Document:

Exhibit 10.3

 

AGREEMENT OF SALE AND LEASEBACK

 

THIS AGREEMENT OF SALE AND LEASEBACK (this “Agreement”) made as of November 4, 2010 (the “Effective Date”), by and between THE GREAT ATLANTIC & PACIFIC TEA COMPANY, INC., a Maryland corporation (“A&P”), PATHMARK STORES, INC., a Delaware corporation (“Pathmark”), PLAINBRIDGE LLC, a Delaware limited liability company (“Plainbridge”), UPPER DARBY STUART, LLC, a Delaware limited liability company (“UP STUART”), and LANCASTER PIKE STUART, LLC, a Delaware limited liability company (“LP STUART”), each having an address at Two Paragon Drive, Montvale, New Jersey 07645 (collectively referred to herein as “Seller”), and WE APP I LLC, a Delaware limited liability company, having an address at c/o Winstanley Enterprises LLC, 150 Baker Avenue Extension, Suite 303, Concord, Massachusetts 07142 (“Purchaser”).

 

W I T N E S S E T H:

 

WHEREAS, subject to the terms and conditions set forth below, Seller and Purchaser desire to effectuate a “sale-leaseback” transaction;

 

WHEREAS, pursuant to the transaction, Seller agrees to sell, and Purchaser agrees to purchase the “Properties” (defined below); and

 

WHEREAS, simultaneous with the sale of the Properties, Seller, as “Tenant,” and Purchaser, as “Landlord” will enter into a lease for all or a portion of each of the Properties, all on the terms and conditions set forth below.

 

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

 

ARTICLE 1 — DEFINITIONS

 

1.1.                                 Definitions.

 

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

 

“A&P” is defined in the Preamble to this Agreement.

 

“Applicable Law” means any laws, statutes, ordinances, codes, regulations, rules, orders, or other requirements of any local, state or federal authority or any other governmental entity or agency having jurisdiction over the Properties or any part thereof, including, without limitation, any of the foregoing affecting zoning, subdivision, building, health, traffic, environmental, Hazardous Materials or flood control.

 

1

 

“Business Day” means a day, other than Saturday or Sunday, on which commercial banks in the State of New Jersey are open for the general transaction of business.

 

“Closing” means (a) the transfer of the Properties from Seller to Purchaser; (b) the Seller and Purchaser’s execution and delivery of the Supermarket Leases, (c) the payment of the Purchase Price by Purchaser to Seller, and (d) the delivery and performance of the other items and obligations to be delivered or performed hereunder at the time the Properties are transferred and the Purchase Price is paid.

 

“Closing Date” means November 8, 2010, subject to extension only as expressly provided in this Agreement.

 

“Deeds” is defined in Section 3.4(a).

 

“Deposit” means the sum of Fourteen Million Dollars ($14,000,000.00), and any interest or other earnings thereon.

 

“Escrow Agent” means the national office of Chicago Title Insurance Company located at 265 Franklin Street, Boston, Massachusetts 02110.

 

“Environmental Report” means those certain Phase I Environmental Reports on the Properties prepared by Whitestone Associates set forth on Exhibit I.

 

“Environmental Law” means any Applicable Law and binding administrative or judicial interpretations thereof, relating directly to the exposure to, or the use, storage, recycling, treatment, generation, transportation, processing, handling, labeling, release or disposal of Hazardous Materials.

 

“Estoppel Requirement” is defined in Section 11.1(a).

 

“Existing Leases Assignment” is defined in Section 3.4(d).

 

“Existing Leases” means the existing leases on the Shopping Center Property set forth on the Rent Roll. The Ground Leases shall not be considered Existing Leases. At Closing, Purchaser shall purchase the Properties subject to the Existing Leases.

 

“Existing Tenant Estoppels” means the estoppel certificates from the Existing Tenants required pursuant to Section 11(a).

 

“Existing Tenants” means the tenants under the Existing Leases.

 

“Gas Station Lease” means that certain lease between Pathmark and the Gas Station Tenant dated October 24, 1975 for certain space on the Lawnside Property.

 

“Gas Station Tenant” means Leemilt’s Petroleum.

 

“Ground Landlord Estoppels” is defined in Section 11.1(b).

 

“Ground Landlords” means the landlords under the Ground Leases.

 

“Ground Lease Assignments” is defined in Section 3.4(e).

 

“Ground Leases” means the ground leases and basement lease applicable to the Properties set forth on Exhibit C-2 attached hereto. At Closing, Seller shall assign and Purchaser shall assume the tenant’s interest under each of the Ground Leases.

 

2

 

“Hazardous Materials” means all materials (including without limitation wastes, pollutants and contaminants) in such quantity or concentration as to be subject to regulation pursuant to Environmental Law, including oils, petroleum, and petroleum products.

 

“HFF” is defined in Section 12.2(a).

 

“Improvements” means all buildings and other improvements located on the Parcels and all fixtures attached or affixed, actually or constructively, to the Parcels.

 

“Intangible Property” means all appurtenant easements, rights, and privileges related to the Parcels and the Improvements (including, without limitation, all approvals and development rights).

 

“Knowledge” means the actual knowledge of the present senior employees of the Corporate Real Estate Department of the Seller, without any independent inquiry other than the reading of this Agreement.

 

“Lawnside Property” means the Property located at 130 White Horse Pike, Lawnside, New Jersey.

 

“Material Adverse Effect” means an effect that is materially adverse to the physical or financial condition of the Properties, but shall exclude any effect resulting from (i) any occurrence or condition generally affecting the retail grocery industry; (ii) Acts of God and other force majeure events; (iii) the public announcement of this Agreement or the transactions contemplated hereby; and (iv) the acts or omissions of Purchaser or any of its Affiliates.

 

“Nemeroff” is defined in Section 12.2(a).

 

“Parcels” means the six (6) parcels of land described on Exhibits A-1 through A-6 attached hereto (including, without limitation, all air rights and subsurface rights).

 

“Partial Closing” means a Closing permitted to Purchaser under the provisions of this Agreement with respect to less than all of the Properties. In the case of a Partial Closing all of the provisions of this Agreement shall apply with respect to the Properties subject to such Partial Closing and the Purchase Price in connection with such Partial Closing shall be calculated based on the Purchase Price allocated to the Properties subject to such Partial Closing as set forth on Exhibit A (and the Deposit shall be applied to such Properties on a prorated basis based on such allocation). If the matters affecting the Property or Properties which have been removed from an initial Partial Closing (or Partial Closings) are subsequently satisfied such that pursuant to this Agreement a Partial Closing is to occur with respect to such Property or Properties, then all provisions of this Agreement shall apply with respect to such Property or Properties at the subsequent Partial Closing and the Purchase Price in connection with such subsequent Partial Closing shall be calculated based on the Purchase Price allocated to the Property or Properties subject to such subsequent Partial Closing as set forth on Exhibit A.

 

“Permits” means all licenses permits, consents, authorizations, and approvals with respect to the use, occupancy, possession and operation of the Parcels and Improvements now or hereafter issued, approved or granted by any governmental entity in connection with the Parcels and the Improvements.

 

“Permitted Encumbrances” is defined in Section 2.1.

 

3

 

“Properties” means all of the Parcels, together with all of Seller’s right, title or interest in the Improvements, Intangible Properties and the Permits related to the Parcels, the Ground Leases and the Existing Leases and any modifications or new leases made in accordance with the terms of this Agreement. As the context so requires in this Agreement, a “Property” shall mean any one of the six (6) Parcels and any Improvements, Intangible Properties, Permits, Ground Leases and, with respect to the Shopping Center Property, the Existing Leases related thereto.

 

“Purchase Price” means the sum of Eighty Nine Million Eight Hundred Thirty Thousand Fifteen Dollars ($89,830,015.00). The Purchase Price shall be allocated among the Properties in accordance with Exhibit A and is subject to adjustment pursuant to the provisions of this Agreement.

 

“Purchaser” is defined in the Preamble to this Agreement.

 

“Rent Roll” means the rent roll regarding the Existing Leases set forth on Exhibit C-1  attached hereto.

 

“Seller” is defined in the Preamble to this Agreement. “Settlement Statement” is defined in Section 3.3.

 

“Shopping Center Property” means the Property located at 9210 Atlantic Avenue, Queens (Ozone Park), New York.

 

“Stand Alone Properties” means the Properties other than the Shopping Center Property.

 

“Supermarket Leases” means the six (6) supermarket leases to be entered into at Closing between Seller, as “Tenant”, and Purchaser, as “Landlord”. For the Shopping Center Property, the Supermarket Lease for that Property will have a Demised Premises consisting of the current supermarket space on the Property; for the Stand Alone Properties, the Demised Premises will be the entire Parcel. The Supermarket Leases will be substantially in the forms attached hereto as Exhibit B-1 through B-6 (including the guarantees attached thereto) and as described in Section 9.1 below. Purchaser acknowledges and agrees that Seller may designate either Pathmark or A&P to serve as the tenants under the Supermarket Leases so long as A&P is either the tenant or guarantor under all of the Supermarket Leases.

 

“Surveys” means the ALTA/ACSM surveys of the Properties listed on the attached Exhibit C-3.

 

“Title Conditions” means the “Schedule B” conditions and requirements and other title matters to be satisfied by Seller at or prior to the Closing as set forth on the attached Exhibit C4.

 

“Unlimited Representations” means the representations and warranties of Seller set forth in Sections 7.1(g) and 7.1(q).

 

“Utility Deposits” is defined in Section 3.3(c).

 

4

 

ARTICLE 2 - SALE OF THE PROPERTY.

 

2.1.          Properties to be Sold and Conveyed.

 

Subject to the terms, conditions and covenants of this Agreement, Seller agrees to sell, convey and transfer good and marketable fee title (except with respect to the portions of the Properties subject to the Ground Leases, for which leasehold title shall be conveyed) and Purchaser agrees to purchase and accept all of Seller’s right, title and interest in and to the Properties. The Properties shall be sold subject only to (a) such easements, covenants, restrictions, agreements, encumbrances and other matters of title of as enumerated on Exhibit C5 attached hereto, (b) all present and future zoning and other governmental laws and regulations, (c) all facts revealed by the Surveys, and (d) the Existing Leases (the items enumerated in (a), (b), (c) and (d) are hereinafter collectively referred to as the “Permitted Encumbrances”). Further, in regard to the Lawnside Property, Seller will retain, and shall not assign, the Gas Station Lease (that is, following the Closing the Gas Station Lease shall be a sublease between the tenant under the applicable Supermarket Lease and the Gas Station Tenant).

 

2.2.          Payment of the Purchase Price.

 

The Purchase Price shall be paid as follows:

 

(a)                                       The Deposit, to be paid by certified check, bank check or wire transfer by Purchaser to Escrow Agent on the Effective Date. The Deposit shall be held in a trust account in accordance with Article 10. The Deposit shall be non-refundable to Purchaser, except as expressly set forth in this Agreement, but shall be credited against the Purchase Price at Closing; and

 

(b)                                      The Purchase Price, at Closing, by wire transfer to a bank and account designated by Seller, decreased by the Deposit, and increased or decreased by the closing adjustments described in Article 3 below.

 

ARTICLE 3 - CLOSING

 

3.1.          Closing Date.

 

The parties agree that the Closing shall take place on the Closing Date. TIME IS OF THE ESSENCE of this Agreement and all covenants and deadlines hereunder.

 

3.2.         Closing Place.

 

The Closing shall take place by escrow through the Escrow Agent or Purchaser’s title insurance company.

 

3.3.         Apportionments.

 

At the Closing, the following items shall be apportioned for the Properties as of 11:59 p.m. on the day preceding the Closing Date (provided, however, that no such items shall be apportioned with respect to the Stand Alone Properties except for the Annual Fixed Rent to be paid under the applicable Supermarket Leases):

 

(a) Taxes, water, sewer and any other cost or expense customarily apportioned in a shopping center closing will be apportioned on the basis of a 30-day month and on the basis of the accrual method of accounting. All such items attributable to the period prior

 

5

 

to the Closing Date shall be credited to Seller, and all such items attributable to the period commencing on the Closing Date shall be credited to Purchaser;

 

(b)                                      All real estate taxes assessed against the Shopping Center Property shall be prorated between Seller and Purchaser on an accrual basis based upon the actual current tax bills. If the most recent tax bills received by Seller before the Closing Date are not the actual current tax bills, then Seller and Purchaser shall initially prorate the taxes at closing by applying 100% of the tax rate for the period covered by the most current available tax bill to the latest assessed valuation, and shall reprorate the taxes retroactively when the actual current tax bill is then available. All real estate taxes accruing before the Closing Date shall be the obligation of Seller and all such taxes accruing on and after the Closing date shall be the obligation of Purchaser;

 

(c)                                       The actual or estimated charges for utilities accrued and payable by Seller shall be prorated between Seller and Purchaser, provided Purchaser is required by law or elects to assume Seller’s utility accounts. Deposits for utilities (the “Utility Deposits”), plus any interest on the Utility Deposits to which Seller are or will be entitled that are held by the provider of the utilities and which are freely transferable to Purchaser, shall at the election of the Purchaser be assigned by Seller to Purchaser and Purchaser shall pay Seller the full amount thereof at Closing. Seller shall retain the right to obtain a refund of any Utility Deposits which are not required to be assigned to Purchaser, and Purchaser will cooperate with Seller as reasonably requested in obtaining any refund. With respect to water, sewer, electric and gas charges, Seller shall make reasonable efforts to obtain a reading of the meter or other consumption measuring device as of the Closing Date. If the Seller is unable to obtain such a reading, Seller shall furnish a reading as of a date not more than thirty (30) days prior to the Closing Date and the unknown charges shall be apportioned on the basis of an estimate computed by utilizing such reading and the most recent bill from the utility provider;

 

(d)                                      Rent and all other amounts due under the Ground Leases shall be prorated between Seller and Purchaser as of the Closing Date based on the actual number of days in the month during which the Closing Date occurs. Seller shall be entitled to a credit for any pre-paid rent under any of the Ground Leases with respect to the month in which the Closing Date occurs;

 

(e)                                       The prorated Fixed Annual Rent under the Supermarket Leases shall be credited to Purchaser as provided in Section 9.1 below; and

 

(f) The rent and any security deposit under the Existing Leases shall be apportioned/credited as provided in Section 9.2 below. Any prepaid rents, rent concessions, tenant improvement allowances or deposits on account of expenses relating in whole or part to any period after the Closing shall be credited to Purchaser at Closing.

 

At Closing, the parties shall jointly execute a settlement statement (the “Settlement Statement”) setting forth all adjustments and the basis for same. Seller shall deliver to Purchaser a draft of the Settlement Statement with appropriate back up information at least two (2) Business Days prior to the Closing Date. All apportionments shall be subject to reconciliation for a period of one (1) year following Closing.

 

6

 

3.4.                                 Seller’s Deliveries.

 

At the Closing, Seller shall, on compliance by Purchaser with the obligations of Purchaser to be complied with under this Agreement prior to or at the Closing, deliver to Purchaser each of the following:

 

(a)                                       Deeds in the forms attached as Exhibit D-1 through D-3, duly executed by Seller and in recordable form, to convey to Purchaser title to the Properties, subject only to the Permitted Encumbrances (the “Deeds”) together with such other instruments that are required or customary for the Deeds to be recorded (including, without limitation, any forms to be filed in connection with realty transfer fees, transfer taxes, document stamps or similar charges);

 

(b)                                      (i) A standard form affidavit of title together with such other reasonable instruments or certifications reasonably requested by Purchaser’s title insurer so that Purchaser may obtain title policies for the Properties subject only to the Permitted Exceptions and (ii) any reasonable instruments, certifications or funds required in connection with the satisfaction of the Title Conditions;

 

(c)                                       The Supermarket Leases, duly executed;

 

(d)                                      An Assignment and Assumption of Leases for the Existing Leases for the Shopping Center Property in the form attached hereto as Exhibit E (the “Existing Leases Assignment”);

 

(e)                                       An Assignment and Assumption of Ground Lease for each of the Ground Leases in the form attached hereto as Exhibit F (the “Ground Lease Assignments”);

 

(f)                                         The Existing Tenant Estoppels and the Ground Landlord Estoppels;

 

(g)                                      Tenant attornment letters from Seller to the Existing Tenants in the form of Exhibit G attached hereto;

 

(h)                                      Affidavits sworn to by each party that constitutes Seller, in the form attached hereto as Exhibit H, stating under penalty of perjury that such Seller is not a foreign person as defined in Section 1445 of the Internal Revenue Code and stating such Seller’s United States taxpayer identification number;

 

(i)                                          A Secretary’s Certificate from A&P evidencing the necessary corporate approvals and authority of the Seller hereunder and of the tenant(s) and guarantor under the Supermarket Leases in the form attached hereto as Exhibit M and, if applicable, such other evidence of authority as may be reasonably required by Purchaser’s title insurer in connection with the transactions contemplated herein;

 

(j)                                          The Settlement Statement;

 

(k)                                       Original lease files for the Existing Leases and the Ground Leases (including, without limitation, fully-executed originals (if available) of the Existing Leases and the Ground Leases); and

 

(l)                                          All books, records and other documents, databases, computer files and other materials in the possession or control of Seller and material to Purchaser’s ownership or

 

7

 

operation of the Properties, including correspondence, Permits, licenses and approvals, as-built drawings, plans and specifications, and guaranties and warranties.

 

3.5.                                                          Purchaser’s Deliveries.

 

At the Closing, Purchaser shall, on compliance by Seller with the obligations of Seller to be complied with under this Agreement prior to or at Closing, and satisfaction (or waiver by Purchaser) of all conditions set forth in Article 11 of this Agreement to Purchaser’s obligation to close, deliver to Seller each of the following:

 

(a)                                       The Purchase Price (subject to Section 2.2(b));

 

(b)                                      The Supermarket Leases;

 

(c)                                       The Existing Leases Assignment;

 

(d)                                      The Ground Lease Assignments; and

 

(e)                                       The Settlement Statement.

 

3.6.           Pre-submission.

 

Each party agrees to submit to the other party’s attorneys copies of all documents to be delivered by such party at the Closing at least two (2) Business Days prior to Closing to the extent available, or if same are not available at said time, at such other time in as far in advance of the Closing as possible.

 

3.7.           Realty Transfer Fee and Other Fees and Taxes.

 

(a)                                       The realty transfer fee, transfer tax, document stamps or similar charges imposed on or in connection with the transfer of the Properties pursuant to this Agreement shall be paid by Seller. Any mortgage recording tax incurred with respect to any financing of Purchaser or commercial mansion fees shall be paid by Purchaser.

 

(b)                                      Seller shall pay its own counsel fees.

 

(c)                                       All fees of Purchaser’s counsel, survey, due diligence, recording fees, and title insurance premiums with respect to the transaction hereunder shall be paid by Purchaser.

 

(d)                                      All other governmental fees and taxes, if any, which are not otherwise addressed herein shall be paid in accordance with local custom in the county where the respective Property is located.

 

3.8.           Assessments.

 

If, on the Closing Date, the Properties or any part thereof shall be or shall have been affected by an assessment or assessments which are or may become payable in annual installments of which the first installment is then due or has been paid, then for the purposes of this Agreement, the unpaid installments of any such assessments shall all be considered due and payable and shall be credited to Purchaser at or prior to Closing. Any other such assessments shall be Purchaser’s responsibility to pay directly. Notwithstanding the foregoing, this Section 3.8 shall not be applicable to the Stand Alone Properties.

 

8

 

ARTICLE 4 - TITLE AND CONDITION OF PROPERTY

 

4.1.                                 Title, Permitted Encumbrances.

 

Title to the Properties shall be delivered at the Closing, subject only to the Permitted Encumbrances. Seller covenants and agrees (a) not to encumber the Properties in any way during the pendency of this Agreement, (b) to deliver title to the Properties subject only to the Permitted Encumbrances and (c) to cause all Title Conditions to be satisfied on or prior to the Closing Date. Without limiting the generality of the foregoing, Seller hereby agrees that on or prior to the Closing Date Seller shall satisfy or cure all taxes, mortgages, deeds of trust, judgments, attachments, mechanic’s or materialmen’s liens or other such monetary encumbrances on the Properties.

 

4.2.                                 Condition of Properties.

 

PURCHASER REPRESENTS, WARRANTS AND ACKNOWLEDGES TO AND AGREES WITH SELLER THAT PURCHASER IS PURCHASING THE PROPERTIES IN THEIR “AS-IS”, “WHERE IS” CONDITION “WITH ALL FAULTS” AND SPECIFICALLY AND EXPRESSLY WITHOUT ANY WARRANTIES, REPRESENTATION OR GUARANTEES, EITHER EXPRESS OR IMPLIED, OF ANY KIND, NATURE, OR TYPE WHATSOEVER FROM OR ON BEHALF OF THE SELLER, EXCEPT AS EXPRESSLY SET FORTH HEREIN. Purchaser acknowledges that Purchaser has not relied, and is not relying, upon any information, document, sales brochures or other literature, maps or sketches, projection, proforma, statement, representation, guarantee or warranty (whether express or implied, or oral or written, or material or immaterial) that may have been given by or made by or on behalf of the Seller except as expressly set forth herein.

 

ARTICLE 5 — PRE- CLOSING OBLIGATIONS

 

5.1                                    Covenants of Seller Pending Closing.

 

(a)                                       From and after the Effective Date through the Closing Date, except as otherwise provided by this Agreement, Seller shall not enter into any contracts for services or otherwise that may be binding upon the Properties or upon Purchaser, nor shall any easements be created or any licenses given on the Properties, nor shall any legal action be taken with respect to the Properties, nor enter into any new lease of space in the Properties, amend, modify or waive any right under an Existing Lease (except as provided in Section 9.2 below) or drawdown on any lease deposit or give a notice of default or commence or threaten to commence any action against any tenant or other third party having an interest in the Properties, or amend or take any other action with respect to any of the Ground Leases, without the express prior written consent of Purchaser in each instance, which consent shall be granted or withheld in Purchaser’s sole discretion;

 

(b)                                      From the Effective Date through the Closing Date, except as otherwise provided by this Agreement, Seller shall continue to operate the Properties in substantially the same manner as Seller has prior to the Effective Date;

 

(c)                                       From the Effective Date through the Closing Date, except as otherwise provided by this Agreement, Seller shall not initiate, consent to, approve or otherwise take any

 

9

 

action with respect to a change in any Permit or applicable zoning or any other governmental rules or regulations presently applicable to all or any part of the Properties;

 

(d)                                      From the Effective Date through the Closing Date, Seller shall promptly give Purchaser a reasonably detailed written notice of: (i) any fire, flood or other material adverse change with respect to the Properties; (ii) any actual or proposed condemnation (or proceeding in lieu thereof) of which Seller obtains Knowledge; (iii) any written notice received by Seller claiming that the Property or the use and operation thereof fails to comply with Applicable Law; (iv) any written notice given or received by or on behalf of Seller claiming that Seller or any Existing Tenant is in default under an Existing Lease; (v) any written notice given or received by or on behalf of Seller claiming that Seller or any Ground Landlord is in default under any of the Ground Leases; and (vi) any written notice received by any Seller concerning any pending or threatened litigation or administrative proceeding affecting any of the Properties; and

 

(e)                                       From the Effective Date through the Closing Date, Seller shall not sell or encumber all or any portion the Properties or any direct or indirect interest therein or enter into any agreement relating thereto.

 

ARTICLE 6 - CASUALTY AND CONDEMNATION

 

6.1                                    Casualty.

 

The risk of loss or damage to the Properties by fire or otherwise, beyond ordinary wear and tear, shall be upon Seller until the Closing, provided however, that, in the event of a casualty, Purchaser shall accept the Properties in their then “as is” condition at Closing (which shall not be delayed as a result of the casualty) and with respect to any casualty applicable to any portion of the Shopping Center Property subject to an Existing Lease, Seller shall, at the Closing, assign to Purchaser its rights under all insurance proceeds as a result of such casualty (to the extent applicable to such portion(s) of the Properties) and shall pay to Purchaser all insurance proceeds received by Seller with respect thereto, and Purchaser shall receive a credit at Closing in an amount equal to the deductibles under the insurance policies applicable thereto (provided, however, that with respect to any of the Stand Alone Properties or any portion of the Shopping Center Property that will be subject to a Supermarket Lease upon the Closing, Seller shall not so assign such rights, and Purchaser’s and Seller’s rights and obligations following the casualty shall be governed by the applicable Supermarket Lease). Notwithstanding the foregoing, in the event that any casualty at a Property affects more than ten percent (10%) of the Improvements for such Property or entitles an Existing Tenant to terminate its Existing Lease or cease paying all or some of its rent or entitles a Ground Landlord to terminate its Ground Lease or would entitle a tenant under a Supermarket Lease (under the provisions of the applicable Supermarket Lease to be delivered at Closing) to terminate the applicable Supermarket Lease or cease paying all or some of its rent, then Purchaser shall have the right to remove such Property from this Agreement by giving notice of same to Seller within ten (10) Business Days after the casualty, and the parties shall proceed to a Partial Closing without such Property.

 

10

 

6.2 Condemnation.

 

(a)                                      In the event that a permanent (or temporary that exceeds thirty (30) days) public condemnation, eminent domain or other taking proceeding shall be completed, commenced or threatened against an entire Property, or a material portion of any Property, prior to Closing, such that the Property cannot, in Purchaser’s reasonable judgment, be used for its intended purpose or which will impact access or parking, permit an Existing Tenant to terminate its Existing Lease or stop paying full rent, permit a Ground Landlord to terminate its Ground Lease, entitle a tenant under a Supermarket Lease (under the provisions of the applicable Supermarket Lease to be delivered at Closing) to terminate the applicable Supermarket Lease or stop paying full rent or reduce the value of any of the Properties by more than ten percent (10%), then Purchaser shall have the right to remove such Property from this Agreement by giving notice of same to Seller within ten (10) Business Days after the condemnation notice or other event giving Purchaser such termination right, and the parties shall proceed to a Partial Closing without such Property.

 

(b)                                     In the event of a permanent public condemnation, eminent domain or other taking proceeding of a portion of the Properties prior to Closing, which is not described in Section 6.2(a), Purchaser shall complete the sale without any adjustment to the Purchase Price or other compensation for such condemnation except that any proceeds received by the Seller before the Closing on account thereof shall be paid over to Purchaser at Closing as a Closing adjustment, and Seller shall transfer and assign to Purchaser at Closing all of Seller’s rights and interests in and to such award and proceeds and any proceeds received by the Seller after Closing on account thereof shall be paid over to Purchaser as a post-closing adjustment.

 

(c) The provisions of this Section 6.2 shall survive the Closing; provided, however, in the event of any inconsistency between the provisions of this Section 6.2 and any applicable provisions of any of the Supermarket Leases, the applicable provisions of the applicable Supermarket Lease or Supermarket Leases shall govern and control.

 

ARTICLE 7- REPRESENTATIONS AND WARRANTIES

 

7.1                                    Warranties and Representations of Seller.

 

Seller represents and warrants to, and covenants and agrees with, Purchaser as of the Effective Date (and on the Closing Date shall be deemed to reaffirm all such representations, covenants and warranties as of that date) that:

 

(a)                                       Seller is duly organized, validly existing and in good standing under the laws of the state of its incorporation/formation and authorized to do business in the jurisdictions where the Properties are situate. The execution, delivery and performance by Purchaser of the terms of this Agreement have been duly authorized by all necessary corporate action and do not conflict with the organizational/formation documents of Seller or any agreement to which Seller is bound or is a party or requires the consent of any party;

 

(b)                                      Seller has the legal right, power and authority to enter into this Agreement and to perform all of its obligations hereunder, and this Agreement constitutes the legal, valid and binding obligation of Seller, enforceable in accordance with its terms. The execution and delivery by Seller of this Agreement and the Seller’s performance hereunder will

 

11

 

not conflict with, or result in a breach of, any of the terms, covenants and provisions of any agreement or instrument to which Seller is a party or by which it is bound, or, to Seller’s Knowledge, any Governmental Regulation, or judgment, writ, injunction or decree of any court or governmental authority affecting Seller. The individual executing this Agreement on Seller’s behalf has been duly authorized to do so by all necessary all corporate action;

 

(c)                                       Seller does not have Knowledge of any pending or threatened condemnation, eminent domain or similar proceeding affecting the Properties or any portion thereof;

 

(d)                                      To Seller’s Knowledge and except as would not have a Material Adverse Effect, there are no suits, actions, claims or proceedings pending or threatened against or affecting the Properties, the Permits or any of the transactions provided for herein before any court or administrative agency or officer (including, without limitation, any bankruptcy, insolvency or similar proceeding) seeking to restrain, enjoin or otherwise prohibit the consummation of any of the transactions contemplated by this Agreement, and Seller has not breached or otherwise failed to perform with respect to any judgment, order, writ, injunction, rule or regulation of any court or governmental agency or office to which Seller is subject in any way affecting the Seller (but only to the extent that any such breach or failure to perform could reasonably be expected to have a Material Adverse Effect on Purchaser following the Closing), the Properties, the Permits or any of the transactions provided for herein;

 

(e)                                       Seller does not have Knowledge of any pending or threatened special assessments affecting the Properties or any portion thereof. There is no application or proceeding pending with respect to the reduction of the assessed valuation of any portion of the Properties;

 

(f)                                         Seller is familiar with the provisions of Sections 897 and 1445 of the Internal Revenue Code (the “Code”), and Seller is not a “foreign person” or “disregarded entity” as those terms are defined in Section 1445(f)(3) of the Code;

 

(g) No bankruptcy or insolvency proceeding or petition under the U.S. Bankruptcy Code or any state bankruptcy or insolvency law filed by or against Seller is pending, or, to Seller’s Knowledge, threatened. Seller has not caused, suffered or consented to the appointment of a receiver, trustee, administrator, conservator, liquidator or similar official in any federal, state or foreign judicial or non judicial proceeding, to hold, administer and/or liquidate all or substantially all of its assets, or made an assignment for the benefit of creditors. Seller is solvent, and Seller will not be made insolvent by the consummation of the transactions contemplated by this Agreement, nor does Seller contemplate any pending insolvency or believe or have reason to believe that it will not be able to pay its debts and other obligations as they become due (the parties acknowledge and agree that the terms and phrases used in this sentence shall be interpreted in accordance with Section 548 of the U.S. Bankruptcy Code). Seller did not enter into this Agreement and the Seller will not consummate the transactions contemplated by this Agreement with any intent to hinder, delay or defraud any creditors. The Purchase Price is good and valuable consideration for the Properties and has been negotiated in an arm’s length transaction between Seller and Purchaser; without limitation of the foregoing, Seller continued to market the Properties until immediately prior to the execution of this Agreement upon a separate

 

12

 

understanding between Purchaser and Seller, which understanding is terminated by the execution of this Agreement, that Purchaser would have the right to match any materially higher offers received by Seller in connection with the sale of the Properties;

 

(h)                                      To Seller’s Knowledge, except as disclosed in the Environmental Reports, (i) there has never been any release of Hazardous Materials into the environment from the Properties, or in, on or under the Properties, that has not been remediated in accordance with all Environmental Laws; and (ii) there are no underground fuel or oil storage tanks located at the Properties;

 

(i)                                          Other than the Existing Leases (and one (1) lease at the Property located in Lawnside, New Jersey that will be a sublease under the Supermarket Lease at such Property following the Closing in respect of which Purchaser shall have no responsibility, obligation or liability), there are no leases or other agreements (written or verbal) that grant any possessory interest in and to any space situated on or in the Properties or that otherwise give rights with regard to use of the Properties for occupancy of any kind affecting the Properties;

 

(j)                                          To Seller’s Knowledge, there are no service, maintenance, supply or other similar contracts affecting the Properties that will be binding on Purchaser; and in the event that any such contracts are discovered after the Closing, Seller shall satisfy all obligations thereunder and terminate such agreements and within ten (10) Business Days following Purchaser’s written demand, and pay in full any cost, demand, claim or other expense of any kind or nature related thereto;

 

(k)                                       Seller has not received written notice of any uncured claims, demands, suits, orders, decrees or judgments relative to violations of (i) any of the Permits or any conditions thereof, or (ii) or any easement, restrictive covenant or other matter of record affecting the Properties;

 

(l) The Existing Leases are in full force and effect and have not been modified, amended, extended or assigned, except as expressly set forth in the Rent Roll. With respect to the Existing Leases: (i) the rents and other charges payable by the Existing Tenants under the Lease are being paid on a current basis and there are no arrearages; (ii) there are no existing defaults by either Seller as the landlord, or to Seller’s Knowledge, the Existing Tenants, nor to Seller’s Knowledge are there any existing state of facts or conditions which, upon passage of time and/or giving of notice, could give rise to a default by either Seller as the landlord or the Existing Tenants; (iii) no rent under the Existing Leases have been paid more than thirty (30) days in advance; (iv) there are no security deposits under any Existing Leases except as shown on the Rent Roll, and any such security deposits are cash security deposits; and (v) all brokerage commissions and tenant improvement allowance (and any other amount payable to a tenant) payable by Seller as landlord (whether or not then due and payable) under or with respect to the Existing Leases, including, without limitation, any renewal or extension thereof have been paid in full or will be as of the Closing or credited to Purchaser against the Purchase Price. Seller has properly performed all work required to be performed by landlord under each of the Existing Leases in accordance with provisions of the Existing Leases and, as the landlord under the Existing Leases, Seller has no further construction obligations, whether for initial construction or with respect to any expansion options, and has paid in full any tenant improvement contributions

 

13

 

or other allowances. To Seller’s Knowledge, any documents, test results or other submissions required to be delivered to the Existing Tenants under the Existing Leases have been delivered. Seller has no Knowledge that any Existing Tenant intends to vacate its space, cease operating for business or request protection under any bankruptcy laws, insolvency laws or other similar laws. The information on the Rent Roll is materially true and accurate and Seller has provided true, correct and complete copies of the Existing Leases to Purchaser. No lease security deposit has been drawdown on;

 

(m)                                    Seller has not given or received a notice of any violation of any Applicable Law governing either of the Properties or any covenant, condition or restriction or any agreement contained in any instrument encumbering or benefiting either of the Properties that remains uncured;

 

(n)                                      No person, firm, corporation or other entity has any right or option (including, without limitation, any right of first refusal or first offer) to purchase the Properties or any portion thereof;

 

(o)                                      Seller has delivered to Purchaser true, correct and complete copies of the Ground Leases. The Ground Leases are in full force and effect, have not been amended, modified or supplemented, and each constitutes the entire agreement between Seller and the applicable Ground Landlord. There is no default by Seller, nor to Seller’s Knowledge any Ground Landlord under any of the Ground Leases and, to Seller’s Knowledge, no condition or event that, with the passage of time or giving of notice, or both, has occurred that would constitute such a default. No security deposit has been provided in connection with any of the Ground Leases. No brokerage or leasing commission or fee payable by the tenant under any the Ground Leases is or will hereafter be due, and there are no agreements that will obligate Purchaser to pay any such amount on or after Closing in connection with any renewals or extensions or amendments of any of the Ground Leases;

 

(p)                                      The sales and EBITDA information attached as Exhibit J is true, correct and accurate in all material respects; and

 

(q) At Closing there shall not be any collective bargaining agreements, management agreements or other employee agreements binding on Purchaser and Purchaser shall have no obligation with respect to any employees, and the only employees at the Properties shall be the employees of the tenants under the Existing Leases and the Supermarket Leases (and the only such collective bargaining agreements, management agreements or other employee agreements shall be binding on such tenants, but not Purchaser).

 

7.2                                    Survival.

 

The representations and warranties made by Seller in Section 7.1 are true and correct as of the date of this Agreement and shall be true and correct and deemed repeated as of Closing, and shall survive Closing for a period of twelve (12) months, provided however, the Unlimited Representations shall survive closing indefinitely without any such limitation on survival.

 

7.3                                    Warranties and Representations of Purchaser.

 

Purchaser warrants and represents to, and covenants and agrees with, Seller as follows:

 

14

 

(a)                                       Purchaser is a limited liability company, has full power and authority to execute, deliver and carry out its obligations under this Agreement and all documents to be executed in connection herewith and has taken all necessary action to authorize the execution, delivery and performance of this Agreement and all documents to be executed in connection herewith. All persons executing this Agreement on behalf of the Purchaser have been duly authorized to do so;

 

(b)                                      This Agreement is the legal, valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms;

 

(c)                                       The execution, delivery and performance of this Agreement by Purchaser in accordance with its terms, will not violate, conflict with or result in the breach of any agreement or any law, regulation, contract, agreement, commitment, order, judgment or decree to which Purchaser is a party or by which it is or may be bound;

 

(d)                                      No bankruptcy or insolvency proceeding or petition under the U.S. Bankruptcy Code or any state bankruptcy or insolvency law filed by or against Purchaser is pending, or, to Purchaser’s knowledge, threatened. Purchaser has not caused, suffered or consented to the appointment of a receiver, trustee, administrator, conservator, liquidator or similar official in any federal, state or foreign judicial or non judicial proceeding, to hold, administer and/or liquidate all or substantially all of its assets, or made an assignment for the benefit of creditors; and

 

(e) Purchaser has funds sufficient for the Purchase Price. Purchaser acknowledges and agrees that this transaction is not contingent upon financing of any kind or the availability of any specific funding source.

 

7.4                                    Survival.

 

The representations made by Purchaser in Section 7.3 are true and correct as of the date of this Agreement and shall be true and correct and deemed repeated as of Closing, but shall not survive Closing.

 

ARTICLE 8- DEFAULT

 

8.1 Default by Purchaser.

 

In the event that Purchaser defaults under this Agreement and such default continues for five (5) days after written notice from Seller to Purchaser specifying such default, Seller shall have as its sole and exclusive remedy the right to terminate this Agreement and retain the Deposit without the necessity of proving actual damages due to the difficulty of proving actual damages resulting from the breach of this Agreement by Purchaser. In the event that litigation ensues regarding Seller’s right to retain the Deposit and Seller ultimately prevails, Purchaser hereby waives any right to challenge the enforceability of this Section 8.1 or its reasonability.

 

8.2                                    Default by Seller.

 

In the event that Seller defaults under this Agreement and such default continues for five (5) days after written notice from Purchaser to Seller specifying such default, the Deposit shall immediately be refunded to Purchaser following Purchaser’s written demand and Purchaser

 

15

 

shall, as its sole and exclusive remedy, have the right either (a) to seek specific performance of this Agreement, or, in the alternative (or if Purchaser sought specific performance and such remedy was denied or otherwise not available to Purchaser for any reason), (b) to terminate this Agreement and receive liquidated damages of $2,000,000 from Seller without the necessity of proving actual damages due to the difficulty of proving actual damages resulting from the breach of this Agreement by Seller. In the event that litigation ensues regarding such liquidated damages or the amount thereof, Seller hereby waives any right to challenge the enforceability of this Section 8.2 or its reasonability. The parties agree that except as expressly set forth in this Section 8.2 no damages of any kind whatsoever (including, without limitation, compensatory, special or consequential damages) shall be awarded as a result of Seller’s default. Purchaser may, in its sole and absolute discretion, extend any time for performance of any obligation of Seller under this Agreement by written notice of such election given to Seller for one or more periods of up to thirty (30) days in total to provide additional time for the performance of any such obligation.

 

8.3                                    Partial Closing.

 

In addition to Purchaser’s remedies set forth in Section 8.2 above, if any default by Seller under this Agreement affects less than all of the Properties, Purchaser may, in its sole and absolute discretion, by written notice of such election given to Seller, elect to proceed to a Partial Closing with respect to the Properties that are not affected by such default. In connection with such an election Purchaser may, in its sole and absolute discretion, by written notice of such election given to Seller, elect to consummate a Partial Closing with respect to the Property or Properties subject to Seller’s default following Seller’s cure thereof.

 

ARTICLE 9 — SUPERMARKET LEASES

 

9.1                                    Supermarket Leases.

 

(a)                                    At Closing, the parties shall mutually execute and deliver the Supermarket Leases for the Properties in the forms attached as Exhibits B-1 through B-6.

 

(a) At the Closing, Seller, as “Tenant,” shall pay the Fixed Annual Rent described in Section 5 of the Supermarket Leases, plus, with respect to the Supermarket Lease for the Shopping Center Property its proportionate share of estimated monthly CAM, Real Estate Taxes, and insurance, on a prorated basis as of 11:59 p.m. on the day preceding the Closing Date.

 

9.2                                    Existing Leases.

 

(a) At the Closing, base rent and additional rent under the Existing Leases shall be apportioned for the Property as of 11:59 p.m. on the day preceding the Closing Date. After Closing, any rent under the Existing Leases collected by either party shall be first credited to Purchaser for any rents then due and payable, next to Seller and Purchaser for the rent payable in the month in which the Closing occurs and then against any pre-closing arrearages due to Seller. In the first twelve (12) months following the Closing, Seller may not commence a legal action against any Existing Tenant. Thereafter, Seller may, but shall have no obligation to, commence a legal action to recover pre-closing arrearages from an Existing Tenant (provided,

 

16

 

however, in no event shall Seller seek to terminate an Existing Lease or evict any Existing Tenant in connection with any such action).

 

(b)                                 Existing Tenants’ payments on account of “CAM” and percentage rent under the Existing Leases and the basis for billing therefor will be accounted for at Closing based on information available at such time, and Seller and Purchaser shall cooperate with respect thereto during the twelve (12) month period following the Closing such that all amounts accruing with respect thereto prior the Closing Date are paid or otherwise credited to Seller and all amounts accruing with respect thereto on or after the Closing Date are paid or otherwise credited to Purchaser.

 

(c)                                  At Closing, Purchaser shall receive a credit against the Purchase Price for any and all security deposits held by Seller pursuant to the Existing Leases.

 

ARTICLE 10 - ESCROW AGENT

 

10.1 Deposit in Escrow.

 

The Deposit and any interest earned thereon shall be held by the Escrow Agent, in trust and on the terms hereinafter set forth. The term “Deposit” shall include any interest earned thereon.

 

10.2 Deliveries by Escrow Agent.

 

If Purchaser demands the Deposit pursuant to Section 8.1 or terminates this Agreement pursuant to Section 11.2(a), Escrow Agent shall immediately return the Deposit to Purchaser. Except as provided in the previous sentence or at Closing, when the entire Deposit shall be paid to Seller, Escrow Agent shall not make any disbursements of the Deposit unless instructed by written instructions jointly signed by Seller and Purchaser directing Escrow Agent to disburse funds otherwise.

 

10.3 Disputes.

 

In the event of a dispute that results in litigation between Seller and Purchaser, the Escrow Agent shall deliver the monies held in the escrow to the Clerk of the Court in which such litigation is pending, or in the event of a dispute not then resulting in litigation, the Escrow Agent may continue to hold the monies in escrow or take such affirmative steps as the Escrow Agent may, at the Escrow Agent’s option, elect in order to terminate the Escrow Agent’s duties, including, but not limited to, depositing the monies held in the escrow in any court which the Escrow Agent shall select in New Jersey, and an action for interpleader, the costs thereof to be borne by whichever of Seller or Purchaser is the losing party.

 

10.4 Release and Indemnity.

 

(a) It is agreed that the duties of the Escrow Agent are only as herein specifically provided and are purely ministerial in nature, and that the Escrow Agent shall incur no liability whatsoever except for willful misconduct or gross negligence, as long as the Escrow Agent has acted in good faith. The Seller and Purchaser each release the Escrow Agent from any act done or omitted to be done by the Escrow Agent in good faith in the performance of its duties hereunder.

 

17

 

(b) Seller and Purchaser shall jointly and severally hold Escrow Agent harmless from and against any loss, damage, liability or expense incurred by Escrow Agent not caused by its willful misconduct or gross negligence, arising out of or in connection with its entering into this Agreement and the carrying out of its duties hereunder, including the reasonable costs and expenses of defending itself against any claim of liability or participating in any legal proceeding. Escrow Agent may consult with counsel of its choice, and shall have full and complete authorization and protection for any action taken or suffered by it hereunder in good faith and in accordance with the opinion of such counsel.

 

10.5 Stakeholder Only.

 

(a)                                       The Escrow Agent is acting as a stakeholder only with respect to the monies to be deposited in the escrow. Upon making delivery of such monies in the manner herein provided, the Escrow Agent shall have no further liability hereunder.

 

(b)                                      Escrow Agent may resign at will and be discharged from its duties or obligations hereunder by giving notice in writing of such resignation specifying a date when such resignation shall take effect; provided, however, that (i) prior to such resignation a substitute escrow agent is approved in writing by Seller and Purchaser, which approval shall not be unreasonably withheld or delayed, or (ii) Escrow Agent shall deposit the Deposit with a court of competent jurisdiction in New Jersey. After such resignation, Escrow Agent shall have no further duties or liability hereunder.

 

ARTICLE 11 — CONDITIONS TO CLOSING

 

11.1 Conditions Precedent.

 

Purchaser’s obligations under this Agreement are expressly subject to the timely fulfillment of the conditions set forth in this Section 11.1 on or before the Closing Date:

 

(a) Purchaser shall have received an estoppel certificate from Fashion Bug (the “Estoppel Requirement”). All Tenant estoppel certificates required under this Section 11.1(a) shall be substantially in the form attached hereto as Exhibit K. No tenant estoppel certificate shall count toward the Estoppel Requirement if it discloses: (i) any material default by landlord or tenant or condition that, with the giving of notice, the passage of time, or both, would become a default, unless Seller actually cures the alleged default or condition prior to Closing to Purchaser’s reasonable satisfaction; (ii) any materially adverse amendment, modification or supplement to the Existing Lease in question that was not provided to Purchaser before the Effective Date; (iii) any outstanding tenant improvement allowances or obligations, moving allowances, free rent or other inducements or concessions owed to any Existing Tenant that were not disclosed in writing to Purchaser before the Effective Date, unless, with respect to any payment obligation to an Existing Tenant, Seller agrees to credit the amount of the obligation to Purchaser at Closing; or (iv) any other information that is inconsistent in any material adverse respect with the Rent Roll or the copies of the Existing Leases provided to Purchaser before the Effective Date. (Although not a condition to Closing, Seller, as a post-Closing requirement shall use good faith, commercially reasonable efforts to obtain an estoppel certificate from each tenant under each of the Existing Leases, and shall deliver copies such estoppels to Purchaser promptly upon receipt thereof by Seller);

 

18

 

(b)                                      Purchaser shall have received an estoppel certificate from each Ground Landlord reflecting the terms of each Ground Lease and otherwise substantially in the form attached hereto as Exhibit L (the “Ground Landlord Estoppels”). This condition shall not be satisfied if any of the Ground Landlord Estoppels discloses: (i) any default under any of the Ground Leases or condition that, with the giving of notice, the passage of time, or both, would become a default unless Seller actually cures the alleged default or condition prior to Closing to Purchaser’s reasonable satisfaction; (ii) any material amendment, modification or supplement to any of the Ground Leases that was not provided to Purchaser before the Effective Date; or (iii) any other information that is inconsistent in any material respect with the Ground Leases or related information as provided to Purchaser before the Effective Date. Seller shall use good faith, commercially reasonable efforts to obtain the Ground Landlord Estoppels from each of the Ground Landlords, and shall deliver a copy of such estoppels to Purchaser promptly upon receipt thereof;

 

(c)                                       On the Closing Date title to the Properties shall be conveyed to Purchaser in the condition required pursuant to Section 2.1 and Section 4.1; and

 

(d) Seller shall prepare and Purchaser shall cooperate in good faith in the filing with the State of New Jersey Division of Taxation of a Notice of Sale (C-9600) (and a copy of this Agreement shall be submitted therewith) and Asset Transfer Tax Declaration (TTD) and Seller shall obtain a so-called “Bulk Sales Letter” before the Closing assuring that Purchaser shall not be personally liable for the payment to the State of New Jersey of taxes determined to be due from Seller as a result of the sale of the Lawnside Property. In connection therewith and without limiting the generality of the foregoing, the Closing shall not occur until the State of New Jersey has issued such a so-called “bulk sales letter” and, if such letter requires the withholding of Seller’s proceeds from the Closing, an escrow therefor shall be established with the Escrow Agent and the funds held thereunder shall not be released to Seller except in accordance with instructions from the New Jersey Division of Taxation.

 

11.2 Failure of Condition Precedent.

 

(a)                                       If any condition precedent set forth in Section 11.1 has not been satisfied on the Closing Date then Purchaser may terminate this Agreement by written notice to Seller, in which event the Deposit shall immediately be returned to Purchaser and the parties shall have no further obligations hereunder.

 

(b)                                      Notwithstanding the foregoing, if the conditions set forth in Section 11.1 shall not have been fulfilled on or before the Closing Date, either Purchaser or Seller shall have the right, exercisable by written notice to the other party on or prior to the Closing Date, to extend the Closing Date (subject to Purchaser’s termination right set forth in the following sentence) for a period of thirty (30) days to provide additional time for the fulfillment of such conditions (and, if all such conditions are so fulfilled, the Closing Date shall be the date that is two (2) Business Days thereafter). Notwithstanding the foregoing, commencing on the date that is fifteen (15) days following the commencement of such thirty (30) day period, Purchaser may elect, in its sole discretion, to terminate this Agreement pursuant to Section 11.2(a) above or proceed to a Partial Closing pursuant to Section 11.2(c) below. At the end of such thirty (30) day

 

19

 

period, Seller may elect, in its sole discretion, to terminate this Agreement pursuant to Section 11.2(a) above or proceed to a Partial Closing pursuant to Section 11.2(c) below.

 

(c)                                       Without limitation of and in addition to the provisions of Sections 11.2(a) and (b) above, if any failure of condition precedent affects less than all of the Properties, Purchaser may, in its sole and absolute discretion, by written notice of such election given to Seller, elect to proceed to a Partial Closing with respect to the Properties that are not affected by such failure.

 

(d)                                      The parties acknowledge and agree that the “Bulk Sales Letter” described in Section 11.1(d) will not be available by the Closing Date. Therefore, this Section 11.2(d) shall constitute Seller’s written notice to extend the Closing Date for the Lawnside Property, subject to and in accordance with the provisions of Section 11.2(b) (provided, however, that the fifteen (15) day period generally provided to Purchaser pursuant to Section 11.2(b) shall be thirty (30) days with respect to the condition described in Section 11.1(d)). Subject to all applicable provisions of the Agreement, the Closing Date for the Lawnside Property will be on the second (2nd) Business Day following Purchaser’s receipt of the Bulk Sales Letter that satisfies the requirements of Section 11.1(d).

 

ARTICLE 12 - MISCELLANEOUS

 

12.1 Entire Agreement.

 

This Agreement, including all exhibits, schedules and documents attached hereto, contains the entire understanding of the parties hereto with respect to the subject matter hereof, and no prior or other writing or oral agreement or undertaking pertaining to any such matter shall be effective for any purpose. This Agreement may not be changed or modified, nor any provision hereof waived, except in writing by the party to be charged thereby.

 

12.2 Broker.

 

(a)                                       Purchaser and Seller represent and warrant to each other that neither has dealt with any broker, finder or agent in connection with this transaction other than Holliday Fenoglio Fowler, L.P (“HFF”) and Andy Nemeroff of the Imperial Capital Company (“Nemeroff”).

 

(b)                                      Seller shall pay HFF a commission pursuant to a separate commission agreement. Purchaser shall pay Nemeroff a commission pursuant to a separate commission agreement.

 

(c)                                       Seller shall defend, indemnify and hold Purchaser and Nemeroff harmless from and against any claims of or liabilities to any broker, finder or agent based upon dealings or alleged dealings with Seller. Purchaser shall defend, indemnify and hold Seller and HFF harmless from and against any claims of or liabilities to any broker, finder or agent based upon dealings or alleged dealings with Purchaser.

