Document:

Exhibit
10.68

 

 

AMENDED
AND RESTATED

LEASE
AGREEMENT

 

DATED MAY 23,
2003

 

Between

 

U.S. BANK NATIONAL
ASSOCIATION, not in its individual capacity, but solely as successor Owner
Trustee to State Street Bank and Trust Company of Connecticut, National Association,
under the Amended and Restated Trust Agreement (1997-D) dated as of May 23,
2003 and PATRICK
E. THEBADO, not in his individual capacity, but solely as successor Co-Trustee
to Dori Anne Seakas, as successor Co-Trustee to Traci Hopkins, under
the Amended and Restated Trust Agreement (1997-D) dated as of May 23,
2003,

as Lessor,

 

and

 

BANK OF AMERICA,
N.A.

as Lessee

 

Office Buildings
Located in the

Southeastern United
States

 

TO THE EXTENT THAT THIS
AMENDED AND RESTATED LEASE AGREEMENT CONSTITUTES CHATTEL PAPER (AS SUCH TERM IS
DEFINED IN THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN ANY APPLICABLE
JURISDICTION), NO SECURITY INTEREST IN THIS AMENDED AND RESTATED LEASE
AGREEMENT MAY BE CREATED THROUGH THE TRANSFER OR POSSESSION OF ANY COUNTERPART OTHER
THAN ORIGINAL COUNTERPART NO. 1 THAT CONTAINS THE RECEIPT THEREFOR
EXECUTED BY WELLS FARGO BANK NORTHWEST, NATIONAL ASSOCIATION, AS INDENTURE
TRUSTEE, ON OR FOLLOWING THE SIGNATURE PAGE THEREOF.

 

 

CONTENTS

 

	
  Section

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  DEFINITIONS

  	
  1

  
	
  2.

  	
  LEASE OF THE PROPERTIES;
  RESTATEMENT

  	
  1

  
	
   

  	
  2.1

  	
  Ownership
  and Lease

  	
  1

  
	
   

  	
  2.2

  	
  Demise
  and Lease

  	
  2

  
	
   

  	
  2.3

  	
  Restatement

  	
  2

  
	
  3.

  	
  RENT; FMV LEASE

  	
  2

  
	
   

  	
  3.1

  	
  Basic
  Rent; FMV Lease

  	
  2

  
	
   

  	
  3.2

  	
  Supplemental
  Rent

  	
  4

  
	
   

  	
  3.3

  	
  Method
  of Payment

  	
  4

  
	
   

  	
  3.4

  	
  Late
  Payment

  	
  5

  
	
   

  	
  3.5

  	
  Net
  Lease; No Setoff; Etc.

  	
  5

  
	
   

  	
  3.6

  	
  Limitations
  on Rent

  	
  6

  
	
  4.

  	
  RECOMPUTATIONS

  	
  7

  
	
   

  	
  4.1

  	
  Adjustments

  	
  7

  
	
   

  	
  4.2

  	
  Methodology
  for Adjustments

  	
  7

  
	
   

  	
  4.3

  	
  Supplements

  	
  7

  
	
  5.

  	
  RENEWAL OPTIONS

  	
  7

  
	
   

  	
  5.1

  	
  Renewal
  Options

  	
  7

  
	
   

  	
  5.2

  	
  Lease
  Provisions Applicable

  	
  9

  
	
  6.

  	
  EARLY TERMINATION;

  	
  9

  
	
   

  	
  6.1

  	
  Early
  Termination Options

  	
  9

  
	
   

  	
  6.2

  	
  Obsolescence
  Termination

  	
  13

  
	
   

  	
  6.3

  	
  Effect
  of Termination

  	
  14

  
	
   

  	
  6.4

  	
  Adjustment
  of Termination Percentages

  	
  14

  
	
   

  	
  6.5

  	
  Demising
  Work

  	
  15

  
	
   

  	
  6.6

  	
  Sublessee
  Options

  	
  16

  
	
  7.

  	
  CONDITION AND USE OF PROPERTIES

  	
  17

  
	
   

  	
  7.1

  	
  Waivers

  	
  17

  
	
  8.

  	
  LIENS; TAXES

  	
  18

  
	
   

  	
  8.1

  	
  Liens

  	
  18

  
	
   

  	
  8.2

  	
  Taxes

  	
  19

  
	
  9.

  	
  MAINTENANCE AND REPAIR;
  ALTERATIONS, MODIFICATIONS AND ADDITIONS

  	
  20

  
	
   

  	
  9.1

  	
  Maintenance
  and Repair

  	
  20

  
	
   

  	
  9.2

  	
  Alterations

  	
  21

  
	
   

  	
  9.3

  	
  Title
  to Alterations

  	
  24

  
	
   

  	
  9.4

  	
  Permitted
  Contests

  	
  24

  
	
   

  	
  9.5

  	
  Environmental
  Compliance

  	
  25

  
	
  10.

  	
  USE AND LOCATION

  	
  25

  
	
   

  	
  10.1

  	
  Location

  	
  25

  
	
   

  	
  10.2

  	
  Use

  	
  26

  
	
  11.

  	
  INSURANCE

  	
  26

  
	
   

  	
  11.1

  	
  Coverage

  	
  26

  
	
   

  	
  11.2

  	
  Policy
  Provisions

  	
  27

  
	
   

  	
  11.3

  	
  Evidence
  of Insurance

  	
  29

  

 

i

 

	
  12.

  	
  RETURN OF LEASED PROPERTY

  	
  29

  
	
  13.

  	
  ASSIGNMENT

  	
  30

  
	
  14.

  	
  LOSS, DESTRUCTION, CONDEMNATION OR
  DAMAGE

  	
  30

  
	
   

  	
  14.1

  	
  Payment
  of Stipulated Loss Value on an Event of Loss

  	
  30

  
	
   

  	
  14.2

  	
  Application
  of Payments When Lease Continues

  	
  32

  
	
   

  	
  14.3

  	
  Payment
  of Stipulated Loss Value on an Event of Taking

  	
  32

  
	
   

  	
  14.4

  	
  Application
  of Certain Payments Not Relating to an Event of Taking

  	
  33

  
	
   

  	
  14.5

  	
  Other
  Dispositions

  	
  34

  
	
   

  	
  14.6

  	
  Negotiations

  	
  34

  
	
   

  	
  14.7

  	
  No
  Rent Abatement

  	
  34

  
	
   

  	
  14.8

  	
  Investment

  	
  34

  
	
  15.

  	
  INTEREST CONVEYED TO LESSEE

  	
  34

  
	
  16.

  	
  SUBLEASE

  	
  35

  
	
   

  	
  16.1

  	
  Sublease
  Requirements

  	
  35

  
	
   

  	
  16.2

  	
  Assignment
  of Subleases

  	
  38

  
	
   

  	
  16.3

  	
  Sublessor
  Improvements

  	
  38

  
	
  17.

  	
  INSPECTION, REPORTS AND NOTICES

  	
  39

  
	
   

  	
  17.1

  	
  Inspection

  	
  39

  
	
   

  	
  17.2

  	
  Reports

  	
  39

  
	
   

  	
  17.3

  	
  Notices
  from Governmental Authorities

  	
  39

  
	
  18.

  	
  LEASE EVENTS OF DEFAULT

  	
  39

  
	
  19.

  	
  ENFORCEMENT

  	
  41

  
	
   

  	
  19.1

  	
  Remedies

  	
  41

  
	
   

  	
  19.2

  	
  Survival
  of the Lessee’s Obligations

  	
  43

  
	
   

  	
  19.3

  	
  Remedies
  Cumulative; No Waiver; Consents

  	
  44

  
	
  20.

  	
  RIGHT TO PERFORM FOR THE
  LESSEE

  	
  44

  
	
  21.

  	
  MISCELLANEOUS

  	
  44

  
	
   

  	
  21.1

  	
  Binding
  Effect; Successors and Assigns; Survival

  	
  44

  
	
   

  	
  21.2

  	
  Quiet
  Enjoyment

  	
  45

  
	
   

  	
  21.3

  	
  Notices

  	
  45

  
	
   

  	
  21.4

  	
  Severability

  	
  45

  
	
   

  	
  21.5

  	
  Amendment;
  Complete Agreements

  	
  45

  
	
   

  	
  21.6

  	
  Headings

  	
  46

  
	
   

  	
  21.7

  	
  Counterparts

  	
  46

  
	
   

  	
  21.8

  	
  Governing
  Law

  	
  46

  
	
   

  	
  21.9

  	
  Apportionments

  	
  46

  
	
   

  	
  21.10

  	
  Discharge
  of the Lessee’s Obligations by its Sublessees

  	
  46

  
	
   

  	
  21.11

  	
  Nature
  of Lessor’s Obligations

  	
  46

  
	
   

  	
  21.12

  	
  Estoppel
  Certificates

  	
  47

  
	
   

  	
  21.13

  	
  Granting
  of Easements

  	
  47

  
	
   

  	
  21.14

  	
  No
  Joint Venture

  	
  48

  
	
   

  	
  21.15

  	
  No
  Accord and Satisfaction

  	
  48

  
	
   

  	
  21.16

  	
  No
  Merger

  	
  48

  
	
   

  	
  21.17

  	
  Investment
  of Funds

  	
  48

  
	
   

  	
  21.18

  	
  True
  Lease

  	
  49

  

 

ii

 

	
  Appendix A

  	
  Definitions

  
	
   

  	
   

  
	
  Exhibit A

  	
  Form of FMV Lease

  
	
  Exhibit B

  	
  Form of Sublease

  
	
  Exhibit C

  	
  Form of Bank
  Branch Lease

  
	
  Exhibit D

  	
  Form of
  Subordination, Non-Disturbance And Attornment Agreement

  
	
  Exhibit E

  	
  Form of AFR
  Sublease

  
	
  Exhibit F

  	
  Form of Partial Occupancy Lease

  
	
  Schedule 1

  	
  Stipulated Loss Value

  
	
  Schedule 2

  	
  Section 9.2(d) Dates

  
	
  Schedule 3

  	
  Land and Improvement
  Description and Lessor’s Cost

  
	
  Schedule 4

  	
  Basic Rent

  

 

iii

 

AMENDED AND RESTATED LEASE AGREEMENT (this Lease)  dated as of May 23, 2003

 

BETWEEN:

 

(1)                                  U.S. BANK NATIONAL ASSOCIATION, not in its
individual capacity, but solely as successor Owner Trustee (the  Owner Trustee) to State Street Bank and
Trust Company of Connecticut, National Association, under the Amended and
Restated Trust Agreement (1997-D) dated as of May 23, 2003  (the Trust Agreement (1997-D))
and
PATRICK
E. THEBADO, not
in his individual capacity, but solely as successor Co-Trustee (the Co-Trustee) to Dori Anne Seakas, as successor Co-Trustee to
Traci Hopkins, under the Trust Agreement (1997-D) (the Owner Trustee as the lessor of the
Lessor Properties in states other than the Co-Trustee States and the Co-Trustee
as the lessor of the Lessor Properties in the Co-Trustee States separately or together,
as applicable, the Lessor); and

 

(2)                                  BANK OF AMERICA, N.A., a national banking association, as the
lessee (the Lessee).

 

WHEREAS

 

(A)                              the Lessee (as successor to Nationsbank,
N.A.) was a party to each of (i) that certain Lease Agreement (1997-C) dated
as of June 4, 1997 (Lease C) with
State Street Bank and Trust Company of Connecticut, National Association, as
owner trustee under the Trust Agreement (1997-C) dated as of June 4,
1997 (the Trust Agreement (1997-C)), and Traci Hopkins, as co-trustee under
Trust Agreement (1997-C) (together the C Lessor) and (ii) that
certain Lease Agreement (1997-D) dated as of June 4, 1997 (Lease D) with Lessor;

 

(B)                                the Owner Trustee in its capacity as
owner trustee under Trust Agreement (1997-D) has acquired (i) all interest
of the C Lessor in the Properties and in Lease C; and (ii) all interest of
each of REMAN 1997-C, Inc. and REMAN 1997-D, Inc. in the Properties;
and

 

(C)                                the Lessor and the Lessee wish to amend
and restate both of Lease C and Lease D in this Lease.

 

In consideration of the mutual agreements herein
contained and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto, intending to be legally bound, hereby agree
as follows:

 

1.                                      DEFINITIONS

 

The capitalized terms used herein and not otherwise
defined shall have the meanings assigned thereto in Appendix A hereto for all
purposes hereof.

 

2.                                      LEASE OF THE
PROPERTIES; RESTATEMENT

 

2.1                               Ownership and Lease

 

The parties acknowledge that this Lease constitutes a
lease of, and creates in the Lessee as described in Section 2.2 a
leasehold estate in and to the Properties.

 

 

2.2                               Demise and Lease

 

Since the Original Closing Date the Lessor and its
predecessors in interest have demised and leased, and on the Closing Date, the
Lessor shall continue to demise and lease, all of its right, title and interest
in and to the Properties listed in Schedule 3 hereto to the Lessee, and since
the Original Closing Date the Lessee has rented and leased, and on the Closing
Date the Lessee shall continue to rent and lease, the respective Properties
from the Lessor, for the Basic Term and, subject to the exercise by the Lessee
of its renewal options as provided in and in accordance with Article 5
hereof, for the Renewal Terms, unless earlier terminated in accordance with the
provisions of this Lease.  The Lessee may
from time to time own or hold under lease from Persons other than the Lessor,
furniture, trade fixtures, equipment and other personalty located on or about
the Properties that are not subject to this Lease.  The Lessor shall from time to time, upon the
reasonable request of the Lessee, at the Lessee’s expense, promptly acknowledge
in writing to the Lessee or other Persons that the Lessor does not own or have
any other right or interest in or to such furniture, trade fixtures, personalty
and equipment. The demise and lease of the Properties pursuant to this Article 2
shall include any additional right, title or interest in the Properties which
may at any time be acquired by the Lessor.

 

2.3                               Restatement

 

The Original Leases are hereby amended and restated by
this Lease without any interruption and with all rights and obligations
accruing prior to the date hereof continuing after the date hereof under this
Lease.

 

3.                                      RENT; FMV LEASE

 

3.1                               Basic Rent; FMV Lease

 

(a)                                                 Lessee
shall pay to Lessor Basic Rent for the Properties subject to this Lease equal
to the sum of the Scheduled Basic Rent and the Additional Basic Rent.  Scheduled Basic Rent
shall equal on each Rent Payment Date during the Basic Term the amounts for the
periods shown in Schedule 4 hereto (which amounts shall be subject to
adjustment pursuant to Article 4 hereof). 
If for any reason a Property is terminated from this Lease pursuant to a
Terminating Event, Scheduled Basic Rent on and after the date of such
termination shall be (x) the Scheduled Basic Rent as in effect just prior
to such termination less an amount calculated by multiplying (y) such
Scheduled Basic Rent by a fraction (z) the numerator of which is the
Lessor’s Cost of such Property and the denominator of which is Assumed Lessor’s
Cost.

 

(b)                                                The
Scheduled Basic Rent amounts set forth on Schedule 4 hereto have been computed
based on the assumption, inter alia, that the Lessee will elect to terminate
this Lease (or exercise its option to sublease pursuant to Section 6.1(f))
with respect to certain Properties at the earliest dates and in the highest
percentages permitted in accordance with Section 6.1(a) hereof.  Should the Lessee not so elect, or elect to
terminate this Lease (or exercise its option to sublease pursuant to Section 6.1(f))
with respect to some Properties but less than the maximum percentages set forth
in such Section 6.1(a) on an Anniversary, then Basic Rent payable on
each Rent Payment Date (which for this purpose means every date shown on
Schedule 4 hereto after such Anniversary and for such period of time as there
remain more Properties subject to this Lease (and not subject to a sublease
pursuant to Section 6.1(f)) than the Lessee is permitted to terminate
pursuant to Section 6.1(a)), including the Basic Rent due on the Rent
Payment Date on which such Property is terminated, shall be increased by one
twelfth of the Average Annual Rent Factor multiplied by 

 

2

 

the cumulative amount of
Lessor’s Cost of the Properties (or portion thereof) permitted by Section 6.1(a) of
this Lease to be terminated (or so subleased) under this Lease as of such Rent
Payment Date, but not then so terminated (or so subleased) (such increase being
referred to as Additional Basic Rent).

 

(c)                                                 In
the event Lessee is permitted under Section 6.1(a) of this Lease to
terminate this Lease as to one or more Properties, but Lessee has not elected
to do so, Lessee may, subject to the terms of Section 3.1(d), by notice to
Lessor at least 180 days prior to any Anniversary, terminate such Property or
Properties from this Lease (any Properties so terminated, the FMV Properties), in which event, effective as of such
Anniversary, (i) the FMV Properties will be terminated from this Lease, (ii) a
Termination Transferee, and Lessee shall enter into a FMV Lease with respect to
such FMV Properties or, subject to Section 3.1(f), portions thereof, and (iii) the
Basic Rent for each such FMV Property (or portion thereof) shall (from and
after such Anniversary during the remainder of the Basic Term and any Renewal
Term under the applicable FMV Lease) be equal to the Fair Market Rental Value
of such FMV Property (or portion thereof). 
Such notice may be revoked by the Lessee for any reason up to 60 days
prior to such Anniversary.  Each FMV
Lease shall be for a term selected by the Lessee which is not less than five,
nor more than ten years, and at the end of such term may be terminated or
renewed with rent calculations as described above in this paragraph.  FMV Properties shall be considered to have
been terminated from this Lease for purposes of determining whether or not the Total
Joint Maximum Cumulative Percentages set forth in Section 6.1(a) have
been exceeded and for purposes of Section 3.1(a) and (b), it being
understood that Properties with respect to which a termination notice has been
so revoked shall not be considered to have been so terminated from this Lease
for such purposes.   For the avoidance of
doubt, the Basic Rent amounts payable on any Rent Payment Date shall not be
reduced in connection with or as a result of any termination of one or more FMV
Properties from this Lease.  At any time
between 360 days and 180 days before an Anniversary the Lessee may initiate the
Appraisal Procedure to determine the Fair Market Rental Value for one or more
Properties (or any portion thereof) to assist the Lessee in determining whether
to enter into a FMV Lease with respect thereto and the Lessor and the Owner
Participant shall cooperate with such request.

 

(d)                                                If
this Lease is terminated as to a Property pursuant to Section 3.1(c) at
a time when the Security Documents are in effect and at a time when such
Property shall be released from the Lien of the Security Documents in
accordance with Section 11.01 of the Indenture or with the written consent
of the Indenture Trustee, upon such termination, such Property shall be
transferred by the Lessor to a Termination Transferee, in all cases at the cost
and expense of the Owner Participant (but with Transfer and similar taxes being
apportioned between Owner Participant and Lessee if the transfer is to the
Recourse Guarantor or an Affiliate of the Recourse Guarantor with Lessee paying
such portion of the Transfer and similar taxes as are determined by multiplying
such taxes by a fraction, the numberator of which is the Lessor’s Cost of the
portion of the FMV Property subject to the FMV Lease and the denominator of
which is the total Lessor’s Cost of the FMV Property).  When an FMV Property is terminated from this
Lease, so long as no Special Default or Lease Event of Default is continuing at
the time of such termination, it shall become subject to a FMV Lease between a
Termination Transferee and the Lessee. 
The Lessee and, as a condition to such transfer, such Termination
Transferee shall execute and deliver, subject to satisfaction of the conditions
set forth in paragraph (e) below, an FMV Lease for each such FMV Property
(or, subject to Section 3.1(f), a portion thereof selected by the Lessee)
prior to the commencement of the FMV Lease Term.

 

3

 

(e)                                                 As
a condition to a Termination Transferee entering into an FMV Lease, the Lessee
shall deliver to such Termination Transferee (i) an opinion of an in-house
counsel to Lessee regarding such FMV Lease of the same scope as that delivered
on the Original Closing Date and (ii) an Officer’s Certificate that no Lease
Event of Default or Special Default is continuing.

 

(f)                                                   A
portion of any Property (as opposed to such Property in its entirety) can only
be included as a FMV Property if (i) such portion consists of one or more
entire floors of the relevant Property and does not include any partial floors
and (ii) the Security Documents are no longer in effect or the relevant
Property shall from and after the date of the proposed FMV Lease be released
from the Lien of the Security Documents in accordance with Section 11.01
of the Indenture or with the written consent of the Indenture Trustee.

 

(g)                                                In
the event that a FMV Lease with respect to a portion of a Property can not be
entered into as a result of the failure of the conditions set forth in Section 3.1(f)(ii) 
to be satisfied, this Lease will not be terminated with respect to such
Property pursuant to Section 3.1(c) and the Lessee shall have the
option to sublease the portion of such Property which the Lessee did not wish
to lease pursuant to the proposed FMV Lease, to a Termination Transferee
selected by the Lessor (which must either be the Recourse Guarantor or an
entity guaranteed by the Recourse Guarantor) and the Lessor shall permit such
sublease pursuant to an AFR Sublease. 
Any portion of a Property subleased to a Termination Transferee pursuant
to an AFR Sublease shall be considered to have been terminated from this Lease
for purposes of determining whether or not the Total Joint Maximum Cumulative
Percentages in Section 6.1(a) have been exceeded and for purposes of Section 3.1(a) and
(b).

 

3.2                               Supplemental Rent

 

The Lessee shall pay to the Lessor, or to whomever
shall be entitled thereto as expressly provided herein or in any other
Operative Document to which the Lessee is a party, any and all Supplemental
Rent promptly as the same shall become due and payable and in the event of any
failure on the part of the Lessee timely to pay any Supplemental Rent (taking
into account any applicable notice and cure period requirements), the Lessor
shall have all of the same rights, powers and remedies as are provided for
herein or by law or in equity or otherwise in the case of nonpayment of Basic
Rent.  All Supplemental Rent to be paid
pursuant to this Section 3.2 shall be payable in the type of funds and in
the manner set forth in Section 3.3. 
As further Supplemental Rent, Lessee shall pay the Redemption Premium
arising as the result of the prepayment of any Secured Note pursuant to clauses
(b), (c), (d) or (f) of Section 2.04 of the Indenture, if any,
when due and payable under the Security Documents.

 

3.3                               Method of Payment

 

Basic Rent and Supplemental Rent (to the extent
payable to the Lessor) shall be paid to the Lessor at the place in the United
States specified by the Lessor.  Payments
to the Lessor shall be made to Lessor’s Account at US Bank, NA; ABA #:
091-000-022; A/C #: 173103321092; f/c: US Bank A/C # MAN4462; Ref: Nationsbank
1997 Series, which location may be changed from time to time by at least ten (10) Business
Days’ prior written notice from the Lessor; provided, that (x) until
the Lien of the Security Documents has been discharged in accordance with Section 11.01
of the Indenture or the terms of the Maryland Security Documents, as
applicable, except as provided in the following clause (y), all Rent shall be
payable directly to the Indenture Trustee at such account in the United States
as specified in writing by the Indenture Trustee pursuant to the terms of the
Indenture and (y) Excepted Payments shall be payable directly to the
Person entitled 

 

4

 

thereto.  Each
payment of Rent shall be made by the Lessee in funds consisting of lawful
currency of the United States of America which shall be immediately available
prior to 11:00 a.m. New York City time on the scheduled date when such
payment shall be due, unless such scheduled date shall not be a Business Day,
in which case such payment shall be made on the next succeeding Business Day,
with the same force and effect as though made on such scheduled date and
(provided such payment is made on such next succeeding Business Day) no
interest shall accrue on the amount of such payment from and after such
scheduled date to the time of such payment on such next succeeding Business
Day.

 

3.4                               Late Payment

 

If any Rent shall not be paid when due, the Lessee
shall pay to the Lessor (or, in the case of Supplemental Rent, to whomever
shall be entitled thereto) as Supplemental Rent, interest (to the maximum
extent permitted by law) on such overdue amount from and including the due date
thereof to but excluding the Business Day of payment thereof (unless such
payment shall be made after 11:00 a.m. New York City time, on such date of
payment, in which case such date of payment shall be included) at the Overdue
Rate.  If any Rent shall be paid on the
date when due, but after 11:00 a.m. New York City time, interest shall be
payable as aforesaid for one day.

 

3.5                               Net Lease; No Setoff; Etc.

 

This Lease is a net lease and, notwithstanding any
other provision of this Lease or any other Operative Document, it is intended
that Basic Rent and Supplemental Rent and any other amounts payable hereunder
shall be paid without, and the rights of the Lessor in and to all such amounts
shall not be subject to, counterclaim, setoff, deduction or defense and without
abatement, suspension, deferment, diminution or reduction, and the Lessee’s
obligation to pay all such amounts, throughout the Basic Term and all
applicable Renewal Terms, is absolute and unconditional.  Except to the extent otherwise expressly
specified in Article IX of the Participation Agreement or in Sections 4.1,
19.1(c), 19.1(d), 19.1(e) or 19.1(f) or Article 6 or 14 of this
Lease, the obligations and liabilities of the Lessee hereunder shall in no way
be released, discharged or otherwise affected for any reason, including without
limitation: (a) any defect in the condition, merchantability, design,
quality or fitness for use of the Properties or any part thereof or any failure
of the Properties to comply with plans and specifications, or the failure of
the Properties or any part thereof or the plans and specifications to comply
with all Applicable Laws and Regulations, including any inability to occupy or
use the Properties or any part thereof by reason of such noncompliance; (b) any
damage to, removal, abandonment, salvage, loss, scrapping or destruction of or
any requisition or taking of the Properties or any part thereof or any
environmental conditions on the Properties including the presence of Hazardous
Materials at, on or under the Properties or any part thereof or any property in
the vicinity of the Properties; (c) any restriction, prevention or
curtailment of or interference with any use of the Properties or any part
thereof including eviction; (d) any defect in title to or rights to the
Properties or any part thereof or any Lien on such title or rights or on the
Properties or any part thereof; (e) any change, waiver, extension,
indulgence or other action or omission or breach in respect of any obligation
or liability of or by the Lessor, the Owner Participant, the Indenture Trustee
or any other Person; (f) any bankruptcy, insolvency, reorganization,
composition, adjustment, dissolution, liquidation or other like proceedings
relating to the Lessee, the Lessor, the Owner Participant, the Indenture
Trustee or any other Person, or any action taken with respect to this Lease by
any trustee or receiver of the Lessee, the Lessor, the Owner Participant, the
Indenture Trustee or any other Person, or by any court, in any such proceeding;
(g) any claim that the Lessee has or might have against any Person,
including without limitation the Lessor, the Owner Participant, any vendor, 

 

5

 

manufacturer, contractor of or for any Improvement or
the Indenture Trustee; (h) any failure on the part of the Lessor to
perform or comply with any of the terms of this Lease, any other Operative
Document or of any other agreement whether or not related to the Overall
Transaction; (i) any invalidity or unenforceability or disaffirmance of
this Lease against or by the Lessee or any provision hereof or any of the other
Operative Documents or any provision of any thereof; (j) the impossibility
of performance by any one or more of the Lessee, the Lessor, the Owner
Participant, or any other Person; (k) any action by any court,
administrative agency or other Governmental Authority; (l) any claim by
any Person based upon a failure to record this Lease (or any memorandum or
short form agreement with respect to this Lease) or the Indenture or to file
precautionary financing statements with respect to the Lease in the State of
Maryland, including any termination or attempted termination of the Lessee’s
rights to possession of any or all of the Properties located in such state in
connection with the assertion of such claim; or (m) any other occurrence
whatsoever, whether similar or dissimilar to the foregoing, whether or not the
Lessee shall have notice or knowledge of any of the foregoing.  Except as specifically set forth in Article 6
or 14 of this Lease or Article IX of the Participation Agreement, this
Lease shall be noncancelable by the Lessee for any reason whatsoever and,
except as expressly provided in Section 4.1 or Article 6 or 14 of
this Lease or Article IX of the Participation Agreement, the Lessee, to
the extent permitted by Applicable Laws and Regulations, waives all rights now
or hereinafter conferred by Applicable Laws and Regulations or otherwise to
quit, terminate or surrender this Lease, or to any diminution, abatement or
reduction of Rent payable by the Lessee hereunder.  If for any reason whatsoever this Lease shall
be terminated in whole or in part by operation of law or otherwise except as
expressly provided in Section 19.1(a), 19.1(c), 19.1(d), 19.1(e), 19.1(f) or
Article 6 or 14 of this Lease or Article IX of the Participation
Agreement, the Lessee shall, unless prohibited by Applicable Laws and
Regulations, nonetheless pay to the Indenture Trustee (if the Security
Documents are still in effect or, if not, to the Lessor) (or, in the case of
Supplemental Rent, to whomever shall be entitled thereto) an amount equal to
each Rent payment at the time and in the manner that such payment would have
become due and payable under the terms of this Lease if it had not been
terminated in whole or in part, and in such case, so long as such payments are
made and no Lease Event of Default shall have occurred and be continuing, the
Lessor will deem this Lease to have remained in effect.

 

3.6                               Limitations on Rent

 

Notwithstanding anything in this Lease to the
contrary, (a) at each time when Stipulated Loss Value is payable by the
Lessee pursuant to this Lease, the sum of the following amounts shall be at
least sufficient to pay in full the aggregate unpaid principal amount then due
on the Outstanding Notes plus accrued interest and Redemption Premium (arising
as the result of the prepayment of any Secured Note pursuant to clauses (b),
(c), (d) or (f) of Section 2.04 of the Indenture), if any, due
thereon at such time:  (i) Stipulated
Loss Value payable under this Lease at such time, (ii) all Basic Rent
accrued and payable under this Lease at such time, and (iii) all other
amounts unconditionally payable by the Lessee under this Lease in connection
with such payment of Stipulated Loss Value on or prior to the date for payment
thereof; and (b) at each time when Basic Rent shall be payable by the
Lessee pursuant to this Lease, the amount of Basic Rent payable on each Rent
Payment Date shall be equal to or greater than the aggregate amount of
principal and accrued interest which becomes due and payable on the Notes on
such Rent Payment Date; provided that payments due from the Lessee shall
not be increased by reason of this Section 3.6 as a result of a Lessor Lien,
or as a result of any amendment or supplement to the Operative Documents to
which the Lessee did not consent.

 

6

 

3.7                               Florida Sales Tax on Rent.

 

Simultaneously with each payment of Rent due hereunder
with respect to any Property located in the State of Florida, Lessee shall pay
to Lessor all applicable Florida sales tax and any local surtaxes due on such
Rent payment, provided that so long as there shall be in effect with respect to
any such Property a certificate of direct payment authority issued to Lessee by
the Florida Department of Revenue, Lessee shall instead self-accrue and remit
all such sales tax and local surtaxes due on Rent payments with respect to such
Property directly to the Florida Department of Revenue and shall simultaneously
deliver to Lessor copies of all documentation delivered to the Florida
Department of Revenue with respect to each such payment.  In the event of any non-payment of the taxes
required to be paid under this Section 3.7, Lessor shall have all the
rights and remedies provided for herein or at law in the case of non-payment of
Rent.

 

4.                                      RECOMPUTATIONS

 

4.1                               Adjustments

 

The Basic Rent amounts and Stipulated Loss Values are
subject to adjustment in accordance with Section 4.2 in the event of any
issuance of Additional Notes pursuant to Section 11.1(b) of the
Participation Agreement.

 

4.2                               Methodology for Adjustments

 

In the event Additional Notes are issued pursuant to Section 11.1
of the Participation Agreement, (a) the Basic Rent scheduled to be due
after such issuance shall increase by the amount of the scheduled debt service
due under such Additional Notes and (b) Stipulated Loss Values shall
increase on each Stipulated Loss Value Date after such issuance by the amount
of principal scheduled to be outstanding and the amount of interest scheduled
to be accrued on such Additional Notes on such Stipulated Loss Value Date after
taking into account any Basic Rent due on such Stipulated Loss Value Date.

 

4.3                               Supplements

 

The Lessor and the Lessee shall execute and deliver a
supplement to this Lease and, if necessary, the Lessor shall execute and
deliver a supplement to the Indenture and the Maryland Security Documents, if
applicable, to reflect each such adjustment, provided that each such
adjustment shall be effective for all purposes of this Lease regardless of
whether either such supplement is actually executed and delivered.

 

5.                                      RENEWAL OPTIONS

 

5.1                               Renewal Options

 

So long as no Special Default or Lease Event of
Default shall have occurred and be continuing at the time(s) the Lessee
elects in writing to exercise its renewal option(s) hereunder and at the
commencement of the applicable Renewal Term, the Lessor hereby grants to the
Lessee an option to renew this Lease for one or more Properties which remain
subject to this Lease at the time of notice and at the time of renewal (a) subject
to the succeeding paragraph of this Section 5.1, for up to three
successive terms of five years each during which Basic Rent shall be equal to
the Fixed Rate Renewal Rent (each such renewal term being referred to
hereinafter as a Fixed Rate 

 

7

 

Renewal Term) or (b) at the expiration of the Fixed Rate
Renewal Terms and any Fair Market Value Renewal Term for a term selected by the
Lessee during which Basic Rent shall be equal to the Fair Market Rental Value
of the Property or Properties which the Lessee elects to be renewed (each such
renewal term being referred to hereinafter as a Fair Market
Value Renewal Term; each of the Fixed Rate Renewal Terms and each of
the Fair Market Value Renewal Terms are referred to hereinafter as Renewal Terms); provided that the Fair Market Value Renewal
Terms shall be not less than five, nor more than ten years and shall not exceed
the useful life of the Improvements constituting part of the Properties being
renewed as determined by the Appraisal Procedure at the time of the renewal.

 

Notwithstanding the foregoing, Lessee may renew the
Properties located at (i) 225 North Calvert Street, Baltimore, (ii) 340
Columbia Pike, Arlington, (iii) 1111 East Main Street, Richmond, (iv) 830
Central Avenue, St. Petersburg, (v) 12125 Veirs Mill Road, Silver Springs,
(vi) 2059 Northlake Parkway, Tucker, (vii) One Commercial Place,
Norfolk and (viii) Two Commercial Place, Norfolk (Properties described in
clauses (i)-(iv), the One Year Properties;
Properties described in clause (v) the Four Year
Properties; and all such Properties, the Wintergreen
Properties) for only two Fixed Rate Renewal Terms of five years
each.  If the Lessee desires to renew any
One Year Property or any Wintergreen Property described in clauses (vi)-(viii) at
the end of the second Fixed Rate Renewal Term, it may either (a) exercise
its renewal option (as described in the prior paragraph) for a Fair Market
Renewal Term (except that, in the case of a One Year Property, the Basic Rent
during the first year of such Renewal Term shall be the Fixed Rate Renewal Rent
with respect to such Property and during the remaining years of such Renewal
Term shall be the Fair Market Rental Value as determined prior to the
commencement of such Renewal Term) or (b) elect (in its renewal notice) to
have such One Year Property or such Wintergreen Property, as applicable,
appraised by an Appraiser to make the determinations referred to below as to
its then expected remaining useful life and expected residual value.  Following such appraisal the Lessee may renew
this Lease for a five year Renewal Term for such One Year Property or such
Wintergreen Property, as applicable.  The
Basic Rent during such Renewal Term shall be the Fixed Rate Renewal Rent for
the Maximum Term, and for the balance of such Renewal Term shall be the Fair
Market Rental Value of such One Year Property or such Wintergreen Property, as
applicable, as determined prior to the commencement of such Renewal Term.  Maximum Term
for each of the One Year Properties and for each of the Wintergreen Properties
described in clauses (vi)-(viii) means the lesser of five years and the
period ending on the date as of which such Appraiser determines that (A) the
sum of the Basic Term, the Fixed Rate Renewal Terms and such Maximum Term does
not exceed eighty percent of such Property’s remaining economic useful life as
of the Original Closing Date, and (B) the expected residual value of such
One Year Property or such Wintergreen Property at the end of the Maximum Term
is not less than 20 percent of the Lessor’s Cost for such One Year Property or
such Wintergreen Property, determined without regard to the effects of
inflation or deflation from the Original Closing Date.  If the Lessee desires to renew any Four Year
Property at the end of the second Fixed Rate Renewal Term, it may exercise its
renewal option (as described in the prior paragraph) for a Renewal Term of five
years during which the Basic Rent for the first four years of the Renewal Term
shall be the Fixed Rate Renewal Rent and for the last year of the Renewal Term
shall be the Fair Market Rental Value for such period, determined at the time
of the renewal.  At the end of any such
third Renewal Term with respect to any Wintergreen Property the Lessee may
exercise Fair Market Renewal Terms as described in the prior paragraph.

 

If the Lessor and the Lessee cannot agree on the
amount of the Fair Market Rental Value, such Fair Market Rental Value shall be
determined by the Appraisal Procedure. 
The first Renewal Term for a Property shall commence at the expiration
of the Basic Term and each other Renewal 

 

8

 

Term for such Property to commence at the expiration
of the preceding Renewal Term; provided, however, that in order
to exercise such option to renew this Lease for any Renewal Term, the Lessee
shall give the Lessor written notice of its election to renew at least 360 days
prior to the expiration of the Basic Term or the Renewal Term then in effect,
as the case may be, provided that such notice may be revoked by the Lessee for
any reason so long as the Lessor has no less than 270 days’ irrevocable notice
of such revocation prior to the commencement of the new Renewal Term.  The Lessee shall have no right to extend the
Lease Term except as provided in this Article 5.  During the Renewal Terms, Basic Rent for the
Properties shall be payable to the Lessor by the Lessee semiannually, in
advance, on the Rent Payment Dates.

 

5.2                               Lease Provisions Applicable

 

All the provisions of this Lease shall be applicable
during each Renewal Term, except (a) the amount of each installment of
Basic Rent which shall be determined as provided in Section 5.1 hereof and
(b) the Stipulated Loss Values for the Properties shall for all Renewal
Terms be equal to the Stipulated Loss Value for such Properties on the last day
of the Basic Term.

