and/or
modify the door locks on all entry doors of the Demised Premises, thereby permanently
excluding Tenant and its officers, principals, agents, employees and representatives
therefrom. In the event that Landlord has either permanently repossessed the Demised
Premises pursuant to the foregoing provisions of this Lease, or has terminated this
Lease by reason of Tenant’s default, Landlord shall not thereafter be obligated to
provide Tenant with a key to the Demised Premises at any time, regardless of any amounts
subsequently paid by Tenant; provided, however, that in any such instance, during
Landlord’s normal business hours and at the convenience of Landlord, and upon receipt of
written request from Tenant accompanied by such written waivers and releases as the
Landlord may require, Landlord will (at Landlord’s option) either: (1) escort Tenant or
its authorized personnel to the Demised Premises to retrieve any personal belongings or
other property of Tenant not subject to the Landlord’s statutory lien or the lien and
security interest described in this Lease, or (2) obtain a list from Tenant of such
personal property as Tenant intends to remove, whereupon, Landlord shall remove such
property and make it available to Tenant at a time and place designated by Landlord.
However, if Landlord elects option (2), Tenant shall pay, in cash in advance, all costs
and expenses estimated by Landlord to be incurred in removing such property and making
it available to Tenant and all moving and/or storage charges theretofore incurred by
Landlord with

12

 

	 	 	 	respect to such property. If Landlord elects to exclude Tenant from the
Demised Premises without permanently repossessing or terminating pursuant to the
foregoing provisions of this Lease, then Landlord shall not be obligated to provide
Tenant a key to re-enter the Demised Premises until such time as all delinquent rent and
other amounts due under this Lease have been paid in full and all other defaults, if
any, have been completely cured to Landlord’s satisfaction (if such cure occurs prior to
any actual permanent repossession or termination), and Landlord has been given assurance
reasonably satisfactory to Landlord evidencing Tenant’s ability to satisfy its remaining
obligations under this Lease. During any such temporary period of exclusion, Landlord
will, during Landlord’s regular business hours and at Landlord’s convenience, upon
receipt of written request from Tenant and accompanied by such written waivers and
releases as Landlord may require, escort Tenant or its authorized personnel to the
Demised Premises to retrieve personal belongings of Tenant or its employees, and such
other property of Tenant as is not subject to the Landlord’s statutory lien or the lien
and security interest described in this Lease.

	(c)	 	If Landlord elects to exercise the remedy prescribed in Section 21(b)(i) above, this election
shall in no way prejudice Landlord’s right at any time thereafter to cancel said election in
favor of the remedy prescribed in Section 21(b)(ii) above, provided that at any time of such
cancellation Tenant is still in default. Similarly, if Landlord elects to compute damages in
the manner prescribed by Section 21(b)(ii)(1) above, this election shall in no way prejudice
Landlord’s right at any time thereafter to demand a final settlement in accordance with
Section 21(b)(ii)(2) above. Pursuit of any of the above remedies shall not preclude pursuit
of any remedies prescribed in other sections of this Lease and any other remedies provided by
law. Forbearance by Landlord to enforce one or more of the remedies herein provided upon an
event of default shall not be deemed or construed to constitute a waiver of such default.

	(d)	 	It is expressly agreed that in determining “the monthly rentals and other charges provided in
this Lease,” as that term is used throughout Subsections (i), (ii) and (iii) of Section 21(b)
above, there shall be added to the Minimum Guaranteed Rentals (as specified in Section 1(k) of
this Lease) a sum equal to the charges for maintenance of the Common Area (as specified in
Section 6 of this Lease), the charges for taxes and insurance plus one twenty-fourth (1/24) of
the total of all Percentage Rentals required to be paid by Tenant because of Gross Sales
during the two full calendar years immediately preceding the date Landlord initiated action
pursuant to said Subsections (or, in two full calendar years have not then elapsed, to the
corresponding fraction of all Percentage Rentals required to be paid because of Gross Sales
during the period commencing with the Commencement Date of this Lease and concluding with the
date on which Landlord initiated such action).

	(e)	 	It is further agreed that, in addition to payments required pursuant to Subsections (i), (ii)
and (iii) of Section 21(b), Tenant shall compensate Landlord for all expenses incurred by
Landlord in repossessing (including any increase in insurance premiums caused by the vacancy
of the Demised Premises) and all reasonable expenses incurred by Landlord in reletting,
including among other expenses, repairs, remodeling, replacements, advertisements and
brokerage fees.

	(f)	 	If on account of any breach or default by Tenant in its obligations hereunder, Landlord shall
employ an attorney to enforce or defend any of Landlord’s rights or remedies hereunder, Tenant
agrees to pay all court costs and any reasonable legal fees incurred by Landlord in such
connection.

	(g)	 	Landlord hereby acknowledges receipt from Tenant of the sum stated in Section 1(p) above and
it will be applied to the first accruing installment of rent. Landlord further acknowledges
receipt from Tenant of the sum stated in Section 1(q) above to be held by Landlord without
interest as security for the performance by Tenant of Tenant’s covenants and obligations under
this Lease, it being expressly understood that the Security Deposit is not an advance payment
of rental or a measure of Landlord’s damages in case of default by Tenant. Upon the
occurrence of any event of default by Tenant, Landlord may, from time to time, without
prejudice to any other remedy provided herein or provided by law, use such funds to the extent
necessary to make good any arrearages of rent and any other damage, injury, expense or
liability caused to Landlord by such event of default, and Tenant shall pay to Landlord on
demand the amount so applied in order to restore the Security Deposit to its original amount.
If Tenant is not then in default hereunder, any remaining balance of the Security Deposit
shall be returned by Landlord to Tenant upon termination of this Lease (pursuant to the terms
and conditions set forth in EXHIBIT “F”).

	(h)	 	It is further agreed that in addition to the above referenced events and remedies of default,
that continued defaults of non-payment of rent and expenses, in the timely reporting of
adjusted Gross Sales as required by the Lease, and/or in the performance of Lease covenants
are deemed to be deliberate, and Landlord thereafter may serve a three (3) day notice of
termination without affording to Tenant the opportunity to cure the deliberate default.
Deliberate default shall be defined as: (i) any such default that is continued or repeated
for two (2) consecutive months; (ii) a total of four (4) defaults in a twelve (12) month
period; or, (iii) any aggregate of six (6) defaults during the Lease Term.

	(i)	 	It is also understood that all exclusive rights, renewal options and free rent shall become
null and void should Tenant be in default more than two (2) times during the Lease Term.

	(j)	 	In the event of default in the payment of any rentals or other amounts due hereunder or for
breach of any covenants of this Lease, Tenant shall pay to Landlord on demand the sum of
$50.00 as an administrative fee in enforcing the terms of this Lease.

SECTION 22: INTENTIONALLY OMITTED.

SECTION 23: BANKRUPTCY.

	(a)	 	Should: (i) Tenant make voluntary assignment for the benefit of creditors; or (ii) a
receiver be appointed for Tenant or for any substantial portion of Tenant’s assets, and the
order, judgment or decree be not appealed from within the time allowed by law, with a stay of
the proceedings or supersedeas or, if appealed from in the manner aforesaid, said judgment
becomes final; or (iii) a court of competent jurisdiction adjudicates Tenant to be a bankrupt,
either voluntarily or involuntarily, and such adjudication be not appealed from, within the
time allowed 

13

 

	 	 	by law, with a stay of the proceedings or supersedeas or if appealed from in the
manner aforesaid, said decree becomes final; or (iv) Tenant makes an application to be
adjudicated a bankrupt or files a debtor’s bill, by petition or answer, or seeks any
rearrangement of it debts; then, at the option of Landlord, exercised by Landlord giving to
Tenant ten (10) days written notice, this Lease shall cease and come to an end.

	(b)	 	Notwithstanding any other provisions of this Lease, Landlord, in addition to any and all
rights and remedies allowed by law and equity, shall upon such termination be entitled to
recover an amount equal to the total monthly rental amount stated in this Lease for each month
until the Demised Premises are relet, plus damages in an amount equal to the then present
value of the total rental amount stated in this Lease for the entire remainder of the stated
Lease Term hereof less than the fair rental value of the Demised Premises for the remainder of
the Lease Term hereof, and neither Tenant, or any trustee or receiver, nor any person claiming
through or under Tenant or by virtue of any statute or order of any court shall be entitled to
possession of the Demised Premises but shall forthwith quit and surrender possession of the
Demised Premises to Landlord. Nothing herein contained shall limit or prejudice the right of
Landlord to prove and obtain as liquidated damages by reason of any such termination an amount
equal to the maximum allowed by any statute or rule of law in effect at the time when, and
governing the proceedings in which, such damages are to be proved, whether or not such amount
be greater, equal to or less than the amount of the damages recoverable under the foregoing
provisions of this Section.