 

(d)                                      Without limiting the generality of the Section 12.2(c) above, Purchaser shall defend, indemnify and hold Seller and HFF harmless from and against any claims or

 

20

 

liabilities to Morris Harary and A&H Acquisitions, and any claim from such brokers shall not be a default under this Agreement or a basis to postpone the Closing Date.

 

(e) The obligations of Purchaser and Seller under this Section shall survive whether or not title closes hereunder and notwithstanding any release of either party pursuant to any other provisions of this Agreement.

 

12.3 Notices.

 

(a) All notices, elections, consents, approvals, demands, objections, requests or other communications which Seller, Purchaser or Escrow Agent may be required or desire to give pursuant to, under or by virtue of this Agreement shall be in writing and sent by (i) first class U.S. certified or registered mail, return receipt requested, with postage prepaid, or (ii) nationally recognized overnight courier (for next business day delivery), addressed as follows:

 

If to Seller:

 

Pathmark Stores, Inc.

Two Paragon Drive

Montvale, NJ 07645

Attention: Senior Vice President – Real Estate

 

With a copy to:

 

Pathmark Stores, Inc.

Two Paragon Drive

Montvale, NJ 07645

Attention: Senior Counsel, Real Estate

 

If to Purchaser:

 

c/o Winstanley Enterprises LLC

150 Baker Avenue Extension

Suite 303

Concord, Massachusetts 07142

Attention: Adam D. Winstanley

 

With a copy to:

 

Daniel A. Taylor, Esq.

DLA Piper LLP (US)

 

21

 

33 Arch Street, 26th Floor

Boston, MA 02110-1147

 

If to Escrow Agent

 

Chicago Title Insurance Company

265 Franklin Street, 8th floor

Boston, Massachusetts 02110

Attention: David Buczkowski

 

(b) Seller, Purchaser or Escrow Agent may designate another addressee or change its address for notices and other communications hereunder by a notice given to the other parties in the manner provided in this Section 12.3. A notice or other communication sent in compliance with the provisions of this Section 12.3. shall be deemed given and received on (i) the third (3rd) day following the date it is deposited in the U.S. mail, or (ii) the date it is delivered (or delivery is refused) to the other party if sent by nationally recognized overnight courier. Notices or receipts signed by the respective attorneys for the parties shall be deemed sufficient within the meaning of this Section without the signature of the parties themselves.

 

12.4 Governing Law.

 

This Agreement shall be governed by and construed under the laws of the State of New Jersey, without regard to conflict of law principles. The exclusive jurisdiction for any disputes concerning this Agreement shall be the Superior Court of New Jersey, Bergen County, and the parties hereby personally submit to such jurisdiction and waive all defenses relating to jurisdiction, venue and forum non convenience.

 

12.5 Interpretation.

 

The parties hereto agree that the terms, covenants and language of this Agreement were the result of negotiations between the parties and, as a result, there shall be no presumption that ambiguities in this Agreement, if any, shall be resolved against either party. The parties hereto further agree that any controversy over the construction of this Agreement shall be decided neutrally, and without regard to events of authorship or negotiation and shall be construed reasonably to carry out its intent. If any provision hereof shall be declared invalid by a court or in any administrative proceedings, then the provisions of this Agreement shall be construed in such manner so as to preserve the validity hereof and the substance of the transaction herein contemplated to the extent possible. The article, paragraph and/or section headings and the arrangement of this Agreement is for the convenience of the parties hereto and do not in any way affect, limit, amplify or modify the terms and provisions hereof.

 

12.6 Singular, Plural, Etc.

 

Wherever herein the singular is used the same shall include the plural and the masculine gender shall include the feminine and neuter genders and vice versa, as the context shall require.

 

22

 

12.7 Counterparts/Signatures.

 

This Agreement may be executed in several counterparts, which shall constitute one and the same instrument. A facsimile, email, pdf or electronic signature shall be deemed an original signature.

 

12.8 Computation of Time.

 

Any time period provided for in this Agreement which ends on a Saturday, Sunday or legal holiday of the State of New Jersey shall be extended to the end of business on the next full Business Day.

 

12.9 Successors and Assigns.

 

This Agreement may not be assigned by Purchaser, except upon the express written consent of Seller, which Seller may withhold in its sole and absolute discretion; provided, however, that Purchaser shall have the right, on written notice to Seller, to assign all of its rights and obligations under this Agreement to any party or parties affiliated with Purchaser. Purchaser shall also have the right to assign all of its rights under this Agreement with respect one of the Properties to one entity and all of its rights with respect to the other of the Properties to another entity in which event Seller shall deliver separate closing documents for each such entity (that is, Purchaser may assign [and intends to so assign] its rights to multiple entities such that, at Closing, each Property shall be transferred to a separate entity as “Purchaser”). Any attempted assignment in breach of this Section 12.9 shall be null, void and of no legal effect. This Agreement shall inure to the benefit of and be binding upon Seller and Purchaser and to Seller’s and Purchaser’s respective heirs, personal representatives, successors and permitted assigns. If multiple parties have executed this Agreement as the “Seller” hereunder, then such parties shall be jointly and severally liable for all obligations of the Seller under this Agreement and the documents delivered at Closing. If Purchaser assigns its rights under this Agreement to multiple parties, then such parties shall be jointly and severally liable for all obligations of the Purchaser under this Agreement and the documents delivered at Closing.

 

12.10 Exhibits.

 

Each of the Exhibits referred to herein and attached hereto is incorporated herein by this reference.

 

12.11 No Recording.

 

Neither this Agreement nor any memorandum hereof may be recorded without the express written consent of both parties. In the event that either party records this Agreement or any memorandum hereof without first obtaining such consent, such party shall be in material breach of this Agreement and the non-breaching party shall be entitled to pursue any and all of its remedies pursuant to this Agreement or as otherwise provided by law.

 

12.12 Termination.

 

Notwithstanding anything to the contrary herein, upon termination of this Agreement neither party shall have any further rights or obligations, except those rights and obligations arising under any sections of this Agreement which expressly survive termination of this Agreement.

 

23

 

12.13 Confidentiality.

 

The parties hereto agree that the terms of this Agreement and all materials obtained or information learned by Purchaser in connection with the transaction contemplated hereby will be used solely for Purchaser and Purchaser’s agents in evaluating and closing the transaction and the Properties and all such information and materials (which is not available from third parties) will be kept confidential and shall not be disclosed to any other persons or entities other than as may be required by Purchaser to evaluate and/or close on the Properties or as may be required by law or court order. The provisions of this Section shall survive the Closing or termination of this Agreement.

 

12.14 No Waiver.

 

The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as thereafter waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

 

12.15 Exculpation.

 

None of the officers, directors, shareholders, partners, employees, agents, trustees or representatives (cumulatively, “Representatives”) of either party or any of their respective affiliated entities shall be liable, accountable, or subject to any suit, action, proceeding or claim of any of the costs, expenses, or liability arising directly or indirectly, out of the party’s failure or refusal to satisfy its obligations hereunder or out of the transactions contemplated by this Agreement.

 

12.16 Waiver of Right to Jury Trial.

 

EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY, VOLUNTARILY, KNOWINGLY AND IRREVOCABLY WAIVES ANY CONSTITUTIONAL OR OTHER RIGHT EACH MAY HAVE TO A TRIAL BY JURY IN THE EVENT OF LITIGATION CONCERNING ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT, THE PARTIES PERFORMANCE THEREUNDER OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION THEREWITH, OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY INSTRUMENT, DOCUMENT OR AGREEMENT RELATED IN ANY WAY WHATSOEVER TO THE SUBJECT MATTER OF THIS AGREEMENT; AND IN EACH CASE, WHETHER NOW EXISTING OR HEREAFTER ARISING AND WHETHER SOUNDING IN TORT OR CONTRACT OR OTHERWISE. ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. EACH PARTY REPRESENTS THAT IT HAS CONSULTED WITH COUNSEL SPECIFICALLY WITH REFERENCE TO THIS CLAUSE.

 

24

 

12.17 Attorney Fees.

 

In the event litigation ensues under this Agreement, the substantially prevailing party shall be entitled to all reasonable attorney fees and all other reasonable out-of-pocket litigation costs incurred by such prevailing party.

 

12.18 Exclusivity.

 

In consideration of the significant time and expense devoted and to be devoted by Purchaser in connection with the acquisition of the Properties, Seller agrees that, during the term of this Agreement, it will not market the Properties or any portion thereof for sale or allow other potential purchasers to inspect or tour the Properties, and have not and will not enter into any agreement to sell the Properties or any portion thereof to any party other than Purchaser. Notwithstanding anything to the contrary in this Agreement, and in addition to the other rights and remedies of Purchaser set forth in this Agreement, if Seller breaches its obligations under this Section 12.18, Purchaser shall have the right, at Purchaser’s election, to injunctive or other equitable relief.

 

12.19 Tort Indemnity.

 

Seller shall indemnify and hold Purchaser harmless from and against all costs, expenses, and claims asserted against, or incurred by Purchaser, by reason of any tort claim or any other claim regarding bodily injury or property damage relating to Seller’s ownership and/or use and occupancy of the Properties for the period prior to Closing. This provision shall survive the Closing.

 

[SIGNATURES FOLLOW]

 

25

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

 

 

	
WITNESS:
    	
 
    	
SELLER:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
THE   GREAT ATLANTIC & PACIFIC TEA COMPANY, INC., a Maryland   corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
BY:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PATHMARK   STORES, INC., a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
BY:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   Vice President and Secretary
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PLAINBRIDGE   LLC, a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
BY:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
UPPER   DARBY STUART, LLC, a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
BY:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   President
    

 

26

 

	
 
    	
 
    	
LANCASTER   PIKE STUART LLC, a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
BY:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   President
    

 

27

 

	
WITNESS:
    	
 
    	
PURCHASER:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
WE   APP I Holdings LLC, a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
    By:
    	
WP   APP I, LLC, its sole member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
WE   APP I Manager, LLC, its
    
	
Name:
    	
 
    	
 
    	
 
    	
Manager
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
Winstanley   Enterprises LLC, its
    
	
 
    	
 
    	
 
    	
 
    	
Manager
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
Adam   Winstanley
    
	
 
    	
 
    	
 
    	
 
    	
Its:
    	
Manager
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
ESCROW   AGENT
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
CHICAGO   TITLE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

28

 

LIST OF EXHIBITS

 

[see Document # 43769357 for exhibits]

 

	
Exhibit A
    	
 
    	
Property   Information and Purchase Price Allocation
    
	
Exhibit A-1
    	
 
    	
Legal   Description of 421 South 29th Boulevard, Upper Darby, Pennsylvania
    
	
Exhibit A-2
    	
 
    	
Legal   Description of 130 White Horse Pike, Lawnside, New Jersey
    
	
Exhibit A-3
    	
 
    	
Legal   Description of 4055 Merrick Road, Seaford, New York
    
	
Exhibit A-4
    	
 
    	
Legal   Description of 1764 Grand Avenue, Baldwin, New York
    
	
Exhibit A-5
    	
 
    	
Legal   Description of 92 1 0 Grand Avenue, Queens, New York
    
	
Exhibit A-6
    	
 
    	
Legal   Description of 3901 Lancaster Pike, Wilmington, Delaware
    
	
Exhibit B-1
    	
 
    	
Form of   Supermarket Lease for 421 South 29th Boulevard, Upper Darby, Pennsylvania
    
	
Exhibit B-2
    	
 
    	
Form of   Supermarket Lease for 1 30 White Horse Pike, Lawnside, New Jersey
    
	
Exhibit B-3
    	
 
    	
Form of   Supermarket Lease for 4055 Merrick Road, Seaford, New York
    
	
Exhibit B-4
    	
 
    	
Form of   Supermarket Lease for 1764 Grand Avenue, Baldwin, New York
    
	
Exhibit B-5
    	
 
    	
Form of   Supermarket Lease for 9210 Grand Avenue, Queens, New York
    
	
Exhibit B-6
    	
 
    	
Form of   Supermarket Lease for 3901 Lancaster Pike, Wilmington, Delaware
    
	
Exhibit C-1
    	
 
    	
Rent   Roll
    
	
Exhibit C-2
    	
 
    	
Ground   Leases
    
	
Exhibit C-3
    	
 
    	
Surveys
    
	
Exhibit C-4
    	
 
    	
Title   Conditions
    
	
Exhibit C-5
    	
 
    	
Partial   List of Permitted Encumbrances
    
	
Exhibit D-1
    	
 
    	
Form of   New Jersey Deed
    
	
Exhibit D-2
    	
 
    	
Form of   New York Deed
    
	
Exhibit D-3
    	
 
    	
Form of   Pennsylvania Deed
    
	
Exhibit D-4
    	
 
    	
Form of   Delaware Deed
    
	
Exhibit E
    	
 
    	
Form of   Existing Leases Assignment
    
	
Exhibit F
    	
 
    	
Forms   of Ground Lease Assignment
    
	
Exhibit G
    	
 
    	
Form of   Existing Tenant Attornment Letter
    
	
Exhibit H
    	
 
    	
Form of   FIRPTA Certificate
    
	
Exhibit I
    	
 
    	
List   of Environmental Reports
    
	
Exhibit J
    	
 
    	
Sales   and EBITDA Information
    
	
Exhibit K
    	
 
    	
Form of   Existing Tenant Estoppel
    
	
Exhibit L
    	
 
    	
Forms   of Ground Landlord Consent and Estoppel
    
	
Exhibit M
    	
 
    	
Form of   Secretary’s Certificate
    

 

29

 

Agreement of Sale and Leaseback

 

EXHIBITS

 

30

 

EXHIBIT A

 

PROPERTY INFORMATION AND PURCHASE PRICE ALLOCATION

 

 

31

 

EXHIBIT A-1

 

Legal Description

 

421 South 69th Blvd.

Upper Darby, PA

 

PREMISES A:

 

ALL THAT CERTAIN lot or piece of ground with the improvements thereon erected, Situate in the Township of Upper Darby, County of Delaware and State of PA and described according to Property Topographic Plan made for Supermarkets General Corporation by H. Gilroy Damon Associates, Inc., Civil Engineers, Sharon Hill, PA, dated 5/10/1985 as follows, to wit:

 

BEGINNING at a point in the center line of Heather Road (40 feet wide) at the distance of 120.13 feet measured South 26 degrees 8 minutes 15 seconds West from the center line of Marshall Road (60 feet wide) and the extended center line of Heather Road; thence extending along the center line of Heather Road, South 26 degrees 8 minutes 15 seconds West 208.40 feet to a point; thence leaving the said center line of Heather Road and extending North 73 degrees 32 minutes 1 second West 76.61 feet to a point; thence extending South 33 degrees 56 minutes 52 seconds West 45.89 feet to a point; thence extending North 60 degrees 17 minutes 3 second West 95.59 feet to a point; thence extending North 18 degrees 41 minutes 45 seconds West 159.16 feet to a point; thence extending North 1 degree 51 minutes 53 seconds East 44.50 feet to a point in the center line of a 10 feet wide alley; thence extending along center line of said 10 feet wide alley; North 59 degrees 30 minutes 15 seconds East 33.53 feet to a point of curve; thence still along said center line of said alley on a line curving to the right with a radius of 160 feet, the arc distance of 150.80 feet to a point of tangency; thence still further along the center line of said alley South 66 degrees 29 minutes 45 seconds East 163.13 feet to a point in the center line of Heather Road being the first mentioned point and place of beginning.

 

TOGETHER with and subject to the use of Heather Road as proposed (40 feet wide).

 

TOGETHER with the free and common use, right, liberty and privilege of the aforesaid alley, as and for an alley passageway and watercourse at all times hereafter, forever in common with the owners, tenants and occupiers of the other lots of ground bounding thereon and entitled to the use thereof.

 

SUBJECT however, to the proportionate part of the expense of keeping said alley in good order, condition and repair.

 

PREMISES B:

 

ALL THAT CERTAIN lot or piece of ground with the buildings and improvements thereon erected, Situate in the Township of Upper Darby, County of Delaware and Commonwealth of PA, described according to a Plan made for Supermarkets General

 

32

 

Corporation by H. Gilroy Damon Associates, Inc., Civil Engineers, Sharon Hill, PA, dated 10/14/1977 and last revised 5/2/1978 as follows, to wit:

 

BEGINNING at a point on the Northeast side of Sixty Ninth Street (70 feet wide) at the distance of 90.48 feet measured South 36 degrees 24 minutes 12 seconds East along the said side thereof from its intersection with the Southeast side of Marshall Road (60 feet wide); thence along the middle of a 10 feet wide alley; North 59 degrees 30 minutes 15 seconds East 240.27 feet to a spike; thence North 30 degrees 29 minutes 45 seconds West crossing an iron pipe on the Southeast side of Marshall Road 90 feet from said last mentioned point the distance of 126.27 feet to a point in the bed of Marshall Road; thence along the title line in the bed of Marshall Road, North 62 degrees 32 minutes 15 seconds East 102.72 feet to a point; thence still along the title line in the bed of Marshall Road, North 59 degrees 47 minutes 15 seconds East 68.06 feet to a point; thence leaving the bed of Marshall Road and extending on a course of South 1 degree 51 minutes 53 seconds West crossing said 10 feet wide alley, 187.06 feet to a monument; thence South 18 degrees 41 minutes 45 seconds East 159.72 feet to a stone; thence South 60 degrees 17 minutes 3 seconds East 95.08 feet to a stone; thence North 33 degrees 56 minutes 52 seconds East 45.89 feet to a marble stone; thence South 73 degrees 32 minutes 1 second East 52.66 feet to a spike in a tree; thence South 55 degrees 19 minutes 25 seconds East 166.46 feet to a concrete monument; thence South 42 degrees 57 minutes 45 seconds West 80 feet to a pipe; thence South 47 degrees 2 minutes 15 seconds East 101.17 feet to a point on the Northwest side of Kent Road; thence along the side of the cul-de-sac at the end of Kent Road, the two following courses and distances (1) South 87 degrees 37 minutes 37 seconds West 35.86 feet to a spike (2) on the arc of a circle curving to the left with a radius of 30 feet the arc distance of 112.07 feet the chord of said arc bearing South 19 degrees 23 minutes 35 seconds East and distance being 57.37 feet to a pipe; thence South 53 degrees 35 minutes 18 seconds West 36.94 feet to a pipe; thence North 36 degrees 24 minutes 12 seconds West 65 feet to a pipe; thence South 53 degrees 35 minutes 18 seconds West 30 feet to a pipe; thence North 36 degrees 24 minutes 12 seconds West 125 feet to a pipe; thence South 53 degrees 35 minutes 18 seconds West 250 feet to a pipe on the Northeast side of Sixty Ninth Street; thence along the Northeast side thereof, North 36 degrees 24 minutes 12 seconds West 451.31 feet to the first mentioned point and place of beginning.

 

TOGETHER with and subject to the free and common use of the aforesaid 10 feet wide driveway which extends Eastward and Westward into and from Sixty Ninth as and for a driveway and passageway at all times hereafter, forever in common with the other owners, tenants and occupiers of the premises adjoining thereof.

 

SUBJECT to the proportionate part of the expense of maintaining and keeping the same in good order and repair.

 

33

 

Tax ID / Parcel No. 16-01-01572-01 

 

AS SURVEYED DESCRIPTION:

 

METES AND BOUNDS DESCRIPTION

FOLIO #16-01-00907-00

PREMISES “A”

LANDS NOW OR FORMERLY

UPPER DARBY STUART, INC.

UPPER DARBY TOWNSHIP, DELAWARE COUNTY

COMMONWEALTH OF PENNSYLVANIA

 

BEGINNING AT A POINT AT THE PROPOSED CENTER LINE OF HEATHER ROAD (40 FOOT WIDE RIGHT-OF-WAY, UNOPENED) AT THE INTERSECTION OF THE DIVIDING LINE BETWEEN FOLIO #16-01-00907-00, PREMISES “A”, LANDS NOW OR FORMERLY UPPER DARBY STUART, INC. AND FOLIO #16-01-00906-00, LANDS NOW OR FORMERLY GULER AND GULER SAID POINT BEING DISTANT 120.13 FEET ON A COURSE OF SOUTH 26 DEGREES 08 MINUTES 15 SECONDS WEST FROM THE INTERSECTION OF THE CENTER LINE OF HEATHER ROAD AND THE CENTER LINE OF MARSHALL ROAD (60 FOOD WIDE RIGHT-OF-WAY) AND FROM SAID POINT OF BEGINNING RUNNING, THENCE;

 

1.                                  ALONG THE DIVIDING LINE BETWEEN FOLIO #16-01-00907-00, PREMISES “A” AND FOLIO #16-01-00906-00, SOUTH 26 DEGREES 08 MINUTES 15 SECONDS WEST, A DISTANCE OF 208.40 FEET TO A POINT, THENCE;

 

2.                                  ALONG THE COMMON DIVIDING LINE BETWEEN FOLIO #16-01-00907-00, PREMISES “A”; FOLIO #16-01-01572-01, PREMISES “B”, LANDS NOW OR FORMERLY UPPER DARBY STUART, LLC AND FOLIO #16-01-01572-04, LANDS NOW OR FORMERLY GULER, NORTH 73 DEGREES 32 MINUTES 01 SECONDS WEST, A DISTANCE OF 76.61 FEET TO A POINT, THENCE;

 

THE FOLLOWING FOUR (4) COURSES AND DISTANCES ALONG THE DIVIDING LINE BETWEEN FOLIO #16-01-00907-00, PREMISES “A” AND FOLIO #16-01- 01572-01, PREMISES “B”:

 

3.                                  SOUTH 33 DEGREES 56 MINUTES 52 SECONDS WEST, A DISTANCE OF 45.89 FEET TO A POINT, THENCE;

 

4.                                  NORTH 60 DEGREES 17 MINUTES 03 SECONDS WEST, A DISTANCE OF 95.59 FEET TO AN ANGLE POINT, THENCE;

 

5.                                  NORTH 18 DEGREES 41 MINUTES 45 SECONDS WEST, A DISTANCE OF 159.16 FEET TO AN ANGLE POINT, THENCE;

 

34

 

6.                                  NORTH 01 DEGREES 51 MINUTES 53 SECONDS EAST, A DISTANCE OF 44.50 FEET TO A P.K. NAIL, THENCE;

 

7.                                  ALONG THE DIVIDING LINE BETWEEN FOLIO #16-01-00907-00, PREMISES “A” FOLIO #16-01-00922-00, LANDS NOW OR FORMERLY FELICE, NORTH 59 DEGREES 30 MINUTES 15 SECONDS EAST, A DISTANCE OF 33.53 FEET TO A POINT OF CURVATURE, THENCE;

 

8.                                  ALONG THE COMMON DIVIDING LINE BETWEEN FOLIO #16-01-00907-00, PREMISES “A”; FOLIO #16-01-00922-00; FOLIO #16-01-00921-00, LANDS NOW OR FORMERLY AMBROSE; FOLIO #16-01-00920-00, LANDS NOW OR FORMERLY JEFFKIN; FOLIO #16-01-00919-00, LANDS NOW OR FORMERLY OGUNKORODE; FOLIO #16-01-00918-00, LANDS NOW OR FORMERLY GERMICHALOS; FOLIO #16-01-00917-00, LANDS NOW OR FORMERLY SINGH; FOLIO #16-01-00916-00, LANDS NOW OR FORMERLY JOHNSON; FOLIO #16-01- 00915-00, LANDS NOW OR FORMERLY JOHNSON AND FOLIO #16-01-00914-00, LANDS NOW OR FORMERLY AHMED, ALONG THE ARC OF A CIRCLE CURVING TO THE RIGHT, HAVING A RADIUS OF 160.00 FEET, A CENTRAL ANGLE OF 54 DEGREES 00 MINUTES 05 SECONDS, AN ARC LENGTH OF 150.80 FEET, A CHORD BEARING NORTH 86 DEGREES 30 MINUTES 13 SECONDS EAST AND A CHORD DISTANCE OF 145.28 FEET TO A POINT OF TANGENCY, THENCE;

 

9.                                  ALONG THE COMMON DIVIDING LINE BETWEEN FOLIO #16-01-00907-00, PREMISES “A”; FOLIO #16-01-00914-00; FOLIO #16-01-00913-00, LANDS NOW OR FORMERLY ANAM AND AHMED; FOLIO #16-01-00912-00, LANDS NOW OR FORMERLY DAVIS; FOLIO #16-01-00911-00, LANDS NOW OR FORMERLY SCOTT; FOLIO #16-01-00910-00, LANDS NOW OR FORMERLY IQBAL; FOLIO #16-01-00909-00, LANDS NOW OR FORMERLY HOSSAIN; FOLIO #16-01-00908- 00, LANDS NOW OR FORMERLY GULER AND A LOT WHERE OWNER INFORMATION IS NOT AVAILABLE, SOUTH 66 DEGREES 29 MINUTES 45 SECONDS EAST, A DISTANCE OF 163.13 FEET TO THE POINT AND PLACE OF BEGINNING.

 

CONTAINING 62,068 SQUARE FEET OR 1.425 ACRES

 

35

 

METES AND BOUNDS DESCRIPTION

FOLIO #16-01-01572-01

PREMISES “B”

LANDS NOW OR FORMERLY

UPPER DARBY STUART, LLC

UPPER DARBY TOWNSHIP, DELAWARE COUNTY

 

BEGINNING AT A POINT ON THE NORTHEASTERLY RIGHT-OF-WAY LINE OF SIXTY-NINTH STREET (70 FOOT WIDE RIGHT-OF-WAY) AT ITS INTERSECTION WITH THE DIVIDING LINE BETWEEN FOLIO #16-01-01572-0 1, PREMISES “B”, LANDS NOW OR FORMERLY UPPER DARBY STUART, LLC. AND FOLIO #16-01-00924-00, LANDS NOW OR FORMERLY DAVIDART CORP. SAID POINT BEING DISTANT 90.48 FEET ON A COURSE OF SOUTH 36 DEGREES 24 MINUTES 12 SECONDS EAST FROM A POINT CONNECTING THE NORTHEASTERLY RIGHT-OF-WAY LINE OF SIXTY-NINTH STREET WITH THE SOUTHERLY RIGHT-OF-WAY LINE OF MARSHALL ROAD (60 FOOT WIDE RIGHT-OF-WAY) AND FROM SAID POINT OF BEGINNING RUNNING, THENCE;

 

THE FOLLOWING TWO (2) COURSES AND DISTANCES ALONG THE DIVIDING LINE BETWEEN FOLIO #16-01-01572-01, PREMISES “B” AND FOLIO #16-01-00924-00:

 

1.                                  NORTH 59 DEGREES 30 MINUTES 15 SECONDS EAST, A DISTANCE OF 239.12 FEET TO A REBAR, THENCE;

 

2.                                  NORTH 30 DEGREES 29 MINUTES 45 SECONDS WEST, A DISTANCE OF 126.27 FEET TO A P.K. NAIL ON THE SOUTHERLY RIGHT-OF-WAY LINE OF MARSHALL ROAD, THENCE;

 

THE FOLLOWING TWO (2) COURSES AND DISTANCES ALONG THE SOUTHERLY RIGHT-OF-WAY LINE OF MARSHALL ROAD:

 

3.                                  NORTH 62 DEGREES 32 MINUTES 15 SECONDS EAST, A DISTANCE OF 102.72 FEET TO A P.K. NAIL, THENCE;

 

4.                                  NORTH 59 DEGREES 47 MINUTES 15 SECONDS EAST, A DISTANCE OF 68.06 FEET TO A P.K. NAIL, THENCE;

 

5. ALONG THE COMMON DIVIDING LINE BETWEEN FOLIO #16-01-01572-01, PREMISES “B”; FOLIO #16-01-00922-00, LANDS NOW OR FORMERLY FELICE AND FOLIO #16-01-00907-00, PREMISES “A”, LANDS NOW OR FORMERLY UPPER DARBY STUART, INC., SOUTH 01 DEGREES 51 MINUTES 53 SECONDS WEST A DISTANCE OF 187.06 FEET TO AN ANGLE POINT, THENCE;

 

THE FOLLOWING FOUR (4) COURSES AND DISTANCES ALONG THE DIVIDING LINE BETWEEN FOLIO #16-01-01572-01 PREMISES “B” AND FOLIO #16-01- 00907-00, PREMISES “A”:

 

36

 

6.                                  SOUTH 18 DEGREES 41 MINUTES 45 SECONDS EAST, A DISTANCE OF 159.16 FEET TO AN ANGLE POINT, THENCE;

 

7.                                  SOUTH 60 DEGREES 17 MINUTES 03 SECONDS EAST, A DISTANCE OF 95.59 FEET TO A POINT, THENCE;

 

8.                                  NORTH 33 DEGREES 56 MINUTES 52 SECONDS EAST, A DISTANCE OF 45.89 FEET TO A POINT, THENCE;

 

9.                                  SOUTH 73 DEGREES 32 MINUTES 01 SECONDS EAST, A DISTANCE OF 52.66 FEET TO A REBAR, THENCE;

 

10.                            ALONG THE DIVIDING LINE BETWEEN FOLIO #16-01-01572-01, PREMISES “B” AND FOLIO #16-01-01572-04, LANDS NOW OR FORMERLY GULER, SOUTH 55 DEGREES 19 MINUTES 25 SECONDS EAST, A DISTANCE OF 166.46 FEET TO A POINT, THENCE;

 

11.                            ALONG THE COMMON DIVIDING LINE BETWEEN FOLIO #16-01-01572-01, PREMISES “B”; FOLIO #16-01-00746-00, LANDS NOW OR FORMERLY GULER AND FOLIO #16-01-00747-00, LANDS NOW OR FORMERLY SUKUEN, SOUTH 42 DEGREES 57 MINUTES 45 SECONDS WEST, A DISTANCE OF 80.00 FEET TO A POINT, THENCE;

 

12.                            ALONG THE DIVIDING LINE BETWEEN FOLIO #16-01-01572-01, PREMISES “B” AND FOLIO #16-01-00747-00, SOUTH 47 DEGREES 02 MINUTES 15 SECONDS EAST, A DISTANCE OF 101.17 FEET TO A POINT ON THE NORTHERLY RIGHT-OF-WAY LINE OF KENT ROAD (VARIABLE WIDTH RIGHT-OF-WAY), THENCE;

 

13.                            ALONG THE NORTHERLY RIGHT-OF-WAY LINE OF KENT ROAD, SOUTH 87 DEGREES 37 MINUTES 37 SECONDS WEST, A DISTANCE OF 35.86 FEET TO A POINT CONNECTING THE NORTHERLY RIGHT-OF-WAY LINE OF KENT ROAD WITH THE SOUTHERLY RIGHT-OF-WAY LINE OF KENT ROAD, THENCE;

 

14.                                 ALONG THE ARC OF A TANGENT CIRCLE CURVING TO THE LEFT HAVING A RADIUS OF 30.00 FEET, A CENTRAL ANGLE OF 214 DEGREES 02 MINUTES 24 SECONDS, AN ARC LENGTH OF 112.07 FEET, A CHORD BEARING SOUTH 19 DEGREES 23 MINUTES 35 SECONDS EAST AND A CHORD DISTANCE OF 57.37 FEET TO A POINT OF CUSP, THENCE;

 

THE FOLLOWING THREE (3) COURSES AND DISTANCES ALONG THE DIVIDING LINE BETWEEN FOLIO #16-01-01572-01, PREMISES “B” AND FOLIO #16-01- 01572-02, LANDS NOW OR FORMERLY KR 69TH STREET:

 

15.                            SOUTH 53 DEGREES 35 MINUTES 18 SECONDS WEST, A DISTANCE OF 36.94 FEET TO A P.K. NAIL, THENCE;

 

16.                            NORTH 36 DEGREES 24 MINUTES 12 SECONDS WEST, A DISTANCE OF 65.00 FEET TO A PIPE, THENCE;

 

37

 

17.                            SOUTH 53 DEGREES 35 MINUTES 18 SECONDS WEST, A DISTANCE OF 30.00 FEET TO A P.K. NAIL, THENCE;

 

THE FOLLOWING TWO COURSES AND DISTANCES ALONG THE DIVIDING LINE BETWEEN FOLIO #16-01-01572-01, PREMISES “B” AND FOLIO #16-01-01572-05, LANDS NOW OR FORMERLY K & C REAL ESTATE HOLDINGS COMPANY:

 

18.                            NORTH 36 DEGREES 24 MINUTES 12 SECONDS WEST, A DISTANCE OF 125.00 FEET TO A P.K. NAIL, THENCE;

 

19.                            SOUTH 53 DEGREES 35 MINUTES 18 SECONDS WEST, A DISTANCE OF 250.00 FEET TO A POINT ON THE NORTHEASTERLY RIGHT-OF-WAY LINE OF SIXTY-NINTH STREET, THENCE;

 

20.                            ALONG THE NORTHEASTERLY RIGHT-OF-WAY LINE OF SIXTY-NINTH STREET, NORTH 36 DEGREES 24 MINUTES 12 SECONDS WEST, A DISTANCE OF 451.26 FEET TO THE POINT AND PLACE OF BEGINNING.

 

CONTAINING 172,289 SQUARE FEET OR 3.955 ACRES

 

Being part of the same premises which Pathmark Stores, Inc., a Delaware Corporation by Deed dated 9-18-98 and recorded 10-27-98 in Delaware County in Volume 1787 Page 64 conveyed unto Upper Darby Stuart, Inc., a Delaware Corporation, in fee.

 

As to Premises “B”

 

BEING the same premises which Upper Darby Stuart, Inc., a Delaware Corporation, by Indenture bearing date 2/15/2000 and recorded 3/14/2000 in the Office of the Recorder of Deeds, in and for the County of Delaware in Volume 1991 page 213 etc., granted and conveyed unto Upper Darby Stuart, LLC, a Limited Liability Company, in fee.

 

38

 

EXHIBIT A-2

 

Legal Description

 

130 White Horse Pike

Lawnside, NJ

 

ALL that certain tract, lot and parcel of land lying and being in the Borough of Lawnside, County of Camden and State of New Jersey, being more particularly described as follows:

 

BEGINNING at a point on the northerly line of Gloucester Pike a.k.a. CR 659, said point being at the southerly end of the property line connecting the said line of the Gloucester Pike and the southeasterly line of White Horse Pike a.k.a. NJSH Rt 30 and continuing; thence

 

(1)     Along Gloucester Pike, North 89 degrees 56 minutes 00 seconds West distance of 690.56 feet to a point; thence

 

(2)     North 00 degrees 04 minutes 28 seconds West distance of 123.11 feet to a point and corner of an existing building; thence

 

(3)     Along said building, South 89 degrees 56 minutes 44 seconds East a distance of 19.25 feet to a point and corner of the aforementioned building; thence

 

(4)     Along said building, North 00 degrees 03 minutes 16 seconds East a distance of 84.09 feet to a point and corner of the aforementioned building; thence

 

(5)     Along said building, South 89 degrees 56 minutes 00 seconds East a distance of 4.65 feet to a point and corner of the aforementioned building; thence

 

(6)     North 00 degrees 21 minutes 02 seconds East a distance of 253. 12 feet to a point; thence

 

(7)     North 50 degrees 17 minutes 40 seconds East a distance of 222.76 feet to a point on the southwesterly line of White Horse Pike; thence

 

(8)     Along the White Horse Pike, South 39 degrees 42 minutes 20 seconds East a distance of 468.40 feet to a point; thence

 

(9)     South 50 degrees 17 Minutes 40 seconds West a distance of 138.00 feet to a point; thence

 

(10)         South 39 degrees 42 minutes 20 seconds East a distance of 150.00 feet to a point; thence

 

(11)         North 50 degrees 17 minutes 40 seconds East a distance of 150.00 feet to a point on the southwesterly line of White Horse Pike; thence

 

(12)         Along the White Horse Pike, South 39 degrees 42 minutes 20 seconds East a distance of 150 feet to a point; thence

 

39

 

(13) South 17 degrees 05 minutes 10 seconds West a distance of 21 .46 feet to the point and place of BEGINNING.

 

Being further described as follows:

 

BEGINNING at a P.K. nail & washer set in the northerly line of Gloucester Pike (A.K.A. Browning Road, Sandy Lane, County Route 659-Variable width right-of-way), said point of beginning being located on the bearing and distance of North 89 Degrees 36 minutes 00 seconds, a distance of 72.60 feet from the original point of beginning for this tract as previously set forth in Deed Book 4657, Page 154 and from said beginning point running; thence

 

1.     Along the northerly line of said Gloucester Pike, North 89 degrees 56 minutes 00 seconds West, a distance of 617.96 feet to a P.K. nail & washer set in line of the same; thence

 

2.     Along the dividing line between Lot 5 & Lot 4.02, Block 1401, following along or near that portion of a partition wall, North 00 degrees 04 minutes 28 seconds West, a distance of 123.71 feet to a point; thence

 

3.     Along or near the same, South 89 degrees 56 minutes 44 seconds East, a distance of 19.25 feet to a point; thence

 

4.     Along or near the same, North 00 degrees 03 minutes 16 seconds East, a distance of 84.09 feet to a point; thence

 

5.     Along or near the northerly face of a masonry building, South 89 degrees 56 minutes 00 seconds East, a distance of 4.65 feet to a point; thence

 

6.     Along the dividing line between Lot 5 & Lot 4.02, Block 1401, North 00 degrees 21 minutes 02 seconds East, a distance of 253.12 feet to a P.K. nail & washer set; thence

 

7.     Along the dividing line between Lot 5 & Lot 4, Block 1401, North 50 degrees 17 minutes 40 seconds East, a distance of 222.76 feet to a rebar with cap set; thence

 

8.     Along the southwesterly line of White Horse Pike (A.K.A. New Jersey State Highway U.S. Route 30, variable width right-of-way), South 39 degrees 42 minutes 20 seconds East, a distance of 468.40 feet to a point; thence

 

9.     Along the dividing line between Lot 5 & Lot 6, Block 1401, South 50 degrees 17 minutes 40 seconds West a distance of 138.00 feet to a P.K. nail & washer set; thence

 

10.         Along the same, South 39 degrees 42 minutes 20 seconds East, a distance of 150.00 feet to a P.K. nail & washer set; thence

 

11. Along the same, North 50 degrees 17 minutes 40 seconds East, a distance of 150.00 to a P.K. nail & washer set; thence

 

40

 

12.         Along the southwesterly line of the aforementioned White Horse Pike, South 39 degrees 42 minutes 20 seconds East, a distance of 91.44 feet to a P.K. nail & washer set at a point of curvature in the same; thence

 

13.         Along the same, on a curve to the right, having a radius of 80.00 feet turning a central angle of 25 degrees 35 minutes 24 seconds, an arc length of 35.73 feet, the cord of which bears South 26 degrees 54 minutes 38 seconds East, a chord distance of 35.43 feet to a P.K. nail & washer set at a point of compound curvature in the same; thence

 

14.         Along the same, on a curve to the right, having a radius of 20.00 feet, turning a central angle of 85 degrees 39 minutes 58 seconds an arc length of 29.90 feet, the chord of which bears South 28 degrees 43 minutes 03 seconds West, a chord distance of 27.19 feet to a P.K. nail & washer set at a point of compound curvature in the same; thence

 

15.         Still running along the same, on a curve to the right, having a radius of 140.00 feet turning a central angle of 18 degrees 30 minutes 58 seconds, an arc length of 45.24 feet, the chord of which bears South 80 degrees 48 minutes 31 seconds West, a chord distance of 45.05 feet to a P.K. nail & washer set at a point of tangency in the same; thence

 

16. Along the same, South 00 degrees 03 minutes 04 seconds East, a distance of 2.83 feet to the point and place of beginning.

 

Together with the benefit and burden of:

 

(a)                                       that certain Party Wall Agreement as contained in Deed Book 3117, Page 1150 dated July 9, 1969 and recorded July 15, 1969 between Supermarkets General Corporation and Bridge Stuart, Inc.

 

(b)                                      Terms and provisions of agreement between Bridge Stuart Inc., Jersey Stuart, Inc., John Hancock Mutual Life Insurance, Connecticut General Life Insurance and Supermarkets General Corporation dated August 27, 1970 and recorded September 1, 1970 in Deed Book 3164, Page 1194, Modification of Cross- Easement Agreement between Bridge Stuart Inc., Jersey Stuart, Inc., John Hancock Mutual Life Insurance, Connecticut General Life Insurance and Supermarkets General Corporation dated December 3, 1980 and recorded August 5, 1981 in Deed Book 3791, Page 418 and Amendment of Cross-Easement Agreement by Plainbridge, Inc. dated August 10, 2000 and recorded in Deed Book 5113, Page 168.

 

For Information Only:

 

The land referred to herein is commonly known as Lot(s) 5, Block 1401 on the Tax Map of the Borough of Lawnside, in the County of Camden.

 

41

 

EXHIBIT A-3

 

Legal Description

 

4055 Merrick Road

Seaford, NY

 

SECTION 57 BLOCK G LOT(s) 323 ON THE TAX MAP OF NASSAU COUNTY

 

ALL that certain plot, piece or parcel of land, situate, lying and being at Seaford, Town of Hempstead, County of Nassau and State of New York, bounded and described as follows:

 

BEGINNING at a point lying in the easterly side of Washington Avenue, distant 82.03 feet northerly from the corner formed by the intersection of the easterly side of Washington Avenue with the northerly side of Merrick Road, as widened;

 

RUNNING THENCE along the easterly side of Washington Avenue, North 6 degrees 30 minutes 00 seconds East for a distance of 204.12 feet to land formerly of Graef;

 

THENCE along land formerly of Graef and formerly of J.C. Baylis, the following four courses and distances:

 

1.     South 84 degrees 31 minutes 50 seconds East for 316.39 feet.

2.     South 84 degrees 37 minutes 10 seconds East for 50.04 feet.

3.     South 84 degrees 19 minutes 00 seconds East for 45.00 feet.

4.     South 84 degrees 19 minutes 30 seconds East for 139.44 feet to land of the County of Nassau;

 

THENCE along land of the County of Nassau, South 2 degrees 51 minutes 45 seconds West for a distance of 224.20 feet to the northerly side of Merrick Road as widened;

 

THENCE along the northerly side of Merrick Road as widened, South 88 degrees 04 minutes 36 seconds West for a distance of 214.58 feet to a point;

 

THENCE still along the northerly side of Merrick Road as widened, South 87 degrees 32 minutes 33 seconds West for a distance of 128.43 feet to a point;

 

THENCE still along the northerly side of Merrick Road as widened, along the arc of a curve bearing to the left with a radius of 1882.00 feet for a distance of 81.61 feet to a point being 121.53 feet easterly from the corner formed by the intersection of the easterly side of Washington Avenue with the northerly side of Merrick Road, as widened;

 

THENCE North 01 degree 45 minutes 00 seconds West for a distance of 80.22 feet to a point;

 

THENCE South 88 degrees 15 minutes 00 seconds West for a distance of 26.10 feet to a point;

 

THENCE North 06 degrees 44 minutes 20 seconds East for a distance of 3.17 feet to a point;

 

THENCE North 84 degrees 53 minutes 20 seconds West for a distance of 108.29 feet to the easterly side of Washington Avenue and the point or place of BEGINNING.

 

42

 

EXHIBIT A-4

 

Legal Description

1764 Grand Avenue

Baldwin, NY

 

SECTION 36 BLOCK 409 LOT(s) 580, 592-595, 597, 598, 598 and 600 ON THE TAX MAP OF NASSAU COUNTY

 

ALL that certain plot, piece or parcel of land with the buildings and improvements thereon erected, situate lying and being at Baldwin, in the Town of Hempstead, County of Nassau, and the State of New York, bounded and described as follows:

 

BEGINNING at a point on the westerly side of Grand Avenue, distant 115.04 feet southerly from the corner formed by the intersection of the westerly side of Grand Avenue with the southerly side of Stowe Avenue;

 

RUNNING THENCE South 12 degrees 19 minutes 10 seconds East along the westerly side of Grand Avenue, 172.96 feet;

 

RUNNING THENCE South 78 degrees 54 minutes West, 145.29 feet;

 

RUNNING THENCE South 12 degrees 30 minutes East, 45.71 feet;

 

RUNNING THENCE North 80 degrees 32 minutes East 145.29 feet to the westerly side of Grand Avenue;

 

RUNNING THENCE South 12 degrees 19 minutes 10 seconds East along the westerly side of Grand Avenue, 214.81 feet;

 

RUNNING THENCE South 82 degrees 10 minutes West, 242.74 feet;

 

RUNNING THENCE South 12 degrees 19 minutes 10 seconds East, 111.16 feet;

 

RUNNING THENCE North 30 degrees 18 minutes West, 101.14 feet;

 

RUNNING THENCE South 50 degrees 33 minutes West, 61.34 feet;

 

RUNNING THENCE South 58 degrees 36 minutes West, 76.98 feet to land of the County of Nassau;

 

43

 

RUNNING THENCE along said land of the County of Nassau the following four courses and distances:

 

1.     North 23 degrees 17 minutes West, 119.76 feet;

2.     North 12 degrees 26 minutes 20 seconds West, 39.96 feet;

3.     North 1 degree 39 minutes 50 seconds West, 105.90;

4.     North 22 degrees 13 minutes 53 seconds West, 231.13 feet;

 

RUNNING THENCE North 77 degrees 56 minutes East, 443.63 feet to the westerly side of Grand Avenue, at the point or place of BEGINNING.

 

44

 

EXHIBIT A-5

 

Legal Description

 

92-10 Atlantic Avenue

Queens, NY

 

BLOCK 9027 LOT 11 AND BLOCK 9028 LOT 1 ON THE TAX MAP OF QUEENS COUNTY

 

Parcel 1 and 2 (Composite Description)

 

All that certain plot, piece or parcel of land with the buildings or improvements thereon, erected, situate, lying and being in the Borough and County of Queens, City and State of New York, bounded and described as follows:

 

BEGINNING at the corner formed by the intersection of the northwesterly line of 95th Avenue (a/k/a University Place, f/k/a Chichester Avenue) (60 feet wide) with the southwesterly line of 93rd Street (a/k/a Clinton Place, f/k/a Woodhaven Avenue) (60 feet wide) and from said point of BEGINNING;

 

RUNNING THENCE along said northwesterly line of 95th Avenue, South 40 degrees 26 minutes 58 seconds West, a distance of 299.96 feet to a point;

 

THENCE along the dividing line between Lot 1, Block 9028 and Lot 51 (n/f reputed owner 7 Horizon Corp.), Block 9027, the following three (3) courses and distances:

 

1.               NORTH 49 degrees 33 minutes 02 seconds West, a distance of 74.03 feet to a point;

 

2.               THENCE South 40 degrees 26 minutes 58 seconds West, a distance of 3.85 feet to a point;

 

3. THENCE North 49 degrees 33 minute 02 seconds West, a distance of 24.97 feet to a point;

 

THENCE along the dividing line between Lot 11, Lot 51 and Lot 65 (n/f reputed owner 7 Horizon Corp.), Block 9027, South 40 degrees 26 minutes 58 seconds West, a distance of 466.97 feet to a point;

 

THENCE along the dividing line between Lot 11 and Lot 80 (n/f reputed owner Realex Development Corporation) and Lot 8 (n/f reputed owner Sutton Associates, Inc.), Block 9027, North 49 degrees 33 minutes 02 seconds West, a distance of 301.65 feet the southeasterly line of Atlantic Avenue (LIRR division, 120.01 feet wide);

 

THENCE along said southeasterly line of Atlantic Avenue, North 40 degrees 26 minutes 58 seconds East, a distance of 50.48 feet to a point;

 

45

 

THENCE along the dividing line between Lot 11 and Lot 102 (n/f reputed owner Jack Sloane), Block 9027, the following five (5) courses and distances:

 

1.               SOUTH 49 degrees 33 minutes 02 seconds East, a distance of 38.53 feet to a point;

 

2.               THENCE North 40 degrees 26 minutes 58 seconds East, a distance of 19.75 feet to a point;

 

3.               THENCE South 49 degrees 33 minutes 02 seconds East, a distance of 15.00 feet to a point;

 

4.               THENCE North 40 degrees 26 minutes 58 seconds East, a distance of 45.00 feet to a point;

 

5.               THENCE North 49 degrees 33 minutes 02 seconds West, a distance of 15.00 feet a point;

 

THENCE continuing along the dividing line between Lot 11, Lot 102 and Lot 12 (n/f reputed owner Plainbridge, Inc.,) Block 9027, North 40 degrees 26 minutes 58 seconds East, a distance of 314.94 feet to a point;

 

THENCE continuing along the dividing line between Lot 11 and Lot 12, Block 9027, the following four (4) courses and distances:

 

1.               SOUTH 49 degrees 33 minutes 02 seconds East, a distance of 11.67 feet to a point;

 

2.               THENCE North 40 degrees 26 minutes 58 seconds East, a distance of 14.00 feet to a point;

 

3.               THENCE North 49 degrees 33 minutes 02 seconds West, a distance of 11.67 feet to a point;

 

4.               THENCE North 40 degrees 26 minutes 58 seconds East, a distance of 66.31 feet to a point;

 

THENCE along the dividing line between Lot 1, Block 9028 and Lot 12, Block 9027, North 49 degrees 33 minutes 02 seconds West, a distance of 38.53 feet to a point of the aforementioned southeasterly line of Atlantic Avenue;

 

THENCE along said southeasterly line of Atlantic Avenue, North 40 degrees 26 minutes 58 seconds East, a distance of 260.30 feet to a point on the aforementioned southwesterly line of 93rd Street;

 

46

 

THENCE along said southwesterly line of 93rd Street, South 49 degrees 33 minutes 02 seconds East, a distance of 400.65 feet to the corner aforesaid, the point or place of BEGINNING.

 

Together with the benefit and burden of that certain Declaration of Easement by Plainbridge, Inc. dated as of 1/11/1996 recorded 2/16/1996 in Reel 4278 Page 358. (affects Parcels 1 and 2)

 

47

 

BLOCK 9027, LOT(S) 51 AND 65 ON THE TAX MAP OF QUEENS COUNTY

 

Parcel 3

 

ALL that certain lot, piece or parcel of land, situate, lying and being at Woodhaven in the Fourth Ward of the Borough and County of Queens, City and State of New York, bounded and described as follows:

 

BEGINNING at a point on the northerly side of 95th Avenue, formerly University Place and Chichester Avenue distance 39.66 feet westerly from the corner formed by the intersection of the northerly side of 95th Avenue with the former westerly side of 92nd Street, discontinued and closed, (formerly Bigelow Avenue or Place);

 

RUNNING THENCE northerly at right angles to 95th Avenue, 74.03 feet;

 

THENCE westerly and parallel with 95th Avenue, 3.85 feet;

 

THENCE northerly at right angles to 95th Avenue, 24.97 feet;

 

THENCE westerly parallel with 95th Avenue, 466.97 feet;

 

THENCE southerly at right angles to 95th Avenue and part of the distance through a party wall, 99 feet to the northerly side of 95th Avenue;

 

THENCE easterly along said northerly side of 95th Avenue, 470.82 feet to the point or place of BEGINNING.

 

ALL the herein distances and dimensions being according to the United States Standard of Measurement.