 

6.                                      EARLY TERMINATION;

 

6.1                               Early Termination Options

 

(a)                                                 The
Lessee, for any reason, in its sole discretion, on an Anniversary, or annually
thereafter on any anniversary of an Anniversary, provided that at least 360
days’ prior written notice is provided to the Lessor (provided that such notice
may be revoked by the Lessee for any reason prior to the date which is 270 days
before the relevant Anniversary or anniversary or as permitted pursuant to Section 6.1(d))
may terminate this Lease in accordance with this Section 6.1 as to any
entire Property or Properties, in each case, only if such Property or
Properties are not subject to an Event of Loss or Event of Taking or any event
which with the giving of notice or the lapse of time or both would constitute
an Event of Loss or Event of Taking. 
Except as otherwise provided herein, if the Lessee so elects to
terminate this Lease, the Lessee shall vacate such Property (unless it becomes
subject to a Partial Occupancy Lease or a FMV Lease) on or before the
Anniversary or anniversary on which this Lease shall terminate with respect
thereto and return such Property to Lessor in accordance with Article 12
of this Lease.  In the case of a termination
relating to one or more of the Bank Branch Properties, if the Lessee so elects
in the termination notice, the bank lobby space located in some or all of the
Bank Branch Property or Bank Branch Properties to be terminated will then
become subject to a Bank Branch Lease. 
The sum of (i) the Lessor’s Cost for such Property or Properties to
be terminated pursuant to this Section 6.1(a) (and for the portion of
any Property or Properties to be subleased pursuant to an AFR Sublease), plus
(ii) the Lessor’s Cost for any other Property or Properties previously so
terminated pursuant to this Section 6.1(a) (and any portion of any
Property or Properties previously subleased pursuant to an AFR Sublease and for
any FMV Property or FMV Properties terminated pursuant to Section 3.1(c)),
plus (iii) $12,996,720 (which amount represents four percent (4%)
of Total Original Lessor’s Cost which will not be terminated pursuant to this Section 6.1(a) but
was terminated pursuant to the Original Leases prior to the date hereof, less
(iv) the Lessor’s Cost for any portion of any Property or Properties
leased to the Lessee pursuant to a Partial Occupancy Lease (but only for so
long as such portion remains subject to a Partial Occupancy Lease), expressed
as a percentage of Total Original Lessor’s Cost, may not exceed the percentages
of Total Original Lessor’s Cost set forth in the table below, except as set
forth in the next paragraph and except to the extent attributable to less than
a single floor of a Property which is to be leased pursuant to a Partial
Occupancy Lease or subleased pursuant to an AFR Sublease.  

 

9

 

Consequently, and in all
events (except to the extent attributable to less than a single floor of a
Property), Properties representing a combined 46% of Total Original Lessor’s
Cost may not be terminated pursuant to the Original Leases or pursuant to this Section 6.1(a) (excluding
any portion of any Property leased to the Lessee pursuant to a Partial
Occupancy Lease, so long as such portion remains subject to a Partial Occupancy
Lease).  Any termination of Properties
pursuant to this Section 6.1(a) shall not result in a reduction of
Basic Rent.  The percentages referenced
above are as follows:

 

	
  Anniversary

  	
   

  	
  Total Joint

  Maximum Cumulative

  Percentages

  	
   

  
	
  June 10,
  2004

  	
   

  	
  21

  	
  %

  
	
  June 10,
  2009

  	
   

  	
  38

  	
  %

  
	
  June 10,
  2015

  	
   

  	
  54

  	
  %

  

 

(b)                                                In
addition to the termination option in paragraph (a) above (and subject to
the terms thereof with respect to notice and that no Event of Loss or Event of
Taking or event which with the passage of time or giving of notice would
constitute an Event of Loss or Event of Taking, is then continuing), the Lessee
(if the Lessee has not terminated the maximum Lessor’s Cost pursuant to Section 6.1(a))
may, for any reason, in its sole discretion, in the same notice as referenced
in Section 6.1(a), on each Anniversary, or annually thereafter on any
anniversary of an Anniversary, terminate one entire Property (the Carryover Property) from this Lease if the sum of the Lessor’s
Cost of the Carryover Property plus the Lessor’s Cost of Properties (excluding
any portion of a Property leased to Lessee pursuant to a Partial Occupancy
Lease, so long as such portion remains subject to a Partial Occupancy Lease)
previously terminated pursuant to Section 6.1(a), plus the Lessor’s Cost
of any portion of a Property subleased pursuant to an AFR Sublease, plus the
Lessor’s Cost of any FMV Properties previously terminated pursuant to Section 3.1(c),
exceeds (such excess being referred to as the Cost Excess)
the Total Joint Maximum Cumulative Percentage of Lessor’s Cost which can
otherwise be terminated pursuant to Section 6.1(a), but will not exceed
such Total Joint Maximum Cumulative Percentage on the next Anniversary (it
being agreed that the maximum terminations pursuant to Sections 6.1(a) and
(b) hereof is 54% of Total Original Lessor’s Cost).  No termination of Properties pursuant to this
Section 6.1(b) shall result in a reduction of Basic Rent.  No more than one Carryover Property may be
terminated pursuant to this paragraph (b) on an Anniversary or during the
period until the next Anniversary.  In
the termination notice the Lessee may elect to enter into a Bank Branch Lease
in the Carryover Property if it is also a Bank Branch Property.

 

On the date a Carryover Property is terminated from
this Lease, Lessee shall vacate such Property on or before such date and the
related Property shall be returned to the Lessor pursuant to Article 12 of
this Lease.  There shall be no reduction
in Basic Rent as a result of such termination and the Lessee shall continue to
pay Basic Rent to the Lessor until the next Anniversary as if the maximum (but
no more than the maximum) terminations had occurred pursuant to Section 6.1(a);
provided that if such Carryover Property will be subject to a Bank
Branch Lease during such period, the rent which would otherwise be due under
such Bank Branch Lease during such period will be reduced by an amount equal to
the Bank Branch Lease rent multiplied by a fraction, the numerator of which is
the Cost Excess and the denominator of which is the Lessor’s Cost of such
Carryover Property.  The Lessor’s Cost of
a Carryover Property so terminated shall reduce the percentage of Lessor’s Cost
of Properties which the Lessee can terminate pursuant to Section 6.1(a)

 

10

 

on or after the next Anniversary to the extent of the
Cost Excess.  After a Carryover Property
is so terminated, the Lessee shall continue to pay Basic Rent (as provided in
the second sentence of this paragraph) but otherwise have no other obligations
under this Lease (except for accrued obligations), any indemnities (except to
the extent indemnities would otherwise survive a Lease termination) or
otherwise with respect to the Carryover Property.

 

(c)                                                 Upon
a Bank Branch Property being terminated from this Lease pursuant to Section 6.1(a) or
(b) and the Lessee having elected to enter into a Bank Branch Lease for
the first floor space within such Bank Branch Property or, in the case of the
Bank Branch Property located at 1111 East Main Street, Richmond, for the “A”
level or plaza level space or, in the case of the Bank Branch Property located
at 100 S. Charles Street, Baltimore, for the first or second level retail
space, then being used by the Lessee as a retail bank or to support the
operation of a retail bank, the Lessee and Termination Transferee (if any)
shall, so long as no Special Default or Lease Event of Default has occurred and
is continuing, enter into a Bank Branch Lease prior to such termination.  Notwithstanding the foregoing, in the case of
a termination of a Bank Branch Property pursuant to Section 6.2 where the
Lessor does not retain such Bank Branch Property, Lessor shall execute the Bank
Branch Lease prior to such termination and assign to the purchaser under Section 6.2
the Lessor’s rights and obligations under such Bank Branch Lease, which Bank
Branch Lease shall specify (i) that after such assignment Lessor shall
have no liability or obligations as a result of such Bank Branch Lease and (ii) that
if such purchaser does not purchase as contemplated by Section 6.2, such
Bank Branch Lease shall be deemed terminated in all respects. The rent under
each Bank Branch Lease shall be the lower of (x) the Average Annual Rent
Factor multiplied by the Lessor’s Cost of such bank space (which Lessor’s Cost
of such bank space shall be determined by allocating the Lessor’s Cost of the
related Property pro rata based on Square Feet) and (y) the Fair Market
Value Rent (taking into account the other terms of the Bank Branch Lease) of
such bank space.  The initial term of
each Bank Branch Lease shall be as selected by the Lessee, but shall not be
less than three or more than ten years.

 

(d)                                                The
Lessee shall have the right, subject to Section 6.1(e), to make the
termination of any Property pursuant to Section 6.1(a) subject to the
condition that the following events must occur prior to or simultaneously with
such termination: (i) the Security Documents shall cease to be in effect
or the relevant Property shall from and after the next Anniversary be released
from the Lien of the Security Documents and (ii) a Termination Transferee
shall have entered into a Partial Occupancy Lease with the Lessee with respect
to any portion of such Property identified by the Lessee in the notice referred
to in Section 6.1(e)(i) as being subject to the proposed Partial
Occupancy Lease.

 

(e)                                                 The
Lessee shall only be entitled to exercise its right to make its termination
option with respect to any Property under Section 6.1(a) conditional
pursuant to Section 6.1(d) if: (i) the Lessee shall notify the
Lessor in writing between 540 and 270 days prior to an Anniversary that it
intends to keep possession of a portion of such Property, which notice shall
identify the portion of any Property which is to be subject to a Partial
Occupancy Lease either by reference to the portion of such Property which the
Lessee intends to retain possession of or by reference to the portion of such
Property which the Lessee intends to vacate, (ii) the portion of such
Property which is to be subject to a Partial Occupancy Lease shall consist of
one or more entire floors of each relevant Property and does not include any
partial floors, (iii) the Lessee shall pay for all reasonable costs of
completing necessary Demising Work in such Property in accordance with Section 6.5,
(iv) if the Termination Transferee to whom the Property subject to a
Partial Occupancy Lease is transferred is the Owner Participant or an Affiliate
of the Owner Participant, the Lessee shall pay such portion of the Transfer and
similar taxes as are determined by 

 

11

 

multiplying such taxes by
a fraction, the numerator of which is the Lessor’s Cost of the portion of the
Property subject to the Partial Occupancy Lease and the denominator of which is
the total Lessor’s Cost for the Property, and (v) after giving effect to
all terminations then requested by the Lessee on such Anniversary, the Lessee
would have terminated this Lease with respect to at least the Total Joint
Maximum Cumulative Percentage of Total Original Lessor’s Cost permitted for
such Anniversary in Section 6.1(a), and provided that any portion of a Property
leased to the Lessee pursuant to a Partial Occupancy Lease shall (so long as
such portion remains subject to a Partial Occupancy Lease) be deemed to still
be subject to this Lease for purposes of determining whether or not the Total
Joint Maximum Cumulative Percentages in Section 6.1(a) have been
exceeded and for purposes of Section 3.1(a) and (b).  The Lessor and the Owner Participant shall be
obligated to notify the Lessee and the Indenture Trustee within 60 days after
receipt of the notice described in Section 6.1(e)(i) whether or not
the Lessor and the Owner Participant expect to be able to satisfy the
conditions set forth in Section 6.1(d). 
The Lessor or the Owner Participant will promptly notify the Lessee and
the Indenture Trustee if, at any time after the Lessor or the Owner Participant
notified the Lessee and the Indenture Trustee pursuant to the preceding
sentence that the Lessor and the Owner Participant expect to be able to satisfy
the conditions set forth in Section 6.1(d), it becomes likely that the
Lessor or the Owner Participant will not be able to satisfy such conditions.

 

(f)                                                   In
the event that the termination of any Property can not be completed as a result
of the failure of the conditions set forth in Section 6.1(d) to be
satisfied, the Lessee shall have the option to sublease the portion of such
Property which was not identified by the Lessee as being subject to the
proposed Partial Occupancy Lease in the notice referred to in Section 6.1(e)(i),
to a Termination Transferee selected by the Lessor (which must either be the
Recourse Guarantor or an entity guaranteed by the Recourse Guarantor pursuant
to a guaranty in form and substance reasonably acceptable to the Lessee) and
the Lessor shall permit such sublease pursuant to an AFR Sublease.  Any portion of a Property subleased to a
Termination Transferee pursuant to an AFR Sublease shall be considered
terminated from this Lease for purposes of determining whether or not the Total
Joint Maximum Cumulative Percentages in Section 6.1(a) have been
exceeded and for purposes of Section 3.1(a) and (b).  If at any time any Property subject to an AFR
Sublease is released from the Lien of the Security Documents, the relevant
Termination Transferee and the Lessee shall promptly enter into a Partial
Occupancy Lease relating to the portion of such Property that was not subject
to an AFR Sublease and, upon execution of such Partial Occupancy Lease, (i) such
AFR Sublease shall automatically terminate and (ii) this Lease shall
automatically terminate with respect to such Property.  If the Termination Transferee to whom the
Property subject to a Partial Occupancy Lease is transferred is the Recourse
Guarantor or an Affiliate of the Recourse Guarantor, the Lessee shall pay such
portion of the Transer and similar taxes as are determined by multiplying such
taxes by a fraction, the numerator of which is the Lessor’s Cost of the portion
of the Property subject to the Partial Occupancy Lease and the denominator of
which is the total Lessor’s Cost for the Property.

 

(g)                                                For
purposes of Section 6.1(a), the Lessor’s Cost for any portion of any
Property shall be determined by multiplying the Lessor’s Cost for such Property
in its entirety by a fraction, the numerator of which is the number of Square
Feet included in such portion and the denominator of which is the total Square
Feet of such Property.

 

(h)                                                If at
any time after the Lessee notifies the Lessor of its desire to terminate the
Lease with respect to a Property pursuant to Section 3.1(c) or 6.1(a) and
to enter into a FMV Lease or a Partial Occupancy Lease, as applicable, with
respect to a portion of such Property, the Lessor and Owner Participant will
use all reasonable efforts to cause such Property to be released from the 

 

12

 

Lien of the Security Documents (it being understood that a Property can
not be released from the Lien of the Security Document unless either the
conditions of Section 11.01 of the Indenture are satisfied or the
Indenture Trustee has consented in writing to such release).   If the Lessee has requested that this Lease
be so terminated with respect to more than one Property pursuant to Section 3.1(c) or
6.1(a) and the Lessor and Owner Participant determine that they will be
unable to cause all such Properties to be released from the Lien of the
Security Documents, so that it will be necessary for one or more of such
Properties to remain subject to the Lease and become subject to an AFR
Sublease, the Lessor and Owner Participant shall use all reasonable efforts to
cause the Property to be terminated from the Lease which minimizes the amount
of Square Feet which will be subject to an AFR Sublease.

 

6.2                               Obsolescence Termination

 

In addition to the termination rights granted in Section 6.1
above, so long as no Special Default or Lease Event of Default has occurred and
is continuing, the Lessee may, if it determines (as evidenced by a certificate
of a Responsible Officer of the Lessee) one or more Properties is obsolete,
surplus or uneconomic for its needs, on not less than 180 days’ prior written
notice to the Lessor (a Notice of Termination),
terminate this Lease as to any such Property or Properties on a Rent Payment
Date after December 10, 2004 (the Termination Date).  The Notice of Termination may be revoked by
the Lessee for any reason up to 30 days prior to the Termination Date (unless
Lessor has previously given the notice contemplated in the next paragraph).  Upon such termination election, the Lessee shall
use all reasonable efforts to sell the Properties (subject to any Bank Branch
Leases for such Properties, if any, which the Lessee elects in such Notice of
Termination for any Bank Branch Properties being so terminated, and subject to
any Senior Subleases) for cash to the highest bidder unrelated to the Lessee on
such Termination Date.  Lessor and Owner
Participant may, but shall have no obligation to, attempt to locate a purchaser
for such Property or Properties, provided that such attempts do not interfere
with the Lessee’s attempts to locate such a purchaser.  In the event such a buyer is found, the
Lessee shall vacate such Properties (except for any bank lobby space subject to
such a Bank Branch Lease) and the sale shall occur on the Termination Date and,
subject to the last sentence in this paragraph, net sales proceeds shall be
paid to the Lessor.  If the net sales
proceeds received by the Lessor are less than the Stipulated Loss Value of such
Properties on the Termination Date the Lessee shall pay to the Lessor on such
Termination Date such shortfall and all other amounts then due, including any
Supplemental Rent and Redemption Premium, if any, then due.  If no such buyer is found by such Termination
Date, the Lessee may elect to either continue this Lease without any such
termination (provided, however, the Lessee may not withdraw (pursuant to this
sentence or the first sentence of this paragraph) more than 5 termination
notices in the aggregate and not more than one in any 18-month period, in each
case for this Lease and any FMV Lease) or vacate such Property or Properties
(it being understood that sublessees under Senior Subleases, and the Lessee as
lessee under any such Bank Branch Lease, need not vacate) and pay to the Lessor
the Stipulated Loss Value, the Redemption Premium and any other amounts then
due for such Properties on such Termination Date and continue to attempt to
find such a buyer.  When such a buyer is
ultimately found, the net proceeds of such sale shall be remitted to the Lessee
up to an amount equal to and in reimbursement of the Lessee’s payment of
Stipulated Loss Value, the Redemption Premium and any other amounts then due
and any excess shall be paid as provided in the next sentence.  If the Lessee arranges for such a sale and has
paid all Supplemental Rent and Redemption Premium, if any, then due and the net
proceeds are in excess of Stipulated Loss Value, such excess proceeds shall be
applied to reimburse the Lessee for the reasonable costs incurred in connection
with such sale and the balance shall be paid to the Lessor.

 

13

 

Upon Lessee’s payment of all amounts due under this Section 6.2,
and the assumption by the purchaser of any Bank Branch Leases in the terminated
Property(ies), Lessor shall, at Lessee’s expense, execute such deeds and other
instruments of transfer as Lessee may reasonably request to effectuate the
transfer to such purchaser, which transfer shall be without recourse or
warranty, except as to the absence of Lessor’s Liens.

 

In the event the Lessee elects to terminate this Lease
with respect to a Property or Properties as provided in this Section 6.2,
the Lessor may elect to retain such Properties (by notice given to Lessee no
later than 60 days after Lessor receives the Notice of Termination) and thereby
relieve the Lessee from any obligation to pay Stipulated Loss Value (but the
Lessee shall nonetheless pay any Redemption Premium, if any, and Supplemental
Rent then due), provided that no such election shall be made unless the Lessor
shall have deposited funds with the Indenture Trustee sufficient to pay the
Allocable Portion of the Notes in full on the Termination Date.  This Lease will so terminate with respect to
such Property or Properties whether or not such Allocable Portion is so
paid.  Upon such termination the Lessor
will transfer such Property or Properties to such other Person as it shall
determine, but at the sole cost and expense of the Owner Participant, including
as to transfer taxes.

 

6.3                               Effect of Termination

 

Upon compliance by the Lessee with the provisions of Section 6.2
with respect to termination of one or more Properties, the obligation of the
Lessee to pay Basic Rent for the terminated Properties for any period after the
Termination Date shall cease.  Upon
compliance by Lessee with the provisions of Section 6.1 or 6.2 with
respect to termination of one or more Properties, the Lease Term shall end for
such Properties and the obligations of the Lessee hereunder with respect to
such Properties (other than any such obligations expressly surviving
termination of this Lease) shall terminate as of the date of termination.  In the event, for any reason, the purchaser
fails to purchase a Property on the Termination Date, this Lease shall continue
as to such Property, and the Lessee shall pay any costs incurred by Lessor,
Owner Participant, the Pass Through Trustee or Indenture Trustee in connection
therewith unless such failure resulted from a breach by a party of its
obligations under the Operative Documents, in which case the Lessee shall not
pay such party’s costs.

 

6.4                               Adjustment of Termination Percentages

 

The Total Joint Maximum Cumulative Percentages set
forth in Section 6.1(a) shall not be reduced upon the termination of
this Lease as to a Property unless such termination is pursuant to Section 6.2,
14.1 or 14.3 hereof or Section 9.1 of the Participation Agreement only in
the case where the Lessee elects to purchase the Property or Section 9.3
of the Participation Agreement (a Terminating Event),
in which case each Total Joint Maximum Cumulative Percentage in Section 6.1(a) for
an Anniversary that has not yet occurred shall equal:

 

EP+((PA-EP) X
(1-(TP/((1-CT)-EP))))

 

EP =        the
Total Joint Maximum Cumulative Percentage for the Anniversary that has most
recently occurred or, if no Anniversary has previously occurred, 0.04;

 

PA =       the
Total Joint Maximum Cumulative Percentage being adjusted;

 

14

 

TP =        the
percentage of Total Original Lessor’s Cost represented by the Property being
terminated;

 

CT =       the
percentage of Total Original Lessor’s Cost represented by the cumulative
Properties previously terminated from the Lease pursuant to a Terminating
Event, without regard of the Terminating Event giving rise to the current Section 6.4
adjustment.

 

Each variable should be expressed as a decimal when
calculating the Total Joint Maximum Cumulative Percentage and converted to a
percentage after the calculation.

 

For example, if during the fourth and eighth years of
the Original Leases, Properties representing 40% and 10%, respectively, of
total Lessor’s Cost for all Properties originally subject to the Original
Leases were terminated from the Original Leases (or this Lease, as the case may
be) pursuant to a Terminating Event, the Total Joint Maximum Cumulative
Percentage table of Section 6.1(a) would become as follows:

 

	
  Anniversary

  	
   

  	
  4th Year

  Total Joint Maximum

  Cumulative Percentages(1)

  	
   

  	
  8th Year

  Total Joint Maximum

  Cumulative Percentages(1)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 10,
  2004

  	
   

  	
  13.9167

  	
  %

  	
  13.9167

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 10,
  2009

  	
   

  	
  23.8333

  	
  %

  	
  21.6814

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  June 10,
  2015

  	
   

  	
  33.1667

  	
  %

  	
  28.9895

  	
  %

  

 

6.5                               Demising Work

 

Any Demising Work required to be performed by Lessee:
shall, in each instance, be completed as follows:

 

(a)                                                 Lessee
shall prepare and submit to Owner Participant for Owner Participant’s approval
a preliminary space plan (the Preliminary Space Plan)
in connection with the proposed separation of the Leased Premises from the
Surrendered Premises. Owner Participant’s approval shall not be unreasonably
withheld or delayed and shall be given or withheld, or Owner Participant shall
advise Lessee whether Owner Participant requires additional information in
order to evaluate Lessee’s request, within ten (10) days following Lessee’s
delivery to Owner Participant of the Preliminary Space Plan.  If Owner Participant objects to the
Preliminary Space Plan (or any revision thereof), Lessee shall deliver a
revised Preliminary Space Plan to Owner Participant and the procedure will be
repeated, if necessary, until a final space plan is approved.  The final approved space plan is hereinafter
referred to as the Final Space Plan.
Owner Participant and Lessee shall work with one another reasonably and in good
faith to resolve any differences concerning the Preliminary Space Plan and the
Final Space Plan (or the Preliminary Drawings or Final Drawings hereafter
referenced in Section 6.5(b)).

 

(b)                                                From
the Final Space Plan, Lessee shall prepare and submit to Owner Participant for
Owner Participant’s approval (which approval shall not be unreasonably withheld
or delayed, and which shall be given or withheld, or Owner Participant shall
advise Lessee whether Owner Participant requires additional information in
order to evaluate Lessee’s request, within ten (10) 

 

(1)           Total Joint Maximum Cumulative
Percentages are percentages of Lessor’s Cost for all Properties originally
subject to the Lease.

 

15

 

days) following Lessee’s
delivery to Owner Participant of, one-eighth inch (1/8”) architectural,
mechanical, electrical, lighting, plumbing and (if reasonably requested by
Owner Participant) floor load working drawings together with specifications
necessary to complete all of the proposed improvements shown on the Final Space
Plan (collectively, the Preliminary Drawings).
If Owner Participant objects to the Preliminary Drawings (or any revision
thereof), Lessee shall deliver revised Preliminary Drawings to Owner
Participant and the procedure will be repeated, if necessary, until final
drawings are approved.  The final
approved drawings are hereinafter referred to as the Final
Drawings.

 

(c)                                                 Lessee
will cause the Demising Work to be constructed in substantial accordance with
the Final Drawings. Owner Participant and the Lessor shall be deemed to have
waived Lessee’s performance of any Demising Work not shown on the Final
Drawings except to the extent required to satisfy Applicable Laws. Owner
Participant ‘s review of Space Plans and Drawings under Sections 6.5(a) and
(b) is for Owner Participant’s purposes only, and not a representation or
warranty that the work to be performed pursuant thereto meets all Applicable
Laws.

 

(d)                                                In
connection with the Demising Work, Lessee shall file all drawings, plans and
specifications, pay all fees and obtain all permits and applications from any
authorities having jurisdiction and perform all Demising Work in compliance the
requirements of such permits and applications; and Lessee shall promptly
obtain, if required, a permanent certificate of occupancy and all other
approvals required of Lessee to use and occupy the Leased Premises.

 

(e)                                                 Lessee
shall have the right to select the general contractor and subcontractors for
the Demising Work, provided that Lessee shall not use a contractor or
subcontractor as to which Owner Participant shall reasonably object within ten (10) days
following Lessee’s notice to Owner Participant of the identity of such
contractor(s) and subcontractor(s) as Lessee has selected.

 

(f)                                                   The
parties shall cooperate with each other in good faith and coordinate the
scheduling of the Demising Work in an effort to complete the same in a timely
manner. Owner Participant, Lessor and Lessee shall be commercially reasonable
in agreeing to non-material reconfigurations of the boundaries of the Leased
Premises to facilitate Lessee’s construction of demising walls for the Leased
Premises.

 

(g)                                                All
of the Demising Work shall be done in conformity with Applicable Laws and at
Lessee’s expense, including, without limitation, building permit fees, other
fees, architectural and engineering expenses and other expenses relating
thereto.  Lessee may request Owner
Participant’s review of Preliminary Space Plans or Preliminary Drawings before
Lessee’s notification to Owner Participant or Lessor of Lessee’s election to
remove Surrendered Premises from the Leased Premises to facilitate Lessee’s
understanding of the potential approximate costs associated therewith.

 

6.6                               Sublessee Options

 

If at the time this Lease is to be terminated with
respect to any Property pursuant to Section 3.1 or Section 6.1 or at
the time any portion of any Property is to be subleased pursuant to an AFR
Sublease, a sublessee of any portion of such Property has the option to
sublease from the Lessee additional space in such Property at a fair market
value rent (including by way of any right of first refusal or similar right),
the Lessor and Owner Participant agree, and will cause any relevant Termination
Transferee to agree, to honor the terms of such option as if it was an option
granted 

 

16

 

to such permitted sublessee by the Lessor, Owner
Participant or relevant Termination Transferee, as the case may be.

 

7.                                      CONDITION AND USE OF PROPERTIES

 

7.1                               Waivers

 

The Properties are demised and let by the Lessor “AS
IS” in their present condition, subject to (a) the rights of any parties
in possession thereof, (b) the state of the title thereto existing at the
time the Lessor acquired title to such Properties, (c) any state of facts
which an accurate survey or physical inspection might show (including the
surveys delivered on the Closing Date), (d) all Applicable Laws and
Regulations, (e) any violations of Applicable Laws and Regulations which
may exist at the commencement of the Lease Term and (f) the presence or
potential presence of any Hazardous Material at, on or under any Properties or
any property in the vicinity of the Properties. 
The Lessee has examined the Properties and has found the same to be
satisfactory for all purposes of this Lease (without waiving any rights Lessee
may have against any contractor, subcontractor or supplier).  NONE OF THE LESSOR (EITHER IN ITS INDIVIDUAL
OR TRUST CAPACITIES), THE OWNER PARTICIPANT, THE INDENTURE TRUSTEE OR THE PASS
THROUGH TRUSTEE (EITHER IN ITS INDIVIDUAL OR TRUST CAPACITIES) HAS MADE OR
SHALL BE DEEMED TO HAVE MADE ANY REPRESENTATION OR WARRANTY, EXPRESS OR
IMPLIED, WHATSOEVER OR SHALL BE DEEMED TO HAVE ANY LIABILITY WHATSOEVER AS TO
THE VALUE, HABITABILITY, MERCHANTABILITY, COMPLIANCE WITH THE PLANS AND
SPECIFICATIONS, CONDITION, DESIGN, OPERATION, OR FITNESS FOR USE OF THE
PROPERTIES (OR ANY PART THEREOF), OR ANY OTHER REPRESENTATION OR WARRANTY
WHATSOEVER, EXPRESS OR IMPLIED, WITH RESPECT TO THE PROPERTIES (OR ANY PART THEREOF)
AND NONE OF THE LESSOR (EITHER IN ITS INDIVIDUAL OR TRUST CAPACITIES), THE
OWNER PARTICIPANT, THE INDENTURE TRUSTEE OR THE PASS THROUGH TRUSTEE (EITHER IN
ITS INDIVIDUAL OR TRUST CAPACITIES) SHALL BE LIABLE FOR ANY LATENT, HIDDEN, OR
PATENT DEFECT THEREIN OR FOR THE FAILURE OF THE PROPERTIES TO BE CONSTRUCTED IN
ACCORDANCE WITH THE PLANS AND SPECIFICATIONS, THE COMPLIANCE OF ITS PLANS AND
SPECIFICATIONS WITH APPLICABLE LAWS AND REGULATIONS OR THE FAILURE OF THE
PROPERTIES, OR ANY PART THEREOF, OTHERWISE TO COMPLY WITH ANY APPLICABLE
LAWS AND REGULATIONS except that the Lessor hereby represents, warrants and
covenants that the Properties are and shall be free of Lessor Liens.  It is agreed that the Lessee is fully
familiar with the Properties, has been afforded full opportunity to inspect the
Properties, is satisfied with the results of its inspections of the Properties
for all purposes of this Lease (without waiving any rights Lessee may have
against any contractor, subcontractor or supplier) and is entering into this
Lease solely on the basis of the results of its own inspections and all risks
incident to the matters discussed in the preceding sentence, as between the Lessor,
the Owner Participant, the Indenture Trustee or the Pass Through Trustee, on
the one hand, and the Lessee, on the other, are to be borne by the Lessee.  The provisions of this Article 7 have
been negotiated, and, except to the extent otherwise expressly stated, the
foregoing provisions are intended to be a complete exclusion and negation of
any representations or warranties by the Lessor, the Owner Participant, the
Indenture Trustee or the Pass Through Trustee, express or implied, with respect
to the Properties, that may arise pursuant to any law now or hereafter in
effect, or otherwise.

 

17

 

8.                                      LIENS; TAXES

 

8.1                               Liens

 

The Lessee shall not directly or indirectly create, incur, assume or
suffer to exist any Lien on or with respect to the Properties, this Lease or
the leasehold estate created hereby, any Basic Rent or Supplemental Rent, title
thereto or any interest therein, or the rentals payable with respect to any
subletting of the Properties, including all Liens which arise out of the
possession, use, occupancy, construction, repair or rebuilding of the
Properties or by reason of labor or materials furnished or claimed to have been
furnished to the Lessee, or any of its contractors or agents or by reason of
the financing of any personalty or equipment purchased or leased by the Lessee
(from other than the Lessor, the Owner Participant or any Termination
Transferee) or Alterations constructed by the Lessee and not financed by the
Lessor, except in all cases Permitted Liens. 
The Lessee shall promptly, but not later than thirty (30) days after
notice thereof, at its own expense, take such action as may be necessary duly
to discharge or eliminate or bond in a manner reasonably satisfactory to the
Lessor any such Lien (other than Permitted Liens) if the same shall arise at
any time; provided, however, that the Lessee shall not be
required to so discharge or bond any such Lien while the same is being
contested in good faith by appropriate proceedings diligently prosecuted so
long as such proceedings shall not involve any material danger of the sale,
forfeiture or loss of, and shall not interfere with the use or disposition of,
any part of the Properties or title thereto or any interest therein or the
payment of Rent.

 

Nothing contained in this Lease shall be construed as
constituting the consent or request of the Lessor, express or implied, to or
for the performance by any contractor, laborer, materialman, or vendor of any
labor or services or for the furnishing of any materials for any construction,
alteration, addition, repair or demolition of or to the Properties or any part
thereof, which would result in any liability of the Lessor for payment
therefor.  Notice is hereby given that
the Lessor will not be liable for any labor, services or materials furnished or
to be furnished to the Lessee, or to anyone holding an interest in the
Properties or any part thereof through or under the Lessee, and that no
mechanic’s or other Liens for any such labor, services or materials shall
attach to or affect the interest of the Lessor in and to the Properties.

 

With respect to any Property located in the State of
Florida, Lessor hereby NOTIFIES ALL MECHANICS, 
MATERIALMEN AND OTHER LIENORS THAT PURSUANT TO FLORIDA STATUTES §713.10,
ANY LIENS UNDER FLORIDA STATUTES CH. 713 SHALL EXTEND TO, AND ONLY TO, THE
RIGHT, TITLE AND INTEREST OF THE PERSON WHO CONTRACTS FOR THE IMPROVEMENT IN
QUESTION AND THAT NEITHER THE INTEREST OF LESSOR NOR ANY SUPERIOR INTEREST IN
SUCH PROPERTY OR IN ANY OTHER PORTIONS OF THE BUILDING AND LAND OF WHICH THE
PROPERTY IS A PART SHALL BE SUBJECT TO LIENS FOR ANY IMPROVEMENTS,
SERVICES OR MATERIALS MADE BY, CONTRACTED FOR OR OTHERWISE AUTHORIZED BY LESSEE
OR BY ANY EMPLOYEE, CONTRACTOR OR AGENT OF LESSEE.  Lessee agrees that prior to contracting for
any improvements, services or materials to be made in or delivered to any
Property located in the State of Florida, Lessee shall notify the contractor of
the foregoing provisions.  Lessee further
agrees that upon request of Lessor, Lessee shall execute a notice which sets
forth the foregoing provisions, which notice may be recorded by Lessor in the
public records of the county where the applicable Property is located.

 

18

 

8.2                               Taxes

 

(a)                                                 Subject
to the provisions hereof relating to contests, Lessee shall pay and discharge,
before any interest or penalties are due thereon, all of the following taxes,
charges, assessments, levies and other items (collectively, “tax” or “taxes”),
even if unforeseen or extraordinary, which are imposed or assessed during the
Lease Term, regardless of whether payment thereof is due prior to, during or
after the Lease Term: all taxes of every kind and nature (including, without
limitation, real, ad valorem, personal property, and sales and use tax), on or
with respect to the Properties (including, without limitation, any taxes
assessed against Lessor’s fee estate in the Land or Improvements or against any
real property other than the Properties which is included within the tax parcel
which includes the Properties), the Basic Rent and Additional Basic Rent
(including, without limitation, ad valorem taxes) payable hereunder, this Lease
or the leasehold estate created hereby; all charges and/or assessments for any
easement or agreement maintained for the benefit of the Properties; and all
general and special assessments, levies, water and sewer assessments and other
utility charges, use charges, impact fees and rents and all other public charges
and/or taxes whether of a like or different nature.  Lessor and Owner Participant shall promptly
deliver to Lessee any bill or invoice Lessor or Owner Participant receives with
respect to any tax; provided, that the Lessor’s and Owner Participant’s failure
to deliver any such bill or invoice shall not limit Lessee’s obligation to pay
such tax.  Lessor and Owner Participant
agree to cooperate with Lessee to enable Lessee to receive tax bills directly
from the respective taxing authorities. 
Nothing herein shall obligate Lessee to pay, and the term “taxes” shall
exclude, federal, state or local (i) franchise, capital stock or similar
taxes, if any, of Lessor or Owner Participant, (ii) income, excess profits
or other taxes, if any, of Lessor or Owner Participant, determined on the basis
of or measured by Lessor’s or Owner Participant’s net income, (iii) any
estate, inheritance, succession, gift, capital levy or similar taxes of Lessor
or Owner Participant, (iv) taxes imposed upon Lessor or Owner Participant
under Section 59A of the Internal Revenue Code of 1986, as amended, or any
similar state, local, foreign or successor provision, (v) any amounts paid
by Lessor or Owner Participant pursuant to the Federal Insurance Contribution
Act (commonly referred to as FICA), the Federal Unemployment Tax Act (commonly
referred to as FUTA), or any analogous state unemployment tax act, or any other
payroll related taxes, including, but not limited to, any required withholdings
relating to wages, (vi) except as provided in Section 6 and Section 14
herein, any taxes in connection with the transfer or other disposition of any
interest, other than Lessee’s (or any person claiming under Lessee), in the
Properties or this Lease, to any person or entity, including, but not limited
to, any transfer, capital gains, sales, gross receipts, value added, income,
stamp, real property gains or withholding tax, and (vii) any interest,
penalties, professional fees or other charges relating to any item listed in
clauses (i) through (vi) above; provided, further, that
Lessee is not responsible for making any additional payments in excess of
amounts which would have otherwise been due, as tax or otherwise, but for a
withholding requirement which relates to the particular payment and such withholding
is in respect to or in lieu of a tax which Lessee is not obligated to pay; and provided,
further, that if at any time during the Lease Term, the method of
taxation shall be such that there shall be assessed, levied, charged or imposed
on Lessor a tax upon the value of the Properties or any present or future
Improvement or Improvements on the Properties, including any tax which uses
rents received from Lessee as a means to derive value of the property subject
to such tax, then all such levies and taxes or the part thereof so measured or
based shall be payable by Lessee, but only to the extent that such levies or
taxes would be payable if the Properties were the only property of Lessor
and/or Owner Participant, and Lessee shall pay and discharge the same as herein
provided.  In the event that any
assessment against the Properties is payable in installments, Lessee may pay
such assessment in installments; and in such event, Lessee shall be liable only
for those 

 

19

 

installments which become
due and payable prior to or during the Lease Term, or which are appropriately
allocated to the Lease Term even if due and payable after the Lease Term.  Lessee shall deliver, or cause to be delivered,
to Lessor, Owner Participant and Indenture Trustee, promptly upon Lessor’s,
Owner Participant’s or Indenture Trustee’s written request, evidence
satisfactory to Lessor, Owner Participant and Indenture Trustee that the taxes
required to be paid pursuant to this Section 8.2 have been so paid and are
not then delinquent.

 

(b)                                                Lessee,
at its own cost and expense, may contest (including seeking an abatement or
reduction of)  any taxes agreed to be
paid hereunder; provided, that (i) Lessee first shall satisfy any
Applicable Laws, including, if required, that the taxes be paid in full before
being contested or, if not required to be paid in full, such contest shall
suspend the collection of such taxes, (ii) no Lease Event of Default has
occurred and is continuing and no Lease Event of Default shall occur as a
result of such contest and (iii) failing to pay such taxes will not
subject Lessor, Owner Participant or Indenture Trustee to criminal or civil
penalties or fines or to prosecution for a crime, or result in the sale,
forfeiture, termination, cancellation or loss of any portion of the Properties
or any interest therein, any Basic Rent or any Additional Basic Rent.  Lessee agrees that each such contest shall be
promptly and diligently prosecuted to a final conclusion.  Lessee shall pay and shall indemnify, defend
and hold Lessor, Owner Participant and Indenture Trustee and all other
Indemnitees harmless against any and all losses, judgments, decrees and costs
(including, without limitation, all reasonable attorneys’ fees and expenses) in
connection with any such contest and shall promptly, after the final
determination of such contest, fully pay and discharge the amounts which shall
be levied, assessed, charged or imposed or be determined to be payable therein
or in connection therewith, together with all penalties, fines, interest, costs
and expenses thereof or in connection therewith, and perform all acts the
performance of which shall be ordered or decreed as a result thereof.  At Lessee’s sole cost,  Lessor and Owner Participant shall assist
Lessee as reasonably necessary with respect to any such contest, including
joining in and signing applications or pleadings.  Any rebate applicable to any portion of the
Lease Term shall belong to Lessee.  If at
the time of any such contest a Lease Event of Default has occurred and is
continuing, then Lessee shall post a bond or other security with and acceptable
to Lessor and Indenture Trustee in their discretion in an amount equal to one
hundred twenty-five percent (125%) of the amount being contested.