SECTION 24: HOLDING OVER.

	 	 	In the event Tenant remains in possession of the Demised Premises after the expiration of
this Lease and without the execution of a new lease, and only with Landlord’s written
permission, it shall be deemed to be occupying the Demised Premises as a Tenant from month to
month at a rental equal to the rental herein provided plus fifty percent (50%) of such amount
and otherwise subject to all the conditions, provisions and obligations of this Lease insofar
as the same are applicable to a month to month tenancy. This month to month tenancy may be
terminated
by: (a) non-receipt of rent on the first day of the month; or (b) thirty (30) days written
notice by Landlord to Tenant.

SECTION 25: SUBORDINATION; ATTORNMENT; ESTOPPELS.

	(a)	 	Tenant accepts this Lease subject and subordinate to any mortgage, deed of trust or other
lien presently existing or hereafter placed upon the Shopping Center or any portion of the
Shopping Center which includes the Demised Premises and to any renewals and extensions
thereof. Tenant agrees that any mortgagee shall have the right at any time to subordinate its
mortgage, deed of trust or other lien to this Lease; provided, however, notwithstanding that
this Lease may be (or made to be) superior to a mortgage, deed of trust or other lien, the
mortgagee shall not be liable for prepaid rentals, security deposits and claims accruing
during Landlord’s ownership; further provided, that the provisions of a mortgage, deed or
trust or other lien relative to the rights of the mortgagee with respect to proceeds arising
from an eminent domain taking (including a voluntary conveyance by Landlord) and provisions
relative to proceeds arising from insurance payable by reason of damage to or destruction of
the Demised Premises shall be prior and superior to any contrary provisions contained in this
Lease with respect to the payment or usage thereof. Landlord is hereby irrevocably vested
with full power and authority to subordinate this Lease to any mortgage, deed of trust or
other lien hereafter placed upon the Demised Premises or the Shopping Center as a whole, and
Tenant agrees upon demand to execute such further instruments subordinating this Lease as
Landlord may request; provided, however, Landlord shall use commercially reasonable efforts to
obtain from any such mortgagee a written agreement in mortgagee’s standard form that after a
foreclosure (or a deed in lieu of foreclosure) the rights of Tenant shall remain in full force
and effect during the Lease Term so long as Tenant shall continue to observe and comply with
its covenants and obligations under this Lease.

	(b)	 	At any time when the holder of an outstanding mortgage, deed of trust or other lien covering
Landlord’s interest in the Demised Premises has given Tenant written notice of its interest in
this Lease, Tenant may not exercise any remedies for default by Landlord hereunder unless and
until the holder of the indebtedness secured by such mortgage, deed of trust or other lien
shall have received written notice of such default from Tenant and a reasonable time (not less
than 30 days) shall thereafter have elapsed without the default having been cured.

	(c)	 	Tenant agrees that it will from time to time upon request by Landlord execute and deliver to
Landlord a written estoppel certificate or statement addressed to Landlord (or to a party
designated by Landlord), which statement shall identify Tenant and this Lease; shall certify
that this Lease is unmodified and in full force and effect (or if there has been modification
that the same is in full force and effect as so modified); shall confirm that Landlord is not
in default as to any obligations of Landlord under this Lease (or if Landlord is in default,
specifying any default); and shall contain such other information or confirmations as Landlord
may reasonably request. Landlord is hereby irrevocably appointed and authorized as the agent
and attorney-in-fact of Tenant to execute and deliver any such written estoppel certificates
or statements on Tenant’s behalf if Tenant fails to do so within seven (7) days after the
delivery of a written request from Landlord to Tenant.

SECTION 26: LIABILITY OF LANDLORD; SALE BY LANDLORD.

	 	 	Tenant shall look solely to Landlord’s interest in the Shopping Center for recovery of any
claim, cost, liability or judgment against Landlord or any partner, officer, director,
shareholder, attorney or representative of Landlord. A sale, conveyance or assignment of
Landlord’s interest in the Shopping Center shall operate to release Landlord from liability
from and after the effective date thereof for all of the covenants, terms and conditions of
this Lease, express or implied, except as such may relate to the period prior to such
effective date, and Tenant shall thereafter look solely to Landlord’s successor in interest
in and to this Lease. This Lease shall not be affected by any such sale, conveyance or
assignment, and Tenant shall attorn to Landlord’s successor in interest thereunder.

SECTION 27: WARRANTIES AND REPRESENTATIONS.

	 	 	Landlord makes no representation or warranties, implied or expressed, regarding the
condition, suitability or fitness of the Demised Premises. Tenant hereby waives any
warranties, implied or expressed, which arise by the laws of the State of Texas and further
states that after full inspection therefor, Tenant accepts said Demised Premises “as is”,
“where is” and “with all faults”.

14

 

SECTION 28: TIMING.

	 	 	Any periods set forth herein for performance which have as the last day to perform, a holiday
or a Saturday or Sunday, shall be read to include as the last day for said performance the
next business day when the Landlord is open for business.

SECTION 29: ENTIRE AGREEMENT.

	 	 	This Agreement contains the entire understanding and agreement between the parties hereto,
and no prior or contemporaneous agreement, whether oral, implied or in writing, shall vary
the terms and provisions hereof.

SECTION 30: NOTICES.

	(a)	 	Wherever any notice is required or permitted hereunder, such notice shall be in writing. Any
notice or document required or permitted to be delivered hereunder shall be deemed to be
delivered upon personal delivery or via overnight delivery service, or if mailed, whether
actually received or not, when deposited in the United States Mail, postage prepaid, Certified
or Registered Mail, Return Receipt Requested, addressed to the parties hereto at their
respective addresses set out in Sections 1(b) and 1(d) above or such other addresses as they
may specify by written notice.

	(b)	 	If and when included within the term “Landlord” as used in this Lease there are more than one
person, firm or entity, all shall jointly arrange among themselves for their joint execution
of such notice specifying some individual at a specific address for the receipt of notices and
payments to the Landlord; if and when included within the term “Tenant” as used in this Lease
there are more than one person, firm or entity, all shall jointly arrange among themselves for
their joint execution of such a notice specifying an individual at a specific address for the
receipt of notices and payments to Tenant. All parties included within the terms “Landlord”
and “Tenant”, respectively, shall
be bound by notices and payments given in accordance with the provisions of this Section to
the same effect as if each had received such notice or payment.

SECTION 31: MISCELLANEOUS.

	(a)	 	Whenever herein the singular number is used, the same shall include the plural, and words of
any gender shall include each other gender.

	(b)	 	The captions used herein are for convenience only and do not limit or amplify the provisions
hereof.

	(c)	 	One or more waivers of any covenant, term or condition of this Lease by either party shall
not be construed as a waiver of a subsequent breach of the same covenant, term or condition.
The consent or approval by either party to or of any act by the other party requiring such
consent or approval shall not be deemed to waive or render unnecessary consent to or approval
of any subsequent similar act.

	(d)	 	Whenever a period of time is herein prescribed for action to be taken by Landlord or Tenant
(except for the payment of rent and other charges provided herein), the parties shall not be
liable or responsible for, and there shall be excluded from the computation of any such period
of time any delays due to strikes, riots, acts of God, shortages of labor or materials, war,
governmental laws, regulations or restrictions or any other causes of any kind whatsoever
which are beyond the reasonable control of Tenant and/or Landlord.

	(e)	 	Landlord agrees that if Tenant shall perform all of the covenants and agreements herein
required to be performed by Tenant, Tenant shall, subject to the terms of this Lease, at all
times during the continuance of this Lease have the peaceable and quiet enjoyment and
possession of the Demised Premises.

	(f)	 	During the Lease Term, neither Tenant nor any person, firm or corporation, directly or
indirectly controlling, controlled by or under common control with Tenant shall directly
operate, manage, conduct or have any interest in any commercial establishment operating under
the name set forth in Section 1(e) or having the use set forth in Section 1(r) within three
(3) miles of the Shopping Center, except that any such commercial establishment existing at
the date of this Lease may continue to be operated, managed, conducted and owned in the same
manner as on the date of this Lease, provided there is no change in the size or trade name of
such commercial establishment.