 

Together with the benefit and burden of that certain Declaration of Easement by and between Supermarkets General Corporation and 7 Horizon Corp., dated as of August 7, 1987 and recorded November 17, 1987 in Reel 2494, Page 1380. (affects Parcels 1, 2 and a portion of Parcel 3)

 

48

 

EXHIBIT A-6

 

Legal Description

 

3901 Lancaster Pike

Wilmington, DE

 

Premises A:

 

ALL that certain lot, piece or parcel of land with the improvements erected thereon, situate in Christiana Hundred, New Castle County and State of Delaware, being more particularly bounded and described in accordance with that certain ALTA/ACSM Land Title Survey prepared by Van DeMark & Lynch, Inc. for Pathmark Stores, Inc. dated July 6, 1998, as revised (File No 333I6-L) as follows to wit:

 

BEGINNING at a monument found on the northeasterly side of the Lancaster Pike, (S.R. 48) said point being a corner for lands now or formerly of Pennmark Real Estate Group, L.L.C. (Deed Record 1848, Page 87), leased by Supermarkets General Corporation Deed Record X, Volume 110, Page 272, said northeasterly side of Lancaster Pike being distant northeasterly 53 feet therefrom at right angles thereto the centerline, said point Beginning distant the three following described courses and distances measured along the sides of the said Lancaster Pike from a corner of lands now or formerly of E.I. DuPont DeNemours & Company:

 

(1)     North 62 degrees 13 minutes 60 seconds West, 242.24 feet to a point,

(2)     North 27 degrees 08 minutes 30 seconds East, 5.63 feet to a set drill hole; and 

(3)     North 48 degrees 21 minutes 59 seconds West, 51.64 feet to the point of Beginning

 

THENCE from said point of Beginning and continuing along the various courses of the said northeast side of Lancaster Pike, the three following described courses and distances:

 

(1)     North 62 degrees 13 minutes 50 seconds West, 197.03 feet to a found monument;

(2)     North 70 degrees 23 minutes 36 seconds West, 53.52 feet to a found monument; and 

(3)     North 64 degrees 24 minutes 10 seconds West, 141.71 feet to a found monument in the line of lands said point being distant northeasterly 40.10 feet therefrom measured at right angles thereto the said centerline of the Lancaster Pike;

 

THENCE partially along the southeasterly line and along the northeasterly line of said lands now or formerly of Shellhorn & Hill Incorporated, the two following courses and distances: (1) North 18 degrees 18 minutes 30 seconds East, 106.42 feet to a set iron pin; and (2) North 62 degrees 13 minutes 50 seconds West 130.35 feet to a found monument in the line of lands now or formerly of Mother African UFCMP Church (Deed Record 1649, Page 27);

 

THENCE along lines of said lands now or formerly of Mother African UFCMP Church the three following described courses and distances;

 

49

 

(1)     North 28 degrees 21 minutes 00 seconds East, 40.00 feet to a found monument;

(2)     North 62 degrees 13 minutes 50 seconds West, 3.02 feet to a found monument; and 

(3)     North 27 degrees 35 minutes 03 seconds East, 250.00 feet to a point, a corner for lands now or formerly of Bellevue Office Plaza as shown on a Record Land Development Plan recorded in the Office of the Recorder of Deeds in and for New Castle County on Microfilm No. 6686;

 

THENCE, partially along the southwesterly line of said lands now or formerly of Bellevue Office Plaza, South 62 degrees 13 minutes 50 seconds East, 538.93 feet to a set nail, a corner for said lands leased by Supermarkets General Corporation;

 

THENCE THEREBY, South 27 degrees 08 minutes 30 seconds West, 382.02 feet to a point on the said northeasterly side of Lancaster Pike and the point and place of Beginning.

 

Premises B:

 

ALL that certain parcel of land situate in Christiana Hundred, New Castle County and State of Delaware, being more particularly bounded and described as follows, to wit:

 

Beginning at a point on the northeasterly side of Lancaster Turnpike, at 70 feet wide, said point of Beginning being North 62 degrees 13 minutes 50 seconds West 242.24 feet measured along the said northeasterly side of Lancaster Turnpike from a corner common to lands of Commonwealth Trust Co., and lands now or formerly of E.I. DuPont deNemours & Co.; thence from said point of Beginning and along said northeasterly side of the Lancaster Turnpike, North 62 degrees 13 minutes 50 seconds West, 50.00 feet to a point, a corner for lands now or formerly of Lancaster Investments, Inc.; thence thereby North 27 degrees 08 minutes 30 seconds East 400.02 feet to a corner; thence continuing along the said line of lands of Lancaster Investments, Inc., South 62 degrees 13 minutes 50 seconds East 50.00 feet to a point; thence by a new line through lands of Commonwealth Trust Co. South 27 degrees 08 minutes 30 seconds West 400.02 feet to the first mentioned point and place of Beginning. Be the contents thereof what they may.

 

50

 

EXHIBITS B-1 THROUGH B-6

 

SUPERMARKET LEASE FORMS

 

(Attached)

 

51

 

EXHIBIT B-1

 

LEASE FORM FOR UPPER DARBY, PA

 

52

 

KEY NO:

 

LEASE

 

BY AND BETWEEN

 

WE APP UPPER DARBY LLC,

LANDLORD

 

AND

 

PATHMARK STORES, INC.,

TENANT

 

DEMISED PREMISES

 

AT

 

421 SOUTH 69TH BOULEVARD, UPPER DARBY, PENNSYLVANIA

 

53

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
EXHIBITS
    	
1
    
	
2.
    	
DEMISED   PREMISES
    	
1
    
	
3.
    	
TERM
    	
2
    
	
4.
    	
RENEWAL   PERIODS
    	
2
    
	
5.
    	
RENT
    	
3
    
	
6.
    	
USE   AND OCCUPANCY
    	
5
    
	
7.
    	
TAXES
    	
7
    
	
8.
    	
SIGNAGE
    	
8
    
	
9.
    	
TRUE   LEASE
    	
8
    
	
10.
    	
REPAIRS
    	
9
    
	
11.
    	
INSURANCE
    	
9
    
	
12.
    	
REQUIREMENTS   OF LAW AND FIRE INSURANCE
    	
10
    
	
13.
    	
ALTERATIONS
    	
10
    
	
14.
    	
ACCESS   TO DEMISED PREMISES
    	
11
    
	
15.
    	
UTILITIES
    	
11
    
	
16.
    	
SUBORDINATION,   NON DISTURBANCE AND ATTORNMENT
    	
11
    
	
17.
    	
TRADE   FIXTURES
    	
12
    
	
18.
    	
ASSIGNMENT
    	
13
    
	
19.
    	
TITLE   AND AUTHORITY
    	
14
    
	
20.
    	
QUIET   ENJOYMENT
    	
15
    
	
21.
    	
UNAVOIDABLE   DELAYS
    	
15
    
	
22.
    	
END   OF TERM
    	
15
    
	
23.
    	
LANDLORD’S   DEFAULT
    	
16
    
	
24.
    	
ADDITIONAL   CHARGES
    	
16
    
	
25.
    	
TENANT’S   DEFAULT
    	
16
    
	
26.
    	
DESTRUCTION
    	
19
    
	
27.
    	
EMINENT   DOMAIN
    	
20
    
	
28.
    	
THIRD   PARTY LITIGATION
    	
21
    
	
29.
    	
WAIVER   OF DISTRAINT
    	
21
    
	
30.
    	
ESTOPPEL   CERTIFICATES
    	
21
    
	
31.
    	
NOTICES
    	
21
    

 

54

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
32.
    	
BROKER
    	
22
    
	
33.
    	
LIENS
    	
22
    
	
34.
    	
DEFINITION   OF LANDLORD
    	
22
    
	
35.
    	
ADJOINING   OR ADJACENT PROPERTY
    	
22
    
	
36.
    	
ENVIRONMENTAL   LAWS
    	
23
    
	
37.
    	
LEASEHOLD   MORTGAGE
    	
24
    
	
38.
    	
INDEMNITY
    	
26
    
	
39.
    	
LIMITATION   OF LANDLORD’S LIABILITY
    	
26
    
	
40.
    	
BOOKS   AND RECORDS
    	
27
    
	
41.
    	
SATELLITE   DISH
    	
27
    
	
42.
    	
NO   PRESUMPTION AGAINST DRAFTER
    	
27
    
	
43.
    	
SUCCESSORS   AND ASSIGNS; AFFILIATES
    	
27
    
	
44.
    	
CAPTIONS
    	
27
    
	
45.
    	
INVALIDITY   OF CERTAIN PROVISIONS
    	
27
    
	
46.
    	
CHOICE   OF LAW/JURISDICTION
    	
28
    
	
47.
    	
NO   WAIVER
    	
28
    
	
48.
    	
ATTORNEY’S   FEES
    	
28
    
	
49.
    	
WAIVER   OF TRIAL BY JURY
    	
28
    
	
50.
    	
MISCELLANEOUS
    	
28
    
	
51.
    	
COUNTERPARTS
    	
29
    
	
52.
    	
INCORPORATION   OF STATE LAW PROVISIONS
    	
29
    

 

55

 

LEASE

 

THIS LEASE (this “Lease”), made as of November           2010 (the “Effective Date”), by and between WE APP UPPER DARBY LLC, a Delaware limited liability company with an office c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 Attn: Adam Winstanley (hereinafter called “Landlord”), and PATHMARK STORES, INC., a Delaware corporation, having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”). This Lease is guaranteed by The Great Atlantic & Pacific Tea Company, Inc., a Maryland corporation (“Guarantor”) pursuant to a guaranty of even date herewith (as the same may be amended, supplemented or modified from time to time, the “Guaranty”).

 

WITNESSETH:

 

Landlord and Tenant covenant and agree as follows:

 

1.           EXHIBITS. The following Exhibits are annexed hereto and made a part hereof:

 

A.             Exhibit A, Site Plan of the Demised Premises;

 

B.              Exhibit B1, Legal Description of the Land;

 

C.              Exhibit B2, Existing Encumbrances on Land

 

D.              Exhibit C, Remedial Work

 

E.              Exhibit D, Form of Subordination, Non-Disturbance and Attornment Agreement;

 

F.              Exhibit E, Memorandum of Lease;

 

G.              Exhibit F, Form of Guaranty;

 

H.              Exhibit G, Insurance Requirements;

 

I.               Exhibit H, Percentage Rent;

 

J.               Exhibit I, Local Law Addendum; and

 

K.              Exhibit J, Confidentiality Agreement.

 

2.           DEMISED PREMISES.

 

A. Landlord hereby leases to Tenant and Tenant hereby takes from Landlord that certain parcel of land (hereinafter called “Land”) commonly known as 421 South 69th Boulevard, Upper Darby, Pennsylvania and more particularly described on Exhibit B1 and the buildings and other improvements now or hereafter erected on the Land together with the benefit of and subject to any and all easements, appurtenances, rights and privileges and other matters of record now or hereafter arising including those described in Exhibit B2. The land is currently

 

56

 

improved by an existing building consisting of approximately 52,791 square feet of space (the “Building”), as more particularly shown on the Site Plan attached hereto as Exhibit A. The Building and any other buildings and improvements now or hereafter erected on the Land shall be hereinafter called “Improvements.” The Land and any Improvements are hereinafter collectively called the “Demised Premises.”

 

B. Tenant or its Affiliates owned or leased the Demised Premises prior to their being purchased by Landlord. Landlord shall have no obligation or risk whatsoever with respect to the condition of the Demised Premises, Tenant taking the Demised Premises “AS IS, WHERE IS, WITH ALL FAULTS”. Tenant acknowledges that it has had full opportunity to inspect the Demised Premises with engineering and other consultants of its choice. Tenant’s commencing possession under this Lease shall be deemed an acknowledgment that the condition of the Demised Premises is satisfactory. Tenant further acknowledges that neither Landlord nor any person acting under Landlord has made or implied any representations or warranties whatsoever concerning the Demised Premises, their condition or this Lease except as set forth in Section 19.

 

3.           TERM.

 

A.             The term of this Lease (“Term”) shall commence (the “Commencement Date”) on the Effective Date and shall continue to and include the date (the “Expiration Date”) that is twenty (20) years after the day before the Commencement Date if the Commencement Date is the first day of a month, or twenty (20) years after the last day of the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month.

 

B.              The term “Lease Year” shall mean the following: the first Lease Year shall be the 12 month period commencing on the Commencement Date if the Commencement Date is the first day of a month, or on the first day of the month immediately following the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month; and each succeeding 12 month period thereafter shall be a Lease Year.

 

4. RENEWAL PERIODS. Tenant shall have the right and option to extend the Term of this Lease from the date upon which it would otherwise expire for ten (10) separate consecutive renewal periods of five (5) years each (each such period being hereinafter called a “Renewal Period”) upon the same terms and conditions as are herein set forth except the rent for such Renewal Period shall be as provided in Section 5 below; provided, however, that at the time of so electing to extend and also at the time any Renewal Period commences Tenant is not in default beyond any applicable notice and cure period, and this Lease is then in full force and effect. If Tenant fails timely so to exercise its option for any Renewal Period, time being of the essence, Tenant shall have no further extension rights hereunder. All references to the Term shall mean the Initial Term as it may be extended by any Renewal Period. If Tenant elects to exercise any one or more of said options to renew, it shall do so by giving written notice (“Renewal Notice”) of such election to Landlord at any time during the term of this Lease (including any Renewal Periods) on or before the date which is three hundred sixty five (365) days before the beginning of the Renewal Period or Renewal Periods for which the term hereof is to be renewed by the exercise of such option or options. If Tenant elects to exercise any one or more of said options to renew by serving a Renewal Notice in accordance with the foregoing, the

 

57

 

Term of this Lease shall be automatically extended for the Renewal Period(s) covered by the Renewal Notice without execution of an extension or renewal lease. If Tenant shall not have given notice of such election to Landlord by such date in respect of any Renewal Period, Landlord shall (unless notice shall have been given as hereinafter specifically permitted) give notice to Tenant that Tenant has failed to give notice of such election to Landlord (hereinafter called the “Option Notice”). Tenant’s time to give notice of such election shall continue until the date which is sixty (60) days after receipt of the Option Notice. Landlord shall not give the Option Notice prior to the date which is four hundred twenty-five (425) days before the Expiration Date. If Landlord shall not have given the Option Notice prior to the date which is four hundred twenty-five (425) days before the beginning of the next succeeding Renewal Period, the term of this Lease shall be extended beyond the Expiration Date to the date which is four hundred twenty-five (425) days after the date on which the Option Notice is given by Landlord.

 

5.               RENT.

 

A. Beginning on the Commencement Date and continuing throughout the Term, Tenant covenants and agrees to pay Landlord for the Demised Premises, without previous demand therefor, fixed annual rent (“Fixed Annual Rent”) as follows:

 

	
Lease Year
    	
 
    	
Fixed Annual Rent
    	
 
    	
Fixed Monthly Rent
    	
 
    
	
1-5
    	
 
    	
$
    	
1,059,420.00
    	
 
    	
$
    	
88,285.00
    	
 
    
	
6-10
    	
 
    	
$
    	
1,112,391.00
    	
 
    	
$
    	
92,699.25
    	
 
    
	
11-15
    	
 
    	
$
    	
1,168,010.55
    	
 
    	
$
    	
97,334.21
    	
 
    
	
16-20
    	
 
    	
$
    	
1,226,411.08
    	
 
    	
$
    	
102,200.92
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
First Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
21-25
    	
 
    	
$
    	
1,287,731.63
    	
 
    	
$
    	
107,310.97
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Second Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
26-30
    	
 
    	
$
    	
1,352,118.21
    	
 
    	
$
    	
112,676.52
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Third Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
31-35
    	
 
    	
$
    	
1,419,724.12
    	
 
    	
$
    	
118,310.34
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fourth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
36-40
    	
 
    	
$
    	
1,490,710.33
    	
 
    	
$
    	
124,225.86
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
41-45
    	
 
    	
$
    	
1,565,245.85
    	
 
    	
$
    	
130,437.15
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
46-50
    	
 
    	
$
    	
1,643,508.14
    	
 
    	
$
    	
136,959.01
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Seventh Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5 1-55
    	
 
    	
$
    	
1,725,683.55
    	
 
    	
$
    	
143,806.96
    	
 
    

 

58

 

	
Eighth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
56-60
    	
 
    	
$
    	
1,811,967.72
    	
 
    	
$
    	
150,997.31
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ninth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
61-65
    	
 
    	
$
    	
1,902,566.11
    	
 
    	
$
    	
158,547.18
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tenth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
66-70
    	
 
    	
$
    	
1,997,694.41
    	
 
    	
$
    	
166,474.53
    	
 
    

 

B.              All Fixed Annual Rent shall be payable by Tenant in equal monthly installments in advance on the first day of every calendar month during the Term of this Lease (and any Renewal Periods), and shall be payable at the office of the Landlord first above set forth or at such other address as Landlord shall have given in a notice to Tenant) in current U.S. currency by check drawn on a clearinghouse bank and payable directly to Landlord (or, if requested by Landlord from time to time by electronic fund transfer, to an account designated by Landlord). Rent for a part of a month shall be prorated on a daily basis and paid on the Commencement Date. Further, the rent for the first full month shall be paid on the Commencement Date.

 

C.              Beginning on the Commencement Date and continuing throughout the Term, Tenant covenants and agrees to pay, without previous demand therefor, all sums other than Fixed Annual Rent due under or required to be paid by this Lease (all of the foregoing being “Additional Rent” regardless of however defined or described in this Lease).

 

D. It is the intention of the parties hereto that the Fixed Annual Rent payable hereunder shall be net to Landlord free of cost, charge, offset, diminution or other deduction, so that this Lease shall yield to Landlord the net Fixed Annual Rent specified herein during the Term of this Lease. Notwithstanding applicable law to the contrary and with the sole exception of those costs, expenses and obligations expressly stated in this Lease to be the sole responsibility of Landlord (or the responsibility of third parties as provided in Section 36C), all costs, expenses and obligations of every kind and nature whatsoever relating to this Lease, the Demised Premises or imposed on Landlord under applicable law either now existing or hereafter enacted and whether or not within the contemplation of the parties on account of this Lease, the Demised Premises or Landlord’s interest in the Demised Premises are assumed and shall be paid by Tenant when and as due as Additional Rent. Without limiting the generality of the foregoing, Tenant shall at its sole expense (which expense shall be deemed Additional Rent hereunder) be responsible for payment of all Taxes, all electricity, telecommunication service, gas, water, sewer, telephone, refuse disposal, and other charges for utilities and services supplied to the Demised Premises, insurance costs, amounts due under any title encumbrance matter described in Exhibit B2, and all costs of cleaning, maintaining, repairing and replacing the Demised Premises or any portion thereof and of complying with all laws now existing or hereafter enacted including all Environmental Laws (defined below). Any cost, expense or obligation directly relating to the Demised Premises that is not expressly declared in this Lease to be that of Landlord shall be deemed to be an obligation of Tenant to be performed by Tenant at Tenant’s sole expense, and to the greatest extent permitted by law Tenant shall indemnify and defend Landlord against, and hold Landlord harmless from, the same, and Tenant’s liability for the payment and performance of such amounts and obligations that shall arise during the Term is

 

59

 

hereby expressly provided to survive the expiration of the Term or early termination of this Lease. Fixed Annual Rent, Additional Rent, and all other sums payable hereunder by Tenant, shall be paid without notice or demand, and without set off, counterclaim, recoupment, abatement, suspension, deduction, or defense (other than payment) whatsoever. Except as otherwise expressly set forth in this Lease with respect to certain events of casualty in Section 26 or condemnation in Section 27, Tenant shall in no event have any right to terminate this Lease, and any right so to terminate (or to abate, suspend, set off or otherwise deduct from Fixed Annual Rent or Additional Rent) under applicable law is hereby waived to the greatest extent permitted by law. It is the intention of the parties that the obligations of Tenant hereunder shall be separate and independent covenants and shall not be discharged or otherwise affected by any law or regulation now or hereafter applicable to the Demised Premises or any other restriction on Tenant’s use, and that Fixed Annual Rent, Additional Rent, and all other sums payable by Tenant hereunder shall continue to be payable in all events, and that the obligations of Tenant hereunder shall continue unaffected throughout the Term. Landlord, at its sole cost and expense, shall be responsible for the following: (i) payment of any amounts relating to Fee Mortgages or other encumbrances or liens created by Landlord, (ii) management fees, administrative costs, professional fees and any other costs incidental to its fee ownership of the Demised Premises; and (iii) and cost, expense, or liability resulting from the negligent or willful misconduct of Landlord, its employees or agents.

 

E. If any person (other than an Affiliate of the initial Guarantor (being The Great Atlantic & Pacific Tea Company, Inc.) or a successor by merger of acquisition) becomes an assignee of this Lease or sublets all or substantially all of the Demised Premises or otherwise becomes or is a Tenant under this Lease, such occurrence shall be a Percentage Rent Event and the provisions of Exhibit H shall immediately become applicable for the remainder of the Term.

 

6.               USE AND OCCUPANCY.

 

A. The Demised Premises may be used and occupied for the operation of a supermarket, drugstore, automated teller machine, bank, all other uses customary and incidental to a supermarket and, so long as the Minimum Credit Test (defined in Section 25D) is then met, all other lawful purpose or purposes. Notwithstanding anything to the contrary contained in this Lease, Tenant shall not be obligated to open, to conduct or to remain open for the conduct of any business in the Demised Premises but shall nevertheless pay Fixed Annual Rent and all Additional Rent when and as the same is due. At all times Tenant shall comply with all laws, ordinances and bylaws, regulations, codes, (including, without limitation, the Americans With Disabilities Act of 1990, or “ADA”) permits, orders and conditions of any special permits or other governmental approvals (“law” or “laws”) applicable from time to time to the Demised Premises or Tenant or both, foreseen or unforeseen, and whether or not the same interfere with Tenant’s occupancy. Tenant shall procure all approvals, licenses and permits, in each case promptly giving Landlord true and complete copies of the same and all applications therefor. Tenant shall never overload any of the Building systems, including the floors and mechanical, electrical and structural systems, and shall also keep the Demised Premises equipped with appropriate safety appliances and comply with all requirements of insurance and of insurance inspection or rating bureaus. Tenant shall not itself, nor shall Tenant permit or suffer persons acting under Tenant to, either with or without negligence, injure, overload, deface, damage or otherwise harm the Demised Premises or any part thereof or use the Demised Premises contrary

 

60

 

to any law or in a manner likely to create any nuisance. It is intended that Tenant bear the sole risk of all present or future laws affecting the Demised Premises, and Landlord shall not suffer any reduction in any rent on account of the enforcement of laws.

 

B.              Subject to Landlord’s consent, not to be unreasonably withheld, delayed or conditioned, Tenant shall have the right to enter into agreements with utility companies creating easements in favor of the utility companies as are required in order to service the Demised Premises. Also subject to Landlord’s consent, not to be unreasonably withheld, delayed or conditioned, Tenant may enter into reciprocal parking agreements and easements for ingress and egress as are required in order to service the Demised Premises and any adjoining or adjacent land designated by Tenant. Landlord covenants and agrees to execute any and all documents, instruments or certificates reasonably required in connection with such matters to which it has given its consent, and to take all other action, in order to effectuate the same, all at Tenant’s cost and expense. In no event, however, shall Landlord be required to consent to nor shall Tenant have the power to enter into any easement or reciprocal parking agreement (i) that is for a term in excess of the term of this Lease (as the same may be renewed or extended) except for utility and access easements that may be perpetual or otherwise extend beyond the term of this lease, or (ii) that diminishes the economic value of the Land. Landlord further covenants and agrees, upon request of tenant, to convey without compensation therefor, insubstantial perimeter portions of the Land for highway or roadway purposes, to the state in which the demised premises are situate or any other municipal or governmental body, provided, however, that any such conveyance shall not constitute a taking (as defined in section 28 below) nor constitute grounds for tenant to terminate this Lease. Notwithstanding anything to the contrary or otherwise set forth herein, any encumbrance on the Demised Premises shall be subject to any requirements imposed by any Fee Mortgage (provided that Landlord shall reasonably cooperate with Tenant, at no out of pocket cost to Landlord, in connection with obtaining any requisite consent from any Fee Mortgagee as defined below).

 

C.              The provisions of this paragraph shall only apply if and only if the Minimum Credit Test is not met. If Tenant either gives Landlord written notice of Tenant’s intention to discontinue permanently the operation of its business in the Demised Premises or any part of the Demised Premises or discontinues the operation of its business in the Demised Premises or any part of the Demised Premises for a period of one (1) year for any reason (other than Destruction or Taking that pursuant to the applicable provisions of this Lease entitles Tenant to terminate this Lease), then Landlord may terminate this Lease as to the Demised Premises, or if applicable, the part of the Demised Premises with respect to which Tenant has given notice of its intention to discontinue, or in which Tenant has discontinued, its operations, by thirty (30) days’ written notice to Tenant of Landlord’s election to terminate this Lease (or, if applicable, Landlord’s election to terminate this Lease as to the part of the Demised Premises with respect to which Tenant has given notice of its intention to discontinue, or in which Tenant has discontinued, its operations). Tenant may override Landlord’s election only once by, as applicable, resuming operations of its business in the Demised Premises within twenty-five (25) days after receipt of Landlord’s notice or by rescinding its notice of its intention to discontinue its business in writing to Landlord delivered within twenty-five (25) days after receipt of Landlord’s notice.

 

61

 

7.               TAXES.

 

A.             Tenant shall, during the term of this Lease, as Additional Rent, pay and discharge punctually, as and when the same shall become due and payable, all taxes, special and general assessments, water rents, rates and charges, sewer rents and other governmental impositions and charges of every kind and nature whatsoever, extraordinary as well as ordinary, including rent and/or occupancy taxes (hereinafter collectively referred to as “Taxes”), and each and every installment thereof that shall or may during the term of this Lease, become due and payable, or liens upon the Demised Premises or any part thereof, together with all interest and penalties thereon, under or by virtue of all present or future laws, ordinances, requirements, orders, directives, rules or regulations of the Federal, State, County, Town and City Governments and of all other governmental authorities whatsoever (all of which shall also be included in the term “Taxes” as heretofore defined).

 

B.              To the extent permitted by law, Tenant or its designees shall have the right to apply for the conversion of any assessment for local improvements assessed during the term of this Lease in order to cause the same to be payable in annual installments. Landlord agrees to permit the application for the foregoing conversion to be filed in Landlord’s name, if necessary, and shall execute any and all documents, instruments or certificates reasonably requested by Tenant to accomplish the foregoing.

 

C.              Tenant shall be deemed to have complied with the covenants of this Lease if payment of Taxes shall have been made either within any period allowed by law or by the applicable governmental authority during which payment is permitted without penalty so long as the Taxes shall never become subject to a tax sale on the Demised Premises or subject Landlord to any civil or criminal liability. Tenant shall produce and exhibit to Landlord satisfactory evidence of payment prior to the expiration of any such period.

 

D.              All Taxes shall be apportioned pro rata between Landlord and Tenant in accordance with the respective portions of such year during which the Term shall be in effect. Notwithstanding anything to the contrary contained herein, if the Term hereof terminates prior to the date which would have been the expiration thereof but for the earlier termination, then Tenant shall pay those Taxes which would have been paid by Tenant to and including the term expiration date and this obligation shall expressly survive such termination.

 

E. So long as the requirements of Paragraph C of this Section are complied with, Tenant or its designees shall have the right to contest or review all Taxes by legal proceedings, or in such other manner as it may deem suitable. Tenant or its designees shall inform Landlord of any such proceedings and conduct such proceedings promptly at its own cost and expense, and free of any expenses to Landlord, and if necessary, in the name of and with the cooperation of Landlord (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant). Landlord shall execute all documents, instruments or certificates reasonably necessary and correct to accomplish the foregoing. Notwithstanding anything to the contrary or otherwise set forth herein, any such contest shall be subject to compliance with all applicable provisions of any Fee Mortgage (provided that Landlord shall reasonably cooperate with Tenant, at no material out of pocket cost to Landlord, in connection with such compliance).

 

62

 

F.              Landlord covenants and agrees that any refunds or rebates on account of Taxes paid by Tenant pursuant to the provisions of this Lease shall belong to Tenant. Any refunds received by Landlord shall be deemed trust funds and as such are to be received by Landlord in trust and paid to Tenant forthwith. Landlord will, upon the request of Tenant, sign any receipts that may be necessary to secure the payment of any such refund or rebate, directly to Tenant and/or will pay over to Tenant such refund or rebate as received by Landlord. Landlord further covenants and agrees on request of Tenant at any time, and from time to time, but without cost to Landlord, to make application individually (if legally required) or to join in Tenant’s application (if legally required) for separate tax assessments for such portions of the Demised Premises as Tenant shall at any time, and from time to time, reasonably designate. Landlord hereby agrees, upon request of Tenant, to execute all documents, instruments or certificates as shall reasonably be required by Tenant (so long as the same impose no material obligations on Landlord or expose Landlord to any liability).

 

G.              Nothing herein or in this Lease otherwise contained shall require or be construed to require Tenant to pay any inheritance, estate, succession, transfer, gift, franchise, income or profit taxes, that are or may be imposed upon Landlord, its successors or assigns, whether arising out of Landlord’s ownership of the Demised Premises, this Lease or otherwise; provided, however, that if at any time hereafter there is levied any tax on Landlord in lieu of real estate taxes based solely upon the ownership of real property, by property owners, in general, within the tax jurisdiction within which the Demised Premises are located, then such tax shall be considered to be an item of Taxes but for purposes of computing the amount of such tax payable by Tenant, the Demised Premises shall be deemed to be the sole real property owned by Landlord.

 

H. In the event that any fee mortgagee (“Fee Mortgagee”) requires the escrow of Real Estate Taxes or insurance premiums, Tenant shall pay to such Fee Mortgagee in escrow, on the first day of each and every month during the term of this Lease, one twelfth (1/12) of all estimated charges for the ensuing twelve (12) month period as reasonably estimated by the Fee Mortgagee based on current bills for same. Tenant shall deposit at least ten (10) days prior to the first date on which any interest or penalty will accrue such additional amounts as may be necessary so that there shall at all times be sufficient funds in escrow to pay such charges.

 

8.              SIGNAGE. Tenant and any assignee or subtenant of Tenant shall have the right to install, maintain and replace in, on or in front of any Improvement or location on the Demised Premises or in any part thereof such signs and advertising matter as Tenant, and with Tenant’s consent, any such assignee or subtenant of Tenant may desire, provided that Tenant shall comply with any applicable requirements of governmental authorities having jurisdiction and shall obtain any necessary permits for such purposes. As used in this Section, the word “sign” shall be construed to include any placard, pylon, logo, light or other advertising symbol or object, irrespective or whether same be temporary or permanent. All signs shall be Tenant’s personal property and shall be maintained and removed by Tenant upon termination of this Lease at Tenant’s sole expense.

 

9.              TRUE LEASE. It is the intent of Landlord and Tenant and the parties agree that this Lease is a true lease and that this Lease does not represent a financing agreement. Each party shall reflect the transaction represented hereby in all applicable books, records, and reports

 

63

 

(including income tax filings) in a manner consistent with “true lease” treatment rather than “financing” treatment.

 

10.            REPAIRS. Tenant shall, at all times during the Term of this Lease, and at its own cost and expense, keep and maintain or cause to be kept and maintained in repair and good condition the Building and improvements at any time erected on the Demised Premises. Without limitation, Tenant shall perform the Remedial Work described in Exhibit C. Landlord shall not be required to furnish services or facilities or to make any improvements, repairs, replacements or alterations in or to the Demised Premises whatsoever during the Term of this Lease. Without limiting the generality of the foregoing, Tenant shall be responsible for the entire Demised Premises and shall manage, maintain, repair, replace, clean, secure, protect, defend and keep in compliance with all governmental requirements, now existing or hereafter enacted, the Demised Premises and all improvements and appurtenances and all utilities, facilities, installations and equipment used in connection therewith, including all walls, all floor coverings, glass, windows, doors, partitions, exterior and interior lighting, signage, elevators, electrical, plumbing, heating, ventilating, fire protection and life safety, security and other building systems, water and sewage systems and other fixtures or equipment serving the Demised Premises, keeping the Demised Premises and all improvements and appurtenances in at least as good condition as on the Commencement Date. Without limitation, Tenant shall provide all cleaning, painting, janitorial services, rubbish disposal, periodic exterior waterproofing treatments to the Building, window caulking, maintenance of all gas, water, electric and other utility lines from public ways to the Demised Premises, and shall repair, maintain and replace all landscaping, roads, parking areas, and walkways appurtenant to the Demised Premises, and shall provide all snowplowing services thereto. Tenant shall provide a copy of all current vendor contracts, if any, relating to the foregoing to Landlord at least annually and from time to time otherwise upon Landlord’s request.

 

11.            INSURANCE.

 

A.             Tenant shall maintain at its own cost and expense insurance policies insuring against loss by fire, lightning, the perils of extended coverage and malicious mischief covering the Demised Premises and the other Improvements in the Demised Premises and other perils as more fully described in Exhibit G.

 

B.              So long as Tenant performs its obligations in Paragraph A of this Section, Landlord hereby waives all rights of recovery against Tenant and any other occupant(s) of the Demised Premises and any of their agents and employees for damage or destruction to any and all of the Improvements, including without limitation, the Building, arising out of fire or other casualty whether or not caused by acts or negligence of the aforementioned persons. Tenant hereby waives all rights of recovery against Landlord, its agents and employees for damage or destruction to any and all of the Improvements, including without limitation, the Building and to Tenant’s trade fixtures, equipment and inventory arising out of fire or other casualty whether or not caused by the acts or negligence of Landlord, its agents or employees.

 

C.              Tenant shall maintain at its own cost and expense public liability and other insurance in accordance with the requirements of Exhibit G.

 

64

 

D.              Any insurance required to be provided by Tenant pursuant to this Lease may be provided by blanket insurance covering the Demised Premises and other locations of Tenant, provided such blanket insurance complies with all of the other requirements of this Lease with respect to the type of insurance covered by blanket policies. If Tenant elects to insure the Demised Premises under any blanket insurance policy, Tenant shall furnish to Landlord a certificate of insurance showing the Demised Premises as a location insured under any such blanket insurance policy to the extent of the limits required in Exhibit G. Tenant shall furnish to Landlord and any Fee Mortgagee as to which Tenant has received a notice containing such mortgagee’s name and address a duplicate original copy or certificate of the policies of insurance required to be carried by Tenant.

 

E.              Notwithstanding anything to the contrary contained herein, Tenant may carry any required insurance on trade fixtures and equipment described in Section 17 under a program of self-insurance or to carry insurance with deductibles in excess of part or all of the amounts of insurance required under Exhibit G hereunder.

 

F. If Tenant fails to perform any covenant in this Section and such failure continues for more than three (3) days after written notice, then, without limiting any of Landlord’s other rights and notwithstanding any other provision of this Lease concerning notice and cure of defaults, Landlord may but need not obtain such insurance, and Tenant shall pay the cost thereof upon demand as Additional Rent.

 

12.            REQUIREMENTS OF LAW AND FIRE INSURANCE. Tenant shall comply with and shall from time to time conform the Demised Premises to every applicable requirement of law, duly constituted authority, Board of Fire Underwriters having jurisdiction or of the carriers of all insurance on the Demised Premises (all of the foregoing being hereinafter called “Legal Requirements”). Tenant shall have the right upon giving notice to Landlord to contest any obligations imposed upon Tenant pursuant to the provisions of this Section and to defer compliance during the pendency of such contest, if the failure of Tenant to so comply will not subject Landlord to civil or criminal penalty or liability. Landlord shall cooperate with Tenant in such contest (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and shall execute any documents reasonably required in furtherance of such purpose. Tenant shall not apply for any change in zoning applicable to the Land or the Demised Premises without Landlord’s prior written consent, not to be unreasonably withheld, conditioned or delayed.

 

13.            ALTERATIONS. Tenant may at its own expense from time to time, during the term hereof, make such alterations, additions, improvements and changes, structural or otherwise (hereinafter called “Alterations”), in and to the Demised Premises which it may deem necessary or desirable, provided such Alterations shall not reduce the value of the Demised Premises. Tenant, in making any Alterations, shall use materials of equal or better quality than those used in the construction of the Demised Premises and comply with all Legal Requirements. Tenant shall obtain or cause to be obtained all building permits, licenses, temporary and permanent certificates of occupancy and other governmental approvals that may be required in connection with the making of Alterations. Landlord shall cooperate with Tenant in the obtaining thereof (so long as Landlord’s cooperation does not involve (a) incurring obligations or liability or material expense to Landlord unreimbursed by Tenant or (b) breach of any covenants binding on

 

65

 

Landlord or the Demised Premises, including, without limitation, any mortgage) and shall execute any documents required in furtherance of such purpose. Tenant may, but shall not be obligated to, remove any Alteration so long as such removal does not materially and adversely affect any heating, ventilating, mechanical, electrical, structural, roof or life safety elements of the Building and Tenant shall repair all damage that results from such removal and restore the Demised Premises to a functional condition (including the filling of all floor and wall holes, the removal of all disconnected wiring back to junction boxes and the replacement of all damaged ceiling tiles). Upon completion of any Alteration that is not Cosmetic Work, Tenant shall promptly deliver to Landlord plans showing such Alteration as built. “Cosmetic Work” shall mean painting, carpeting and wall coverings and the like and the addition or deletion of interior non structural partitions, provided such work does not materially and adversely affect any roof, structural, mechanical, electrical, utility, fire protection or life safety systems or other systems or equipment of the Building.

 

14.            ACCESS TO DEMISED PREMISES. Tenant shall permit Landlord to enter upon the Demised Premises at all reasonable times approved by Tenant to examine the Demised Premises, and during the six (6) month period preceding the Expiration Date, to exhibit the Demised Premises to prospective tenants, provided that Landlord shall not unreasonably interfere with the conduct of business therein.

 

15.            UTILITIES.

 

A.             Tenant shall arrange and pay for any and all utility services to the Demised Premises, including, without limitation, telecommunications, water, gas, electricity and fuel used by it in the Demised Premises. Tenant shall pay all sewer charges assessed by the municipal authority having jurisdiction. The failure or interruption of any utility services shall be at Tenant’s sole risk and Landlord shall not suffer any reduction in any rent on account thereof.

 

B.              Tenant shall have the sole right to apply for, claim and receive any rebate, reimbursement, credit, or payment from any utility company providing service to the Building resulting from Tenant’s installation of energy saving equipment in or on the Building.

 

16.            SUBORDINATION, NON DISTURBANCE AND ATTORNMENT. This Lease shall become subject and subordinate to the lien of any Fee Mortgagee of the entire fee interest of the Demised Premises, and any renewals, modifications or extensions thereof, provided that a Subordination, Non Disturbance and Attornment Agreement (“SNDA”) substantially in the form annexed hereto as Exhibit D (or a reasonably equivalent form that is reasonably acceptable to Tenant and the applicable Fee Mortgagee) is executed, acknowledged and delivered by such Fee Mortgagee to Tenant. If the Fee Mortgagee requires that this Lease have priority over such mortgage, Tenant shall, upon request of the Fee Mortgagee, execute, acknowledge and deliver to the Fee Mortgagee an agreement acknowledging such priority.

 

17.            TRADE FIXTURES.

 

A.             All trade fixtures and equipment whether owned by Tenant or leased by Tenant from a Lessor/Owner (hereinafter called the “Equipment Lessor”) installed in the

 

66

 

Demised Premises, regardless of the manner or mode of attachment, shall be and remain the property of Tenant or any such Equipment Lessor and may be removed by Tenant or any such Equipment Lessor at any time. In no event (including a default under this Lease) shall Landlord have any liens, rights or claims in Tenant’s or Equipment Lessor’s trade fixtures and equipment and Landlord agrees to execute and deliver to Tenant and Equipment Lessor, within ten (10) days after request therefor, any document reasonably required by Tenant or Equipment Lessor in order to evidence the foregoing, so long as the same is reasonably acceptable to Landlord and any Fee Mortgagee. Tenant shall promptly repair all damage to the Building caused by the removal of any such trade fixtures or equipment. Notwithstanding anything to the contrary in this Lease, the following shall not constitute trade fixtures or equipment for purposes of this Lease and neither Tenant nor any Equipment Lessor shall own or have any right to remove the same (and, without limiting the generality of the foregoing, the following shall not be subject to the provisions of this Paragraph A or Paragraph B of this Section 17): (i) the HVAC system, plumbing, alarm, electric, life safety and other building systems used to operate the Building or maintain the certificate of occupancy, and (ii) any “fixtures” as such term is defined in the applicable Uniform Commercial Code.

 

B.              In the event Tenant shall enter into any arrangement to finance all or any portion of its trade fixtures or equipment either before or after the installation thereof in the Demised Premises and whether such financing shall be in the form of a mortgage, financing agreement, equipment lease, equipment sale leaseback or otherwise and in the event the lessor or secured party thereunder shall provide written notice to Landlord that it requires a copy of any default sent by Landlord to Tenant under this Lease also to be sent to such person (hereinafter called the “Owner/Secured Party”), then Landlord upon receipt of such requirement shall simultaneously send a copy of any default notice to such Owner/Secured Party at the address furnished to Landlord; provided that Landlord’s failure to deliver any such copy to the Owner/Secured Party shall not affect Landlord’s exercise of any right or remedy under this Lease in any way whatsoever. The copy of any such default notice shall be sent to such Owner/Secured Party in the same manner as notices are required to be sent and in the same manner as such notice is being sent to Tenant hereunder. Landlord further agrees that any such Owner/Secured Party shall have the right, but not the obligation, to remedy or cure any default of Tenant under this Lease within the same period of time granted to Tenant to remedy or cure any such default under this Lease.

 

C.              All trade fixtures and other personal property (which term shall include without limitation food and inventory) of any person that is located on the Demised Premises shall be at the sole risk of Tenant. Landlord shall not be liable for any loss or damage to person or property resulting from any accident, theft, vandalism or other occurrence on the Demised Premises, including damage resulting from water, wind, ice, steam, explosion, fire, smoke, chemicals, the rising of water or leaking or bursting of pipes or sprinklers, defect, failure or any other cause.

 

18. ASSIGNMENT.

 

A. Subject to paragraph (B) of this Section, Tenant may sublet all or any part of the Demised Premises, or license the use of any portion thereof or assign this Lease, but Tenant and Guarantor shall nevertheless continue to remain liable hereunder. Any assignee of

 

67

 

the Lease and any sublessee or licensee of all or substantially all of the Demised Premises shall become jointly and severally liable to Landlord, and any such transferee shall upon Landlord’s request execute and deliver an instrument in confirmation thereof. In the case of any assignment of this Lease or any sublease or licensee of all or substantially all of the Demised Premises, Tenant shall promptly deliver to Landlord a true and complete copy of the transfer instruments. No transfer of all or any portion of the Demised Premises or Landlord’s consent thereto shall be deemed a waiver of the provisions of this Section, or a release of Tenant or any Guarantor.

 

B.              So long as the Minimum Credit Test is not met (however the following provisions of this paragraph B shall not apply at any time when the Minimum Credit Test is met), Tenant shall not assign this Lease or sublet or license all or substantially all of the Demised Premises to any transferee unless (x) such transferee (1) operates at least five (5) other grocery stores and (2) has Tangible Net Worth” (as defined in Section 25 below) of at least One Hundred Million Dollars ($100,000,000) or (y) if such transferee does not meet the requirements of (1) and (2) then such transferee must be approved by Landlord, such approval not to be unreasonably withheld, conditioned or delayed. If Tenant desires to so transfer this Lease to a person who does not meet the requirements of (1) and (2) in the preceding sentence, then Tenant shall give notice of such intended transfer to Landlord together with reasonable information on its grocery store business and its audited financial statements for the three most recent years showing the credit of the proposed transferee and the proposed terms of the transfer. Upon receiving such information Landlord shall have thirty (30) days to elect by written notice to Tenant to do one of the following (and any failure of Landlord to affirmatively elect one or the other shall be deemed to be an election by Landlord to consent to such transfer: (a) approve such transfer, (b) disapprove such transfer, or (c) terminate the Term of this Lease on any date which is no sooner than one-hundred twenty (120) days after such election notice and no later than one-hundred eighty (180) days after such election. If Landlord elects to terminate this Lease and thereafter within one-hundred twenty (120) days enters into a lease or other agreement with Tenant’s proposed transferee, any transfer payment that was to have been made to Tenant by such transferee as specifically disclosed in writing as such to Landlord in the proposed terms of the transfer furnished to Landlord as provided above shall be paid by Landlord to Tenant out of the first rent amounts received by Landlord from such transferee until the transfer payment is paid to Tenant in full. For purposes of the previous sentence, a “transfer payment” shall include proposed sublease income in excess of the rent under this Lease, and in such cases Landlord’s payment to Tenant shall be a liquidated amount equal to such excess rent at a discount rate of ten percent (10%).

 

C.              If Tenant assigns this Lease, Landlord, when giving notice to said assignee with respect to any default, shall also give a copy of such notice upon Tenant originally named herein or its successor of whom Landlord shall have been given written notice (being herein called “Original Tenant”), and no notice of default shall be effective as against a Tenant until a copy thereof is given to the Original Tenant. The Original Tenant shall have the same period after the giving of such notice to cure such default as is given to Tenant under this Lease. If this Lease terminates or this Lease and the Term hereof cease and expire because of a default of such assignee, Landlord shall promptly give the Original Tenant notice thereof. The Original Tenant shall have the option, to be exercised by notifying Landlord in writing within thirty (30) days after receipt by the Original Tenant of Landlord’s notice, to cure any default and become Tenant under a new lease for the remainder of the term of this Lease (including any Renewal Periods if

 

68

 

applicable) upon all of the same terms and conditions of this Lease as it may have been amended by agreement between Landlord and Original Tenant, provided, however, that at the time of making any such election Original Tenant cures all defaults under the Lease. In the event Original Tenant assigns this Lease and it shall thereafter be rejected in a bankruptcy or similar proceeding brought by or against such assignee, a new lease identical to this Lease shall be entered into between Landlord and Original Tenant, provided that Original Tenant cures any monetary defaults and any other defaults that are capable of being cured. Any new lease created under this Section shall commence on the date of termination or rejection of this Lease, as applicable. Notwithstanding the foregoing, if Landlord, in its sole discretion delivers to the Original Tenant and Guarantor a release as to all liability under this Lease as theretofore amended, the Original Tenant shall not have the foregoing option.

 

D. In the case of a sublease of all or substantially all of the Demised Premises for the remainder of the Term and so long as the Minimum Credit Test or the requirements of Section 1 8B are met, Landlord shall, within thirty (30) days following Tenant’s request, deliver to Tenant a recognition and attornment agreement following the form attached hereto as Exhibit  D and otherwise subject to Landlord’s reasonable approval, executed and acknowledged by Landlord, for the benefit of such subtenant; provided that such subtenant executes and delivers an instrument reasonably satisfactory to Landlord confirming that such subtenant is jointly and severally liable under this Lease. Further, Landlord shall, within ten (10) days after Tenant’s request, shall request its Fee Mortgagee to deliver to Tenant an SNDA for the benefit of any such subtenant (and Landlord shall reasonably cooperate with Tenant, at no out of pocket cost to Landlord, in connection with obtaining any requisite consent from any Fee Mortgagee).

 

19. TITLE AND AUTHORITY.

 

A.             Landlord warrants and represents that Landlord is the owner of the fee simple of the Demised Premises and that other than any mortgages held by Fee Mortgagees that have provided an SNDA to Tenant in accordance with this Lease or such other liens or encumbrances that do not interfere with Tenant’s use of the Demised Premises or liens or encumbrances arising on account of any act or omission by Tenant or persons acting under Tenant or on account of Tenant’s failure to perform its obligations under this Lease, or matters set forth in Exhibit B 1, Landlord shall not voluntarily impose any other lien or encumbrance on the Demised Premises.

 

B.              Landlord and Tenant each warrant and represent to the other that (a) each is duly organized, validly existing and in good standing under the laws of the jurisdiction in which such entity was organized; (b) each has the authority to own its property and to carry on its business as contemplated under this Lease; (c) each has duly executed and delivered this Lease; (d) the execution, delivery and performance by each of this Lease (i) are within its powers, (ii) have been duly authorized by all requisite action, (iii) will not violate any provision of law or any order of any court or agency of government, or any agreement or other instrument to which it is a party or by which it or any of its property is bound, (iv) will not render it insolvent or (v) will not result in the imposition of any lien or charge on any of its property, except by the provisions of this Lease; and (e) the Lease is a valid and binding obligation of each in accordance with its terms.

 

69

 

C. Landlord and Tenant have executed the Memorandum of Lease (hereinafter called the “Memorandum”) attached hereto as Exhibit E simultaneously with the execution of this Lease. Upon the expiration of the Term each agree to execute and deliver a recordable termination of the Memorandum, which covenant shall survive termination. Tenant irrevocably appoints Landlord its attorney in fact so to execute such termination of the Memorandum if Tenant fails to do so within ten (10) days of written request, which power is coupled with an interest and shall automatically be transferred to any successor or assign of Landlord’s interest in the Demised Premises.

 

20.            QUIET ENJOYMENT. Landlord covenants and agrees that provided no default remains uncured beyond any applicable notice and cure period, Tenant shall peaceably and quietly have, hold and enjoy the Demised Premises and all rights, easements, appurtenances and privileges belonging or in anyway appertaining thereto during the full term of this Lease and any extension thereof subject always to the terms of this Lease, provisions of law, and matters of record to which this Lease is or may become subordinate. This covenant is in lieu of any other so called quiet enjoyment covenant, whether express or implied.

 

21.            UNAVOIDABLE DELAYS. If either party shall be prevented or delayed from punctually performing any obligation or satisfying any condition under this Lease by any strike, lockout, labor dispute, inability to obtain labor or material, Act of God, governmental restriction, regulation or control, enemy or hostile governmental action, civil commotion, insurrection, sabotage, fire or other casualty or by any other event similar to the foregoing and beyond the control of such party, then the time to perform such obligation or to satisfy such condition shall be postponed by the period of time consumed by the delay. Time is of the essence for the performance of all monetary obligations under this Lease and the foregoing shall never apply to the performance of monetary obligations.

 

22. END OF TERM. Upon expiration or other termination of the term of this Lease, Tenant shall peaceably and quietly quit and surrender the Demised Premises and all Alterations in the good order and condition Tenant is required to maintain the same and remove all trade fixtures, equipment and other personal property whether or not bolted or otherwise attached and all of Tenant’s signs wherever located; and in all cases shall repair damage that results from such removal. Any fixtures and equipment that Tenant or Owner/Secured Party does not remove following the expiration or other termination of the Term of this Lease shall be deemed to be abandoned by Tenant, shall at once become the property of Landlord, and may be disposed of in such manner as Landlord shall see fit; and Tenant shall pay the cost of removal and disposal to Landlord within thirty (30) days after demand; provided, however, that if this Lease shall be terminated as the result of a default by Tenant, then trade fixtures and equipment shall not be deemed abandoned until sixty (60) days after notice of such termination is given to Owner/Secured Party. Tenant or Owner/Secured Party shall have the right at any time prior to the date such fixtures and equipment shall be deemed abandoned to remove the same from the Demised Premises. Should Tenant or anyone claiming by, through or under Tenant hold over in possession after the Expiration Date or earlier termination of this Lease, such holding over shall not be deemed to extend the Term or to renew this Lease, but without limiting Landlord’s other rights and remedies on account of such breach the tenancy thereafter shall continue as a tenancy at sufferance from month-to-month upon the terms and conditions herein contained, provided, however that rent shall be charged and paid at one hundred fifty percent (150%) of the Fixed

 

70

 

Annual Rent and Additional Rent in effect during the twelve (12) month period immediately preceding the Expiration Date or earlier termination.

 

23.         LANDLORD’S DEFAULT.

 

A.             Landlord shall be in default hereunder if its fails to comply with any of its express obligations set forth in this Lease within thirty (30) days following written notice and opportunity to cure; provided, however, Landlord will not be in default if said default could not reasonably be cured within such period of thirty (30) days, and Landlord promptly commences and thereafter proceeds with due diligence and in good faith to cure such default.

 

B.              In the event that a Fee Mortgagee shall have given written notice to Tenant that it is the holder of a mortgage covering the Demised Premises, and provided such notice includes the address to which notices to the Fee Mortgagee are to be sent, Tenant agrees that in the event it shall give written notice to Landlord to cure a default of Landlord as provided for in this Section, Tenant shall give a copy of said notice to the Fee Mortgagee. Tenant agrees that the Fee Mortgagee may cure or remedy such default within the time permitted to Landlord pursuant to this Section; provided that in addition the Fee Mortgagee shall be entitled to such further time as may be reasonably necessary for the Fee Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Fee Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion.