 

(c)                                                 In
the event that Lessee shall be required pursuant to this Section 8.2 to
pay, discharge or provide indemnity for, or make any other payment with respect
to, any tax for which Lessee would not be obligated pursuant to Section 8.2(b) of
the Participation Agreement, Owner Participant shall, on demand, reimburse and
indemnify Lessee for any amount so paid or incurred by Lessee.

 

9.                                      MAINTENANCE AND REPAIR;
ALTERATIONS, MODIFICATIONS AND ADDITIONS

 

9.1                               Maintenance and Repair

 

The Lessee, at its own expense, shall at all times
(unless subject to an Event of Loss or an Event of Taking) (a) maintain
the Properties in good order, repair and condition, ordinary wear and tear
excepted, and to no less a standard than Lessee utilizes for other comparable
properties owned or leased by it, (b) except to the extent Section 9.4
shall apply, maintain the Properties, and make all necessary repairs and
Alterations to maintain the Properties, in accordance with all Applicable Laws
and Regulations, and (c) comply with the standards imposed by any
insurance policies required to be maintained hereunder which are in effect at
any time with respect to the Properties or any part thereof, and shall take the
preceding actions whether interior or exterior, structural or 

 

20

 

nonstructural, ordinary or extraordinary and foreseen
or unforeseen whether or not such expenditures would constitute capital
expenditures under GAAP if made by the owner of such property.  The Lessee waives any right that it may now
have or hereafter acquire to require the Lessor to (i) maintain, repair,
replace, alter, remove or rebuild all or any part of the Properties or (ii) make
repairs and Alterations (whether or not at the expense of the Lessor) pursuant
to any Applicable Laws and Regulations or otherwise.  The Lessee, at its own cost and expense,
shall promptly replace or cause to be replaced all parts of the Improvements
which may from time to time fail to function properly or become worn out, lost,
stolen, destroyed, seized or confiscated, subject to a Condemnation, damaged
beyond repair or permanently rendered unfit for use for any reason whatsoever; provided,
however, that the Lessee shall not be obligated to replace any part if (a) such
part has become unnecessary or obsolete and its replacement is not necessary or
customary for the proper functioning of the Improvements and (b) the
failure to replace such part will not reduce (other than to a de  minimis
extent) the remaining useful life, fair market value or residual value of the
Improvements, in each case assuming that the Improvements are then being
operated and maintained in accordance with this Article 9.  In addition, the Lessee may, at its own cost
and expense, remove in the ordinary course of maintenance, service, repair,
overhaul or testing, any such parts, whether or not functioning properly, worn
out, destroyed, seized, confiscated, damaged beyond repair or permanently
rendered unfit for use, provided that the Lessee will, at its own cost
and expense, replace such parts as promptly as practicable and in accordance
with the standards set forth in this Section 9.1.  All replacement parts (hereinafter referred
to as Replacement Parts) shall be free and
clear of all Liens (except for Permitted Liens and except in the case of
replacement parts temporarily installed on an emergency basis) and shall be in
as good operating condition as, and shall have a value, useful life and utility
at least equal to, the parts replaced, assuming such replaced parts were in the
condition and repair required to be maintained by the terms hereof.  Immediately upon any Replacement Part becoming
incorporated or installed in or attached to any part of the Improvements as
above provided, without further act (subject only to Permitted Liens and except
in the case of replacement property temporarily installed on an emergency
basis), (i) legal title to such Replacement Part shall there upon
vest in the Lessor and shall become subject to this Lease, (ii) such
Replacement Part shall be deemed part of the Improvements for all purposes
hereof to the same extent as the parts originally incorporated or installed in
or attached to the Improvements, and (iii) title to the replaced part
shall thereupon vest in the Lessee free and clear of all rights of the Lessor,
and shall no longer be deemed part of the Improvements.

 

9.2                               Alterations

 

(a)                                                                                  (i)            The
Lessee may, without the consent of the Lessor, and without complying with the
requirements of paragraph (b) of this Section 9.2, at the Lessee’s
own cost and expense, make Alterations to any Properties, so long as such
Alterations (i) do not reduce the value, residual value and remaining
useful life of such Property except to a de  minimis extent (which
for this purpose only shall mean a decrease in current market value or future
residual value as of the applicable date for such Property shown on Schedule 3
of less than the lesser of $500,000 or 1% (in the aggregate for purposes of
this Lease) of the then Fair Market Sales Value of such Property or a decrease
of less than 2% in remaining useful life), (ii) do not cause such Property
to become “limited use” property as defined in Rev. Proc. 2001-28, as amended,
and (iii) do not change the use of such Property to a use other than a
Permitted Use.

 

21

 

(ii)                                                 The
Lessee will give the Lessor advance written notice of any structural changes to
a Property if the cost thereof is expected to exceed the lesser of $1,000,000
and 10% (in the aggregate for purposes of this Lease) of the Lessor’s Cost of
such Property.

 

(iii)                                              So
long as no Special Default or Lease Event of Default has occurred and is
continuing, the Lessee may remove any Severable Alteration not required by this
Lease or Applicable Laws and Regulations at any time during or upon expiration
of the Lease Term; provided, that the Lessee, at its cost and expense, shall
restore the affected Properties to substantially the same condition as existed
prior to any such Alteration.

 

(iv)                                             If
the Lessee shall make or cause to be made any Alterations, it shall do so in a
good, substantial and workmanlike manner and in compliance with all Applicable
Laws and Regulations and free of all Liens other than Permitted Liens.  Whenever the Lessee is required to perform
any Alterations upon the Properties, the Lessee shall promptly commence the
Alterations and, once commenced, diligently and continually pursue the
completion of such Alterations within a reasonable time.  If any Alterations are made following a
Casualty, a Condemnation or an Event of Loss where this Lease continues, any
Net Proceeds shall be disbursed pursuant to Section 14.2.

 

(b)                                                Notwithstanding
the foregoing, the Lessee may decide in its sole discretion to construct
additions which may be substantial (the Additions) to a
Property which Additions will remain owned by the Lessee or its designees so
long as (i) such Additions do not reduce the current market value of such
Property, future residual value for such Property or remaining useful life of
such Property; provided that in the case of a Property located in (A) College
Park, Georgia, (B) Triad Center, Greensboro, North Carolina, and (C) 8011
Villa Park, Richmond, Virginia (the Improved Properties),
such Additions may reduce, but by no more than a de  minimis
amount (which for these purposes shall not exceed the lesser of $1,000,000 and
10% (in the aggregate for purposes of this Lease) of the Lessor’s Cost of such
Improved Property), the value or residual value of such Improved Property, (ii) the
cross-easements referenced in the penultimate sentence of this paragraph are
permitted by Applicable Laws and Regulations, (iii) such Property has
available to it the number of parking spaces equal to the greater of (x) those
required by Applicable Laws and Regulations and (y) those that maintain
the same ratio of Square Feet in such Property to parking spaces available to
such Property after such Additions as existed before such Addition, (iv) there
are no unindemnified tax consequences to the Owner Participant, (v) no
Special Default or Lease Event of Default is continuing when construction of
such Addition is commenced and (vi) the Lessee shall comply with Section 9.2(a)(iv).  Notwithstanding the foregoing, no such
Additions shall be constructed if such construction or any related events may
result in material adverse tax consequences to the Owner Participant
(regardless of whether the Owner Participant is indemnified for such adverse
consequences) unless (A) the Lessee satisfies the Rating Test and (B) Owner
Participant receives an opinion from counsel selected by the Lessee and
reasonably acceptable to the Owner Participant, that there is at least “more
likely than not” authority for the federal income tax position which the Lessee
requests the Owner Participant to assume. 
Subject to the foregoing, Lessor agrees, at the Lessee’s expense, to
enter into appropriate cross-easements with respect to any such Addition and
its related Improvements so that both properties can be effectively and
efficiently utilized; provided, however, that any Addition
constructed by Lessee pursuant to this paragraph (b) shall contain
heating, ventilating, cooling and life safety facilities and equipment separate
and distinct from the Improvements, and shall not interfere with or overburden
any sewer, water, natural gas, electric, telephone and other utilities serving
the Improvements.  The use and operation
of such Addition shall not unreasonably interfere with the use and operation of
the Property (except to the extent the 

 

22

 

Improvements and the
Addition share equipment, facilities and parking areas pursuant to appropriate
cross-easements) and shall not materially increase the cost of the use and
operation of the Improvements.

 

(c)                                                 If
the Lessee is prevented from constructing an Addition or Alteration to a
Property as a result of the operation of Section 9.2(d)(z) or the
proviso which follows Section 9.2(d)(z), the Lessee may exercise its
rights set forth in clause (iii) of the first sentence of Section 9.3
of the Participation Agreement if within 90 days after the Lessee has Actual
Knowledge that it has been so prevented it sends written notice to the Lessor,
the Owner Participant and the Indenture Trustee exercising such right and
specifying the date of purchase pursuant to such clause (iii); provided
however, that the Lessee may not purchase such Property under such clause (iii) if
(1) within 15 days of the date of Lessee’s written notice of such exercise
the Indenture Trustee and the Lessor each waive the requirements set forth in Section 9.2(d)(z) and
the proviso that follows Section 9.2(d)(z) and, as a result, permit
the Alteration or Addition to be constructed on such Property or (2) within
15 days of the date of Lessee’s written notice of such exercise, the Lessor or
Owner Participant elects to prepay the Allocable Portion of the Notes relating
to such Property (and pay any related Redemption Premium pursuant to the
Indenture it being agreed that such Redemption Premium shall be paid by the
Lessee on the date specified in such election by the Lessee for the purchase of
such Property), whereupon the Lessee may proceed to construct such Alteration
or Addition, and such Property shall remain subject to this Lease and the
Security Documents; provided that the Owner Participant or the Lessor may not
so elect unless the Lessor or the Owner Participant shall have deposited with
the Indenture Trustee funds sufficient to pay such Allocable Portion of the
Notes and Redemption Premium in full on such date.  There shall be no reduction of Basic Rent as
a result of the prepayment contemplated in clause (2) of the immediately
preceding proviso.

 

(d)                                                In
the event an Addition or an Alteration would result in a decrease in value
and/or residual value of a Property such that they would not be permitted
pursuant to Section 9.2(a) or (b), the Lessee may nonetheless make
such Addition or Alteration if (x) the other requirements of such Section 9.2(a) or
(b) are satisfied, (y) the Lessee pays to the Lessor the present
value of the amount of such diminution in residual value, discounted at 10.769%
per annum, but grossed up so that the Owner Participant is whole on an
After-Tax Basis and (z) the loan to value ratio for such Property does not
increase above 90% when such Alteration or Addition is completed as determined
before construction of such Addition or Alteration has commenced by comparing
the Allocable Portion of the Notes for such Property to the expected Fair
Market Sales Value of such Property after such Addition or Alteration, as
determined by the Appraisal Procedure; provided that if at the time of the
commencement of such Appraisal Procedure the Lessee making such Addition or
Alteration does not satisfy the Rating Test then, if Notes are outstanding, no
Addition or Alteration which decreases the value and/or residual value of a
Property may be made; provided further that the preceding clause (z) and
the preceding proviso shall only apply so long as the Notes originally issued
under the Indenture remain outstanding and shall not apply during any period
during which the maturity of such Notes has been extended for any reason.  For the purpose of calculating the residual
value pursuant to clause (x) above, each Property will be assumed to be
terminated from this Lease on the date set forth in Schedule 2 or, if such
calculation is being made following such date, on the next Anniversary on which
such Property could be so terminated. 
The Lessee may not make such Additions or Alterations with respect to a
Property if the aggregate payments made and to be made pursuant to this
paragraph (before gross-up) will exceed 25% of the Lessor’s Cost of such
Property (as inflated in the same proportion that by CPI has increased from the
month of June, 1997 to the most recent date prior to such payment as of which
CPI has been published).

 

23

 

(e)                                                 The
Lessee shall make such Alterations to the Properties as may be required from
time to time (i) to comply with all Applicable Laws and Regulations
(subject to the contest rights set forth in Section 9.4) and with Section 9.1
and (ii) following a Casualty, Condemnation or Event of Loss (in any
instance where the provisions of Section 14.1(ii) shall apply), to
restore the Improvements to their respective condition prior to a Casualty or
Condemnation, and will maintain such Alterations as provided in Section 9.1
hereof; provided that in the case of a Condemnation, the Lessee’s obligation
will be to restore the Improvements to such condition as close as possible
under the circumstances to the condition prior to such Condemnation.

 

9.3                               Title to Alterations

 

Title to all Alterations shall without further act
vest in the Lessor and shall be deemed to constitute a part of the related
Property and be subject to this Lease in the following cases:

 

(a)                                  such Alteration shall be in replacement
of or in substitution for a portion of the Improvements;

 

(b)                                 such Alteration shall be required to be
made pursuant to the terms of Sections 9.1 or 9.2(e) hereof;

 

(c)                                  such Alteration shall be Nonseverable;

 

(d)                                 such Alteration shall be financed by or
through the Lessor in accordance with Article XI of the Participation
Agreement or otherwise; or

 

(e)                                  such Alteration shall be Severable and is
not removed by the Lessee upon the end of the Lease Term for the related
Property.

 

The Lessee shall, at the Lessor’s request, execute and
deliver any deeds or assignments reasonably necessary to evidence the vesting
of such title in and to such Alterations in the Lessor.  If such Alteration is not within any of the
categories set forth in clauses (a) through (e) of this Section 9.3,
then title to such Alteration shall vest in the Lessee or its designee.

 

9.4                               Permitted Contests

 

If, to the extent and for so long as (a) a test,
challenge, appeal or proceeding for review of any Applicable Laws and
Regulations relating to the use, operation or maintenance of the Properties or
any Alterations to the Properties shall be prosecuted diligently and in good
faith by the Lessee or (b) compliance with any Applicable Laws and
Regulations shall have been excused or exempted by a valid nonconforming use
permit, waiver, extension or forbearance, the Lessee shall not be required to
comply with such Applicable Laws and Regulations as provided in this Article 9
or elsewhere in this Lease but only if and so long as no Special Default or
Lease Event of Default shall have occurred and be continuing and such test,
challenge, appeal, proceeding or noncompliance shall not involve (i) a
material risk of foreclosure, sale, forfeiture or loss of any part of the
Properties, (ii) a material risk of extending the ultimate imposition of
such Applicable Laws and Regulations beyond the expiration of the related
Property’s Basic Term or then current Renewal Term, as the case may be, (iii) any
risk of any criminal liability being imposed on the Lessor, the Owner
Participant, the Indenture Trustee or the Pass Through Trustee, (iv) a
material risk of any governmental or judicial action which might adversely
affect the Lien of the Security Documents, or Lessor’s ownership interests in
the Properties or the value or utility of the 

 

24

 

Properties unless stayed during the pendency of any
such test, challenge, appeal, proceeding or noncompliance, or (v) any
material risk of material loss of enjoyment of, or material interference with,
the use, possession or disposition of the Properties.  Notwithstanding the foregoing, the Properties
must be in compliance with Applicable Laws and Regulations at the time of any
return of such Property to Lessor pursuant to Article 12 hereof.

 

The Lessor will not be required to join in any
proceedings pursuant to this Section 9.4 unless a provision of any
Applicable Laws and Regulations requires, or in the good faith opinion of the
Lessee, it is helpful to the Lessee that such proceedings be brought by or in
the name of Lessor.  In any such event,
the Lessor will join in the proceedings or permit them to be brought in its
name if the Lessee pays all related reasonable expenses.  Lessor, at the cost and expense of Lessee,
shall use reasonable good faith efforts to cooperate with Lessee in any such
contest.

 

9.5                               Environmental Compliance

 

Lessee shall:

 

(a)                                  maintain the Properties in compliance
with all applicable Environmental Laws;

 

(b)                                 not cause or permit the manufacture, use,
generation, transportation, treatment, storage, Release, or handling of any
Hazardous Material at the Properties in violation of Environmental Law;

 

(c)                                  cause its sublessees and/or its or their
respective agents, employees, contractors and invitees to comply with all
applicable Environmental Laws with respect to the Properties;

 

(d)                                 within ten (10) Business Days of
learning of any Environmental Claim in connection with the Properties, notify
the Lessor in writing thereof and provide the Lessor any reasonably requested
documents related thereto; and

 

(e)                                  upon the Lessor’s request, promptly
provide or otherwise make available to the Lessor any records concerning the
Properties which are required to be maintained under any Environmental Law and
which the Lessee then possesses or can reasonably obtain.

 

10.                               USE AND LOCATION

 

10.1                        Location

 

The Lessee shall not remove, or permit to be removed,
the Improvements or any part thereof from the Properties without the prior
written consent of the Lessor, except that, subject to Article 12 hereof,
the Lessee or any other Person may remove (a) in accordance with the
provisions of Section 9.3, any Alteration with respect to which title has
passed to or remained with the Lessee pursuant to such Section 9.3, (b) any
Improvements if title to such Improvements shall have passed to the Lessee, (c) any
part of the Improvements on a temporary basis for the purpose of repair or
maintenance thereof, (d) any part of the Improvement which has been
replaced by another part which has become subject to this Lease and the Lien of
the Security Documents or (e) any part of the Improvement which has become
obsolete to the Lessee, whereupon such obsolete part shall cease to be subject
to this Lease and the Lien of the Security Documents; provided that in
the case of this clause (e) (i) the aggregate value of all such
removed parts not given to Lessor shall not exceed $5,000,000 (in the aggregate
for purposes of this Lease, (ii)  the 

 

25

 

Lessee will cause such removal to be performed
diligently, in good faith and in a good and workmanlike manner and in
compliance with all Applicable Laws and Regulations, and will promptly and
fully repair all damage to the Properties caused by such removal and (iii) the
Lessee shall have made such Alterations or adjustments to the Properties as are
necessary to assure that the functions served by any such removed parts shall
continue to be provided by other parts of the Properties.

 

10.2                        Use

 

The Lessee may use and occupy the Properties for any
Permitted Uses. Permitted Uses shall mean any
lawful purposes except that no use may be made (whether by the Lessee or any
assignee or sublessee of the Lessee or otherwise) which: (a) is a public
or private nuisance or which violates any Applicable Laws and Regulations upon
or in any Property or any portion thereof, (b) would void any certificate
of occupancy required for a Property, (c) involves the mining or removal
of any oil, gas or minerals, (d) results in any violation of any
Environmental Law that results in any Environmental Claims from which any
material Environmental Damages become due and owing, or otherwise in any manner
involves any Release of Hazardous Materials into the environment except in
compliance with all applicable Environmental Laws and Governmental Actions
issued pursuant to Environmental Laws or that makes it impossible to obtain, or
results in the cancellation of or breach of any representation or restriction
under the policies of insurance required by Articles 11 hereof; (e) is
selling, renting or exhibiting pornographic material or other sexually explicit
material (except as part of a magazine store customary for office buildings);
or (f) is a massage parlor.  Without
limiting the foregoing, Lessee shall not permit the handling, processing,
storage or disposal of Hazardous Materials on or at the Properties except to
the extent incidental to or required for the conduct of a Permitted Use or a
permitted Alteration, and then only in compliance with all applicable
Environmental Laws.

 

11.                               INSURANCE

 

11.1                        Coverage

 

Subject to the Lessee’s rights of self-insurance set
forth in this Section 11.1, the Lessee shall maintain:

 

(a)                                  standard all-risk property insurance
covering the Improvements in an amount at least equal to the replacement cost
of the Improvements, but not less than the outstanding principal balance of the
Notes;

 

(b)                                 “boiler and machinery” insurance with
respect to damage (not insured against pursuant to Section 11.1(a) hereof)
to the boilers, pressure vessels or similar apparatus located on the Properties
for risks normally insured against under boiler and machinery policies;

 

(c)                                  commercial general liability insurance
including broad form contractual liability coverage with minimum combined
single limits of $2,000,000 (except when the Security Documents shall no longer
be in effect said limit shall be $1,000,000) for injury to or death of one or
more Persons or damage to or destruction of property in any one occurrence;

 

26

 

(d)                                 umbrella/excess liability insurance over
the insurance required by subsection (c) with combined minimum coverage of
$5,000,000 written on an occurrence form coverage basis;

 

(e)                                  statutory workers’ compensation insurance
or qualified self-insurance;

 

(f)                                    flood insurance with respect to those
portions of the Properties that are located in areas identified by the Federal
Emergency Management Agency as having special hazards; and

 

(g)                                 builder’s risk coverage during
construction.

 

The insurance required to be maintained pursuant to
this Lease shall be no less favorable than that maintained on the Lessee’s
other properties and shall be written by companies of reputable standing.

 

Any of the foregoing insurance coverages may be
carried as a part of blanket policies, provided that (i) upon the
Lessor’s request, the insurer under such blanket policy(ies) shall certify to
the Lessor and the Indenture Trustee any sublimits applicable to the
Properties, which amounts shall not be less than those required by this Section 11.1;
(ii) any such policy(ies) shall otherwise comply with the requirements of
this Article 11; and (iii) the protection afforded, except for the
exhaustion of aggregate limits, under any such policy(ies) shall be no less
than that which would have been afforded under a separate policy or policies
relating only to the Properties.

 

Notwithstanding the preceding provisions of this Section 11.1,
the Lessee shall be entitled to self-insure and/or have deductibles against all
risks described in Section 11.1(a)-(g) so long as the Lessee
satisfies the Rating Test.  In the event
the Lessee fails in part or whole to carry insurance which complies with the
requirements of this Article 11, if the Lessee is then entitled to
self-insure the Lessee will not be deemed to be in breach of this Lease, but
will be deemed to self-insure to the extent of such noncompliance.  If the Lessee does not satisfy the Rating
Test, then the amount of permitted self insurance and/or deductibles with respect
to the Lessee shall not exceed $5,000,000 in the aggregate for the lines of
insurance specified in Sections 11.1(a), (b), (f) and (g) and
$5,000,000 in the aggregate for the lines of insurance specified in Sections
11.1(c), (d) and (e).  To the extent
the Lessee is not permitted to self-insure under the terms hereof, each insurer
must have a claims paying ability rating of “A” or better from Duff &
Phelps and “A” or better from Moody’s, or if an insurer is not rated by Duff &
Phelps or Moody’s, it has an equivalent rating from at least one other
nationally recognized statistical agency. 
In the event the Lessee does not satisfy the Rating Test (with the
definition thereof modified to change the “BBB” referenced therein to “BBB-”
and the “Baa2” referenced therein to “Baa3”), then the Lessee’s maximum
deductibles shall be the lesser of that described in the second preceding
sentence or the standard deductible for comparable buildings in the same region
as certified in writing by a national insurance broker or agency.  The two preceding sentences shall be void and
of no effect after the Security Documents are no longer in effect.  The Lessor and the Owner Participant shall be
entitled to maintain insurance coverage with respect to the Properties,
provided that such insurance shall not increase the cost to the Lessee of
carrying, or interfere with the ability of the Lessee to carry, insurance with
respect to the Properties.

 

11.2                        Policy Provisions

 

Any insurance policy required to be maintained by the
Lessee pursuant to Section 11.1 shall:

 

27

 

(a)                                  specify the Lessee as the insured and the
Lessor (in both its individual and trust capacities), the Owner Participant,
the Co-Trustee, the Pass Through Trustee (in both its individual and trust
capacities) and the Indenture Trustee (in both its individual and trust
capacities) as additional insureds as to all such insurances (except the
insurance described in Section 11.1(e));

 

(b)                                 provide, in the case of insurance carried
pursuant to Section 11.1(a) and (b), that all insurance proceeds in
respect of any loss or occurrence (i) shall be adjusted with the Lessee,
unless and only for so long as a Special Default or a Lease Event of Default
shall be continuing, in which case such proceeds shall be adjusted solely with
the Lessor and (ii) shall be payable (x) if no Special Default or
Lease Event of Default is continuing, to the Lessee in accordance with Section 14.2,
and (y) in all other circumstances unless and until the Indenture shall
have been satisfied and discharged in accordance with Section 11.01
thereof, to the Indenture Trustee and thereafter, to the Lessor;

 

(c)                                  provide that in respect of the interests
of the Lessor, the Co-Trustee, the Owner Participant, the Pass Through Trustee
and the Indenture Trustee, such policies shall not be invalidated by any action
or inaction of the Lessee or any other Person (other than the Person making the
claim thereunder) and shall insure the Lessor, the Co-Trustee, the Owner
Participant, the Pass Through Trustee and the Indenture Trustee regardless of,
and any claims for losses shall be payable notwithstanding:

 

(i)            any act of negligence, including any
breach of any condition or warranty in any policy of insurance, of the Lessee
or any other Person (other than the Person making the claim thereunder);

 

(ii)           the occupation or use of the Properties
for purposes more hazardous than permitted by the terms of the policies;

 

(iii)          any foreclosure or other proceeding or
notice of sale relating to any of the Properties; and

 

(iv)          any change in the title to or ownership
of any of the Properties after the Lessee and its insurance underwriter has
notice of such change in title or ownership;

 

(d)                                 provide that such insurance shall be
primary insurance and that the insurers under such insurance policies shall be
liable under such policies without right of contribution from any other
insurance coverage effected by or on behalf of the Lessor, the Owner
Participant, the Pass Through Trustee or the Indenture Trustee under any other
insurance policies covering a loss that is also covered under the insurance
policies maintained by the Lessee pursuant to this Article 11 and shall
expressly provide that all provisions thereof, except the limits of liability
(which shall be applicable to all insureds as a group) and liability for
premiums (which shall be solely a liability of the Lessee), shall operate in
the same manner as if there were a separate policy covering each insured;

 

(e)                                  provide that any cancellation (except at
the request of the Lessee) thereof shall not be effective as to the Lessee, the
Lessor, the Owner Participant, the Pass Through Trustee and the Indenture
Trustee until at least 30 days after receipt by the Lessee, the Lessor, the
Pass Through Trustee and the Indenture Trustee of written notice thereof;

 

28

 

(f)                                    waive any right of subrogation of the
insurers against the Lessor, the Owner Participant, the Pass Through Trustee
and the Indenture Trustee, and waive any right of the insurers to any setoff or
counterclaim or any other deduction, whether by attachment or otherwise, in
respect of any liability of the Lessor, the Owner Participant, the Pass Through
Trustee and the Indenture Trustee; and

 

(g)                                 provide that the whole or any part of the
right, title and interest of the Lessor therein may be assigned to the
Indenture Trustee.

 

11.3                        Evidence of Insurance

 

If the Lessee fails to satisfy the Rating Test at any
time during the Lease Term, then the Lessee shall promptly (and in any event
within 30 days) deliver to the Lessor, the Pass Through Trustee and the
Indenture Trustee evidence of all insurance coverages as required by this Article 11
and annually thereafter until such time as the Lessee satisfies the Rating
Test, the Lessee shall deliver to the Lessor, the Owner Participant, the Pass
Through Trustee and the Indenture Trustee certificates of insurance evidencing
the provisions described in Section 11.2(a) through (g) executed
by the insurer or its duly authorized agent and stating that in the opinion of
such issuer or its agent that such insurance complies with the provisions of
this Article 11, and if the signer of such certificate is unwilling to
make such statement on a full recourse basis, such certificate shall be
accompanied by an Officer’s Certificate of the Lessee which also certifies as
to such matters.

 

12.                               RETURN OF LEASED PROPERTY

 

With the exception of any Properties which have been
transferred, or leased under a FMV Lease or a Partial Occupancy Lease, to the
Lessee pursuant to Article 3, 6, 14 or 19 of this Lease or Article IX
of the Participation Agreement, the Lessee shall, on the expiration or earlier
termination of this Lease with respect to a Property, and at its own expense,
return such Property to the Lessor by surrendering the same into the possession
of the Lessor free and clear of all Liens other than (i) Lessor Liens,
Remainderman Liens, and Indenture Trustee Liens, (ii) Liens described in
clauses (a), (f) or (g) (to the extent expressly permitted to survive
termination of this Lease), of the definition of Permitted Liens except that
solely for purposes of this sentence, clause (f)(z) of the definition of
Permitted Liens shall be deemed to read: 
“(z) singly or in the aggregate do not (i) reduce, other than
to a de minimis extent, the Fair Market Sales Value of the applicable Property,
(ii) materially interfere with or result in a detriment to the conduct of
the Lessee’s business on the Properties pursuant to the Lease, (iii) impair,
other than to a de minimis extent, the usefulness of the applicable Property or
(iv) impair the Lessor’s interest or the Owner Participant’s interest or
the Indenture Trustee’s Lien on any portion of the Estate” and (iii) inchoate
Liens for taxes which are not yet due, and in the condition required by this
Lease (as modified by Alterations permitted by this Lease), ordinary wear and
tear excepted; provided that any Improvements removed from the
Properties pursuant to Section 10.1(c) shall have been returned to
and reinstalled on such Properties.  When
the proposed parking facility (Parcel 2) located in St. Petersburg, Florida is
returned to Lessor, it shall be free of asbestos and the office building,
drive-through facilities, freestanding automated teller machines, and cash
vault portion of such parking facility shall have been razed and all debris
removed.

 

Each Property when returned shall either be in “core
and shell” condition or shall be in a condition such that such Property can be
put to the same general use as such Property was used on the Closing Date (it
being understood that a Property which is an office building may have retail
space customary for the location of such Property) or, at the Lessee’s
election, if a Property 

 

29

 

is not then in either of such conditions, the Lessee
may instead pay the Lessor in cash the reasonable cost of converting such
Property to be in either such conditions, as the Lessee may elect (which
payment shall include any expected loss of revenue to the Lessor during the
time of conversion).  If such cost cannot
be agreed by the Lessor and the Lessee it shall be determined by the Appraisal
Procedure.

 

If the Lessee desires to remove any Severable
Alteration from a Property during the 360 days prior to the return of such
Property to Lessor (unless such return is a result of a Lease Event of Default,
Event of Taking or Event of Loss), title to which is vested in Lessee pursuant
to Section 9.3 hereof, the Lessee shall give Lessor at least 90 days prior
written notice and Lessor shall have the right to purchase any such Severable
Alteration for its Fair Market Sales Value. 
Any such Alteration or other property of the Lessee which is not removed
prior to the time of return shall, at Lessor’s option, be removed by the Lessee
at the Lessee’s expense or become the property of Lessor and title thereto
shall vest in Lessor.

 

13.                               ASSIGNMENT

 

The Lessee may (at the Lessee’s expense) assign all of
its right, title or interest in, to or under this Lease as to one or more
Properties provided no Lease Event of Default or Special Default is then
continuing.  An assignment of the Lessee’s
rights under this Lease as to less than all of the Properties shall be
effectuated by the execution by Lessor and the Lessee of an amendment of this Lease
removing such Properties from the terms hereof and the execution and delivery
of a separate lease of the Properties which are the subject of Lessee’s
assignment, which lease shall be on the same terms and conditions as this Lease
except that Basic Rent and Stipulated Loss Values shall relate only to the
Properties which are the subject of such assignment.  In connection with any such assignment, the
parties will negotiate such amendments to the Operative Documents as are
necessary to effectuate the foregoing and the Lessee shall pay all parties’
costs and expenses (including reasonable attorneys fees and expenses) in
connection therewith.  In the event of an
assignment of all of the Lessee’s rights under this Lease, the new lessee shall
assume all of the Lessee’s obligations hereunder.  Notwithstanding any assignment by the Lessee,
all obligations of the Lessee shall continue in full effect as obligations of a
principal and not of a guarantor or surety, as though no assignment had been
made.  The Lessee will notify the Lessor
and the Indenture Trustee of any such assignment and will provide the Lessor
and the Indenture Trustee with a copy of such assignment at the Lessor’s
request.

 

14.                               LOSS, DESTRUCTION, CONDEMNATION OR
DAMAGE

 

14.1                        Payment of Stipulated Loss Value on an
Event of Loss

 

If an Event of Loss shall occur with respect to a
Property, the Lessee shall give the Lessor and the Indenture Trustee prompt
written notice of such occurrence and the date thereof and the Lessee may elect
one of the following options (it being agreed that (x) if the Lessee shall
not have made the offer referred to in the following clause (i) within 60
days of the occurrence of the Event of Loss, the Lessee shall be deemed to have
elected the option set forth in the following clause (ii) and (y) if
it is impossible to restore, repair, replace or rebuild such Property, the
Lessee must elect the following clause (i)):

 

(i)            offer to purchase such Property from the
Lessor on a Stipulated Loss Value Date not less than 90 or more than 270 days
after the date such offer is made at a purchase price equal to the sum of (A) Stipulated
Loss Value of such Property 

 

30

 

determined as of such Stipulated Loss Value Date, plus
(B) all Supplemental Rent due and owing on such Stipulated Loss Value Date
(including, without limitation, any transfer taxes and other expenses
associated with such transfer which are indemnifiable under Article VIII
of the Participation Agreement) plus (C) all Basic Rent due and owing on
Rent Payment Dates on or prior to such Stipulated Loss Value Date (but not
Basic Rent payable in advance on such Stipulated Loss Value Date), in which
case the Lessor shall have 60 days from the date of receipt of the Lessee’s
offer to decide whether or not to accept such offer; or

 

(ii)           promptly, and in any event within 90 days
of the occurrence of such Event of Loss, begin the process of restoring,
repairing, replacing or rebuilding the Improvements which were damaged as a
result of such Event of Loss and diligently pursue such rebuilding and repair
so as to restore the affected Property or Properties to at least the value,
residual value and useful life thereof immediately prior to the occurrence of
such Event of Loss assuming such Property was in the condition required by this
Lease.  If the Lessee and the Lessor
cannot agree as to such value, such value will be determined by the Appraisal
Procedure.  The Casualty Restoration
Costs shall be paid first out of the Lessee’s own funds to the extent the
Casualty Restoration Costs exceed the Net Casualty Proceeds actually received
and then out of the Net Casualty Proceeds.

 

If the Lessee makes an offer to purchase a Property
pursuant to Section 14.1(i) and the Lessor accepts such offer or fails
to respond to such offer within the 90-day period referenced in Section 14.1(i),
the Lessee shall pay the purchase price specified in Section 14.1(i) to
the Lessor on such Stipulated Loss Value Date; provided that any Net
Casualty Proceeds then held by the Lessor or the Indenture Trustee shall be
credited against such purchase price and any Net Casualty Proceeds remaining or
collected after payment in full of all such amounts payable pursuant to Section 14.1(i) shall
be paid to or retained by the Lessee.  Upon payment in full of all amounts payable
pursuant to Section 14.1(i), (w) subject to Section 11.01 of the
Indenture, such Property shall be released from the Lien of the Security
Documents, (x) the Lease Term shall end with respect to such Property, (y) the
obligations of the Lessee hereunder with respect to such Property (other than
any obligations expressed herein as surviving termination of this Lease) shall
terminate as of the date of such payment and (z) the Lessor shall transfer
to the Lessee, or if the Lessee shall so designate, to the property damage
insurer, without recourse or warranty but free and clear of Lessor Liens, all
right, title and interest of the Lessor in, to and under such Property
including all related Net Proceeds not otherwise retained by the Lessee or
credited against the purchase price as provided above.

 

In the event that the Lessor rejects the offer of the
Lessee (which the Lessor may do only if it has deposited funds sufficient to
pay all amounts due and owing on the Notes as of such Stipulated Loss Value
Date), to purchase such Property as provided in clause (i) of this Section 14.1
at the purchase price stated therein, the following amount shall be paid to or
retained (in the case of the proceeds of insurance) by the Lessor: the sum of (A) all
insurance proceeds payable under the policy or policies of insurance required
by this Lease, plus (B) an amount equal to the deductible under such
policy or policies, plus (C) any amounts the Lessee has chosen to
self-insure up to Stipulated Loss Value of such Property (the amounts described
in clauses (A), (B) and (C) being collectively referred to as the Insurance Proceeds) plus (D) all Supplemental Rent then
due, plus (E) accrued but unpaid Basic Rent due as of such date (but not
Basic Rent payable in advance on 

 

31

 

the Stipulated Loss Value Date).  Upon payment in full of such amount (1) the
Lease Term shall end, and (2) the obligations of the Lessee hereunder
(other than any obligations expressed herein as surviving termination of this
Lease) with respect to the Property or Properties suffering such Event of Loss
shall terminate as of the date of such payment. 
If the Lessor elects to reject the offer of the Lessee hereunder to
purchase such Property pursuant to this Section 14.1, such notice of
rejection shall be deemed effective only if it is countersigned by the
Indenture Trustee if the Lien of the Security Documents is then in effect.

 

If the Lessee elects Section 14.1(ii) with
respect to a Property, the Lessee may request that the Owner Participant obtain
(at the Lessee’s expense) an opinion from counsel reasonably selected by Owner
Participant to determine whether such election shall result in any amounts
becoming due under the Tax Indemnification Agreement.  The Owner Participant shall obtain such
opinion within 30 days of such request. 
If (x) such opinion concludes that it is more likely than not that
an amount in excess of $200,000 shall be so due or (y) Owner Participant
does not obtain any such opinion within such 30 day period, the Lessee may,
within 20 days of receipt of such opinion or of the end of such 30 days period,
whichever is earlier, elect to offer to purchase such Property by payment of
the amounts described in Section 14.1(i), whereupon the Lessor and the
Lessee shall proceed as if the offer contemplated by Section 14.1(i) had
been made.

 

14.2                        Application of Payments When Lease
Continues

 

Payments (except for payments under insurance policies
maintained other than pursuant to Article 11 of this Lease) received at
any time by the Lessor, the Indenture Trustee or the Lessee from any
Governmental Authority or other Person with respect to any Condemnation or
Casualty to a Property or any part thereof or with respect to an Event of Loss
not resulting in a termination of this Lease, shall (except to the extent Section 14.5
applies) be paid to the Indenture Trustee and then immediately to the Lessee,
to be applied, as necessary, for the repair or restoration of such Property and
Improvements and any excess remaining thereafter shall, in the case of a
Casualty or Event of Loss not resulting in a termination of this Lease, be
retained by the Lessee, and, in the case of a Condemnation, to the extent the
Lessee cannot rebuild and restore the affected Property to its value, residual
value and useful life as existed immediately prior to such Condemnation, excess
amounts shall be for the account of the Lessee and the Lessor, as their
interests may appear.  All such repair
and restoration shall be effected by the Lessee in compliance with the
requirements of Section 9.1 and Section 9.2.

 

The Lessee shall maintain records for three years
setting forth information relating to the receipt and application of payments
in accordance with this Section 14.2. 
Such records shall be kept on file by the Lessee at its offices and
shall be made available to the Lessor and the Indenture Trustee upon request.

 

From and after a Condemnation, Casualty or Event of
Loss and during or prior to any period of repair or rebuilding pursuant to this
Article 14, this Lease will remain in full force and effect and Rent shall
continue to accrue and be payable without abatement or reduction.