	(g)	 	Tenant will permit Landlord to place and maintain “For Rent” or “For Lease” signs on the
Demised Premises during the last ninety (90) days of the Lease Term, it being understood that
such signs shall in no way affect Tenant’s obligations pursuant to any other provision of this
Lease.

	(h)	 	The laws of the State of Texas shall govern the interpretation, validity, performance and
enforcement of this Lease. This Lease is performable in Dallas County, Texas, which shall be
the county in which exclusive venue exists. If provisions of this Lease should be held to be
invalid or unenforceable, the validity and enforceability of the remaining provisions of this
Lease shall not be affected thereby.

	(i)	 	The terms, provisions and covenants contained in this Lease shall apply to, inure to the
benefit of and be binding upon the parties hereto and their respective heirs, successors in
interest and legal representatives except as otherwise herein expressly provided.

	(j)	 	If this Lease is in fact a sublease, Tenant accepts this Lease subject to all of the terms
and conditions of the underlying lease under which Landlord holds the Shopping Center as
lessee. Tenant covenants that it will do no act or thing which would constitute a violation
by Landlord of its obligations under such underlying lease.

	(k)	 	Tenant will not load or unload a truck or permit any trucks serving the Demised Premises,
whether owned by Tenant or not, to be loaded or unloaded in the Shopping Center except in the
area specifically designated for such use by Landlord.

15

 

	(l)	 	Tenant will comply with the policies and regulations of the Shopping Center adopted by
Landlord as set forth on EXHIBIT “E”. Landlord shall have the right at all times to
change the policies and regulations of the Shopping Center or to amend them in any reasonable
manner as may be deemed advisable for the safety, care and cleanliness, and for the
preservation of good order of the Shopping Center. All changes and amendments in the policies
and regulations of the Shopping Center will be sent by Landlord to Tenant in writing and shall
thereafter be carried out and observed by Tenant.

	(m)	 	Any provision of this Lease “demanding”, “requiring” or “notifying” by either Landlord or
Tenant shall be given in written form.

	(n)	 	Landlord agrees to pay Principal Agent a commission for negotiating this Lease in accordance
with a separate agreement between Landlord and Principal Agent. It is agreed that Principal
Agent’s right to such a commission shall irrevocably vest upon the execution of this Lease and
the removal or satisfaction of all contingencies to Tenant’s liability hereunder.

	(o)	 	Landlord shall pay a commission of $NA psf to the Cooperating Agent. Cooperating Agent will
be paid a one-time fee. One-half of the commission will be paid upon final execution of this
Lease and the removal or satisfaction of all contingencies to Tenant’s liability hereunder and
one-half upon Tenant’s first month of occupancy with paid rent.

SECTION 32: INDEPENDENT CONTRACTOR.

	 	 	No term or provision contained herein shall be deemed or construed by the parties hereto, nor
by any third party, as creating the relationship of principal and agent or of partnership or
joint venture between the parties hereto, it being understood and agreed that neither the
method of computation of rent, nor any other provision contained herein, nor any acts of the
parties hereto, shall be deemed to create any relationship between the parties hereto other
than the relationship of Landlord and Tenant. Landlord and Tenant hereby expressly disclaim
any intention to create a joint venture or partnership. The provisions of this Lease in
regard to the payment by Tenant and the acceptance by Landlord of Percentage Rental are a
reservation for rent for use of the Demised Premises.

SECTION 33: “DTPA” WAIVER.

	 	 	Tenant acknowledges and agrees, on its own behalf and on behalf of any permitted assigns and
successors of Tenant hereafter, that the Texas Deceptive Trade Practices-Consumer Protection
Act, Subchapter E of Chapter 17 of the Texas Business and Commerce Code (the “DTPA”), is not
applicable to this transaction. Accordingly, Tenant’s rights and remedies with respect to
any transaction contemplated under this Lease, and with respect to all acts or practices of
Landlord, past, present or future, in connection with such transactions, shall be governed by
legal principles other than the DTPA.

Waiver of Consumer Rights

	 	 	 	Tenant waives its rights under the Texas Deceptive Trade Practices
Consumer Protection Act, Section 17.41 et seq., Texas Business &
Commerce Code, a law that gives consumers special rights and
protections. After consultation with an attorney of its own selection,
Tenant voluntarily consents to this waiver.

SECTION 34: ADDITIONAL REPRESENTATIONS, WARRANTIES AND COVENANTS OF TENANT.

	(a)	 	In the event Tenant is a corporation (including any form of professional association), then
each individual executing or attesting this Lease on behalf of such corporation hereby
covenants, warrants and represents: (i) that he is duly authorized to execute or attest and
deliver this Lease on behalf of such corporation in accordance with such corporation’s
articles of incorporation and bylaws; (ii) that this Lease is binding upon such corporation;
(iii) that Tenant is a duly organized and legally existing corporation in good standing in the
State of Texas; and (iv) the execution and delivery of this Lease by Tenant will not result in
any breach of, or constitute a default under any mortgage, deed of trust, lease, loan, credit
agreement, partnership agreement or other contract or instrument to which Tenant is a party or
by which Tenant may be bound. In the event Tenant is a partnership (general or limited), then
each individual executing this Lease on behalf of the partnership hereby covenants, warrants
and represents: (i) that he is duly authorized to execute and deliver this Lease on behalf of
the partnership in accordance with the partnership agreement, or an amendment thereto, now in
effect; (ii) that this Lease is binding upon such partnership; (iii) that the Tenant is a duly
organized and legally existing partnership and has filed any and all certificates required by
law; and (iv) the execution and delivery of this Lease will not result in any breach of, or
constitute a default under, any mortgage, deed of trust, lease, loan, credit agreement,
partnership agreement, or other contract or instrument to which Tenant is a party or by which
Tenant may be bound.

	(b)	 	Tenant is now solvent, and no bankruptcy or insolvency proceedings are pending or
contemplated by or against Tenant, and all reports, statements, cost estimates and other data
furnished by or on behalf of Tenant are true and correct.

	(c)	 	Upon request from time to time and at any time, Tenant will promptly correct any defect,
error or omission, which may be discovered in this Lease and will execute and deliver any and
all additional instruments as may be reasonably requested by Landlord to correct such defect,
error or omission.

SECTION 35: HAZARDOUS MATERIALS.

For the purposes of this Lease, Landlord and Tenant agree that, unless the context otherwise
specifies or requires, the following terms shall have the meaning herein specified:

	(a)	 	“Governmental Authority” shall mean the United States, the state, the county, the city, or
any other political subdivision in which the Shopping Center is located, and any other
political subdivision, agency, or instrumentality exercising jurisdiction over Tenant or the
Shopping Center.

16

 

	(b)	 	“Governmental Requirements” shall mean all laws, ordinances, rules, and regulations of any
Governmental Authority applicable to Tenant, the Shopping Center or any part thereof.

	(c)	 	“Hazardous Materials” shall mean (a) “hazardous waste” as defined by the Resource
Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et seq.), as amended from time
to time, and regulations promulgated thereunder; (b) any “hazardous substance” as defined by
the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 U.S.C.
Section 9601 et seq.), as amended from time to time, and regulations promulgated thereunder;
(c) asbestos; (d) polychlorinated biphenyls; (e) underground storage tanks, whether empty,
filled or partially filled with any substance, (f) any substance, the presence of which on the
property on which the Shopping Center is situated is prohibited by any Governmental
Requirements; and (g) any other substance which by any Governmental Requirements requires
special handling or notification of any federal, state or local governmental entity in its
collection, storage, treatment or disposal.

	(d)	 	“Hazardous Materials Contamination” shall mean the contamination (whether presently existing
or hereafter occurring) of the Demised Premises, facilities, soil, groundwater, air or other
elements on or of the Shopping Center by Hazardous Materials, or the contamination of the
buildings, facilities, soil, groundwater, air or other elements on or of any other property as
a result of Hazardous Materials at any time (whether before or after the date of this Lease)
emanating from the Demised Premises or any part thereof.
	 
	(e)	 	TENANT’S COVENANTS.
	 
	 	 	Tenant hereby represents, covenants and warrants that:

	 	(i)	 	Tenant shall not cause any violation of any Governmental Requirements relating to
Hazardous Materials, including, without limitation, any environmental laws, nor permit
any employee, subtenant, guest, invitee of Tenant or any other party to hereafter cause
any such violation, nor permit any environmental liens to be placed on the Demised
Premises or any portion thereof; and

	 	(ii)	 	The covenants of Tenant set out in this Section have been made with the express
agreement and acknowledgment of Tenant that Tenant has been given the opportunity to
inspect the Demised Premises in connection with its leasing thereof, as evidenced by
this Lease.