 

24. ADDITIONAL CHARGES. If Tenant shall be in default hereunder, Landlord, after thirty (30) days notice that Landlord intends to cure such default (but only ten (10) days notice if such default concerns any breach of Tenant’s insurance obligations under Section 11), shall have the right, but not the obligation, to cure such default and Tenant shall pay to Landlord, upon demand, as Additional Rent, the reasonable cost thereof. Other than such insurance defaults, Landlord shall not commence to cure any default of such a nature that it could not reasonably be cured within such period of thirty (30) days, if Tenant commences to cure same within said period, and thereafter proceeds with reasonable diligence and in good faith to cure such default.

 

25.         TENANT’S DEFAULT.

 

A. If Tenant fails to pay Fixed Annual Rent or Additional Rent when due and such default continues for ten (10) days after written notice; or if a default occurs on account of any asset sale, merger or consolidation on the part of Guarantor in violation of paragraph D of this Section; or if a petition is filed by Tenant (or Guarantor) for insolvency or for appointment of a receiver, trustee or assignee or for adjudication, reorganization or arrangement under any bankruptcy act or other applicable law or if any similar petition is filed against Tenant (or Guarantor) and such petition is not dismissed within sixty (60) days thereafter; or if Tenant fails to perform any other covenant or condition under this Lease, Landlord may give Tenant a written notice specifying the nature of the default of such other covenant or condition and if Tenant does not, within thirty (30) days after receipt of such written notice (but only three (3) days in the case of failure to perform Tenant’s insurance obligations under Section 11), cure such other default

 

71

 

or, if such default is of such a nature that it could not reasonably be cured within such period of thirty (30) days, and Tenant does not commence and proceed with reasonable diligence and in good faith to cure such default then, after the expiration of such thirty (30) day period (or longer period if such default cannot reasonably be cured within said thirty (30) day period), Landlord shall have the right, in addition to the rights set forth in the preceding sentence, to seek damages or an injunction as to such failure to perform, or after the expiration of such thirty (30) day period Landlord may, but only during the continuance of such default, send a notice to Tenant terminating this Lease and reenter the Demised Premises and dispossess Tenant and any other occupants thereof, remove their effects not previously removed by them, and hold the Demised Premises as if this Lease had not been made; and Tenant waives the service of any additional notice of intention to reenter or to institute legal proceedings to that end. If any payment of Fixed Annual Rent, Additional Rent, or other sum owing Landlord is not paid within five (5) days after the same is due, then in addition to all other remedies hereunder Tenant shall pay an administrative late charge to Landlord equal to five percent (5%) of the overdue amount in question, which late charge will be due upon demand as Additional Rent.

 

B. After a termination, dispossess or removal in accordance with this Section, (1) the Fixed Annual Rent and Additional Rent shall be paid up to the date of such dispossess or removal, (2) Landlord may re-let the Demised Premises or any part or parts thereof either in the name of Landlord or otherwise, for a term or terms which may, at the option of Landlord, be less than or exceed the period which would otherwise have constituted the balance of the term of this Lease, and (3) Tenant shall pay to Landlord, as liquidated damages, any deficiency between the Fixed Annual Rent and Additional Rent due hereunder and the amount, if any, of the rents actually collected by Landlord on account of the new lease or leases of the Demised Premises for each month of the period which would otherwise have constituted the balance of the term of this Lease (not including any Renewal Periods, the commencement of which shall not have occurred prior to such dispossess or removal). In computing such liquidated damages there shall be added to said deficiency the expenses which Landlord incurs in connection with re-letting the Demised Premises, including reasonable attorneys’ and brokerage fees, tenant inducements such as free rent, moving expense reimbursements, tenant improvement allowances, brokerage commissions, fees for legal services, and other expenses of preparing the Demised Premises for reletting (“Reletting Expenses”). Such Reletting Expenses shall be paid to Landlord within ten (10) days of demand and all other liquidated damages shall be paid by Tenant in monthly installments on the dates specified in this Lease for payment of Fixed Annual Rent and any suit brought to collect the amount of the deficiency for any month shall not prejudice in any way the rights of Landlord to collect the deficiency for any subsequent month by a similar proceeding. Landlord shall not be liable for failure to re-let the Demised Premises or, in the event that the Demised Premises are re-let, for failure to collect the rent under such re-letting, unless Landlord shall not have used its commercially reasonable efforts to re-let the Demised Premises for the reasonable rental value thereof and to collect the rent under such re-letting. Landlord shall use its commercially reasonable efforts to mitigate damages.

 

C. Landlord hereby expressly waives any and all rights granted by or under any present or future laws to reenter the Demised Premises, to dispossess Tenant or any other occupant thereof or to remove their effects not previously removed by them, or to terminate this Lease for any reason or in any manner other than as set forth in this Section 25. Tenant hereby expressly waives any and all rights granted by or under any present or future laws to remain in

 

72

 

possession, cure any defaults or redeem its leasehold for any reason or in any manner other than as set forth in this Section 25. The provisions of this Section 25 shall survive the early termination of the Term.

 

D.              Any sum due from Tenant under this Lease is not paid within five (5) days after the same is due, such amount shall bear interest from the date due at the rate of one and one-half (11/2%) percent for each month (or ratable portion thereof) the same remains unpaid. Nothing in this Lease shall limit the right of Landlord to prove and obtain in proceedings for bankruptcy or insolvency an amount equal to the maximum allowed by any statute or rule of law in effect at the time; and Tenant agrees that the fair value for occupancy of all or any part of the Demised Premises at all times shall never be less than the Fixed Annual Rent and all Additional Rent payable from time to time.

 

E.              The Guaranty given by Guarantor of this Lease is a material inducement to Landlord’s entering into this Lease. If at any time the Guarantor of this Lease shall sell all or a material portion of its assets or shall merge or consolidate with another entity and, in either case, if (1) Guarantor (including the resulting entity of any merger or consolidation) has a tangible net worth immediately after the transaction that is less than Guarantor’s tangible net worth immediately prior to the transaction, and (2) Guarantor’s tangible net worth immediately after the transaction is less than the Minimum Credit Test, then the transaction shall be a default under this Lease for which there is no cure period entitling Landlord to exercise all of the rights and remedies under this Section. If at any time the existing Guarantor desires to assign the Guaranty to another person and for such person to assume all of the obligations and liabilities under the Guaranty, and if the proposed successor Guarantor’s tangible net worth is greater than the Minimum Credit Test, Tenant may present evidence of such proposed successor Guarantor’s tangible net worth to Landlord in the form of financial statements for (A) the most recent fiscal year of the proposed successor Guarantor audited by a nationally recognized firm of certified public accountants and (B) the most recent fiscal quarters since such fiscal year certified to by Guarantor’s chief financial officer, together with a form of Guaranty identical in form to the form of Guaranty attached to this Lease as Exhibit F to be executed and delivered by the proposed successor Guarantor. Upon Landlord’s written approval of such financial statements as demonstrating a tangible net worth of the proposed successor Guarantor greater than the Minimum Credit Test (which approval will not be unreasonably withheld, conditioned or delayed) and upon the execution and delivery to Landlord of such form of Guaranty by the proposed successor Guarantor, the existing Tenant (if, but only if the Lease is being assigned to a successor Tenant) and Guarantor shall be released from all liability under the Lease and Guaranty and the successor Tenant and Guarantor shall become fully liable to Landlord under the Lease and Guaranty. Thereafter and as an obligation of the then successor Tenant under this Lease, such successor Guarantor shall annually and quarterly continue to provide such financial statements to Landlord demonstrating that it continues to meet the Minimum Credit Test for those provisions of this Lease requiring such as a condition of being relieved from certain Lease obligations otherwise applicable. As used in this Lease “Guarantor” means the Guarantor then fully liable under its Guaranty to Landlord. “Tangible net worth” means the net worth as shown on such financial statements prepared in accordance with generally accepted accounting principles consistently applied and disregarding any value attributable to good will or other intangible assets and amounts owed by shareholders, officers or Affiliates except to the extent such amounts owed by Affiliates would ordinarily and customarily be consolidated on Tenant’s

 

73

 

financial statements. “Minimum Credit Test” means a tangible net worth as shown on such fiscal year and fiscal quarter financial statements of at least Five Hundred Million Dollars ($500,000,000).

 

26. DESTRUCTION.

 

A.             In the event of any damage or destruction by fire, the elements, or casualty (hereinafter called “Destruction”) to all or any part of the Building or any other Improvements in the Demised Premises, Tenant shall commence promptly, and with due diligence continue to restore same to substantially the same condition as existed immediately preceding the Destruction, except as otherwise provided in paragraph B of this Section. If the Destruction is partial, Tenant shall complete the restoration within two hundred seventy (270) days after the Destructions, subject to Unavoidable Delays. If the Destruction is total, Tenant shall complete the restoration within eighteen (18) months following the Destruction, subject to Unavoidable Delays. In no event shall Fixed Annual Rent or any Additional Rent abate on account of any Destruction.

 

B.              If, as a result of any Destruction, fifty percent (50%) or more of the total floor area of the Building is damaged, destroyed or, in Tenant’s reasonable opinion rendered untenantable, during the last two (2) years of the Initial Term or during any Renewal Term (but this shall not apply at any other time), Tenant may elect to terminate this Lease by giving notice to Landlord of such election on or before the date that is ninety (90) days after the Destruction, stating the date of termination, which shall be not more than thirty (30) days after the date on which such notice of termination shall have been given, and (1) upon the date specified in such notice this Lease and the term hereof shall cease and expire and (2) any Fixed Annual Rent and Additional Rent shall be paid until such date of termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant. In the event that Tenant elects to terminate this Lease as a result of the Destruction referenced above, Tenant shall cause all insurance proceeds to be paid to Landlord including business interruption insurance proceeds.

 

C. Except in the case of paragraph B of this Section, Insurance proceeds shall be deposited with a bank or trust company acceptable to Landlord and Tenant and under the control of Landlord and Tenant, as trustees, or, if the Fee Mortgagee shall be a bank, trust company, insurance company or other entity engaged in mortgage lending then such proceeds shall be deposited with such Fee Mortgagee and shall be held and disbursed by it, as trustee, for restoration in accordance with customary construction lending practice and procedures. Any excess insurance proceeds shall be paid to Tenant at the conclusion of the restoration so long as Tenant is not then in default beyond any applicable cure period.

 

27. EMINENT DOMAIN.

 

A. In the event of an actual taking for any public or quasi-public use by any lawful power or authority by exercise of the right of condemnation or of eminent domain or by agreement between Landlord and those having the authority to exercise such right (hereinafter called “Taking”) of the entire Building, then (1) this Lease and the Term shall cease and expire as of the date of vesting of title or transfer of possession, whichever occurs earlier, as a result of

 

74

 

the Taking, and (2) any Fixed Annual Rent and Additional Rent shall be paid until such termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant.

 

B.              (1) In the event of a Taking of twenty (20%) or more of the Demised Premises, or in the event of a Taking resulting in a reduction of twenty (20%) percent or more of the parking spaces (unless Landlord provides adequate and sufficient additional contiguous parking areas in substitution therefor reasonably acceptable to Tenant), or in the event of a Taking resulting in a divided Building or parking area such that passage between the divided portions of the parking area is not possible, or in the event of permanent denial of reasonably adequate access to the Demised Premises or Building on account of a Taking which in Tenant’s reasonable judgment makes it economically unfeasible to operate Tenant’s business at the Demised Premises, then Tenant may elect to terminate this Lease by giving notice of termination to Landlord on or before the date which is ninety (90) days after receipt by Tenant of notice that the Taking in question. Said notice of termination shall state the date of termination, which date of termination shall be not more than thirty (30) days after the date on which such notice of termination is given to Landlord, and (a) upon the date specified in such notice of termination this Lease and the term hereof shall cease and expire, and (b) any Fixed Annual Rent and Additional Rent shall be paid until the date of termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant.

 

(2) If Tenant does not elect to terminate this Lease as aforesaid, then the award or payment for the Taking shall be used by Tenant for restoration as hereinafter set forth and Tenant shall promptly commence and with due diligence continue to restore the portion of the Demised Premises remaining after the Taking to substantially the same condition and tenantability as existed immediately preceding the Taking. Tenant shall complete the restoration within two hundred seventy (270) days after the Destruction, subject to Unavoidable Delays. Taking proceeds shall be paid, held and disbursed in the same manner as insurance proceeds under Section 26C and there shall be no abatement or reduction in Fixed Annual Rent or any Additional Rent. Any taking proceeds remaining after the restoration is complete shall be divided equally between Landlord and Tenant.

 

C.              If this Lease is terminated under any provision of this Section 27, so long as Tenant is not then in breach of this Lease beyond any applicable cure period, any specific damages that are expressly awarded to Tenant on account of its relocation expenses and specifically so designated shall belong to Tenant. Except as provided in the preceding sentence of this paragraph, Landlord reserves to itself, and Tenant releases and assigns to Landlord, all rights to damages accruing on account of any Taking or by reason of any act of any public authority for which damages are payable. Tenant agrees to execute such further instruments of assignment as may be reasonably requested by Landlord, and to turn over to Landlord any damages that may be recovered in any proceeding or otherwise; and Tenant irrevocably appoints Landlord as its attorney-in-fact with full power of substitution so to execute and deliver in Tenant’s name, place and stead all such further instruments if Tenant shall fail to do so after 10 days notice.

 

28.             THIRD PARTY LITIGATION. If Landlord, Landlord’s adviser or its mortgagees are made parties to any litigation commenced by or against Tenant by or against any

 

75

 

person claiming through Tenant with respect to the Demised Premises, Tenant agrees to indemnify Landlord in the manner provided in Section 38 and in addition pay, as Additional Rent, all costs of Landlord in connection with such litigation including reasonable counsel fees and litigation costs, except in the sole instance where Landlord or Tenant have legal claims in the litigation against one another or where Landlord has been adjudicated in any litigation to have acted with gross negligence or willful misconduct. Without limitation, the foregoing includes foreclosure or enforcement of any lien, attachment or mortgage on the Demised Premises resulting from the act or omission of Tenant, but shall not include any Fee Mortgage or other lien created by Landlord.

 

29.            WAIVER OF DISTRAINT. Landlord hereby expressly waives any and all rights granted by or under any present or future laws to levy or distrain for rent, in arrears, in advance or both, upon all goods, merchandise, equipment, trade fixtures, furniture and personal property of Tenant or any nominee of Tenant in the Demised Premises, delivered or to be delivered thereto.

 

30.            ESTOPPEL CERTIFICATES. Upon the request of either party, at any time and from time to time, Landlord and Tenant agree to execute and deliver to the other, within thirty (30) days after such request, a written instrument that may be relied upon by the requesting party, its potential purchasers, lenders, investors, subtenants and/or assignees (and any of their respective successors and assigns), duly executed, (a) certifying if such is the case that this Lease has not been modified and is in full force and effect or, if there has been a modification of this Lease, that this Lease is in full force and effect as modified, stating such modifications, (b) specifying the dates to which the Fixed Annual Rent and Additional Rent have been paid, (c) stating whether or not, to the knowledge of the party executing such instrument, the other party hereto is in default and, if such party is in default, stating the nature of such default, (d) stating the Commencement Date and Expiration Date, (e) stating which options to renew the term have been exercised, if any; and (f) any other information that may reasonably requested by the requesting party and customarily addressed in an estoppel certificate.

 

31. NOTICES. Any notices, consents, approvals, submissions or demands (“Notices”) given under this Lease or pursuant to any law or governmental regulation, including, without limitation, those by Landlord to Tenant or by Tenant to Landlord shall be in writing. Unless otherwise required by law, governmental regulation or this Lease, any such Notice shall be deemed given if sent by registered or certified mail, return receipt requested, postage prepaid or by nationally recognized overnight delivery service (a) to Landlord, at the address of Landlord as hereinabove set forth and with like copy given to Daniel A. Taylor, Esq. or Primo Fontana, Esq., DLA Piper, 33 Arch Street 26th Floor, Boston MA 02110 and/or such other persons and addresses as Landlord may designate by notice to Tenant; or (b) to Tenant, then one copy shall be delivered to the attention of the General Counsel, another shall be delivered to the attention of the Senior Vice President of Real Estate, and another shall be delivered to the attention of the Senior Director of Properties and Administration, all at 2 Paragon Drive, Montvale, New Jersey 07645 or to such other addresses as Tenant may designate by notice to Landlord. Any such Notice shall be deemed given three (3) business days after being sent by registered or certified mail, return receipt requested, postage prepaid, and one business (1) day when sent by overnight delivery. A party’s attorney may give Notices on behalf of such party.

 

76

 

32.            BROKER. Each party represents and warrants to each other there is no broker, agent, finder or other person with whom it has dealt in connection with the negotiation, execution and delivery of this Lease other than those persons named in that certain Agreement of Sale and Leaseback dated as of November 2, 2010 entered into between Tenant and Landlord (or Affiliates of each) regarding a transaction that led to this Lease.

 

33.            LIENS. Tenant shall keep the Demised Premises (and Landlord’s interest therein) and Tenant’s leasehold (and Tenant’s interest therein) free of, and shall within thirty (30) days discharge, any attachment, lien, security interest or other encumbrance that arises as a result of any act or omission of Tenant or persons acting by, through or under Tenant. Without limitation, Tenant will not permit or suffer any mechanic’s or materialmen’s or other liens to stand against the Demised Premises for any labor or material furnished in connection with work of any character performed, any services provided or any other act, omission or obligation on the part or at the direction of Tenant or persons claiming by, through or under Tenant, and Landlord will not permit any such liens for work or material furnished the Landlord to stand against said premises (the foregoing shall not imply that Landlord has any responsibility to furnish any work or material). However, Landlord and Tenant shall respectively have the right to contest the validity or amount of any such lien, provided that the payment of such amount is bonded during the pendency of such contest, but upon the final determination of such contest the party responsible for such lien shall immediately pay any judgment rendered with all proper costs and charges (including reasonable attorneys’ fees) and shall have the lien released at its own expense. In lieu of bonding either party may obtain other security acceptable to the other party in such party’s sole discretion. Any contest hereunder shall be subject to all requirements set forth in any Fee Mortgage.

 

34.            DEFINITION OF LANDLORD. The term “Landlord” as used herein, means Landlord named herein and any subsequent owner of Landlord’s estate hereunder. Any owner of Landlord’s estate hereunder shall be relieved of all liability under this Lease after the date that it ceases to be the owner of Landlord’s estate (except for any liability arising prior to such date) and the party succeeding to Landlord’s estate shall assume all liability of Landlord arising from and after it becomes owner of Landlord’s estate. The foregoing shall be self-operative but Landlord and Tenant shall upon the request of either execute and deliver an instrument acknowledging the foregoing.

 

35.            ADJOINING OR ADJACENT PROPERTY. Landlord and Tenant shall each promptly forward to the other any notice or other written communication received by it from any owner of property adjoining or adjacent to the Demised Premises or from any municipal or other governmental authority in connection with any hearing or other administrative proceeding relating to the use of the Demised Premises or any adjoining or adjacent property. Tenant may, at its sole cost and expense, in its own name and/or in the name of Landlord, appear in any such proceeding. Landlord shall fully cooperate with Tenant (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and shall, without limitation, make such appearances and furnish such information as may be reasonably required by Tenant. Landlord agrees to execute any instruments reasonably requested by Tenant in connection with any such proceeding.

 

77

 

36. ENVIRONMENTAL LAWS.

 

A. “Environmental Laws” shall mean all federal, state or local laws, ordinances, rules, regulations, or policies, whether now or hereafter enacted, governing the use, clean-up, remediation storage, treatment, transportation, manufacture, refinement, handling, release, production or disposal of Hazardous Materials including, without limitation: (1) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, (42 U.S.C. Sections 9601, et. seq.) as amended by the Superfund Amendments and Reauthorization Act; (2) the Hazardous and Solid Waste Act amendments of 1984 Pub L 98-616 (42 U.S.C. Section 699); (3) the Hazardous Materials Transportation Act, (49 U.S.C. Section 1801, et. seq.); (4) the Resource Conservation and Recovery Act of 1976, (42 U.S.C. Sections 6901, et. seq.); or (5) the Toxic Substances Control Act, and any amendments thereto and any regulations adopted and publications promulgated pursuant thereto, or any other federal, state or local environmental laws, ordinances, rules, or regulations whether now or hereafter enacted. “Hazardous Materials” shall mean any hazardous wastes or hazardous substances as defined in any Environmental Law including, without limitation, any asbestos, PCB, toxic, noxious or radioactive substances, methane, volatile hydrocarbons, petroleum, petroleum by-products, industrial solvents or any other material or substance which could cause or constitute a health, safety or other environmental hazard to any person or property.

 

B. Tenant, at its sole cost and expense, shall until the Expiration Date of this Lease comply with all Environmental Laws and shall be responsible for all Hazardous Materials on or migrating from the Land and Demised Premises prior to, on and after the Commencement Date, it being acknowledged that Tenant or its Affiliate owned the Land and Demised Premises prior to the Commencement Date. Tenant shall provide Landlord with copies of any notices pertaining to any governmental proceedings or actions under any Environmental Law (including requests or demands for entry onto the Demised Premises and/or Land for purposes of inspection regarding the handling, disposal, clean-up or remediation of Hazardous Materials or claims, penalties, fines or assessments) within fifteen (15) days after receipt thereof. Landlord shall cooperate with Tenant (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and provide such documents, affidavits and information as may be reasonably necessary for Tenant to comply with all Environmental Laws.

 

C. If required by governmental authority or if Landlord has a reasonable basis to believe a release of Hazardous Materials may have occurred or a threat of release exists on or from the Land or Demised Premises or Hazardous Materials activities have taken place on the Land or Demised Premises that do not conform to Environmental Laws, then Landlord may, but need not, perform appropriate testing in a commercially reasonable manner and the reasonable costs thereof shall be reimbursed to Landlord by Tenant upon demand as Additional Rent. Tenant shall execute affidavits, representations and the like from time to time at Landlord’s request concerning Tenant’s actual knowledge and belief regarding the presence or absence of Hazardous Materials at the Land and Demised Premises. In all events, and without limitation, Tenant shall indemnify all Indemnitees, expressly including without limitation all Fee Mortgagees, in the manner elsewhere provided in this Lease with respect to Hazardous Materials on or migrating from the Land and Demised Premises prior to, on and after the Commencement Date (and for these purposes, the loss indemnified shall include without limitation any costs of

 

78

 

investigation or remediation, and any claim of personal injury or property damage to any person); provided, however, that such indemnity shall not include and Tenant shall not be responsible for Hazardous Materials migrating on to the Land from the land of third parties. The covenants of this Section shall survive the Term. Tenant shall from time to time upon Landlord’s request confirm all of the foregoing covenants directly to mortgagees.

 

37. LEASEHOLD MORTGAGE.

 

A.             Tenant, and its successors and assigns (including, without limitation, any subtenant of Tenant), may, from time to time and without Landlord’s prior written consent, mortgage all or any portion of its right, title and interest in and to this Lease under one leasehold mortgage at any one time, or two leasehold mortgages given as part of a single financing transaction, to an Institutional Lender (each, a “Leasehold Mortgage”), and assign any or all rights under this Lease and any subleases as collateral security for such Leasehold Mortgage; provided that all rights acquired under such Leasehold Mortgage shall be subject to all of the terms, covenants and conditions of this Lease, and to all rights and interests of Landlord, none of which terms, covenants or conditions is or shall be waived by Landlord by reason of the right given to so mortgage such interest in this Lease. In no event shall Tenant have any right to mortgage or encumber Landlord’s fee interest in the Demised Premises. The term “Leasehold Mortgage” shall include whatever security instruments that may be used in the locale of the Demised Premises, such as, without limitation, deeds of trust, security deeds and conditional deeds, as well as financing statements, assignment of leases and rents, security agreements and other documentation required pursuant to the Uniform Commercial Code. The term “Leasehold Mortgage” shall also include any instruments required in connection with a sale-leaseback transaction. An “Institutional Lender” is a bank, trust company, savings and loan association, pension fund, endowment fund, insurance company, other institutional pool of recognized status or a governmental authority empowered to make loans or issue bonds or any other recognized institution regularly engaged in the making of mortgage loans that has not less than $100,000,000 in assets. The holder of any Leasehold Mortgage shall be called a “Leasehold Mortgagee.”

 

B.              If Tenant and/or Tenant’s successors and assigns (including, but not limited to, any sublessee of Tenant) shall grant a Leasehold Mortgage, and if Tenant shall send to Landlord a true copy thereof, together with a notice specifying the name and address of the Leasehold Mortgagee (“Mortgage Notice”), Landlord agrees that as long as any such Leasehold Mortgage shall remain unsatisfied of record or until a notice of satisfaction is given by the Leasehold Mortgagee to Landlord, the following provisions shall apply:

 

(1)             There shall be no cancellation, surrender or modification of this Lease by joint action of Landlord and Tenant without the prior consent of the Leasehold Mortgagee;

 

(2)             Landlord shall, upon serving Tenant with any notice of default, simultaneously serve a copy of such notice upon the Leasehold Mortgagee. The Leasehold Mortgagee shall thereupon have the same period to remedy or cause to be remedied the defaults complained of, and Landlord shall accept such performance by or at the instigation of such Leasehold Mortgagee as if the same had been done by Tenant; provided that in the case of

 

79

 

defaults that cannot be cured by the payment of money in addition the Leasehold Mortgagee shall be entitled to such further time to remedy or cause to be remedied the defaults complained of as may be reasonably necessary for the Leasehold Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Leasehold Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion.. Nothing herein shall be construed as requiring a Leasehold Mortgagee to cure any default. Landlord’s failure to deliver any such copy to a Leasehold Mortgagee shall not affect the Landlord’s exercise of any right or remedy under the Lease in any way whatsoever;

 

(3)             If any default shall occur which, pursuant to any provision of this Lease, entitles Landlord to terminate this Lease, and if before the expiration of twenty (20) days from the date of the giving of notice of termination upon such Leasehold Mortgagee, such Leasehold Mortgagee shall have notified Landlord of its desire to nullify such notice and shall have paid to Landlord all Fixed Annual Rent and Additional Rent herein provided for which are then in default, and shall have complied (or caused compliance) with all of the other requirements of this Lease, if any are then in default, then, in such event, Landlord shall not be entitled to terminate this Lease and any notice of termination previously given shall be void and of no effect;

 

(4)             Notwithstanding anything in this Lease to the contrary, any sale of Tenant’s leasehold interest in any proceeding for the foreclosure of the Leasehold Mortgage, or the assignment or transfer of Tenant’s leasehold interest in lieu of the foreclosure of any Leasehold Mortgage, shall be deemed to be a permitted sale, transfer or assignment;

 

(5)             If not required to be held by the Fee Mortgagee, the proceeds from any insurance policies or arising from a Taking may be held by any institutional Leasehold Mortgagee and distributed pursuant to the provisions of this Lease;

 

(6)             The Leasehold Mortgagee may be added to the “Loss Payable Endorsement” of any and all insurance policies required to be carried by Tenant hereunder on the condition that the insurance proceeds are to be applied in the manner specified in this Lease and that the Leasehold Mortgage shall so agree; except that the Leasehold Mortgage may provide a manner for disposition of such proceeds as remain after full compliance with the restoration covenants of this Lease, if any, otherwise payable to Tenant (but not such proceeds, if any, payable to Landlord, any Fee Mortgagee or jointly to Landlord or Tenant) pursuant to the terms of this Lease; and

 

(7) Landlord shall provide Leasehold Mortgage with prompt notice of any legal proceeding or arbitration between Landlord and Tenant. Unless the Leasehold Mortgage provided otherwise, Leasehold Mortgagee shall have the right to intervene in any such proceeding and be made a party to such proceeding, and the parties hereby consent to such intervention. Landlord’s failure to deliver any such notice to a Leasehold Mortgagee shall not affect the Landlord’s exercise of any right or remedy under the Lease in any way whatsoever.

 

80

 

Tenant, in any Mortgage Notice served upon Landlord under this Section, may exclude any or more of the above provisions, and if so excluded, such provisions shall not be effective.

 

C. Landlord shall, upon request, execute, acknowledge and deliver to each Leasehold Mortgagee, an agreement prepared at the sole cost and expense of Tenant, in form reasonably satisfactory to such Leasehold Mortgagee and Landlord, between Landlord, Tenant and Leasehold Mortgagee, separately agreeing to all of the provisions of this Section.

 

38.            INDEMNITY. Except as otherwise expressly set forth in this Lease, Tenant shall assume exclusive control of the Demised Premises and all areas pertaining thereto including all appurtenances, improvements, utilities, water bodies, grounds, sidewalks, walkways, driveways and parking facilities, and Tenant shall bear the sole risk of all related tort liabilities. To the greatest extent permitted by applicable law, Tenant shall indemnify, save harmless and defend Landlord, Landlord’s adviser and mortgagees and their respective officers, directors, managers, members, partners, agents and employees, (“Indemnitees”) from all liability, claim, damage, cost or loss (including reasonable fees and litigation costs) arising in whole or in part out of, or in any manner connected with (i) any injury, loss, theft or damage to any person or property while on or about the Demised Premises, or (ii) any condition of the Demised Premises, or the possession and use thereof (including any failure to vacate at the end of the Term) or any activity permitted or suffered on the Demised Premises (including Hazardous Materials), or (iii) any breach of any covenant, representation or certification by Tenant or persons acting under Tenant, or (iv) any negligent act or omission anywhere by Tenant or persons acting under Tenant, in each case paying the same to Landlord on demand as Additional Rent, except to the extent such liability results from the negligence or willful misconduct of Landlord or the other Indemnitees. Without implying that other covenants do not survive, the covenants of this Section shall survive the Term. Tenant shall immediately respond and assume the investigation, defense and expense of all of the foregoing matters. Landlord or any Indemnitee, at its sole cost and expense, may join in such defense with counsel of its choice.

 

39.            LIMITATION OF LANDLORD’S LIABILITY. Notwithstanding anything contained to the contrary in this Lease, whether express or implied, it is agreed that Tenant will look only to Landlord’s fee interest in and to the Demised Premises for the collection of any judgment (or other judicial process) requiring the payment of money by Landlord in the event of a breach or default under this Lease by Landlord with respect to any claim whatsoever related to the Demised Premises, and no other property or assets of Landlord or of Landlord’s adviser or of any Fee Mortgagee or its or their managers, members, directors, officers, trustees, beneficiaries, shareholders, partners, joint venturers (disclosed or undisclosed) shall be subject to suit or to levy, execution or other enforcement procedures for the satisfaction of any such judgment (or other judicial process). No officer, director, manager, member, shareholder, trustee, beneficiary, partner, agent, attorney or employee of Landlord or of Landlord’s adviser or of any Fee Mortgagee shall ever be personally or individually liable; nor shall Landlord, Landlord’s adviser or any Fee Mortgagee or such persons ever be answerable or liable in any equitable judicial proceeding or order beyond the extent of their interest in the Demised Premises. In no event shall Landlord, Landlord’s adviser or any Fee Mortgagee or any such persons ever be liable to Tenant for indirect or consequential damages.

 

81

 

40.            BOOKS AND RECORDS. Tenant shall at all times keep and maintain full and correct records and books of account of the operations of the Demised Premises in accordance with generally accepted accounting principals consistently applied and shall accurately record and preserve the records of such operations in accordance with its customary records retention policy. Notwithstanding that there has been no Percentage Rent Event, Tenant shall report the gross sales from the Demised Premises to Landlord annually for each fiscal year of Tenant no later than thirty (30) days following the end of such fiscal year, such report to be certified by Tenant’s chief financial officer. Landlord shall keep such information confidential at all times in accordance with the terms of Exhibit J and may only release such information to Landlord’s constituent members, and so long as such persons execute and deliver to Tenant a Confidentiality Agreement with Tenant in the form attached hereto as Exhibit J (“Confidentiality Agreement”) whether or not Tenant signs such Confidentiality Agreement, also to its lenders and prospective lenders and to prospective purchasers of Landlord’s interest in the Demised Premises. Upon an Event of Default, Tenant shall permit Landlord, Landlord’s accountants and Fee Mortgagees reasonable access thereto, with the right to make copies and excerpts therefrom upon reasonable advance notice to Tenant.

 

41.            SATELLITE DISH. If permitted by applicable law, Tenant shall have the right to place on the roof or wall of the Demised Premises at Tenant’s sole cost and expense, a satellite dish (hereinafter called the “Dish”) for transmission of data (both receiving and sending) between Tenant’s various operations and its headquarters in accordance with all laws and governmental regulations.

 

42.            NO PRESUMPTION AGAINST DRAFTER. Landlord and Tenant agree and acknowledge that this Lease has been freely negotiated by Landlord and Tenant. In any event of any ambiguity, controversy, dispute or disagreement over the interpretation, validity or enforceability of this Lease or any of its covenants, terms or conditions, no inference, presumption or conclusion whatsoever shall be drawn against Tenant by virtue of Tenant’s having drafted this Lease.

 

43.            SUCCESSORS AND ASSIGNS; AFFILIATES. The covenants and agreements contained in this Lease shall bind and inure to the benefit of the successors and assigns of each party. As used in this Lease “Affiliate” (whether or not capitalized) shall mean, with respect to any person, any person controlled by, controlling, or under common control with such person; and “control” shall mean any direct ownership interest or right through the exercise of voting or approval rights or otherwise, to exercise decision-making authority generally.

 

44.            CAPTIONS. The captions preceding the Sections of this Lease are intended only as a matter of convenience and for reference and in no way define, limit or describe the scope of this Lease or the intent of any provision hereof.

 

45.            INVALIDITY OF CERTAIN PROVISIONS. If any provision of this Lease shall be invalid or unenforceable, the remainder of the provisions of this Lease shall not be affected thereby and each and every provision of this Lease shall be enforceable to the fullest extent permitted by law.

 

82

 

46.            CHOICE OF LAW/JURISDICTION. This Lease, and the rights and obligations of the parties hereto, shall be interpreted and construed in accordance with the laws where the Demised Premises are located (the “State”), without regard to the State’s internal conflict of law principles. Any disputes arising out of this Lease or between Landlord and Tenant shall be subject to the exclusive jurisdiction of the state courts of the State.

 

47.            NO WAIVER. The failure of either party to seek redress for violation of or to insist upon the strict performance of, any term, covenant or condition contained in this Lease shall not prevent a similar subsequent act from constituting a default under this Lease. Without limitation, no written consent by Landlord or Tenant to any act or omission that otherwise would be a default shall be construed to permit other similar acts or omissions. Neither party’s failure to seek redress for violation or to insist upon the strict performance of any covenant, nor the receipt by Landlord of rent with knowledge of any breach of covenant, shall be deemed a consent to or waiver of such breach. No breach of covenant shall be implied to have been waived unless such is in writing, signed by the party benefiting from such covenant and delivered to the other party; and no acceptance by Landlord of a lesser sum than the Fixed Annual Rent, Additional Rent or any other sum due shall be deemed to be other than on account of the installment of such rent or other sum due. Nor shall any endorsement or statement on any check or in any letter accompanying any check or payment be deemed an accord and satisfaction; and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such installment or pursue any other right or remedy. The delivery of keys (or any other act) to Landlord shall not operate as a termination of the Term or an acceptance or surrender of the Demised Premises. The acceptance by Landlord of any rent following the giving of any default and/or termination notice shall not be deemed a waiver of such notice.

 

48.            ATTORNEY’S FEES. In the event that either Landlord or Tenant employ an attorney to enforce or defend any of the conditions, covenants, rights or obligations of this Lease (including, without limitation, a default by either party), then the prevailing party shall be entitled to all reasonable attorney fees and all other reasonable out-of-pocket litigation costs (including, but not limited to filing fees, expert reports and testimony, court costs and other usual costs of litigation of this type) incurred by such prevailing party.

 

49.            WAIVER OF TRIAL BY JURY. To the extent such waiver is permitted by law, the parties waive trial by jury in any action or proceeding brought in connection with this Lease or the Demised Premises.

 

50. MISCELLANEOUS. Other than contemporaneous instruments executed and delivered of even date, if any, this Lease contains all of the agreements between Landlord and Tenant relating in any way to the Demised Premises and supersedes all prior agreements and dealings between them. There are no oral agreements between Landlord and Tenant relating to this Lease or the Demised Premises. This Lease may be amended only by a written instrument executed and delivered by both Landlord and Tenant. The provisions of this Lease shall bind Landlord and Tenant and their respective successors and assigns. Where the phrases “persons acting under” Landlord or Tenant or “persons claiming through” Landlord or Tenant or similar phrases are used, the persons included shall be assignees, sublessees, licensees or other transferees or successors of Landlord or Tenant as well as invitees or independent contractors of

 

83

 

Landlord or Tenant, and all of the respective employees, servants, contractors, agents and invitees of Landlord, Tenant and any of the foregoing. As used herein, “monetary default” shall mean a default that can be substantially cured solely by the payment of money and nothing more and “non-monetary default” shall mean a default that cannot be substantially cured solely by the payment of money and northing more. If either party is granted any extension, election or other option, to be effective the exercise (and notice thereof) shall be unconditional, irrevocable and must be made strictly in accordance with the prescribed terms and times; otherwise its purported exercise shall be void and ineffective. The enumeration of specific examples of a general provisions or use of the word “including” shall not be construed as a limitation of the general provision. Unless a party’s approval or consent is required by the express terms of this Lease not to be unreasonably withheld, such approval or consent may be withheld in the party’s sole discretion. The submission of a form of this Lease or any summary of its terms shall not constitute an offer by Landlord to Tenant; the leasehold shall only be created and the parties bound when this Lease is executed and delivered by both Landlord and Tenant. Nothing herein shall be construed as creating the relationship between Landlord and Tenant of principal and agent, or of partners or joint venturers or any relationship other than landlord and tenant. This Lease and all consents, notices, approvals and all other related documents may be reproduced by any party by any electronic means or by electronic, photographic or other reproduction process and the originals may be destroyed; and each party agrees that any reproductions shall be as admissible in evidence in any proceeding as the original itself (whether or not the original is in existence and whether or not reproduction was made in the regular course of business), and that any further reproduction of such reproduction shall likewise be admissible. If any payment in the nature of interest provided for in this Lease shall exceed the maximum interest permitted under controlling law, as established by final judgment of a court, then such interest shall instead be at the maximum permitted interest rate as established by such judgment. Landlord and Tenant expressly agree that there are and shall be no implied warranties of merchantability, habitability, suitability, fitness for a particular purpose or of any other kind arising out of this Lease, and there are no warranties or representations other than those expressly set forth in this Lease. Without limitation, where Tenant in this Lease indemnifies or covenants for the benefit of present and future Fee Mortgagees, such agreements are for the benefit of present and future Fee Mortgagees as third party beneficiaries; and at the request of Landlord, Tenant from time to time will confirm such matters directly with such Fee Mortgagee.

 

51.            COUNTERPARTS. This Lease may be executed in any number of counterparts, each of which shall be deemed to be one and the same instrument. A facsimile, email, PDF or electronic signature shall be deemed an original signature.

 

52.            INCORPORATION OF STATE LAW PROVISIONS. Certain provisions/ sections of this Lease and certain additional provisions/sections that are applicable or required by laws of the state in which the Demised Premises are located may be amended, described or otherwise set forth in more detail on Exhibit I attached hereto, which such Exhibit by this reference, is incorporated into and made a part of this Lease. In the event of any conflict between such state law provisions and any provision herein, the state law provisions shall control.

 

[SIGNATURE PAGE FOLLOWS]

 

84

 

	
 
    	
IN WITNESS WHEREOF this Lease has been duly   executed under as of the Effective Date.
    
	
 
    
	
WITNESS:
    	
 
    	
 
    
	
 
    	
 
    	
WE APP UPPER DARBY LLC, a Delaware limited   liability company
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    
	
WITNESS:
    	
 
    	
 
    
	
 
    	
 
    	
PATHMARK STORES, INC., a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   Vice President and Secretary
    

 

Signature Page to Lease By and Between
 WE APP UPPER DARBY LLC and PATHMARK STORES, INC.

 

85

 

EXHIBIT A

 

SITE PLAN OF DEMISED PREMISES

 

 

86

 

EXHIBIT B1

 

LEGAL DESCRIPTION OF THE LAND

 

 

87

 

 

88

 

EXHIBIT B2 

 

TITLE MATTERS AND ENCUMBRANCES

 

1.                                  Real estate taxes for the current and prior tax years which are hereafter assessed and are not yet due and payable.

 

2.                                  Public and private rights in and to that portion of the premises lying in the bed of Heather Road and Marshall Road.

 

3.                                  Easement and proportionate part of expense of maintenance of driveway on Northwest and alley on North (Premises A).

 

89

 

EXHIBIT C

 

REMEDIAL WORK

 

(Tenant Performs Construction with Landlord Reimbursement)

 

Reimbursement Cap: $450,000.00

 

Remedial Work Completion Date: the third anniversary of the Effective Date of the Lease

 

C. 1 Construction Documents. Tenant shall prepare, at Tenant’s expense, and deliver to Landlord Construction Documents (meaning plans and specifications prepared by design professionals licensed to prepare such plans and specifications which reasonably fix and describe the work to be performed by Tenant contractors) for roof replacements, parking area repairs and replacements, heating, ventilating and air conditioning upgrades, environmental remediation, asbestos abatement and automation improvements in an amount totaling at least the amount of the Reimbursement Cap, all as Landlord and Tenant shall reasonably and mutually agree. The Construction Documents shall substantially conform to and describe such work as so agreed, and when such Construction Documents are approved by Landlord, such approval not to be unreasonably withheld, conditioned or delayed, the work described therein shall be the “Remedial Work” referred to herein. Tenant shall provide at least 6 copies of the Construction Documents to Landlord. Tenant shall be solely responsible for the liabilities and expenses of all architectural and engineering services relating to the Remedial Work and for the adequacy and completeness of the Construction Documents submitted to Landlord and for the Remedial Work itself, notwithstanding Landlord’s approval thereof.

 

C.2 Remedial Work Reimbursement. Upon Landlord’s approval of the Construction Documents showing the Remedial Work to be performed, Tenant shall cause the Remedial Work to be performed in accordance with all of the terms and requirements of the Lease including Exhibit G, and the reasonable out-of-pocket costs to Tenant of performing the Remedial Work shall be eligible for Reimbursement in the manner provided below up to but not in excess of the Reimbursement Cap listed above. All costs for the Remedial Work in excess of the Reimbursement Cap shall be paid for entirely by Tenant, and Landlord shall not provide any reimbursement therefor. Any Remedial Work not completed by the Remedial Work Completion Date listed above shall be ineligible for reimbursement from Landlord, and such Remedial Work shall be paid for solely by Tenant.

 

Notwithstanding anything in the Lease to the contrary, prior to the Remedial Work Completion Date Tenant shall have no obligation to perform any Remedial Work if the cost of same will exceed the Reimbursement Cap, unless Tenant determines, in its sole, reasonable judgment, that such work is necessary and prudent for the proper maintenance and operation of the Demised Premises.

 

Reimbursement of the reasonable out-of-pocket costs to Tenant of performing Remedial Work up to the Reimbursement Cap and by the Remedial Work Completion Date shall be disbursed to Tenant by Landlord in no more than four disbursements the requests for each of which shall not

 

90

 

be submitted more frequently than monthly. For each disbursement, Tenant shall submit a requisition package to Landlord with (1) an itemization of the costs being requisitioned, (2) a certificate by an officer of Tenant that all such costs are reasonable out-of-pocket costs to Tenant of performing Remedial Work and have been incurred and paid for by Tenant, that to the actual knowledge of Tenant the Remedial Work included within the requisition has been performed substantially in accordance with the Construction Documents and in accordance with the Lease, (3) appropriate back-up documentation including, without limitation, lien releases (in a form reasonably approved by Landlord) and paid invoices and bills and (4) a statement by Tenant’s chief financial officer that such officer knows of no default under the Lease on the part of Tenant nor of any event which with the giving of notice or the passage of time or both could ripen into a default under the Lease. The final requisition package shall further include a copy of all applications for and copies of all governmental permits issued in connection with the Remedial Work and the plans referred to in Section 13 of the Lease for any Alterations. Notwithstanding anything herein or in the Lease to the contrary, Landlord shall not be obligated to reimburse any costs of Remedial Work if a default under the Lease has occurred and is continuing. Landlord shall pay the reimbursement to Tenant within thirty (30) days following Landlord’s receipt of the completed package. In the event that Landlord fails to pay the reimbursement within such thirty (30) day period, Tenant may deduct the reimbursebable amount against Rent due under the Lease.

 

C.3 Performance of Remedial Work by Tenant. No Remedial Work for which reimbursement is sought shall be performed except in accordance with the Construction Documents. In connection with its approval thereof, Landlord may delete from the Construction Documents any items or aspects of Remedial Work which in Landlord’s reasonable judgment (i) would increase the cost of operating the Building or performing any other work in the Building, (ii) are incompatible with the design, quality, equipment or systems of the Building, (iii) would require unusual expense to readapt the Premises to general grocery store use or (iv) otherwise do not comply with the provisions of this Lease. Prior to commencing any Remedial Work, Tenant shall submit to Landlord certificates of insurance on the part of Tenant contractors meeting the requirements of Exhibit G paragraph 1A (4). If any such Tenant contractor or any other person ever makes a claim against any Indemnitee (as such term is defined in Section 38) in connection with any Remedial Work, then Tenant shall indemnify such Indemnitee in the manner provided in the Lease against such claim.

 

C.4 Re-allocation of Reimbursement Cap. Upon the completion of the Remedial Work up to $20,000 of the Reimbursement Cap may be allocated to increase the “Reimbursement Cap” under any other lease between Tenant and any Affiliate of Landlord (except for that certain lease for space at 9210 Atlantic Avenue, Queens (Ozone Park), New York).

 

91

 

EXHIBIT D

 

FORM OF SUBORDINATION, NON-DISTURBANCE AND 
 ATTORNMENT AGREEMENT

 

KEY NO:

 

THIS AGREEMENT, made as of                   2010, by and among                 , a                     , and its successors and assigns, having an office at                       (hereinafter together with its successors and assigns called “Mortgagee”), WE APP Upper Darby LLC, a Delaware limited liability company, having an office c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 (hereinafter called “Landlord”) and Pathmark Stores, Inc., a Delaware corporation having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”).

 

W I T N E S S E T H:

 

WHEREAS, Mortgagee has made a loan, or is about to make a loan to Landlord in the original principal amount of $                evidenced by a promissory Note secured by, among other securities, a mortgage or deed of trust (hereinafter, as the same may be amended, supplemented or otherwise modified from time to time, called the “Mortgage”) covering a parcel or parcels of land owned by Landlord and described on Exhibit A annexed hereto and made a part hereof, together with the improvements now or hereafter erected thereon (said parcel or parcels of land and improvements thereon being hereinafter called the “Mortgaged Property”);

 

WHEREAS, by a certain lease heretofore entered into between Landlord and Tenant dated as of November    2010 and amended by [ ] (said lease and amendments being hereinafter collectively called the “Lease”), Landlord leased to Tenant the Mortgaged Premises together with the building now or hereafter erected on all or a portion of said premises (the Mortgaged Premises and the improvements on or to be erected thereon being thereinafter called the “Demised Premises”);

 

WHEREAS, a Memorandum of Lease dated November     2010 was recorded on November     , 2010 in the         in Book                 , Page                       ;

 

WHEREAS, a copy of the Lease has been delivered to Mortgagee, the receipt of which is hereby acknowledged; and

 

WHEREAS, Mortgagee is unwilling to make said loan to Landlord unless the Lease is subordinate to the lien of the Mortgage; and

 

WHEREAS, Section 16 of the Lease provides that the Lease shall become subject and subordinate to the lien of a mortgage of the fee interest of the Demised Premises if and when a non-disturbance agreement is entered into with respect to such mortgage; and

 

WHEREAS, the parties desire to subordinate the Lease to the lien of the Mortgage, and to provide for the non-disturbance of Tenant by Mortgagee.

 

92

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.               Mortgagee hereby consents to and approves the Lease.

 

2.               Tenant covenants and agrees with Mortgagee that the Lease and any extensions, renewals, replacements or modifications thereof and Tenant’s interest in the premises under the Lease are and at all times shall subject and subordinate to the lien of the Mortgage, without regard to the order of priority of recording of the Mortgage and the Memorandum of the Lease, subject, however, to the provisions of this Agreement.

 

3.               Tenant certifies that the Lease is presently in full force and effect.

 

4.               Mortgagee agrees that so long as the Lease shall be in full force and effect and so long as Tenant is not in default (beyond any applicable notice and cure period) in the payment of fixed rent as set forth in the Lease, or in the performance of any of the terms, covenants or conditions of the Lease on Tenant’s part to be performed:

 

A.             Tenant shall not be named or joined as a party defendant or otherwise in any suit, action or proceeding for the foreclosure of the Mortgage or to enforce any rights under the Mortgage or the bond or note or other obligations secured thereby unless required by law to do so; and

 

B.              The possession by Tenant of the Demised Premises and the Tenant’s rights thereto shall not be disturbed, affected or impaired by, nor will the Lease or the term thereof be terminated or otherwise affected by (i) any suit, action or proceeding upon the Mortgage or the bond or note or other obligation secured thereby, or for the foreclosure of the Mortgage or the enforcement of any rights under the Mortgage or any other documents held by the Mortgagee, or by any judicial sale or execution or other sale of the Mortgaged Property, or by any deed given in lieu of foreclosure, or by the exercise of any other rights given to the Mortgagee by any other documents or as a matter of law, or (ii) any default under the Mortgage or the bond or note or other obligation secured thereby.

 

5.               Mortgagee hereby acknowledges and agrees that all trade fixtures and equipment whether owned by Tenant or any subtenant or leased by Tenant from a Landlord/Owner in the Demised Premises shall be subject to the provisions of Section 17 of the Lease.

 

6.               If the Mortgagee shall become the owner of the Mortgaged Property by reason of foreclosure of the Mortgage or otherwise, or if the Mortgaged Property shall be sold as a result of any action or proceeding to foreclose the Mortgage or by a deed given in lieu of foreclosure, the Lease shall continue in full force and effect, without necessity for executing any new lease, as a direct lease between Tenant, as tenant thereunder, and the then owner of the Mortgaged Property, as landlord thereunder, upon all of the same terms, covenants and provisions contained in the Lease, and in such event:

 

93

 

A.             Tenant shall be bound to such new owner under all of the terms, covenants and provisions of the Lease for the remainder of the term thereof (including the Renewal Periods, if Tenant elects or has elected to exercise its options to extend the term) and Tenant hereby agrees to attorn to such new owner and to recognize such new owner as landlord under the Lease; and

 

B.              Such new owner shall be bound to Tenant under all of the terms, covenants and provisions of the Lease for the remainder of the term thereof (including the Renewal Periods, if Tenant elects or has elected to exercise its options to extend the term) which terms, covenants and provisions such new owner hereby agrees to assume and perform; provided, however, that such new owner shall not be (i) obligated to complete any construction work required to be done by Landlord within or outside of the Demised Premises pursuant to the provisions of the Lease or to reimburse Tenant for any construction work done by Tenant; however this provision shall not relieve such new owner from any repair or maintenance obligations of Landlord expressly set forth in the Lease accruing or arising following new owner’s acquisition of fee title to the Mortgaged Property or impair any express setoff rights of Tenant expressly set forth in the Lease accruing or arising following new owner’s acquisition of fee title to the Mortgaged Property; (ii) required to make any repairs to the Mortgaged Property or to the Demised Premises or to perform any other construction or other work, including without limitation the restoration of the Demised Premises following any casualty or taking; (iii) liable for the return of security deposits or letters of credit, if any, paid or delivered by or on behalf of Tenant to Landlord, except to the extent such sums are actually received by such new owner (or any Mortgagee if such Mortgagee is not the new owner); (iv) bound by any payment of rents, additional rents or other sums which Tenant may have paid more than one (1) month in advance to any prior Landlord unless such sums are actually received by Mortgagee or if such prepayment shall have been expressly approved of in writing by such new owner (or any Mortgagee if such Mortgagee is not the new owner); (v) bound by any agreement amending, modifying or terminating the Lease made without Mortgagee’s prior written consent; (vi) bound by any assignment of the Lease or sublease of the Demised Premises, or any portion thereof, made prior to the time such new owner succeeded to Landlord’s interest other than if made pursuant to the provisions of the Lease; (vii) liable on account of any default on the part of Landlord occurring prior to such new owner’s succeeding to Landlord’s estate; or (viii) subject to any counterclaims, offsets or defenses that Tenant might have against Landlord.