 

14.3                        Payment of Stipulated Loss Value on an
Event of Taking

 

If an Event of Taking shall occur with respect to a
Property, the Lessee shall give the Lessor, the Owner Participant, the Pass
Through Trustee and the Indenture Trustee prompt written notice of such
occurrence and the date thereof, and the Lessee shall offer to purchase the
affected Property from the Lessor on a Stipulated Loss Value Date not less than
90 or more than 270 days after the

 

32

 

Event of
Taking at a purchase price equal to the sum of (A) Stipulated Loss Value
with respect to such Property determined as of such Stipulated Loss Value Date,
plus (B) all Supplemental Rent due and owing on such Stipulated Loss Value
Date (including, without limitation, any transfer taxes and other expenses
associated with such transfer which are indemnifiable under Article VIII
of the Participation Agreement), plus (C) all Basic Rent due and owing
with respect to Rent Payment Dates on or prior to such Stipulated Loss Value
Date (but not Basic Rent payable in advance on the Stipulated Loss Value
Date).  If the Lessor accepts such offer,
or fails to respond to such offer within 90 days of its receipt of such notice,
the Lessee shall pay the purchase price set forth in the preceding sentence on
such Stipulated Loss Value Date, provided that the Net Condemnation
Proceeds then held by the Lessor or the Indenture Trustee will first be
allocated among the Lessee and Lessor as their interests appear and, second,
the amounts allocated to the Lessee and the Lessor shall be applied in
reduction of the Lessee’s obligation to pay the purchase price for such
Property, if not already paid by the Lessee, and the balance, if any, of the
Net Condemnation Proceeds received or remaining thereafter shall be divided
between the Lessor and the Lessee as their interests appear, or if the purchase
price for such Property has already been paid by the Lessee, the Net
Condemnation Proceeds shall be divided between the Lessor and the Lessee as
their interests appear.  If the Lessor
rejects such offer within such 90-day period, the Net Condemnation Proceeds
will first be allocated among the Lessee and the Lessor as their interests
appear and, second, the amounts allocated to the Lessee and the Lessor shall be
paid over to, and retained by, the Lessor up to said Stipulated Loss Value and
any excess Net Condemnation Proceeds shall be divided between the Lessor and
the Lessee as their interests may appear; provided that if the parties
cannot agree upon such allocation of the excess Net Condemnation Proceeds, the
Lessor and the Lessee agree to submit the matter to a mutually agreed upon
method of arbitration.  The Lessee may
file a separate claim for its own losses (such as loss of fixtures, equipment
and alterations owned by it) and moving and relocation expenses so long as such
claim does not reduce the amount payable to the Lessor on account of its
interest in the Properties.  Upon
distribution of the Net Condemnation Proceeds as provided in this
Section 14.3, in respect of amounts due under this Section 14.3, and
payment of the sum of (A) all Supplemental Rent then due, plus
(B) all Basic Rent-due on such date (but not Basic Rent payable in advance
on the relevant Stipulated Loss Value Date), (1) the Lease Term shall end
for such Property, (2) the obligations of the Lessee hereunder (other than
any obligations expressed herein as surviving termination of this Lease) shall
terminate with respect to the affected Property as of the date of such payment
and (3) in the case of the purchase of the affected Property by the Lessee
as provided in this Section 14.3, the Lessor shall transfer to the Lessee,
or if the Lessee shall so designate, the condemning authority, without recourse
or warranty but free and clear of Lessor Liens all right, title and interest of
the Lessor in, to and under the affected Property shall be released from the
Lien of the Security Documents, subject to Section 11.01 of the
Indenture.  If the Lessor elects to
reject the offer of the Lessee hereunder to purchase such Property pursuant to
this Section 14.3, it must prepay the Allocable Portion of the Notes with
respect to such Property and the notice of rejection shall be deemed effective
only if it is countersigned by the Indenture Trustee.  Upon all payments due under this
Section 14.3, with respect to a Property, (1) the Lease Term will end
for such Property, and (2) the obligations of the Lessee hereunder (other
than any obligations expressed herein as surviving termination of this Lease)
with respect to such Property shall terminate.

 

14.4                        Application
of Certain Payments Not Relating to an Event of Taking

 

In case of a
Condemnation, this Lease shall remain in full force and effect, without any
abatement or reduction of Basic Rent, and the Net Condemnation Proceeds shall,
unless a Special Default or a Lease Event of Default has occurred and is
continuing, be paid as set forth in Section 14.2, 

 

33

 

except that
any portion of the Net Condemnation Proceeds that was awarded with respect to
the time period after the expiration or termination of the Lease Term shall be
paid to the Lessor.

 

14.5                        Other
Dispositions

 

Notwithstanding
the foregoing provisions of this Article 14, so long as a Special Default
or a Lease Event of Default shall have occurred and be continuing, any amount
that would otherwise be payable to or for the account of, or that would
otherwise be retained by, the Lessee pursuant to this Article 14 shall be
paid to the Indenture Trustee (or to the Lessor after the Security Documents
shall have been satisfied and discharged) as security for the obligations of
the Lessee under this Lease and, at such time thereafter as no Special Default
or Lease Event of Default shall be continuing, such amount shall be paid
promptly to the Lessee.

 

14.6                        Negotiations

 

In the event
any part of the Properties becomes subject to Condemnation or Event of Taking
proceedings, the Lessee shall give notice thereof to the Lessor, the Pass
Through Trustee and the Indenture Trustee promptly after the Lessee has
knowledge thereof and shall control the negotiations with the relevant
Governmental Authority unless a Lease Event of Default shall be continuing, in
which case the Lessor shall control such negotiations; provided that in
any event the Lessor and the Owner Participant may participate at the Lessee’s
expense in such negotiations, and no settlement will be made without Lessor’s
and Owner Participant’s prior consent, not to be unreasonably withheld.  The Lessee shall give to the Lessor, the
Owner Participant, the Pass Through Trustee and the Indenture Trustee such
information, and copies of such documents, which relate to such proceedings, or
which relate to the settlement of amounts due under insurance policies required
by Article 11, and are in the possession of the Lessee, as are reasonably
requested by the Lessor, the Owner Participant, the Pass Through Trustee or the
Indenture Trustee.

 

14.7                        No Rent
Abatement

 

Rent shall not
abate hereunder by reason of any Casualty, Event of Loss or Condemnation when
this Lease does not terminate pursuant to the terms hereof, and the Lessee
shall continue to perform and fulfill all of the Lessee’s obligations,
covenants and agreements hereunder notwithstanding such Casualty, Event of Loss
or Condemnation.

 

14.8                        Investment

 

The Lessor
agrees that, in accordance with Section 10.09 of the Indenture, to the
extent the Lessor can control how any funds held by the Indenture Trustee
pursuant to this Article 14 are invested, the Lessor shall follow the
instructions of the Lessee with respect to the nature and timing of such
investments unless a Special Default or a Lease Event of Default has occurred
and is continuing.

 

15.                               INTEREST
CONVEYED TO LESSEE

 

This Lease is
an agreement of lease and the Lessor does not convey to the Lessee any right,
title or interest in or to the Properties except as a lessee.

 

34

 

16.                               SUBLEASE

 

16.1                        Sublease
Requirements

 

The Lessee may
sublease the Properties or any part thereof to any Person, on such terms and
conditions as the Lessee may desire in its sole discretion, without the consent
of the Lessor; provided, however, that (i) any such sublease shall not
release the Lessee from any of its obligations or liabilities under this Lease
of any nature whatsoever; (ii) any such sublease shall be expressly
subject and subordinate to this Lease and the Lien of the Security Documents;
(iii) no such sublease may be entered into if a Lease Event of Default or
a Special Default has occurred and is continuing; (iv) any sublessee shall
not be bankrupt at the inception of the sublease and shall be permitted to use
the Properties only for the purposes permitted under this Lease; (v) any
such sublease shall not increase the Lessor’s, the Owner Participant’s, the
Indenture Trustee’s or the Pass Through Trustee’s exposure to the risk of
Environmental Claims being made against it; and (vi) any such sublease of
a Property or any portion thereof shall be for a term that does not extend
beyond the Lease Term with respect to such Property (including any then
exercised Renewal Terms). 
Notwithstanding the foregoing, any Existing Subleases shall not be
subject and subordinate to this Lease or the Lien of the Security Documents and
may, to the extent permitted under such Existing Sublease on the date of this
Lease, extend beyond the Lease Term with respect to the related Property.

 

Notwithstanding
clauses (ii) and (vi) of the immediately preceding paragraph, the
Lessee may enter into subleases which extend beyond the Lease Term (including
any then exercised Renewal Term), provided that the following criteria
are met at the inception of such sublease (the NonDisturbance Criteria):

 

(i)                                     each such sublease
agreement shall be in substantially the form of Exhibit B to this Lease;
provided, however, that Lessor agrees to approve such reasonable variations in
the form of such sublease agreement as are requested by Lessee on a
case-by-case basis in order to facilitate specific subleases which otherwise
satisfy the Non-Disturbance Criteria;

 

(ii)                                  the net effective
rent, taking into account all economic terms, must be at least equal to the
Fair Market Rental Value for comparable space in comparable buildings for a
like term with a tenant of comparable financial creditworthiness;

 

(iii)                               for subleases in excess
of 20,000 Square Feet, the sublessee thereunder must provide evidence
reasonably satisfactory to the Lessor that such sublessee has reasonably
foreseeable financial ability to perform its obligations under the sublease;

 

(iv)                              for subleases with
Affiliates of the Lessee, the Lessor must consent, which consent will not be
unreasonably withheld, or at the option of the Lessee, a third party
independent appraiser acceptable to Lessee and Lessor must opine that the rents
of the sublease comply with (ii) above;

 

(v)                                 [reserved];

 

35

 

(vi)                              the basic term of the
sublease must not extend beyond 10 years, and any renewal terms must be at Fair
Market Rental Value and must not extend, collectively, beyond an additional
five years;

 

(vii)                           basic and renewal rents
under the sublease must be adjusted for CPI increases, or for a fixed increase
of at least 2% per year, every five years, and basic rents of the sublease must
not decrease;

 

(viii)                        the present value of all rent
concessions (including free rent, rent credits, rental abatements, tenant
improvement allowances, moving allowances, space assumption or similar
concessions or any other related transaction) during the basic term of the
sublease must not exceed 20% of the present value (calculated using a discount
rate equal to the Interest Rate, as adjusted for monthly compounding) of the
scheduled basic rent payable during the basic term of the sublease;

 

(ix)                                the sublease must
include provisions that obligate the sublessee to pay its prorata share of
operating expenses of the Property in accordance with relevant market practice
at the time;

 

(x)                                   sublease tenant
improvements must not require extraordinary removal or modification to render
the space usable by subsequent tenants;

 

(xi)                                the sublessee’s share
of reserved parking spaces related to such Property, if any, must be no more
than the sublessee’s share of Square Feet in such Property; and

 

(xii)                             the sublease must be
subject to common area agreements governing parking and maintenance of parking
areas.

 

In the event
that the Lessor and the Lessee cannot agree on whether any element of the
Non-Disturbance Criteria has been satisfied, an independent third party agreed
upon by the Lessor and the Lessee shall conclusively determine such issue.  If such a third party is not agreed upon by
both parties within 10 days of request therefor by either party, then either
party may apply to the American Arbitration Association to appoint such a third
party.

 

If, in
connection with any sublease, the Lessee requests that the Lessor confirm its
agreement that the Non-Disturbance Criteria have been met, the Lessor shall
respond in writing to any such request within 10 Business Days of receipt of
such request.  Such request, when made,
shall be accompanied by copies of materials relevant to the determination that
the Non-Disturbance Criteria have been met. 
If the Lessor does not respond to the Lessee’s request in writing, either
confirming that the Non-disturbance Criteria have been satisfied, or as
described in the next sentence, by the end of such 10-Business-Day period, the
Lessor shall be deemed to have confirmed that the Non-Disturbance Criteria have
been met for all purposes under this Lease. 
If the Lessor expresses to the Lessee in writing within the relevant
response period that, in the Lessor’s opinion, one or more of the
Non-disturbance Criteria have not been met, the Lessor must specify in such
writing the reasons underlying such a conclusion in reasonable detail.

 

If the
Non-Disturbance Criteria are met, the Lessor and the Indenture Trustee
irrevocably agree that, subject to the terms of the Subordination and
Non-disturbance Agreement relating to such Senior Sublease, if any,
notwithstanding the exercise by the Lessor and the Indenture Trustee of 

 

36

 

any rights
under Article 19 (including but not limited to proceedings for eviction,
termination or other enforcement action) or any termination of this Lease prior
to the expiration of the Lease Term or any then exercised Renewal Term, the
possession and other rights of the sublessee under such Senior Sublease shall
not be disturbed or affected by the Lessor or the Indenture Trustee so long as
no default by the sublessee exists under the terms of such Senior Sublease
(after notice and an opportunity to cure, if any, as provided in the Senior
Sublease).  In the event of termination
of this Lease as to any Property, all sublessees in such Property under Senior
Subleases shall (unless such a default by such sublessee exists) continue as
direct lessees from the Lessor, upon and subject to the terms and conditions of
the Senior Sublease and such sublessees will attorn to the Lessor.  Lessor shall deliver to the Lessee, for the
benefit of the applicable sublessee under the Senior Sublease, within ten
(10) Business Days after the Lessee’s request, a confirmation of such
attornment in favor of the Lessor, by executing a Subordination and
Non-disturbance Agreement.

 

When an Event
of Default is continuing, the rights of the Lessor to determine whether
Non-Disturbance Criteria have been satisfied, and to waive portions of such
Non-Disturbance Criteria, shall be exercisable by, or subject to the approval
of, the Indenture Trustee (or its agent), but otherwise such rights shall not
be exercisable by or subject to the consent or approval of the Indenture
Trustee (or its agent).  The Indenture
Trustee shall join in executing each Subordination and Nondisturbance Agreement
whenever the Lessor does, upon request of Lessor, unless an Event of Default is
then continuing.

 

No sublease of
a Property shall release the Lessee from any liability or from the performance
of any of the Lessee’s duties and obligations under this Lease and the other
Operative Documents to which the Lessee is a party.  If this Lease is terminated as to a certain
Property, the Lessee shall not be liable to the Lessor for any obligations or
responsibilities of any sublessees remaining in such Property, except to the
extent such obligations arise from or relate solely to the sublessees’
possession of such Property prior to the termination of this Lease with respect
to such Property.

 

The Lessee
shall be entitled to retain any or all rent or other amounts paid under any
sublease of the Properties during the Lease Term; provided that so long as a
Lease Event of Default is continuing, the Lessee shall, if the Lessor so
requests, direct sublessees to pay all rent or other amounts due under their
subleases to the Lessor or as it may direct.

 

In the event
the Lessee exercises its rights under Section 6.1 hereof to terminate the
Lease with respect to a Property, on the date on which Lessee’s election to
terminate becomes irrevocable, Lessor shall have the right, either itself or by
agents engaged by Lessor (which engagement may occur by an assumption by Lessor
of Lessee’s leasing agency agreements, if any) to market any unleased space in
such Property.

 

Lessee shall
not amend any Senior Sublease without the written consent of Lessor, Owner
Participant and Indenture Trustee if such amendment results in a breach of any
of the conditions listed in clauses (i)-(xii) above.  Subject to the immediately preceding
sentence, the Lessor shall, at Lessee’s request, approve any amendment,
modification, assignment, subletting, extension, renewal or prepayment of any
sublease (with respect to which a Subordination and Non-disturbance Agreement
is in effect) if the effect thereof does not result in a breach of any of the
conditions listed in clauses (i)-(xii) above or any other provision of the
Operative Documents to which the Lessee is a party.

 

37

 

16.2                        Assignment
of Subleases

 

(a)                                                  Existing Subleases are hereby
assigned by Lessor to Lessee for the Lease Term, and the Lessee assumes and
agrees to perform each and every obligation of the landlord with respect to the
Existing Subleases affecting the Properties, whether such obligations accrued
prior to the Basic Term Commencement Date or accrue during the period from and
after the Basic Term Commencement Date to the date such Existing Subleases are
absolutely reassigned to Lessor as provided in
Section 16.2(c) hereof.

 

(b)                                                 The Lessee hereby collaterally
reassigns to Lessor, as security for the performance of the Lessee’s
obligations hereunder, all of the Lessee’s right, title and interest in and to
(1) each Existing Sublease and (2) each and every sublease that the
Lessee has entered into or may enter into with respect to any Property from
time to time after the Original Closing Date and (3) any and all proceeds
of any of the above, whether presently owned or hereinafter acquired and any
future rights, benefits and claims arising therefrom (hereinafter clauses (1)-(3) collectively
called the Assigned Subleases).

 

(c)                                                  Upon the expiration of the Lease
Term as to a Property, the Assigned Subleases in such Property shall
automatically and without further action of the Lessor or the Lessee be
reassigned to Lessor, in all cases free and clear of all Liens except Lessor
Liens and Indenture Trustee Liens.  Upon
Lessor’s request, Lessee shall execute an assignment of leases in form and
substance reasonably satisfactory to Lessor confirming the foregoing.

 

(d)                                                 The Lessee further acknowledges
that the Lessor shall be further assigning the rights granted pursuant to this
Section 16.2 to the Indenture Trustee under the Indenture.

 

(e)                                                  Notwithstanding the assignment
of rights and security interest granted in this Section 16.2, the Lessor
agrees that, so long as no Lease Event of Default or Default under paragraph
(e) of Article 18 is continuing, Lessee shall have the right to all
rent, income and other sums becoming due and payable under the Assigned
Subleases and the Lessor (and anyone claiming through the Lessor) shall not
communicate or otherwise deal with (unless Lessee shall have given irrevocable
notice of its right to terminate this Lease with respect to the applicable
Property), or collect any rent from, any sublessee, or approach any sublessee
for any acknowledgment of the assignment set forth in this Section 16.2 or
receive any such acknowledgment.

 

(f)                                                    Regardless of whether a Lease
Event of Default or a Default under paragraph (e) of Article 18 is
continuing, so long as the assignment made hereunder remains effective, the
Lessor may exercise any inspection rights that the Lessee may have under a
sublease.

 

16.3                        Sublessor
Improvements

 

The Lessor agrees that for each Approved Sublease it shall reimburse
the Lessee for the unamortized balance (computed without interest on a straight
line basis over the basic term of such Approved Sublease, excluding renewals)
of tenant improvement expenditures made by the Lessee in connection with such
Approved Sublease; such balance to be calculated and reimbursed as of the date
on which the Lessee surrenders possession to the Lessor of the Property which
just before such surrender was subject to such Approved Sublease, whether such
surrender occurs at the expiration or earlier termination of this Lease as it
relates to such Property.

 

38

 

17.                               INSPECTION,
REPORTS AND NOTICES

 

17.1                        Inspection

 

Upon five days’ prior notice (three days’ prior notice if the
Properties subject to the inspection (or any portion thereof) are being
terminated from this Lease) to the Lessee, or in the case of emergency or while
a Lease Event of Default is continuing upon reasonable notice, the Indenture
Trustee, the Pass Through Trustee, the Lessor, the Owner Participant and their
authorized representatives (the Inspecting
Parties) may inspect, at their own expense and risk, the Properties
other than any areas where proprietary information of the Lessee or any
sublessee is retained in the ordinary course of business, but only in a manner
so as to not unreasonably interfere with the Lessee’s or any other occupant’s
business operations on the Properties and, if required by the Lessee, only when
accompanied by a designated representative of the Lessee.  The Inspecting Parties shall have no right to
inspect the books, records or financial information of the Lessee (other than
the books, records or financial information relating directly and primarily to
the Properties, but only after material related to matters other than the
Properties shall have been redacted from such documents).  None of the Inspecting Parties shall have any
duty to make any such inspection or inquiry and none of the Inspecting Parties
shall incur any liability or obligation by reason of not making any such
inspection or inquiry.  None of the
Inspecting Parties shall incur any liability or obligation by reason of making
any such inspection or inquiry except for such Inspecting Party’s gross
negligence or willful misconduct.

 

17.2                        Reports

 

To the extent permissible, the Lessee shall prepare and file in a
timely fashion, or, where the Lessor or the Owner Participant shall be required
to file, the Lessee shall prepare and deliver to the Lessor or the Owner
Participant, as applicable, within a reasonable time prior to the date for
filing, any reports with respect to the condition or operation of the
Properties that shall be required to be filed with any Governmental Authority.

 

17.3                        Notices
from Governmental Authorities

 

The Lessor and
the Owner Participant shall promptly provide the Lessee with copies of any
communications received by the Lessor and the Owner Participant from any
Governmental Authority relating to the Properties.

 

18.                               LEASE
EVENTS OF DEFAULT

 

The following
events shall constitute Lease Events of Default (whether any such event shall
be voluntary or involuntary or come about or be effected by operation of law or
pursuant to or in compliance with any judgment, decree or order of any court or
any order, rule or regulation of any administrative or governmental body):

 

(a)                                  the Lessee shall fail
to make any payment of Basic Rent, Redemption Premium (arising as the result of
the prepayment of any Secured Note pursuant to clauses (b), (c), (d) or
(f) of Section 2.04 of the Indenture) or Stipulated Loss Value and
such failure shall continue for five days after the date such payment was due;

 

(b)                                 the Lessee shall fail
to make any payment of any other Supplemental Rent not specifically set forth
in paragraph (a) of this Article 18 or any other amount payable 

 

39

 

hereunder and such failure shall continue for a period of 30 days after
notice of such failure to Lessee from the Lessor or the Indenture Trustee;

 

(c)                                  the Lessee shall fail
to maintain insurance in the amounts required by Section 11.1 or 11.2
hereof; provided, however, that if such failure is the result of the Lessee not
obtaining the insurance required immediately following its downgrading below
the Rating Test, such failure shall not constitute a Lease Event of Default
unless such failure shall continue for 20 days;

 

(d)                                 the Lessee shall fail
to timely perform or observe any covenant, condition or agreement (not included
in paragraph (a), (b) or (c) of this Article 18) to be performed
or observed by it hereunder or under any other Operative Document to which the
Lessee is a party (other than the Tax Indemnification Agreement) and such
failure shall continue for a period of 30 days after Lessee receives written
notice thereof from the Lessor or the Indenture Trustee; provided that the
continuation of such failure shall not constitute a Lease Event of Default if
(i) such failure is not reasonably curable within 30 days; (ii) the
Lessee is diligently pursuing the cure of such default; (iii) such failure
does not impair in any material respect the Lessor’s ownership interest in the
Properties or impair the Lien of the Security Documents; and (iv) such
cure is completed within 270 days of Lessee’s receipt of written notice of the
default or by the end of the Lease Term, if earlier;

 

(e)                                  the filing by the
Lessee of any petition for dissolution or liquidation, conservatorship or
receivership of the Lessee, or the commencement by the Lessee of any case under
any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or the Lessee shall have consented to the entry of an order for relief
under any such law, or the failure of the Lessee generally to pay its debts as
such debts become due, or the failure by the Lessee promptly to satisfy or discharge
any execution, garnishment or attachment of such consequence as will impair its
ability to carry out its obligations under this Lease, or the appointment of or
taking possession by a receiver, custodian or trustee (or other similar
official) for the Lessee or any substantial part of its property, or a general
assignment by the Lessee for the benefit of its creditors, or the entry by the
Lessee into an agreement of composition with its creditors, or the Lessee shall
have taken any corporate action in furtherance of any of the foregoing; or the
filing against the Lessee of a petition in bankruptcy, insolvency or other
similar law which results in an order for relief being entered or,
notwithstanding that an order for relief has not been entered, the petition is
not dismissed within 90 days of the date of the filing of the petition, or the
filing under any law relating to bankruptcy, insolvency or relief of debtors of
any petition against the Lessee for reorganization, conservatorship or
receivership, composition, extension or arrangement with creditors which either
(i) results in a finding or adjudication of insolvency of the Lessee or
(ii) is not dismissed within 90 days of the date of the filing of such
petition (the term dissolution or liquidation of the Lessee, as used in this
paragraph (e), shall not be construed to include the cessation of the corporate
existence of the Lessee resulting either from a merger or consolidation of the
Lessee into or with another corporation or a dissolution or liquidation of the
Lessee following a transfer of all or substantially all of its assets as an
entirety, if the conditions permitting such actions contained in
Section 5.1 of the Participation Agreement are satisfied); or

 

(f)                                    any representation
or warranty by the Lessee in any Operative Document to which the Lesee is a
party (other than the Tax Indemnification Agreement) or in any certificate or
document delivered to the Lessor or the Indenture Trustee pursuant to any
Operative 

 

40

 

Document to which the Lessee is a party (other than the Tax
Indemnification Agreement) shall have been materially incorrect when made and
shall remain incorrect for 30 days after the Lessee’s receipt of written notice
thereof from the Lessor or the Indenture Trustee unless (i) such breach is
curable and the Lessee is diligently attempting to cure such misrepresentation
and (ii) such cure is completed within 270 days of receipt of such notice
or the end of the Lease Term, if earlier;

 

19.                               ENFORCEMENT

 

19.1                        Remedies

 

Upon the
occurrence of any Lease Event of Default and at any time thereafter so long as
the same shall be continuing, the Lessor may, at its option, by notice to the
Lessee and the Indenture Trustee declare this Lease to be in default, and at
any time thereafter so long as a Lease Event of Default is continuing the
Lessor may exercise one or more of the following rights and remedies as the
Lessor in its sole discretion shall determine:

 

(a)                                  the Lessor may, by
notice to the Lessee, terminate this Lease as to some or all of the Properties
as of the date specified in such notice; however, (A) no reletting,
reentry or taking of possession of the Properties by the Lessor will be
construed as an election on the Lessor’s part to terminate this Lease unless a
written notice of such intention is given to the Lessee,
(B) notwithstanding any reletting, reentry or taking of possession, the
Lessor may at any time thereafter elect to terminate this Lease for a
continuing Lease Event of Default, and (C) no act or thing done by the
Lessor or any of its agents, representatives or employees and no agreement
accepting a surrender of the Properties shall be valid unless the same be made
in writing and executed by the Lessor;

 

(b)                                 the Lessor may
(i) demand that the Lessee, and the Lessee shall upon the demand of the
Lessor, return the Properties promptly to the Lessor in the manner and
condition required by, and otherwise in accordance with all of the provisions
of, Articles 9 and 12 hereof as if the Properties were being returned at the
end of the Lease Term, and the Lessor shall not be liable for the reimbursement
of the Lessee for any costs and expenses incurred by the Lessee in connection
therewith and (ii) without prejudice to any other remedy which the Lessor
may have for possession of the Properties, enter upon the Properties and take
immediate possession of the Properties (to the exclusion of the Lessee) and
expel or remove the Lessee and any other Person who may be occupying the
Properties (except any sublessee under Senior Subleases subject to an
applicable Subordination and Non-Disturbance Agreement), by summary proceedings
or otherwise, all without liability to the Lessee for or by reason of such
entry or taking of possession, whether for the restoration of damage to
property caused by such taking or otherwise and, in addition to Lessor’s other
damages, the Lessee shall be responsible for the reasonably necessary costs and
expenses of reletting, including brokers’ fees, marketing costs, legal fees and
the costs of any repairs made by Lessor. 
The provisions of this Section 19.1(b) shall operate as a
notice to quit and shall be deemed to satisfy any other requirement or
provisions of Applicable Laws and Regulations which may require the Lessor to provide
a notice to quit or of the Lessor’s intention to reenter the Properties and any
such requirements or provisions are hereby waived by the Lessee;

 

(c)                                  the Lessor may sell
all or any part of the Properties at public or private sale, as the Lessor may determine,
free and clear of any rights of the Lessee and without any duty to account 

 

41

 

to the Lessee with respect to such action or inaction or any proceeds
with respect thereto (except to the extent required by paragraph (f) below
if the Lessor shall elect to exercise its rights thereunder) in which event the
Lessee’s obligation to pay Basic Rent hereunder for periods commencing after
the date of such sale shall be terminated or proportionately reduced, as the
case may be (except to the extent that Basic Rent is to be included in
computations under paragraph (e) or (f) below if the Lessor shall
elect to exercise its rights thereunder);

 

(d)                                 to the extent
permitted by Applicable Laws and Regulations, the Lessor may hold, keep idle or
lease to others all or any part of the Properties as the Lessor in its sole
discretion may determine, free and clear of any rights of the Lessee and
without any duty to account to the Lessee with respect to such action or inaction
or for any proceeds with respect to such action or inaction, except that the
Lessee’s obligation to pay Basic Rent from and after the occurrence of a Lease
Event of Default shall be reduced by the net proceeds, if any, received by the
Lessor from leasing the Properties previously leased to the Lessee to any
Person other than the Lessee for the same periods or any portion thereof;

 

(e)                                  the Lessor may,
whether or not the Lessor shall have exercised or shall thereafter at any time
exercise any of its rights under paragraph (b), (c) or (d) of this
Article 19 with respect to one or more Properties, demand, by written
notice to the Lessee, and specify a Stipulated Loss Value Date (the Final Payment Date) not earlier than 25
days after the date of such notice, that the Lessee pays to the Lessor, on the
Final Payment Date, as liquidated damages for loss of a bargain and not as a
penalty (the parties agreeing that the Lessor’s actual damages would be
difficult to predict, but the aforementioned liquidated damages represent a
reasonable approximation of such amount) (in lieu of Basic Rent due after the
Final Payment Date), an amount equal to the sum of (A) all Supplemental
Rent then due and owing plus all accrued Basic Rent unpaid as of the Final
Payment Date other than, in the case where the Lessee pays all or any portion
of Stipulated Loss Value to the Lessor pursuant to clauses (i), (ii) or
(iii) below, the Basic Rent installment due and payable in advance on such
Stipulated Loss Value Date, plus (B) whichever of the following amounts
the Lessor, in its sole discretion, shall specify in such notice (together with
interest on such amount at the Overdue Rate from the Final Payment Date
specified in such notice to the date of actual payment):

 

(i)                                     if a Property has
not been sold, an amount equal to the excess, if any, of the Stipulated Loss
Value of such Property, computed as of the Final Payment Date, over the Fair
Market Sales Value of such Property as of the Final Payment Date (such Fair
Market Sales Value to be determined by mutual agreement of the Lessor and the
Lessee or if they cannot agree within 10 days after such notice by the
Appraisal Procedure);

 

(ii)                                  an amount equal to
the excess, if any, of the Stipulated Loss Value of a Property computed as of
the Final Payment Date over the present value of the Fair Market Rental Value
of such Property for the balance of the useful life of such Property discounted
at the Interest Rate (as adjusted for monthly compounding) (such Fair Market
Rental Value to be determined by mutual agreement of the Lessor and the Lessee
or if they cannot agree within 10 days of such notice by the Appraisal
Procedure); or

 

42

 

(iii)                               the Stipulated Loss Value of a Property
computed as of the Final Payment Date and upon payment of such amount, and the
amount of any unpaid Rent referred to in Section 19.2, the Lessor shall convey
to the Lessee all of the Lessor’s right, title and interest in and to such
Property without recourse or warranty, but free and clear of Lessor’s Liens;

 

(f)                                    if the Lessor shall have sold a Property
pursuant to paragraph (c) above, the Lessor, in lieu of exercising its rights
under paragraph (e) above, may, if it shall so elect, demand that the Lessee
pay to the Lessor, and the Lessee shall pay to the Lessor, on the date of such
sale, as liquidated damages for loss of a bargain and not as a penalty (the
parties agreeing that the Lessor’s actual damages would be difficult to
predict, but the aforementioned liquidated damages represent a reasonable
approximation of such amount) (in lieu of Basic Rent due for periods commencing
on or after the Stipulated Loss Value Date coinciding with such date of sale
(or, if the sale date is not a Stipulated Loss Value Date, the Stipulated Loss
Value Date next preceding the date of such sale)), an amount equal to the sum
of (1) all accrued and unpaid Basic Rent as of such Stipulated Loss Value Date
other than, in the case where the Lessee pays all or any portion of Stipulated
Loss Value on such Stipulated Loss Value Date, the Basic Rent installment due
and payable in advance on such Stipulated Loss Value Date, plus (2) the amount
of any excess of the Stipulated Loss Value of such Property, computed as of
such Stipulated Loss Value Date, over the net proceeds of such sale, together
with interest at the Interest Rate on such excess from such Stipulated Loss
Value Date to the date of sale, plus (3) all Supplemental Rent then due and
owing under this Lease, plus (4) interest at the Overdue Rate on all of the
foregoing amounts from the date of such sale until the date of payment;

 

(g)                                 the Lessor may exercise any other right or
remedy that may be available to it under Applicable Laws and Regulations or in
equity, or proceed by appropriate court action (legal or equitable) to enforce
the terms hereof or to recover damages for the breach hereof.  Separate suits may be brought to collect any
such damages for any period of this Lease, and such suits shall not in any
manner prejudice the Lessor’s right to collect any such damages for any
subsequent period of this Lease, or the Lessor may defer any such suit until
after the expiration of the Basic Term or the then current Renewal Term, in which
event such suit shall be deemed not to have accrued until the expiration of the
Basic Term, or the then current Renewal Term; or

 

(h)                                 the Lessor may retain and apply against the
Lessor’s damages, all sums which the Lessor would, absent such Lease Event of
Default, be required to pay to, or turn over to, the Lessee pursuant to the
terms of this Lease, including, without limitation, any sums which the Lessor
may be required to pay to the Lessee under Section 14.5.

 

19.2                        Survival of the Lessee’s
Obligations

 

No termination of this
Lease, in whole or in part, or repossession of any of the Properties or
exercise of any remedy under Section 19.1 shall, except as specifically
provided therein, relieve the Lessee of any of its liabilities and obligations
hereunder.  In addition, except as
specifically provided therein, the Lessee shall be liable, except as otherwise
provided above, for any and all unpaid Rent due hereunder before, after or
during the exercise of any of the foregoing remedies, including all reasonable
legal fees and other costs and expenses incurred by the Lessor, the Pass
Through Trustee and the Indenture Trustee by reason of the occurrence of any
Lease Event of Default or the exercise of the Lessor’s remedies with respect
thereto, and including all costs and 

 

43

 

expenses incurred in
connection with the return of the Properties in the manner and condition
required by, and otherwise in accordance with the provisions of, Articles 9 and
12 hereof as if such Properties were being returned at the end of the Lease
Term.  At any sale of the Properties or
any part thereof or any other rights pursuant to Section 19.1, the Lessor, the
Owner Participant or the Indenture Trustee may bid for and purchase such Properties.

 

19.3                        Remedies Cumulative; No
Waiver; Consents

 

To the extent permitted by,
and subject to the mandatory requirements of, Applicable Laws and Regulations,
each and every right, power and remedy herein specifically given to the Lessor
or otherwise in this Lease shall be cumulative and shall be in addition to
every other right, power and remedy herein specifically given or now or
hereafter existing at law, in equity or by statute, and each and every right,
power and remedy whether specifically herein given or otherwise existing may be
exercised from time to time and as often and in such order as may be deemed
expedient by the Lessor, and the exercise or the beginning of the exercise of
any power or remedy shall not be construed to be a waiver of the right to
exercise at the same time or thereafter any right, power or remedy.  No delay or omission by the Lessor in the
exercise of any right, power or remedy or in the pursuit of any remedy shall
impair any such right, power or remedy or be construed to be a waiver of any
default on the part of the Lessee or to be an acquiescence therein.  The Lessor’s consent to any request made by
the Lessee shall not be deemed to constitute or preclude the necessity for
obtaining the Lessor’s consent, in the future, to all similar requests.  No express or implied waiver by the Lessor of
any Lease Event of Default shall in any way be, or be construed to be, a waiver
of any future or subsequent Lease Event of Default.

 

20.                               RIGHT
TO PERFORM FOR THE LESSEE

 

If the Lessee shall fail to
perform or comply with any of its agreements contained herein or in any other
Operative Document to which the Lessee is a party, the Lessor may, on five
Business Days’ (one Business Day’s in the case of an emergency) prior notice to
the Lessee, but only if the Lessee is not diligently attempting to cure such
failure, perform or comply with such agreement, and the Lessor shall not
thereby be deemed to have waived any default caused by such failure, and the
amount of such payment and the amount of the expenses of the Lessor (including
reasonable attorney’s fees and expenses) incurred in connection with such
payment or the performance of or compliance with such agreement, as the case
may be, together with interest thereon at the Overdue Rate, shall be deemed
Supplemental Rent, payable by the Lessee to the Lessor upon demand.  The provisions set forth in the preceding
sentence shall not be construed as extending or modifying the cure periods
otherwise provided under Article 18 with respect to Lease Events of Default.

 

21.                               MISCELLANEOUS

 

21.1                        Binding Effect; Successors
and Assigns; Survival

 

The terms and provisions of
this Lease, and the respective rights and obligations hereunder of the Lessor
and the Lessee, shall be binding upon their respective successors, legal
representatives and assigns, and inure to the benefit of their respective
permitted successors and assigns, and the express rights hereunder of the
Indenture Trustee and the Pass Through Trustee shall inure (subject to such
conditions as are contained herein) to the benefit of their respective
permitted successors and assigns.  The
obligations of the Lessee (a) under Section 3.2 and (b) with respect to any
Property or Properties terminated from this Lease, where such obligations
referenced in 

 

44

 

clause (a) or (b) were
accrued prior to the effectiveness of such termination, shall survive the
termination of this Lease.

 

21.2                        Quiet Enjoyment

 

The Lessor covenants that it
will not interfere in the Lessee’s, and any permitted sublessee’s, respective
peaceful and quiet enjoyment of the Properties hereunder during the Lease Term,
so long as no Lease Event of Default has occurred and is continuing, but
subject in all cases to Section 16.1; provided that the Lessor shall have no
responsibility for the actions of the Indenture Trustee, the Pass Through
Trustee or any Person claiming by, through or under either thereof or for any
defects in or exceptions to title to the Properties other than those which are
attributable to Lessor’s Liens.

 

21.3                        Notices

 

Unless otherwise
specifically provided herein, all notices, consents, demands, directions,
approvals, instructions, requests and other communications required or
permitted by the terms hereof to be given to any Person shall be given as
provided in Section 12.3 of the Participation Agreement.

 

21.4                        Severability

 

Any provision of this Lease
that shall be prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction, and the Lessee
shall remain liable to perform its obligations hereunder except to the extent
of such unenforceability.  To the extent
permitted by Applicable Laws and Regulations, the Lessee hereby waives any
provision of law that renders any provision hereof prohibited or unenforceable
in any respect.