	(f)	 	ADDITIONAL COVENANTS.
	 
	 	 	Tenant agrees to (1) give notice to Landlord immediately upon (i) Tenant’s receipt of any
notice from any Governmental Authority of a violation of any Governmental Requirements
relating to Hazardous Materials and/or acquiring knowledge of the receipt of any such notice
by any other tenant of any portion of the Shopping Center and (ii) acquiring knowledge of the
presence of any Hazardous Materials on the Demised Premises or any other portion of the
Shopping Center or of any Hazardous Materials Contamination with a full description thereof,
and (2) promptly comply with any Governmental Requirements requiring the removal, treatment
or disposal of such Hazardous Materials Contamination where introduced into the property on
which the Shopping Center is situated by, or caused by the action of, Tenant, or its agents,
representatives, employees, tenants, licensees or invitees, or occurred at any time during
the period of Tenant’s use, occupancy or leasing of the Demised Premises, and in such event
and under such circumstances, Tenant agrees to provide Landlord with satisfactory evidence of
such compliance; and (3) provide Landlord, within thirty (30) days after demand by Landlord,
with a bond, letter of credit or similar financial assurance evidencing to Landlord’s
satisfaction that the necessary funds are available to pay the cost of removing, treating and
disposing of such Hazardous Materials or Hazardous Materials Contamination and discharging
any assessment which may be established on the Demised Premises or the Shopping Center or any
part thereof as a result thereof, for which Tenant shall be required to perform under the
terms of clause (2) next above.
	 
	(g)	 	SITE ASSESSMENTS.
	 
	 	 	Landlord, by its employees and agents at any time and from time to time, either prior to or
after the occurrence of an event of default relating to Hazardous Materials, may contract for
the services of persons (the “Site Reviewers”) to perform environmental site assessments
(“Site Assessments”) on the Demised Premises for the purpose of determining whether there
exists on the Demised Premises any environmental condition which could reasonably be expected
to result in any liability, cost or expense to the owner, occupier or operator of such
property arising under any state, federal or local law, rule or regulation relating to
Hazardous Materials. The Site Assessments may be performed, upon at least five (5) business
days notice to Tenant, and under reasonable conditions established by Tenant, which does not
impede the performance of the Site Assessments. The Site Reviewers are hereby authorized to
enter upon the Demised Premises for such purposes. The Site Reviewers are further to perform
both above and below the ground testing for environmental damage or the presence of Hazardous
Materials on the Demised Premises and such other tests on the Demised Premises as may be
necessary to conduct the Site Assessments in the reasonable opinion of the Site Reviewers.
Tenant will supply to the Site Reviewers such historical and operational information
regarding the Demised Premises and the business conducted therein as may be reasonably
requested by the Site Reviewers to facilitate the Site Assessments and will make available to
the Site Reviewers appropriate personnel having knowledge of such matters. The cost of
performing such Site Assessments shall be paid by Tenant if (1) a Site Assessment is made as
a result of or on the basis of Landlord acting upon written notice received from any
Governmental Authority asserting the existence of Hazardous Materials or Hazardous Materials
Contamination on the Demised Premises, if such Hazardous Materials or Hazardous Materials
Contamination (i) are actually found on the Demised Premises, (ii) such Hazardous Materials
or Hazardous Materials Contamination which were introduced into the Demised Premises by, or
caused by the actions of, Tenant, or its agents, representatives, employees, tenants,
licensees or invitees, or occurred at any time during the period of Tenant’s use, occupancy
or leasing of the Demised Premises; or (2) a routine random Site Assessment of the Demised
Premises is performed by Landlord which results in the discovery of the existence of
Hazardous Materials or Hazardous Materials Contamination which were introduced into the
Demised Premises by, or caused by the actions of, Tenant, or its agents, representatives,
employees, tenants, licensees or invitees, or occurred at any time during the period of
Tenant’s use, occupancy or leasing of the Property. Tenant shall reimburse Landlord on
demand for all reasonable costs payable by Tenant pursuant to this subsection plus interest
thereon at the maximum lawful rate (not to exceed
11/2% per month) until paid.

17

 

	(h)	 	LANDLORD’S RIGHT TO REMOVE HAZARDOUS MATERIALS.
	 
	 	 	Landlord shall have the right, upon twenty-four (24) hour advance notification to Tenant, but
not the obligation, prior or subsequent to an event of default, without in any way limiting
Landlord’s other rights and remedies under this Lease, to enter onto the Demised Premises or
to take such other actions as it deems necessary or advisable to clean up, remove, resolve or
minimize the impact of, or otherwise deal with, any Hazardous Materials or Hazardous
Materials Contamination on the Demised Premises following receipt of any notice from any
person or entity, including Governmental Authority, asserting the existence of any Hazardous
Materials or Hazardous Materials Contamination pertaining to the Demised Premises or any
part thereof, which, in Landlord’s sole opinion, could jeopardize the value or marketability
of this Lease, the Demised Premises or the Shopping Center. Provided that such Hazardous
Materials or Hazardous Materials Contamination were introduced into the Demised Premises or
the Shopping Center by, at the direction of, or caused by the actions of Tenant, its agents,
representatives, employees, licensees or invitees, then all costs and expenses paid or
incurred by Landlord in the exercise of its rights under this Section shall be payable to
Landlord by Tenant promptly upon demand therefor and shall bear interest at the maximum
lawful rate (not to exceed 1 1/2% per month) until paid.
	 
	(i)	 	INDEMNITY.
	 
	 	 	TENANT AGREES TO DEFEND, INDEMNIFY AND HOLD HARMLESS LANDLORD, ITS EMPLOYEES, AGENTS,
SHAREHOLDERS, OFFICERS AND DIRECTORS FROM AND AGAINST ANY CLAIMS, DEMANDS, OBLIGATIONS,
PENALTIES, FINES, SUITS, LIABILITIES, SETTLEMENTS, DAMAGES, LOSSES, COSTS OR EXPENSES
(INCLUDING, WITHOUT LIMITATION, REASONABLE LEGAL AND CONSULTANT FEES AND EXPENSES,
INVESTIGATION, LABORATORY FEES AND EXPENSES, CLEAN-UP COSTS, COURT COSTS AND OTHER LITIGATION
EXPENSES) OF WHATEVER KIND OR NATURE, KNOWN OR UNKNOWN, ARISING OUT OF OR IN ANY WAY RELATED
TO TENANT’S HANDLING, STORING, PROCESSING, DISPOSING OR DISCHARGING OF HAZARDOUS MATERIALS OR
THE PRESENCE, REMOVAL OR PRODUCTION OF ANY HAZARDOUS MATERIALS ON, IN, FROM OR AFFECTING ANY
PORTION OF THE DEMISED PREMISES OR ANY PORTION OF THE BUILDING, LANDLORD’S PROPERTY (REAL OR
PERSONAL), OR THE PROPERTY (REAL OR PERSONAL) OF OTHERS, TO THE EXTENT RESULTING FROM THE
ACTIVITIES OF TENANT OR ANY PERSONS CLAIMING BY, THROUGH OR UNDER TENANT. THIS INDEMNITY
SHALL SURVIVE THE TERMINATION OF THIS LEASE. THIS INDEMNITY SHALL BE IN ADDITION TO ALL OTHER
RIGHTS GRANTED LANDLORD UNER THE LEASE.

This Lease consists of a Table of Contents, thirty-five (35) Sections and Exhibits “A” through “I”.

(Any space left blank will be deemed to have been completed with the word “none”).

Because the Demised Premises are on the open market and are presently being shown, this Lease shall
be treated as an offer to lease only. Unless and until this Lease is accepted by Landlord and
Tenant in writing and a fully executed copy delivered to both parties, this offer is subject to
withdrawal or non-acceptance by Landlord and the Demised Premises may be leased to another party or
used for another purpose by Landlord without notice.

EXECUTED as of the date herein stated.

	 	 	 	 	 	 	 	 	 
	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PAVILLION NORTH LTD.,

a Texas limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PAVILLION NORTH MANAGEMENT, LLC,

a Texas limited liability company

Its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Lou B. Cagle, President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DOVER SADDLERY RETAIL, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 

	 	Name:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 

	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 

18

 

EXHIBIT “A”

SITE PLAN

19

 

EXHIBIT “B”

LEGAL DESCRIPTION

BEING all that tract of land in the City of Dallas, Dallas County, Texas, a part of the Thomas
Yeager Survey, Abstract No. 1615, and being all of Lot 8, Block 9/8199, Pavillion Addition, Section
Five, an addition to the City of Dallas as recorded in Volume 80085, Page 2478, Dallas County Map
Records.