 

7.               If Landlord shall default in the performance of the Lease Tenant shall give written notice thereof to Mortgagee and Mortgagee shall have the right, but not the obligation, to cure such default in accordance with Section 23 of the Lease (and as provided therein the Mortgagee shall be entitled to such further time to cure as may be reasonably necessary for the Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion)

 

8.               Landlord has agreed in the Mortgage and other loan documents that the rents payable under the Lease shall be paid directly by Tenant to Mortgagee upon the occurrence of a default by Landlord under the Mortgage or any other loan document. Accordingly, after notice is given by Mortgagee to Tenant that the rents under the Lease should be paid to or at the

 

94

 

direction of Mortgagee, Tenant shall pay to Mortgagee, or in accordance with the directions of Mortgagee, all rents and other monies thereafter due and to become due under the Lease. Tenant shall have no responsibility to ascertain whether such demand by Lender is permitted under the Mortgage or any other loan document. Landlord hereby waives any right, claim or demand it may have nor or hereafter have against Tenant by reason of such payment to Mortgagee, and any such payment to Mortgagee shall discharge the obligations of Mortgagee to make such payment under the Lease.

 

9.               Any notices or communications given under this Agreement shall be in writing and shall be given by registered or certified mail, return receipt requested, postage prepaid, (a) if to Mortgagee at the address of Mortgagee as hereinabove set forth or at such other address as Mortgagee may designate by notice, or (b) if to Landlord at the address of Landlord as hereinabove, or at such other address as Landlord may designate by notice, or (c) if to Tenant, then one copy shall be delivered to the attention of the Senior Vice President of Real Estate of Tenant, another shall be delivered to the attention of General Counsel of Tenant, and another shall be delivered to the Director of Properties & Administration of Tenant, all at 2 Paragon Drive, Montvale, New Jersey 07645 or at such other addresses as Tenant may designate by notice. During the period of any postal strike or other interference with the mail, personal delivery shall be substituted for registered or certified mail.

 

10.             This Agreement shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective heirs, personal representatives, successors and assigns.

 

11.             This Agreement contains the entire agreement between the parties and cannot be changed, modified, waived or cancelled except by an agreement in writing executed by the party against whom enforcement of such modification, change, waiver or cancellation is sought.

 

12.             This Agreement and the covenants herein contained are intended to run with and bind all lands affected thereby.

 

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

 

	
WITNESS:
    	
 
    	
MORTGAGEE:
    
	
 
    	
 
    	
           
    
	
 
    	
 
    	
, a
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

95

 

	
WITNESS:
    	
 
    	
LANDLORD:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
WE   APP UPPER DARBY LLC, a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PATHMARK   STORES, INC., a Delaware corporation
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
 
    	
Title:   Vice President and Secretary
    
						

 

96

 

MORTGAGEE ACKNOWLEDGMENT

 

STATE OF                             )

SS:

COUNTY OF                         )

 

ON THIS                          day of                         2010, before me, the subscriber, personally appeared                                     to me known, who being by me duly sworn, did depose and say that he is                         of                           the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

 

LANDLORD ACKNOWLEDGMENT

 

COMMONWEALTH OF MASSACHUSETTS

 

Suffolk, ss.

 

On this                         day of                         2010, before me, the undersigned notary public,personally appeared                            , proved to me through satisfactory evidence of identification, which was a [current driver’s license] [a current U.S. passport] [my personal knowledge], to be the person whose name is signed on the preceding instrument andacknowledged the foregoing instrument to be his/her free act and deed as                         of WE APP Upper Darby LLC.

 

 

	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
My   Commission Expires:
    

 

97

 

TENANT ACKNOWLEDGMENT

 

STATE OF NEW JERSEY)

SS

COUNTY OF BERGEN)

 

ON THIS                         day of                          , 2010, before me, the subscriber, personally came Christopher W. McGarry, to me known, who being by me duly sworn, did depose and say that he is Vice President and Secretary of Pathmark Stores, Inc., the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

98

 

EXHIBIT A

 

LEGAL DESCRIPTION OF MORTGAGED PROPERTY

 

(Attached)

 

99

 

EXHIBIT E 

 

KEY NO:                                          

 

MEMORANDUM OF LEASE

 

THIS MEMORANDUM OF LEASE made as of November          , 2010 by WE APP UPPER DARBY LLC, a Delaware limited liability company, having an office at c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 Attn: Adam Winstanley (hereinafter called “Landlord”), and PATHMARK STORES, INC., a Delaware corporation, having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”).

 

W I T N E S S E T H:

 

1.              For and in consideration of the sum of TEN and no/100 Dollars ($10.00) and of other valuable considerations paid by Tenant to Landlord, the receipt and sufficiency of which are hereby acknowledged by Landlord, Tenant and Tenant hereby takes from Landlord that certain parcel of land (hereinafter called “Land”) described on Exhibit B and the buildings and other improvements now or hereafter erected on the Land together with the benefit of any and all easements, appurtenances, rights and privileges now or hereafter belonging thereto. The land is currently improved by an existing building consisting of 52,971 square feet of space (the “Building), as more particularly shown on the site plan attached hereto as Exhibit A. The Building and any buildings and improvements now or hereafter erected on the Land shall be hereinafter called “Improvements”. The Land and any Improvements now or hereafter erected thereon are hereinafter collectively called the “Demised Premises.” The Demised Premises have been leased to Tenant upon and subject to the covenants and agreements set forth in a certain agreement between Landlord and Tenant bearing even date herewith (hereinafter called the “Lease”).

 

2.               The Lease is in effect. The original term of the Lease shall continue to and include the date which is twenty (20) years after the day before the Commencement Date if the Commencement Date is the first day of a month, or twenty years (20) years after the last day of the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month.

 

3.               Tenant has the right and option to extend the term of the Lease from the date upon which it would otherwise expire for ten (10) separate renewal periods of five (5) years each (each such period being known as a “Renewal Period”). Said right and option, if exercised by Tenant, shall be in accordance with the terms and conditions of Section 4 of the Lease.

 

4.               The Lease contains the entire agreement between the parties. All persons are hereby put on notice of the existence of the Lease and are referred to the Lease for its terms and conditions. The Lease is on file in the offices of Tenant and the Landlord as hereinabove set forth.

 

5.              This Memorandum of Lease is prepared, signed and acknowledged solely for recording purposes under the laws of the Commonwealth of Pennsylvania, and is in no way

 

100

 

intended to change, alter, modify, amend or in any other way affect the rights, duties and obligations of Landlord and Tenant pursuant to the Lease; it being specifically understood and agreed between the parties that each has rights, duties and obligations imposed upon it in the Lease which are not expressly contained herein but are included herein by reference.

 

6. Upon expiration of the Lease term Landlord and its successors and assigns has irrevocably been named attorney-in-fact by Tenant in the Lease to execute, deliver and record a notice of termination of this Memorandum.

 

IN WITNESS WHEREOF this Memorandum of Lease has been duly executed as of the day and year first above written.

 

	
WITNESS:
    	
 
    	
WE APP UPPER DARBY LLC, a Delaware limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
PATHMARK STORES, INC., a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
Title:   Vice President and Secretary
    
					

 

101

 

EXHIBIT B

 

DEMISED PREMISES

 

102

 

EXHIBIT B

 

LEGAL DESCRIPTION OF THE LAND

 

103

 

COMMONWEALTH OF MASSACHUSETTS

 

Suffolk, ss.

 

On this               day of November 2010, before me, the undersigned notary public, personally appeared                                   , proved to me through satisfactory evidence of identification, which was a [current driver’s license] [a current U.S. passport] [my personal knowledge], to be the person whose name is signed on the preceding instrument and acknowledged the foregoing instrument to be his/her free act and deed as                          of WE APP Upper Darby LLC.

 

 

	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
My   Commission Expires:
    

 

 

STATE OF NEW JERSEY)

SS

COUNTY OF BERGEN)

 

ON THIS             day of November, 2010, before me, the subscriber, personally came Christopher W. McGarry, to me known, who being by me duly sworn, did depose and say that he is the Vice President and Secretary of Pathmark Stores, Inc., the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

104

 

EXHIBIT F

 

UNCONDITIONAL GUARANTY

 

WHEREAS, Pathmark Stores, Inc., a Delaware corporation (“Tenant”) desires to enter into a certain lease (“Lease”) of even date concerning Demised Premises known as 421 South 69th Boulevard, Upper Darby, Pennsylvania, with WE APP Upper Darby LLC, a Delaware limited liability company (“Landlord”). (Terms used herein and not otherwise defined will have the meaning given in the Lease.)

 

WHEREAS, as an inducement to entering into the Lease Landlord has required that the undersigned The Great Atlantic & Pacific Tea Company, Inc. (“Guarantor”) unconditionally guarantees the performance of all obligations of Tenant under the Lease.

 

NOW, THEREFORE, for good and valuable consideration, intending to be legally bound hereby, Guarantor agrees as follows:

 

1.               Guarantor unconditionally and absolutely guarantees to Landlord (which shall include its legal representatives, successors and assigns) the due and punctual performance of each and all of the Tenant’s obligations under or related to the Lease, including the timely payment of all sums due therein. Tenant’s obligations hereby guaranteed include, without limitation, those arising under amendments or modifications to the Lease hereafter entered into by Tenant and Landlord, all of which shall be so guaranteed even though Guarantor hereafter does not consent to or approve the same (Guarantor hereby waiving all rights of consent or approval with respect to such amendments or modifications).

 

2.               Guarantor waives presentment for payment or performance, notice of nonpayment or performance, notice of default, demand, protest or notice or acceptance of this Guaranty, any rights Guarantor may have by reason of any forbearance, modification, amendment, extension or any indulgence whatsoever that Landlord may grant or to which Landlord and the Tenant may agree with respect to the Lease, any and all notice of every kind to which Guarantor might otherwise be entitled with respect to the incurring of any further obligation or liability by Tenant to Landlord, demand for payment, the presentment of any instrument for payment, the protest or nonpayment thereof and any and all defenses whatsoever excepting only Tenant’s performance as required by the terms of the Lease. Guarantor also waives, unless and until all of the obligations of Tenant are fully paid and performed, any right to be subrogated in whole or in part to any right or claim of Landlord against Tenant and any right to require the marshalling of any assets of the Tenant, which right of subrogation or marshalling might otherwise arise from any partial payment by the Guarantor. It is expressly understood and agreed that Guarantor’s liability hereunder shall be unaffected by (i) any amendment or modification whatsoever of the provisions of the Lease, (ii) any extension of time for performance under the Lease, (iii) any delay by Landlord in exercising any right under the Lease or this Guaranty (none of which shall ever operate as a waiver of such right), or (iv) the release of Tenant or any other guarantor from performance or observance of any of the agreements or conditions contained in the Lease by operation of law or otherwise, whether made with or without notice to Guarantor, including without limitation any impairment, modification, change, release, rejection, disaffirmance, or limitation of the liability of Tenant, or any other guarantor of the Lease, of their estate in

 

105

 

bankruptcy or insolvency resulting from the operation of any present or future provision of the Federal Bankruptcy Code or other similar or insolvency statute, or from the decision of any court. Guarantor covenants that Guarantor will cause Tenant to maintain and preserve the enforceability of the Lease, as the same may hereafter be modified or amended, and will not permit it to take or to fail to take action of any kind the taking of which or the failure to take might be the basis for a claim that Guarantor has any defense to its obligation hereunder other than timely performance in full of the Lease in accordance with its terms. The joint and several liability of Guarantor hereunder shall exist irrespective of the validity or enforceability of the Lease.

 

3.               This shall be an agreement of suretyship as well as of guaranty, and Landlord, without being required to proceed first against Tenant or any other person or entity, may proceed directly against Guarantor whenever Tenant fails to make any payment due or fails to perform any obligation now or hereafter owed to Landlord without first resorting to or exhausting any other remedy and without first having recourse to the Lease; provided, however, that nothing herein contained shall prevent Landlord from suing on the Lease with or without making Guarantor a party to the suit or from exercising any other rights thereunder and if such suit, or other remedy, is availed of, only the net proceeds therefrom, after deduction of all Landlord’s Costs of Collection (defined below) shall be applied in reduction of the amount then due on this Guaranty.

 

4.               Guarantor agrees to pay to Landlord, on demand, all costs and expenses, including reasonable attorneys’ fees and litigation expenses, which Landlord may incur in the enforcement of Tenant’s obligations under the Lease or the liability of Guarantor hereunder (“Costs of Collection”). “Costs of Collection” includes, without limitation, all out of pocket expenses incurred by the Landlord’s attorneys and all costs incurred by Landlord including, without limitation, costs and expenses associated with travel on behalf of Landlord, which costs and expenses are related to or in respect of Landlord’s efforts to collect and/or to enforce any of the obligations and/or to enforce any of its rights, remedies or powers against or in respect of either or both Tenant or Guarantor (whether or not suit is instituted in connection with such efforts).

 

5. Guarantor represents and warrants to Landlord that (i) it has either examined the Lease or has had an opportunity to examine the Lease and has waived the right to examine; (ii) that it (and the individual acting on its behalf) has the full power, authority and legal right to execute and deliver this Guaranty; (iii) that this Guaranty is a binding legal obligation and is fully enforceable against Guarantor in accordance with its terms; (iv) that there is no action or proceeding pending or, to its knowledge, threatened against Guarantor before any court or administrative agency which might result in any material adverse change in its business or condition or in its assets; (v) that neither the execution nor delivery of this Guaranty nor fulfillment of nor compliance with the terms and provisions thereof will constitute a default under or result in the creation of any lien, charge or encumbrance upon any property or assets of Guarantor under any agreement or instrument to which it is now a party or by which Guarantor may be bound; and (vi) that Guarantor is the sole owner of all the common stock of Tenant and expects to derive financial benefit from the Lease.

 

106

 

6.               This Agreement shall be binding upon Guarantor and its legal representatives, successors and assigns, and shall inure to the benefit of Landlord and its legal representatives, successors and assigns, and is irrevocable until released in writing by Landlord. Each and every right, remedy and power hereby granted to Landlord or allowed it by law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by Landlord at any time and from time to time. The validity, construction and performance of this Guaranty shall be governed by the laws of the State where the Demised Premises are located (the “State”), without regard to conflict of law principles. If any clause or provision of this Guaranty should be held illegal or invalid by any court, the invalidity of such clause or provisions shall not affect any of the remaining clauses or provisions hereof. In case any agreement or obligation contained in this Guaranty should be held to be in violation of law, then such agreement or obligation shall be deemed to be the agreement or obligation of the Guarantor, as the case may be, to the full extent permitted by law. Each and every default hereunder or under the Lease shall give rise to a separate cause of action hereunder. The obligations and liabilities of hereunder shall be joint and several with any other guarantees given to Landlord in connection with the Lease. This Guaranty may be amended only by instrument in writing executed and delivered by both Landlord and Tenant. The provisions of this Guaranty shall bind Guarantor and its respective successors and assigns, and shall inure to the benefit of Landlord and its successors and assigns. This Guaranty and all consents, notices, approvals and all other documents relating hereto may be reproduced by photographic, microfilm, microfiche or other reproduction process and the originals thereof may be destroyed; and each party agrees that any reproductions shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not reproduction was made in the regular course of business) and that any further reproduction of such reproduction shall likewise be admissible in evidence.

 

7.               Guarantor consents to and agrees that the courts of the State shall have personal jurisdiction over Guarantor for any action brought on this Guaranty including the right to grant judgment against Guarantor personally together with interest on any judgment obtained by Landlord at the interest rate set forth in the Lease for late payments (but if the same shall be unlawful for any reason, then at the highest permissible interest rate). Guarantor further agrees and consents that venue, if any, for any such action shall be as set forth in the Lease. Guarantor waives and relinquishes any and all rights to removal of any such action to any other court. Guarantor also waives trial by jury in any judicial proceeding involving any matter in any way arising out of or relating to this Guaranty or the Lease.

 

8. Any notice, communication, request or other document or demand made under this Guaranty shall be in writing and shall be deemed given at the earlier of (i) the date received or (ii) three (3) business days after the date deposited in a United States Postal Service Depository, postage prepaid first class certified or registered mail, return receipt requested, addressed to Guarantor or Landlord, as the case may be, at the respective addresses set forth opposite their names below:

 

107

 

Landlord:

 

c/o Winstanley Enterprises, LLC

150 Baker Avenue Extension, Suite 303 

Concord, MA 01742

Attn. Adam Winstanley

 

with a copy similarly sent to:

 

WE APP Upper Darby LLC

DLA Piper LLP (US)

33 Arch Street, 26th Floor

Boston, MA 02110

Attention: Daniel A. Taylor, Esq. or Primo Fontana, Esq.

 

Guarantor:

 

The Great Atlantic & Pacific Tea Company, Inc.

2 Paragon Drive

Montvale, New Jersey 07645

Attn: Senior Vice President of Real Estate

 

with a copy similarly sent to

 

The Great Atlantic & Pacific Tea Company, Inc. 

2 Paragon Drive

Montvale, New Jersey 07645

Attn: General Counsel

 

Either party may change an address to which any such notice, communication, request or other document or demand is to be delivered to it or delivery of copies thereof by furnishing written notice of such change to the other party. Each party shall, when giving notices, send at least one (1) copy by Federal Express, U.S. Express Mail, or other overnight delivery service, to the addressee.

 

IN WITNESS WHEREOF, Guarantor has executed and sealed this Guaranty the day of November         , 2010.

 

 

	
WITNESS:
    	
 
    	
THE GREAT ATLANTIC & PACIFIC TEA   COMPANY, INC., a Maryland corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
 
    	
Name:   Christopher W. McGarry 
    
	
 
    	
 
    	
 
    	
Title:   Senior Vice President
    

 

108

 

EXHIBIT H

 

INSURANCE

 

This Exhibit G shall be incorporated into the Lease, and where terms of this Exhibit conflict with these terms within the Lease, the terms of this Exhibit shall prevail and govern the Lease.

 

1.               INSURANCE.

 

A. Coverage. Tenant shall purchase and maintain insurance during the entire Term of the Lease and any period Tenant (or any party claiming by, through or under Tenant) occupies any portion of the Demised Premises, for the benefit of the Tenant and Landlord (as their interest may appear) with terms and coverages reasonably satisfactory to Landlord, and with insurers having a minimum A.M. Best rating of at least A/X, and with such increases in limits as Landlord may from time to time reasonably request, but initially Tenant shall maintain the following coverages in the following amounts:

 

(1)             Commercial General Liability Insurance naming Landlord, Landlord’s management, leasing and development agents and Landlord’s mortgagee(s) from time to time as additional insureds, with coverage for premises/operations, personal and advertising injury, products/completed operations and contractual liability with combined single limits of liability of not less than $1,000,000 for bodily injury and property damage per occurrence and not less than 2,000,000 in the aggregate and excess liability insurance with a limit not less than $20,000,000 per occurrence and aggregate. Notwithstanding anything to the contrary contained herein, Tenant’s obligation to maintain general liability insurance may be satisfied through a program of self-insurance whereby Tenant self-insures the first $3,000,000.00 per claim as long as the program is supported by an A-rated insurance company and its third party administrator.

 

(2)             Property insurance covering property damage and business interruption for the entire Demised Premises. Covered property shall include the Building, boilers and machinery, all tenant improvements, office furniture, trade fixtures, office equipment, merchandise and all other items Tenant’s property on the Demised Premises. Such insurance shall name Landlord and Fee Mortgagee(s) from time to time as additional loss payees as their interests may appear. Such insurance shall be written on an “all risk” of physical loss or damage basis including but not limited to the perils of fire, extended coverage, windstorm, vandalism, malicious mischief, terrorism, sprinkler leakage, flood, windstorm and earthquake, for the full replacement cost value of the covered items and other endorsements as Landlord shall reasonably request from time to time and in amounts that meet any co insurance clause of the policies of insurance with a deductible amount not to exceed $750,000. Such insurance shall include rent continuation coverage of no less than twelve (12) months. Such policy or policies shall provide that the proceeds of any loss shall be payable to Landlord and Tenant and to the holder (as its interest may appear) of any Fee Mortgage to which this Lease is subordinate so long as such holder and future holders of such Fee Mortgage are obligated to apply proceeds of insurance in the manner provided for in this Lease.

 

109

 

(3)             Workers’ Compensation Insurance and Employers Liability Insurance with statutory limits and automobile liability insurance (coverage must include owned, leased, hired and non owned vehicles) with a limit of at least $1,000,000 Combined Single Limit-Bodily Injury & Property Damage.

 

(4)             Tenant shall purchase or shall cause each Tenant contractor performing work on the Demised Premises to carry insurance protecting against claims set forth below which may arise out of or result from the contractor’s operations on the Premises and naming Landlord, Landlord’s management, leasing and development agents as additional insureds for Premises Operations and Completed Operations. Waiver of Subrogation to apply under all policies.

 

(1)             claims under workers’ or workmen’s compensation, disability benefit and other similar employee benefit acts—in amounts as required by law;

 

(2)             claims for damages because of bodily injury, occupational sickness or disease, or death of his employees or any other person and other personal injury and motor vehicle liability — Public Liability - Single Limit (Combined) Per Occurrence. Bodily Injury/Property Damage $1,000,000 w/ $2,000,000 General/Completed Operations Aggregate. Automobile Liability - Single Limit (Combined) Per Occurrence Bodily Injury and Property Damage $1,000,000. Excess Liability Umbrella covering all above items $5,000,000 per Occurrence; and

 

(3) claims for damages, other than the work of the contractor itself, because of injury to or destruction of tangible property, including loss of use resulting therefrom — $1,000,000 per occurrence.

 

Tenant shall, prior to the commencement of the Term and on each anniversary of the renewal date thereof, furnish to Landlord certificate(s) evidencing such coverage, which certificate(s) shall state that such insurance coverage may not be canceled without at least thirty (30) days’ prior written notice to Landlord and Tenant. The insurance maintained by Tenant shall be deemed to be primary insurance and any insurance maintained by Landlord (acknowledging that Landlord has no obligation to maintain any insurance) shall be deemed secondary thereto. On all liability insurance Landlord, (and if requested, Landlord’s Fee Mortgagees and Landlord’s management, leasing and development agents shall be named as additional insureds with such coverage to be primary. Tenant agrees from time to time to deliver true and complete copies of all policies to Landlord upon request.

 

110

 

EXHIBIT H

 

PERCENTAGE RENT

 

If any Percentage Rent Event occurs as described in Section 5(E) of the Lease, then the following provisions shall immediately take effect, shall become a part of the Lease for the remainder of the Term and Tenant shall, in addition to all other rent provided for in the Lease, also pay Percentage Rent to Landlord in accordance with the following:

 

Section 5(E) Percentage Rent

 

5(E)(1) Percentage Rent - General Covenant. As used in this Section 5(E) the following terms have these meanings:

 

“Percentage Rent Rate” means one percent (1%) of Excess Gross Sales.

“Excess Gross Sales” means Gross Sales above the Gross Sales Benchmark. 

“Gross Sales” has the meaning given below in Section 5 (E)(2).

“Gross Sales Benchmark” means $44,500,000.00, which amount is increased by five (5%) every five years at the same time Fixed Annual Rent increases under Section 5 (A) of the Lease.

 

Tenant covenants and agrees to pay to Landlord, as Additional Rent, the amount, if any, of Tenant’s Excess Gross Sales during any calendar month or part thereof during the Term, multiplied by the Percentage Rent Rate (“Percentage Rent”). (For any period less than a full calendar month the Excess Gross Sales and the Gross Sales Benchmark shall be prorated.) Such amounts payable hereunder are referred to as “Percentage Rent” and are also included in the term “Additional Rent.”

 

5 (E)(2) Gross Sales - Definition. “Gross Sales” means the total amount in dollars of the actual price charged (including finance charges), by Tenant and any sublease, assignee, licensee or other person conducting sales from or with respect to the Demised Premises, whether for cash or on credit, for all sales of merchandise, food, beverages, services, gift or merchandise certificates, and all other receipts of business conducted at, in, on, about or from the Premises, including, but not limited to, all mail or telephone orders, all internet sales, and all catalog sales and all home delivery sales received or filled at, from or with respect to the Premises, and including all deposits not refunded to purchasers, all orders taken in, from or with respect to the Premises, whether or not such orders are filled elsewhere, receipts of sales through any vending machine or other coin or token operated device or otherwise at, in, on, about, from or with respect to the Premises, and sales and receipts occurring or arising as a result of solicitation off the Premises conducted by personnel operating from or reporting to, or under the supervision of any employee of Tenant located at the Demised Premises. Gross Sales shall not, however, include any separately stated sums collected and remitted for any retail sales tax or retail excise tax imposed by any duly constituted governmental authority, nor shall they include any exchange of goods or merchandise between the stores of Tenant where such exchange of goods or merchandise is made solely for the convenient operation of the business of Tenant and neither for the purpose of consummating a sale which has theretofore been made at, in, on, about or from the Premises nor for the purpose of depriving Landlord of the benefits of a sale which otherwise

 

111

 

would be made at, in, on, about, from or with respect to the Premises, nor the amount of any cash or credit refund made upon any sale where the merchandise sold, or some part thereof, is thereafter returned by the purchaser and accepted by Tenant, nor sales of fixtures which are not a part of Tenant’s stock in trade. Each sale upon installment, credit or layaway shall be treated as a sale for the full price in the month during which such sale shall be made, irrespective of the time when Tenant shall receive payments from its customers, and no deduction shall be allowed for uncollectible payment by customer or uncollected or uncollectible credit accounts.

 

5(E)(3) Records and Reporting of Gross Sales. Tenant shall utilize, and cause to be utilized, cash registers equipped with consecutive serialized tapes and/or such other devices for recording sales as are normally used in Tenant’s type of business to record all sales and Tenant shall keep for at least 36 months after expiration of each calendar year or part thereof during the Term, full, true and accurate books of account and records (“books”) conforming to generally accepted accounting principles showing all Gross Sales transacted at, in, from and upon the Premises for such calendar year or part thereof, including all tax reports, dated cash register tapes, sales slips, sales checks, sales books, bank deposit records and other supporting data. Such books shall be kept on the Premises during the Term. Within fifteen (15) days after the end of each calendar month or portion thereof included in the Term, Tenant shall furnish to Landlord a statement of Gross Sales transacted during such previous month or portion thereof; and on or before each February 1 included in the Term and within thirty (30) days after the end of the Term Tenant shall furnish to Landlord a statement (the “Annual Statement”) certified by an independent public accountant of Gross Sales itemized on a calendar month by calendar month basis transacted during the preceding calendar year or part thereof. In the event of Tenant’s failure to furnish any statement of Gross Sales required hereunder, in addition to all other remedies afforded it under this Lease, Landlord shall be entitled to have an accountant of Landlord’s selection conduct an audit of Tenant’s books for such period or periods for which Tenant has failed to furnish such statements. Such audit shall be at Tenant’s expense and Tenant shall promptly reimburse Landlord for the costs of such audit. All such costs shall be deemed additional charges. Notwithstanding the foregoing, Landlord shall have the right from time to time by its accountants or representatives to audit all statements of Gross Sales and in connection with such audits to examine all of Tenant’s books (including all supporting data and any other records from which Gross Sales may be tested or determined) of Gross Sales; and Tenant shall make all books readily available for such examination. Failure of Tenant to make all books readily available for such examination shall be deemed a default under this Lease; and in addition to all other remedies afforded it under this Lease, Tenant shall promptly reimburse Landlord for the costs of such audit. All such costs shall be deemed additional charges. If any such audit discloses that the actual Gross Sales for any month transacted by Tenant exceed those reported by more than two percent, Tenant shall forthwith pay to Landlord the cost of such audit and examination together with any additional Percentage Rent payable to Landlord. Any information obtained by Landlord pursuant to the provisions of this Section shall be treated as confidential, except in any litigation or arbitration proceedings between the parties, and, except further, that Landlord may disclose such information to existing Lenders and to prospective buyers and lenders.

 

5 (E)(4) Payment. On or before the 15th day after the expiration of each full or partial calendar month included in the Term, Tenant shall pay all Percentage Rent due for such prior

 

112

 

month to Landlord without demand, provided that if such amount exceeds the Percentage Rent that would be payable with respect to such month if Percentage Rent were calculated on the basis of Gross Sales for all months elapsed in the then current calendar year, Tenant shall not be required to pay any amount on account of such month unless and until such amount shall later be payable as part of the annual adjustment. Upon receipt by Landlord of each Annual Statement of Gross Sales there shall be an adjustment between Landlord and Tenant to the end that Landlord shall receive the exact amount of Percentage Rent due hereunder. Any overpayments by Tenant hereunder shall be credited against the next payments due under this Section. Any underpayments by Tenant shall be immediately due and payable. With respect to the calendar year in which the Term ends, the adjustments shall be prorated for the portion of the calendar year included in the Term.

 

113

 

EXHIBIT I 

 

LOCAL LAW ADDENDUM

 

(Attached)

 

114

 

Lease Addendum (PA)

 

This Lease Addendum (“Addendum”) is supplemental to and made a part of that certain Lease dated as of November     , 2010 (the “Lease”) by and between WE APP Upper Darby LLC (“Landlord”) and Pathmark Stores, Inc. (“Tenant”). Capitalized terms used in this Addendum without definition shall have the meanings set forth in the Lease. This Addendum is to be construed as supplemental to, and part of, the Lease. In the event of any inconsistency between the Lease and this Addendum, the terms and provisions of this Addendum shall prevail.

 

Notwithstanding the terms and conditions contained in the Lease, and to the limited extent hereof, the parties agree as follows:

 

1.               Construction Liens. Tenant acknowledges and agrees that any improvements, repairs, replacements or alterations contracted for by Tenant in or to the Demised Premises during the Term of the Lease are solely for the immediate use and benefit of Tenant and not Landlord. Tenant shall include the acknowledgement contained in the immediately preceding sentence in any contract made by Tenant for such work.

 

2.               Surrender of Premises/Tenant Waiver. Tenant expressly waives and releases the benefit to Tenant of 68. P.S. Section 250.501, being Section 501 of that act, approved April 6, 1951, entitled “Landlord and Tenant Act of 1951”, as may be amended from time to time, requiring notice to quit upon the expiration of the Term of the Lease or at the expiration of any extension or renewal thereof, or upon any earlier termination of the Lease, as therein provided. Tenant covenants and agrees to vacate, remove from and deliver up and surrender the possession of the Demised Premises to Landlord upon the expiration of the Term or upon the expiration of any extension or renewal thereof, or upon any earlier termination of the Lease, as provided thereunder, without such notice, in the condition required in the Lease.

 

115

 

EXHIBIT J 

 

Confidentiality Agreement

 

(Attached)

 

116

 

CONFIDENTIALITY AGREEMENT

 

THIS CONFIDENTIALITY AGREEMENT (this “Agreement”) is entered into as of                        , 2010 (the “Effective Date”) by and between [TENANT], a                      , having an address at                                   (“Company”) and                       , a                   , having an address at                       (“Disclosee”).

 

In connection with Disclosee’s interest in obtaining information concerning the business of Company, Company is furnishing or has furnished Disclosee with certain written information concerning Company’s gross sales that is either non-public, confidential or proprietary in nature. This information furnished to Disclosee or its affiliates, agents, representatives or employees (“Representatives”), together with analyses, compilations, forecasts, studies or other documents prepared by Disclosee or its Representatives that contain or otherwise reflect such information is hereinafter referred to as the “Information.” In consideration of Company furnishing Disclosee with the Information, Disclosee agrees that:

 

1.             The Information is Company’s property and will be kept confidential and shall not, without Company’s prior written consent, be disclosed by Disclosee or Representatives in any manner whatsoever, in whole or in part, and shall not be used by Disclosee or its Representatives in any manner to compete with the business of Company. Moreover, Disclosee may reveal the Information only to its Representatives who need to know the Information, are informed by Disclosee of the confidential nature of the Information and who shall agree to act in accordance with the terms and conditions of this Agreement. Disclosee shall be responsible for any breach of this Agreement by its Representatives.

 

2.             The term Information shall not include such portions of the Information which (i) are or become generally available to the public other than as a result of a disclosure by Disclosee or its Representatives, or (ii) become available to Disclosee on a non-confidential basis from a source (other than Company or its Representatives) that is not prohibited from disclosing such Information to Disclosee by a legal, contractual or fiduciary obligation to Company; or (iii) must be disclosed in order to comply with any applicable law, order, regulation or ruling; (iv) is already known to Disclosee or its Representatives or is already in its or their possession prior to disclosure by Company hereunder, or (v) is independently developed by Disclosee or its Representatives without reference to the Information.

 

3.             In the event that Disclosee or anyone to whom Disclosee transmits the Information pursuant to this Agreement becomes legally compelled to disclose any of the Information, Disclosee will provide Company with prompt notice so that Company may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Agreement. In the event that such protective order or other remedy is not obtained, or that Company waives compliance with the provisions of this Agreement, Disclosee will furnish only that portion of the Information that Disclosee is legally required and will exercise its best efforts to obtain reliable assurance that confidential treatment will be accorded the Information.

 

4.             Disclosee acknowledges that remedies at law may be inadequate or protect against breach of this Agreement, and Disclosee hereby in advance agrees that Company may seek injunctive relief without proof of actual damages. This Agreement shall be governed by and construed in

 

117

 

accordance with the laws of the State of New Jersey, without regard to conflict of law principles. The exclusive jurisdiction for any disputes concerning this Agreement shall be the Superior Court of New Jersey, Bergen County, and the parties hereby submit to such jurisdiction and waive all defenses relating to jurisdiction, venue and forum non convenience.

 

5.             Disclosee hereby defends, indemnifies and holds harmless Company and its Representatives and their respective successors and assigns against and from any loss, liability or expense, including attorney’s fees, arising out of any uncured breach by Disclosee or by its Representatives of any of the terms of this Agreement

 

6.             This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and all of which shall constitute the same Agreement. A facsimile, email, pdf or electronic signature shall be deemed an original signature.

 

[SIGNATURE PAGE FOLLOWS]

 

118

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
 [TENANT], a
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DISCLOSEE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
                                       ,   a
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

119

 

EXHIBIT B-2

 

LEASE FORM FOR LAWNSIDE, NJ

 

120

 

KEY NO:

 

LEASE

 

 

BY AND BETWEEN

 

 

WE APP LAWNSIDE LLC,
 LANDLORD

 

AND

 

 

PATHMARK STORES, INC.,
 TENANT

 

 

DEMISED PREMISES

 

 

AT

 

 

130 WHITE HORSE PIKE, LAWNSIDE, NEW JERSEY

 

121

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
EXHIBITS
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
DEMISED   PREMISES
    	
1
    
	
 
    	
 
    	
 
    
	
3.
    	
TERM
    	
2
    
	
 
    	
 
    	
 
    
	
4.
    	
RENEWAL   PERIODS
    	
2
    
	
 
    	
 
    	
 
    
	
5.
    	
RENT
    	
3
    
	
 
    	
 
    	
 
    
	
6.
    	
USE   AND OCCUPANCY
    	
5
    
	
 
    	
 
    	
 
    
	
7.
    	
TAXES
    	
7
    
	
 
    	
 
    	
 
    
	
8.
    	
SIGNAGE
    	
8
    
	
 
    	
 
    	
 
    
	
9.
    	
TRUE   LEASE
    	
8
    
	
 
    	
 
    	
 
    
	
10.
    	
REPAIRS
    	
9
    
	
 
    	
 
    	
 
    
	
11.
    	
INSURANCE
    	
9
    
	
 
    	
 
    	
 
    
	
12.
    	
REQUIREMENTS   OF LAW AND FIRE INSURANCE
    	
10
    
	
 
    	
 
    	
 
    
	
13.
    	
ALTERATIONS
    	
10
    
	
 
    	
 
    	
 
    
	
14.
    	
ACCESS   TO DEMISED PREMISES
    	
11
    
	
 
    	
 
    	
 
    
	
15.
    	
UTILITIES
    	
11
    
	
 
    	
 
    	
 
    
	
16.
    	
SUBORDINATION,   NON DISTURBANCE AND ATTORNMENT
    	
11
    
	
 
    	
 
    	
 
    
	
17.
    	
TRADE   FIXTURES
    	
12
    
	
 
    	
 
    	
 
    
	
18.
    	
ASSIGNMENT
    	
13
    
	
 
    	
 
    	
 
    
	
19.
    	
TITLE   AND AUTHORITY
    	
14
    
	
 
    	
 
    	
 
    
	
20.
    	
QUIET   ENJOYMENT
    	
15
    
	
 
    	
 
    	
 
    
	
21.
    	
UNAVOIDABLE   DELAYS
    	
15
    
	
 
    	
 
    	
 
    
	
22.
    	
END   OF TERM
    	
15
    
	
 
    	
 
    	
 
    
	
23.
    	
LANDLORD’S   DEFAULT
    	
16
    
	
 
    	
 
    	
 
    
	
24.
    	
ADDITIONAL   CHARGES
    	
16
    
	
 
    	
 
    	
 
    
	
25.
    	
TENANT’S   DEFAULT
    	
17
    
	
 
    	
 
    	
 
    
	
26.
    	
DESTRUCTION
    	
19
    
	
 
    	
 
    	
 
    
	
27.
    	
EMINENT   DOMAIN
    	
20
    
	
 
    	
 
    	
 
    
	
28.
    	
THIRD   PARTY LITIGATION
    	
21
    
	
 
    	
 
    	
 
    
	
29.
    	
WAIVER   OF DISTRAINT
    	
21
    
	
 
    	
 
    	
 
    
	
30.
    	
ESTOPPEL   CERTIFICATES
    	
21
    
	
 
    	
 
    	
 
    
	
31.
    	
NOTICES
    	
21
    

 

122

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
32.
    	
BROKER
    	
22
    
	
 
    	
 
    	
 
    
	
33.
    	
LIENS
    	
22
    
	
 
    	
 
    	
 
    
	
34.
    	
DEFINITION   OF LANDLORD
    	
22
    
	
 
    	
 
    	
 
    
	
35.
    	
ADJOINING   OR ADJACENT PROPERTY
    	
22
    
	
 
    	
 
    	
 
    
	
36.
    	
ENVIRONMENTAL   LAWS
    	
23
    
	
 
    	
 
    	
 
    
	
37.
    	
LEASEHOLD   MORTGAGE
    	
24
    
	
 
    	
 
    	
 
    
	
38.
    	
INDEMNITY
    	
26
    
	
 
    	
 
    	
 
    
	
39.
    	
LIMITATION   OF LANDLORD’S LIABILITY
    	
26
    
	
 
    	
 
    	
 
    
	
40.
    	
BOOKS   AND RECORDS
    	
27
    
	
 
    	
 
    	
 
    
	
41.
    	
SATELLITE   DISH
    	
27
    
	
 
    	
 
    	
 
    
	
42.
    	
NO   PRESUMPTION AGAINST DRAFTER
    	
27
    
	
 
    	
 
    	
 
    
	
43.
    	
SUCCESSORS   AND ASSIGNS; AFFILIATES
    	
27
    
	
 
    	
 
    	
 
    
	
44.
    	
CAPTIONS
    	
27
    
	
 
    	
 
    	
 
    
	
45.
    	
INVALIDITY   OF CERTAIN PROVISIONS
    	
27
    
	
 
    	
 
    	
 
    
	
46.
    	
CHOICE   OF LAW/JURISDICTION
    	
28
    
	
 
    	
 
    	
 
    
	
47.
    	
NO   WAIVER
    	
28
    
	
 
    	
 
    	
 
    
	
48.
    	
ATTORNEY’S   FEES
    	
28
    
	
 
    	
 
    	
 
    
	
49.
    	
WAIVER   OF TRIAL BY JURY
    	
28
    
	
 
    	
 
    	
 
    
	
50.
    	
MISCELLANEOUS
    	
28
    
	
 
    	
 
    	
 
    
	
51.
    	
COUNTERPARTS
    	
29
    
	
 
    	
 
    	
 
    
	
52.
    	
INCORPORATION   OF STATE LAW PROVISIONS
    	
29
    

 

123

 

LEASE

 

THIS LEASE (this “Lease”), made as of November           2010 (the “Effective Date”), by and between WE APP LAWNSIDE LLC, a Delaware limited liability company with an office c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 Attn: Adam Winstanley (hereinafter called “Landlord”), and PATHMARK STORES, INC., a Delaware corporation, having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”). This Lease is guaranteed by The Great Atlantic & Pacific Tea Company, Inc., a Maryland corporation (“Guarantor”) pursuant to a guaranty of even date herewith (as the same may be amended, supplemented or modified from time to time, the “Guaranty”).

 

WITNESSETH:

 

Landlord and Tenant covenant and agree as follows:

 

1.                  EXHIBITS. The following Exhibits are annexed hereto and made a part hereof:

 

A.             Exhibit A, Site Plan of the Demised Premises;

 

B.              Exhibit B1, Legal Description of the Land;

 

C.              Exhibit B2, Existing Encumbrances on Land

 

D.              Exhibit C, Remedial Work

 

E.              Exhibit D, Form of Subordination, Non-Disturbance and Attornment Agreement;

 

F.              Exhibit E, Memorandum of Lease;

 

G.              Exhibit F, Form of Guaranty;

 

H.              Exhibit G, Insurance Requirements;

 

I.               Exhibit H, Percentage Rent;

 

J.               Exhibit I, Local Law Addendum; and

 

K.              Exhibit J, Confidentiality Agreement.

 

2.           DEMISED PREMISES.

 

A. Landlord hereby leases to Tenant and Tenant hereby takes from Landlord that certain parcel of land (hereinafter called “Land”) commonly known as 130 White Horse Pike, Lawnside, New Jersey and more particularly described on Exhibit B1 and the buildings and other improvements now or hereafter erected on the Land together with the benefit of and subject to any and all easements, appurtenances, rights and privileges and other matters of record now or hereafter arising including those described in Exhibit B2. The land is currently improved by an

 

124

 

existing building consisting of approximately 55,760 square feet of space (the “Building”), as more particularly shown on the Site Plan attached hereto as Exhibit A. The Building and any other buildings and improvements now or hereafter erected on the Land shall be hereinafter called “Improvements.” The Land and any Improvements are hereinafter collectively called the “Demised Premises.”

 

B. Tenant or its Affiliates owned or leased the Demised Premises prior to their being purchased by Landlord. Landlord shall have no obligation or risk whatsoever with respect to the condition of the Demised Premises, Tenant taking the Demised Premises “AS IS, WHERE IS, WITH ALL FAULTS”. Tenant acknowledges that it has had full opportunity to inspect the Demised Premises with engineering and other consultants of its choice. Tenant’s commencing possession under this Lease shall be deemed an acknowledgment that the condition of the Demised Premises is satisfactory. Tenant further acknowledges that neither Landlord nor any person acting under Landlord has made or implied any representations or warranties whatsoever concerning the Demised Premises, their condition or this Lease except as set forth in Section 19.

 

3.           TERM.

 

A.             The term of this Lease (“Term”) shall commence (the “Commencement Date”) on the Effective Date and shall continue to and include the date (the “Expiration Date”) that is twenty (20) years after the day before the Commencement Date if the Commencement Date is the first day of a month, or twenty (20) years after the last day of the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month.

 

B.              The term “Lease Year” shall mean the following: the first Lease Year shall be the 12 month period commencing on the Commencement Date if the Commencement Date is the first day of a month, or on the first day of the month immediately following the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month; and each succeeding 12 month period thereafter shall be a Lease Year.

 

4. RENEWAL PERIODS. Tenant shall have the right and option to extend the Term of this Lease from the date upon which it would otherwise expire for ten (10) separate consecutive renewal periods of five (5) years each (each such period being hereinafter called a “Renewal Period”) upon the same terms and conditions as are herein set forth except the rent for such Renewal Period shall be as provided in Section 5 below; provided, however, that at the time of so electing to extend and also at the time any Renewal Period commences Tenant is not in default beyond any applicable notice and cure period, and this Lease is then in full force and effect. If Tenant fails timely so to exercise its option for any Renewal Period, time being of the essence, Tenant shall have no further extension rights hereunder. All references to the Term shall mean the Initial Term as it may be extended by any Renewal Period. If Tenant elects to exercise any one or more of said options to renew, it shall do so by giving written notice (“Renewal Notice”) of such election to Landlord at any time during the term of this Lease (including any Renewal Periods) on or before the date which is three hundred sixty five (365) days before the beginning of the Renewal Period or Renewal Periods for which the term hereof is to be renewed by the exercise of such option or options. If Tenant elects to exercise any one or more of said options to renew by serving a Renewal Notice in accordance with the foregoing, the

 

125

 

Term of this Lease shall be automatically extended for the Renewal Period(s) covered by the Renewal Notice without execution of an extension or renewal lease. If Tenant shall not have given notice of such election to Landlord by such date in respect of any Renewal Period, Landlord shall (unless notice shall have been given as hereinafter specifically permitted) give notice to Tenant that Tenant has failed to give notice of such election to Landlord (hereinafter called the “Option Notice”). Tenant’s time to give notice of such election shall continue until the date which is sixty (60) days after receipt of the Option Notice. Landlord shall not give the Option Notice prior to the date which is four hundred twenty-five (425) days before the Expiration Date. If Landlord shall not have given the Option Notice prior to the date which is four hundred twenty-five (425) days before the beginning of the next succeeding Renewal Period, the term of this Lease shall be extended beyond the Expiration Date to the date which is four hundred twenty-five (425) days after the date on which the Option Notice is given by Landlord.

 

5.               RENT.

 

A. Beginning on the Commencement Date and continuing throughout the Term, Tenant covenants and agrees to pay Landlord for the Demised Premises, without previous demand therefor, fixed annual rent (“Fixed Annual Rent”) as follows:

 

	
Lease Year
    	
 
    	
Fixed Annual Rent
    	
 
    	
Fixed Monthly Rent
    	
 
    
	
1-5
    	
 
    	
$
    	
574,885.00
    	
 
    	
$
    	
47,907.08
    	
 
    
	
6-10
    	
 
    	
$
    	
603,629.25
    	
 
    	
$
    	
50,302.44
    	
 
    
	
11-15
    	
 
    	
$
    	
633,810.71
    	
 
    	
$
    	
52,817.56
    	
 
    
	
16-20
    	
 
    	
$
    	
665,501.25
    	
 
    	
$
    	
55,458.44
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
First Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
21-25
    	
 
    	
$
    	
698,776.31
    	
 
    	
$
    	
58,231.36
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Second Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
26-30
    	
 
    	
$
    	
733,715.13
    	
 
    	
$
    	
61,142.93
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Third Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
31-35
    	
 
    	
$
    	
770,400.88
    	
 
    	
$
    	
64,200.07
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fourth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
36-40
    	
 
    	
$
    	
808,920.93
    	
 
    	
$
    	
67,410.08
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
41-45
    	
 
    	
$
    	
849,366.97
    	
 
    	
$
    	
70,780.58
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
46-50
    	
 
    	
$
    	
891,835.32
    	
 
    	
$
    	
74,319.61
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Seventh Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
5 1-55
    	
 
    	
$
    	
936,427.09
    	
 
    	
$
    	
78,035.59
    	
 
    

 

126

 

	
Eighth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
56-60
    	
 
    	
$
    	
983,248.44
    	
 
    	
$
    	
81,937.37
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ninth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
61-65
    	
 
    	
$
    	
1,032,410.86
    	
 
    	
$
    	
86,034.24
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tenth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
66-70
    	
 
    	
$
    	
1,084,031.41
    	
 
    	
$
    	
90,335.95
    	
 
    

 

B.              All Fixed Annual Rent shall be payable by Tenant in equal monthly installments in advance on the first day of every calendar month during the Term of this Lease (and any Renewal Periods), and shall be payable at the office of the Landlord first above set forth or at such other address as Landlord shall have given in a notice to Tenant) in current U.S. currency by check drawn on a clearinghouse bank and payable directly to Landlord (or, if requested by Landlord from time to time by electronic fund transfer, to an account designated by Landlord). Rent for a part of a month shall be prorated on a daily basis and paid on the Commencement Date. Further, the rent for the first full month shall be paid on the Commencement Date.

 

C.              Beginning on the Commencement Date and continuing throughout the Term, Tenant covenants and agrees to pay, without previous demand therefor, all sums other than Fixed Annual Rent due under or required to be paid by this Lease (all of the foregoing being “Additional Rent” regardless of however defined or described in this Lease).

 

D. It is the intention of the parties hereto that the Fixed Annual Rent payable hereunder shall be net to Landlord free of cost, charge, offset, diminution or other deduction, so that this Lease shall yield to Landlord the net Fixed Annual Rent specified herein during the Term of this Lease. Notwithstanding applicable law to the contrary and with the sole exception of those costs, expenses and obligations expressly stated in this Lease to be the sole responsibility of Landlord (or the responsibility of third parties as provided in Section 36C), all costs, expenses and obligations of every kind and nature whatsoever relating to this Lease, the Demised Premises or imposed on Landlord under applicable law either now existing or hereafter enacted and whether or not within the contemplation of the parties on account of this Lease, the Demised Premises or Landlord’s interest in the Demised Premises are assumed and shall be paid by Tenant when and as due as Additional Rent. Without limiting the generality of the foregoing, Tenant shall at its sole expense (which expense shall be deemed Additional Rent hereunder) be responsible for payment of all Taxes, all electricity, telecommunication service, gas, water, sewer, telephone, refuse disposal, and other charges for utilities and services supplied to the Demised Premises, insurance costs, amounts due under any title encumbrance matter described in Exhibit B2, and all costs of cleaning, maintaining, repairing and replacing the Demised Premises or any portion thereof and of complying with all laws now existing or hereafter enacted including all Environmental Laws (defined below). Any cost, expense or obligation directly relating to the Demised Premises that is not expressly declared in this Lease to be that of Landlord shall be deemed to be an obligation of Tenant to be performed by Tenant at Tenant’s sole expense, and to the greatest extent permitted by law Tenant shall indemnify and defend Landlord against, and hold Landlord harmless from, the same, and Tenant’s liability for the payment and performance of such amounts and obligations that shall arise during the Term is hereby expressly provided to survive the expiration of the Term or early termination of this

 

127

 

Lease. Fixed Annual Rent, Additional Rent, and all other sums payable hereunder by Tenant, shall be paid without notice or demand, and without set off, counterclaim, recoupment, abatement, suspension, deduction, or defense (other than payment) whatsoever. Except as otherwise expressly set forth in this Lease with respect to certain events of casualty in Section 26 or condemnation in Section 27, Tenant shall in no event have any right to terminate this Lease, and any right so to terminate (or to abate, suspend, set off or otherwise deduct from Fixed Annual Rent or Additional Rent) under applicable law is hereby waived to the greatest extent permitted by law. It is the intention of the parties that the obligations of Tenant hereunder shall be separate and independent covenants and shall not be discharged or otherwise affected by any law or regulation now or hereafter applicable to the Demised Premises or any other restriction on Tenant’s use, and that Fixed Annual Rent, Additional Rent, and all other sums payable by Tenant hereunder shall continue to be payable in all events, and that the obligations of Tenant hereunder shall continue unaffected throughout the Term. Landlord, at its sole cost and expense, shall be responsible for the following: (i) payment of any amounts relating to Fee Mortgages or other encumbrances or liens created by Landlord, (ii) management fees, administrative costs, professional fees and any other costs incidental to its fee ownership of the Demised Premises; and (iii) and cost, expense, or liability resulting from the negligent or willful misconduct of Landlord, its employees or agents. For the avoidance of doubt, Tenant shall be responsible for all costs, expenses and obligations of Landlord in that certain cross-easement agreement listed on Exhibit B2 as item 7.