 

21.5                        Amendment; Complete
Agreements

 

Neither this Lease nor any
of the terms hereof may be terminated, amended, supplemented, waived or
modified orally, but only by an instrument in writing signed by the party
against which the enforcement of the termination, amendment, supplement, waiver
or modification shall be sought.  This
Lease, together with the other Operative Documents, is intended by the parties
as a final expression of their lease agreement and as a complete and exclusive
statement of the terms thereof, all negotiations, considerations and
representations between the parties having been incorporated herein and
therein.  No course of prior dealings
between the parties or their officers, employees, agents or Affiliates shall be
relevant or admissible to supplement, explain, or vary any of the terms of this
Lease or any other Operative Document. 
Acceptance of, or acquiescence in, a course of performance rendered
under this or any prior agreement between the parties or their Affiliates shall
not be relevant or admissible to determine the meaning of any of the terms of
this Lease or any other Operative Document. 
No representations, undertakings, or agreements have been made or relied
upon in the making of this Lease other than those specifically set forth in the
Operative Documents.

 

45

 

21.6                        Headings

 

The Table of Contents and
headings of the various Articles and Sections of this Lease are for convenience
of reference only and shall not modify, define or limit any of the terms or
provisions hereof.

 

21.7                        Counterparts

 

This Lease may be executed
by the parties hereto in separate counterparts, each of which when so executed
and delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

 

21.8                        Governing Law

 

This Lease shall in all
respects be governed by, and construed in accordance with, the laws of the
State of New York applicable to agreements made and to be performed entirely
within such State, including all matters of construction, validity and
performance, except laws governing conflicts of law, provided that to the
extent the law of the jurisdiction where a Property is located requires that
the laws of such jurisdiction apply to any aspect of this Lease, then to that
extent such laws of such jurisdiction will so apply to such Property.

 

21.9                        Apportionments

 

Upon any termination of this
Lease as to a Property, (a) there shall be apportioned, as of the date of such
termination all items of income and expense, including but not limited to, all
rents (including water or sewer rents), real estate taxes, assessments,
insurance or other charges payable with respect to such Property; (b) the
Lessee shall transfer to Lessor all security deposits (whether cash or other
form of security) from any sublessee under Assigned Subleases, including Senior
Subleases, (c) all contracts pertaining to the operation of such Property
shall, at Lessor’s option as to each such contract if it is assignable, be
assigned to Lessor and assumed by Lessor or its designee, (d) Lessee shall
undertake such other actions as are necessary or appropriate in connection with
the termination of this Lease and the transfer of possession of the Property to
Lessor, (e) the Lessee shall deliver to Lessor or its designee at least one
complete set of as-built plans for the Improvements in Lessee’s or its managing
agent’s possession and (f) the Lessee shall deliver to Lessor copies or
originals of all books and records in Lessee’s or its managing agent’s
possession pertaining to the operation of the Property.

 

21.10                 Discharge of the Lessee’s
Obligations by its Sublessees

 

The Lessor agrees that
performance by any sublessee of the Lessee’s obligations hereunder shall
constitute performance by the Lessee of such obligations to the same extent and
with the same effect hereunder as if such obligations were performed by the
Lessee.

 

21.11                 Nature of Lessor’s
Obligations

 

Trust Company and the
Co-Trustee are each parties to this Agreement solely in their respective
capacities as trustee under the Trust Agreement (1997-D) and not in their
individual capacities (except as expressly stated therein) and in no case shall
Owner Participant, Trust Company or Co-Trustee (or any entity acting as
successor trustee under the Trust Agreement (1997-D)) be personally liable for
or on account of any of the statements, representations, warranties, covenants 

 

46

 

or obligations stated to be those
of Lessor hereunder, all such liability, if any, being expressly waived by the
parties hereto and any Person claiming by, through, or under any such party; provided,
however, that Trust Company (or any such successor trustee) shall be
personally liable hereunder for its own gross negligence or willful misconduct
and for its breach of its covenants, representations and warranties contained
herein, to the extent covenanted or made in its individual capacity.

 

21.12                 Estoppel Certificates

 

Each party hereto agrees
that at any time and from time to time during the Lease Term, it will promptly,
but in no event later than thirty (30) days after request by the other party
hereto, execute, acknowledge and deliver to such other party or to any
prospective purchaser (if such prospective purchaser has signed a purchase
agreement, commitment or letter of intent to purchase the Properties or any
part thereof), assignee or mortgagee or third party designated by such other
party, a certificate stating (a) that this Lease is unmodified and in full
force and effect (or if there have been modifications, that this Lease is in
full force and effect as modified, and identifying the modification
agreements); (b) the date to which Basic Rent has been paid; (c) whether or not
there is any existing default by the Lessee in the payment of Basic Rent or any
other sum of money hereunder, and whether or not, to the knowledge of the
signer, there is any other existing default by either party with respect to
which a notice of default has been served, and, if there is any such default,
specifying the nature and extent thereof; (d) whether or not, to the knowledge
of the signer, there are any setoffs, defenses or counterclaims against
enforcement of the obligations to be performed hereunder existing in favor of
the party executing such certificate and (e) other items that may be reasonably
requested; provided that no such certificate may be requested unless the
requesting party has a good faith reason for such request.

 

21.13                 Granting of Easements

 

If no Lease Event of Default
has occurred and is continuing, the Lessor will join with the Lessee from time
to time at the request of the Lessee (at the Lessee’s sole cost and expense) to
(a) subject to the terms of Sections 14.3 and 14.6, sell, assign, convey or
otherwise transfer an interest in the Properties to any Person legally
empowered to take such interest under the power of eminent domain, (b) grant
easements, licenses, rights of way and other rights and privileges in the
nature of easements, (c) release existing easements and appurtenances affecting
the Properties, (d) subject to the terms of Sections 14.3 and 14.6, dedicate or
transfer unimproved portions of the Properties for road, highway or other
public purposes, (e) execute petitions to have the Properties annexed to any
municipal corporation or utility district, (f) execute amendments to any
covenants and restrictions affecting the Properties and (g) execute and deliver
any instrument, in form and substance reasonably acceptable to the Lessor,
necessary or appropriate to make or confirm such grants or releases to any
Person, with or without consideration, but in all cases only if (1) the Lessor
and the Indenture Trustee shall have received, together with the request from
the Lessee to make such grant or release, (x) an Officer’s Certificate of the
Lessee stating that such grant or release does not interfere with the continued
use of the Properties pursuant to this Lease and does not reduce the Fair
Market Sales Value of the Properties except to a de minimis extent, and (y) an
Officer’s Certificate of the Lessee stating the consideration, if any, and that
such consideration being paid for said sale, grant, easement, license, release,
right of way, petition, amendment or other such instruments described in this
paragraph, is in the opinion of the Lessee fair and adequate (such
consideration, to the extent in the form of cash and/or tangible property, to
be shared by the Lessor and the Lessee in proportion to their respective
interests in the affected Properties) and (z) a duly authorized and binding
undertaking of the Lessee, in form and 

 

47

 

substance reasonably
satisfactory to the Lessor, to remain obligated under this Lease as though such
easement, license, right-of-way or other right or privilege has not been
granted or released, and to perform all obligations of the Lessor, grantor or
party effecting the release or granting such easement or other interest under
such instrument of grant or release during the Lease Term and (2) the
statements in the certificates described in the preceding clauses (x) and (y) are
accurate.  Notwithstanding the foregoing,
the Lessor shall not be required to grant to any Person an easement allowing
access to and/or through any portion of the Properties the term of which
exceeds the Lease Term; provided that this sentence shall not be
construed to limit the rights of the Lessee to remove Severable Improvements
and Alterations within a reasonable time beyond the Lease Term as provided in Article
12.

 

21.14                 No Joint Venture

 

Any intention to create a
joint venture or partnership relation between the Lessor and the Lessee, is
hereby expressly disclaimed.

 

21.15                 No Accord and Satisfaction

 

The acceptance by the Lessor
of any sums from the Lessee (whether as Basic Rent or otherwise) in amounts
which are less than the amounts due and payable by the Lessee hereunder is not
intended, nor shall be construed, to constitute an accord and satisfaction of
any dispute between the Lessor and the Lessee regarding sums due and payable by
the Lessee hereunder, unless the Lessor specifically deems it as such in
writing.

 

21.16                 No Merger

 

In no event shall the
leasehold interest, estate or right of the Lessee hereunder, or of the Holder
of any Notes secured by a security interest in this Lease, merge with any
interests, estates or rights of the Lessor in or to the Properties, it being
understood that such lease hold interest, estate and right of the Lessee
hereunder, and of the Holder of any Notes secured by a security interest in
this Lease, shall each be deemed to be separate and distinct from the Lessor’s
interests, estates and rights in or to the Properties, notwithstanding that any
such interests, estates or rights shall at any time or times be held by or
vested in the same Person; provided, however, that if all of such interests,
estates or rights at any time shall be held by or vested in one Person, such
Person may at its option effect a merger of such interests by written instrument
clearly and specifically evidencing such intention.

 

21.17                 Investment of Funds

 

Any moneys held by the
Lessor or the Indenture Trustee as security hereunder (to the extent not
applied against the Lessee’s obligations under the Operative Documents to which
the Lessee is a party) at a time when a Lease Event of Default or Special
Default exists shall, until paid to the Lessee or so applied, be invested by
the Lessor in Permitted Investments, at the Lessee’s risk and expense.  All such amounts, including any gain
(including interest received) realized as a result of any such investment (net
of any fees, Taxes, commissions and other expenses, if any, incurred in
connection with such investment) shall be reinvested, applied or paid over to
the Lessee, at its direction, upon the Lessee’s cure of its Lease Event of
Default or Special Default.

 

48

 

21.18                 True Lease

 

This Lease is intended as,
and shall constitute, an agreement of lease, and nothing herein shall be construed
as conveying to the Lessee any right, title or interest in or to the
Properties, except as a lessee.

 

21.19                 Radon Disclosure

 

Lessee is hereby advised
that radon is a naturally occurring radioactive gas that, when it has
accumulated in a building in sufficient quantities, may present health risks to
persons who are exposed to it over time. 
Levels of radon that exceed federal and state guidelines have been found
in buildings in Florida.  Additional
information regarding radon and radon testing may be obtained from your county
public health unit.  The foregoing
disclosure is provided to comply with Florida law, is for informational
purposes only and does not create any contingency or any representation,
warranty or obligation of Lessor.

 

49

 

IN WITNESS
WHEREOF, the
undersigned have each caused this Lease Agreement to be duly executed and
delivered and their corporate seals to be hereunto affixed and attested by
their respective officers thereunto duly authorized as of the day and year
first above written.

 

	
  SIGNED, SEALED AND

  	
   

  	
   

  
	
  DELIVERED IN THE PRESENCE
  OF:

  	
   

  	
   

  
	
   

  	
   

  	
  U.S. BANK NATIONAL
  ASSOCIATION, not in its individual capacity, but solely as successor Owner
  Trustee to State Street Bank and Trust Company of Connecticut, National
  Association, under the Amended and Restated Trust Agreement
  (1997-D) dated as of May 23, 2003,
  as Lessor in states other than the Co-Trustee States and with the Co-Trustee,
  as applicable in the Co-Trustee States, as Lessor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PATRICK E. THEBADO, not in
  his individual capacity, but solely as successor Co-Trustee to Dori Anne
  Seakas, as successor Co-Trustee to Traci Hopkins, under the Amended and Restated Trust
  Agreement (1997-D) dated as of May 23, 2003, with the Owner Trustee as
  applicable in the Co-Trustee States, as Lessor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  	
  as Lessee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
  Name: Michael F. Hord

  
	
   

  	
   

  	
  Title: Associate General
  Counsel

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  

 

50

 

*              Receipt of this original Counterpart No. 1 of the
foregoing Lease Agreement is hereby acknowledged on
         day of May, 2003.

 

 

	
   

  	
   

  	
  WELLS FARGO BANK
  NORTHWEST, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
  as Indenture Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  

 

 

*              This language contained in original Counterpart No. 1
only

 

51Exhibit 10.69

 

LEASE AGREEMENT

 

Between

 

BANK OF AMERICA,
N.A.

 

as Tenant

 

and

 

FIRST STATES
INVESTORS 4100A, LLC

 

as Landlord

 

Dated as of September 24,
2003

 

Leased
Property:  74 Group “A” Properties
Located in North Carolina

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  1.

  	
  DEFINITIONS:

  	
  1

  
	
   

  	
   

  	
   

  
	
  2.

  	
  DEMISE; TITLE;
  CONDITION:

  	
  7

  
	
   

  	
   

  	
   

  
	
  3.

  	
  TERM; RENEWAL OPTION:

  	
  8

  
	
   

  	
   

  	
   

  
	
  4.

  	
  RENT:

  	
  9

  
	
   

  	
   

  	
   

  
	
  5.

  	
  USE:

  	
  12

  
	
   

  	
   

  	
   

  
	
  6.

  	
  NET LEASE;
  NONTERMINABILITY:

  	
  12

  
	
   

  	
   

  	
   

  
	
  7.

  	
  TAXES AND OTHER
  CHARGES; LAW AND AGREEMENTS:

  	
  14

  
	
   

  	
   

  	
   

  
	
  8.

  	
  LIENS:

  	
  15

  
	
   

  	
   

  	
   

  
	
  9.

  	
  INDEMNIFICATION; FEES
  AND EXPENSES:

  	
  16

  
	
   

  	
   

  	
   

  
	
  10.

  	
  ENVIRONMENTAL MATTERS:

  	
  16

  
	
   

  	
   

  	
   

  
	
  11.

  	
  MAINTENANCE AND REPAIR:

  	
  20

  
	
   

  	
   

  	
   

  
	
  12.

  	
  ALTERATIONS AND
  ADDITIONS:

  	
  20

  
	
   

  	
   

  	
   

  
	
  13.

  	
  CONDEMNATION AND
  CASUALTY:

  	
  23

  
	
   

  	
   

  	
   

  
	
  14.

  	
  INSURANCE:

  	
  27

  
	
   

  	
   

  	
   

  
	
  15.

  	
  FlNANCIAL STATEMENTS:

  	
  30

  
	
   

  	
   

  	
   

  
	
  16.

  	
  RIGHT OF FIRST REFUSAL:

  	
  31

  
	
   

  	
   

  	
   

  
	
  17.

  	
  PURCHASE PROCEDURE:

  	
  32

  
	
   

  	
   

  	
   

  
	
  18.

  	
  INTENTIONALLY OMITTED.

  	
  32

  
	
   

  	
   

  	
   

  
	
  19.

  	
  QUIET ENJOYMENT:

  	
  32

  
	
   

  	
   

  	
   

  
	
  20.

  	
  TERMINATION:

  	
  33

  
	
   

  	
   

  	
   

  
	
  21.

  	
  SUBLETTING; ASSIGNMENT:

  	
  33

  
	
   

  	
   

  	
   

  
	
  22.

  	
  ADVANCES BY LANDLORD:

  	
  34

  
	
   

  	
   

  	
   

  
	
  23.

  	
  CONDITIONAL LIMITATIONS
  - EVENTS OF DEFAULT AND REMEDIES:

  	
  34

  

 

i

 

	
  24.

  	
  NOTICES:

  	
  38

  
	
   

  	
   

  	
   

  
	
  25.

  	
  ESTOPPEL CERTIFICATES:

  	
  40

  
	
   

  	
   

  	
   

  
	
  26.

  	
  NO MERGER:

  	
  40

  
	
   

  	
   

  	
   

  
	
  27.

  	
  SURRENDER:

  	
  40

  
	
   

  	
   

  	
   

  
	
  28.

  	
  SEPARABILITY:

  	
  41

  
	
   

  	
   

  	
   

  
	
  29.

  	
  BINDING EFFECT; MERGER,
  CONSOLIDATION AND DISPOSAL OF ASSETS:

  	
  41

  
	
   

  	
   

  	
   

  
	
  30.

  	
  SHOWING:

  	
  41

  
	
   

  	
   

  	
   

  
	
  31.

  	
  NATURE OF LANDLORD’S
  OBLIGATIONS:

  	
  42

  
	
   

  	
   

  	
   

  
	
  32.

  	
  SUBORDINATION:

  	
  42

  
	
   

  	
   

  	
   

  
	
  33.

  	
  ARBITRATION:

  	
  42

  
	
   

  	
   

  	
   

  
	
  34.

  	
  GRANTING OF EASEMENTS,
  ETC.:

  	
  46

  
	
   

  	
   

  	
   

  
	
  35.

  	
  WAIVER OF TRIAL BY JURY

  	
  47

  
	
   

  	
   

  	
   

  
	
  36.

  	
  RECORDING OF LEASE

  	
  47

  
	
   

  	
   

  	
   

  
	
  37.

  	
  MISCELLANEOUS:

  	
  48

  
	
   

  	
   

  	
   

  
	
  38.

  	
  TERMINATION OF ORIGINAL
  LEASE:

  	
  48

  

 

	
  SCHEDULE A

  	
  DESCRIPTION OF LEASED
  PROPERTY; BASIC RENT SCHEDULE

  
	
  SCHEDULE B

  	
  INTENTIONALLY OMITTED

  
	
  SCHEDULE C

  	
  TERMINATION VALUES

  
	
  SCHEDULE D

  	
  FORM OF ESTOPPEL
  CERTIFICATE

  
	
  SCHEDULE E

  	
  PERMITTED ENCUMBRANCES

  
	
  SCHEDULE F

  	
  FORM OF SUBORDINATION,
  NON-DISTURBANCE AND ATTORNMENT AGREEMENT

  

 

ii

 

LEASE
AGREEMENT

 

THIS LEASE AGREEMENT
(this “Lease”) is dated as of September     ,
2003, between FIRST STATES INVESTORS 4100A, LLC (“Landlord”), a Delaware
limited liability company, having an office c/o First States Group, L.P., 1725
The Fairway, Jenkintown, Pennsylvania 19046, and BANK OF AMERICA, N.A. (“Tenant”),
a national banking association organized under the laws of the United States,
having an office at 100 North Tryon Street, 52nd Floor, Charlotte, North Carolina 28255.

 

BACKGROUND
OF AGREEMENT

 

WHEREAS,
NCNB National Bank of North Carolina (the predecessor in interest to Tenant)
and PREFCO III Limited Partnership (the predecessor in interest to PREFCO III
Realty LLC) (“Prefco”) were parties to a certain Lease dated as of December 1,
1988 (as heretofore amended or modified, the “Original Lease”); and

 

WHEREAS,
First States Group, L.P. has acquired the interest of Prefco, as landlord, in
and to the Original Lease, and, with respect to the Leased Property hereinafter
described in Article 2, has assigned such interest to Landlord; and

 

WHEREAS,
Landlord has also acquired from Liberty North Carolina Inc. (the “Remainderman”)
the interest of the Remainderman in the Leased Property, so that Landlord owns
the entire fee interest in the land and improvements that constitute the Leased
Property; and

 

WHEREAS,
Landlord and Tenant desire to terminate the Original Lease as it pertains to
the Leased Property and enter into this Lease for the purpose of setting forth
their agreement respecting the Leased Property, all as more fully hereinafter
set forth.

 

NOW,
THEREFORE, in consideration of the mutual covenants and
agreements herein contained and intending to be legally bound, Landlord and
Tenant covenant and agree as follows:

 

1.             DEFINITIONS:

 

As used in this Lease the
following terms have the meanings set forth below.  Defined terms used in the Background of
Agreement above, but not defined below, shall have the meanings set forth in
the Original Lease:

 

“AAA” shall have
the meaning given to that term in Paragraph (d) of Article 33 hereof.

 

“Additional
Improvements” shall have the meaning given to that term in Paragraph (a) of
Article 12 hereof.

 

“Additional Rent”
shall have the meaning given to that term in Paragraph (c) of Article 4
hereof.

 

 

“Affiliate” or “Affiliates”
means any person or entity controlling, controlled by, or under common control
with another such person or entity.  “Control”
as used herein shall mean the possession, direct or indirect, or the power to
direct or cause the direction, of the management and policies of such
controlled person or entity.  The
ownership, directly or indirectly, of more than fifty percent (50%) of the
voting securities of, or possession of the right to vote in, the ordinary
direction of its affairs, more than fifty percent (50%) of the voting interest
in, any person or entity shall be presumed to constitute such control.  In the case of Landlord (if Landlord is a
partnership), the term Affiliate shall also include any person or entity
controlling or controlled by or under common control with any general partner
of Landlord or any general partner of Landlord’s general partner.

 

“Aggregate FMRV Rent”
shall have the meaning given to that term in Paragraph (e)(i) of Article 4
hereof.

 

“Alteration Threshold”
shall have the meaning given to that term in Paragraph (a) of Article 12
hereof.

 

“Applicable Rate”
shall mean an annual rate of interest equal to the lesser of (i) the Prime
Rate plus two percent (2%) and (ii) the maximum contract interest rate per
annum allowed by North Carolina law.

 

“Appraiser” shall
mean an independent professional real estate appraiser, MAI or equivalent, with
at least ten (10) years’ experience appraising commercial real estate
comparable to the Leased Property, who shall be associated with a
nationally-recognized real estate services firm offering appraisal services,
with local offices in the region where the Leased Property is located, and
which firm is not under contract with or otherwise so associated with either
Landlord or Tenant as to reasonably impair its or their ability to render
impartial judgments (it being agreed that an Appraiser that performs residential
or commercial property appraisals for Tenant in Tenant’s capacity as a mortgage
lender shall not be disqualified from serving as an Appraiser solely as a
result of such other relationship with Tenant).

 

“Approval Matter”
shall have the meaning given to that term in Paragraph (b)(ii) of Article 33
hereof.

 

“Arbitration Notice”
shall have the meaning given to that term in Paragraph (b)(i) of Article 33
hereof.

 

“Bankruptcy Act”
shall mean Title 11 of the United States Code and any other Federal
insolvency or similar law, now or hereafter in effect.

 

“Base Price Index”
shall mean the CPI for September 2003.

 

“Basic Rent” shall
have the meaning given to that term in Paragraph (a) of Article 4
hereof.

 

“Binding ADR Dispute”
shall have the meaning given to that term in Paragraph (b)(ii) of Article 33
hereof.

 

2

 

“Business Day”
shall mean any day except Saturdays, Sundays, the days observed by the Federal,
Commonwealth of Pennsylvania or State of North Carolina governments as public
holidays, and days which Tenant observes as regularly scheduled bank holidays.

 

“Casualty” shall
have the meaning given to that term in Paragraph (a) of Article 13
hereof.

 

“CPI” shall mean
the Consumer Price Index published by the Bureau of Labor Statistics of the
United States Department of Labor for “All Urban Consumers” in the table
entitled “Consumer Price Index: United States City Average,” or any successor
index thereto, all Items (1982-84=100) for the calendar year in question.  In the event that the CPI is converted to a
different standard reference base or otherwise revised, the determination of
amounts hereunder to be determined by reference to the CPI shall be made with
the use of such conversion factor, formula or table for converting the CPI as
may be published by the Bureau of Labor Statistics or, if not so published,
then with the use of such conversion factor, formula or table as may be
published by Prentice-Hall, Inc. or any other nationally recognized
publisher of similar statistical information, or if a conversion factor,
formula or table is unavailable, Landlord and Tenant shall agree on another
method to adjust the CPI, or any successor thereto, to the figure that would
have been arrived at had the manner of computing the CPI in effect on the date
of this Lease not been altered. If Landlord and Tenant fail to agree upon a
conversion factor, formula, table or other method, the matter will be submitted
for resolution by a nationally recognized firm of certified public accountants
selected by Landlord and approved by Tenant, which approval shall not be
unreasonably withheld, at Tenant’s expense.

 

“Commencement Date”
shall mean September     , 2003, or such later date as
Landlord shall acquire title to the Leased Property from Prefco.

 

“Condemnation”
shall have the meaning given to that term in Paragraph (a) of Article 13
hereof.

 

“Contaminated Property”
shall have the meaning given to that term in Paragraph (e) of Article 10
hereof.

 

“Depository” shall
have the meaning given to that term in Paragraph (d) of Article 13
hereof.

 

“Environmental Laws”
shall mean and include the Resource Conservation and Recovery Act, as amended
by the Hazardous and Solid Waste Amendments of 1984, the Comprehensive
Environmental Response, Compensation and Liability Act, as amended by the
Superfund Amendments and Reauthorization Act of 1986, the Hazardous Materials
Transportation Act, the Toxic Substances Control Act, Clean Air Act, the
Federal Insecticide, Fungicide and Rodenticide Act and all applicable federal,
state and local environmental laws, ordinances, rules, regulations and
publications, as any of the foregoing may have been or may be from time to time
amended, supplemented or supplanted, and any other federal, state or local
laws, ordinances, rules, regulations and publications, now or hereafter
existing relating to regulation or control of toxic or hazardous substances or
materials.

 

3

 

“Equipment” shall
have the meaning given to that term in Article 2 hereof, but shall not
include any Tenant’s Equipment.

 

“Event of Default”
shall have the meaning given that term in Paragraph (a) of Article 23
hereof.

 

“Fair Market Purchase
Value” shall mean the fair market purchase sale value, as of the date the
determination is made, that would be obtained in an arm’s-length purchase and
sale agreement between an informed and willing seller and an informed and
willing buyer, neither of whom is under any compulsion to enter into such
transaction.

 

“Fair Market Rental
Value” shall mean the fair market rental value, as of the date the
determination is made, that would be obtained in an arm’s-length bond net lease
between an informed and willing tenant (other than a tenant in possession) and
an informed and willing landlord, neither of whom is under any compulsion to
enter into such transaction, for properties comparable in size, location and
quality to the Leased Property, for an equivalent term.  Such Fair Market Rental Value shall be
calculated assuming that (i) the Leased Property is in the condition and
state of repair required under the Lease, (ii) Tenant is in compliance
with the requirements of the Lease and (iii) Tenant will accept the Leased
Property in “AS-IS” condition.

 

“FDIC” shall have
the meaning given to that term in Paragraph (a) of Article 15 hereof.

 

“Force Majeure Events”
means events beyond Landlord’s or Tenant’s (as the case may be) control, which
shall include, without limitation, all labor disputes, governmental regulations
or controls, war, fire or other casualty, inability to obtain any material or
services, acts of God, or any other cause not within the reasonable control of
Landlord or Tenant (as the case may be).

 

“Governmental
Authority” means the United States, the state, county, city and political
subdivision in which a Leased Property is located or that exercises
jurisdiction over a Leased Property, Landlord or Tenant, and any agency,
department, commission, board, bureau or instrumentality of any of the
foregoing that exercises jurisdiction over a Leased Property, Landlord or
Tenant.

 

“Hazardous Substance”
shall mean and include any, each and all substances or materials regulated
pursuant to any Environmental Laws, including, but not limited to, any such
substance, emission or material now or hereafter defined as or deemed to be a
regulated substance, hazardous substance, toxic substance, pesticide, hazardous
waste or any similar or like classification or categorization, thereunder.

 

“Improvements”
shall have the meaning given to that term in Article 2 hereof.

 

“Indemnitee” shall
have the meaning given to that term in Paragraph (g) of Article 10
hereof.

 

“Initial Term”
shall have the meaning given to that term in Paragraph (a) of Article 3
hereof.

 

4

 

“JAMS” shall mean
Judicial Arbitration & Mediation Services, Inc.

 

“Land” shall have
the meaning given to that term in Article 2 hereof.

 

“Landlord’s mortgagee”
shall mean any institutional lender that holds a mortgage or deed of trust
given by Landlord which encumbers Landlord’s interest in the Leased Property.

 

“Leased Property”
shall have the meaning given to that term in Article 2 hereof.  Each time there is an addition to,
substitution, subtraction from or other change in the configuration of the
Leased Property as herein provided, including, without limitation, pursuant to Article 13(c) (Casualty
or Condemnation) and Article 16 (Purchase and Sale), Landlord and Tenant
shall execute an amendment to Schedule A
of this Lease.

 

“Legal Requirements”
means any law, statute, ordinance, order, rule, regulation or requirement of a
Governmental Authority.

 

“Litigating Party”
shall have the meaning given to that term in Paragraph (f) of Section 23
hereof.

 

“Major Dispute”
shall have the meaning given to that term in Paragraph (b)(iii) of Article 33
hereof.

 

“Maximum Renewal Term
Basic Rent” shall have the meaning given to that term in Paragraph (e)(i) of
Article 4 hereof.

 

“Net Award” shall
mean the entire award, compensation, insurance proceeds or other payment, if
any, on account of any Condemnation or Casualty, less any expenses (including,
but not limited to, reasonable attorneys’ fees and expenses) incurred by
Landlord in collecting such award, compensation, insurance proceeds or other
payment and not paid (or reimbursed to Landlord) by Tenant pursuant to Article 13
hereof.

 

“OCC” shall have
the meaning given to that term in Paragraph (a) of Article 15 hereof.

 

“OTS” shall have
the meaning given to that term in Paragraph (a) of Article 15 hereof.

 

“Permitted
Encumbrances” shall mean, with respect to the Leased Property: (a) rights
reserved to or vested in any public authority by the terms of any right, power,
franchise, grant, license, permit or provision of law affecting the Leased
Property, to (i) terminate such right, power, franchise, license or
permit, provided that the exercise of such right would not materially impair
the use of the Leased Property or materially and adversely affect the value
thereof, or (ii) purchase, condemn, appropriate or recapture, or designate
a purchaser of, the Leased Property or any portion thereof; (b) any liens
thereon for taxes, assessments, fees and other governmental and similar charges
referred to in Article 7 of this Lease, and any liens of mechanics,
materialmen and laborers for work or services performed or material furnished
in connection with the Leased Property, which are not due and payable, or which
are not delinquent to the extent that penalties for nonpayment may be assessed,
or the 

 

5

 

amount or validity of
which are being contested as permitted by Paragraph (d) of Article 7
hereof; (c) easements, rights-of-way, servitudes, restrictions and other
minor defects, encumbrances and irregularities in the title to the Leased
Property which do not materially impair the use of the Leased Property or
materially and adversely affect the value thereof; (d) rights reserved to
or vested in any public authority to control or regulate or use the Leased
Property, which rights do not materially impair the.  use of the Leased Property or materially and
adversely affect the value thereof; (e) any mortgage affecting Landlord’s
interest in the Leased Property and any assignment of this Lease as further
security for the note or notes secured thereby; and (f) the matters
affecting title set forth in Schedule E
hereto.

 

“Prime Rate” shall
mean the “prime rate” announced by Bank of America, N.A., or its successor,
from time to time (or if the Prime Rate is discontinued, the rate announced as
that being charged to said bank’s most credit-worthy commercial borrowers).

 

“Renewal Option(s)”
shall have the meaning given to that term in Paragraph (b) of Article 3
hereof.

 

“Renewal Option Notice
Date” shall mean, with respect to a Renewal Option, the date on which
Tenant sends written notice of exercise of such Renewal Option to Landlord as
provided in Paragraph (c) of Article 4 hereof.

 

“Renewal Property”
shall have the meaning given to that term in Paragraph (b) of Article 3
hereof.

 

“Renewal Term(s)”
shall have the meaning given to that term in Paragraph (b) of Article 3
hereof.

 

“Rent” means
annual Basic Rent and Additional Rent.

 

“Rent Payment Date”
shall have the meaning given to that term in Paragraph (a) of Article 4
hereof.

 

“Requesting Party”
shall have the meaning given to that term in Paragraph (a)(i) of Article 33
hereof.

 

“Responding Party”
shall have the meaning given to that term in Paragraph (a)(i) of Article 33
hereof.

 

“SEC” shall mean
the Securities and Exchange Commission.

 

“Tenant’s Equipment”
shall mean computer systems, automated teller machines, bank security systems
including closed circuit television systems, safe deposit boxes, modular
vaults, teller equipment, counters (excluding undercounter steel and
equipment), shelving, signs, surrounds, modular furniture, furniture, drive-up
motor bank equipment, satellite communications equipment including antennas,
trade fixtures, machinery, equipment and other property of Tenant now or
hereafter used or useful in connection with Tenant’s business.

 

6

 

“Tenant’s Minimum
Credit Rating” shall have the meaning given to that term in Paragraph (e)(i) of
Article 10 hereof.

 

“Tenant’s Loss”
shall have the meaning given to that term in Paragraph (a) of Article 13
hereof.

 

“Term” shall mean
the Initial Term, plus any Renewal Term which may be effected pursuant to Article 3
hereof.

 

“Termination Date”
shall have the meaning given to that term in Paragraph (c) of Article 13
hereof.

 

“Termination Value”
shall have the meaning given to that term in Paragraph (c) of Article 13
hereof.

 

“Third Party Offer”
shall have the meaning given to that term in Article 16 hereof.

 

2.             DEMISE; TITLE; CONDITION:

 

In consideration of the
agreements and provisions of this Lease hereinafter stipulated to be observed
and performed by Tenant, Landlord hereby demises and lets to Tenant, and Tenant
hereby leases from Landlord, subject to the terms and conditions hereinafter
set forth, for the term described in Article 3 hereof, those certain
parcels of land (the “Land”) described in Schedule A annexed hereto, together with all
buildings, structures and improvements (the “Improvements”) thereon, and
all easements and appurtenances thereto, and all other facilities, fixtures, machinery,
apparatus, installations, equipment and other property used in connection with
the maintenance and operation of the Improvements, including, but not limited
to, all heating, ventilating, air conditioning, plumbing, and electrical
equipment, lighting and lighting equipment, elevators and escalators, non-bank
security systems, vault doors, teller counters, cages and undercounter steel,
drive-up motor bank facilities, night depository boxes, security system wiring,
utility lines, refuse facilities, waste removal systems, generators,
transformers, cooling towers, maintenance depots, power plants, storage tanks,
fire pumps, fire control, sprinkler and stand pipe systems, emergency power and
automatic transfer switches, air conditioning units, building and site
controls, sewerage facilities, automated mail distribution systems and all
associated piping, wiring, conduits, feeders, tracks, plumbing, drainage
facilities and all other property owned by Landlord and now or hereafter
located on the Land and used or procured for use in connection with the
Improvements (collectively the “Equipment”; the Land, the Improvements
and the Equipment being hereinafter referred to individually or collectively
from time to time as the context requires as the “Leased Property”).  The Leased Property shall exclude Tenant’s
Equipment, which is, and shall remain, the property of Tenant.

 

The Leased Property is
demised and let in its present condition without representation or warranty by
Landlord, subject to (a) the rights of any parties in possession thereof, (b) the
Permitted Encumbrances, (c) any state of facts which an accurate survey or
physical inspection might show, (d) all applicable laws, rules,
regulations, ordinances and restrictions now in effect, and (e) any violations
of such laws, rules, regulations, ordinances and restrictions which may 

 

7

 

exist at the commencement
of the Term of this Lease.  Tenant has
examined the Leased Property and has found the same to be satisfactory.

 

Tenant acknowledges that
Tenant is fully familiar with the physical condition of the Leased Property and
that Landlord makes no representation or warranty, express or implied, with
respect to same or the location, use, description, design, merchantability,
fitness for use for a particular purpose, condition or durability thereof, or
as to quality of the material or workmanship therein, or otherwise; and all
risks incidental to the Leased Property shall be borne by Tenant to the extent
of matters which arise during the Term of this Lease.  Landlord leases and Tenant accepts the Leased
Property as is with all faults and in the event of any defect or deficiency of
any nature in the Leased Property or any fixture or other item constituting a
portion thereof, whether patent or latent, neither Landlord nor Landlord’s
mortgagee shall have any responsibility or liability with respect thereto.  THE PROVISIONS OF THIS PARAGRAPH HAVE BEEN
NEGOTIATED AND ARE INTENDED TO BE A COMPLETE EXCLUSION AND NEGATION BY LANDLORD
OF, AND LANDLORD DOES HEREBY DISCLAIM ANY AND ALL WARRANTIES BY LANDLORD,
EXPRESS OR IMPLIED, WITH RESPECT TO THE LEASED PROPERTY OR ANY FIXTURE OR OTHER
ITEM CONSTITUTING A PORTION THEREOF, WHETHER ARISING PURSUANT TO THE UNIFORM COMMERCIAL
CODE OR ANY OTHER LAW NOW OR HEREAFTER IN EFFECT OR OTHERWISE.

 

3.             TERM; RENEWAL OPTION:

 

(a)           Subject to the provisions hereof,
Tenant shall have and hold the Leased Property for an initial term (“Initial
Term”) which shall begin on the Commencement Date and shall end on the last
day of the month in which the twentieth (20th) anniversary of the Commencement
Date occurs.  Except as otherwise
expressly noted, the Term of this Lease shall also include any Renewal Term(s) properly
exercised by Tenant as hereinafter provided.

 

(b)           Provided that no Event of Default
shall have occurred and be continuing and subject to the conditions hereinafter
set forth, Tenant is hereby granted options (individually, a “Renewal Option”
and, collectively, the “Renewal Options”) to renew the Term of this
Lease for one or more Leased Properties which remain subject to this Lease at
the time of notice and at the time of renewal (each Leased Property for which a
Renewal Option is exercised by Tenant, a “Renewal Property”; and if more
than one, the “Renewal Properties”) for up to thirty (30) years in
consecutive periods of not less than five (5) years (nor more than ten (10) years)
each, as determined by Tenant in its sole discretion (individually, a “Renewal
Term” and collectively the “Renewal Terms”); provided that the Term
of this Lease shall not extend for more than fifty (50) years, beginning on the
Commencement Date of this Lease.  Tenant
shall not have the right to exercise its option to renew this Lease for any one
or more Renewal Properties for more than one (1) Renewal Term at a
time.  All of the terms, conditions,
covenants and agreements contained herein shall continue with equal force and
effect with respect to any Renewal Terms created by the proper exercise by
Tenant of its option to renew as contained herein; provided that the Basic Rent
for each Renewal Property shall be determined as provided in Paragraph (e) of
Article 4 below.

 

8

 

(c)           The first
Renewal Term shall commence at the expiration of the Initial Term, and each
subsequent Renewal Term shall commence at the expiration of the prior Renewal
Term.  Tenant shall exercise its options
to renew, if at all, by delivering notice of such election to Landlord not
later than twelve (12) months prior to the expiration of the Initial Term or
the expiration of the then current Renewal Term, as the case may be.  IN ORDER TO PREVENT TENANT’S INADVERTENT
FORFEITURE OF ANY THEN REMAINING RENEWAL OPTION, IF TENANT SHALL FAIL TO TIMELY
EXERCISE ANY AVAILABLE RENEWAL OPTION, TENANT’S RIGHT TO EXERCISE SUCH RENEWAL
OPTION SHALL NOT LAPSE UNTIL LANDLORD SHALL DELIVER TO TENANT WRITTEN NOTICE
THAT SUCH NOTICE OF EXERCISE HAS NOT BEEN DELIVERED AND TENANT SHALL THEREAFTER
FAIL TO EXERCISE SUCH RENEWAL OPTION WITHIN TEN (10) DAYS FOLLOWING THE
DELIVERY OF SUCH NOTICE.