20

 

EXHIBIT “C”

IMPROVEMENTS

Tenant shall accept the Demised Premises in “as is” condition.

DESCRIPTION OF TENANT’S WORK

	I.	 	Signs
	 
	 	 	Tenant shall pay for all signs and the installation thereof including electrical hook-up by a
licensed electrician subject to the provisions of EXHIBIT “D” of this Lease.
	 
	II.	 	Utilities
	 
	 	 	Tenant shall provide all meters or other measuring devices including water submeters in
connection with utility service. Tenant shall also provide all connections to the utility
service provided by Landlord. Tenant shall pay all service deposits.
	 
	III.	 	Interior Work
	 
	 	 	The work to be done by Tenant shall include, but not be limited to the purchase and installation of the following:

	 	A.	 	Adequate electrical service, panel, wiring and fixtures.
	 
	 	B.	 	Demise partition(s) as required by existing conditions to separate the Demised
Premises from other lease space(s). Partition shall be at lease one-hour fire rated
gyprock wall with 5/8” gypsum board and R-11 batt insulation (sealed at the roof deck)
on both sides of studs. The exterior side is not to be taped and bedded. A break metal
wall cap to match storefront metal shall be installed at the storefront. ALL DEMISING
WALLS MUST MEET THE STOREFRONT AT A COLUMN OR MULLION.
	 
	 	C.	 	Interior partitions, including finishing, electrical wiring and connections
within the Demised Premises. Any interior walls meeting the storefront must meet at a
column or mullion.
	 
	 	D.	 	2’ x 4’ lay-in lights in adequate number to provide a minimum of 70-foot candle
lighting throughout the Demised Premises plus light covers and special hung or furred
ceilings.
	 
	 	E.	 	Interior painting.
	 
	 	F.	 	Store fixtures and furnishings.
	 
	 	G.	 	Display window enclosures.
	 
	 	H.	 	Plumbing fixtures within the Demised Premises.
	 
	 	I.	 	2’ x 4’ drop ceiling and 6” (R-19) batt insulation, installed no lower than the
top of the storefront glass.
	 
	 	J.	 	Heating/air conditioning and ventilation equipment (adequate to provide at least
a 25-degree differential) including electrical hook-up, ductwork and roof penetrations.
ONLY CARRIER, TRANE OR LENNOX MODELS ARE ACCEPTABLE.
	 
	 	K.	 	Floor covering and 4” vinyl cove base if VCT or 4” carpet base if carpet.
	 
	 	L.	 	All telephone equipment for the Demised Premises.
	 
	 	M.	 	Grease retention system for restaurants.
	 
	 	N.	 	In the event a fire suppression system exists within the Demised Premises, Tenant
shall be responsible for all modifications to said system that may be necessitated as
the result of Tenant’s work. Tenant shall provide to Landlord copies of as-built
drawings indicating any modifications to said system. Such drawing must be sealed and
signed by a licensed fire systems contractor. A licensed contractor must perform all
work involving the fire suppression system.

	IV.	 	All work undertaken by Tenant shall be at Tenant’s expense and shall not damage the building
or any part thereof. Any roof penetration shall be performed by Landlord’s roofer or, with
Landlord’s prior written approval, by a bonded roofer. The work shall be begun only after
Landlord has given consent, which consent shall be conditioned upon Tenant’s plans, to include
materials acceptable to Landlord, in order to prevent injury to the roof and spread the weight
of the equipment being installed. Tenant shall also be responsible for obtaining and paying
for professional inspections of any structural work (including, without limitation, any roof
work or concrete work).
	 
	V.	 	Landlord warrants that any existing heating, ventilation and air conditioning systems shall
be in working order upon Tenant occupancy, and will warrant the HVAC systems for two (2) years
from the Commencement Date.
	 
	VI.	 	Tenant will provide an on-site dumpster to be used for disposal of finish-out debris and will
cause such dumpster to be emptied as needed; subject, however, to Landlord’s right to
designate a reasonably convenient location therefor.
	 
	VII.	 	Landlord will pay Tenant up to $26,890 (the “Work Allowance”) as a reimbursement for Tenant’s
bona fide (and

21

 

verified) construction expenses paid to parties not related to Tenant.
Landlord shall make up to three (3) progress payments to Tenant as work progresses withholding
the final twenty-five percent (25%) of the Work Allowance
(the “Final Payment”). Tenant’s Final Payment request will be processed only upon (i)
completion of all improvements to Landlord’s satisfaction and specifications, (ii) Tenant’s
delivery to Landlord of a true copy of its Certificate of Occupancy (or similar governmental
occupancy permit), (iii) Landlord’s satisfaction that all bills have been paid to Tenant’s
contractor, subcontractors and professionals, including appropriate lien waivers from said
persons, and (iv) Tenant’s commencement of business in the Demised Premises. Tenant may,
prior to commencement of Tenant’s Work, request that Landlord increase the Work Allowance by
a maximum of $100,000.00 (the actual amount of the increase being the “Additional
Allowance”). If Tenant timely requests the increase in the Work Allowance, then Landlord
shall increase the Work Allowance by the amount of the Additional Allowance. Landlord shall
prepare, and Landlord and Tenant shall promptly execute and deliver, an amendment to this
Lease increasing the Minimum Guaranteed Rental by the amount needed to amortize the
Additional Allowance over seven (7) years at 9% per annum, with the increased payment
commencing with the first Minimum Guaranteed Rental payment due under this Lease.

	VIII.	 	Intentionally omitted.
	 
	IX.	 	Tenant shall have detailed plans and specifications prepared for the proposed finish out of
the Demised Premises, at its own cost, and a copy of such plans and specifications shall be
furnished to Landlord within fourteen (14) days of execution of this Lease. Without limiting
the generality of the immediately preceding sentence, Tenant’s submissions must include a
floor plan, electrical, plumbing and HVAC designs, a reflected ceiling plan, elevations of
walls and a fixture plan. All drawings shall be at a scale of either 1/8” or 1/4”. Tenant
shall reimburse Landlord for any loss or extra cost which may result to Landlord by reason of
failure on the part of Tenant to submit any such plans, diagrams, schedules, specifications
and/or other data within said period of time.
	 
	X.	 	The plans and specifications aforesaid shall be subject to the approval of the Landlord, and
shall be deemed to be granted unless Landlord raises any objections in writing within seven
(7) days of Landlord’s receipt of said documents. Should Landlord and Tenant be unable to
agree upon said plans and specifications within fourteen (14) days of their submission to
Landlord, this Lease may be terminated by written notice from either party to the other.
	 
	XI.	 	The finish out allowance is for improvements to the Demised Premises
and their upgrading and shall not include personal property,
inventory, signage or fixtures or fittings (other than plumbing
fittings or electrical fittings, and HVAC equipment).
	 
	XII.	 	Only new materials may be utilized for the finish out referred to in
this EXHIBIT “C”, and the use of used or second hand materials or
materials not in compliance with IAQ laws is specifically prohibited
save with such written consent by Landlord.
	 
	XIII.	 	The general contractor chosen for the aforesaid work shall be
responsible to secure all licenses and permits necessary for said
work to be lawfully carried out, including any demolition permits,
and will be responsible to comply with all applicable environmental
laws.
	 
	XIV.	 	Intentionally omitted.
	 
	XV.	 	Tenant shall provide for electricity to be turned on in the Demised
Premises and be billed directly to Tenant. Tenant shall be
responsible for all cleaning costs incurred during the build out of
the Demised Premises.

DESCRIPTION OF LANDLORD’S WORK

	I.	 	Structure

	 	A.	 	Landlord shall select all exterior wall surfaces. Exterior trim and other work
normally requiring painting shall be painted.
	 
	 	B.	 	Landlord shall specify any roofing.

	II.	 	Storefront

	 	A.	 	A standard storefront shall be provided in keeping with the overall architectural
plan for the Center.
	 
	 	B.	 	If a door already exists on the Premises and if Landlord owns such door, then
Tenant may use the door for its storefront. However, Landlord makes no representations
or warranty in this regard and Tenant agrees that it is ultimately responsible for
providing its own door.