 

E. If any person (other than an Affiliate of the initial Guarantor (being The Great Atlantic & Pacific Tea Company, Inc.) or a successor by merger of acquisition) becomes an assignee of this Lease or sublets all or substantially all of the Demised Premises or otherwise becomes or is a Tenant under this Lease, such occurrence shall be a Percentage Rent Event and the provisions of Exhibit H shall immediately become applicable for the remainder of the Term.

 

6.             USE AND OCCUPANCY.

 

A. The Demised Premises may be used and occupied for the operation of a supermarket, drugstore, automated teller machine, bank, all other uses customary and incidental to a supermarket and, so long as the Minimum Credit Test (defined in Section 25D) is then met, all other lawful purpose or purposes. Notwithstanding anything to the contrary contained in this Lease, Tenant shall not be obligated to open, to conduct or to remain open for the conduct of any business in the Demised Premises but shall nevertheless pay Fixed Annual Rent and all Additional Rent when and as the same is due. At all times Tenant shall comply with all laws, ordinances and bylaws, regulations, codes, (including, without limitation, the Americans With Disabilities Act of 1990, or “ADA”) permits, orders and conditions of any special permits or other governmental approvals (“law” or “laws”) applicable from time to time to the Demised Premises or Tenant or both, foreseen or unforeseen, and whether or not the same interfere with Tenant’s occupancy. Tenant shall procure all approvals, licenses and permits, in each case promptly giving Landlord true and complete copies of the same and all applications therefor. Tenant shall never overload any of the Building systems, including the floors and mechanical, electrical and structural systems, and shall also keep the Demised Premises equipped with appropriate safety appliances and comply with all requirements of insurance and of insurance inspection or rating bureaus. Tenant shall not itself, nor shall Tenant permit or suffer persons

 

128

 

acting under Tenant to, either with or without negligence, injure, overload, deface, damage or otherwise harm the Demised Premises or any part thereof or use the Demised Premises contrary to any law or in a manner likely to create any nuisance. It is intended that Tenant bear the sole risk of all present or future laws affecting the Demised Premises, and Landlord shall not suffer any reduction in any rent on account of the enforcement of laws.

 

B.              Subject to Landlord’s consent, not to be unreasonably withheld, delayed or conditioned, Tenant shall have the right to enter into agreements with utility companies creating easements in favor of the utility companies as are required in order to service the Demised Premises. Also subject to Landlord’s consent, not to be unreasonably withheld, delayed or conditioned, Tenant may enter into reciprocal parking agreements and easements for ingress and egress as are required in order to service the Demised Premises and any adjoining or adjacent land designated by Tenant. Landlord covenants and agrees to execute any and all documents, instruments or certificates reasonably required in connection with such matters to which it has given its consent, and to take all other action, in order to effectuate the same, all at Tenant’s cost and expense. In no event, however, shall Landlord be required to consent to nor shall Tenant have the power to enter into any easement or reciprocal parking agreement (i) that is for a term in excess of the term of this Lease (as the same may be renewed or extended) except for utility and access easements that may be perpetual or otherwise extend beyond the term of this lease, or (ii) that diminishes the economic value of the Land. Landlord further covenants and agrees, upon request of tenant, to convey without compensation therefor, insubstantial perimeter portions of the Land for highway or roadway purposes, to the state in which the demised premises are situate or any other municipal or governmental body, provided, however, that any such conveyance shall not constitute a taking (as defined in section 28 below) nor constitute grounds for tenant to terminate this Lease. Notwithstanding anything to the contrary or otherwise set forth herein, any encumbrance on the Demised Premises shall be subject to any requirements imposed by any Fee Mortgage (provided that Landlord shall reasonably cooperate with Tenant, at no out of pocket cost to Landlord, in connection with obtaining any requisite consent from any Fee Mortgagee as defined below).

 

C.              The provisions of this paragraph shall only apply if and only if the Minimum Credit Test is not met. If Tenant either gives Landlord written notice of Tenant’s intention to discontinue permanently the operation of its business in the Demised Premises or any part of the Demised Premises or discontinues the operation of its business in the Demised Premises or any part of the Demised Premises for a period of one (1) year for any reason (other than Destruction or Taking that pursuant to the applicable provisions of this Lease entitles Tenant to terminate this Lease), then Landlord may terminate this Lease as to the Demised Premises, or if applicable, the part of the Demised Premises with respect to which Tenant has given notice of its intention to discontinue, or in which Tenant has discontinued, its operations, by thirty (30) days’ written notice to Tenant of Landlord’s election to terminate this Lease (or, if applicable, Landlord’s election to terminate this Lease as to the part of the Demised Premises with respect to which Tenant has given notice of its intention to discontinue, or in which Tenant has discontinued, its operations). Tenant may override Landlord’s election only once by, as applicable, resuming operations of its business in the Demised Premises within twenty-five (25) days after receipt of Landlord’s notice or by rescinding its notice of its intention to discontinue its business in writing to Landlord delivered within twenty-five (25) days after receipt of Landlord’s notice.

 

129

 

7.            TAXES.

 

A.             Tenant shall, during the term of this Lease, as Additional Rent, pay and discharge punctually, as and when the same shall become due and payable, all taxes, special and general assessments, water rents, rates and charges, sewer rents and other governmental impositions and charges of every kind and nature whatsoever, extraordinary as well as ordinary, including rent and/or occupancy taxes (hereinafter collectively referred to as “Taxes”), and each and every installment thereof that shall or may during the term of this Lease, become due and payable, or liens upon the Demised Premises or any part thereof, together with all interest and penalties thereon, under or by virtue of all present or future laws, ordinances, requirements, orders, directives, rules or regulations of the Federal, State, County, Town and City Governments and of all other governmental authorities whatsoever (all of which shall also be included in the term “Taxes” as heretofore defined).

 

B.              To the extent permitted by law, Tenant or its designees shall have the right to apply for the conversion of any assessment for local improvements assessed during the term of this Lease in order to cause the same to be payable in annual installments. Landlord agrees to permit the application for the foregoing conversion to be filed in Landlord’s name, if necessary, and shall execute any and all documents, instruments or certificates reasonably requested by Tenant to accomplish the foregoing.

 

C.              Tenant shall be deemed to have complied with the covenants of this Lease if payment of Taxes shall have been made either within any period allowed by law or by the applicable governmental authority during which payment is permitted without penalty so long as the Taxes shall never become subject to a tax sale on the Demised Premises or subject Landlord to any civil or criminal liability. Tenant shall produce and exhibit to Landlord satisfactory evidence of payment prior to the expiration of any such period.

 

D.              All Taxes shall be apportioned pro rata between Landlord and Tenant in accordance with the respective portions of such year during which the Term shall be in effect. Notwithstanding anything to the contrary contained herein, if the Term hereof terminates prior to the date which would have been the expiration thereof but for the earlier termination, then Tenant shall pay those Taxes which would have been paid by Tenant to and including the term expiration date and this obligation shall expressly survive such termination.

 

E. So long as the requirements of Paragraph C of this Section are complied with, Tenant or its designees shall have the right to contest or review all Taxes by legal proceedings, or in such other manner as it may deem suitable. Tenant or its designees shall inform Landlord of any such proceedings and conduct such proceedings promptly at its own cost and expense, and free of any expenses to Landlord, and if necessary, in the name of and with the cooperation of Landlord (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant). Landlord shall execute all documents, instruments or certificates reasonably necessary and correct to accomplish the foregoing. Notwithstanding anything to the contrary or otherwise set forth herein, any such contest shall be subject to compliance with all applicable provisions of any Fee Mortgage (provided that Landlord shall reasonably cooperate with Tenant, at no material out of pocket cost to Landlord, in connection with such compliance).

 

130

 

F.              Landlord covenants and agrees that any refunds or rebates on account of Taxes paid by Tenant pursuant to the provisions of this Lease shall belong to Tenant. Any refunds received by Landlord shall be deemed trust funds and as such are to be received by Landlord in trust and paid to Tenant forthwith. Landlord will, upon the request of Tenant, sign any receipts that may be necessary to secure the payment of any such refund or rebate, directly to Tenant and/or will pay over to Tenant such refund or rebate as received by Landlord. Landlord further covenants and agrees on request of Tenant at any time, and from time to time, but without cost to Landlord, to make application individually (if legally required) or to join in Tenant’s application (if legally required) for separate tax assessments for such portions of the Demised Premises as Tenant shall at any time, and from time to time, reasonably designate. Landlord hereby agrees, upon request of Tenant, to execute all documents, instruments or certificates as shall reasonably be required by Tenant (so long as the same impose no material obligations on Landlord or expose Landlord to any liability).

 

G.              Nothing herein or in this Lease otherwise contained shall require or be construed to require Tenant to pay any inheritance, estate, succession, transfer, gift, franchise, income or profit taxes, that are or may be imposed upon Landlord, its successors or assigns, whether arising out of Landlord’s ownership of the Demised Premises, this Lease or otherwise; provided, however, that if at any time hereafter there is levied any tax on Landlord in lieu of real estate taxes based solely upon the ownership of real property, by property owners, in general, within the tax jurisdiction within which the Demised Premises are located, then such tax shall be considered to be an item of Taxes but for purposes of computing the amount of such tax payable by Tenant, the Demised Premises shall be deemed to be the sole real property owned by Landlord.

 

H. In the event that any fee mortgagee (“Fee Mortgagee”) requires the escrow of Real Estate Taxes or insurance premiums, Tenant shall pay to such Fee Mortgagee in escrow, on the first day of each and every month during the term of this Lease, one twelfth (1/12) of all estimated charges for the ensuing twelve (12) month period as reasonably estimated by the Fee Mortgagee based on current bills for same. Tenant shall deposit at least ten (10) days prior to the first date on which any interest or penalty will accrue such additional amounts as may be necessary so that there shall at all times be sufficient funds in escrow to pay such charges.

 

8.              SIGNAGE. Tenant and any assignee or subtenant of Tenant shall have the right to install, maintain and replace in, on or in front of any Improvement or location on the Demised Premises or in any part thereof such signs and advertising matter as Tenant, and with Tenant’s consent, any such assignee or subtenant of Tenant may desire, provided that Tenant shall comply with any applicable requirements of governmental authorities having jurisdiction and shall obtain any necessary permits for such purposes. As used in this Section, the word “sign” shall be construed to include any placard, pylon, logo, light or other advertising symbol or object, irrespective or whether same be temporary or permanent. All signs shall be Tenant’s personal property and shall be maintained and removed by Tenant upon termination of this Lease at Tenant’s sole expense.

 

9.              TRUE LEASE. It is the intent of Landlord and Tenant and the parties agree that this Lease is a true lease and that this Lease does not represent a financing agreement. Each party shall reflect the transaction represented hereby in all applicable books, records, and reports

 

131

 

(including income tax filings) in a manner consistent with “true lease” treatment rather than “financing” treatment.

 

10.            REPAIRS. Tenant shall, at all times during the Term of this Lease, and at its own cost and expense, keep and maintain or cause to be kept and maintained in repair and good condition the Building and improvements at any time erected on the Demised Premises. Without limitation, Tenant shall perform the Remedial Work described in Exhibit C. Landlord shall not be required to furnish services or facilities or to make any improvements, repairs, replacements or alterations in or to the Demised Premises whatsoever during the Term of this Lease. Without limiting the generality of the foregoing, Tenant shall be responsible for the entire Demised Premises and shall manage, maintain, repair, replace, clean, secure, protect, defend and keep in compliance with all governmental requirements, now existing or hereafter enacted, the Demised Premises and all improvements and appurtenances and all utilities, facilities, installations and equipment used in connection therewith, including all walls, all floor coverings, glass, windows, doors, partitions, exterior and interior lighting, signage, elevators, electrical, plumbing, heating, ventilating, fire protection and life safety, security and other building systems, water and sewage systems and other fixtures or equipment serving the Demised Premises, keeping the Demised Premises and all improvements and appurtenances in at least as good condition as on the Commencement Date. Without limitation, Tenant shall provide all cleaning, painting, janitorial services, rubbish disposal, periodic exterior waterproofing treatments to the Building, window caulking, maintenance of all gas, water, electric and other utility lines from public ways to the Demised Premises, and shall repair, maintain and replace all landscaping, roads, parking areas, and walkways appurtenant to the Demised Premises, and shall provide all snowplowing services thereto. Tenant shall provide a copy of all current vendor contracts, if any, relating to the foregoing to Landlord at least annually and from time to time otherwise upon Landlord’s request.

 

11.            INSURANCE.

 

A.             Tenant shall maintain at its own cost and expense insurance policies insuring against loss by fire, lightning, the perils of extended coverage and malicious mischief covering the Demised Premises and the other Improvements in the Demised Premises and other perils as more fully described in Exhibit G.

 

B.              So long as Tenant performs its obligations in Paragraph A of this Section, Landlord hereby waives all rights of recovery against Tenant and any other occupant(s) of the Demised Premises and any of their agents and employees for damage or destruction to any and all of the Improvements, including without limitation, the Building, arising out of fire or other casualty whether or not caused by acts or negligence of the aforementioned persons. Tenant hereby waives all rights of recovery against Landlord, its agents and employees for damage or destruction to any and all of the Improvements, including without limitation, the Building and to Tenant’s trade fixtures, equipment and inventory arising out of fire or other casualty whether or not caused by the acts or negligence of Landlord, its agents or employees.

 

C.              Tenant shall maintain at its own cost and expense public liability and other insurance in accordance with the requirements of Exhibit G.

 

132

 

D.              Any insurance required to be provided by Tenant pursuant to this Lease may be provided by blanket insurance covering the Demised Premises and other locations of Tenant, provided such blanket insurance complies with all of the other requirements of this Lease with respect to the type of insurance covered by blanket policies. If Tenant elects to insure the Demised Premises under any blanket insurance policy, Tenant shall furnish to Landlord a certificate of insurance showing the Demised Premises as a location insured under any such blanket insurance policy to the extent of the limits required in Exhibit G. Tenant shall furnish to Landlord and any Fee Mortgagee as to which Tenant has received a notice containing such mortgagee’s name and address a duplicate original copy or certificate of the policies of insurance required to be carried by Tenant.

 

E.              Notwithstanding anything to the contrary contained herein, Tenant may carry any required insurance on trade fixtures and equipment described in Section 17 under a program of self-insurance or to carry insurance with deductibles in excess of part or all of the amounts of insurance required under Exhibit G hereunder.

 

F. If Tenant fails to perform any covenant in this Section and such failure continues for more than three (3) days after written notice, then, without limiting any of Landlord’s other rights and notwithstanding any other provision of this Lease concerning notice and cure of defaults, Landlord may but need not obtain such insurance, and Tenant shall pay the cost thereof upon demand as Additional Rent.

 

12.          REQUIREMENTS OF LAW AND FIRE INSURANCE. Tenant shall comply with and shall from time to time conform the Demised Premises to every applicable requirement of law, duly constituted authority, Board of Fire Underwriters having jurisdiction or of the carriers of all insurance on the Demised Premises (all of the foregoing being hereinafter called “Legal Requirements”). Tenant shall have the right upon giving notice to Landlord to contest any obligations imposed upon Tenant pursuant to the provisions of this Section and to defer compliance during the pendency of such contest, if the failure of Tenant to so comply will not subject Landlord to civil or criminal penalty or liability. Landlord shall cooperate with Tenant in such contest (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and shall execute any documents reasonably required in furtherance of such purpose. Tenant shall not apply for any change in zoning applicable to the Land or the Demised Premises without Landlord’s prior written consent, not to be unreasonably withheld, conditioned or delayed.

 

13.          ALTERATIONS. Tenant may at its own expense from time to time, during the term hereof, make such alterations, additions, improvements and changes, structural or otherwise (hereinafter called “Alterations”), in and to the Demised Premises which it may deem necessary or desirable, provided such Alterations shall not reduce the value of the Demised Premises. Tenant, in making any Alterations, shall use materials of equal or better quality than those used in the construction of the Demised Premises and comply with all Legal Requirements. Tenant shall obtain or cause to be obtained all building permits, licenses, temporary and permanent certificates of occupancy and other governmental approvals that may be required in connection with the making of Alterations. Landlord shall cooperate with Tenant in the obtaining thereof (so long as Landlord’s cooperation does not involve (a) incurring obligations or liability or material expense to Landlord unreimbursed by Tenant or (b) breach of any covenants binding on

 

133

 

Landlord or the Demised Premises, including, without limitation, any mortgage) and shall execute any documents required in furtherance of such purpose. Tenant may, but shall not be obligated to, remove any Alteration so long as such removal does not materially and adversely affect any heating, ventilating, mechanical, electrical, structural, roof or life safety elements of the Building and Tenant shall repair all damage that results from such removal and restore the Demised Premises to a functional condition (including the filling of all floor and wall holes, the removal of all disconnected wiring back to junction boxes and the replacement of all damaged ceiling tiles). Upon completion of any Alteration that is not Cosmetic Work, Tenant shall promptly deliver to Landlord plans showing such Alteration as built. “Cosmetic Work” shall mean painting, carpeting and wall coverings and the like and the addition or deletion of interior non structural partitions, provided such work does not materially and adversely affect any roof, structural, mechanical, electrical, utility, fire protection or life safety systems or other systems or equipment of the Building.

 

14.            ACCESS TO DEMISED PREMISES. Tenant shall permit Landlord to enter upon the Demised Premises at all reasonable times approved by Tenant to examine the Demised Premises, and during the six (6) month period preceding the Expiration Date, to exhibit the Demised Premises to prospective tenants, provided that Landlord shall not unreasonably interfere with the conduct of business therein.

 

15.            UTILITIES.

 

A.             Tenant shall arrange and pay for any and all utility services to the Demised Premises, including, without limitation, telecommunications, water, gas, electricity and fuel used by it in the Demised Premises. Tenant shall pay all sewer charges assessed by the municipal authority having jurisdiction. The failure or interruption of any utility services shall be at Tenant’s sole risk and Landlord shall not suffer any reduction in any rent on account thereof.

 

B.              Tenant shall have the sole right to apply for, claim and receive any rebate, reimbursement, credit, or payment from any utility company providing service to the Building resulting from Tenant’s installation of energy saving equipment in or on the Building.

 

16.            SUBORDINATION, NON DISTURBANCE AND ATTORNMENT. This Lease shall become subject and subordinate to the lien of any Fee Mortgagee of the entire fee interest of the Demised Premises, and any renewals, modifications or extensions thereof, provided that a Subordination, Non Disturbance and Attornment Agreement (“SNDA”) substantially in the form annexed hereto as Exhibit D (or a reasonably equivalent form that is reasonably acceptable to Tenant and the applicable Fee Mortgagee) is executed, acknowledged and delivered by such Fee Mortgagee to Tenant. If the Fee Mortgagee requires that this Lease have priority over such mortgage, Tenant shall, upon request of the Fee Mortgagee, execute, acknowledge and deliver to the Fee Mortgagee an agreement acknowledging such priority.

 

17.            TRADE FIXTURES.

 

A.             All trade fixtures and equipment whether owned by Tenant or leased by Tenant from a Lessor/Owner (hereinafter called the “Equipment Lessor”) installed in the Demised Premises, regardless of the manner or mode of attachment, shall be and remain the

 

134

 

property of Tenant or any such Equipment Lessor and may be removed by Tenant or any such Equipment Lessor at any time. In no event (including a default under this Lease) shall Landlord have any liens, rights or claims in Tenant’s or Equipment Lessor’s trade fixtures and equipment and Landlord agrees to execute and deliver to Tenant and Equipment Lessor, within ten (10) days after request therefor, any document reasonably required by Tenant or Equipment Lessor in order to evidence the foregoing, so long as the same is reasonably acceptable to Landlord and any Fee Mortgagee. Tenant shall promptly repair all damage to the Building caused by the removal of any such trade fixtures or equipment. Notwithstanding anything to the contrary in this Lease, the following shall not constitute trade fixtures or equipment for purposes of this Lease and neither Tenant nor any Equipment Lessor shall own or have any right to remove the same (and, without limiting the generality of the foregoing, the following shall not be subject to the provisions of this Paragraph A or Paragraph B of this Section 17): (i) the HVAC system, plumbing, alarm, electric, life safety and other building systems used to operate the Building or maintain the certificate of occupancy, and (ii) any “fixtures” as such term is defined in the applicable Uniform Commercial Code.

 

B.              In the event Tenant shall enter into any arrangement to finance all or any portion of its trade fixtures or equipment either before or after the installation thereof in the Demised Premises and whether such financing shall be in the form of a mortgage, financing agreement, equipment lease, equipment sale leaseback or otherwise and in the event the lessor or secured party thereunder shall provide written notice to Landlord that it requires a copy of any default sent by Landlord to Tenant under this Lease also to be sent to such person (hereinafter called the “Owner/Secured Party”), then Landlord upon receipt of such requirement shall simultaneously send a copy of any default notice to such Owner/Secured Party at the address furnished to Landlord; provided that Landlord’s failure to deliver any such copy to the Owner/Secured Party shall not affect Landlord’s exercise of any right or remedy under this Lease in any way whatsoever. The copy of any such default notice shall be sent to such Owner/Secured Party in the same manner as notices are required to be sent and in the same manner as such notice is being sent to Tenant hereunder. Landlord further agrees that any such Owner/Secured Party shall have the right, but not the obligation, to remedy or cure any default of Tenant under this Lease within the same period of time granted to Tenant to remedy or cure any such default under this Lease.

 

C.              All trade fixtures and other personal property (which term shall include without limitation food and inventory) of any person that is located on the Demised Premises shall be at the sole risk of Tenant. Landlord shall not be liable for any loss or damage to person or property resulting from any accident, theft, vandalism or other occurrence on the Demised Premises, including damage resulting from water, wind, ice, steam, explosion, fire, smoke, chemicals, the rising of water or leaking or bursting of pipes or sprinklers, defect, failure or any other cause.

 

18. ASSIGNMENT.

 

A. Subject to paragraph (B) of this Section, Tenant may sublet all or any part of the Demised Premises, or license the use of any portion thereof or assign this Lease, but Tenant and Guarantor shall nevertheless continue to remain liable hereunder. Any assignee of

 

135

 

the Lease and any sublessee or licensee of all or substantially all of the Demised Premises shall become jointly and severally liable to Landlord, and any such transferee shall upon Landlord’s request execute and deliver an instrument in confirmation thereof. In the case of any assignment of this Lease or any sublease or licensee of all or substantially all of the Demised Premises, Tenant shall promptly deliver to Landlord a true and complete copy of the transfer instruments. No transfer of all or any portion of the Demised Premises or Landlord’s consent thereto shall be deemed a waiver of the provisions of this Section, or a release of Tenant or any Guarantor.

 

B.              So long as the Minimum Credit Test is not met (however the following provisions of this paragraph B shall not apply at any time when the Minimum Credit Test is met), Tenant shall not assign this Lease or sublet or license all or substantially all of the Demised Premises to any transferee unless (x) such transferee (1) operates at least five (5) other grocery stores and (2) has Tangible Net Worth” (as defined in Section 25 below) of at least One Hundred Million Dollars ($100,000,000) or (y) if such transferee does not meet the requirements of (1) and (2) then such transferee must be approved by Landlord, such approval not to be unreasonably withheld, conditioned or delayed. If Tenant desires to so transfer this Lease to a person who does not meet the requirements of (1) and (2) in the preceding sentence, then Tenant shall give notice of such intended transfer to Landlord together with reasonable information on its grocery store business and its audited financial statements for the three most recent years showing the credit of the proposed transferee and the proposed terms of the transfer. Upon receiving such information Landlord shall have thirty (30) days to elect by written notice to Tenant to do one of the following (and any failure of Landlord to affirmatively elect one or the other shall be deemed to be an election by Landlord to consent to such transfer: (a) approve such transfer, (b) disapprove such transfer, or (c) terminate the Term of this Lease on any date which is no sooner than one-hundred twenty (120) days after such election notice and no later than one-hundred eighty (180) days after such election. If Landlord elects to terminate this Lease and thereafter within one-hundred twenty (120) days enters into a lease or other agreement with Tenant’s proposed transferee, any transfer payment that was to have been made to Tenant by such transferee as specifically disclosed in writing as such to Landlord in the proposed terms of the transfer furnished to Landlord as provided above shall be paid by Landlord to Tenant out of the first rent amounts received by Landlord from such transferee until the transfer payment is paid to Tenant in full. For purposes of the previous sentence, a “transfer payment” shall include proposed sublease income in excess of the rent under this Lease, and in such cases Landlord’s payment to Tenant shall be a liquidated amount equal to such excess rent at a discount rate of ten percent (10%).

 

C.              If Tenant assigns this Lease, Landlord, when giving notice to said assignee with respect to any default, shall also give a copy of such notice upon Tenant originally named herein or its successor of whom Landlord shall have been given written notice (being herein called “Original Tenant”), and no notice of default shall be effective as against a Tenant until a copy thereof is given to the Original Tenant. The Original Tenant shall have the same period after the giving of such notice to cure such default as is given to Tenant under this Lease. If this Lease terminates or this Lease and the Term hereof cease and expire because of a default of such assignee, Landlord shall promptly give the Original Tenant notice thereof. The Original Tenant shall have the option, to be exercised by notifying Landlord in writing within thirty (30) days after receipt by the Original Tenant of Landlord’s notice, to cure any default and become Tenant under a new lease for the remainder of the term of this Lease (including any Renewal Periods if applicable) upon all of the same terms and conditions of this Lease as it may have been amended

 

136

 

by agreement between Landlord and Original Tenant, provided, however, that at the time of making any such election Original Tenant cures all defaults under the Lease. In the event Original Tenant assigns this Lease and it shall thereafter be rejected in a bankruptcy or similar proceeding brought by or against such assignee, a new lease identical to this Lease shall be entered into between Landlord and Original Tenant, provided that Original Tenant cures any monetary defaults and any other defaults that are capable of being cured. Any new lease created under this Section shall commence on the date of termination or rejection of this Lease, as applicable. Notwithstanding the foregoing, if Landlord, in its sole discretion delivers to the Original Tenant and Guarantor a release as to all liability under this Lease as theretofore amended, the Original Tenant shall not have the foregoing option.

 

D. In the case of a sublease of all or substantially all of the Demised Premises for the remainder of the Term and so long as the Minimum Credit Test or the requirements of Section 1 8B are met, Landlord shall, within thirty (30) days following Tenant’s request, deliver to Tenant a recognition and attornment agreement following the form attached hereto as Exhibit  D and otherwise subject to Landlord’s reasonable approval, executed and acknowledged by Landlord, for the benefit of such subtenant; provided that such subtenant executes and delivers an instrument reasonably satisfactory to Landlord confirming that such subtenant is jointly and severally liable under this Lease. Further, Landlord shall, within ten (10) days after Tenant’s request, shall request its Fee Mortgagee to deliver to Tenant an SNDA for the benefit of any such subtenant (and Landlord shall reasonably cooperate with Tenant, at no out of pocket cost to Landlord, in connection with obtaining any requisite consent from any Fee Mortgagee). In the event that the existing gas station tenant on the Demised Premises request a recognition and attornment agreement Landlord will promptly provide same.

 

19. TITLE AND AUTHORITY.

 

A.             Landlord warrants and represents that Landlord is the owner of the fee simple of the Demised Premises and that other than any mortgages held by Fee Mortgagees that have provided an SNDA to Tenant in accordance with this Lease or such other liens or encumbrances that do not interfere with Tenant’s use of the Demised Premises or liens or encumbrances arising on account of any act or omission by Tenant or persons acting under Tenant or on account of Tenant’s failure to perform its obligations under this Lease, or matters set forth in Exhibit B 1, Landlord shall not voluntarily impose any other lien or encumbrance on the Demised Premises.

 

B.              Landlord and Tenant each warrant and represent to the other that (a) each is duly organized, validly existing and in good standing under the laws of the jurisdiction in which such entity was organized; (b) each has the authority to own its property and to carry on its business as contemplated under this Lease; (c) each has duly executed and delivered this Lease; (d) the execution, delivery and performance by each of this Lease (i) are within its powers, (ii) have been duly authorized by all requisite action, (iii) will not violate any provision of law or any order of any court or agency of government, or any agreement or other instrument to which it is a party or by which it or any of its property is bound, (iv) will not render it insolvent or (v) will not result in the imposition of any lien or charge on any of its property,

 

137

 

except by the provisions of this Lease; and (e) the Lease is a valid and binding obligation of each in accordance with its terms.

 

C. Landlord and Tenant have executed the Memorandum of Lease (hereinafter called the “Memorandum”) attached hereto as Exhibit E simultaneously with the execution of this Lease. Upon the expiration of the Term each agree to execute and deliver a recordable termination of the Memorandum, which covenant shall survive termination. Tenant irrevocably appoints Landlord its attorney in fact so to execute such termination of the Memorandum if Tenant fails to do so within ten (10) days of written request, which power is coupled with an interest and shall automatically be transferred to any successor or assign of Landlord’s interest in the Demised Premises.

 

20.            QUIET ENJOYMENT. Landlord covenants and agrees that provided no default remains uncured beyond any applicable notice and cure period, Tenant shall peaceably and quietly have, hold and enjoy the Demised Premises and all rights, easements, appurtenances and privileges belonging or in anyway appertaining thereto during the full term of this Lease and any extension thereof subject always to the terms of this Lease, provisions of law, and matters of record to which this Lease is or may become subordinate. This covenant is in lieu of any other so called quiet enjoyment covenant, whether express or implied.

 

21.            UNAVOIDABLE DELAYS. If either party shall be prevented or delayed from punctually performing any obligation or satisfying any condition under this Lease by any strike, lockout, labor dispute, inability to obtain labor or material, Act of God, governmental restriction, regulation or control, enemy or hostile governmental action, civil commotion, insurrection, sabotage, fire or other casualty or by any other event similar to the foregoing and beyond the control of such party, then the time to perform such obligation or to satisfy such condition shall be postponed by the period of time consumed by the delay. Time is of the essence for the performance of all monetary obligations under this Lease and the foregoing shall never apply to the performance of monetary obligations.

 

22. END OF TERM. Upon expiration or other termination of the term of this Lease, Tenant shall peaceably and quietly quit and surrender the Demised Premises and all Alterations in the good order and condition Tenant is required to maintain the same and remove all trade fixtures, equipment and other personal property whether or not bolted or otherwise attached and all of Tenant’s signs wherever located; and in all cases shall repair damage that results from such removal. Any fixtures and equipment that Tenant or Owner/Secured Party does not remove following the expiration or other termination of the Term of this Lease shall be deemed to be abandoned by Tenant, shall at once become the property of Landlord, and may be disposed of in such manner as Landlord shall see fit; and Tenant shall pay the cost of removal and disposal to Landlord within thirty (30) days after demand; provided, however, that if this Lease shall be terminated as the result of a default by Tenant, then trade fixtures and equipment shall not be deemed abandoned until sixty (60) days after notice of such termination is given to Owner/Secured Party. Tenant or Owner/Secured Party shall have the right at any time prior to the date such fixtures and equipment shall be deemed abandoned to remove the same from the Demised Premises. Should Tenant or anyone claiming by, through or under Tenant hold over in possession after the Expiration Date or earlier termination of this Lease, such holding over shall not be deemed to extend the Term or to renew this Lease, but without limiting Landlord’s other rights and remedies on account of such breach the tenancy thereafter shall continue as a tenancy

 

138

 

at sufferance from month-to-month upon the terms and conditions herein contained, provided, however that rent shall be charged and paid at one hundred fifty percent (150%) of the Fixed Annual Rent and Additional Rent in effect during the twelve (12) month period immediately preceding the Expiration Date or earlier termination.

 

23.         LANDLORD’S DEFAULT.

 

A.             Landlord shall be in default hereunder if its fails to comply with any of its express obligations set forth in this Lease within thirty (30) days following written notice and opportunity to cure; provided, however, Landlord will not be in default if said default could not reasonably be cured within such period of thirty (30) days, and Landlord promptly commences and thereafter proceeds with due diligence and in good faith to cure such default.

 

B.              In the event that a Fee Mortgagee shall have given written notice to Tenant that it is the holder of a mortgage covering the Demised Premises, and provided such notice includes the address to which notices to the Fee Mortgagee are to be sent, Tenant agrees that in the event it shall give written notice to Landlord to cure a default of Landlord as provided for in this Section, Tenant shall give a copy of said notice to the Fee Mortgagee. Tenant agrees that the Fee Mortgagee may cure or remedy such default within the time permitted to Landlord pursuant to this Section; provided that in addition the Fee Mortgagee shall be entitled to such further time as may be reasonably necessary for the Fee Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Fee Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion.

 

24. ADDITIONAL CHARGES. If Tenant shall be in default hereunder, Landlord, after thirty (30) days notice that Landlord intends to cure such default (but only ten (10) days notice if such default concerns any breach of Tenant’s insurance obligations under Section 11), shall have the right, but not the obligation, to cure such default and Tenant shall pay to Landlord, upon demand, as Additional Rent, the reasonable cost thereof. Other than such insurance defaults, Landlord shall not commence to cure any default of such a nature that it could not reasonably be cured within such period of thirty (30) days, if Tenant commences to cure same within said period, and thereafter proceeds with reasonable diligence and in good faith to cure such default.

 

25.         TENANT’S DEFAULT.

 

A. If Tenant fails to pay Fixed Annual Rent or Additional Rent when due and such default continues for ten (10) days after written notice; or if a default occurs on account of any asset sale, merger or consolidation on the part of Guarantor in violation of paragraph D of this Section; or if a petition is filed by Tenant (or Guarantor) for insolvency or for appointment of a receiver, trustee or assignee or for adjudication, reorganization or arrangement under any bankruptcy act or other applicable law or if any similar petition is filed against Tenant (or Guarantor) and such petition is not dismissed within sixty (60) days thereafter; or if Tenant fails to perform any other covenant or condition under this Lease, Landlord may give Tenant a written

 

139

 

notice specifying the nature of the default of such other covenant or condition and if Tenant does not, within thirty (30) days after receipt of such written notice (but only three (3) days in the case of failure to perform Tenant’s insurance obligations under Section 11), cure such other default or, if such default is of such a nature that it could not reasonably be cured within such period of thirty (30) days, and Tenant does not commence and proceed with reasonable diligence and in good faith to cure such default then, after the expiration of such thirty (30) day period (or longer period if such default cannot reasonably be cured within said thirty (30) day period), Landlord shall have the right, in addition to the rights set forth in the preceding sentence, to seek damages or an injunction as to such failure to perform, or after the expiration of such thirty (30) day period Landlord may, but only during the continuance of such default, send a notice to Tenant terminating this Lease and reenter the Demised Premises and dispossess Tenant and any other occupants thereof, remove their effects not previously removed by them, and hold the Demised Premises as if this Lease had not been made; and Tenant waives the service of any additional notice of intention to reenter or to institute legal proceedings to that end. If any payment of Fixed Annual Rent, Additional Rent, or other sum owing Landlord is not paid within five (5) days after the same is due, then in addition to all other remedies hereunder Tenant shall pay an administrative late charge to Landlord equal to five percent (5%) of the overdue amount in question, which late charge will be due upon demand as Additional Rent.

 

B. After a termination, dispossess or removal in accordance with this Section, (1) the Fixed Annual Rent and Additional Rent shall be paid up to the date of such dispossess or removal, (2) Landlord may re-let the Demised Premises or any part or parts thereof either in the name of Landlord or otherwise, for a term or terms which may, at the option of Landlord, be less than or exceed the period which would otherwise have constituted the balance of the term of this Lease, and (3) Tenant shall pay to Landlord, as liquidated damages, any deficiency between the Fixed Annual Rent and Additional Rent due hereunder and the amount, if any, of the rents actually collected by Landlord on account of the new lease or leases of the Demised Premises for each month of the period which would otherwise have constituted the balance of the term of this Lease (not including any Renewal Periods, the commencement of which shall not have occurred prior to such dispossess or removal). In computing such liquidated damages there shall be added to said deficiency the expenses which Landlord incurs in connection with re-letting the Demised Premises, including reasonable attorneys’ and brokerage fees, tenant inducements such as free rent, moving expense reimbursements, tenant improvement allowances, brokerage commissions, fees for legal services, and other expenses of preparing the Demised Premises for reletting (“Reletting Expenses”). Such Reletting Expenses shall be paid to Landlord within ten (10) days of demand and all other liquidated damages shall be paid by Tenant in monthly installments on the dates specified in this Lease for payment of Fixed Annual Rent and any suit brought to collect the amount of the deficiency for any month shall not prejudice in any way the rights of Landlord to collect the deficiency for any subsequent month by a similar proceeding. Landlord shall not be liable for failure to re-let the Demised Premises or, in the event that the Demised Premises are re-let, for failure to collect the rent under such re-letting, unless Landlord shall not have used its commercially reasonable efforts to re-let the Demised Premises for the reasonable rental value thereof and to collect the rent under such re-letting. Landlord shall use its commercially reasonable efforts to mitigate damages.

 

C.              Landlord hereby expressly waives any and all rights granted by or under any present or future laws to reenter the Demised Premises, to dispossess Tenant or any other occupant thereof or to remove their effects not previously removed by them, or to terminate this

 

140

 

Lease for any reason or in any manner other than as set forth in this Section 25. Tenant hereby expressly waives any and all rights granted by or under any present or future laws to remain in possession, cure any defaults or redeem its leasehold for any reason or in any manner other than as set forth in this Section 25. The provisions of this Section 25 shall survive the early termination of the Term.

 

D. Any sum due from Tenant under this Lease is not paid within five (5) days after the same is due, such amount shall bear interest from the date due at the rate of one and one-half (11/2%) percent for each month (or ratable portion thereof) the same remains unpaid. Nothing in this Lease shall limit the right of Landlord to prove and obtain in proceedings for bankruptcy or insolvency an amount equal to the maximum allowed by any statute or rule of law in effect at the time; and Tenant agrees that the fair value for occupancy of all or any part of the Demised Premises at all times shall never be less than the Fixed Annual Rent and all Additional Rent payable from time to time.

 

E.              The Guaranty given by Guarantor of this Lease is a material inducement to Landlord’s entering into this Lease. If at any time the Guarantor of this Lease shall sell all or a material portion of its assets or shall merge or consolidate with another entity and, in either case, if (1) Guarantor (including the resulting entity of any merger or consolidation) has a tangible net worth immediately after the transaction that is less than Guarantor’s tangible net worth immediately prior to the transaction, and (2) Guarantor’s tangible net worth immediately after the transaction is less than the Minimum Credit Test, then the transaction shall be a default under this Lease for which there is no cure period entitling Landlord to exercise all of the rights and remedies under this Section. If at any time the existing Guarantor desires to assign the Guaranty to another person and for such person to assume all of the obligations and liabilities under the Guaranty, and if the proposed successor Guarantor’s tangible net worth is greater than the Minimum Credit Test, Tenant may present evidence of such proposed successor Guarantor’s tangible net worth to Landlord in the form of financial statements for (A) the most recent fiscal year of the proposed successor Guarantor audited by a nationally recognized firm of certified public accountants and (B) the most recent fiscal quarters since such fiscal year certified to by Guarantor’s chief financial officer, together with a form of Guaranty identical in form to the form of Guaranty attached to this Lease as Exhibit F to be executed and delivered by the proposed successor Guarantor. Upon Landlord’s written approval of such financial statements as demonstrating a tangible net worth of the proposed successor Guarantor greater than the Minimum Credit Test (which approval will not be unreasonably withheld, conditioned or delayed) and upon the execution and delivery to Landlord of such form of Guaranty by the proposed successor Guarantor, the existing Tenant (if, but only if the Lease is being assigned to a successor Tenant) and Guarantor shall be released from all liability under the Lease and Guaranty and the successor Tenant and Guarantor shall become fully liable to Landlord under the Lease and Guaranty. Thereafter and as an obligation of the then successor Tenant under this Lease, such successor Guarantor shall annually and quarterly continue to provide such financial statements to Landlord demonstrating that it continues to meet the Minimum Credit Test for those provisions of this Lease requiring such as a condition of being relieved from certain Lease obligations otherwise applicable. As used in this Lease “Guarantor” means the Guarantor then fully liable under its Guaranty to Landlord. “Tangible net worth” means the net worth as shown on such financial statements prepared in accordance with generally accepted accounting

 

141

 

principles consistently applied and disregarding any value attributable to good will or other intangible assets and amounts owed by shareholders, officers or Affiliates except to the extent such amounts owed by Affiliates would ordinarily and customarily be consolidated on Tenant’s financial statements. “Minimum Credit Test” means a tangible net worth as shown on such fiscal year and fiscal quarter financial statements of at least Five Hundred Million Dollars ($500,000,000).

 

26. DESTRUCTION.

 

A.            In the event of any damage or destruction by fire, the elements, or casualty (hereinafter called “Destruction”) to all or any part of the Building or any other Improvements in the Demised Premises, Tenant shall commence promptly, and with due diligence continue to restore same to substantially the same condition as existed immediately preceding the Destruction, except as otherwise provided in paragraph B of this Section. If the Destruction is partial, Tenant shall complete the restoration within two hundred seventy (270) days after the Destructions, subject to Unavoidable Delays. If the Destruction is total, Tenant shall complete the restoration within eighteen (18) months following the Destruction, subject to Unavoidable Delays. In no event shall Fixed Annual Rent or any Additional Rent abate on account of any Destruction.

 

B.            If, as a result of any Destruction, fifty percent (50%) or more of the total floor area of the Building is damaged, destroyed or, in Tenant’s reasonable opinion rendered untenantable, during the last two (2) years of the Initial Term or during any Renewal Term (but this shall not apply at any other time), Tenant may elect to terminate this Lease by giving notice to Landlord of such election on or before the date that is ninety (90) days after the Destruction, stating the date of termination, which shall be not more than thirty (30) days after the date on which such notice of termination shall have been given, and (1) upon the date specified in such notice this Lease and the term hereof shall cease and expire and (2) any Fixed Annual Rent and Additional Rent shall be paid until such date of termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant. In the event that Tenant elects to terminate this Lease as a result of the Destruction referenced above, Tenant shall cause all insurance proceeds to be paid to Landlord including business interruption insurance proceeds.

 

C. Except in the case of paragraph B of this Section, Insurance proceeds shall be deposited with a bank or trust company acceptable to Landlord and Tenant and under the control of Landlord and Tenant, as trustees, or, if the Fee Mortgagee shall be a bank, trust company, insurance company or other entity engaged in mortgage lending then such proceeds shall be deposited with such Fee Mortgagee and shall be held and disbursed by it, as trustee, for restoration in accordance with customary construction lending practice and procedures. Any excess insurance proceeds shall be paid to Tenant at the conclusion of the restoration so long as Tenant is not then in default beyond any applicable cure period.

 

27. EMINENT DOMAIN.

 

A.            In the event of an actual taking for any public or quasi-public use by any lawful power or authority by exercise of the right of condemnation or of eminent domain or by agreement between Landlord and those having the authority to exercise such right (hereinafter

 

142

 

called “Taking”) of the entire Building, then (1) this Lease and the Term shall cease and expire as of the date of vesting of title or transfer of possession, whichever occurs earlier, as a result of the Taking, and (2) any Fixed Annual Rent and Additional Rent shall be paid until such termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant.

 

B.              (1) In the event of a Taking of twenty (20%) or more of the Demised Premises, or in the event of a Taking resulting in a reduction of twenty (20%) percent or more of the parking spaces (unless Landlord provides adequate and sufficient additional contiguous parking areas in substitution therefor reasonably acceptable to Tenant), or in the event of a Taking resulting in a divided Building or parking area such that passage between the divided portions of the parking area is not possible, or in the event of permanent denial of reasonably adequate access to the Demised Premises or Building on account of a Taking which in Tenant’s reasonable judgment makes it economically unfeasible to operate Tenant’s business at the Demised Premises, then Tenant may elect to terminate this Lease by giving notice of termination to Landlord on or before the date which is ninety (90) days after receipt by Tenant of notice that the Taking in question. Said notice of termination shall state the date of termination, which date of termination shall be not more than thirty (30) days after the date on which such notice of termination is given to Landlord, and (a) upon the date specified in such notice of termination this Lease and the term hereof shall cease and expire, and (b) any Fixed Annual Rent and Additional Rent shall be paid until the date of termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant.

 

(2) If Tenant does not elect to terminate this Lease as aforesaid, then the award or payment for the Taking shall be used by Tenant for restoration as hereinafter set forth and Tenant shall promptly commence and with due diligence continue to restore the portion of the Demised Premises remaining after the Taking to substantially the same condition and tenantability as existed immediately preceding the Taking. Tenant shall complete the restoration within two hundred seventy (270) days after the Destruction, subject to Unavoidable Delays. Taking proceeds shall be paid, held and disbursed in the same manner as insurance proceeds under Section 26C and there shall be no abatement or reduction in Fixed Annual Rent or any Additional Rent. Any taking proceeds remaining after the restoration is complete shall be divided equally between Landlord and Tenant.

 

C.              If this Lease is terminated under any provision of this Section 27, so long as Tenant is not then in breach of this Lease beyond any applicable cure period, any specific damages that are expressly awarded to Tenant on account of its relocation expenses and specifically so designated shall belong to Tenant. Except as provided in the preceding sentence of this paragraph, Landlord reserves to itself, and Tenant releases and assigns to Landlord, all rights to damages accruing on account of any Taking or by reason of any act of any public authority for which damages are payable. Tenant agrees to execute such further instruments of assignment as may be reasonably requested by Landlord, and to turn over to Landlord any damages that may be recovered in any proceeding or otherwise; and Tenant irrevocably appoints Landlord as its attorney-in-fact with full power of substitution so to execute and deliver in Tenant’s name, place and stead all such further instruments if Tenant shall fail to do so after 10 days notice.

 

143

 

28.            THIRD PARTY LITIGATION. If Landlord, Landlord’s adviser or its mortgagees are made parties to any litigation commenced by or against Tenant by or against any person claiming through Tenant with respect to the Demised Premises, Tenant agrees to indemnify Landlord in the manner provided in Section 38 and in addition pay, as Additional Rent, all costs of Landlord in connection with such litigation including reasonable counsel fees and litigation costs, except in the sole instance where Landlord or Tenant have legal claims in the litigation against one another or where Landlord has been adjudicated in any litigation to have acted with gross negligence or willful misconduct. Without limitation, the foregoing includes foreclosure or enforcement of any lien, attachment or mortgage on the Demised Premises resulting from the act or omission of Tenant, but shall not include any Fee Mortgage or other lien created by Landlord.

 

29.            WAIVER OF DISTRAINT. Landlord hereby expressly waives any and all rights granted by or under any present or future laws to levy or distrain for rent, in arrears, in advance or both, upon all goods, merchandise, equipment, trade fixtures, furniture and personal property of Tenant or any nominee of Tenant in the Demised Premises, delivered or to be delivered thereto.

 

30. ESTOPPEL CERTIFICATES. Upon the request of either party, at any time and from time to time, Landlord and Tenant agree to execute and deliver to the other, within thirty (30) days after such request, a written instrument that may be relied upon by the requesting party, its potential purchasers, lenders, investors, subtenants and/or assignees (and any of their respective successors and assigns), duly executed, (a) certifying if such is the case that this Lease has not been modified and is in full force and effect or, if there has been a modification of this Lease, that this Lease is in full force and effect as modified, stating such modifications, (b) specifying the dates to which the Fixed Annual Rent and Additional Rent have been paid, (c) stating whether or not, to the knowledge of the party executing such instrument, the other party hereto is in default and, if such party is in default, stating the nature of such default, (d) stating the Commencement Date and Expiration Date, (e) stating which options to renew the term have been exercised, if any; and (f) any other information that may reasonably requested by the requesting party and customarily addressed in an estoppel certificate.

 

31. NOTICES. Any notices, consents, approvals, submissions or demands (“Notices”) given under this Lease or pursuant to any law or governmental regulation, including, without limitation, those by Landlord to Tenant or by Tenant to Landlord shall be in writing. Unless otherwise required by law, governmental regulation or this Lease, any such Notice shall be deemed given if sent by registered or certified mail, return receipt requested, postage prepaid or by nationally recognized overnight delivery service (a) to Landlord, at the address of Landlord as hereinabove set forth and with like copy given to Daniel A. Taylor, Esq. or Primo Fontana, Esq., DLA Piper, 33 Arch Street 26th Floor, Boston MA 02110 and/or such other persons and addresses as Landlord may designate by notice to Tenant; or (b) to Tenant, then one copy shall be delivered to the attention of the General Counsel, another shall be delivered to the attention of the Senior Vice President of Real Estate, and another shall be delivered to the attention of the Senior Director of Properties and Administration, all at 2 Paragon Drive, Montvale, New Jersey 07645 or to such other addresses as Tenant may designate by notice to Landlord. Any such Notice shall be deemed given three (3) business days after being sent by registered or certified

 

144

 

mail, return receipt requested, postage prepaid, and one business (1) day when sent by overnight delivery. A party’s attorney may give Notices on behalf of such party.

 

32.          BROKER. Each party represents and warrants to each other there is no broker, agent, finder or other person with whom it has dealt in connection with the negotiation, execution and delivery of this Lease other than those persons named in that certain Agreement of Sale and Leaseback dated as of November 2, 2010 entered into between Tenant and Landlord (or Affiliates of each) regarding a transaction that led to this Lease.

 

33.          LIENS. Tenant shall keep the Demised Premises (and Landlord’s interest therein) and Tenant’s leasehold (and Tenant’s interest therein) free of, and shall within thirty (30) days discharge, any attachment, lien, security interest or other encumbrance that arises as a result of any act or omission of Tenant or persons acting by, through or under Tenant. Without limitation, Tenant will not permit or suffer any mechanic’s or materialmen’s or other liens to stand against the Demised Premises for any labor or material furnished in connection with work of any character performed, any services provided or any other act, omission or obligation on the part or at the direction of Tenant or persons claiming by, through or under Tenant, and Landlord will not permit any such liens for work or material furnished the Landlord to stand against said premises (the foregoing shall not imply that Landlord has any responsibility to furnish any work or material). However, Landlord and Tenant shall respectively have the right to contest the validity or amount of any such lien, provided that the payment of such amount is bonded during the pendency of such contest, but upon the final determination of such contest the party responsible for such lien shall immediately pay any judgment rendered with all proper costs and charges (including reasonable attorneys’ fees) and shall have the lien released at its own expense. In lieu of bonding either party may obtain other security acceptable to the other party in such party’s sole discretion. Any contest hereunder shall be subject to all requirements set forth in any Fee Mortgage.

 

34.          DEFINITION OF LANDLORD. The term “Landlord” as used herein, means Landlord named herein and any subsequent owner of Landlord’s estate hereunder. Any owner of Landlord’s estate hereunder shall be relieved of all liability under this Lease after the date that it ceases to be the owner of Landlord’s estate (except for any liability arising prior to such date) and the party succeeding to Landlord’s estate shall assume all liability of Landlord arising from and after it becomes owner of Landlord’s estate. The foregoing shall be self-operative but Landlord and Tenant shall upon the request of either execute and deliver an instrument acknowledging the foregoing.