 

4.             RENT:

 

(a)           Basic Rent.  Beginning on the Commencement
Date and continuing throughout the Term of this Lease, Tenant shall pay to
Landlord the annual basic rent provided for in Schedule
A annexed hereto (“Basic Rent”), in advance, on October 1
of each year (the “Rent Payment Date”). 
Tenant shall pay to Landlord all Basic Rent and (to the extent payable
to Landlord) and Additional Rent by wire transfer of federal funds or collected
funds immediately available to Landlord on the dates when rent is due, at
Landlord’s address set forth above, or at such other place in the continental
United States as Landlord may from time to time designate.  In the event that a Leased Property ceases to
be subject to this Lease and, as a result thereof, Tenant’s obligation to pay
Basic Rent with respect thereto terminates as herein provided, effective as of
the date the of such termination, the Basic Rent payable by Tenant hereunder
shall be reduced by the percentage allocated to the removed Leased Property on Schedule A annexed hereto.  Whenever during the Term a Leased Property is
added to or removed from this Lease as herein provided, Landlord and Tenant shall
amend Schedule A to reflect such addition
or removal and to reallocate the Basic Rent among the Leased Properties then
subject to this Lease.

 

(b)           Holidays.  If any Rent Payment Date
falls on a day which is not a Business Day, Basic Rent shall be due and payable
on the next succeeding Business Day without interest or penalty if paid on such
Business Day.

 

(c)           Additional Rent.  All amounts which Tenant
is required to pay or discharge pursuant to this Lease in addition to Basic
Rent (including any amount payable as the purchase price for the Leased
Property pursuant to any provision hereof or as liquidated damages pursuant to
paragraph (c) of Article 23) together with any interest or penalty
which may be added for late payment thereof, shall constitute additional rent
hereunder (“Additional Rent”). In the event of any failure by Tenant to
pay or discharge any such amount, Landlord shall have all rights, powers and
remedies provided for herein or by law or otherwise in the case of nonpayment
of Basic Rent. Tenant may pay Additional Rent directly to the person entitled
thereto.

 

(d)           Late Charge.  Tenant recognizes that
late payment of any Rent will result in administrative and other expense to
Landlord.  Therefore, other remedies for
nonpayment of Rent notwithstanding, (i) in the event any installment of
Basic Rent is not received by Landlord 

 

9

 

on or before the fifth
(5th) day following the Rent Payment Date, and such amount shall remain unpaid
for more than five (5) days after Tenant’s receipt of written notice that
such amount is past due, then Tenant shall pay to Landlord a late charge equal
to two and one half (21⁄2%) percent of the past due installment of Basic Rent,
and (ii) in the event any payment of Additional Rent is not received by
Landlord within five (5) days after Tenant’s receipt of written notice
that such amount is past due, then Tenant shall pay to Landlord an additional
charge in an amount equal to the lesser of Two Thousand Five Hundred Dollars
($2,500.00) or one percent (1%) of the overdue amount.  Any notice of overdue payment for which
Tenant shall be subject to a late charge shall state, in all capital letters
(or other prominent display), that Tenant’s failure to remit payment by the
appointed date shall result in the imposition of a late charge.  Landlord may not send any such notice of
overdue payment to Tenant prior to the fifth (5th) day following the date such
payment is due, and if any such premature notice is sent, it shall be deemed to
have been sent on the fifth (5th) day following the date such payment was
due.  Notwithstanding the foregoing,
Tenant shall not be obligated to pay a late charge on installments of Rent to
the extent that Tenant’s payment is deficient by an amount that is less than or
equal to one percent (1%) of the total amount due; provided that Tenant shall
remit the amount of the deficiency promptly upon and, in any extent, within
five (5) Business Days following Tenant’s receipt of written notice from
Landlord that the same is past due.  All
additional charges described herein are not intended as a penalty, but are
intended to liquidate the damages so occasioned to Landlord and to reimburse
Landlord for Landlord’s additional costs in processing such late payment, which
amounts shall be added to the Rent then due.

 

(e)           Rent During Renewal Term.

 

(i)             The
annual Basic Rent to be paid by Tenant for each Renewal Property during a
Renewal Term shall equal the Fair Market Rental Value of such Renewal Property
during such Renewal Term as determined by the parties or, in the absence of
their agreement, determined by appraisal as expressed below; provided that (i) during
the first Renewal Term immediately following the expiration of the Initial
Term, the annual Basic Rent payable for all Renewal Properties, computed on an
aggregate basis, shall not exceed one hundred ten percent (110%) of the annual
Basic Rent payable by Tenant for all Renewal Properties immediately prior to
the commencement of such first Renewal Term, computed on an aggregate basis,
and (ii) during the second and all subsequent Renewal Terms, the annual
Basic Rent payable for all Renewal Properties shall not exceed one hundred five
percent (105%) of the annual Basic Rent payable by Tenant for all Renewal Properties
immediately prior to the commencement of such Renewal Term, computed on an
aggregate basis (the maximum aggregate annual Basic Rent as so determined, the “Maximum
Renewal Term Basic Rent”).  If the
aggregate Fair Market Rental Values of the Renewal Properties (collectively,
the “Aggregate FMRV Rent”) exceeds the Maximum Renewal Term Basic Rent,
the Fair Market Rental Values of the Renewal Properties shall be
proportionately reduced by multiplying each such Fair Market Rental Values by a
fraction, expressed as a decimal, the numerator of which is the Maximum Renewal
Term Basic Rent and the denominator of which is the Aggregate FMRV Rent, so
that the annual Basic Rent for the Renewal Properties shall, in the aggregate,
equal the Maximum Renewal Term Basic Rent.

 

(ii)            Within thirty (30)
days following the Renewal Option Notice Date, Landlord shall deliver to Tenant
a proposal setting forth Landlord’s determination of the Fair 

 

10

 

Market Rental Value for
the Renewal Properties during the applicable Renewal Term.  For thirty (30) days thereafter, Landlord and
Tenant shall negotiate in good faith to reach agreement as to the Fair Market
Rental Value for the Renewal Properties. 
Tenant’s leasing of the Renewal Properties shall be upon the same terms
and conditions as set forth in this Lease, except (A) the annual Basic
Rent during the Renewal Term shall be determined as specified in Paragraphs (e)(i) and
(e)(iii) of this Article 4 and (B) the leasehold improvements
for the space in question will be provided in their existing condition, on an “AS-IS”
basis at the time the Renewal Term commences. 
Once established, the annual Basic Rent for the applicable Renewal Term
will remain fixed for each Renewal Term, and be paid annually in advance on the
Rent Payment Date.

 

(iii)           If Landlord and Tenant
are unable to reach a definitive agreement as to the Fair Market Rental Value
applicable to the Renewal Properties within sixty (60) days following the
Renewal Option Notice Date, the Fair Market Rental Value will be submitted for
resolution in accordance with the provisions of this Article 4(e)(iii).  Within seventy-five (75) days following the
Renewal Option Notice Date (or, if later, within fifteen (15) days following
the date on which either Landlord or Tenant notifies the other party in writing
that such notifying party desires to have the annual Basic Rent for a Renewal
Term determined by appraisal), Landlord and Tenant shall each select and engage
an Appraiser to determine the Fair Market Rental Value of the Renewal
Properties.  If either party fails to
select and engage an Appraiser within such time, if such failure continues for
more than five (5) Business Days following such party’s receipt of written
notice that states in all capital letters (or other prominent display) that
such party has failed to select an Appraiser as required under the Lease and
will be deemed to have waived certain rights granted to it under the Lease
unless it selects an Appraiser within five (5) Business Days, the Fair
Market Rental Value will be determined by the Appraiser engaged by the other
party.  Each Appraiser shall prepare an
appraisal report and submit it to both Landlord and Tenant within thirty (30)
days following the date on which the last Appraiser was selected.  If the higher of the two appraisals of Fair
Market Rental Value does not exceed one hundred five percent (105%) of the
lower of the two appraisals of Fair Market Rental Value, then the average of
the two (2) appraisals shall be the Fair Market Rental Value for the
Renewal Property.  If the higher of the
two appraisals of Fair Market Rental Value exceeds one hundred five percent
(105%) of the lower of the two appraisals of Fair Market Rental Value, then
within seven (7) days after receipt by Landlord and Tenant of both
appraisal reports, the Appraisers selected by Landlord and Tenant shall agree
on a third Appraiser to determine Fair Market Rental Value.  The third Appraiser shall not perform a third
appraisal, but shall, within ten (10) days after his or her designation,
select one (1) of the two (2) appraisals already performed, whichever
of the two appraisals the third Appraiser determines to be closest to Fair
Market Rental Value, as the controlling determination of the Fair Market Rental
Value.  The decision of the third
Appraiser shall be conclusive, and, subject to the limitations expressed in
Paragraph (e)(i) of this Article 4, shall be the Fair Market Rental
Value for the Renewal Properties for the Renewal Term.  Each party shall pay the costs of its
Appraiser and one-half of the cost of the third Appraiser.  The instructions to the Appraisers with
respect to the determination of the Fair Market Rental Value applicable to such
space will be to determine the Fair Market Rental Value for such space as of
the relevant Renewal Term, assuming that such space will be leased on an “AS-IS”
basis.  Within thirty (30) days following
the determination of the Fair Market Rental Value, Tenant shall elect one (1) of
the following options:  (A) to
revoke the exercise of the subject Renewal Option, in which event, the Term of
this Lease for the Leased Properties to which the notice of 

 

11

 

revocation applies shall
automatically, and without further action of Landlord or Tenant, expire on the
later of (1) the expiration of the then existing Term of this Lease or (2) the
last day of the calendar month that is six (6) months following the month
in which Tenant’s notice of revocation was given to Landlord or (B) to
renew the Lease at the rate to be determined in accordance with this Article 4(e)(iii) after
the Fair Market Rental Value has been determined by appraisal.  If Tenant fails to exercise any of the
foregoing options within the thirty (30) day period, Tenant shall be deemed to
have elected option (A).  If Tenant has
elected option (B), Tenant thereby shall have irrevocably exercised its right
to renew the Term and Tenant may not thereafter withdraw the exercise of the
Renewal Option; in such event the renewal of this Lease (as to the Renewal
Properties) shall be upon the same terms and conditions of this Lease, except (i) the
annual Basic Rent during the Renewal Term shall be determined in accordance
with the foregoing provisions and (ii) the leasehold improvements for the
space in question will be provided in their existing condition, on an “AS-IS”
basis at the time the Renewal Term commences. 
If the annual Basic Rent for a Renewal Term has not been determined
prior to the commencement of such Renewal Term, Tenant shall pay to Landlord as
of the commencement of the Renewal Term the same annual Basic Rent as Tenant
was paying immediately prior to the commencement of the Renewal Term, subject
to adjustment upon final determination. 
Once established, the annual Basic Rent for the Renewal Term will remain
fixed for each Renewal Term, and be paid annually in advance on the Rent
Payment Date.

 

(iv)          Notwithstanding anything
to the contrary contained in this Article 4(e), subject to the provisions
of Paragraph (b) of Article 3 above, Tenant’s failure to give the
required renewal notice with respect to the Leased Properties in conformity
with the requirements of Paragraph (c) of Article 3 above shall
render the upcoming and all subsequent Renewal Options for such Leased
Properties, if there by any, null and void.

 

5.             USE:

 

Tenant
may use each Leased Property as a branch bank or for administrative office
purposes or for other activities permitted under applicable banking laws; or
for any purpose not prohibited by law and by any certificate of occupancy
provided that any such use or uses shall not materially reduce the fair market
value of such Leased Property nor increase by more than a de minimis
amount the risk of contamination by any toxic or hazardous substances or in
violation of Environmental Laws, or result in any increased risk of liability
to Landlord, in Landlord’s reasonable judgment, and provided, further, that any
and all alterations and improvements to each Leased Property shall be subject
to the terms, conditions and limitations contained in Article 12,
below.  It is expressly agreed by
Landlord that Tenant’s ceasing to do business in a Leased Property and vacating
a Leased Property shall not constitute an Event of Default hereunder so long as
such Leased Property continues to be maintained by Tenant as otherwise required
by the terms hereof.

 

6.             NET LEASE; NONTERMINABILITY:

 

(a)            Tenant to Pay All Costs.  This
Lease is a “net lease” and Tenant’s obligations arising or accruing during the
Term of this Lease to pay all Basic Rent, Additional Rent, and all other
payments hereunder required to be made by Tenant shall be absolute and
unconditional, and Tenant shall pay all Basic Rent, Additional Rent and all
other payments 

 

12

 

hereunder
required to be made by Tenant without notice, demand, counterclaim, set-off,
deduction, or defense, and without abatement, suspension, deferment, diminution
or reduction, free from any charges, assessments, impositions, expenses or
deductions of any and every kind or nature whatsoever.  All costs, expenses and obligations of every
kind and nature whatsoever relating to the Leased Property and the
appurtenances thereto and the use and occupancy thereof which may arise or
become due and payable with respect to the Term of this Lease (whether or not
the same shall become payable during such Term or thereafter) shall be paid by
Tenant, and Landlord shall be indemnified, defended and saved harmless by
Tenant from and against the same other than by reason of Landlord’s willful
misconduct or negligence.  Tenant assumes
the sole responsibility for the condition, use, operation, maintenance,
underletting and management of the Leased Property, and Tenant shall indemnify,
defend and hold Landlord harmless from and against any and all liability,
costs, damages, losses and claims (including reasonable attorneys’ fees and
expenses) in respect thereof, except as caused by the negligence or willful
misconduct of Landlord, and Landlord shall have no responsibility in respect
thereof and shall have no liability for damage to the property of Tenant or any
subtenant of Tenant on any account or for any reason whatsoever, except as
caused by the negligence or willful misconduct of Landlord.  Without limiting the generality of the
foregoing, during the Term of this Lease Tenant shall perform all of the
obligations of the sublessor under any sublease affecting all or any part of
the Leased Property which Tenant may hereafter enter into as sublessor.

 

(b)           Nonterminability.  Except
as otherwise expressly provided herein, this Lease shall not terminate, nor
shall Tenant have any right to terminate this Lease or to be released or
discharged from any obligations or liabilities hereunder for any reason, including,
without limitation: (i) any damage to or destruction of any Leased
Property; (ii) any restriction, deprivation or prevention of, or any
interference with, any use or the occupancy of any Leased Property; (iii) any
Condemnation, requisition or other taking or sale of the use, occupancy or
title to any Leased Property; (iv) any action, omission or breach on the
part of Landlord under this Lease or under any other agreement between Landlord
and Tenant; (v) the inadequacy or failure of the description of any Leased
Property to demise and let to Tenant the property intended to be leased hereby;
(vi) Tenant’s acquisition of ownership of any Leased Property, or any sale
or other disposition of a Leased Property; (vii) the impossibility or
illegality of performance by Landlord or Tenant or both; or (viii) any
other cause, whether similar or dissimilar to the foregoing, any present or
future law notwithstanding.

 

(c)            Bankruptcy; Tenant to Remain Liable.  Tenant
will remain obligated under this Lease in accordance with its terms, and will
not take any action to terminate (except in accordance with the express
provisions of Article 13 hereof), rescind or avoid this Lease for any
reason, notwithstanding any bankruptcy, insolvency, reorganization,
liquidation, dissolution or other proceeding affecting Landlord or any assignee
of Landlord, or any action with respect to this Lease which may be taken by any
receiver, trustee or liquidator or by any court.  Tenant waives all rights at any time
conferred by statute or otherwise to quit, terminate or surrender this Lease or
the Leased Property, or to any abatement or deferment of any amount payable by
Tenant hereunder, or for damage, loss or expense suffered by Tenant on account
of any cause referred to in this Article 6 or otherwise, or for damage,
loss or expense suffered by Tenant on account of any cause referred to in this Article 6
or otherwise.

 

13

 

7.             TAXES AND OTHER CHARGES; LAW AND AGREEMENTS:

 

(a)           Taxes, Assessments.  Tenant
shall pay and discharge, not later than the last day upon which the same may be
paid without interest or penalty, all taxes, assessments, levies, fees, water
and sewer rents and other governmental and similar charges, general and
special, ordinary or extraordinary, and any interest and penalties thereon,
which are levied or assessed and become due and payable with respect to the
Term of this Lease, whether or not the same become payable during the Term of
this Lease (including all of the taxes, assessments, levies, fees, water and
sewer rents and other governmental charges for the year in which this Lease is
executed which are now a lien but not yet due and payable) against (i) Landlord
and which relate to Landlord’s ownership of the Leased Property, the use and
occupancy of the Leased Property or the transactions contemplated by this
Lease, (ii) Landlord’s mortgagee and which are imposed in respect of
Landlord’s mortgagee’s interest in the Leased Property, the use and occupancy
of the Leased Property or the transactions contemplated by this Lease, (iii) the
Leased Property or the interest of Tenant or Landlord therein, (iv) Basic
Rent, Additional Rent or any other amount payable by Tenant hereunder, (v) this
Lease or the interest of Tenant or Landlord hereunder, (vi) the use,
occupancy, construction, repair or rebuilding of the Leased Property or any
portion thereof, or (vii) gross receipts from the Leased Property.  If any tax or assessment levied or assessed
against the Leased Property may legally be paid in installments, Tenant shall
have the option to pay such tax or assessment in installments.  Nothing in this Lease shall require payment
by Tenant of any franchise, estate, inheritance, succession, transfer, net
income or profits taxes of Landlord or Landlord’s mortgagee, unless such tax is
in lieu of or a substitute for any other tax or assessment upon or with respect
to the Leased Property, which, if such other tax or assessment were in effect,
would be payable by Tenant hereunder. 
Tenant shall furnish to Landlord, promptly, and in any event within
sixty (60) days after payment thereof, at Landlord’s request, proof of the
payment of any such tax, assessment, levy, fee, rent or charge which is payable
by Tenant, subject to Tenant’s right to contest such charges pursuant to Article 7(d) hereof.  Such taxes, assessments, levies, fees, water
and sewer rents and other governmental charges shall be apportioned between
Landlord and Tenant as of the date on which this Lease terminates or expires.

 

(b)           Utility Charge.  Tenant shall pay all charges for
utility, communication and other services rendered or used on or about the
Leased Property during the Term of this Lease, whether or not payment therefor
shall become due after the Term of this Lease.

 

(c)           Compliance with Laws.  Tenant
shall at all times during the Term of this Lease, at Tenant’s own cost and
expense, perform and comply with, and shall use its reasonable efforts to cause
its agents, visitors and invitees to comply with, all Legal Requirements relating
to the Leased Property, or the Improvements thereon, or the facilities or
equipment thereon or therein, or the
streets, sidewalks, vaults, vault spaces, curbs and gutters adjoining the
Leased Property, or the appurtenances to the Leased Property, or the franchises
and privileges connected therewith, whether or not such Legal Requirements so
involved shall necessitate structural changes, improvements, interference with
use and enjoyment of the Leased Property, replacements or repairs, extraordinary
as well as ordinary, and Tenant shall so perform and comply, whether or not
such Legal Requirements shall now exist or shall hereafter be enacted or
promulgated, and whether or not such Legal Requirements can be said to be
within the present contemplation of the parties hereto.

 

14

 

(d)           Contest Charges and Compliance.  Tenant
shall have the right to contest, by appropriate legal proceedings, any tax,
charge, levy, assessment, lien or other encumbrance, and/or any Legal
Requirement affecting the Leased Property, and to postpone payment of or
compliance with the same during the pendency of such contest; provided that in
the event of such postponement or payment or noncompliance: (i) Tenant
shall not postpone the payment of any such tax, charge, levy, assessment, lien
or other encumbrance for such length of time as shall permit the Leased
Property, or any lien thereon created by such item being contested, to be sold
by federal, state, county or municipal authority for the non-payment thereof; (ii) Tenant
shall not postpone compliance with any such Legal Requirement if Landlord will
thereby be subject to civil liability or criminal prosecution, or if any
Governmental Authority shall commence a process according to applicable law to
carry out any work to comply with the same or to foreclose or sell any lien
affecting all or part of the Leased Property which shall have arisen by reason
of such postponement or failure of compliance; and (iii) Tenant shall pay,
in a timely fashion, all Basic Rent and Additional Rent (other than any item of
Additional Rent that Tenant is permitted to contest pursuant to this Lease, so
long as Tenant satisfies all of the requirements of this Lease relating to such
contest) which shall become due and payable under this Lease.  At the request of Tenant, Landlord agrees to
cooperate with Tenant in connection with any such contest, provided that Tenant
pays all reasonable expenses, including reasonable attorneys’ fees, incurred by
Landlord in connection with any such contest.

 

8.             LIENS:

 

Tenant
will promptly, but no later than sixty (60) days after receipt of actual notice
of the filing thereof, remove and discharge of record, by bond or otherwise,
any charge, lien, security interest or encumbrance upon the Leased Property, or
any Basic Rent, or Additional Rent which arises for any reason, including all
liens which arise out of the possession, use, occupancy, construction, repair
or rebuilding of the Leased Property or by reason of labor or materials
furnished or claimed to have been furnished to Tenant for the Leased Property,
but not including any Permitted Encumbrances. 
Nothing contained in this Lease shall be construed as constituting the
consent or request of Landlord, express or implied, to or for the performance
by any contractor, laborer, materialman, or vendor of any labor or services or
for the furnishing of any materials for any construction, alteration, addition,
repair or demolition of or to the Leased Property or any part thereof.  Notice is hereby given that Landlord will not
be liable for any labor, services or materials furnished or to be furnished to
Tenant, or to anyone holding an interest in the Leased Property or any part
thereof through or under Tenant, and that no mechanics’ or other liens for any
such labor, services or materials shall attach to or affect the interest of
Landlord in and to the Leased Property. 
In the event of the failure of Tenant to discharge any charge, lien,
security interest or encumbrance as aforesaid, Landlord may discharge such
items by payment or bond or both, and Tenant will repay to Landlord, upon
demand, any and all amounts paid by Landlord therefor, or by reason of any
liability on such bond, and also any and all incidental expenses, including reasonable
attorneys’ fees, incurred by Landlord in connection therewith.

 

15

 

9.             INDEMNIFICATION; FEES AND EXPENSES:

 

(a)           Indemnification by Tenant.  Tenant
shall pay, and shall protect, defend, indemnify and hold Landlord and Landlord’s
mortgagee harmless from and against all liabilities, losses, damages, costs,
expenses (including reasonable attorneys’ fees and expenses), claims, demands
or judgments of any nature arising from or in connection with the following
events to the extent such events arise during the Term of this Lease: (i) any
injury to, or the death of, any person or any damage to or loss of property on
the Leased Property or growing out of or directly or indirectly connected with
the ownership by Landlord, use, nonuse, occupancy, construction, repair or
rebuilding of the Leased Property (or adjoining property, to the extent that
any loss or damage to adjoining property arises from or out of the Leased
Property), or resulting from the condition thereof, other than any injury,
death, damage or loss arising out of Landlord’s or Landlord’s mortgagee’s
willful misconduct or negligence; and (ii) violation by Tenant of any
provision of this Lease whether or not such violation results in a violation of
any provision of any mortgage affecting Landlord’s interest in the Leased
Property, or of any law, rule, regulation, ordinance or restriction, now or
hereafter in effect and affecting the Leased Property, or of any lease or other
agreement relating to the Leased Property now or hereafter in effect to which
Tenant is a party or by which Tenant is bound, or of any agreement of which
Tenant now has actual or constructive notice and which is now in effect,
affecting the Leased Property or the ownership by Landlord, use, nonuse,
occupancy, construction, repair or rebuilding thereof.

 

(b)           Notice; Proceedings.  Should any event occur for which any party
hereto is entitled to indemnification pursuant to this Article 9 or other
provisions of this Lease, such party shall provide prompt written notice to the
other parties describing the nature of such claim. The indemnifying party may
assume responsibility for any action to be taken to contest the claim provided
that the indemnifying party will notify the indemnitees in writing of its
intention to contest such claim within thirty (30) days after receipt of notice
of the claim from the indemnitees. The indemnifying party, at its sole expense,
may control all proceedings relating to such contest. The indemnitees will
cooperate with the indemnifying party in contesting such claim, provided that
the indemnifying party indemnifies and holds harmless the indemnitees for all
reasonable costs and expenses (including, without limitation, reasonable
attorneys’ fees and expenses) relating to contesting such claim.

 

10.           ENVIRONMENTAL MATTERS:

 

(a)            Representations and
Covenants.  Tenant represents,
covenants and warrants to Landlord that:

 

(i)            at all times during the Term of this Lease Tenant
and the Leased Property shall comply in all material respects with all
Environmental Laws;

 

(ii)           to the best of Tenant’s knowledge, no notices, complaints or orders of
violation or non-compliance of any nature whatsoever have been issued to Tenant
or, to the best of Tenant’s knowledge, any current or prior tenant or owner of
the Leased Property, and no federal, state or local environmental investigation
is pending or overtly 

 

16

 

threatened,
with regard to the Leased Property or any use thereof or any alleged violation
of Environmental Laws with regard to the Leased Property;

 

(iii)          the Leased Property has not been used by Tenant or, to the best of Tenant’s
knowledge, by any prior owner, and will not be used by Tenant at any time
during the Term of this Lease to generate, manufacture, refine, produce, or
process any Hazardous Substance or to store, handle, transfer or transport any
Hazardous Substance other than routine uses of products in lawful quantities in
compliance with Environmental Laws;

 

(iv)          to the best of Tenant’s knowledge, no underground storage tanks or
surface impoundments are constructed, operated or maintained on or under the
Leased Property;

 

(v)           to the best of Tenant’s knowledge, the Leased Property is and at all
times during the Term of this Lease will be maintained free of Hazardous
Substances, the removal of which is required or the maintenance of which is
prohibited or penalized by Environmental Law; and

 

(vi) to the
best of Tenant’s knowledge, the Leased Property contains no Hazardous Substances
or friable asbestos which could materially adversely affect any person, the
environment or the Leased Property or in any case or in the aggregate, could
impose a material liability on Landlord or Landlord’s mortgagee, and if any
Leased Property contains friable asbestos, Tenant shall comply with Paragraph (f) of
this Article 10 below.

 

For
purposes of this Article 10(a), the phrase “to the best of Tenant’s
knowledge” means the actual, current awareness, as of the date of this Lease,
of Michael F. Hord, Associate General Counsel of Tenant, Chuck Dunn, Senior
Vice President of Trammell Crow Corporate Services, Inc., and Jeffrey W.
Dixon, Senior Vice President — Property Management of Tenant, without
independent investigation or inquiry.

 

(b)            Environmental Covenants. Tenant covenants that during the Term of
this Lease it (i) shall comply, and cause the Leased Property to comply,
with all Environmental Laws applicable to the Leased Property, (ii) shall
prohibit the use of the Leased Property for the generation, manufacture,
refinement, production, or processing of any Hazardous Substance or for the
storage, handling, transfer or transportation of any Hazardous Substance (other
than in connection with the operation and maintenance of the Leased Property and
in commercially reasonable quantities as a consumer thereof and in compliance
with Environmental Laws), (iii) shall not install or permit the
installation on the Leased Property of any underground storage tanks or surface
impoundments and shall not permit there to exist any petroleum contamination in
violation of applicable Environmental Laws to the Leased Property originating
on or off the Leased Property (other than in connection with the use, operation
and maintenance of the Leased Property and then only in compliance with
applicable Environmental Laws and all other applicable laws, rules, orders,
ordinances, regulations and requirements now or hereafter enacted or
promulgated of every government and municipality having jurisdiction over the
Leased Property and of any agency thereof) or asbestos-containing materials in
violation of applicable 

 

17

 

Environmental Laws and (iv) shall
cause any alterations of the Leased Property to be done in a way so as to not
expose the persons working on or visiting the Leased Property to Hazardous
Substances and in connection with any such alterations shall remove any
Hazardous Substances present upon the Leased Property which are not in
compliance with Environmental Laws or which present a danger to persons working
on or visiting the Leased Property.  With
respect to any violation of applicable Environmental Laws related to the Leased
Property caused by Hazardous Substances originating off of the Leased Property
and not generated therefrom by Tenant, its agents, employees or contractors,
Landlord authorizes Tenant to institute any action against the party
responsible for such violation.  So long
as Tenant is diligently pursuing all available recourse against the party
responsible for such violation, and so long as such violation does not pose a
risk to public health, materially threaten the use of the Leased Property or
the value thereof, or expose Landlord or Landlord’s mortgagee, in any manner,
to any claim or liability, Tenant may defer taking remedial measures to correct
the violation caused by Hazardous Substances originating off of the Leased
Property; provided that such period of deferral may be terminated by Landlord
or Landlord’s mortgagee at any time if either Landlord or Landlord’s mortgagee,
each in its sole and absolute discretion, believes that the public health, the
use of the Leased Property or the value thereof are threatened by such
violation or such Hazardous Substances. 
In no event shall the ability to defer remedial measures relieve Tenant
of the responsibility therefor, which responsibility shall expressly survive
the expiration or sooner termination of this Lease.

 

(c)           Notice; Right to
Contest.  As soon as reasonably
possible after obtaining knowledge thereof, Tenant shall give to Landlord
notice of the occurrence of any of the following events: (i) the failure
of the Leased Property to comply with any Environmental Law; (ii) the
receipt by Tenant or any sublessee or assignee of Tenant of any notice, complaint
or order of violation or non-compliance of any nature whatsoever with regard to
the Leased Property or the use thereof with respect to Environmental Laws; or (iii) the
receipt by Tenant or any sublessee or assignee of Tenant of any notice of a
pending or threatened investigation that Tenant’s (or its sublessees’ or
assignees’) operations on the Leased Property are not in compliance with any
Environmental Law. Tenant shall have the right to contest, by appropriate
proceedings, any notice, complaint, order or finding of violation or
non-compliance with any Environmental Laws affecting the Leased Property or any
use thereof by Tenant or its sublessees or assignees, provided the same will
not thereby subject Landlord or Landlord’s mortgagee to civil liability or
criminal prosecution or permit any Governmental Authority to commence a process
according to applicable law to carry out any work to comply with the same or to
foreclose or sell any lien affecting all or any portion of the Leased Property
which may arise in connection therewith. If Tenant determines that the Leased
Property is in violation of an Environmental Law, Tenant will promptly give
Landlord written notice thereof notwithstanding the fact that the matter giving
rise to such violation may have been disclosed in the Environmental Report
delivered to Landlord and Landlord’s mortgagee.

 

(d)           Audit.  At any time that Landlord receives notice
that an adverse change in the environmental condition of one or more parcels
comprising the Leased Property has occurred, Landlord shall give notice thereof
to Tenant, and if Tenant shall not diligently commence to cure such condition
within thirty (30) days of receipt of such notice (or such shorter period as
may be required by law or in the event of an emergency), Landlord may
reasonably cause to be performed an environmental audit or risk assessment of
the relevant portion of the Leased 

 

18

 

Property and the
then uses thereof, and may take such other actions as Landlord may deem
necessary to cure such condition.  Such
an environmental audit or assessment shall be performed by an environmental
consultant satisfactory to Landlord and shall include a review of the uses of
the Leased Property and compliance of the same with all Environmental
Laws.  All reasonable costs and expenses
incurred by Landlord in connection with such environmental audit or assessment
shall be paid by Tenant upon demand.

 

(e)            Contaminated
Property.  If at any time an event or
condition shall have occurred and be continuing which results in conditions at
any parcel of the Leased Property that exceed any applicable standards under
any Environmental Law, or a notice, complaint, or order or finding of violation
or non-compliance with any Environmental Law shall have been received by Tenant
with respect to any parcel comprising the Leased Property (a “Contaminated
Property”), Tenant shall diligently perform all remedial work to the
Contaminated Property at Tenant’s own cost and expense to bring the Contaminated
Property into full compliance with Environmental Laws and the requirements of
this Article 10 by not later than the end of the Term of this Lease,
provided that (x) at the time the remedial work begins and at all times
while the remedial work is continuing, Tenant has a credit rating of Baa1 or higher from Moody’s Investors Service (or BBB+
from Standard & Poor’s) (“Tenant’s Minimum Credit Rating”)
and a net worth of One and One-Half Billion Dollars ($1,500,000,000) or higher,
or (y) (A) the cost of such remedial work is less than One Million
Dollars ($1,000,000) with respect to the Contaminated Property at the outset
and at all times while the remedial work is continuing, as determined by an
environmental consultant selected by Tenant and approved by Landlord and
Landlord’s mortgagee, which approval shall not be unreasonably withheld or
delayed, and (B) in the opinion of an environmental consultant selected by
Tenant and approved by Landlord and Landlord’s mortgagee, which approval shall
not be unreasonably withheld or delayed, the remedial work can be completed
within one year and in no event later than the end of the Term of this Lease
(the consultant’s reports referred to in (A) and (B) above being
provided at the beginning of the remediation period and updated every
forty-five (45) days thereafter).

 

(f)            Asbestos Program.  As to
all Leased Properties which are known or become known by Tenant to contain
asbestos, Tenant shall continue its present program or shall implement a
program for monitoring and maintaining any asbestos contained in the
Improvements in a manner designed to minimize the risk of harm resulting from
its presence.  Tenant represents that its
present asbestos program includes (i) procedures to monitor the condition
of any asbestos known to be contained in the Improvements, to notify employees
and third party contractors engaged to do work in the Leased Property of a sort
which might increase the risk of exposure to asbestos and to cause any such
work to be done in a manner which minimizes the risk of such increased
exposure, (ii) procedures to remove any asbestos, the condition of which
might be disturbed by any alterations or renovations of the Leased Property
undertaken by Tenant, prior to undertaking to do such alterations or renovations,
and (iii) plans to remove promptly any asbestos which is revealed by the
monitoring program to have deteriorated in condition to a point which creates a
significant risk of exposure or the removal of which is required by any
Environmental Laws.  Tenant shall also
continue its present practices respecting the possibility of the existence of
asbestos in Leased Properties not known to contain asbestos, which include (i) requiring
qualified property operations and maintenance personnel to conduct periodic
inspections of the Leased Property and to report the presence of any material
suspected to be asbestos found in the course of inspections of the Leased
Properties, 

 

19

 

(ii) inspection
of Leased Properties so reported to confirm the presence or absence of
asbestos, and (iii) inspection of affected areas of Improvements prior to
and during alteration, repair or renovation to confirm the presence or absence
of asbestos.

 

(g)           Indemnification.  Tenant agrees to indemnify,
defend and hold harmless Landlord and each and all of Landlord’s members,
partners, shareholders, officers, directors, employees, attorneys and agents
and Landlord’s mortgagee and all of Landlord’s mortgagee’s members, partners,
shareholders, officers, directors, employees, attorneys and agents
(collectively called the “Indemnitees”) from and against any and all
losses (including, without limitation, diminution in value of the Leased
Property), liabilities (including, without limitation, strict liability),
suits, obligations, fines, damages, judgments, penalties, claims, charges,
costs and expenses (including, without limitation, reasonable fees and
disbursements of counsel and consultants for such Indemnitees), which
may be suffered or incurred by, or asserted against, an Indemnitee and which
arise directly or indirectly out of a violation prior to and during the Term of
this Lease of this Article 10 or arise directly or indirectly from the
presence of Hazardous Substances on the Leased Property prior to or during the
Term of this Lease in amounts or concentrations requiring remediation under
applicable law or by order of Governmental Authority.

 

(h)           Survival.  The warranties and obligations of Tenant, and
the rights and remedies of Landlord under this Article 10, are in addition
to and not in limitation of any other warranties, obligations, rights and
remedies provided in this Lease or otherwise at law or in equity and shall
survive the termination of this Lease, either pursuant to the terms hereof or
following an Event of Default.

 

11.           MAINTENANCE AND REPAIR:

 

Tenant
will, at its cost and expense, keep and maintain the Leased Property in good
repair and condition, and will make all structural and non-structural, and
ordinary and extraordinary changes, repairs and replacements which may be
required to be made upon or in connection with the improvements to the Leased
Property in order to keep the same in good repair and condition.  Except as otherwise provided in Article 13
with respect to making insurance proceeds available to restore a Leased
Property, Landlord shall not be required to maintain, alter, repair, rebuild or
replace any Improvements on the Leased Property or to maintain the Leased
Property, and Tenant expressly waives the right to make repairs at the expense
of Landlord pursuant to any law at any time in effect.

 

12.                               ALTERATIONS AND ADDITIONS:

 

(a)           No Consent for Certain Alterations; Additional
Improvements.  Subject to the terms and conditions contained
in this Article 12, Tenant may, without the consent of Landlord, at Tenant’s
own cost and expense, make additions or improvements to or alterations of the
Improvements now or hereafter erected on the Leased Property, including,
without limitation, the construction of new buildings and improvements and the
demolition of existing Improvements to replace them with new buildings and
improvements (“Additional Improvements”).  Notwithstanding the foregoing, Tenant
shall not make any Additional Improvements in violation of the terms of any
restriction, easement, condition or covenant or other matter affecting title to
the Leased Property.  The demolition of
any existing Improvements 

 

20

 

and the construction of
all such Additional Improvements shall be subject to the following conditions:

 

(i)            Continuation of
Bank Use.  The demolition of any existing Improvements and/or the
construction of all such Additional Improvements shall not cause a permanent
reduction in the area of the Leased Property improved for retail bank use,
provided that Landlord acknowledges that (a) the design, plans and
physical configuration of a retail bank facility are subject to change to
reflect Tenant’s then current design standards for retail bank facilities, as
well as the prevailing standards for retail bank facilities observed by
national banks within the same geographic region, and (b) additions,
improvements, or alterations made by or for Tenant to physically adapt and
improve its retail bank facility to meet such internal or industry standards
shall not itself constitute a change in use from a bank facility;

 

(ii)           Title
to Additional Improvements.  Title to any such Additional Improvements
shall remain the property of Tenant during the Term and shall vest in Landlord
immediately upon the expiration or earlier termination of the Term of this
Lease;

 

(iii)          Authorizations.  No
Additional Improvements shall be undertaken until Tenant shall have procured
and paid for, so far as the same may be required from time to time, all permits
and authorizations of all municipal and other governmental authorities having
jurisdiction of the Leased Property. 
Landlord shall, at Tenant’s expense, join in the application for any
such permit or authorization and execute and deliver any document in connection
therewith, whenever such joinder is necessary;

 

(iv)          Standard
of Construction.  The making of the Additional Improvements
shall be expeditiously completed in a good and workmanlike manner and in
compliance with all applicable laws, rules, regulations, ordinances and
covenants and restrictions then in effect;

 

(v)           Approval
of Architect or Engineer May be Required.  The demolition of any existing
Improvements, the making of any structural alterations and the construction of
new buildings on a Leased Property, shall be conducted under the supervision of
an architect or engineer employed or engaged and paid by Tenant and approved in
writing by Landlord, which approval shall not be unreasonably withheld and
which architect or engineer shall be deemed approved by Landlord if such
approval or denial is not received within ten (10) Business Days after
receipt of said notice; and neither shall be undertaken except in accordance
with detailed plans and specifications and cost estimates prepared by Tenant
and approved by Landlord, which approval shall not be unreasonably withheld and
which plans and specifications shall be deemed approved by Landlord if such
approval or denial is not received within ten (10) Business Days after
receipt of said notice;

 

21

 

(vi)          No
Adverse Effect on Fair Market Value.  Any Additional Improvements
shall, when completed, be of such a character as not to adversely affect the
fair market value of the Leased Property or any part thereof.  Prior to the commencement of the demolition
of any existing Improvements or the construction of any Additional
Improvements, Tenant shall furnish Landlord with a certificate (which may be in
letter form) confirming that said Additional Improvements is of such a
character as to not adversely affect the fair market value of the Leased
Property or any part thereof; if required by Landlord’s mortgagee, an Appraiser
reasonably acceptable to Landlord and Tenant shall resolve any objections made
by Landlord to such certificate by appraising, at Tenant’s cost and expense,
the subject Leased Property both with or without such Additional Improvements.