	III.	 	Parking Areas and Walks

	 	A.	 	Parking areas shall be hard surfaced.
	 
	 	B.	 	Walks shall be surfaced with concrete, stone, brick or other hard material as
specified by Landlord.
	 
	 	C.	 	Parking areas and walks shall be provided with reasonably adequate artificial
lighting.

	IV.	 	Floor Slab
	 
	 	 	The interior of the Demised Premises will have a smooth concrete floor
except for the approximately five (5) foot “leave-out”, which will not
be the responsibility of the Landlord.

	V.	 	Utilities

	 	A.	 	Cold water service shall be brought to the perimeter of the Demised Premises;
otherwise Tenant shall

22

 

	 	 	 	provide all plumbing fixtures and connections thereof within the
Demised Premises.
	 
	 	B.	 	Waste line shall be brought to the five foot “leave-out” in the Demised Premises.
	 
	 	C.	 	Gas service, if utilized at the Shopping Center, shall be brought to a location
at the perimeter of the building in which the Demised Premises are situated, at which
location the gas company will set its meter; provided, however, that Landlord shall have
the option of substituting all-electric utility service for gas service.
	 
	 	D.	 	Electrical service (120-240 volt or 110/120 volt and three-phase or one-phase
service, all at Landlord’s discretion) will be brought to a location on the rear wall of
the building in which the Demised Premises are situated, at which location the
electricity provider will set Tenant’s meter.
	 
	 	E.	 	Telephone service will be brought to a location on the perimeter wall of the
building in which the Demised Premises are situated.

23

 

EXHIBIT “D”

TENANT SIGN CRITERIA

	I.	 	GENERAL

	 	A.	 	Tenant shall be required to identify Tenant’s Demised Premises by erecting one
(1) sign which shall be attached directly to the building fascia as described
hereinafter. Tenant shall furnish and install all signs at its cost. Tenant shall not
be allowed to open for business without approved required signs in place. Failure to
open for this reason shall not excuse the Tenant from the performance of its obligations
under the Lease. All Tenant signs must be designed, fabricated and installed to comply
with criteria and specifications described hereinafter.
	 
	 	B.	 	If Tenant installs any sign without Landlord’s prior written approval, Tenant
shall remove such sign within five (5) days from the receipt of written notice from the
Landlord demanding removal of such sign. In the event Tenant fails to remove any such
sign within a five (5) day period, Landlord may remove such sign without further notice
to Tenant and Tenant shall reimburse Landlord the amount of expenses incurred by
Landlord in removing such sign.
	 
	 	C.	 	Each Tenant is responsible for his sign conforming to the ordinances and codes
having jurisdiction at the site. Each Tenant shall be responsible for obtaining all
required permits prior to the commencement of installation. Written approval and
conformation with these specifications does not imply conformance with local City and
County sign ordinances. Tenant will have its sign company check with local authorities
to avoid non-compliance with local codes. If this criteria and the City code vary, the
more restrictive requirement will apply. All permits and approvals from the City of
Dallas or Richardson are required prior to sign fabrication. Signs are to be U.L.
LABELED AND U.L. APPROVED.
	 
	 	D.	 	The advertising or informative content of all exterior signs shall be limited to
letters designating the store name. No generic names will be permitted. All signs can
display only English language. No Tenant of less than sixty thousand (60,000) square
feet of Floor Area shall have an exterior sign which identifies leased departments
and/or concessionaires operating under such Tenant’s business or trade name, nor shall
such sign identify specific brands or products for sale or services offered within a
business establishment, unless such identification is used as part of the Tenant’s trade
name. Landlord will permit the use of a crest, shield, logo or other established
incorporate insignia which has been customarily displayed or associated with the store
name only with prior written consent of the Landlord; in no case shall a logo if
permitted exceed 28” in height.
	 
	 	E.	 	No exposed ballast boxes, sign cabinets, or electrical transformers shall be
permitted. Sign company names or stamps shall be concealed. External sign illumination
shall not be permitted.
	 
	 	F.	 	Tenant shall submit, for Landlord’s approval, elevations and sections shown on
the actual building identifying the Tenant’s location of Demised Premises and the
relationship of sign to such premises and building facade in height and length. At a
minimum, all material and dimensions required by this Tenant Sign Criteria shall be
indicated.
	 
	 	G.	 	Any deviations from this sign criteria are subject to written approval by the
Landlord. Landlord has the right to waive any provisions listed herein.
	 
	 	H.	 	Landlord, at Tenant’s sole cost and expense, reserves the right to change the
sign criteria in the interest of maintaining or updating the architectural integrity of
the property.

	II.	 	DESIGN

	 	A.	 	General Requirements and type of sign:

	 	1.	 	Exterior signs shall be limited to plex type faced individual
channel letters internally illuminated shop mounted to 1/8” thick aluminum
background on 2“x12” wireway. Sign assembly shall be bolted to masonry with
noncorrosive galvanized bolts. Refer to installation Section IV.B.
	 
	 	2.	 	The vertical height of all signs shall be a maximum of forty-two
(42) inches on one horizontal line for “layer” fascia height. If upon Landlord’s
determination more than one horizontal line of lettering is necessary to provide
adequate signage, Landlord will allow Tenant to use two horizontal lines of
lettering not to exceed 42” in total height including spaces between rows.
Minimum letter size 12”. Nationally recognized trademark company tenants in
excess of 15,000 square feet are not required to use the 3” halo and the 2” by
12” wireway and may have lettering up to 72” in height with the total height of
the sign not to exceed 25% of the front elevation of the Demised Premises.
Letters for these tenants are to be individually mounted with remote
transformers.
	 
	 	3.	 	The maximum overall length of a sign shall not exceed 75% of the
storefront width or fifty (50) feet, whichever is less. In no case shall any
sign or portion of any sign extend beyond the Tenant’s lease line. The overall
length shall include the letter background plate.
	 
	 	4.	 	Landlord must approve type style.
	 
	 	5.	 	All lines of lettering shall run horizontally.
	 
	 	6.	 	Box type signs will not be permitted.

24

 

	 	B.	 	Construction:

	 	1.	 	All signs shall be in the form of individual channel letters with
plastic letter faces to be Acrylite SG Plexiglas, 1/8” thick, in the following
acceptable colors:

	 	a.	 	White #7328 SG
	 
	 	b.	 	Red #2793 SG
	 
	 	c.	 	Green #2447 White SG with Holly Green #230-76 Green Vinyl for overlay
	 
	 	d.	 	Yellow #2037 SG
	 
	 	e.	 	No adjacent signs shall be the same color.

	 	2.	 	Background plate shall be 1/8” thick aluminum attached to a 2“x12”
aluminum wireway and channel letters. Color of background plate is to be gloss
black. 24” tall letters or smaller use .063 aluminum backs and .040 aluminum
sides. 24” tall letters or larger use .090 aluminum backs and .063 aluminum
sides. Background plate is to be 3” around letters continuously with minimum 2”
from the wireway with no sharp angles.
	 
	 	3.	 	Returns and wireways are to be painted to match the background
plate (gloss black). No armorplate or wood in the manufactured returns may be
used.
	 
	 	4.	 	Trim Cap 1” in color to match the channel letter faces.

	III.	 	ILLUMINATION AND WIRING

	 	A.	 	All illumination shall be with 15mm neon tubing and shall be uniform. Neon
colors as follow:

	 	1.	 	White Plex: 6,500 degrees White
	 
	 	2.	 	Red Plex: Clear Red Neon
	 
	 	3.	 	Green Plex: Power Green
	 
	 	4.	 	Yellow Plex: Clear Gold II

	 	B.	 	Secondary Wiring — All transformers are to be concealed within soffits and all
secondary wiring shall be concealed in wiring channel. Provide U.L. APPROVED
transformer box.
	 
	 	C.	 	Electrical power shall be brought to required location at lessee’s expense.
Routing and location of conduit and other required items shall not be visible on front
of fascia. Only two wall penetrations per transformer will be permitted for electrical
wiring. Penetrations for wiring shall be in a mortar joint located behind letters in
the sign. Repair of brick damage shall be the responsibility of the sign company.
Signs should be prewired in the shop. Provide wiring between letters in 2” wiring
channel-mounting plate.
	 
	 	D.	 	Final electrical connection of sign to transformer box will be performed by a
licensed electrician approved by the City of Richardson /Dallas (depending on site) and
Landlord.
	 
	 	E.	 	An access panel in the canopy soffit may have been provided for sign wiring.
	 
	 	F.	 	Tenants are required to have a time clock for the sign that will automatically
turn on/off the sign at prescribed intervals as set by the Landlord. Although signs may
remain on as long as Tenant desires, no signs shall be turned off before 11:00 p.m.