 

35.          ADJOINING OR ADJACENT PROPERTY. Landlord and Tenant shall each promptly forward to the other any notice or other written communication received by it from any owner of property adjoining or adjacent to the Demised Premises or from any municipal or other governmental authority in connection with any hearing or other administrative proceeding relating to the use of the Demised Premises or any adjoining or adjacent property. Tenant may, at its sole cost and expense, in its own name and/or in the name of Landlord, appear in any such proceeding. Landlord shall fully cooperate with Tenant (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and shall, without limitation, make such appearances and furnish such information as

 

145

 

may be reasonably required by Tenant. Landlord agrees to execute any instruments reasonably requested by Tenant in connection with any such proceeding.

 

36. ENVIRONMENTAL LAWS.

 

A. “Environmental Laws” shall mean all federal, state or local laws, ordinances, rules, regulations, or policies, whether now or hereafter enacted, governing the use, clean-up, remediation storage, treatment, transportation, manufacture, refinement, handling, release, production or disposal of Hazardous Materials including, without limitation: (1) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, (42 U.S.C. Sections 9601, et. seq.) as amended by the Superfund Amendments and Reauthorization Act; (2) the Hazardous and Solid Waste Act amendments of 1984 Pub L 98-616 (42 U.S.C. Section 699); (3) the Hazardous Materials Transportation Act, (49 U.S.C. Section 1801, et. seq.); (4) the Resource Conservation and Recovery Act of 1976, (42 U.S.C. Sections 6901, et. seq.); or (5) the Toxic Substances Control Act, and any amendments thereto and any regulations adopted and publications promulgated pursuant thereto, or any other federal, state or local environmental laws, ordinances, rules, or regulations whether now or hereafter enacted. “Hazardous Materials” shall mean any hazardous wastes or hazardous substances as defined in any Environmental Law including, without limitation, any asbestos, PCB, toxic, noxious or radioactive substances, methane, volatile hydrocarbons, petroleum, petroleum by-products, industrial solvents or any other material or substance which could cause or constitute a health, safety or other environmental hazard to any person or property.

 

B. Tenant, at its sole cost and expense, shall until the Expiration Date of this Lease comply with all Environmental Laws and shall be responsible for all Hazardous Materials on or migrating from the Land and Demised Premises prior to, on and after the Commencement Date, it being acknowledged that Tenant or its Affiliate owned the Land and Demised Premises prior to the Commencement Date. Tenant shall provide Landlord with copies of any notices pertaining to any governmental proceedings or actions under any Environmental Law (including requests or demands for entry onto the Demised Premises and/or Land for purposes of inspection regarding the handling, disposal, clean-up or remediation of Hazardous Materials or claims, penalties, fines or assessments) within fifteen (15) days after receipt thereof. Landlord shall cooperate with Tenant (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and provide such documents, affidavits and information as may be reasonably necessary for Tenant to comply with all Environmental Laws.

 

C. If required by governmental authority or if Landlord has a reasonable basis to believe a release of Hazardous Materials may have occurred or a threat of release exists on or from the Land or Demised Premises or Hazardous Materials activities have taken place on the Land or Demised Premises that do not conform to Environmental Laws, then Landlord may, but need not, perform appropriate testing in a commercially reasonable manner and the reasonable costs thereof shall be reimbursed to Landlord by Tenant upon demand as Additional Rent. Tenant shall execute affidavits, representations and the like from time to time at Landlord’s request concerning Tenant’s actual knowledge and belief regarding the presence or absence of Hazardous Materials at the Land and Demised Premises. In all events, and without limitation, Tenant shall indemnify all Indemnitees, expressly including without limitation all Fee Mortgagees, in the manner elsewhere provided in this Lease with respect to Hazardous Materials

 

146

 

on or migrating from the Land and Demised Premises prior to, on and after the Commencement Date (and for these purposes, the loss indemnified shall include without limitation any costs of investigation or remediation, and any claim of personal injury or property damage to any person); provided, however, that such indemnity shall not include and Tenant shall not be responsible for Hazardous Materials migrating on to the Land from the land of third parties. The covenants of this Section shall survive the Term. Tenant shall from time to time upon Landlord’s request confirm all of the foregoing covenants directly to mortgagees.

 

37. LEASEHOLD MORTGAGE.

 

A.             Tenant, and its successors and assigns (including, without limitation, any subtenant of Tenant), may, from time to time and without Landlord’s prior written consent, mortgage all or any portion of its right, title and interest in and to this Lease under one leasehold mortgage at any one time, or two leasehold mortgages given as part of a single financing transaction, to an Institutional Lender (each, a “Leasehold Mortgage”), and assign any or all rights under this Lease and any subleases as collateral security for such Leasehold Mortgage; provided that all rights acquired under such Leasehold Mortgage shall be subject to all of the terms, covenants and conditions of this Lease, and to all rights and interests of Landlord, none of which terms, covenants or conditions is or shall be waived by Landlord by reason of the right given to so mortgage such interest in this Lease. In no event shall Tenant have any right to mortgage or encumber Landlord’s fee interest in the Demised Premises. The term “Leasehold Mortgage” shall include whatever security instruments that may be used in the locale of the Demised Premises, such as, without limitation, deeds of trust, security deeds and conditional deeds, as well as financing statements, assignment of leases and rents, security agreements and other documentation required pursuant to the Uniform Commercial Code. The term “Leasehold Mortgage” shall also include any instruments required in connection with a sale-leaseback transaction. An “Institutional Lender” is a bank, trust company, savings and loan association, pension fund, endowment fund, insurance company, other institutional pool of recognized status or a governmental authority empowered to make loans or issue bonds or any other recognized institution regularly engaged in the making of mortgage loans that has not less than $100,000,000 in assets. The holder of any Leasehold Mortgage shall be called a “Leasehold Mortgagee.”

 

B.              If Tenant and/or Tenant’s successors and assigns (including, but not limited to, any sublessee of Tenant) shall grant a Leasehold Mortgage, and if Tenant shall send to Landlord a true copy thereof, together with a notice specifying the name and address of the Leasehold Mortgagee (“Mortgage Notice”), Landlord agrees that as long as any such Leasehold Mortgage shall remain unsatisfied of record or until a notice of satisfaction is given by the Leasehold Mortgagee to Landlord, the following provisions shall apply:

 

(1)           There shall be no cancellation, surrender or modification of this Lease by joint action of Landlord and Tenant without the prior consent of the Leasehold Mortgagee;

 

(2)           Landlord shall, upon serving Tenant with any notice of default, simultaneously serve a copy of such notice upon the Leasehold Mortgagee. The Leasehold

 

147

 

Mortgagee shall thereupon have the same period to remedy or cause to be remedied the defaults complained of, and Landlord shall accept such performance by or at the instigation of such Leasehold Mortgagee as if the same had been done by Tenant; provided that in the case of defaults that cannot be cured by the payment of money in addition the Leasehold Mortgagee shall be entitled to such further time to remedy or cause to be remedied the defaults complained of as may be reasonably necessary for the Leasehold Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Leasehold Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion.. Nothing herein shall be construed as requiring a Leasehold Mortgagee to cure any default. Landlord’s failure to deliver any such copy to a Leasehold Mortgagee shall not affect the Landlord’s exercise of any right or remedy under the Lease in any way whatsoever;

 

(3)             If any default shall occur which, pursuant to any provision of this Lease, entitles Landlord to terminate this Lease, and if before the expiration of twenty (20) days from the date of the giving of notice of termination upon such Leasehold Mortgagee, such Leasehold Mortgagee shall have notified Landlord of its desire to nullify such notice and shall have paid to Landlord all Fixed Annual Rent and Additional Rent herein provided for which are then in default, and shall have complied (or caused compliance) with all of the other requirements of this Lease, if any are then in default, then, in such event, Landlord shall not be entitled to terminate this Lease and any notice of termination previously given shall be void and of no effect;

 

(4)             Notwithstanding anything in this Lease to the contrary, any sale of Tenant’s leasehold interest in any proceeding for the foreclosure of the Leasehold Mortgage, or the assignment or transfer of Tenant’s leasehold interest in lieu of the foreclosure of any Leasehold Mortgage, shall be deemed to be a permitted sale, transfer or assignment;

 

(5)             If not required to be held by the Fee Mortgagee, the proceeds from any insurance policies or arising from a Taking may be held by any institutional Leasehold Mortgagee and distributed pursuant to the provisions of this Lease;

 

(6)             The Leasehold Mortgagee may be added to the “Loss Payable Endorsement” of any and all insurance policies required to be carried by Tenant hereunder on the condition that the insurance proceeds are to be applied in the manner specified in this Lease and that the Leasehold Mortgage shall so agree; except that the Leasehold Mortgage may provide a manner for disposition of such proceeds as remain after full compliance with the restoration covenants of this Lease, if any, otherwise payable to Tenant (but not such proceeds, if any, payable to Landlord, any Fee Mortgagee or jointly to Landlord or Tenant) pursuant to the terms of this Lease; and

 

(7) Landlord shall provide Leasehold Mortgage with prompt notice of any legal proceeding or arbitration between Landlord and Tenant. Unless the Leasehold Mortgage provided otherwise, Leasehold Mortgagee shall have the right to intervene in any such proceeding and be made a party to such proceeding, and the parties hereby consent to such

 

148

 

intervention.  Landlord’s failure to deliver any such notice to a Leasehold Mortgagee shall not affect the Landlord’s exercise of any right or remedy under the Lease in any way whatsoever.

 

Tenant, in any Mortgage Notice served upon Landlord under this Section, may exclude any or more of the above provisions, and if so excluded, such provisions shall not be effective.

 

C. Landlord shall, upon request, execute, acknowledge and deliver to each Leasehold Mortgagee, an agreement prepared at the sole cost and expense of Tenant, in form reasonably satisfactory to such Leasehold Mortgagee and Landlord, between Landlord, Tenant and Leasehold Mortgagee, separately agreeing to all of the provisions of this Section.

 

38.          INDEMNITY. Except as otherwise expressly set forth in this Lease, Tenant shall assume exclusive control of the Demised Premises and all areas pertaining thereto including all appurtenances, improvements, utilities, water bodies, grounds, sidewalks, walkways, driveways and parking facilities, and Tenant shall bear the sole risk of all related tort liabilities. To the greatest extent permitted by applicable law, Tenant shall indemnify, save harmless and defend Landlord, Landlord’s adviser and mortgagees and their respective officers, directors, managers, members, partners, agents and employees, (“Indemnitees”) from all liability, claim, damage, cost or loss (including reasonable fees and litigation costs) arising in whole or in part out of, or in any manner connected with (i) any injury, loss, theft or damage to any person or property while on or about the Demised Premises, or (ii) any condition of the Demised Premises, or the possession and use thereof (including any failure to vacate at the end of the Term) or any activity permitted or suffered on the Demised Premises (including Hazardous Materials), or (iii) any breach of any covenant, representation or certification by Tenant or persons acting under Tenant, or (iv) any negligent act or omission anywhere by Tenant or persons acting under Tenant, in each case paying the same to Landlord on demand as Additional Rent, except to the extent such liability results from the negligence or willful misconduct of Landlord or the other Indemnitees. Without implying that other covenants do not survive, the covenants of this Section shall survive the Term. Tenant shall immediately respond and assume the investigation, defense and expense of all of the foregoing matters. Landlord or any Indemnitee, at its sole cost and expense, may join in such defense with counsel of its choice.

 

39.          LIMITATION OF LANDLORD’S LIABILITY. Notwithstanding anything contained to the contrary in this Lease, whether express or implied, it is agreed that Tenant will look only to Landlord’s fee interest in and to the Demised Premises for the collection of any judgment (or other judicial process) requiring the payment of money by Landlord in the event of a breach or default under this Lease by Landlord with respect to any claim whatsoever related to the Demised Premises, and no other property or assets of Landlord or of Landlord’s adviser or of any Fee Mortgagee or its or their managers, members, directors, officers, trustees, beneficiaries, shareholders, partners, joint venturers (disclosed or undisclosed) shall be subject to suit or to levy, execution or other enforcement procedures for the satisfaction of any such judgment (or other judicial process). No officer, director, manager, member, shareholder, trustee, beneficiary, partner, agent, attorney or employee of Landlord or of Landlord’s adviser or of any Fee Mortgagee shall ever be personally or individually liable; nor shall Landlord, Landlord’s adviser or any Fee Mortgagee or such persons ever be answerable or liable in any equitable judicial proceeding or order beyond the extent of their interest in the Demised Premises. In no event

 

149

 

shall Landlord, Landlord’s adviser or any Fee Mortgagee or any such persons ever be liable to Tenant for indirect or consequential damages.

 

40.            BOOKS AND RECORDS. Tenant shall at all times keep and maintain full and correct records and books of account of the operations of the Demised Premises in accordance with generally accepted accounting principals consistently applied and shall accurately record and preserve the records of such operations in accordance with its customary records retention policy. Notwithstanding that there has been no Percentage Rent Event, Tenant shall report the gross sales from the Demised Premises to Landlord annually for each fiscal year of Tenant no later than thirty (30) days following the end of such fiscal year, such report to be certified by Tenant’s chief financial officer. Landlord shall keep such information confidential at all times in accordance with the terms of Exhibit J and may only release such information to Landlord’s constituent members, and so long as such persons execute and deliver to Tenant a Confidentiality Agreement with Tenant in the form attached hereto as Exhibit J (“Confidentiality Agreement”) whether or not Tenant signs such Confidentiality Agreement, also to its lenders and prospective lenders and to prospective purchasers of Landlord’s interest in the Demised Premises. Upon an Event of Default, Tenant shall permit Landlord, Landlord’s accountants and Fee Mortgagees reasonable access thereto, with the right to make copies and excerpts therefrom upon reasonable advance notice to Tenant.

 

41.            SATELLITE DISH. If permitted by applicable law, Tenant shall have the right to place on the roof or wall of the Demised Premises at Tenant’s sole cost and expense, a satellite dish (hereinafter called the “Dish”) for transmission of data (both receiving and sending) between Tenant’s various operations and its headquarters in accordance with all laws and governmental regulations.

 

42.            NO PRESUMPTION AGAINST DRAFTER. Landlord and Tenant agree and acknowledge that this Lease has been freely negotiated by Landlord and Tenant. In any event of any ambiguity, controversy, dispute or disagreement over the interpretation, validity or enforceability of this Lease or any of its covenants, terms or conditions, no inference, presumption or conclusion whatsoever shall be drawn against Tenant by virtue of Tenant’s having drafted this Lease.

 

43.            SUCCESSORS AND ASSIGNS; AFFILIATES. The covenants and agreements contained in this Lease shall bind and inure to the benefit of the successors and assigns of each party. As used in this Lease “Affiliate” (whether or not capitalized) shall mean, with respect to any person, any person controlled by, controlling, or under common control with such person; and “control” shall mean any direct ownership interest or right through the exercise of voting or approval rights or otherwise, to exercise decision-making authority generally.

 

44.            CAPTIONS. The captions preceding the Sections of this Lease are intended only as a matter of convenience and for reference and in no way define, limit or describe the scope of this Lease or the intent of any provision hereof.

 

45.            INVALIDITY OF CERTAIN PROVISIONS. If any provision of this Lease shall be invalid or unenforceable, the remainder of the provisions of this Lease shall not be

 

150

 

affected thereby and each and every provision of this Lease shall be enforceable to the fullest extent permitted by law.

 

46.            CHOICE OF LAW/JURISDICTION. This Lease, and the rights and obligations of the parties hereto, shall be interpreted and construed in accordance with the laws where the Demised Premises are located (the “State”), without regard to the State’s internal conflict of law principles. Any disputes arising out of this Lease or between Landlord and Tenant shall be subject to the exclusive jurisdiction of the state courts of the State.

 

47.            NO WAIVER. The failure of either party to seek redress for violation of or to insist upon the strict performance of, any term, covenant or condition contained in this Lease shall not prevent a similar subsequent act from constituting a default under this Lease. Without limitation, no written consent by Landlord or Tenant to any act or omission that otherwise would be a default shall be construed to permit other similar acts or omissions. Neither party’s failure to seek redress for violation or to insist upon the strict performance of any covenant, nor the receipt by Landlord of rent with knowledge of any breach of covenant, shall be deemed a consent to or waiver of such breach. No breach of covenant shall be implied to have been waived unless such is in writing, signed by the party benefiting from such covenant and delivered to the other party; and no acceptance by Landlord of a lesser sum than the Fixed Annual Rent, Additional Rent or any other sum due shall be deemed to be other than on account of the installment of such rent or other sum due. Nor shall any endorsement or statement on any check or in any letter accompanying any check or payment be deemed an accord and satisfaction; and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such installment or pursue any other right or remedy. The delivery of keys (or any other act) to Landlord shall not operate as a termination of the Term or an acceptance or surrender of the Demised Premises. The acceptance by Landlord of any rent following the giving of any default and/or termination notice shall not be deemed a waiver of such notice.

 

48.            ATTORNEY’S FEES. In the event that either Landlord or Tenant employ an attorney to enforce or defend any of the conditions, covenants, rights or obligations of this Lease (including, without limitation, a default by either party), then the prevailing party shall be entitled to all reasonable attorney fees and all other reasonable out-of-pocket litigation costs (including, but not limited to filing fees, expert reports and testimony, court costs and other usual costs of litigation of this type) incurred by such prevailing party.

 

49.            WAIVER OF TRIAL BY JURY. To the extent such waiver is permitted by law, the parties waive trial by jury in any action or proceeding brought in connection with this Lease or the Demised Premises.

 

50. MISCELLANEOUS. Other than contemporaneous instruments executed and delivered of even date, if any, this Lease contains all of the agreements between Landlord and Tenant relating in any way to the Demised Premises and supersedes all prior agreements and dealings between them. There are no oral agreements between Landlord and Tenant relating to this Lease or the Demised Premises. This Lease may be amended only by a written instrument executed and delivered by both Landlord and Tenant. The provisions of this Lease shall bind Landlord and Tenant and their respective successors and assigns. Where the phrases “persons

 

151

 

acting under” Landlord or Tenant or “persons claiming through” Landlord or Tenant or similar phrases are used, the persons included shall be assignees, sublessees, licensees or other transferees or successors of Landlord or Tenant as well as invitees or independent contractors of Landlord or Tenant, and all of the respective employees, servants, contractors, agents and invitees of Landlord, Tenant and any of the foregoing. As used herein, “monetary default” shall mean a default that can be substantially cured solely by the payment of money and nothing more and “non-monetary default” shall mean a default that cannot be substantially cured solely by the payment of money and northing more. If either party is granted any extension, election or other option, to be effective the exercise (and notice thereof) shall be unconditional, irrevocable and must be made strictly in accordance with the prescribed terms and times; otherwise its purported exercise shall be void and ineffective. The enumeration of specific examples of a general provisions or use of the word “including” shall not be construed as a limitation of the general provision. Unless a party’s approval or consent is required by the express terms of this Lease not to be unreasonably withheld, such approval or consent may be withheld in the party’s sole discretion. The submission of a form of this Lease or any summary of its terms shall not constitute an offer by Landlord to Tenant; the leasehold shall only be created and the parties bound when this Lease is executed and delivered by both Landlord and Tenant. Nothing herein shall be construed as creating the relationship between Landlord and Tenant of principal and agent, or of partners or joint venturers or any relationship other than landlord and tenant. This Lease and all consents, notices, approvals and all other related documents may be reproduced by any party by any electronic means or by electronic, photographic or other reproduction process and the originals may be destroyed; and each party agrees that any reproductions shall be as admissible in evidence in any proceeding as the original itself (whether or not the original is in existence and whether or not reproduction was made in the regular course of business), and that any further reproduction of such reproduction shall likewise be admissible. If any payment in the nature of interest provided for in this Lease shall exceed the maximum interest permitted under controlling law, as established by final judgment of a court, then such interest shall instead be at the maximum permitted interest rate as established by such judgment. Landlord and Tenant expressly agree that there are and shall be no implied warranties of merchantability, habitability, suitability, fitness for a particular purpose or of any other kind arising out of this Lease, and there are no warranties or representations other than those expressly set forth in this Lease. Without limitation, where Tenant in this Lease indemnifies or covenants for the benefit of present and future Fee Mortgagees, such agreements are for the benefit of present and future Fee Mortgagees as third party beneficiaries; and at the request of Landlord, Tenant from time to time will confirm such matters directly with such Fee Mortgagee.

 

51.            COUNTERPARTS. This Lease may be executed in any number of counterparts, each of which shall be deemed to be one and the same instrument. A facsimile, email, PDF or electronic signature shall be deemed an original signature.

 

52.            INCORPORATION OF STATE LAW PROVISIONS. Certain provisions/ sections of this Lease and certain additional provisions/sections that are applicable or required by laws of the state in which the Demised Premises are located may be amended, described or otherwise set forth in more detail on Exhibit I attached hereto, which such Exhibit by this reference, is incorporated into and made a part of this Lease. In the event of any conflict between such state law provisions and any provision herein, the state law provisions shall control.

 

152

 

[SIGNATURE PAGE FOLLOWS]

 

153

 

	
 
    	
IN WITNESS WHEREOF this Lease   has been duly executed under as of the Effective Date.
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
 
    
	
 
    	
 
    	
WE APP LAWNSIDE LLC, a Delaware limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    
	
WITNESS:
    	
 
    	
 
    
	
 
    	
 
    	
PATHMARK STORES, INC., a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   Vice President and Secretary
    
					

 

154

 

Signature Page to Lease By and Between
 WE APP LAWNSIDE LLC and PATHMARK STORES, INC.

 

155

 

EXHIBIT A

 

SITE PLAN OF DEMISED PREMISES

 

 

156

 

EXHIBIT B1

 

LEGAL DESCRIPTION OF THE LAND

 

 

157

 

 

158

 

 

159

 

EXHIBIT B2 

 

TITLE MATTERS AND ENCUMBRANCES

 

1.                                       Payment of all taxes, water, sewer, rents and assessments, if any, to and including the current installment of 2010, not yet due and payable.

 

2.                                       Any unpaid municipal property taxes for the year 2010, not yet due and payable. NOTE: Taxes are paid to and including the third quarter of 2010.

 

3.                                       Possible additional taxes and assessments assessed or levied under R.S.54:4-653.1 et seq, not yet due and payable.

 

4.                                       Subject to restrictions as contained in Deed Book 2881/Page 207.

 

5.                                       Subject to terms of party wall agreement as contained in Deed Book 3117/1150.

 

6.                                       Grants and easements in Deed Book 3138/Page 565 to Public Service Electric and Gas Company.

 

7.                                       Subject to terms and provisions of agreements as contained in Deed Book 3164/1194, Modification of Cross-Easement Agreement in Deed Book 3791/418, and Amendment of Cross-Easement Agreement in Deed Book 5113/168.

 

8.                                       Subject to Real Property Waiver as contained in Deed Book 4242/Page 574.

 

160

 

EXHIBIT C

 

REMEDIAL WORK

 

(Tenant Performs Construction with Landlord Reimbursement)

 

Reimbursement Cap: N/A

 

Remedial Work Completion Date: the third anniversary of the Effective Date of the Lease

 

C. 1 Construction Documents. Tenant shall prepare, at Tenant’s expense, and deliver to Landlord Construction Documents (meaning plans and specifications prepared by design professionals licensed to prepare such plans and specifications which reasonably fix and describe the work to be performed by Tenant contractors) for roof replacements, parking area repairs and replacements, heating, ventilating and air conditioning upgrades, environmental remediation, asbestos abatement and automation improvements in an amount totaling at least the amount of the Reimbursement Cap, all as Landlord and Tenant shall reasonably and mutually agree. The Construction Documents shall substantially conform to and describe such work as so agreed, and when such Construction Documents are approved by Landlord, such approval not to be unreasonably withheld, conditioned or delayed, the work described therein shall be the “Remedial Work” referred to herein. Tenant shall provide at least 6 copies of the Construction Documents to Landlord. Tenant shall be solely responsible for the liabilities and expenses of all architectural and engineering services relating to the Remedial Work and for the adequacy and completeness of the Construction Documents submitted to Landlord and for the Remedial Work itself, notwithstanding Landlord’s approval thereof.

 

C.2 Remedial Work Reimbursement. Upon Landlord’s approval of the Construction Documents showing the Remedial Work to be performed, Tenant shall cause the Remedial Work to be performed in accordance with all of the terms and requirements of the Lease including Exhibit G, and the reasonable out-of-pocket costs to Tenant of performing the Remedial Work shall be eligible for Reimbursement in the manner provided below up to but not in excess of the Reimbursement Cap listed above. All costs for the Remedial Work in excess of the Reimbursement Cap shall be paid for entirely by Tenant, and Landlord shall not provide any reimbursement therefor. Any Remedial Work not completed by the Remedial Work Completion Date listed above shall be ineligible for reimbursement from Landlord, and such Remedial Work shall be paid for solely by Tenant.

 

Notwithstanding anything in the Lease to the contrary, prior to the Remedial Work Completion Date Tenant shall have no obligation to perform any Remedial Work if the cost of same will exceed the Reimbursement Cap, unless Tenant determines, in its sole, reasonable judgment, that such work is necessary and prudent for the proper maintenance and operation of the Demised Premises.

 

Reimbursement of the reasonable out-of-pocket costs to Tenant of performing Remedial Work up to the Reimbursement Cap and by the Remedial Work Completion Date shall be disbursed to Tenant by Landlord in no more than four disbursements the requests for each of which shall not

 

161

 

be submitted more frequently than monthly. For each disbursement, Tenant shall submit a requisition package to Landlord with (1) an itemization of the costs being requisitioned, (2) a certificate by an officer of Tenant that all such costs are reasonable out-of-pocket costs to Tenant of performing Remedial Work and have been incurred and paid for by Tenant, that to the actual knowledge of Tenant the Remedial Work included within the requisition has been performed substantially in accordance with the Construction Documents and in accordance with the Lease, (3) appropriate back-up documentation including, without limitation, lien releases (in a form reasonably approved by Landlord) and paid invoices and bills and (4) a statement by Tenant’s chief financial officer that such officer knows of no default under the Lease on the part of Tenant nor of any event which with the giving of notice or the passage of time or both could ripen into a default under the Lease. The final requisition package shall further include a copy of all applications for and copies of all governmental permits issued in connection with the Remedial Work and the plans referred to in Section 13 of the Lease for any Alterations. Notwithstanding anything herein or in the Lease to the contrary, Landlord shall not be obligated to reimburse any costs of Remedial Work if a default under the Lease has occurred and is continuing. Landlord shall pay the reimbursement to Tenant within thirty (30) days following Landlord’s receipt of the completed package. In the event that Landlord fails to pay the reimbursement within such thirty (30) day period, Tenant may deduct the reimbursebable amount against Rent due under the Lease.

 

C.3 Performance of Remedial Work by Tenant. No Remedial Work for which reimbursement is sought shall be performed except in accordance with the Construction Documents. In connection with its approval thereof, Landlord may delete from the Construction Documents any items or aspects of Remedial Work which in Landlord’s reasonable judgment (i) would increase the cost of operating the Building or performing any other work in the Building, (ii) are incompatible with the design, quality, equipment or systems of the Building, (iii) would require unusual expense to readapt the Premises to general grocery store use or 

(iv) otherwise do not comply with the provisions of this Lease. Prior to commencing any Remedial Work, Tenant shall submit to Landlord certificates of insurance on the part of Tenant contractors meeting the requirements of Exhibit G paragraph 1A (4). If any such Tenant contractor or any other person ever makes a claim against any Indemnitee (as such term is defined in Section 38) in connection with any Remedial Work, then Tenant shall indemnify such Indemnitee in the manner provided in the Lease against such claim.

 

C.4 Re-allocation of Reimbursement Cap. Upon the completion of the Remedial Work up to $20,000 of the Reimbursement Cap may be allocated to increase the “Reimbursement Cap” under any other lease between Tenant and any Affiliate of Landlord (except for that certain lease for space at 9210 Atlantic Avenue, Queens (Ozone Park), New York).

 

162

 

EXHIBIT D

 

FORM OF SUBORDINATION, NON-DISTURBANCE AND 
 ATTORNMENT AGREEMENT

 

KEY NO:

 

THIS AGREEMENT, made as of                                2010, by and among                          , a                          , and its successors and assigns, having an office at                                                 (hereinafter together with its successors and assigns called “Mortgagee”), WE APP Lawnside LLC, a Delaware limited liability company, having an office c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 (hereinafter called “Landlord”) and Pathmark Stores, Inc., a Delaware corporation having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”).

 

W I T N E S S E T H:

 

WHEREAS, Mortgagee has made a loan, or is about to make a loan to Landlord in the original principal amount of $                      evidenced by a promissory Note secured by, among other securities, a mortgage or deed of trust (hereinafter, as the same may be amended, supplemented or otherwise modified from time to time, called the “Mortgage”) covering a parcel or parcels of land owned by Landlord and described on Exhibit A annexed hereto and made a part hereof, together with the improvements now or hereafter erected thereon (said parcel or parcels of land and improvements thereon being hereinafter called the “Mortgaged Property”);

 

WHEREAS, by a certain lease heretofore entered into between Landlord and Tenant dated as of November        2010 and amended by [ ] (said lease and amendments being hereinafter collectively called the “Lease”), Landlord leased to Tenant the Mortgaged Premises together with the building now or hereafter erected on all or a portion of said premises (the Mortgaged Premises and the improvements on or to be erected thereon being thereinafter called the “Demised Premises”);

 

WHEREAS, a Memorandum of Lease dated November        2010 was recorded on November       , 2010 in the                     in Book                         , Page                 ;

 

WHEREAS, a copy of the Lease has been delivered to Mortgagee, the receipt of which is hereby acknowledged; and

 

WHEREAS, Mortgagee is unwilling to make said loan to Landlord unless the Lease is subordinate to the lien of the Mortgage; and

 

WHEREAS, Section 16 of the Lease provides that the Lease shall become subject and subordinate to the lien of a mortgage of the fee interest of the Demised Premises if and when a non-disturbance agreement is entered into with respect to such mortgage; and

 

WHEREAS, the parties desire to subordinate the Lease to the lien of the Mortgage, and to provide for the non-disturbance of Tenant by Mortgagee.

 

163

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.               Mortgagee hereby consents to and approves the Lease.

 

2.               Tenant covenants and agrees with Mortgagee that the Lease and any extensions, renewals, replacements or modifications thereof and Tenant’s interest in the premises under the Lease are and at all times shall subject and subordinate to the lien of the Mortgage, without regard to the order of priority of recording of the Mortgage and the Memorandum of the Lease, subject, however, to the provisions of this Agreement.

 

3.               Tenant certifies that the Lease is presently in full force and effect.

 

4.               Mortgagee agrees that so long as the Lease shall be in full force and effect and so long as Tenant is not in default (beyond any applicable notice and cure period) in the payment of fixed rent as set forth in the Lease, or in the performance of any of the terms, covenants or conditions of the Lease on Tenant’s part to be performed:

 

A.             Tenant shall not be named or joined as a party defendant or otherwise in any suit, action or proceeding for the foreclosure of the Mortgage or to enforce any rights under the Mortgage or the bond or note or other obligations secured thereby unless required by law to do so; and

 

B.              The possession by Tenant of the Demised Premises and the Tenant’s rights thereto shall not be disturbed, affected or impaired by, nor will the Lease or the term thereof be terminated or otherwise affected by (i) any suit, action or proceeding upon the Mortgage or the bond or note or other obligation secured thereby, or for the foreclosure of the Mortgage or the enforcement of any rights under the Mortgage or any other documents held by the Mortgagee, or by any judicial sale or execution or other sale of the Mortgaged Property, or by any deed given in lieu of foreclosure, or by the exercise of any other rights given to the Mortgagee by any other documents or as a matter of law, or (ii) any default under the Mortgage or the bond or note or other obligation secured thereby.

 

5.               Mortgagee hereby acknowledges and agrees that all trade fixtures and equipment whether owned by Tenant or any subtenant or leased by Tenant from a Landlord/Owner in the Demised Premises shall be subject to the provisions of Section 17 of the Lease.

 

6.               If the Mortgagee shall become the owner of the Mortgaged Property by reason of foreclosure of the Mortgage or otherwise, or if the Mortgaged Property shall be sold as a result of any action or proceeding to foreclose the Mortgage or by a deed given in lieu of foreclosure, the Lease shall continue in full force and effect, without necessity for executing any new lease, as a direct lease between Tenant, as tenant thereunder, and the then owner of the Mortgaged Property, as landlord thereunder, upon all of the same terms, covenants and provisions contained in the Lease, and in such event:

 

164

 

A.             Tenant shall be bound to such new owner under all of the terms, covenants and provisions of the Lease for the remainder of the term thereof (including the Renewal Periods, if Tenant elects or has elected to exercise its options to extend the term) and Tenant hereby agrees to attorn to such new owner and to recognize such new owner as landlord under the Lease; and

 

B.              Such new owner shall be bound to Tenant under all of the terms, covenants and provisions of the Lease for the remainder of the term thereof (including the Renewal Periods, if Tenant elects or has elected to exercise its options to extend the term) which terms, covenants and provisions such new owner hereby agrees to assume and perform; provided, however, that such new owner shall not be (i) obligated to complete any construction work required to be done by Landlord within or outside of the Demised Premises pursuant to the provisions of the Lease or to reimburse Tenant for any construction work done by Tenant; however this provision shall not relieve such new owner from any repair or maintenance obligations of Landlord expressly set forth in the Lease accruing or arising following new owner’s acquisition of fee title to the Mortgaged Property or impair any express setoff rights of Tenant expressly set forth in the Lease accruing or arising following new owner’s acquisition of fee title to the Mortgaged Property; (ii) required to make any repairs to the Mortgaged Property or to the Demised Premises or to perform any other construction or other work, including without limitation the restoration of the Demised Premises following any casualty or taking; (iii) liable for the return of security deposits or letters of credit, if any, paid or delivered by or on behalf of Tenant to Landlord, except to the extent such sums are actually received by such new owner (or any Mortgagee if such Mortgagee is not the new owner); (iv) bound by any payment of rents, additional rents or other sums which Tenant may have paid more than one (1) month in advance to any prior Landlord unless such sums are actually received by Mortgagee or if such prepayment shall have been expressly approved of in writing by such new owner (or any Mortgagee if such Mortgagee is not the new owner); (v) bound by any agreement amending, modifying or terminating the Lease made without Mortgagee’s prior written consent; (vi) bound by any assignment of the Lease or sublease of the Demised Premises, or any portion thereof, made prior to the time such new owner succeeded to Landlord’s interest other than if made pursuant to the provisions of the Lease; (vii) liable on account of any default on the part of Landlord occurring prior to such new owner’s succeeding to Landlord’s estate; or (viii) subject to any counterclaims, offsets or defenses that Tenant might have against Landlord.

 

7.               If Landlord shall default in the performance of the Lease Tenant shall give written notice thereof to Mortgagee and Mortgagee shall have the right, but not the obligation, to cure such default in accordance with Section 23 of the Lease (and as provided therein the Mortgagee shall be entitled to such further time to cure as may be reasonably necessary for the Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion)

 

8.               Landlord has agreed in the Mortgage and other loan documents that the rents payable under the Lease shall be paid directly by Tenant to Mortgagee upon the occurrence of a default by Landlord under the Mortgage or any other loan document. Accordingly, after notice is given by Mortgagee to Tenant that the rents under the Lease should be paid to or at the

 

165

 

direction of Mortgagee, Tenant shall pay to Mortgagee, or in accordance with the directions of Mortgagee, all rents and other monies thereafter due and to become due under the Lease. Tenant shall have no responsibility to ascertain whether such demand by Lender is permitted under the Mortgage or any other loan document. Landlord hereby waives any right, claim or demand it may have nor or hereafter have against Tenant by reason of such payment to Mortgagee, and any such payment to Mortgagee shall discharge the obligations of Mortgagee to make such payment under the Lease.

 

9.               Any notices or communications given under this Agreement shall be in writing and shall be given by registered or certified mail, return receipt requested, postage prepaid, (a) if to Mortgagee at the address of Mortgagee as hereinabove set forth or at such other address as Mortgagee may designate by notice, or (b) if to Landlord at the address of Landlord as hereinabove, or at such other address as Landlord may designate by notice, or (c) if to Tenant, then one copy shall be delivered to the attention of the Senior Vice President of Real Estate of Tenant, another shall be delivered to the attention of General Counsel of Tenant, and another shall be delivered to the Director of Properties & Administration of Tenant, all at 2 Paragon Drive, Montvale, New Jersey 07645 or at such other addresses as Tenant may designate by notice. During the period of any postal strike or other interference with the mail, personal delivery shall be substituted for registered or certified mail.

 

10.             This Agreement shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective heirs, personal representatives, successors and assigns.

 

11.           This Agreement contains the entire agreement between the parties and cannot be changed, modified, waived or cancelled except by an agreement in writing executed by the party against whom enforcement of such modification, change, waiver or cancellation is sought.

 

12.           This Agreement and the covenants herein contained are intended to run with and bind all lands affected thereby.

 

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

 

	
WITNESS:
    	
 
    	
 
    
	
 
    	
 
    	
MORTGAGEE:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
, a                                   
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
						

 

166

 

	
 
    	
 
    	
WE   APP LAWNSIDE LLC, a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PATHMARK   STORES, INC., a Delaware corporation
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   
    	
Christopher   W. McGarry
    
	
 
    	
 
    	
Title:   
    	
Vice   President and Secretary
    

 

167

 

	
WITNESS:
    	
 
    	
LANDLORD:
    	
 
    	
 
    
	
 
    	
 
    	
MORTGAGEE ACKNOWLEDGMENT
    	
 
    

 

STATE OF                         )

SS:

COUNTY OF                   )

 

ON THIS                       day of                              .2010, before me, the subscriber, personally appeared                   to me known, who being by me duly sworn, did depose and say that he is                  of                  the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

LANDLORD ACKNOWLEDGMENT

 

COMMONWEALTH OF MASSACHUSETTS

 

Suffolk, ss.

 

On this               day of                      2010, before me, the undersigned notary public, personally appeared                                , proved to me through satisfactory evidence of identification, which was a [current driver’s license] [a current U.S. passport] [my personal knowledge], to be the person whose name is signed on the preceding instrument and acknowledged the foregoing instrument to be his/her free act and deed as                      of WE APP Lawnside LLC.

 

 

	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
My   Commission Expires:
    

 

168

 

TENANT ACKNOWLEDGMENT

 

STATE OF NEW JERSEY)

SS

COUNTY OF BERGEN)

 

ON THIS                          day of                   , 2010, before me, the subscriber, personally came Christopher W. McGarry, to me known, who being by me duly sworn, did depose and say that he is Vice President and Secretary of Pathmark Stores, Inc., the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

169

 

EXHIBIT A

 

LEGAL DESCRIPTION OF MORTGAGED PROPERTY

 

(Attached)

 

170

 

EXHIBIT E 
  KEY NO:                                                        

 

MEMORANDUM OF LEASE

 

THIS MEMORANDUM OF LEASE made as of November          , 2010 by WE APP LAWNSIDE LLC, a Delaware limited liability company, having an office at c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 Attn: Adam Winstanley (hereinafter called “Landlord”), and PATHMARK STORES, INC., a Delaware corporation, having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”).

 

W I T N E S S E T H:

 

1.              For and in consideration of the sum of TEN and no/100 Dollars ($10.00) and of other valuable considerations paid by Tenant to Landlord, the receipt and sufficiency of which are hereby acknowledged by Landlord, Tenant and Tenant hereby takes from Landlord that certain parcel of land (hereinafter called “Land”) described on Exhibit B and the buildings and other improvements now or hereafter erected on the Land together with the benefit of any and all easements, appurtenances, rights and privileges now or hereafter belonging thereto. The land is currently improved by an existing building consisting of 55,760 square feet of space (the “Building), as more particularly shown on the site plan attached hereto as Exhibit A. The Building and any buildings and improvements now or hereafter erected on the Land shall be hereinafter called “Improvements”. The Land and any Improvements now or hereafter erected thereon are hereinafter collectively called the “Demised Premises.” The Demised Premises have been leased to Tenant upon and subject to the covenants and agreements set forth in a certain agreement between Landlord and Tenant bearing even date herewith (hereinafter called the “Lease”).

 

2.               The Lease is in effect. The original term of the Lease shall continue to and include the date which is twenty (20) years after the day before the Commencement Date if the Commencement Date is the first day of a month, or twenty years (20) years after the last day of the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month.

 

3.               Tenant has the right and option to extend the term of the Lease from the date upon which it would otherwise expire for ten (10) separate renewal periods of five (5) years each (each such period being known as a “Renewal Period”). Said right and option, if exercised by Tenant, shall be in accordance with the terms and conditions of Section 4 of the Lease.

 

4.               The Lease contains the entire agreement between the parties. All persons are hereby put on notice of the existence of the Lease and are referred to the Lease for its terms and conditions. The Lease is on file in the offices of Tenant and the Landlord as hereinabove set forth.

 

5.               This Memorandum of Lease is prepared, signed and acknowledged solely for recording purposes under the laws of the State of New Jersey, and is in no way intended to

 

171

 

change, alter, modify, amend or in any other way affect the rights, duties and obligations of Landlord and Tenant pursuant to the Lease; it being specifically understood and agreed between the parties that each has rights, duties and obligations imposed upon it in the Lease which are not expressly contained herein but are included herein by reference.

 

6. Upon expiration of the Lease term Landlord and its successors and assigns has irrevocably been named attorney-in-fact by Tenant in the Lease to execute, deliver and record a notice of termination of this Memorandum.

 

IN WITNESS WHEREOF this Memorandum of Lease has been duly executed as of the day and year first above written.

 

	
WITNESS:
    	
 
    	
WE APP LAWNSIDE LLC, a Delaware
    
	
 
    	
 
    	
limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
PATHMARK STORES, INC., a
    
	
 
    	
 
    	
Delaware   corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Christopher   W. McGarry
    
	
 
    	
 
    	
Title:   
    	
Vice   President and Secretary
    
					

 

172

 

EXHIBIT B

 

DEMISED PREMISES

 

173

 

EXHIBIT B

 

LEGAL DESCRIPTION OF THE LAND

 

174

 

COMMONWEALTH OF MASSACHUSETTS

 

Suffolk, ss.

 

On this                 day of November 2010, before me, the undersigned notary public, personally appeared                               , proved to me through satisfactory evidence of identification, which was a [current driver’s license] [a current U.S. passport] [my personal knowledge], to be the person whose name is signed on the preceding instrument and acknowledged the foregoing instrument to be his/her free act and deed as                              of WE APP Lawnside LLC.

 

 

	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
My   Commission Expires:
    

 

STATE OF NEW JERSEY)

SS

COUNTY OF BERGEN)

 

ON THIS           day of November, 2010, before me, the subscriber, personally came Christopher W. McGarry, to me known, who being by me duly sworn, did depose and say that he is the Vice President and Secretary of Pathmark Stores, Inc., the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

175

 

UNCONDITIONAL GUARANTY

 

WHEREAS, Pathmark Stores, Inc., a Delaware corporation (“Tenant”) desires to enter into a certain lease (“Lease”) of even date concerning Demised Premises known as 130 White Horse Pike, Lawnside, New Jersey, with WE APP Lawnside LLC, a Delaware limited liability company (“Landlord”). (Terms used herein and not otherwise defined will have the meaning given in the Lease.)

 

WHEREAS, as an inducement to entering into the Lease Landlord has required that the undersigned The Great Atlantic & Pacific Tea Company, Inc. (“Guarantor”) unconditionally guarantees the performance of all obligations of Tenant under the Lease.

 

NOW, THEREFORE, for good and valuable consideration, intending to be legally bound hereby, Guarantor agrees as follows:

 

1.               Guarantor unconditionally and absolutely guarantees to Landlord (which shall include its legal representatives, successors and assigns) the due and punctual performance of each and all of the Tenant’s obligations under or related to the Lease, including the timely payment of all sums due therein. Tenant’s obligations hereby guaranteed include, without limitation, those arising under amendments or modifications to the Lease hereafter entered into by Tenant and Landlord, all of which shall be so guaranteed even though Guarantor hereafter does not consent to or approve the same (Guarantor hereby waiving all rights of consent or approval with respect to such amendments or modifications).

 

2.               Guarantor waives presentment for payment or performance, notice of nonpayment or performance, notice of default, demand, protest or notice or acceptance of this Guaranty, any rights Guarantor may have by reason of any forbearance, modification, amendment, extension or any indulgence whatsoever that Landlord may grant or to which Landlord and the Tenant may agree with respect to the Lease, any and all notice of every kind to which Guarantor might otherwise be entitled with respect to the incurring of any further obligation or liability by Tenant to Landlord, demand for payment, the presentment of any instrument for payment, the protest or nonpayment thereof and any and all defenses whatsoever excepting only Tenant’s performance as required by the terms of the Lease. Guarantor also waives, unless and until all of the obligations of Tenant are fully paid and performed, any right to be subrogated in whole or in part to any right or claim of Landlord against Tenant and any right to require the marshalling of any assets of the Tenant, which right of subrogation or marshalling might otherwise arise from any partial payment by the Guarantor. It is expressly understood and agreed that Guarantor’s liability hereunder shall be unaffected by (i) any amendment or modification whatsoever of the provisions of the Lease, (ii) any extension of time for performance under the Lease, (iii) any delay by Landlord in exercising any right under the Lease or this Guaranty (none of which shall ever operate as a waiver of such right), or (iv) the release of Tenant or any other guarantor from performance or observance of any of the agreements or conditions contained in the Lease by operation of law or otherwise, whether made with or without notice to Guarantor, including without limitation any impairment, modification, change, release, rejection, disaffirmance, or limitation of the liability of Tenant, or any other guarantor of the Lease, of their estate in

 

176

 

EXHIBIT F

 

bankruptcy or insolvency resulting from the operation of any present or future provision of the Federal Bankruptcy Code or other similar or insolvency statute, or from the decision of any court. Guarantor covenants that Guarantor will cause Tenant to maintain and preserve the enforceability of the Lease, as the same may hereafter be modified or amended, and will not permit it to take or to fail to take action of any kind the taking of which or the failure to take might be the basis for a claim that Guarantor has any defense to its obligation hereunder other than timely performance in full of the Lease in accordance with its terms. The joint and several liability of Guarantor hereunder shall exist irrespective of the validity or enforceability of the Lease.

 

3.               This shall be an agreement of suretyship as well as of guaranty, and Landlord, without being required to proceed first against Tenant or any other person or entity, may proceed directly against Guarantor whenever Tenant fails to make any payment due or fails to perform any obligation now or hereafter owed to Landlord without first resorting to or exhausting any other remedy and without first having recourse to the Lease; provided, however, that nothing herein contained shall prevent Landlord from suing on the Lease with or without making Guarantor a party to the suit or from exercising any other rights thereunder and if such suit, or other remedy, is availed of, only the net proceeds therefrom, after deduction of all Landlord’s Costs of Collection (defined below) shall be applied in reduction of the amount then due on this Guaranty.

 

4.               Guarantor agrees to pay to Landlord, on demand, all costs and expenses, including reasonable attorneys’ fees and litigation expenses, which Landlord may incur in the enforcement of Tenant’s obligations under the Lease or the liability of Guarantor hereunder (“Costs of Collection”). “Costs of Collection” includes, without limitation, all out of pocket expenses incurred by the Landlord’s attorneys and all costs incurred by Landlord including, without limitation, costs and expenses associated with travel on behalf of Landlord, which costs and expenses are related to or in respect of Landlord’s efforts to collect and/or to enforce any of the obligations and/or to enforce any of its rights, remedies or powers against or in respect of either or both Tenant or Guarantor (whether or not suit is instituted in connection with such efforts).

 

5.             Guarantor represents and warrants to Landlord that (i) it has either examined the Lease or has had an opportunity to examine the Lease and has waived the right to examine; (ii) that it (and the individual acting on its behalf) has the full power, authority and legal right to execute and deliver this Guaranty; (iii) that this Guaranty is a binding legal obligation and is fully enforceable against Guarantor in accordance with its terms; (iv) that there is no action or proceeding pending or, to its knowledge, threatened against Guarantor before any court or administrative agency which might result in any material adverse change in its business or condition or in its assets; (v) that neither the execution nor delivery of this Guaranty nor fulfillment of nor compliance with the terms and provisions thereof will constitute a default under or result in the creation of any lien, charge or encumbrance upon any property or assets of Guarantor under any agreement or instrument to which it is now a party or by which Guarantor may be bound; and (vi) that Guarantor is the sole owner of all the common stock of Tenant and expects to derive financial benefit from the Lease.

 

177

 

6.               This Agreement shall be binding upon Guarantor and its legal representatives, successors and assigns, and shall inure to the benefit of Landlord and its legal representatives, successors and assigns, and is irrevocable until released in writing by Landlord. Each and every right, remedy and power hereby granted to Landlord or allowed it by law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by Landlord at any time and from time to time. The validity, construction and performance of this Guaranty shall be governed by the laws of the State where the Demised Premises are located (the “State”), without regard to conflict of law principles. If any clause or provision of this Guaranty should be held illegal or invalid by any court, the invalidity of such clause or provisions shall not affect any of the remaining clauses or provisions hereof. In case any agreement or obligation contained in this Guaranty should be held to be in violation of law, then such agreement or obligation shall be deemed to be the agreement or obligation of the Guarantor, as the case may be, to the full extent permitted by law. Each and every default hereunder or under the Lease shall give rise to a separate cause of action hereunder. The obligations and liabilities of hereunder shall be joint and several with any other guarantees given to Landlord in connection with the Lease. This Guaranty may be amended only by instrument in writing executed and delivered by both Landlord and Tenant. The provisions of this Guaranty shall bind Guarantor and its respective successors and assigns, and shall inure to the benefit of Landlord and its successors and assigns. This Guaranty and all consents, notices, approvals and all other documents relating hereto may be reproduced by photographic, microfilm, microfiche or other reproduction process and the originals thereof may be destroyed; and each party agrees that any reproductions shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not reproduction was made in the regular course of business) and that any further reproduction of such reproduction shall likewise be admissible in evidence.

 

7.               Guarantor consents to and agrees that the courts of the State shall have personal jurisdiction over Guarantor for any action brought on this Guaranty including the right to grant judgment against Guarantor personally together with interest on any judgment obtained by Landlord at the interest rate set forth in the Lease for late payments (but if the same shall be unlawful for any reason, then at the highest permissible interest rate). Guarantor further agrees and consents that venue, if any, for any such action shall be as set forth in the Lease. Guarantor waives and relinquishes any and all rights to removal of any such action to any other court. Guarantor also waives trial by jury in any judicial proceeding involving any matter in any way arising out of or relating to this Guaranty or the Lease.

 

8.               Any notice, communication, request or other document or demand made under this Guaranty shall be in writing and shall be deemed given at the earlier of (i) the date received or (ii) three (3) business days after the date deposited in a United States Postal Service Depository, postage prepaid first class certified or registered mail, return receipt requested, addressed to Guarantor or Landlord, as the case may be, at the respective addresses set forth opposite their names below:

 

178

 

Landlord:

 

WE APP Lawnside LLC

c/o Winstanley Enterprises, LLC

150 Baker Avenue Extension, Suite 303
 Concord, MA 01742

Attn. Adam Winstanley

 

 

with a copy similarly sent to:

 

DLA Piper LLP (US)

33 Arch Street, 26th Floor

Boston, MA 02110

Attention: Daniel A. Taylor, Esq. or Primo Fontana, Esq.