 

(vii)         Bond.  If at
the time of a total or substantial demolition of an existing Improvement,
Tenant shall fail to maintain Tenant’s Minimum Credit Rating, then Tenant
shall, prior to the commencement thereof, deposit with the Depository a bond or
cash in an amount equal to the cost of the Additional Improvements or such
lesser amount as shall be satisfactory to Landlord to assure the completion of
the making of such Additional Improvements, as the case may be (such bond or
other collateral to be reduced from time to time as construction of the
Additional Improvements progresses).  The
foregoing requirement of a bond or cash security shall not apply for so long as
Tenant shall maintain Tenant’s Minimum Credit Rating;

 

(viii)        No Liens.  Subject
to the provisions of Article 8 hereof, the cost of any Additional
Improvements shall be paid by Tenant when due so that the Leased Property shall
at all times be free of liens for labor and materials supplied or claimed to
have been supplied to the Leased Property;

 

(ix)           Compliance
with Article 5; Independent Operation.  After completion of any
Additional Improvements, the subject Leased Property shall continue to comply
with Article 5 of this Lease, shall not be connected to any buildings or
improvements not located wholly on such Leased Property and shall be capable of
being operated independently of any other buildings or improvements not owned
by Landlord at the end of the Term of this Lease;

 

(x)            Insurance.  During
the period when any demolition or construction in connection with any
Additional Improvements is underway, Tenant, or its contractors and
subcontractors, shall maintain or cause to be maintained the following
insurance (in addition to the insurance required to be maintained by Tenant
pursuant to the provisions of Article 14 hereof, but subject to Tenant’s
right to self insure as provided in such Article 14 hereof): (A) completed
value builder’s risk insurance for the Leased Property, including all building
materials thereon, covering loss or damage from all risk perils including, but
not limited to, flood, earthquake, terrorism, collapse, loss resulting from
faulty work, fire, lightning, extended coverage perils, sprinkler leakage,
vandalism and malicious

 

22

 

mischief
in an amount not less than the cost, as estimated by Tenant, of the
construction of the Additional Improvements, (B) workmen’s compensation
insurance covering the full statutory liability as an employer of the
contractor performing the work of making such Additional Improvements, and (C) commercial
general and umbrella liability provided by all contractors and subcontractors
naming Landlord and Landlord’s mortgagee in an amount not less than One Million
Dollars ($1,000,000) per project;

 

(xi)                                Title Report; Certificate of Occupancy.  Upon
completion of the making of the Additional Improvements, Tenant shall furnish
Landlord with (A) a current title report for such Leased Property and (B) copies
of all Certificates of Occupancy or other certificates required by applicable
laws; and

 

(xii)                             Survey.  In the case of any Additional Improvement
constituting or including construction of, or a change in the location of any
exterior walls of, a building, or the construction of a new building, Tenant
shall furnish Landlord with a survey showing the location of said Additional
Improvements, prepared by a licensed surveyor acceptable to Landlord, certified
to Landlord, Landlord’s mortgagee and the title insurance company or companies
issuing a policy or an endorsement pursuant to clause (x) of
Paragraph (a) of this Article 12.

 

(xiii)                         Limitations on Demolition.  Tenant
shall not cause the total or substantial demolition of the existing
Improvements at more than three (3) of the Leased Properties at any one
time.

 

Without diminishing or
impairing Landlord’s rights of receipt, consent and approval as set forth in
this Article 12(a) and subject to Tenant’s compliance with the terms
and conditions of this Article 12, Landlord shall be deemed to have
consented to the making of any Additional Improvements (if such consent is
required under this Lease) if Landlord’s consent or denial is not received by
Tenant within twenty (20) days after Landlord’s receipt of a notice from Tenant
identifying the Leased Property and describing the proposed Additional
Improvements, in reasonable detail.

 

(b)                                Tenant’s Equipment.  Except
as otherwise expressly provided in this Lease, Tenant may, at its own cost and
expense, install or place upon or reinstall or replace upon and remove from the
Leased Property any trade fixtures, machinery and equipment.  Any such trade fixtures, machinery and
equipment shall not become the property of Landlord (other than replacements of
machinery and equipment which are the property of Landlord, which replacement
shall also be the property of Landlord). 
Replacements of Equipment which are property of the Landlord
shall be of at least equal quality and fair market value to the replaced
Equipment when the replaced items were new. 
Tenant shall repair any damage caused by removal of Equipment from the
Leased Property, at Tenant’s own cost and expense.

 

13.                               CONDEMNATION AND CASUALTY:

 

(a)                                 Assignment of Proceeds; Tenant Authorized to Act
for Landlord.  Except as provided herein, Tenant hereby
assigns to Landlord any award, compensation, insurance 

 

23

 

proceeds
or other payment (including the proceeds of any self insurance and deductibles)
to which Tenant may become entitled by reason of its interest in any Leased Property,
other than any award, compensation or insurance payment made to Tenant for
interruption or loss of business, for moving expenses or for any inventory,
machinery, equipment or other personal property belonging to Tenant
(hereinafter referred to as “Tenant’s Loss”) by reason of (i) damage
to or destruction of any Leased Property by fire or other casualty (a “Casualty”),
or (ii) by reason of any Condemnation, requisition or other taking or sale
of the use, occupancy, access or title to any Leased Property or any portion
thereof in, by or on account of any actual or threatened eminent domain
proceeding or other action by any Governmental Authority or other person having
the power of eminent domain (a “Condemnation”).  Tenant is hereby authorized and empowered, at
its cost and expense, in the name and on behalf of Landlord, Tenant or
otherwise, to appear in any such proceeding or other action, to negotiate,
accept and prosecute any claim for any award, compensation, insurance proceeds
or other payment on account of any such Casualty or Condemnation, and to cause
any such award, compensation, insurance proceeds or other payment to be paid to
Landlord, except that Tenant shall be entitled to submit a claim for Tenant’s
Loss and receive and retain any award applicable thereto.  All amounts so paid or payable to Landlord or
Tenant shall be retained or paid over to the party entitled thereto in
accordance with the provisions of this Article 13.  Tenant shall take all appropriate action in
connection with each such claim, proceeding or other action, however, Landlord
and Landlord’s mortgagee may participate in such proceeding(s), and Tenant
shall deliver all instruments reasonably requested by Landlord and Landlord’s
mortgagee to permit such participation, and Tenant shall pay all costs and
expenses in connection therewith.

 

(b)                                Partial Damage or Condemnation; Restore or Repair.  If
Tenant shall reasonably determine that less than a substantial portion of any
Leased Property has been (i) damaged or destroyed by Casualty, or (ii) condemned,
then Tenant shall give prompt written notice thereof to Landlord, and this
Lease shall continue in full force and effect, and Tenant shall, at Tenant’s
own cost and expense and in conformity with the requirements set forth in Paragraph (a) of
Article 12 hereof, proceed with reasonable diligence and promptness to
carry out any necessary demolition and to restore, repair, replace, and/or
rebuild such Leased Property in order to restore such Leased Property, as
nearly as practicable, to the condition and fair market value thereof
immediately prior to such Casualty or Condemnation.

 

(i)                                     No
Abatement.  Except as expressly
provided herein, Basic Rent shall not abate hereunder by reason of any such
Casualty or Condemnation of such Leased Property, and Tenant shall continue to
perform and fulfill all of Tenant’s obligations, covenants and agreements
hereunder notwithstanding such damage or destruction.

 

(ii)                                  Cost
or Repair and Net Award.  Landlord
and Tenant shall agree on the maximum cost of such restoration, repair,
replacement or rebuilding and such cost shall be paid first out of the Net
Award and then out of Tenant’s own funds to the extent such cost exceeds the
Net Award.  Provided no Event of Default
shall have occurred and be continuing, and provided that Tenant shall have
maintained Tenant’s Minimum Credit Rating, then the Net Award shall be paid to
Tenant (and to the extent the Net Award was previously assigned to Landlord,
will be remitted by Landlord to Tenant) to be applied to 

 

24

 

the repair and
rebuilding work required by this Paragraph (b). 
If Tenant has not maintained Tenant’s Minimum Credit Rating, the
proceeds shall be disbursed in accordance with clauses (i) - (iv) of
Paragraph (d) of this Article 13.

 

(c)                                (i)                                     Substantial or Complete Destruction or
Condemnation: Repair or Terminate.  If, at any time during the Term of this
Lease, Tenant shall reasonably determine that all or a substantial portion of
any Leased Property has been destroyed by Casualty, or all or substantially all
of any Leased Property has been taken by Condemnation, or after any substantial
Condemnation of such Leased Property if such Leased Property is unsuitable for
continued use in Tenant’s business, Tenant shall promptly notify Landlord of
such event in writing within sixty (60) days
of such Condemnation or Casualty.  In
such event, Tenant may either (i) rebuild and/or restore such Leased
Property, at Tenant’s own cost and expense and in conformity with the requirements
set forth in paragraphs (a) and (b) of Article 12 hereof and Article 13(d) hereof
or (ii) give written notice to Landlord within one (1) year after
such Condemnation or Casualty of Tenant’s intention to terminate this Lease
with respect to such Leased Property in conformity with the requirements herein
set forth.

 

(ii)                                 Determination of Substantial Destruction or
Condemnation.  Substantially all of a Leased Property
shall be deemed to have been taken by Condemnation if the remaining portion of
such Leased Property shall not be of sufficient size or character to permit the
operation by Tenant on an economically feasible basis of the business conducted
thereon immediately prior to the Condemnation, assuming that such remaining
portion had been repaired and restored to the fullest extent possible.  Substantially all of a Leased Property shall
be deemed to have been destroyed by Casualty, if Tenant determines in its
reasonable discretion that such Leased Property is no longer suitable for use
in its business.

 

(iii)                              Notice of Termination; Purchase; Net Award.  Tenant’s
notice to Landlord of Tenant’s intent to terminate this Lease shall (i) contain
a brief description of the relevant Condemnation or Casualty, (ii) specify
such termination date, which shall be at least sixty (60) days after such
notice is given (the “Termination Date”), (iii) if such notice of
termination shall be based on a reasonable determination by Tenant that after
such Casualty or Condemnation such Leased Property is no longer suitable for
use in Tenant’s business as aforesaid, contain a certification by Tenant that
an officer of Tenant has made such determination, and that, on or before such
Termination Date, Tenant will discontinue the use of such Leased Property in
Tenant’s ordinary course of business, (iv) if such Termination Date shall
occur during the Initial Term, contain the irrevocable offer of Tenant to
purchase Landlord’s interest in such Leased Property (and the Net Award
hereinafter referred to) on such Termination Date at the Termination Value
(defined as the amount relating to the subject Leased Property corresponding to
the applicable Termination Date on Schedule C
annexed hereto); and (v) if such notice of termination is given during the
Initial Term and if Tenant shall fail to maintain Tenant’s Minimum Credit
Rating, contain a commitment by Tenant to deposit with a Depository not later
than one (1) year after the date of the Condemnation or Casualty as
security for payment of the purchase price for such Leased Property the
applicable Termination Value less the amount of any insurance proceeds or
Condemnation award previously paid with respect to such Casualty or taking and
held by Landlord or Landlord’s designee pursuant to Paragraph (a) of
this Article 13.  If Landlord shall
reject such offer to purchase by notice given to Tenant not later than
twenty (20) Business Days prior to such Termination Date, or if such
Termination Date 

 

25

 

shall
occur during a Renewal Term, then this Lease shall terminate as to such Leased
Property on such Termination Date and the Net Award relating to such Leased
Property shall be paid and belong to Landlord; plus an amount equal to the
deductible payable under the policy or policies of insurance, which shall be
paid by Tenant to Landlord, and no further Basic Rent or payment of Termination
Value will be payable with respect to such Leased Property.  Unless Landlord shall reject such offer to
purchase as provided in the preceding sentence, Landlord shall be conclusively
deemed to have accepted such offer, and on such Termination Date Landlord shall
transfer, and Tenant shall purchase, Landlord’s interest in such Leased
Property (and the Net Award) in accordance with the provisions of Article 17
hereof.  The additional amount, if any,
deposited by Tenant pursuant to clause (v) of Paragraph (c)(iii) of
this Article 13 and not applied towards the purchase price of such Leased
Property shall be paid to Tenant on the Termination Date if no Event of Default
shall have occurred and be continuing.

 

(iv)                              Failure
to Give Termination Notice.  If
Tenant shall not give notice of its intention to terminate this Lease as to
such Leased Property in accordance with Paragraph (c) of this Article 13
or shall not be entitled to give notice of its intention to terminate this
Lease as to such Leased Property, then this Lease shall continue in full force
and effect.  Nothing contained herein
shall be deemed to affect this Lease as to the other Leased Properties subject
hereto, and this Lease shall continue in full force and effect as to such other
Leased Properties not the subject of such condemnation or casualty.

 

(d)                                Failure to Maintain Tenant’s Minimum Credit
Rating; Tenant in Default.  If Tenant shall not have maintained Tenant’s
Minimum Credit Rating, or if an Event of Default shall have occurred and be
continuing, then:

 

(i)                                     Net Award Paid to Depository.  The full
amount of the Net Award shall be paid to a depository (the “Depository”)
to be selected as hereinafter provided. 
The Depository shall be a bank or trust company selected by Landlord and
approved by Tenant, which is authorized to do business in the
Commonwealth of Pennsylvania or the State of North Carolina, and which has a
net worth of One Billion Dollars ($1,000,000,000) or more.  The Depository shall have no affirmative
obligation to prosecute a determination of the amount of, or to effect the
collection of, any insurance proceeds or Condemnation award or awards, unless
the Depository shall have been given an express written undertaking to do so by
Landlord and Tenant.  Moneys received by
the Depository pursuant to the provisions of this Lease shall not be mingled
with the Depository’s own funds and shall be held by the Depository in trust,
either separately or with other trust funds, for the uses and purposes provided
in this Lease.  The Depository shall
place any moneys held by it into an interest bearing account; and the interest
paid or received by the Depository on the moneys so held in trust shall be added
to the moneys so held in trust.  The
Depository shall not be liable or accountable for any action taken or suffered
by the Depository or for any disbursement of moneys made by the Depository in
good faith in reliance on advice of legal counsel.  In disbursing monies pursuant to clause (ii) of
this paragraph (d), the Depository may rely conclusively on the information
contained in any notice given to the Depository by Tenant in accordance with
the provisions of said clause (ii), unless Landlord shall notify the Depository
in writing within 

 

26

 

five (5) Business
Days after the giving of any such notice that Landlord intends to dispute such
information, in which case the disputed amount shall not be disbursed but shall
continue to be held by the Depository until such dispute shall have been
resolved;

 

(ii)                                  Agreement on Repair Costs and Payment Thereof.  Prior to
any such rebuilding, restoration or repair, Landlord and Tenant shall
agree on the maximum cost of such rebuilding, restoration or repair, and such
cost shall be paid first out of the Net Award and then out of Tenant’s own
funds to the extent such cost exceeds the Net Award;

 

(iii)                               Tenant Reimbursements from Net Award.  From
time to time, but not more often than once in any thirty (30) day period,
Tenant may request reimbursement out of the Net Award for the actual costs and
expenses incurred by Tenant in connection with such repair and rebuilding.  Any such costs and expenses will be paid by
Tenant to the extent of the deductible amount under the policy of insurance
covering the Casualty in question before the insurance proceeds are applied for
such purpose.  Such requests shall be
made by written notice to the Depository, with a copy to Landlord, setting
forth in reasonable detail all of such costs and expenses incurred by
Tenant.  If Landlord shall in good faith
desire to dispute the information contained in any notice given by Tenant
pursuant to this clause (iii), Landlord shall so notify Tenant and the
Depository in writing within five (5) Business Days after the giving
of such notice, specifying the amount intended to be disputed and the nature of
the dispute.  The Depository shall
disburse to Tenant out of the Net Award the amount of such costs and expenses
as set forth in clause (ii) above immediately following the later of (A) the
five (5) Business Day period referred to above, or (B) the date
on which any dispute as to the cost or expense in question is resolved; and

 

(iv)                              Excess Net Award to Landlord.  Upon the
completion of such repair and rebuilding, any remaining Net Award (less an
amount equal to the cost of any Additional Improvements paid for or financed by
Tenant pursuant to Article 12(c) hereof) shall be paid to and belong
to Landlord.

 

(e)                                 Temporary Condemnations. 
Notwithstanding any other provision to the contrary contained in this Article 13,
in the event of a temporary Condemnation, this Lease shall remain in full force
and effect and Tenant shall be entitled to the Net Award allocable to such
temporary Condemnation; except that such portion of the Net Award allocable to
the time period after the expiration or termination of the Term of this Lease
shall be paid to Landlord.

 

14.                               INSURANCE:

 

(a)                                 Tenant shall during the term hereof, at its cost
and expense, maintain valid and enforceable insurance of the following
character:

 

27

 

(i)                                     “all risks” insurance coverage against losses by
fire and lightning and other risks including, but not limited to, boiler and
machinery, flood, earthquake and terrorism, for the full insurable replacement
value of the Improvements and the Equipment, and all building materials,
equipment, machinery, appliances, furniture, furnishings and other property
which constitute part of the Leased Property, with agreed amount endorsement or
endorsements providing equivalent protection, including loss by windstorm,
hail, explosion, riot - (including riot attending a strike), civil commotion,
aircraft, vehicles, smoke damage, and vandalism and malicious mischief, but
excluding insurrections, rebellions, revolutions and civil wars, in amounts not
less than the full insurable value of all buildings and other improvements on
the Leased Property.  The term “full
insurable value” as used herein means the actual replacement cost, including
the costs of debris removal, but excluding the cost of constructing foundation,
footings and excavations.

 

(ii)                                  Comprehensive general public liability insurance
covering the legal liability of Landlord and Tenant against claims for bodily
injury, death or property damage, occurring on, in or about the Leased Property
and the adjoining land or occurring as a result of ownership of facilities
located on the Leased Property or as a result of the use of products or
materials manufactured, processed, constructed or sold, or services rendered,
on the Leased Property, in the minimum amount of Three Million Dollars
($3,000,000) with respect to any one occurrence, accident or disaster or
incidence of negligence.  Coverage should
include “premises/operations”, “independent contractors”, and “blanket
contractual” liabilities.  If the
insurance is provided on a claims made basis, the insured amount shall be Three
Million Dollars ($3,000,000) per claim and the coverage shall be the same as
under the occurrence form.  Any claims
made policy shall provide that (A) coverage will be continuous, (B) the
retroactive date of the first claims made policy shall be the expiration date
of the preceding continuous occurrence coverage, (C) at each renewal of
the claims made coverage the retroactive date shall not be advanced, (D) if
the retroactive date is advanced or coverage is cancelled for whatever reason,
Tenant shall deliver to Landlord a certificate of insurance showing that Tenant
has purchased the extended reporting period or supplemental tail endorsement
under the previous policy extending the period for an unlimited time, if
reasonably available, during which a claim may first be made, and (E) the
certificate of insurance shall show the retroactive date.

 

(iii)                              Workmen’s compensation insurance.  Tenant shall comply with applicable workmen’s
compensation laws of the state where the Leased Property is located, and shall
maintain such insurance if and to the extent necessary for such compliance.

 

(iv)                              Such other insurance, in such amounts and against
such risks, as is customarily maintained by operators of similar properties.

 

28

 

(v)                                 Catastrophe excess - single limit liability insurance
in the amount of Three Million Dollars ($3,000,000) with respect to the risk
referred to in clause (ii) of this Paragraph (a) of Article 14.

 

Such
insurance shall be written by companies of recognized financial standing which
are rated at least AXV by national rating organizations and have a claims
paying ability rating from Standard & Poor’s Corporation of AAA or a
rating from Best’s of at least A:XIII, and are legally qualified to issue such
insurance, and are acceptable to Landlord and Landlord’s mortgagee, and shall
name as the insured parties Landlord and Tenant, any mortgagee of Landlord’s
interest in the Leased Property, with respect to the insurance listed in (ii) through
(v) above as their interests may appear. 
Such insurance may provide for such reasonable deductible amounts as are
customarily provided for in insurance maintained by operators of comparable
buildings (but in no event in excess of Two Hundred Fifty Thousand Dollars
($250,000) per occurrence, adjusted for increases in the CPI), and may be
obtained by Tenant by endorsement on its blanket insurance policies provided
that each such endorsement on the blanket insurance policy shall provide for a
reserved amount thereunder with respect to the Leased Property so as to assure
that the amount of insurance required by clause (i) of
Paragraph (a) of this Article 14 will be available
notwithstanding any losses with respect to other property covered by such
blanket policy, or, if reservation of amounts under Tenant’s blanket insurance
policy is not available under the terms of such policies, shall otherwise be
acceptable to Landlord and Landlord’s mortgagee.  Tenant may, at its cost and expense,
prosecute any claim against any insurer or contest any settlement proposed by
any insurer, and Tenant may bring any such prosecution or contest during the
Term of this Lease in the name of Landlord, Tenant or both, and Landlord will
join therein at Tenant’s request, provided that Tenant shall indemnify Landlord
against any costs or expenses which Landlord may incur in connection with such
prosecution or contest.  Notwithstanding
anything in this Lease to the contrary, so long as Tenant shall maintain Tenant’s
Minimum Credit Rating, Tenant may self-insure in order to meet any insurance
requirements in this Lease.  In the event
Tenant fails, in whole or in part, to carry insurance that complies with the
requirements of this Article 14(a), Tenant shall be deemed to self-insure
to the extent of such noncompliance.

 

(b)                                Insurance claims by reason of damage or
destruction to any portion of the Leased Property shall be adjusted by Tenant,
subject to the approval of Landlord if Tenant has not maintained Tenant’s
Minimum Credit Rating, which approval Landlord agrees not to unreasonably
withhold or delay.

 

(c)                                 Every insurance policy maintained pursuant to
clause (ix) of Paragraph (a) of Article 12, or
Paragraph (a) of this Article 14 shall: (i) name Landlord
and Landlord’s mortgagee, as additional insureds as their interests may appear;
(ii) contain a standard first mortgage endorsement naming any mortgagee of
Landlord’s interest in the Leased Property; (iii) provide that in the
event that Tenant has failed to maintain Tenant’s Minimum Credit Rating, all of
such proceeds shall be paid as provided in Article 13 hereof; (iv) provide
that the issuer waives all rights of subrogation against Landlord, any
successor to Landlord’s interest in the Leased Property, and any mortgagee of
Landlord’s interest in the Leased Property; (v) provide that thirty (30)
days’ prior written notice of cancellation, modification, termination or lapse
of coverage shall be given to Landlord and any mortgagee of Landlord’s interest
in the Leased 

 

29

 

Property
and that such insurance, as to the interest of such mortgagee, shall not be
invalidated by any act or neglect of Tenant or of Landlord or any owner of the
Leased Property, nor by any foreclosure or any other proceedings relating to
the Leased Property, nor by any change in the title ownership of the Leased
Property, nor by occupation of the Leased Property for purposes more hazardous
than are permitted by such policy; and (vi) be primary and without right
or provision of contribution as to any other insurance carried by Landlord or
any other interested party; and (vii) in the event any insuring company is
not domiciled within the United States of America, include a United States
Service of Suit clause (providing any actions against the insurer by the
named insured or Landlord are conducted within the jurisdiction of the United
States of America).

 

(d)                                Except to the extent Tenant self-insures as
permitted by Article 14(a) hereof, Tenant shall deliver to Landlord
upon the execution and delivery of this Lease certificates of insurance, on an
Acord 27 form for property and Acord 25 form for other insurance, signed by an
authorized insurance company representative, reasonably satisfactory to
Landlord and any mortgagee of Landlord’s interest in the Leased Property,
evidencing all the insurance which is then required to be maintained by Tenant,
and Tenant shall, within thirty (30) days prior to the expiration of any such
insurance, deliver certificates of insurance, on an Acord 25 or 27 form, as the
case may be, evidencing the renewal of such insurance, signed by an authorized
insurance company representative, evidencing the renewal of such insurance.

 

(e)                                 Tenant shall comply with all of the terms and
conditions of each insurance policy maintained pursuant to the terms of this
Lease.

 

15.                              FlNANCIAL STATEMENTS:

 

Subject
to the last paragraph of this Article 15, Tenant shall furnish the
following statements to Landlord:

 

(a)                                  as soon as practicable and in any event within
one hundred fifty (150) days after the end of each fiscal year, a consolidated
statement of earnings, and a consolidated statement of changes in financial
position, a consolidated statement of stockholders’ equity, and a consolidated
balance sheet of Tenant as of the end of each such year, all in the form
as furnished by Tenant to the SEC, the Federal Deposit Insurance Corporation (“FDIC”),
the Office of the Comptroller of the Currency (“OCC”), the Office of
Thrift Supervision (“OTS”), or similar federal agency having regulatory
jurisdiction over Tenant, or, if no such jurisdiction exists, in reasonable
detail and reasonably satisfactory in scope to Landlord and certified to Tenant
as to consolidated statements by independent public accountants of recognized
standing selected by Tenant whose certificate shall be based upon an
examination conducted in accordance with generally accepted auditing standards
and the application of such tests as said accountants deem necessary in the
circumstances; and

 

(b)                                on request from Landlord, with reasonable
promptness, copies of all financial statements and copies of each Form 10-K,
Form 10-Q, Call Reports, proxy statement and registration statement (other
than preliminary proxy statements and Form S-8 registration statements),
or copies of any successor forms or statements substituted therefor, which
Tenant shall file with the SEC, the FDIC, the OCC, the OTS or any governmental
agency substituted to 

 

30

 

the
functions of such agency, as the case may be; provided that Landlord shall not
be entitled to any registration statement or any other financial information or
statements before it becomes effective or any other document filed with a
governmental agency until it is generally available to the public.

 

So long as Tenant is Bank
of America, N.A., and so long as all of the financial information requested in
Paragraphs 15(a) and (b) above is available to the general public (at
no cost, or if a cost shall be charged the same shall be reimbursed to Landlord
or Landlord’s mortgagee, as the case may be, promptly upon invoicing) at
websites maintained by either Bank of America, N.A., the SEC, the FDIC, the OCC
or the OCS, Tenant’s requirement to furnish such financial information to
Landlord shall be deemed satisfied.

 

16.                               RIGHT OF FIRST REFUSAL:

 

If at any time during the Term of this Lease, Landlord
shall receive a bona fide offer (a “Third Party Offer”) from a third
party (other than a purchaser making a bid or offer to purchase the Leased
Property at any sale incidental to the exercise of any remedy provided for in
any mortgage on the Leased Property) to purchase the Leased Property,
containing terms and conditions satisfactory to Landlord, then Landlord shall
notify Tenant of such Third Party Offer, including the identity of the
offeror.  If at the time of Landlord’s
receipt of the Third Party Offer no Event of Default has occurred hereunder and
is continuing, and provided that Tenant shall not have vacated the Leased
Property or subleased the entirety thereof, then for a period of (i) sixty
(60) days, if during the Initial Term, or (ii) thirty (30) days, if during
a Renewal Term, after Tenant’s receipt of Landlord’s notice, Tenant shall have
the exclusive right to accept Landlord’s offer to purchase Landlord’s interest
in the Leased Property upon the terms and conditions set forth in the Third
Party Offer.  Tenant shall exercise such
right of first refusal, if at all, by delivering its written purchase offer to
Landlord within said sixty (60) or thirty (30) day period, as the case may be,
following receipt of Landlord’s notice. 
Such purchase shall occur on the date that is at least forty-five (45)
days after Landlord’s receipt of such notice. 
On the date of such purchase Landlord shall convey and assign to Tenant,
or its designee, Landlord’s interest in the Leased Property or portion thereof
against payment of the sale price therefor, in accordance and upon compliance
with the terms and conditions of the Third Party Offer and this Lease, and
Tenant’s obligation to pay Rent, shall terminate with respect to the Leased
Property conveyed to Tenant.  If Tenant
fails to accept Landlord’s offer within such sixty (60) or thirty (30) day
period, as the case may be, then Landlord shall be free, subject to the
restrictions set forth in Paragraph (g) of Article 21 hereof, to sell
the Leased Property described in the Third Party Offer at a price not less than
the purchase price contained in the Third Party Offer for a period of nine (9) months
thereafter without offering such Leased Property to Tenant. If Landlord does
not convey its interest in such Leased Property within such nine (9) month
period or in the event of any material change in the terms of the Third Party
Offer, Tenant’s rights pursuant to this paragraph shall be reinstated.  The term “material change” as used in the
preceding sentence shall include a change of identity of a third party or its
assignee, to a bank which is a substantial competitor in Tenant’s market.  Any third party that purchases the Leased
Property pursuant to this Article 16 shall take the Leased Property subject
to the terms hereof, and such purchaser shall assume Landlord’s rights and
obligations under the Lease thereafter accruing, and this Lease shall remain in
full force and effect.  Landlord shall
cause any third party purchasing the Leased Property pursuant to this Article 16
to execute and deliver to Tenant a document 

 

31

 

confirming such third party’s assumption of Landlord’s
rights and obligations under this Lease thereafter accruing.

 

17.                               PURCHASE PROCEDURE:

 

(a)                                  In the event of the purchase of Landlord’s
interest in any Leased Property by Tenant pursuant to any provision of this
Lease, the terms and conditions of this Article 17 shall apply.

 

(b)                                 On the closing date fixed for the purchase of
Landlord’s interest in any Leased Property:

 

(i)                                   Tenant shall pay to Landlord, in lawful money of
the United States, at Landlord’s address hereinabove stated or at any other
place in the United States which Landlord may designate, the purchase price;
and

 

(ii)                                Landlord shall execute and deliver to Tenant a
limited warranty deed, assignment and/or such other instrument or instruments
as may be appropriate, which shall transfer Landlord’s interest in the Leased
Property being sold, subject to (A) Permitted Encumbrances (except, in the
case of a purchase by Tenant under Article 13 hereof, free of the lien of
any mortgage indebtedness incurred by Landlord), (B) all liens,
encumbrances, charges, exceptions and restrictions attaching to such Leased
Property created or caused by Tenant, and (C) all applicable laws, rules,
regulations, ordinances and governmental restrictions then in effect.  In the case of a purchase of Landlord’s
interest in any Leased Property by Tenant pursuant to Paragraph (c) of
Article 13 hereof, Landlord shall also pay to Tenant the Net Award, if
any.

 

(c)                                  Tenant
shall pay all charges incident to such transfer, including all recording fees,
reasonable attorneys’ fees and expenses, transfer taxes, title insurance
premiums and federal, state and local taxes, except for any net income or
profit taxes of Landlord, except in the case of a purchase by Tenant pursuant
to Article 16, in which case costs will be allocated between Landlord and
Tenant in the same manner as was provided for in the Third Party Offer.

 

(d)                                 Tenant shall pay to Landlord all Basic Rent and
Additional Rent due and payable only through the date Tenant purchases Landlord’s
interest in a Leased Property.

 

18.                              INTENTIONALLY OMITTED.

 

19.                              QUIET ENJOYMENT:

 

Upon due performance of
the covenants and agreements to be performed by Tenant under this Lease,
Landlord covenants that Tenant shall and may at all times peaceably and quietly
have, hold and enjoy the Leased Property during the Term of this Lease.
Notwithstanding the preceding sentence, Landlord, Landlord’s mortgagee, or
their respective agents may enter into and inspect the Leased Property at any
reasonable time during normal business hours, upon the giving of reasonable
notice, if they take precautions not to unreasonably inconvenience Tenant or

 

32

 

any persons occupying the
Leased Property in accordance with this Lease and are accompanied by an
employee or other representative of Tenant at all times during such entry and
inspection, or at any time in the event of an emergency. Notwithstanding the foregoing,
Tenant may exclude Landlord, Landlord’s mortgagee or their respective agents
from areas of the Leased Property designated as security areas by Tenant, for
example, vaults, modular vaults and automated teller machines.

 

20.          TERMINATION:

 

In the event of the
termination of this Lease as herein provided, the obligations and liabilities
of Landlord and Tenant, as the case may be, actual or contingent, under this
Lease which arose at or prior to such termination, and which remain unpaid or
unperformed, shall survive such termination.

 

21.          SUBLETTING; ASSIGNMENT:

 

(a)           Subleases Permitted.  Subject
to subparagraphs (d), (e) and (f) hereof and Article 5
hereof, Tenant may sublet the Leased Property or any portion or portions
thereof and retain any profits derived from such subleasing, provided that (i) no
Event of Default has occurred and is continuing, and (ii) each sublease
shall expressly be made subject to the terms of this Lease.

 

(b)           Assignments Permitted.  Subject
to subparagraphs (d), (e) and (f) hereof and Article 5
hereof, Tenant may assign its interest under this Lease, provided that
no Event of Default has occurred and is continuing and provided further that
such assignment shall expressly be made subject to the terms of this Lease.

 

(c)           Restriction on Term of Sublease or Assignment.  The term
of any subletting of the Leased Property or assignment of this Lease shall not
extend beyond the Term of this Lease. 
Any sublessee or assignee shall be permitted to use the Leased Property
for any lawful purpose, subject to the limitations set forth in Article 5
hereof.

 

(d)           Tenant’s Obligations Continue.  No
sublease or assignment shall affect or reduce any obligation of Tenant or right
of Landlord hereunder, and all obligations of Tenant hereunder shall continue
in full effect as the obligations of a principal and not of a guarantor or
surety, as though no subletting or assignment had been made. For the purposes
of this Lease generally and subparagraphs (a)(iii), (iv) and (v) of Article 23
hereof in particular, the term “Tenant” shall mean Bank of America, N.A., and
not its subtenants and assignees.

 

(e)           Conformed Copy of Sublease or Assignment.  For
any sublease or assignment from which Tenant receives more than Seventy-Five
Thousand and 00/100 Dollars ($75,000.00) in annual rents, Tenant shall, within
ten (10) days after the execution of any such sublease or assignment,
deliver to Landlord a conformed copy thereof (with acknowledgements) and a
conformed copy of any short-form lease or memorandum of lease suitable for
recording.

 

(f)            No Mortgages or Pledges. Neither this Lease nor the Term of this
Lease hereby demised shall be mortgaged or pledged by Tenant, nor shall Tenant
mortgage, pledge or 

 

33

 

assign the interest of
Tenant in and to any sublease of the Leased Property or any portion thereof or
the rental payable thereunder.  Any such
mortgage, assignment or pledge, and any sublease or assignment not permitted by
this Article 21, shall be void.

 

(g)           Transfers by Landlord.  Subject
to the terms of this Lease, Landlord may assign, convey, encumber or otherwise
transfer its estate, right, title and interest hereunder or in the Leased
Property or any part thereof, and upon execution and delivery of any such assignment,
conveyance or other transfer, Landlord shall be released from its obligations
hereunder.  Any such assignment,
conveyance or other transfer shall be subject to this Lease.  Landlord shall not assign, convey or transfer
its interest in the Leased Property subject (other than by way of mortgage) to
this Lease to (i) any saving bank, savings and loan association, bank,
bank holding company or Affiliate of any of the above or (ii) more than
three (3) separate transferees without the prior written consent of
Tenant.

 

Landlord shall, within
thirty (30) days after the execution of any such instrument of mortgage,
assignment, conveyance or transfer, deliver written notice thereof to Tenant.
Any failure of Landlord so to deliver a notice of such instrument shall not,
however, in any way impair or affect the validity thereof.

 

22.          ADVANCES BY LANDLORD:

 

If an Event of Default
has occurred and is continuing, and at any time if Tenant fails to maintain
insurance in accordance with Article 14 hereof, if Tenant shall fail to
make or perform any payment or act required by this Lease within any applicable
cure period, then Landlord may at its option make such payment or perform such
act for the account of Tenant, and Landlord shall not thereby be deemed to have
waived any default or released Tenant from any obligation hereunder.  All amounts so paid by Landlord and all
incidental costs and expenses (including reasonable attorneys’ fees and
expenses) incurred in connection with such payment or performance, together with
interest at the Applicable Rate from and including the date of the making of
such payment or of the incurring of such costs and expenses to and including
the date of repayment, shall be paid by Tenant to Landlord on demand.

 

23.          CONDITIONAL LIMITATIONS - EVENTS OF DEFAULT AND REMEDIES:

 

(a)            Events of Default.  Any of
the following occurrences or acts shall constitute an “Event of Default” under
this Lease:

 

(i)            if Tenant
shall default in making payment when due of any installment of Basic Rent or
Additional Rent, and such default shall continue for the longer of (A) ten
(10) days, or (B) five (5) days after a written notice of such
default has been delivered to Tenant; provided that Tenant shall not be
entitled to such notice more than twice during any given twelve (12) month
period; or

 

(ii)           if Tenant shall default in the due performance of
any other covenant, agreement, obligation or condition on the part of Tenant to
be performed hereunder, other than as set forth in clause (i) or
clause (vii) of this Paragraph (a), and if such default shall
continue for forty-five (45) days after 

 

34

 

written
notice from Landlord to Tenant specifying such default and demanding that the
same be cured (or, in the case of a default which cannot be cured with the
payment of money, or with due diligence be wholly cured within such
forty-five (45) day period, if Tenant shall fail to commence to cure the
same within said forty-five (45) day period, or, having promptly so
commenced to cure the same shall fail thereafter to prosecute the curing
thereof with all due diligence, it being intended that the time within which to
cure such a default shall be extended for such period as may be necessary to
complete the curing of the same in good faith and with due diligence; or

 

(iii)          if Tenant, or any corporation succeeding to
Tenant by merger, consolidation or acquisition of all or substantially all of
its assets, shall file a petition in bankruptcy or for reorganization or for an
arrangement pursuant to the Bankruptcy Act or under any similar federal or
state law now or hereafter in effect, or shall be adjudicated a bankrupt or
become insolvent or shall make an assignment for the benefit of its creditors,
or shall be unable to pay its debts generally as they become due, or shall be
dissolved, or shall suspend payment of its obligations, or shall take any
corporate action in furtherance of any of the foregoing; or

 

(iv)          if a petition or answer shall be filed proposing
the adjudication of Tenant or any corporation succeeding to Tenant by merger,
consolidation or acquisition of all or substantially all of its assets as a
bankrupt or its reorganization pursuant to the Bankruptcy Act or any similar
federal or state law, now or hereafter in effect, and (A) Tenant or its
successor corporation shall consent to the filing thereof, or (B) such
petition or answer shall not be discharged, or denied within ninety (90) days
after the filing thereof; or

 

(v)           if a receiver, trustee or liquidator (or other similar
official) shall be appointed for or take possession or charge of Tenant or any
corporation succeeding to Tenant by merger, consolidation or acquisition of all
or substantially all of its assets, or of all or substantially all of the
business or assets of Tenant or its successor corporation or of Tenant’s or its
successor corporation’s estate or interest in the Leased Property, and shall
not be discharged within ninety (90) days thereafter or if Tenant or its
successor corporation shall consent to or acquiesce in such appointment; or

 

(vi)          if the estate or interest of Tenant in the Leased
Property or any sublease thereof shall be levied upon or attached in any
proceeding and such process shall not be vacated or discharged within sixty
(60) days after such levy or attachment, unless Tenant shall be contesting such
levy or attachment in accordance with the requirements of Paragraph (d) of
Article 7 hereof; or

 

(vii)        if Tenant fails to pay Landlord the purchase
price of the Leased Property pursuant to Article 17 hereof or if Tenant
fails to maintain insurance in accordance with Article 14 hereof; or

 

35

 

(viii)        if, as of
the time when the same shall have been made, any material representation or
warranty of Tenant to Landlord or Landlord’s mortgagee set forth in any notice,
certificate, demand, request or other instrument delivered in connection with
or pursuant to this Lease shall prove to be incorrect or misleading in any
material respect to the material detriment of Landlord or any mortgagee of
Landlord’s interest in the Leased Property.