	IV.	 	MOUNTING

	 	A.	 	Placement:
	 
	 	 	 	Letters are to be located on signage area of building as determined by Landlord. The
assigned position for each Tenant shall be centered on centerline of storefront with
allowance for suitable space between adjacent Tenant signs or as determined by
Landlord.
	 
	 	 	 	No signs shall be placed on canopy roofs extending above the building roof, placed on
penthouse walls, or placed so as to project above the parapet, canopy or top of the
wall upon which it is mounted.
	 
	 	B.	 	Installation:

	 	1.	 	Mount sign assembly to brick veneer using 3/8” galvanized bolts.
Indicate number and location on shop drawings. Locate mounting holes in mortar
joints only. Provide 12” tall by 2” deep raceway box between brick and back of
plate. Letters and background plate are to be preassembled. Attachment of
signage must be to UL standards. No exposed wiring is permitted. ALL SIGNS
ARE TO BE U.L. LABELED AND U.L. APPROVED.
	 
	 	2.	 	Tenant will be responsible for all damage to the building incurred
during sign installation or removal. Any damage done to any part of the building
during the mounting or removal of signs shall be promptly repaired to a “like new
condition” by the Tenant at the Tenant’s expense. No penetrations will be made
through the roof flashings. Any penetrations in the roof must be made by
Landlord’s designated roofer.
	 
	 	3.	 	All signs and connections shall be soundly constructed, securely
attached and be weather tight. All signs should be mounted with good quality
workmanship. The Landlord reserves the right to be the judge of such
workmanship. Sign mounting must comply with the appropriate City requirements.

25

 

	V.	 	SUBMITTAL FOR APPROVAL

	 	A.	 	Tenant shall submit three (3) drawings to the Landlord for written approval prior
to the fabrication of any
sign at:

	 	 	 	J.R. Black Properties

Attn: Ms. Lauri Miller

7517 Campbell Road, Suite 601

Dallas, TX 75248

Fax: 972.733.4199 or email: lmiller@jrblackproperties.com

	 	B.	 	Elevation of building fascia and sign shall be drawn using a minimum 1/4” = 1’-0”
scale. Provide section drawn at min. 3/4” = 1’-0”.
	 
	 	C.	 	Drawing shall indicate the following specifications: Type, color, and thickness
of all sign components, type of illumination and mounting method. Tenant’s sign
contractor shall first visit the site to verify existing conditions prior to preparation
of shop drawings. Information needed to prepare submittals shall also be obtained
during this visit.
	 
	 	D.	 	Drawings must also include fascia cross-section showing electrical connections.
	 
	 	 	 	Approved Sign Company:
	 
	 	 	 	Jim Harper

Jim Harper Signs

P.O. Box 1716

1872 F.M. 548

Forney, TX 75126

Phone: 214.801.1872

Fax: 214.327.9480

	VI.	 	SECONDARY SIGNS

	 	A.	 	No secondary signs are to be placed on building wall elevations. Tenant shall
mount 3” high white Helvetica regular letters on the rear door for identification
purposes. Place bottom of letters at 12” below top of door.
	 
	 	B.	 	No trailer signs or temporary signs will be permitted. No sandwich or easel
signs are allowed.
	 
	 	C.	 	No roof signs or box signs are allowed. No cloth signs or banners are allowed.
	 
	 	D.	 	Window signs displaying company name only will be allowed in white vinyl letters
not exceeding 3” in height. Submit three (3) copies of 1/4” = 1’0” scaled drawings for
approval. Tenant shall not apply any other signs to the interior or exterior face of
the storefront glass or other materials.
	 
	 	E.	 	3” high white Helvetica regular address numerals for postal identification of
Demised Premises will be mounted to the inside face of glass centered 3” above bottom of
transom above front door.
	 
	 	F.	 	“Grand Opening” signs in moderation and good taste shall be permitted at the
Landlord’s discretion. Such signs will be permitted for a period of ten (10) days only.
Such signs must be located so as not to obstruct access either visually or physically
to any other Tenant space or common area. Tenant must obtain written approval prior to
erecting any sign.
	 
	 	G.	 	No animated, moving or audible components are allowed. No intermittent or
flashing illumination is allowed.
	 
	 	H.	 	No iridescent painted signs are allowed. No signs may be painted on any surface
of any Building.
	 
	 	I.	 	No signs or letters may be painted directly on any surface.
	 
	 	J.	 	No signs may be installed or placed along the perimeter of the Shopping Center.
	 
	 	K.	 	No window neon signs.

26

 

	 	1.	 	Background plate to be 3’’ outside of letters continuously.
	 
	 	2.	 	Background plate to provide 2’’ minimum coverage of raceway box.
	 
	 	3.	 	Minimum inside and outside radius to be 2’’ — typical.
	 
	 	4.	 	Background to “split” between letters only when distance exceeds
8’’.

27

 

EXHIBIT “E”

POLICIES AND REGULATIONS

	1.	 	Store hours are a minimum of eight (8) hours per day, five (6) days per week — using the time
frame 10 a.m. to 6 p.m. Evening hours are not required, but may be added to a regular
nine-hour day. Stores are not required to be open on national holidays. Any exceptions to
normal business hours require written permission from Landlord.
	 
	2.	 	Banners may not be displayed except for Grand Opening. Consult Landlord for display
requirements and special conditions.
	 
	3.	 	Flyers may not be distributed in the parking lots on windshields — at any time. Special
cleanup cost resulting from a violation of this procedure may be billed to the violating
party.
	 
	4.	 	Parking for all tenants and employees shall be away from the stores. Any car displaying “For
Sale” signs shall be subject to towing without notice.
	 
	5.	 	Boxes must be broken down and put into the designated recycle dumpster of the Shopping
Center. No tenant’s trash is to be placed in or on the sidewalk trash container, in or around
the alley dumpsters, nor stacked around the rear door of the Demised Premises. All foodstuffs
and small trash items are to be bagged and securely tied. Doors to dumpster enclosures must
remain closed at all times. There will be additional charges for excessive trash or boxes not
broken down.
	 
	6.	 	Outdoor furniture, planters, ash cans, etc. must either be purchased through Landlord’s
representative or by submitting plans, drawings, pictures to Landlord for prior written
approval. All furniture must comply with Shopping Center design plan. Outdoor seating must
also comply with allowed parking at the site. Each tenant shall be responsible for obtaining
all required permits prior to the commencement of any installation. Written approval and
conformation with these specifications does not imply conformance with local city or county
ordinances. Each tenant is responsible for conforming to the ordinances and codes having
jurisdiction at the site. Plastic furniture is not allowed.
	 
	7.	 	Window treatments such as mini blinds, verticals, curtains, etc. need to have prior written
approval of Landlord.
	 
	8.	 	Walkways and sidewalks must remain clear for pedestrian traffic. Tenant, its agents, servants
and employees shall not block or obstruct any of the entries, passages, doors, sidewalks or
walkways or place, empty or throw any rubbish, litter, trash or material of any nature into
such areas, or permit such areas to be used at any time except for ingress or egress of
Tenant, its agents, servants, employees, visitors, customers or invitees.
	 
	9.	 	Service corridors are to be kept clear at all times. All trash needs to remain in the Demised
Premises until it is taken to the dumpster. No items are allowed to be stored in any service
corridor.
	 
	10.	 	Restricted uses shall include the selling or exhibiting of pornographic materials, drug
related paraphernalia, massage parlors, any gambling facility or operation including but not
limited to off-track or sports betting, table games, slot machines, video poker, bingo parlor,
video arcade, pool or billiard hall.

Landlord reserves the right to amend these policies and regulations and to make such other and
further policies and regulations as it deems necessary or desirable.

28

 

EXHIBIT “F”

TENANT MOVE-OUT CHECK LIST

	 	 	 
	LANDLORD:

	 	Pavillion North, Ltd.
	ADDRESS:

	 	7517 Campbell Road, #601
	 

	 	Dallas, TX 75248
	PHONE:

	 	972/733-4900
	FAX:

	 	972/733-4199

	 	 	 
	TENANT:

	 	Dover Saddlery Retail, Inc.
	 
	 	 
	ADDRESS:

	 	7529 Campbell Road, Suite 306
	 
	 	 
	 

	 	Dallas, Texas 75248 Phone:                     

	1.	 	UTILITIES: Notify each utility that you are ceasing service as of your lease termination date and
that J.R. Black Properties, Ltd. will be calling to transfer service to their account.