 

(b)            Landlord’s Right to Re-enter or Terminate.  This
Lease and the Term of this Lease and estate hereby granted are subject to the
limitation that whenever an Event of Default shall have occurred and not be
cured as provided herein, subject to Paragraph (i) of this Article 23
below, Landlord may, at Landlord’s option, elect to (i) re-enter the
Leased Property, without notice, and remove all persons and property therefrom,
either by summary proceedings or by any suitable action or proceeding at law,
or otherwise, without being liable to indictment, prosecution or damages
therefor, and may have, hold and enjoy the Leased Property, together with the
appurtenances thereto and the improvements thereon; and/or (ii) terminate
this Lease at any time by giving twenty (20) days’ notice in writing to
Tenant, electing to terminate this Lease, and the Term of this Lease shall
expire at the expiration of said last mentioned twenty (20) days’ notice
as fully and completely as if said date were the date herein originally fixed
for the expiration of the Term of this Lease hereby granted, and Tenant shall
thereupon quit and peacefully surrender the Leased Property to Landlord, with
all appurtenances thereto and all improvements thereon, without any payment
therefor by Landlord, and Landlord, upon the expiration of said last mentioned
twenty (20) days’ notice, or at any time thereafter, may re-enter the
Leased Property as provided in the preceding clause (i).

 

(c)          Payments by Tenant.  In case
of any such re-entry, termination and/or dispossession by summary proceedings
or otherwise as provided in the immediately preceding paragraph, (i) the
Basic Rent and Additional Rent shall be paid up to the time of such re-entry,
dispossession and/or termination, together with such expenses, including
reasonable attorneys’ fees and expenses, as Landlord shall incur in connection
with such re-entry, termination and/or dispossession by summary proceedings or
otherwise; (ii) Landlord may in good faith relet the Leased Property or
any part or parts thereof, either in the name of Landlord or otherwise, for a
term or terms which may, at Landlord’s option, be equal to or less than or
exceed the period which would otherwise have constituted the balance of the
Term of this Lease; (iii) Tenant shall also pay to Landlord all other
damages and expenses which Landlord shall have sustained by reason of the
breach of any provision of this Lease, including, without limitation, legal
expenses, reasonable attorneys’ fees, brokerage commissions and expenses
incurred in removing Tenant’s trade fixtures or other assets from the Leased
Property, repairing and putting the Leased Property and any buildings and
improvements thereon in good order and condition and in preparing the same for
reletting, which expenses shall be paid by Tenant as they are incurred by
Landlord; (iv) Tenant shall also pay to Landlord the amount by which the
Basic Rent reserved in this Lease exceeds the net amount, if any, of the rents
collected on account of the leases of the Leased Property for each month of the
period which would otherwise have constituted the Term of this Lease (excluding
unexercised extension options), which amounts shall be paid in monthly installments
by Tenant on the respective Rent Payment Dates specified therefor, and any suit
brought to collect said amounts for any month or months shall not prejudice in
any way the rights of Landlord to collect the deficiency in any subsequent
month by a similar action or proceeding; 

 

36

 

and/or
(v) at the option of Landlord exercised at any time, Landlord forthwith
shall be entitled to recover from Tenant as liquidated damages, in addition to
clause (i), but in lieu of and not in addition to any amount which would
thereafter have become payable under the preceding clauses (ii), (iii) and
(iv), whichever of the following sums Landlord shall elect:

 

(A)          an amount
equal to the excess, if any, of the Termination Value of a Leased Property
computed as of the Termination Date over the present value of the Fair Market
Rental Value of such Leased Property for the balance of the useful life of such
Leased Property, such Fair Market Rental Value to be determined by mutual
agreement of Landlord and Tenant, or if they cannot agree within ten (10) days
of such notice, by the appraisal procedure set forth in Paragraph (e) of Article 4
above, but without regard to any limitations imposed with respect to Maximum
Renewal Term Rent or Aggregate FMRV Rent;

 

(B)          if a Leased Property has
not been sold, an amount equal to the excess, if any, of the Termination Value
of such Leased Property, computed as of the Termination Date, over the Fair
Market Purchase Value of such Leased Property as of the Final Payment Date,
such Fair Market Purchase Value to be determined by mutual agreement of
Landlord and Tenant, or if they cannot agree within ten (10) days after
such notice, by the appraisal procedure set forth in Paragraph (e) of Article 4
above, but without regard to any limitations imposed with respect to Maximum
Renewal Term Rent or Aggregate FMRV Rent; or

 

(C)          the Termination Value of
a Leased Property computed as of the Termination Date, provided that upon
payment of such amount and the amount of any unpaid Rent referred to in clause (i) of
this Article 23(c)(C), Landlord shall assign and convey such Leased
Property to Tenant, without further consideration, in accordance with the terms
and provisions of Article 17 hereof.

 

Landlord, at Landlord’s
option, may make such alterations and/or decorations in the Leased Property as
Landlord, in Landlord’s sole judgment, considers advisable and necessary for
the purpose of reletting the Leased Property; and the making of such
alterations and/or decorations shall not operate or be construed to release
Tenant from liability hereunder as aforesaid.

 

(d)         Receipt of Money Not a Reinstatement; No
Accounting.  No receipts of moneys by Landlord from Tenant
after a termination of this Lease by Landlord shall reinstate, continue or
extend the Term of this Lease or affect any notice theretofore given to Tenant,
or operate as a waiver of the right of Landlord to enforce the payment of rent
then due or thereafter falling due, it being agreed that after the commencement
of suit for possession of the Leased Property, or after final order or judgment
for the possession of the Leased Property, Landlord may demand, receive and
collect any moneys due or thereafter falling due without in any manner
affecting such suit, order or judgment, all such moneys collected being deemed
payments on 

 

37

 

account
of the use and occupation of the Leased Property or, at the election of
Landlord, on account of Tenant’s liability hereunder.  Subject to subsection (c)(iv) of
this Article 23, Landlord shall have, receive and enjoy as Landlord’s sole
and absolute property, without right or duty to account therefor to Tenant, any
and all sums collected by Landlord as rent or otherwise upon reletting the
Leased Property after Landlord shall resume possession thereof as hereinbefore
provided, including, without limitation upon the generality of the foregoing,
any amounts by which the sum or sums so collected shall exceed the continuing
liability of Tenant hereunder.

 

(e)           Re-Entry Not a Termination.  The word
“re-enter,” as used in this Lease, is not and shall not be restricted to its
technical legal meaning, but is used in the broadest sense.  No such taking of possession of the Leased
Property by Landlord shall constitute an election to terminate the Term of this
Lease unless notice of such intention be given to Tenant or unless such
termination be decreed by a court having jurisdiction.

 

(f)            Enforcement Costs.  If an
action shall be brought for the enforcement of any provision of this Lease, in
which it shall be determined that Landlord or Tenant was in default, the
defaulting party shall pay to the non-defaulting party all costs and other
expenses which may become payable as a result thereof, including attorneys’
fees and expenses.  If either party
shall, without fault on its part, be made a party to any litigation commenced
against the other party (a “Litigating Party”), such Litigating Party
shall pay all costs and attorneys’ fees incurred or paid by the non-litigating
party in connection with such litigation.

 

(g)           Remedies Cumulative.  No right
or remedy herein conferred upon or reserved to Landlord is intended to be
exclusive of any other right or remedy, and every right and remedy shall be
cumulative and in addition to any other legal or equitable right or remedy
given hereunder, or at any time existing. 
The failure of Landlord to insist upon the strict performance of any
provision or to exercise any option, right, power or remedy contained in this
Lease shall not be construed as a waiver or a relinquishment thereof for the
future.  Receipt by Landlord of any Basic
Rent or Additional Rent payable hereunder with knowledge of the breach of any
provision contained in this Lease shall not constitute a waiver of such breach
(other than the prior failure to pay such Basic Rent or Additional Rent), and
no waiver by Landlord of any provision of this Lease shall be deemed to have
been made unless made under signature of an officer of Landlord.

 

(h)           Notice of Default to Landlord.  Tenant
shall give Landlord prompt notice of any default which occurs and is
continuing.

 

(i)             Limitations.  Notwithstanding the provisions
set forth in this Article 32, Landlord may not terminate this Lease
in its entirety unless Tenant shall have failed to pay one or more installments
of Rent when due and payable under this Lease, and such failure to pay
continues for a period of ten (10) days following Tenant’s receipt of
written notice thereof from Landlord, which notice shall state in all capital
letters (or other prominent display) that this Lease may be terminated if
Tenant fails to promptly pay all overdue Rent.

 

24.          NOTICES:

 

All notices and other
instruments given or delivered pursuant to this Lease shall be in writing and
sent by prepaid United States registered or certified mail, return receipt
requested, 

 

38

 

and the giving of such
notice or other communication shall be deemed to have been given (i) when
delivered by hand, (ii) on the earlier of receipt and three (3) Business
Days after being sent by first class registered or certified mail, postage
prepaid, return receipt requested, (iii) when sent by telegram or cable or
(iv) on the earlier of receipt and two (2) days after being sent by a
nationally recognized overnight courier. Copies of notices must be sent to all
of the parties listed below, together with a copy thereof sent by facsimile
transmission, if reasonable under the circumstances; provided that failure to
send a copy by facsimile transmission shall in no event cause any notice sent
in accordance with this Article 24 to be deemed improper. Landlord and
Tenant shall each have the right to specify, from time to time, as its address
for purposes of this Lease, any address and any addressee, in the continental
United States, upon giving fifteen (15) days’ written notice thereof to the
other party. The addresses of Landlord and Tenant for purposes of this Lease,
until notice has been given as above provided, shall be as follows:

 

	
  Landlord:

  	
   

  	
  First
  States Investors 4100A, LLC

  
	
   

  	
   

  	
  c/o First States Group,
  L.P.

  
	
   

  	
   

  	
  1725 The Fairway

  
	
   

  	
   

  	
  Jenkintown,
  Pennsylvania 19046

  
	
   

  	
   

  	
  Attn: Sonya A. Huffman,
  Senior Vice President — Operations

  
	
   

  	
   

  	
  Attn: Edward J. Matey
  Jr., Senior Vice President

  
	
   

  	
   

  	
  and General Counsel

  
	
   

  	
   

  	
  FAX: 215.887.9856

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Morgan,
  Lewis & Bockius LLP

  
	
   

  	
   

  	
  1701 Market Street

  
	
   

  	
   

  	
  Philadelphia,
  Pennsylvania 19103

  
	
   

  	
   

  	
  Attn: Eric L. Stern,
  Esquire

  
	
   

  	
   

  	
  FAX: 215.963.5001

  
	
   

  	
   

  	
   

  
	
  Tenant:

  	
   

  	
  Bank
  of America, N.A.

  
	
   

  	
   

  	
  525
  North Tryon

  
	
   

  	
   

  	
  3rd
  Floor — Corporate Real Estate Department

  
	
   

  	
   

  	
  NC1-023-03-03

  
	
   

  	
   

  	
  Charlotte,
  North Carolina 28255

  
	
   

  	
   

  	
  Attn:
  Property Services

  
	
   

  	
   

  	
  FAX:
  704.386.7339

  
	
   

  	
   

  	
   

  
	
  with
  a copy to:

  	
   

  	
  Bank
  of America, N.A.

  
	
   

  	
   

  	
  901
  Main Street, 68th Floor

  
	
   

  	
   

  	
  Dallas,
  Texas 75202-3714

  
	
   

  	
   

  	
  Attn:
  Michael F. Hord, Associate General Counsel

  
	
   

  	
   

  	
  FAX:
  214.209.0871

  

 

39

 

	
  with
  a copy to:

  	
   

  	
  Bank
  of America, N.A.

  
	
   

  	
   

  	
  525
  North Tryon

  
	
   

  	
   

  	
  4th
  Floor — Corporate Real Estate Department

  
	
   

  	
   

  	
  NC1-023-04-03

  
	
   

  	
   

  	
  Charlotte,
  North Carolina 28255

  
	
   

  	
   

  	
  Attn:
  James Mezzanotte

  
	
   

  	
   

  	
  FAX:
  704.365.6075

  
	
   

  	
   

  	
   

  
	
  and
  to:

  	
   

  	
  Trammell
  Crow Corporate Services, Inc.

  
	
   

  	
   

  	
  2850
  North Federal Highway

  
	
   

  	
   

  	
  Lighthouse
  Point, Florida 33064

  
	
   

  	
   

  	
  Attn:
  Chuck Dunn, Senior Vice President

  
	
   

  	
   

  	
  FAX:
  954.786.4405

  

 

25.          ESTOPPEL CERTIFICATES:

 

At the request of
either Landlord or Tenant, the other party will execute within fifteen (15)
days from the date of receipt of the request, from time to time, an estoppel
certificate substantially in the form attached hereto as Schedule
D or in such other form as may be reasonably requested by the
requesting party; provided that any request submitted by Landlord requesting an
estoppel certificate by Tenant shall be accompanied by an estoppel certificate
executed by Landlord indicating whether or not there are any then existing
defaults by Tenant under this Lease, and if so, describing said defaults.  Tenant and any third party certifying, to the
best of such party’s knowledge and belief, to the facts (if true) described in
such certificate.

 

26.          NO MERGER:

 

There
shall be no merger of this Lease or of any leasehold or subleasehold estate
hereby or thereby created with the fee or any other estate or interest or
ownership interest in the Leased Property or any part thereof by reason of the
fact that the same person, firm, corporation or other entity may acquire or own
or hold, directly or indirectly, (a) this Lease or any leasehold or
subleasehold estate created hereby or thereby or any interest in this Lease or
in any such leasehold or subleasehold estate and (b) the fee estate or
other estate or interest or ownership interest in the Leased Property or any
part thereof, and this Lease shall not be terminated for any cause except as
expressly provided herein and any instrument of transfer shall so provide.

 

27.          SURRENDER:

 

(a)          Upon the expiration or earlier termination of the Term of this Lease, or
surrender of the Leased Property in accordance with Paragraph (d) of Article 6
hereof, Tenant shall surrender the Leased Property to Landlord in the same
condition and suitable for the same use in which the Leased Property was
originally received from Landlord except as repaired, rebuilt or altered as
required or permitted by this Lease (and/or except for such Casualty damage as
Tenant shall not be required to repair or restore hereunder), and except for
ordinary wear and tear.  Tenant shall
remove from the Leased Property on or prior to such expiration or earlier
termination all of Tenant’s Equipment, except that agreed upon by Landlord and Tenant
in writing, which agreement shall be entered into at least thirty (30)
days prior to the expiration or 

 

40

 

earlier
termination of the Term of this Lease, and shall repair any damage caused by
such removal.  Property not so removed
following ten (10) days’ written notice from Landlord shall become the
property of Landlord, which may cause such property to be removed from the
Leased Property and disposed of, but the cost of any such removal and disposition
and of repairing any damage caused by such removal shall be borne by Tenant.

 

(b)           Except for surrender upon the expiration or earlier termination of the
Term of this Lease, or surrender of the Leased Property in accordance with
Paragraph (d) of Article 6 hereof, no surrender to Landlord of this
Lease or of the Leased Property shall be valid or effective unless agreed to
and accepted in writing by Landlord.

 

28.          SEPARABILITY:

 

Each
provision contained in this Lease shall be separate and independent and the
breach of any such provision by Landlord shall not discharge or relieve Tenant
from its obligation to perform each obligation of this Lease to be performed by
Tenant.  If any provision of this Lease
or the application thereof to any person or circumstance shall to any extent be
invalid and unenforceable, the remainder of this Lease, or the application of
such provision to persons or circumstances other than those as to which it is
invalid or unenforceable, shall not be affected thereby, and each provision of
this Lease shall be valid and shall be enforceable to the extent permitted by
law.

 

29.          BINDING EFFECT; MERGER, CONSOLIDATION AND DISPOSAL OF ASSETS:

 

(a)           Binding Effect.  All provisions contained in this
Lease shall be binding upon, inure to the benefit of and be enforceable by the
respective successors and permitted assigns and sublessees of Landlord and
Tenant to the same extent as if each such successor or assign or sublessee were
named as a party hereto.

 

(b)           Entire Agreement; Amendment.  This Lease
embodies the entire agreement between Landlord and Tenant relating to the
subject matter hereof and supersedes all prior agreements and understandings
relating to such subject matter.  Neither
this Lease nor any provision hereof may be amended, modified, waived,
discharged or terminated orally, but only as expressly provided herein or by an
instrument signed by Landlord and Tenant.

 

30.          SHOWING:

 

During
the one year period preceding the date on which the Term of this Lease shall
terminate or fully expire, Landlord may show the Leased Property or any part
thereof to prospective tenants or purchasers at such reasonable times during
normal business hours as Landlord may select upon reasonable prior notice to
Tenant.  The foregoing shall not apply to
Vacated Properties.

 

41

 

31.          NATURE OF LANDLORD’S OBLIGATIONS:

 

Anything
in this Lease to the contrary notwithstanding, no recourse or relief shall be
had under any rule of law or equity, statute or constitution or by any
enforcement of any assessments or penalties, or otherwise or based on or in
respect of this Lease (whether by breach of any obligation, monetary or
non-monetary), against Landlord (or any officer or partner of Landlord or any
predecessor or successor corporation (or other entity) of Landlord), it being
expressly understood that any obligations of Landlord under or relating to this
Lease are solely obligations payable out of the Leased Property and are
compensable solely therefrom.  It is
expressly understood that all such liability is and is being expressly waived
and released as a condition of and as a condition for the execution of this
Lease, and Tenant expressly waives and releases all such liability as a
condition of, and as consideration for, the execution of this Lease.

 

32.          SUBORDINATION:

 

(a)           Subject to Landlord’s
compliance with the requirements of Paragraph 32(b) below, this Lease is
and shall be subject and subordinate to all ground or underlying leases of the
Leased Property and to all mortgages that may now or hereafter be secured upon
such leases or the Leased Property and to any and all renewals, modifications,
consolidations, replacements and extensions thereof, provided that in
connection with the transfer of any interest of Landlord in the Leased Property
or any portion thereof, whether through foreclosure or otherwise, Tenant’s
possession and right to occupy the Leased Property or any portion thereof shall
not be disturbed so long as no Event of Default shall have occurred and be
continuing beyond any applicable cure period, this Lease shall continue in full
force and effect and Tenant shall attorn to such party and shall execute,
acknowledge and deliver any instrument that has for its purpose and effect the
confirmation of such attornment.

 

(b)           Landlord will provide
to Tenant for execution, within thirty (30) days following the recording of a
mortgage or deed of trust encumbering a Leased Property, a subordination,
non-disturbance and attornment agreement from Landlord’s mortgagee, substantially
in the form attached hereto as Schedule F
or in another form reasonably satisfactory to Tenant and Landlord’s mortgagee,
duly executed by Landlord and such Landlord’s mortgagee.  As a condition to the subordination of this
Lease to any future mortgage or deed of trust or ground lease, Landlord shall
obtain for the benefit of Tenant a subordination, non-disturbance and
attornment agreement from the holder of such mortgage or deed of trust or
ground lease.

 

33.          ARBITRATION:

 

(a)            Approval Procedure;
Dispute Resolution.  When the
approval or consent by either Landlord or Tenant is required hereunder and such
approval or consent may not be expressly withheld in such party’s sole
discretion, the parties shall proceed as follows:

 

(i)             The party requesting
the approval or consent (the “Requesting Party”) shall submit a written
request for approval or consent together with such information and supporting
documentation as is reasonably required to evaluate the request to the other
party (the “Responding Party”).

 

42

 

(ii)           Unless a specific time period for the
Responding Party’s response is provided for in this Lease (in which case, such
specific time period shall control), the Responding Party shall have ten (10) days
to (A) approve in writing the request as submitted, (B) approve in
writing the request with conditions, (C) deny in writing the request, or (D) respond
with a written schedule of additional information and/or documentation to be
submitted by the Requesting Party.  If
the Responding Party fails to timely provide any of the above responses, the
approval or consent shall be deemed to be given as requested.

 

(iii)                               If
the Responding Party requests additional information and/or documentation, then
within five (5) days after the Requesting Party delivers same to the
Responding Party, the Responding Party shall again respond as set forth in
clause (ii) above.  If the
Responding Party fails to timely respond as set forth in clause (ii) above,
the approval or consent shall be deemed to be given as requested.

 

(iv)                              All
approvals, denials, and requests for additional documentation or information,
when given, shall be in writing.

 

(b)                                 Dispute
Resolution.  The parties hereby agree
to attempt to resolve all disputes and controversies arising out of or in
connection with this Lease or its interpretation, performance or breach,
promptly, equitably and in a good faith manner, through discussions and
negotiations, but failing same, the parties shall proceed as follows:

 

(i)                                     Upon
the occurrence of any controversy or dispute arising out of or relating to this
Lease, or its interpretation, performance or breaches, which the parties have
not been able to resolve in the ordinary course through discussions and
negotiations within a period of thirty (30) days after the dispute or disagreement
arises, each party shall appoint a senior officer of its management, fully
authorized to settle the dispute or disagreement, to meet at a mutually agreed
time and place not later than twenty (20) days after such appointment, to
resolve such dispute or disagreement. 
Should a resolution of such dispute or disagreement not be obtained
within fifteen (15) days after a meeting of such senior officers for such
purpose, either party may then, by written notice to the other, submit the
controversy or dispute to arbitration in Charlotte, North Carolina (or in such
other city as Landlord and Tenant shall elect). 
The arbitration shall be conducted under the auspices of JAMS or its
successor.  The arbitration shall be
initiated by a party by sending notice (the “Arbitration Notice”) of a
demand to arbitrate by registered or certified mail to the other party, and to
JAMS.  The Arbitration Notice shall
contain a description of the subject matter of the arbitration, the dispute
with respect thereto, the amount involved, if any, and the remedy or
determination sought.  If the dispute or
disagreement involves a Binding ADR Dispute, Landlord and Tenant shall submit
the matter to binding arbitration.  If
the dispute or disagreement involves a Major Dispute the parties may, but shall
not be required to submit the matter to non-binding arbitration.

 

(ii)                                  If
the dispute or controversy involves the granting, withholding or conditioning
of consent or approval of a matter described in Article 12 (Alterations)
(an “Approval Matter”) or if the dispute or controversy not involving an
Approval Matter involves a total cost to either party of One Million Dollars
($1,000,000.00) or less (a “Binding ADR Dispute”), and if the parties
shall be unsuccessful in their efforts to negotiate a mutually satisfactory
resolution of their dispute or disagreement, the parties shall submit the
matter to 

 

43

 

binding arbitration, and
JAMS shall provide to the parties a list of three (3) arbitrators, and
each party may strike one arbitrator from such list.  The remaining arbitrator shall serve as the
arbitrator for the dispute.  The
arbitrator so selected shall furnish Landlord and Tenant with a written
decision within thirty (30) days after his or her selection.  The parties agree to arbitrate any Binding
ADR Dispute pursuant to JAMS’ Streamlined Arbitration Rules as amended
from time to time, and as modified to the extent practicable to give effect to
the agreement of the parties as stated above in this Article 33(b)(ii).  Binding ADR Disputes shall not be conducted
in person unless either Landlord or Tenant shall request an in-person
arbitration.  The decision of the
arbitrator in a Binding Dispute shall be final and shall be binding upon the
parties, and judgment on the award rendered by the arbitrator may be entered in
any court having jurisdiction thereof.

 

(iii)                               If
the dispute or controversy not involving an Approval Matter involves more than
a total cost to either party of more than One Million Dollars ($1,000,000.00)
under this Lease (“Major Dispute”), and if the parties elect to
arbitrate, then JAMS shall provide a list of six (6) available arbitrators
from which each party shall select one (1) arbitrator, and a third
arbitrator shall be selected by the two (2) arbitrators so selected.  The third arbitrator shall be a neutral
arbitrator who has not acted for either party (or its Affiliate) within the
five (5) years preceding initiation of the arbitration.  The arbitrators, so selected, shall schedule
the arbitration within sixty (60) days following the selection of the third
arbitrator, and shall render their decision within sixty (60) days after the
arbitration is concluded.  If the parties
agree to arbitrate any Major Dispute, they shall do so pursuant to JAMS’
Comprehensive Arbitration Rules, as amended from time to time, and as modified
to the extent practicable to give effect to the agreement of the parties as
stated above in this Article 33(b)(iii). 
In the instance of a Major Dispute, (A) the decision of the
arbitrators shall not be final or binding, (B) either party shall have the
right to file suit de  novo in a court of competent jurisdiction,
and (C) any and all statements, admissions, or other representations made
during the arbitration by either party shall be deemed privileged, confidential
and inadmissible for any and all purposes in any such subsequent litigation.

 

(iv)                              Notwithstanding
the foregoing, this Article 33 shall not apply to any disputes,
controversies or breaches relating solely to the non-payment of Rent or, unless
agreed to by the parties, a Major Dispute.

 

(c)                                  Conduct
of the Arbitration.  Arbitration
proceedings hereunder shall be subject to the following additional provisions:

 

(i)                                     The
hearing shall be conducted on a confidential basis without continuance or
adjournment;

 

(ii)                                  Any
offer made or the details of any negotiation of the dispute subject to
arbitration prior to arbitration shall not be admissible;

 

(iii)                               Each
party shall be entitled to all rights and privileges granted by the arbitrators
to the other party;

 

44

 

(iv)                              In
the arbitration of any Major Dispute, each party shall be entitled to compel
the attendance of witnesses or production of documents, and for this purpose,
the arbitrators shall have the power to issue subpoenas in accordance with the
law of the State of North Carolina;

 

(v)                                 In
the arbitration of any Major Dispute, each party shall have the right (upon
leave of the arbitrators) to take depositions and obtain other discovery of the
scope and in the manner which the arbitrators deem reasonably necessary to the
preparation and presentation of the party’s case;

 

(vi)                              The
arbitrators shall have the power to impose on any party such terms, conditions,
consequences, liabilities, sanctions and penalties as the deem necessary or
appropriate (which shall be conclusive, final and enforceable as the award on
the merits) to compel or induce compliance with discovery and the appearance
of, or production of documents in the custody or, any officer, director, agent
or employee of a party any Affiliate of such party;

 

(vii)                           Arbitrators
may not award indirect, consequential or punitive damages or issue injunctive
relief, and shall have no power to deviate from the provisions of this Lease;
and

 

(viii)                        Neither
party shall be in default under this Lease with respect to any provision hereof
during the time period commencing as of the initial notice of desire to
arbitrate and ending on the date of resolution by the arbitrators in the case
of binding arbitration and ending on the date of a final, unappealable decision
of the court in all other circumstances; provided that during said period of
arbitration and/or litigation each party shall continue to perform all duties
and obligations required to be performed by such party under this Lease and,
with respect to the issue under dispute resolution, shall maintain the status
quo.

 

(d)                                 Alternative
Means of Arbitration with AAA.  In
the event that JAMS or any successor shall no longer exist or if JAMS or any
successor fails to refuses to, or is legally precluded from, accepting
submission of such dispute, then the dispute shall be resolved by binding
arbitration before the American Arbitration Association (“AAA”) under
the AAA’s commercial arbitration rules then in effect.

 

(e)                                  Mediation;
Litigation.  Unless the parties
mutually agree to arbitrate a Major Dispute, prior to either party commencing
litigation, the parties shall attempt to mediate such dispute.  Accordingly, except as provided in Article 33(a)(iv),
no civil action with respect to any dispute or disagreement arising out of or
relating to this Lease shall be commenced until the matter has been submitted
to JAMS, or its successor, for mediation. 
Either party may commence mediation by providing to JAMS and the other
party a written request for mediation, setting forth the subject of the dispute
and the relief requested.  The parties
shall cooperate with JAMS and with one another in selecting a mediator from
JAMS’ panel of mediators, and in scheduling the mediation proceedings.  The parties agree that they will participate
in the mediation in good faith, and that they will share equally in its
costs.  All offers, promises, conduct and
statements, whether oral or written, made in the course of the mediation by any
of the parties, their agents, employees, experts and attorneys, and by the
mediator and any JAMS employees, are confidential, privileged and inadmissible
for any purpose, including impeachment, in any 

 

45

 

litigation or other
proceeding involving the parties; provided that evidence that is otherwise
admissible or discoverable shall not be rendered inadmissible or
non-discoverable as a result of its use in the mediation.  Either party may seek equitable relief prior
to the mediation to preserve the status quo pending the completion of that
process.  Except for such an action to
obtain equitable relief, neither party may commence a civil action with respect
to the matters submitted to mediation until after the completion of the initial
mediation session, or forty-five (45) days after the date of filing the written
request for mediation, whichever occurs first. 
Mediation may continue after the commencement of a civil action, if the
parties so desire.  The provisions of
this clause may be enforced by any court of competent jurisdiction, and the
prevailing party shall be entitled to an award of all costs, fees and expenses,
including attorneys’ fees, to be paid by the party against whom enforcement is
ordered.

 

34.                               GRANTING OF EASEMENTS, ETC.:

 

If no Event of Default
hereunder has occurred and is continuing, Landlord will join with Tenant, from
time to time at the request of Tenant (and at Tenant’s sole cost and expense),
and upon not less than forty-five (45) days prior written notice, with
respect to their interests in the Leased Property to (i) sell, assign,
convey or otherwise transfer an interest in any Leased Property to any person
legally empowered to take such interest under the power of eminent domain, (ii) grant,
in the ordinary course of business, easements, licenses, rights of way and
other rights and privileges in the nature of easements, (iii) release, in
the ordinary course of business, existing easements and appurtenances which
benefit any Leased Property, (iv) dedicate or transfer unimproved portions
of any Leased Property for road, highway or other public purposes, (v) execute
petitions to have any Leased Property annexed to any municipal corporation or
utility district, (vi) execute amendments to any covenants and
restrictions affecting any Leased Property and (vii) execute and deliver
any instrument, in form and substance reasonably acceptable to Landlord and
Landlord’s mortgagee, necessary or appropriate to make or confirm such grants
or releases to any person, with or without consideration, but only if Landlord
shall have received (x) a certificate of an authorized officer of Tenant
stating that such grant or release was granted in the ordinary course of Tenant’s
business, does not interfere with and is not detrimental to the conduct of
business on the Leased Property and does not materially impair the usefulness
of the Leased Property or materially impair the fair market value of the Leased
Property or materially impair Landlord’s interest in the Leased Property, (y) a
certificate stating the consideration, if any, being paid for said sale grant,
easement, license, release, dedication, transfer, right of way, petition,
amendment or other such instruments described in this Article 34, is in
the opinion of Tenant fair and adequate; and (z) a duly authorized and
binding undertaking of Tenant, in form and substance satisfactory to Landlord
and Landlord’s mortgagee, to remain obligated under this Lease and under any
instrument executed by Tenant consenting to the assignment of Landlord’s
interest in this Lease as security for indebtedness, as though such easement,
license, right-of-way or other right or privilege has not been granted or
released, and to perform all obligations of the grantor or party effecting the
release under such instrument of grant or release during the Term of this
Lease. Notwithstanding anything herein to the contrary, Tenant’s obligation to
pay the reasonable attorneys’ fees for each of Landlord and Landlord’s
mortgagee in connection with the execution and delivery of any easement or
other instrument pursuant to this Article 34 shall not exceed $5,000 for
each of Landlord’s and Landlord’s mortgagee’s counsel in any single request by
Tenant for one (1) or more related easements or other instruments.
Notwithstanding anything herein to the contrary, 

 

46

 

Landlord and
Landlord’s mortgagee shall have a period of thirty (30) days to review the
instruments and the materials requested under this Article 34.  If Landlord or Landlord’s mortgagee shall
fail to execute any such deeds, easements, releases or such other instruments
as may be specifically requested by Tenant in such thirty (30) day period, then
Tenant may deliver to Landlord and Landlord’s mortgagee further notice
requesting the delivery of said documents. 
Tenant’s notice shall specify in capital letters and bold face type that
if Landlord or Landlord’s mortgagee shall fail to return the requested documents
within ten (10) days, or shall fail to specify what corrections need be
made to such documents or why, specifically, Landlord or Landlord’s mortgagee
objects to the delivery of such documents, then Tenant intends to deliver such
instruments to Landlord’s or Landlord’s mortgagee attorney-in-fact.  Subject to the foregoing provision, in the
event Landlord or Landlord’s mortgagee fail to deliver any such deeds,
easements, releases or other instruments within the thirty (30) day period
required above, subject to the additional ten (10) day notice required
above, then in such event, Tenant is hereby authorized to act as the
attorney-in-fact for Landlord and Landlord’s mortgagee to execute and deliver
on behalf of Landlord and Landlord’s mortgagee any all deeds, easements,
releases and other instruments required; provided that no instrument executed
by Tenant as attorney-in-fact shall contain any covenants other than quitclaim
covenants.  For purposes of this Article 34,
commencing on August 31, 2004, and on and as of each August 31
thereafter during the Term of this Lease, the limitations on attorneys’ fees
for Landlord and Landlord’s mortgagee set forth in this Article 34 shall
be calculated as the amount equal to the product derived by multiplying $5,000
by one plus the percentage by which the CPI for such calendar year exceeds the
Base Price Index.  In the event the
information necessary to calculate this amount shall not have been published in
sufficient time to permit such calculation to be made on or before August 31
during any year, the limitation shall be calculated by using the CPI for the
latest month for which it has been published. 
After publication of the relevant information, Landlord and Tenant shall
make appropriate adjustment of the limitation. 
In no event shall the limitation on attorneys’ fees of $5,000 be reduced
as a result of any decrease in the CPI.

 

35.                               WAIVER OF TRIAL BY JURY

 

To
the extent permitted by law Landlord and Tenant hereby waive trial by jury in
any litigation brought by either of the parties hereto against the other on any
matter arising out of or in any way connected with this Lease or the Leased
Property or the Improvements thereto.

 

36.                               RECORDING OF LEASE

 

Landlord
and Tenant will execute, acknowledge, deliver and cause to be recorded or filed
in the manner and place required by any present or future law a memorandum of
this Lease, or, if required by law, this Lease, and all other instruments,
including, without limitation, financing statements, continuation statements,
releases and instruments of similar character, which shall be reasonably
requested by Landlord or Tenant as being necessary or appropriate in order to
protect their respective interests in the Leased Property or to publish notice
of or to create, maintain and protect or terminate or release the lien and
security interest intended to be created by any assignment of Landlord’s
interest in this Lease (and the interest of Landlord’s mortgagee in this Lease
) or any mortgage upon, and the interest of Landlord’s mortgagee in, the Leased
Property.  If either Landlord or Tenant
shall fail to comply with this paragraph, Tenant or Landlord, as the case may
be, shall be and is hereby irrevocably appointed the agent and attorney-in-fact
of 

 

47

 

Landlord
or Tenant, as the case may be, to comply therewith, but this sentence shall not
prevent any default in the observance of this Article 36 by the Tenant
from constituting an Event of Default hereunder.

 

37.                               MISCELLANEOUS:

 

(a)                                  General.  No term or provision hereof may be amended,
changed, waived, discharged or terminated orally, but only by an instrument
signed by the party against whom enforcement thereof is sought. Landlord may
not enter into any amendment, modification or supplement to any
trust-indenture, mortgage or other document with any Landlord’s mortgagee which
has a material and adverse effect on the right or obligations of Tenant
hereunder without the prior written consent of Tenant, and any such amendment,
modification or supplement executed without Tenant’s prior written consent
shall have no binding effect on Tenant hereunder. No failure, delay,
forbearance or indulgence on the part of any party in exercising any right,
power or privilege hereunder shall operate as a waiver thereof, or as an
acquiescence in any breach, nor shall any single or partial exercise of any
right, power or remedy hereunder preclude any other or further exercise thereof
or the exercise of any other right, power or privilege. Any provision of this
Lease which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate
or render unenforceable such provision in any other jurisdiction.  This Lease and the rights and obligations in
respect hereof shall be governed by, and construed and interpreted in
accordance with, the laws of the Commonwealth of Pennsylvania, except where the
laws of the State where the Leased Property is located require such State’s own
law to apply.  All headings are for
reference only and shall not be considered as part of this Lease.

 

(b)                                 Attorneys’
Fees.  Notwithstanding anything
herein to the contrary, the obligation of the non-prevailing party to reimburse
the prevailing party for or to pay reasonable attorneys’ fees shall mean
reasonable attorneys’ fees actually incurred without reference to or giving
effect to N.C.G.S. Section 6-21.2(2) or any similar provision of the
law of the state in which the Leased Property is located.

 

(c)                                  Counterparts.  This Lease may be executed in
any number of counterparts, each of which shall be an original, but all of which
together shall constitute one and the same instrument.

 

38.                               TERMINATION OF ORIGINAL LEASE:

 

The Original Lease as it pertains to the Leased
Property is hereby terminated effective as of the day immediately preceding the
Commencement Date of this Lease.

 

48

 

IN WITNESS WHEREOF, Landlord and Tenant hereto have each caused this
Lease to be duly executed, under seal, and delivered in their respective names
and behalfs, as of the day and year first above written.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  FIRST STATES INVESTORS
  4100A, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:
  Sonya A. Huffman

  
	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:
  Michael A. Hord

  
	
   

  	
  Title:
  Associate General Counsel

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00155-of-00352.parquet"}]]