	 	 	 	 	 	 	 	 	 
	Electricity:

	 	Acct. #
	 	_____________
	 	Meter #
	 	_____________
	Gas:

	 	 	 	_____________
	 	 	 	_____________
	Water:

	 	 	 	_____________
	 	 	 	_____________

	2.	 	HVAC: The final service check and filter change is the Tenant’s responsibility. Use your
regular service contractor or Landlord’s contractor to change filters and make any
needed repairs to leave all units in good working condition. Provide Landlord with paid
service invoice.
	 
	3.	 	PREMISES: Clean and vacuum inside. Spackle any holes in walls. Remove any decals and/or
lettering from windows. Replace any burned out lamps or ballasts. At Landlord’s option,
attached shelving and fixturing remains in Demised Premises. Arrange for walk-through
with Landlord.
	 
	4.	 	KEYS: Deliver all keys (front, rear, inside doors, alarms, etc.), properly marked, to Landlord.
	 
	5.	 	SIGN: Have sign company or electrician remove outdoor sign, cap off wires. The Landlord will
have the fascia repaired at Tenant’s expense. The sign timer remains in the Demised
Premises.
	 
	6.	 	ADDRESS: Provide Landlord with a forwarding address.
	 
	7.	 	FINANCIAL: Settle any outstanding balance with Landlord. Upon termination of the Lease and
surrender of the Demised Premises by Tenant to Landlord, if Tenant is not then in
default, any remaining balance of the Security Deposit shall be returned to Tenant,
provided that Landlord may hold the Security Deposit for a period of thirty (30) days
following surrender of the Demised Premises and may deduct from the amount any rental or
other charges due and payable. Any charges incurred by Landlord because Tenant fails to
clean, repair, replace damaged portions of the Demised Premises, service HVAC, remove
sign and turn in keys, will be paid by Tenant and may be deducted from the Security
Deposit.

29

 

EXHIBIT “G”

INTENTIONALLY OMITTED

30

 

EXHIBIT “H”

EXCLUSIVES AND PROHIBITED USES

EXCLUSIVES:

Marshall’s

No more than five thousand nine hundred ninety-nine thousand (5,999) square feet of floor area may
be used for the sale or display of brand-name clothing, shoes, giftware, or domestics at discount
prices; and no such occupant occupying more than 6,000 square feet of floor area per store shall be
permitted to sell or display such items.

Carmine’s 

Tenant will not use the Demised Premises as a restaurant specializing in the sales of pizza.

Corner Bakery

Tenant will not use the Demised Premises as a restaurant that primarily sells either (i) freshly
baked bread by the loaf, or (ii) sandwiches or other products which are made with a variety of
handmade or specialty breads, including, but not limited to the following establishments: Atlanta
Bread Company, La Madeleine, Au Bon Pain, St. Louis Bread, Panera, Briaz, Soprafina, Wall Street
Deli, Boudin, Cosi’s, Xando, Starbucks.

Rockfish

Tenant will not use the Demised Premises as a seafood restaurant.

Sprint

Tenant will not use the Demised Premises for the retail sale of wireless and wire line
communication devices and equipment.

More Space Place

Tenant will not use the Demised Premises for the retail sale of Murphy Bed furniture systems,
custom closets systems, and custom modular furniture systems including office systems.

Ebby Halliday

Tenant will not use the Demised Premises for a residential real estate office or a mortgage loan
office.

Raising Cane’s

Tenant will not use the Demised Premises for a restaurant or food service establishment which
specializes in the preparation, service or sales of de-boned chicken products as its primary food
product.

PROHIBITED USES:

No use shall be permitted in the Shopping Center which is inconsistent with the operation of a
first-class retail shopping center. Without limiting the generality of the foregoing, the
following uses shall not be permitted:

Theatre of any kind;

Bowling alley or any other like place of public assembly;

Any use which constitutes a public or private nuisance or produces objectionable noise or
vibration;

An operation primarily used as a storage warehouse operation and any assembling, manufacturing,
distilling, refining, smelting, agricultural or mining operation;

Any “second hand” store (other than a first-class consignment store) or “surplus” store (other than
a store which sells closeouts or discount items but would be found in a first-class retail shopping
center);

Any mobile home park, trailer court, labor camp, junkyard, or stockyard; provided, however, this
prohibition shall not be applicable to the temporary use of construction trailers during periods of
construction, reconstruction or maintenance;

Any dumping, disposing, incineration or reduction of garbage; provided, however, this prohibition
shall not be applicable to garbage compactors located near the rear of any Building;

Any fire sale, bankruptcy sale (unless pursuant to a court order) or auction house operation;

Any central laundry, dry cleaning plant or laundromat; provided, however, this prohibition shall
not be applicable to nominal supportive facilities for on-site service oriented to pickup and
delivery by the ultimate consumer as the same may be found in retail shopping centers in the
metropolitan area where the Shopping Center is located;

Any automobile, truck, trailer or recreation vehicle sales, leasing, display or body shop repair
operation;

Any bowling alley or skating rink;

Any movie theater or live performance theater;

Any residential use, including but not limited to single family dwellings, townhouses,
condominiums, other multi-family units, and other forms of living quarters, sleeping apartments or
lodging rooms;

31

 

Any veterinary hospital or animal raising or boarding facility; provided, however, this prohibition
shall not be applicable to pet shops or incidental boarding in a grooming salon. Notwithstanding
the foregoing exception any veterinary or boarding services provided in connection with the
operation of a pet shop shall only be incidental to such operation; all kennels, runs and pens
shall be located inside the building; and the combined incidental veterinary and boarding
facilities shall occupy no more than fifteen percent (15%) of the floor area of the pet shop;

Any mortuary or funeral home;

Any establishment selling or exhibiting pornographic materials or which sells drug-related
paraphernalia which exhibits either live or by other means to any degree, nude or partially clothed
dancers or wait staff and/or any massage parlors or similar establishments;

Any bar, tavern, restaurant or other establishment whose reasonably projected annual gross revenues
from the sale of alcoholic beverages for on-premises consumption exceeds thirty-five percent (35%)
of the gross revenues of such business;

Any flea market, amusement or video arcade (unless incidental to the primary use of the occupant),
pool or billiard hall (unless incidental to the primary use of the occupant), car wash or dance
hall;

Any gambling facility or operation, including but not limited to, off-track or sports betting
parlor, table games such as blackjack or poker, slot machines, video poker/blackjack/keno machines
or similar devices, or bingo hall. Notwithstanding the foregoing, this prohibition shall not be
applicable to government sponsored gambling activities or charitable gambling activities, so long
as such governmental and/or charitable activities are incidental to the business operation being
conducted by the occupant;

School, library, reading room, or house of worship;

Gallery, auditorium, meeting hall, hotel or motor inn;

Adult bookstore, a so-called “head” shop, or check cashing facility;

Pawn shop;

Drilling for and/or removal of subsurface substances;

Service station or any facility storing or selling gasoline or diesel fuel in or from tanks.

32

 

EXHIBIT “I”

OPTION/S TO RENEW

1. Provided Tenant is not in default of its obligations under this Lease at the date of such
exercise and subject to Section 21 (i), Tenant shall have the option to renew this Lease for
two (2) subsequent period(s) of five (5) year(s), from the expiration of the
Primary Term of this Lease. Landlord may treat any option as having not been exercised if Tenant
is in default of any such obligations at the date of commencement of the renewal period in
question.

2. The option(s) aforesaid must be exercised in writing delivered by Tenant to Landlord not later
than three (3) months prior to the expiration of the Primary Term, or as the case may be, any
subsequent renewal period, and failing which the said option(s) shall be waived by Tenant.

3. The terms and provisions applicable to the above renewal period(s) shall be the same as apply to
the Primary Term of this Lease, except that (i) rent shall be as set forth in Section 4 below, (ii)
Tenant shall have no further right to renew this Lease after the expiration of the renewal
period(s) above, and (iii) Landlord shall not be required to pay any allowance or perform any work
with respect to the renewal period(s).

4. The Minimum Guaranteed Rental payable during the renewal period(s) shall be:

	 	 	 	 	 	 	 
	1st five (5) year option

	 	Years 6 — 8
	 	$13.10 psf
	 	$5,870.98 per month 
	 

	 	Years 9 — 10
	 	$13.60 psf
	 	$6,095.07 per month
	 
	 	 	 	 	 	 
	2nd five (5) year option

	 	Years 11 — 12
	 	$14.10 psf
	 	$6,319.15 per month
	 

	 	Years 13 — 15
	 	$15.00 psf
	 	$6,722.50 per month

33

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]