 

Guarantor:

 

The Great Atlantic & Pacific Tea Company, Inc.
 2 Paragon Drive

Montvale, New Jersey 07645

Attn: Senior Vice President of Real Estate

 

 

with a copy similarly sent to

 

The Great Atlantic & Pacific Tea Company, Inc.
 2 Paragon Drive

Montvale, New Jersey 07645

Attn: General Counsel

 

Either party may change an address to which any such notice, communication, request or other document or demand is to be delivered to it or delivery of copies thereof by furnishing written notice of such change to the other party. Each party shall, when giving notices, send at least one (1) copy by Federal Express, U.S. Express Mail, or other overnight delivery service, to the addressee.

 

IN WITNESS WHEREOF, Guarantor has executed and sealed this Guaranty the day of November            , 2010.

 

	
WITNESS:
    	
 
    	
THE GREAT ATLANTIC & PACIFIC
    
	
 
    	
 
    	
TEA COMPANY, INC., a Maryland corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
 
    	
Name:   Christopher W. McGarry 
    
	
 
    	
 
    	
 
    	
Title:   Senior Vice President
    

 

179

 

EXHIBIT G

 

INSURANCE

 

This Exhibit G shall be incorporated into the Lease, and where terms of this Exhibit conflict with these terms within the Lease, the terms of this Exhibit shall prevail and govern the Lease.

 

1.              INSURANCE.

 

A. Coverage. Tenant shall purchase and maintain insurance during the entire Term of the Lease and any period Tenant (or any party claiming by, through or under Tenant) occupies any portion of the Demised Premises, for the benefit of the Tenant and Landlord (as their interest may appear) with terms and coverages reasonably satisfactory to Landlord, and with insurers having a minimum A.M. Best rating of at least A/X, and with such increases in limits as Landlord may from time to time reasonably request, but initially Tenant shall maintain the following coverages in the following amounts:

 

(1)             Commercial General Liability Insurance naming Landlord, Landlord’s management, leasing and development agents and Landlord’s mortgagee(s) from time to time as additional insureds, with coverage for premises/operations, personal and advertising injury, products/completed operations and contractual liability with combined single limits of liability of not less than $1,000,000 for bodily injury and property damage per occurrence and not less than 2,000,000 in the aggregate and excess liability insurance with a limit not less than $20,000,000 per occurrence and aggregate. Notwithstanding anything to the contrary contained herein, Tenant’s obligation to maintain general liability insurance may be satisfied through a program of self-insurance whereby Tenant self-insures the first $3,000,000.00 per claim as long as the program is supported by an A-rated insurance company and its third party administrator.

 

(2)             Property insurance covering property damage and business interruption for the entire Demised Premises. Covered property shall include the Building, boilers and machinery, all tenant improvements, office furniture, trade fixtures, office equipment, merchandise and all other items Tenant’s property on the Demised Premises. Such insurance shall name Landlord and Fee Mortgagee(s) from time to time as additional loss payees as their interests may appear. Such insurance shall be written on an “all risk” of physical loss or damage basis including but not limited to the perils of fire, extended coverage, windstorm, vandalism, malicious mischief, terrorism, sprinkler leakage, flood, windstorm and earthquake, for the full replacement cost value of the covered items and other endorsements as Landlord shall reasonably request from time to time and in amounts that meet any co insurance clause of the policies of insurance with a deductible amount not to exceed $750,000. Such insurance shall include rent continuation coverage of no less than twelve (12) months. Such policy or policies shall provide that the proceeds of any loss shall be payable to Landlord and Tenant and to the holder (as its interest may appear) of any Fee Mortgage to which this Lease is subordinate so long as such holder and future holders of such Fee Mortgage are obligated to apply proceeds of insurance in the manner provided for in this Lease.

 

180

 

EXHIBIT H

 

(3)             Workers’ Compensation Insurance and Employers Liability Insurance with statutory limits and automobile liability insurance (coverage must include owned, leased, hired and non owned vehicles) with a limit of at least $1,000,000 Combined Single Limit-Bodily Injury & Property Damage.

 

(4)             Tenant shall purchase or shall cause each Tenant contractor performing work on the Demised Premises to carry insurance protecting against claims set forth below which may arise out of or result from the contractor’s operations on the Premises and naming Landlord, Landlord’s management, leasing and development agents as additional insureds for Premises Operations and Completed Operations. Waiver of Subrogation to apply under all policies.

 

(1)             claims under workers’ or workmen’s compensation, disability benefit and other similar employee benefit acts—in amounts as required by law;

 

(2)             claims for damages because of bodily injury, occupational sickness or disease, or death of his employees or any other person and other personal injury and motor vehicle liability — Public Liability - Single Limit (Combined) Per Occurrence. Bodily Injury/Property Damage $1,000,000 w/ $2,000,000 General/Completed Operations Aggregate. Automobile Liability - Single Limit (Combined) Per Occurrence Bodily Injury and Property Damage $1,000,000. Excess Liability Umbrella covering all above items $5,000,000 per Occurrence; and

 

(3) claims for damages, other than the work of the contractor itself, because of injury to or destruction of tangible property, including loss of use resulting therefrom — $1,000,000 per occurrence.

 

Tenant shall, prior to the commencement of the Term and on each anniversary of the renewal date thereof, furnish to Landlord certificate(s) evidencing such coverage, which certificate(s) shall state that such insurance coverage may not be canceled without at least thirty (30) days’ prior written notice to Landlord and Tenant. The insurance maintained by Tenant shall be deemed to be primary insurance and any insurance maintained by Landlord (acknowledging that Landlord has no obligation to maintain any insurance) shall be deemed secondary thereto. On all liability insurance Landlord, (and if requested, Landlord’s Fee Mortgagees and Landlord’s management, leasing and development agents shall be named as additional insureds with such coverage to be primary. Tenant agrees from time to time to deliver true and complete copies of all policies to Landlord upon request.

 

181

 

EXHIBIT H

 

PERCENTAGE RENT

 

If any Percentage Rent Event occurs as described in Section 5(E) of the Lease, then the following provisions shall immediately take effect, shall become a part of the Lease for the remainder of the Term and Tenant shall, in addition to all other rent provided for in the Lease, also pay Percentage Rent to Landlord in accordance with the following:

 

Section 5(E) Percentage Rent

 

5(E)(1) Percentage Rent - General Covenant. As used in this Section 5(E) the following terms have these meanings:

 

“Percentage Rent Rate” means one percent (1%) of Excess Gross Sales.

 

“Excess Gross Sales” means Gross Sales above the Gross Sales Benchmark. “Gross Sales” has the meaning given below in Section 5 (E)(2).

 

“Gross Sales Benchmark” means $35,000,000.00, which amount is increased by five (5%) every five years at the same time Fixed Annual Rent increases under Section 5 (A) of the Lease.

 

Tenant covenants and agrees to pay to Landlord, as Additional Rent, the amount, if any, of Tenant’s Excess Gross Sales during any calendar month or part thereof during the Term, multiplied by the Percentage Rent Rate (“Percentage Rent”). (For any period less than a full calendar month the Excess Gross Sales and the Gross Sales Benchmark shall be prorated.) Such amounts payable hereunder are referred to as “Percentage Rent” and are also included in the term “Additional Rent.”

 

5 (E)(2) Gross Sales - Definition. “Gross Sales” means the total amount in dollars of the actual price charged (including finance charges), by Tenant and any sublease, assignee, licensee or other person conducting sales from or with respect to the Demised Premises, whether for cash or on credit, for all sales of merchandise, food, beverages, services, gift or merchandise certificates, and all other receipts of business conducted at, in, on, about or from the Premises, including, but not limited to, all mail or telephone orders, all internet sales, and all catalog sales and all home delivery sales received or filled at, from or with respect to the Premises, and including all deposits not refunded to purchasers, all orders taken in, from or with respect to the Premises, whether or not such orders are filled elsewhere, receipts of sales through any vending machine or other coin or token operated device or otherwise at, in, on, about, from or with respect to the Premises, and sales and receipts occurring or arising as a result of solicitation off the Premises conducted by personnel operating from or reporting to, or under the supervision of any employee of Tenant located at the Demised Premises. Gross Sales shall not, however, include any separately stated sums collected and remitted for any retail sales tax or retail excise tax imposed by any duly constituted governmental authority, nor shall they include any exchange of goods or merchandise between the stores of Tenant where such exchange of goods or merchandise is made solely for the convenient operation of the business of Tenant and neither for the purpose of consummating a sale which has theretofore been made at, in, on, about or from the Premises nor for the purpose of depriving Landlord of the benefits of a sale which otherwise

 

182

 

would be made at, in, on, about, from or with respect to the Premises, nor the amount of any cash or credit refund made upon any sale where the merchandise sold, or some part thereof, is thereafter returned by the purchaser and accepted by Tenant, nor sales of fixtures which are not a part of Tenant’s stock in trade. Each sale upon installment, credit or layaway shall be treated as a sale for the full price in the month during which such sale shall be made, irrespective of the time when Tenant shall receive payments from its customers, and no deduction shall be allowed for uncollectible payment by customer or uncollected or uncollectible credit accounts.

 

5(E)(3) Records and Reporting of Gross Sales. Tenant shall utilize, and cause to be utilized, cash registers equipped with consecutive serialized tapes and/or such other devices for recording sales as are normally used in Tenant’s type of business to record all sales and Tenant shall keep for at least 36 months after expiration of each calendar year or part thereof during the Term, full, true and accurate books of account and records (“books”) conforming to generally accepted accounting principles showing all Gross Sales transacted at, in, from and upon the Premises for such calendar year or part thereof, including all tax reports, dated cash register tapes, sales slips, sales checks, sales books, bank deposit records and other supporting data. Such books shall be kept on the Premises during the Term. Within fifteen (15) days after the end of each calendar month or portion thereof included in the Term, Tenant shall furnish to Landlord a statement of Gross Sales transacted during such previous month or portion thereof; and on or before each February 1 included in the Term and within thirty (30) days after the end of the Term Tenant shall furnish to Landlord a statement (the “Annual Statement”) certified by an independent public accountant of Gross Sales itemized on a calendar month by calendar month basis transacted during the preceding calendar year or part thereof. In the event of Tenant’s failure to furnish any statement of Gross Sales required hereunder, in addition to all other remedies afforded it under this Lease, Landlord shall be entitled to have an accountant of Landlord’s selection conduct an audit of Tenant’s books for such period or periods for which Tenant has failed to furnish such statements. Such audit shall be at Tenant’s expense and Tenant shall promptly reimburse Landlord for the costs of such audit. All such costs shall be deemed additional charges. Notwithstanding the foregoing, Landlord shall have the right from time to time by its accountants or representatives to audit all statements of Gross Sales and in connection with such audits to examine all of Tenant’s books (including all supporting data and any other records from which Gross Sales may be tested or determined) of Gross Sales; and Tenant shall make all books readily available for such examination. Failure of Tenant to make all books readily available for such examination shall be deemed a default under this Lease; and in addition to all other remedies afforded it under this Lease, Tenant shall promptly reimburse Landlord for the costs of such audit. All such costs shall be deemed additional charges. If any such audit discloses that the actual Gross Sales for any month transacted by Tenant exceed those reported by more than two percent, Tenant shall forthwith pay to Landlord the cost of such audit and examination together with any additional Percentage Rent payable to Landlord. Any information obtained by Landlord pursuant to the provisions of this Section shall be treated as confidential, except in any litigation or arbitration proceedings between the parties, and, except further, that Landlord may disclose such information to existing Lenders and to prospective buyers and lenders.

 

5 (E)(4) Payment. On or before the 15th day after the expiration of each full or partial calendar month included in the Term, Tenant shall pay all Percentage Rent due for such prior

 

183

 

month to Landlord without demand, provided that if such amount exceeds the Percentage Rent that would be payable with respect to such month if Percentage Rent were calculated on the basis of Gross Sales for all months elapsed in the then current calendar year, Tenant shall not be required to pay any amount on account of such month unless and until such amount shall later be payable as part of the annual adjustment. Upon receipt by Landlord of each Annual Statement of Gross Sales there shall be an adjustment between Landlord and Tenant to the end that Landlord shall receive the exact amount of Percentage Rent due hereunder. Any overpayments by Tenant hereunder shall be credited against the next payments due under this Section. Any underpayments by Tenant shall be immediately due and payable. With respect to the calendar year in which the Term ends, the adjustments shall be prorated for the portion of the calendar year included in the Term.

 

184

 

EXHIBIT I 

 

LOCAL LAW ADDENDUM

 

(Attached)

 

185

 

Lease Addendum (NJ)

 

This Lease Addendum (“Addendum”) is supplemental to and made a part of that certain Lease dated as of November     , 2010 (the “Lease”) by and between WE APP Lawnside LLC (“Landlord”) and Pathmark Stores, Inc. (“Tenant”). Capitalized terms used in this Addendum without definition shall have the meanings set forth in the Lease. This Addendum is to be construed as supplemental to, and part of, the Lease. In the event of any inconsistency between the Lease and this Addendum, the terms and provisions of this Addendum shall prevail.

 

Notwithstanding the terms and conditions contained in the Lease, and to the limited extent hereof, the parties agree as follows:

 

1. Construction Liens. In no event shall Landlord’s consent to Tenant performing any improvements, repairs, replacements or alterations in or to the Demised Premises whatsoever during the Term of the Lease constitute Landlord’s written authorization for Tenant or contractors engaged by Tenant to file a construction lien against Landlord’s interest in the Demised Premises.

 

186

 

EXHIBIT J 

 

Confidentiality Agreement

 

(Attached)

 

187

 

CONFIDENTIALITY AGREEMENT

 

THIS CONFIDENTIALITY AGREEMENT (this “Agreement”) is entered into as of , 2010 (the “Effective Date”) by and between [TENANT], a                    , having an address at                      (“Company”) and                      , a , having an address at                      (“Disclosee”).

 

In connection with Disclosee’s interest in obtaining information concerning the business of Company, Company is furnishing or has furnished Disclosee with certain written information concerning Company’s gross sales that is either non-public, confidential or proprietary in nature. This information furnished to Disclosee or its affiliates, agents, representatives or employees (“Representatives”), together with analyses, compilations, forecasts, studies or other documents prepared by Disclosee or its Representatives that contain or otherwise reflect such information is hereinafter referred to as the “Information.” In consideration of Company furnishing Disclosee with the Information, Disclosee agrees that:

 

1.             The Information is Company’s property and will be kept confidential and shall not, without Company’s prior written consent, be disclosed by Disclosee or Representatives in any manner whatsoever, in whole or in part, and shall not be used by Disclosee or its Representatives in any manner to compete with the business of Company. Moreover, Disclosee may reveal the Information only to its Representatives who need to know the Information, are informed by Disclosee of the confidential nature of the Information and who shall agree to act in accordance with the terms and conditions of this Agreement. Disclosee shall be responsible for any breach of this Agreement by its Representatives.

 

2.             The term Information shall not include such portions of the Information which (i) are or become generally available to the public other than as a result of a disclosure by Disclosee or its Representatives, or (ii) become available to Disclosee on a non-confidential basis from a source (other than Company or its Representatives) that is not prohibited from disclosing such Information to Disclosee by a legal, contractual or fiduciary obligation to Company; or (iii) must be disclosed in order to comply with any applicable law, order, regulation or ruling; (iv) is already known to Disclosee or its Representatives or is already in its or their possession prior to disclosure by Company hereunder, or (v) is independently developed by Disclosee or its Representatives without reference to the Information.

 

3.             In the event that Disclosee or anyone to whom Disclosee transmits the Information pursuant to this Agreement becomes legally compelled to disclose any of the Information, Disclosee will provide Company with prompt notice so that Company may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Agreement. In the event that such protective order or other remedy is not obtained, or that Company waives compliance with the provisions of this Agreement, Disclosee will furnish only that portion of the Information that Disclosee is legally required and will exercise its best efforts to obtain reliable assurance that confidential treatment will be accorded the Information.

 

4.             Disclosee acknowledges that remedies at law may be inadequate or protect against breach of this Agreement, and Disclosee hereby in advance agrees that Company may seek injunctive relief without proof of actual damages. This Agreement shall be governed by and construed in

 

188

 

accordance with the laws of the State of New Jersey, without regard to conflict of law principles. The exclusive jurisdiction for any disputes concerning this Agreement shall be the Superior Court of New Jersey, Bergen County, and the parties hereby submit to such jurisdiction and waive all defenses relating to jurisdiction, venue and forum non convenience.

 

5.             Disclosee hereby defends, indemnifies and holds harmless Company and its Representatives and their respective successors and assigns against and from any loss, liability or expense, including attorney’s fees, arising out of any uncured breach by Disclosee or by its Representatives of any of the terms of this Agreement

 

6.             This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and all of which shall constitute the same Agreement. A facsimile, email, pdf or electronic signature shall be deemed an original signature.

 

[SIGNATURE PAGE FOLLOWS]

 

189

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date.

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
[TENANT], a
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
DISCLOSEE:
    
	
 
    	
 
    
	
 
    	
                              ,   a
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

190

 

EXHIBIT B-3

 

LEASE FORM FOR SEAFORD, NY

 

191

 

KEY NO:

 

 

LEASE

 

BY AND BETWEEN

 

WE APP SEAFORD LLC,
 LANDLORD

 

AND

 

PATHMARK STORES, INC.,
 TENANT

 

DEMISED PREMISES

 

AT

 

4055 MERRICK ROAD, SEAFORD, NEW YORK

 

192

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
EXHIBITS
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
DEMISED   PREMISES
    	
1
    
	
 
    	
 
    	
 
    
	
3.
    	
TERM
    	
2
    
	
 
    	
 
    	
 
    
	
4.
    	
RENEWAL   PERIODS
    	
2
    
	
 
    	
 
    	
 
    
	
5.
    	
RENT
    	
3
    
	
 
    	
 
    	
 
    
	
6.
    	
USE   AND OCCUPANCY
    	
5
    
	
 
    	
 
    	
 
    
	
7.
    	
TAXES
    	
7
    
	
 
    	
 
    	
 
    
	
8.
    	
SIGNAGE
    	
8
    
	
 
    	
 
    	
 
    
	
9.
    	
TRUE   LEASE
    	
8
    
	
 
    	
 
    	
 
    
	
10.
    	
REPAIRS
    	
9
    
	
 
    	
 
    	
 
    
	
11.
    	
INSURANCE
    	
9
    
	
 
    	
 
    	
 
    
	
12.
    	
REQUIREMENTS   OF LAW AND FIRE INSURANCE
    	
10
    
	
 
    	
 
    	
 
    
	
13.
    	
ALTERATIONS
    	
10
    
	
 
    	
 
    	
 
    
	
14.
    	
ACCESS   TO DEMISED PREMISES
    	
11
    
	
 
    	
 
    	
 
    
	
15.
    	
UTILITIES
    	
11
    
	
 
    	
 
    	
 
    
	
16.
    	
SUBORDINATION,   NON DISTURBANCE AND ATTORNMENT
    	
11
    
	
 
    	
 
    	
 
    
	
17.
    	
TRADE   FIXTURES
    	
12
    
	
 
    	
 
    	
 
    
	
18.
    	
ASSIGNMENT
    	
13
    
	
 
    	
 
    	
 
    
	
19.
    	
TITLE   AND AUTHORITY
    	
14
    
	
 
    	
 
    	
 
    
	
20.
    	
QUIET   ENJOYMENT
    	
15
    
	
 
    	
 
    	
 
    
	
21.
    	
UNAVOIDABLE   DELAYS
    	
15
    
	
 
    	
 
    	
 
    
	
22.
    	
END   OF TERM
    	
15
    
	
 
    	
 
    	
 
    
	
23.
    	
LANDLORD’S   DEFAULT
    	
16
    
	
 
    	
 
    	
 
    
	
24.
    	
ADDITIONAL   CHARGES
    	
16
    
	
 
    	
 
    	
 
    
	
25.
    	
TENANT’S   DEFAULT
    	
16
    
	
 
    	
 
    	
 
    
	
26.
    	
DESTRUCTION
    	
19
    
	
 
    	
 
    	
 
    
	
27.
    	
EMINENT   DOMAIN
    	
20
    
	
 
    	
 
    	
 
    
	
28.
    	
THIRD   PARTY LITIGATION
    	
21
    
	
 
    	
 
    	
 
    
	
29.
    	
WAIVER   OF DISTRAINT
    	
21
    
	
 
    	
 
    	
 
    
	
30.
    	
ESTOPPEL   CERTIFICATES
    	
21
    
	
 
    	
 
    	
 
    
	
31.
    	
NOTICES
    	
21
    

 

193

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
32.
    	
BROKER
    	
22
    
	
 
    	
 
    	
 
    
	
33.
    	
LIENS
    	
22
    
	
 
    	
 
    	
 
    
	
34.
    	
DEFINITION   OF LANDLORD
    	
22
    
	
 
    	
 
    	
 
    
	
35.
    	
ADJOINING   OR ADJACENT PROPERTY
    	
22
    
	
 
    	
 
    	
 
    
	
36.
    	
ENVIRONMENTAL   LAWS
    	
23
    
	
 
    	
 
    	
 
    
	
37.
    	
LEASEHOLD   MORTGAGE
    	
24
    
	
 
    	
 
    	
 
    
	
38.
    	
INDEMNITY
    	
26
    
	
 
    	
 
    	
 
    
	
39.
    	
LIMITATION   OF LANDLORD’S LIABILITY
    	
26
    
	
 
    	
 
    	
 
    
	
40.
    	
BOOKS   AND RECORDS
    	
27
    
	
 
    	
 
    	
 
    
	
41.
    	
SATELLITE   DISH
    	
27
    
	
 
    	
 
    	
 
    
	
42.
    	
NO   PRESUMPTION AGAINST DRAFTER
    	
27
    
	
 
    	
 
    	
 
    
	
43.
    	
SUCCESSORS   AND ASSIGNS; AFFILIATES
    	
27
    
	
 
    	
 
    	
 
    
	
44.
    	
CAPTIONS
    	
27
    
	
 
    	
 
    	
 
    
	
45.
    	
INVALIDITY   OF CERTAIN PROVISIONS
    	
27
    
	
 
    	
 
    	
 
    
	
46.
    	
CHOICE   OF LAW/JURISDICTION
    	
28
    
	
 
    	
 
    	
 
    
	
47.
    	
NO   WAIVER
    	
28
    
	
 
    	
 
    	
 
    
	
48.
    	
ATTORNEY’S   FEES
    	
28
    
	
 
    	
 
    	
 
    
	
49.
    	
WAIVER   OF TRIAL BY JURY
    	
28
    
	
 
    	
 
    	
 
    
	
50.
    	
MISCELLANEOUS
    	
28
    
	
 
    	
 
    	
 
    
	
51.
    	
COUNTERPARTS
    	
29
    
	
 
    	
 
    	
 
    
	
52.
    	
INCORPORATION   OF STATE LAW PROVISIONS
    	
29
    

 

194

 

LEASE

 

THIS LEASE (this “Lease”), made as of November           2010 (the “Effective Date”), by and between WE APP SEAFORD LLC, a Delaware limited liability company with an office c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 Attn: Adam Winstanley (hereinafter called “Landlord”), and PATHMARK STORES, INC., a Delaware corporation, having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”). This Lease is guaranteed by The Great Atlantic & Pacific Tea Company, Inc., a Maryland corporation (“Guarantor”) pursuant to a guaranty of even date herewith (as the same may be amended, supplemented or modified from time to time, the “Guaranty”).

 

WITNESSETH:

 

Landlord and Tenant covenant and agree as follows:

 

1.                  EXHIBITS. The following Exhibits are annexed hereto and made a part hereof:

 

A.             Exhibit A, Site Plan of the Demised Premises;

 

B.              Exhibit B1, Legal Description of the Land;

 

C.              Exhibit B2, Existing Encumbrances on Land

 

D.              Exhibit C, Remedial Work

 

E.              Exhibit D, Form of Subordination, Non-Disturbance and Attornment Agreement;

 

F.              Exhibit E, Memorandum of Lease;

 

G.              Exhibit F, Form of Guaranty;

 

H.              Exhibit G, Insurance Requirements;

 

I.               Exhibit H, Percentage Rent;

 

J.               Exhibit I, Local Law Addendum; and

 

K.              Exhibit J, Confidentiality Agreement.

 

2.           DEMISED PREMISES.

 

A. Landlord hereby leases to Tenant and Tenant hereby takes from Landlord that certain parcel of land (hereinafter called “Land”) commonly known as 4055 Merrick Road, Seaford, New York and more particularly described on Exhibit B1 and the buildings and other improvements now or hereafter erected on the Land together with the benefit of and subject to any and all easements, appurtenances, rights and privileges and other matters of record now or hereafter arising including those described in Exhibit B2. The land is currently improved by an

 

195

 

existing building consisting of approximately 41,030 square feet of space (the “Building”), as more particularly shown on the Site Plan attached hereto as Exhibit A. The Building and any other buildings and improvements now or hereafter erected on the Land shall be hereinafter called “Improvements.” The Land and any Improvements are hereinafter collectively called the “Demised Premises.”

 

B. Tenant or its Affiliates owned or leased the Demised Premises prior to their being purchased by Landlord. Landlord shall have no obligation or risk whatsoever with respect to the condition of the Demised Premises, Tenant taking the Demised Premises “AS IS, WHERE IS, WITH ALL FAULTS”. Tenant acknowledges that it has had full opportunity to inspect the Demised Premises with engineering and other consultants of its choice. Tenant’s commencing possession under this Lease shall be deemed an acknowledgment that the condition of the Demised Premises is satisfactory. Tenant further acknowledges that neither Landlord nor any person acting under Landlord has made or implied any representations or warranties whatsoever concerning the Demised Premises, their condition or this Lease except as set forth in Section 19.

 

3.           TERM.

 

A.             The term of this Lease (“Term”) shall commence (the “Commencement Date”) on the Effective Date and shall continue to and include the date (the “Expiration Date”) that is twenty (20) years after the day before the Commencement Date if the Commencement Date is the first day of a month, or twenty (20) years after the last day of the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month.

 

B.              The term “Lease Year” shall mean the following: the first Lease Year shall be the 12 month period commencing on the Commencement Date if the Commencement Date is the first day of a month, or on the first day of the month immediately following the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month; and each succeeding 12 month period thereafter shall be a Lease Year.

 

4. RENEWAL PERIODS. Tenant shall have the right and option to extend the Term of this Lease from the date upon which it would otherwise expire for ten (10) separate consecutive renewal periods of five (5) years each (each such period being hereinafter called a “Renewal Period”) upon the same terms and conditions as are herein set forth except the rent for such Renewal Period shall be as provided in Section 5 below; provided, however, that at the time of so electing to extend and also at the time any Renewal Period commences Tenant is not in default beyond any applicable notice and cure period, and this Lease is then in full force and effect. If Tenant fails timely so to exercise its option for any Renewal Period, time being of the essence, Tenant shall have no further extension rights hereunder. All references to the Term shall mean the Initial Term as it may be extended by any Renewal Period. If Tenant elects to exercise any one or more of said options to renew, it shall do so by giving written notice (“Renewal Notice”) of such election to Landlord at any time during the term of this Lease (including any Renewal Periods) on or before the date which is three hundred sixty five (365) days before the beginning of the Renewal Period or Renewal Periods for which the term hereof is to be renewed by the exercise of such option or options. If Tenant elects to exercise any one or more of said options to renew by serving a Renewal Notice in accordance with the foregoing, the

 

196

 

Term of this Lease shall be automatically extended for the Renewal Period(s) covered by the Renewal Notice without execution of an extension or renewal lease. If Tenant shall not have given notice of such election to Landlord by such date in respect of any Renewal Period, Landlord shall (unless notice shall have been given as hereinafter specifically permitted) give notice to Tenant that Tenant has failed to give notice of such election to Landlord (hereinafter called the “Option Notice”). Tenant’s time to give notice of such election shall continue until the date which is sixty (60) days after receipt of the Option Notice. Landlord shall not give the Option Notice prior to the date which is four hundred twenty-five (425) days before the Expiration Date. If Landlord shall not have given the Option Notice prior to the date which is four hundred twenty-five (425) days before the beginning of the next succeeding Renewal Period, the term of this Lease shall be extended beyond the Expiration Date to the date which is four hundred twenty-five (425) days after the date on which the Option Notice is given by Landlord.

 

5.               RENT.

 

A. Beginning on the Commencement Date and continuing throughout the Term, Tenant covenants and agrees to pay Landlord for the Demised Premises, without previous demand therefor, fixed annual rent (“Fixed Annual Rent”) as follows:

 

	
Lease Year
    	
 
    	
Fixed Annual Rent
    	
 
    	
Fixed Monthly Rent
    	
 
    
	
1-5
    	
 
    	
$
    	
1,641,000.00
    	
 
    	
$
    	
136,750.00
    	
 
    
	
6-10
    	
 
    	
$
    	
1,723,050.00
    	
 
    	
$
    	
143,587.50
    	
 
    
	
11-15
    	
 
    	
$
    	
1,809,202.50
    	
 
    	
$
    	
150,766.88
    	
 
    
	
16-20
    	
 
    	
$
    	
1,899,662.63
    	
 
    	
$
    	
158,305.22
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
First Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
21-25
    	
 
    	
$
    	
1,994,645.76
    	
 
    	
$
    	
166,220.48
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Second Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
26-30
    	
 
    	
$
    	
2,094,378.04
    	
 
    	
$
    	
174,531.50
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Third Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
31-35
    	
 
    	
$
    	
2,199,096.95
    	
 
    	
$
    	
183,258.08
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fourth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
36-40
    	
 
    	
$
    	
2,309,051.79
    	
 
    	
$
    	
192,420.98
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
41-45
    	
 
    	
$
    	
2,424,504.38
    	
 
    	
$
    	
202,042.03
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
46-50
    	
 
    	
$
    	
2,545,729.60
    	
 
    	
$
    	
212,144.13
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Seventh Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
51-55
    	
 
    	
$
    	
2,673,016.08
    	
 
    	
$
    	
222,751.34
    	
 
    

 

197

 

	
Eighth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
56-60
    	
 
    	
$
    	
2,806,666.89
    	
 
    	
$
    	
233,888.91
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ninth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
61-65
    	
 
    	
$
    	
2,947,000.23
    	
 
    	
$
    	
245,583.35
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tenth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
66-70
    	
 
    	
$
    	
3,094,350.24
    	
 
    	
$
    	
257,862.52
    	
 
    

 

B.              All Fixed Annual Rent shall be payable by Tenant in equal monthly installments in advance on the first day of every calendar month during the Term of this Lease (and any Renewal Periods), and shall be payable at the office of the Landlord first above set forth or at such other address as Landlord shall have given in a notice to Tenant) in current U.S. currency by check drawn on a clearinghouse bank and payable directly to Landlord (or, if requested by Landlord from time to time by electronic fund transfer, to an account designated by Landlord). Rent for a part of a month shall be prorated on a daily basis and paid on the Commencement Date. Further, the rent for the first full month shall be paid on the Commencement Date.

 

C.              Beginning on the Commencement Date and continuing throughout the Term, Tenant covenants and agrees to pay, without previous demand therefor, all sums other than Fixed Annual Rent due under or required to be paid by this Lease (all of the foregoing being “Additional Rent” regardless of however defined or described in this Lease).

 

D. It is the intention of the parties hereto that the Fixed Annual Rent payable hereunder shall be net to Landlord free of cost, charge, offset, diminution or other deduction, so that this Lease shall yield to Landlord the net Fixed Annual Rent specified herein during the Term of this Lease. Notwithstanding applicable law to the contrary and with the sole exception of those costs, expenses and obligations expressly stated in this Lease to be the sole responsibility of Landlord (or the responsibility of third parties as provided in Section 36C), all costs, expenses and obligations of every kind and nature whatsoever relating to this Lease, the Demised Premises or imposed on Landlord under applicable law either now existing or hereafter enacted and whether or not within the contemplation of the parties on account of this Lease, the Demised Premises or Landlord’s interest in the Demised Premises are assumed and shall be paid by Tenant when and as due as Additional Rent. Without limiting the generality of the foregoing, Tenant shall at its sole expense (which expense shall be deemed Additional Rent hereunder) be responsible for payment of all Taxes, all electricity, telecommunication service, gas, water, sewer, telephone, refuse disposal, and other charges for utilities and services supplied to the Demised Premises, insurance costs, amounts due under any title encumbrance matter described in Exhibit B2, and all costs of cleaning, maintaining, repairing and replacing the Demised Premises or any portion thereof and of complying with all laws now existing or hereafter enacted including all Environmental Laws (defined below). Any cost, expense or obligation directly relating to the Demised Premises that is not expressly declared in this Lease to be that of Landlord shall be deemed to be an obligation of Tenant to be performed by Tenant at Tenant’s sole expense, and to the greatest extent permitted by law Tenant shall indemnify and defend Landlord against, and hold Landlord harmless from, the same, and Tenant’s liability for the payment and performance of such amounts and obligations that shall arise during the Term is

 

198

 

hereby expressly provided to survive the expiration of the Term or early termination of this Lease. Fixed Annual Rent, Additional Rent, and all other sums payable hereunder by Tenant, shall be paid without notice or demand, and without set off, counterclaim, recoupment, abatement, suspension, deduction, or defense (other than payment) whatsoever. Except as otherwise expressly set forth in this Lease with respect to certain events of casualty in Section 26 or condemnation in Section 27, Tenant shall in no event have any right to terminate this Lease, and any right so to terminate (or to abate, suspend, set off or otherwise deduct from Fixed Annual Rent or Additional Rent) under applicable law is hereby waived to the greatest extent permitted by law. It is the intention of the parties that the obligations of Tenant hereunder shall be separate and independent covenants and shall not be discharged or otherwise affected by any law or regulation now or hereafter applicable to the Demised Premises or any other restriction on Tenant’s use, and that Fixed Annual Rent, Additional Rent, and all other sums payable by Tenant hereunder shall continue to be payable in all events, and that the obligations of Tenant hereunder shall continue unaffected throughout the Term. Landlord, at its sole cost and expense, shall be responsible for the following: (i) payment of any amounts relating to Fee Mortgages or other encumbrances or liens created by Landlord, (ii) management fees, administrative costs, professional fees and any other costs incidental to its fee ownership of the Demised Premises; and (iii) and cost, expense, or liability resulting from the negligent or willful misconduct of Landlord, its employees or agents.

 

E. If any person (other than an Affiliate of the initial Guarantor (being The Great Atlantic & Pacific Tea Company, Inc.) or a successor by merger of acquisition) becomes an assignee of this Lease or sublets all or substantially all of the Demised Premises or otherwise becomes or is a Tenant under this Lease, such occurrence shall be a Percentage Rent Event and the provisions of Exhibit H shall immediately become applicable for the remainder of the Term.

 

6.               USE AND OCCUPANCY.

 

A. The Demised Premises may be used and occupied for the operation of a supermarket, drugstore, automated teller machine, bank, all other uses customary and incidental to a supermarket and, so long as the Minimum Credit Test (defined in Section 25D) is then met, all other lawful purpose or purposes. Notwithstanding anything to the contrary contained in this Lease, Tenant shall not be obligated to open, to conduct or to remain open for the conduct of any business in the Demised Premises but shall nevertheless pay Fixed Annual Rent and all Additional Rent when and as the same is due. At all times Tenant shall comply with all laws, ordinances and bylaws, regulations, codes, (including, without limitation, the Americans With Disabilities Act of 1990, or “ADA”) permits, orders and conditions of any special permits or other governmental approvals (“law” or “laws”) applicable from time to time to the Demised Premises or Tenant or both, foreseen or unforeseen, and whether or not the same interfere with Tenant’s occupancy. Tenant shall procure all approvals, licenses and permits, in each case promptly giving Landlord true and complete copies of the same and all applications therefor. Tenant shall never overload any of the Building systems, including the floors and mechanical, electrical and structural systems, and shall also keep the Demised Premises equipped with appropriate safety appliances and comply with all requirements of insurance and of insurance inspection or rating bureaus. Tenant shall not itself, nor shall Tenant permit or suffer persons acting under Tenant to, either with or without negligence, injure, overload, deface, damage or otherwise harm the Demised Premises or any part thereof or use the Demised Premises contrary

 

199

 

to any law or in a manner likely to create any nuisance. It is intended that Tenant bear the sole risk of all present or future laws affecting the Demised Premises, and Landlord shall not suffer any reduction in any rent on account of the enforcement of laws.

 

B.              Subject to Landlord’s consent, not to be unreasonably withheld, delayed or conditioned, Tenant shall have the right to enter into agreements with utility companies creating easements in favor of the utility companies as are required in order to service the Demised Premises. Also subject to Landlord’s consent, not to be unreasonably withheld, delayed or conditioned, Tenant may enter into reciprocal parking agreements and easements for ingress and egress as are required in order to service the Demised Premises and any adjoining or adjacent land designated by Tenant. Landlord covenants and agrees to execute any and all documents, instruments or certificates reasonably required in connection with such matters to which it has given its consent, and to take all other action, in order to effectuate the same, all at Tenant’s cost and expense. In no event, however, shall Landlord be required to consent to nor shall Tenant have the power to enter into any easement or reciprocal parking agreement (i) that is for a term in excess of the term of this Lease (as the same may be renewed or extended) except for utility and access easements that may be perpetual or otherwise extend beyond the term of this lease, or (ii) that diminishes the economic value of the Land. Landlord further covenants and agrees, upon request of tenant, to convey without compensation therefor, insubstantial perimeter portions of the Land for highway or roadway purposes, to the state in which the demised premises are situate or any other municipal or governmental body, provided, however, that any such conveyance shall not constitute a taking (as defined in section 28 below) nor constitute grounds for tenant to terminate this Lease. Notwithstanding anything to the contrary or otherwise set forth herein, any encumbrance on the Demised Premises shall be subject to any requirements imposed by any Fee Mortgage (provided that Landlord shall reasonably cooperate with Tenant, at no out of pocket cost to Landlord, in connection with obtaining any requisite consent from any Fee Mortgagee as defined below).

 

C.              The provisions of this paragraph shall only apply if and only if the Minimum Credit Test is not met. If Tenant either gives Landlord written notice of Tenant’s intention to discontinue permanently the operation of its business in the Demised Premises or any part of the Demised Premises or discontinues the operation of its business in the Demised Premises or any part of the Demised Premises for a period of one (1) year for any reason (other than Destruction or Taking that pursuant to the applicable provisions of this Lease entitles Tenant to terminate this Lease), then Landlord may terminate this Lease as to the Demised Premises, or if applicable, the part of the Demised Premises with respect to which Tenant has given notice of its intention to discontinue, or in which Tenant has discontinued, its operations, by thirty (30) days’ written notice to Tenant of Landlord’s election to terminate this Lease (or, if applicable, Landlord’s election to terminate this Lease as to the part of the Demised Premises with respect to which Tenant has given notice of its intention to discontinue, or in which Tenant has discontinued, its operations). Tenant may override Landlord’s election only once by, as applicable, resuming operations of its business in the Demised Premises within twenty-five (25) days after receipt of Landlord’s notice or by rescinding its notice of its intention to discontinue its business in writing to Landlord delivered within twenty-five (25) days after receipt of Landlord’s notice.

 

200

 

7.             TAXES.

 

A.              Tenant shall, during the term of this Lease, as Additional Rent, pay and discharge punctually, as and when the same shall become due and payable, all taxes, special and general assessments, water rents, rates and charges, sewer rents and other governmental impositions and charges of every kind and nature whatsoever, extraordinary as well as ordinary, including rent and/or occupancy taxes (hereinafter collectively referred to as “Taxes”), and each and every installment thereof that shall or may during the term of this Lease, become due and payable, or liens upon the Demised Premises or any part thereof, together with all interest and penalties thereon, under or by virtue of all present or future laws, ordinances, requirements, orders, directives, rules or regulations of the Federal, State, County, Town and City Governments and of all other governmental authorities whatsoever (all of which shall also be included in the term “Taxes” as heretofore defined).

 

B.              To the extent permitted by law, Tenant or its designees shall have the right to apply for the conversion of any assessment for local improvements assessed during the term of this Lease in order to cause the same to be payable in annual installments. Landlord agrees to permit the application for the foregoing conversion to be filed in Landlord’s name, if necessary, and shall execute any and all documents, instruments or certificates reasonably requested by Tenant to accomplish the foregoing.

 

C.              Tenant shall be deemed to have complied with the covenants of this Lease if payment of Taxes shall have been made either within any period allowed by law or by the applicable governmental authority during which payment is permitted without penalty so long as the Taxes shall never become subject to a tax sale on the Demised Premises or subject Landlord to any civil or criminal liability. Tenant shall produce and exhibit to Landlord satisfactory evidence of payment prior to the expiration of any such period.

 

D.              All Taxes shall be apportioned pro rata between Landlord and Tenant in accordance with the respective portions of such year during which the Term shall be in effect. Notwithstanding anything to the contrary contained herein, if the Term hereof terminates prior to the date which would have been the expiration thereof but for the earlier termination, then Tenant shall pay those Taxes which would have been paid by Tenant to and including the term expiration date and this obligation shall expressly survive such termination.

 

E. So long as the requirements of Paragraph C of this Section are complied with, Tenant or its designees shall have the right to contest or review all Taxes by legal proceedings, or in such other manner as it may deem suitable. Tenant or its designees shall inform Landlord of any such proceedings and conduct such proceedings promptly at its own cost and expense, and free of any expenses to Landlord, and if necessary, in the name of and with the cooperation of Landlord (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant). Landlord shall execute all documents, instruments or certificates reasonably necessary and correct to accomplish the foregoing. Notwithstanding anything to the contrary or otherwise set forth herein, any such contest shall be subject to compliance with all applicable provisions of any Fee Mortgage (provided that Landlord shall reasonably cooperate with Tenant, at no material out of pocket cost to Landlord, in connection with such compliance).

 

201

 

F.              Landlord covenants and agrees that any refunds or rebates on account of Taxes paid by Tenant pursuant to the provisions of this Lease shall belong to Tenant. Any refunds received by Landlord shall be deemed trust funds and as such are to be received by Landlord in trust and paid to Tenant forthwith. Landlord will, upon the request of Tenant, sign any receipts that may be necessary to secure the payment of any such refund or rebate, directly to Tenant and/or will pay over to Tenant such refund or rebate as received by Landlord. Landlord further covenants and agrees on request of Tenant at any time, and from time to time, but without cost to Landlord, to make application individually (if legally required) or to join in Tenant’s application (if legally required) for separate tax assessments for such portions of the Demised Premises as Tenant shall at any time, and from time to time, reasonably designate. Landlord hereby agrees, upon request of Tenant, to execute all documents, instruments or certificates as shall reasonably be required by Tenant (so long as the same impose no material obligations on Landlord or expose Landlord to any liability).

 

G.              Nothing herein or in this Lease otherwise contained shall require or be construed to require Tenant to pay any inheritance, estate, succession, transfer, gift, franchise, income or profit taxes, that are or may be imposed upon Landlord, its successors or assigns, whether arising out of Landlord’s ownership of the Demised Premises, this Lease or otherwise; provided, however, that if at any time hereafter there is levied any tax on Landlord in lieu of real estate taxes based solely upon the ownership of real property, by property owners, in general, within the tax jurisdiction within which the Demised Premises are located, then such tax shall be considered to be an item of Taxes but for purposes of computing the amount of such tax payable by Tenant, the Demised Premises shall be deemed to be the sole real property owned by Landlord.

 

H. In the event that any fee mortgagee (“Fee Mortgagee”) requires the escrow of Real Estate Taxes or insurance premiums, Tenant shall pay to such Fee Mortgagee in escrow, on the first day of each and every month during the term of this Lease, one twelfth (1/12) of all estimated charges for the ensuing twelve (12) month period as reasonably estimated by the Fee Mortgagee based on current bills for same. Tenant shall deposit at least ten (10) days prior to the first date on which any interest or penalty will accrue such additional amounts as may be necessary so that there shall at all times be sufficient funds in escrow to pay such charges.

 

8.              SIGNAGE. Tenant and any assignee or subtenant of Tenant shall have the right to install, maintain and replace in, on or in front of any Improvement or location on the Demised Premises or in any part thereof such signs and advertising matter as Tenant, and with Tenant’s consent, any such assignee or subtenant of Tenant may desire, provided that Tenant shall comply with any applicable requirements of governmental authorities having jurisdiction and shall obtain any necessary permits for such purposes. As used in this Section, the word “sign” shall be construed to include any placard, pylon, logo, light or other advertising symbol or object, irrespective or whether same be temporary or permanent. All signs shall be Tenant’s personal property and shall be maintained and removed by Tenant upon termination of this Lease at Tenant’s sole expense.

 

9.              TRUE LEASE. It is the intent of Landlord and Tenant and the parties agree that this Lease is a true lease and that this Lease does not represent a financing agreement. Each party shall reflect the transaction represented hereby in all applicable books, records, and reports

 

202

 

(including income tax filings) in a manner consistent with “true lease” treatment rather than “financing” treatment.

 

10.            REPAIRS. Tenant shall, at all times during the Term of this Lease, and at its own cost and expense, keep and maintain or cause to be kept and maintained in repair and good condition the Building and improvements at any time erected on the Demised Premises. Without limitation, Tenant shall perform the Remedial Work described in Exhibit C. Landlord shall not be required to furnish services or facilities or to make any improvements, repairs, replacements or alterations in or to the Demised Premises whatsoever during the Term of this Lease. Without limiting the generality of the foregoing, Tenant shall be responsible for the entire Demised Premises and shall manage, maintain, repair, replace, clean, secure, protect, defend and keep in compliance with all governmental requirements, now existing or hereafter enacted, the Demised Premises and all improvements and appurtenances and all utilities, facilities, installations and equipment used in connection therewith, including all walls, all floor coverings, glass, windows, doors, partitions, exterior and interior lighting, signage, elevators, electrical, plumbing, heating, ventilating, fire protection and life safety, security and other building systems, water and sewage systems and other fixtures or equipment serving the Demised Premises, keeping the Demised Premises and all improvements and appurtenances in at least as good condition as on the Commencement Date. Without limitation, Tenant shall provide all cleaning, painting, janitorial services, rubbish disposal, periodic exterior waterproofing treatments to the Building, window caulking, maintenance of all gas, water, electric and other utility lines from public ways to the Demised Premises, and shall repair, maintain and replace all landscaping, roads, parking areas, and walkways appurtenant to the Demised Premises, and shall provide all snowplowing services thereto. Tenant shall provide a copy of all current vendor contracts, if any, relating to the foregoing to Landlord at least annually and from time to time otherwise upon Landlord’s request.

 

11.            INSURANCE.

 

A.              Tenant shall maintain at its own cost and expense insurance policies insuring against loss by fire, lightning, the perils of extended coverage and malicious mischief covering the Demised Premises and the other Improvements in the Demised Premises and other perils as more fully described in Exhibit G.

 

B.              So long as Tenant performs its obligations in Paragraph A of this Section, Landlord hereby waives all rights of recovery against Tenant and any other occupant(s) of the Demised Premises and any of their agents and employees for damage or destruction to any and all of the Improvements, including without limitation, the Building, arising out of fire or other casualty whether or not caused by acts or negligence of the aforementioned persons. Tenant hereby waives all rights of recovery against Landlord, its agents and employees for damage or destruction to any and all of the Improvements, including without limitation, the Building and to Tenant’s trade fixtures, equipment and inventory arising out of fire or other casualty whether or not caused by the acts or negligence of Landlord, its agents or employees.

 

C.              Tenant shall maintain at its own cost and expense public liability and other insurance in accordance with the requirements of Exhibit G.

 

203

 

D.              Any insurance required to be provided by Tenant pursuant to this Lease may be provided by blanket insurance covering the Demised Premises and other locations of Tenant, provided such blanket insurance complies with all of the other requirements of this Lease with respect to the type of insurance covered by blanket policies. If Tenant elects to insure the Demised Premises under any blanket insurance policy, Tenant shall furnish to Landlord a certificate of insurance showing the Demised Premises as a location insured under any such blanket insurance policy to the extent of the limits required in Exhibit G. Tenant shall furnish to Landlord and any Fee Mortgagee as to which Tenant has received a notice containing such mortgagee’s name and address a duplicate original copy or certificate of the policies of insurance required to be carried by Tenant.

 

E.              Notwithstanding anything to the contrary contained herein, Tenant may carry any required insurance on trade fixtures and equipment described in Section 17 under a program of self-insurance or to carry insurance with deductibles in excess of part or all of the amounts of insurance required under Exhibit G hereunder.

 

F. If Tenant fails to perform any covenant in this Section and such failure continues for more than three (3) days after written notice, then, without limiting any of Landlord’s other rights and notwithstanding any other provision of this Lease concerning notice and cure of defaults, Landlord may but need not obtain such insurance, and Tenant shall pay the cost thereof upon demand as Additional Rent.

 

12.            REQUIREMENTS OF LAW AND FIRE INSURANCE. Tenant shall comply with and shall from time to time conform the Demised Premises to every applicable requirement of law, duly constituted authority, Board of Fire Underwriters having jurisdiction or of the carriers of all insurance on the Demised Premises (all of the foregoing being hereinafter called “Legal Requirements”). Tenant shall have the right upon giving notice to Landlord to contest any obligations imposed upon Tenant pursuant to the provisions of this Section and to defer compliance during the pendency of such contest, if the failure of Tenant to so comply will not subject Landlord to civil or criminal penalty or liability. Landlord shall cooperate with Tenant in such contest (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and shall execute any documents reasonably required in furtherance of such purpose. Tenant shall not apply for any change in zoning applicable to the Land or the Demised Premises without Landlord’s prior written consent, not to be unreasonably withheld, conditioned or delayed.

 

13.            ALTERATIONS. Tenant may at its own expense from time to time, during the term hereof, make such alterations, additions, improvements and changes, structural or otherwise (hereinafter called “Alterations”), in and to the Demised Premises which it may deem necessary or desirable, provided such Alterations shall not reduce the value of the Demised Premises. Tenant, in making any Alterations, shall use materials of equal or better quality than those used in the construction of the Demised Premises and comply with all Legal Requirements. Tenant shall obtain or cause to be obtained all building permits, licenses, temporary and permanent certificates of occupancy and other governmental approvals that may be required in connection with the making of Alterations. Landlord shall cooperate with Tenant in the obtaining thereof (so long as Landlord’s cooperation does not involve (a) incurring obligations or liability or material expense to Landlord unreimbursed by Tenant or (b) breach of any covenants binding on

 

204

 

Landlord or the Demised Premises, including, without limitation, any mortgage) and shall execute any documents required in furtherance of such purpose. Tenant may, but shall not be obligated to, remove any Alteration so long as such removal does not materially and adversely affect any heating, ventilating, mechanical, electrical, structural, roof or life safety elements of the Building and Tenant shall repair all damage that results from such removal and restore the Demised Premises to a functional condition (including the filling of all floor and wall holes, the removal of all disconnected wiring back to junction boxes and the replacement of all damaged ceiling tiles). Upon completion of any Alteration that is not Cosmetic Work, Tenant shall promptly deliver to Landlord plans showing such Alteration as built. “Cosmetic Work” shall mean painting, carpeting and wall coverings and the like and the addition or deletion of interior non structural partitions, provided such work does not materially and adversely affect any roof, structural, mechanical, electrical, utility, fire protection or life safety systems or other systems or equipment of the Building.

 

14.          ACCESS TO DEMISED PREMISES. Tenant shall permit Landlord to enter upon the Demised Premises at all reasonable times approved by Tenant to examine the Demised Premises, and during the six (6) month period preceding the Expiration Date, to exhibit the Demised Premises to prospective tenants, provided that Landlord shall not unreasonably interfere with the conduct of business therein.

 

15.          UTILITIES.

 

A.              Tenant shall arrange and pay for any and all utility services to the Demised Premises, including, without limitation, telecommunications, water, gas, electricity and fuel used by it in the Demised Premises. Tenant shall pay all sewer charges assessed by the municipal authority having jurisdiction. The failure or interruption of any utility services shall be at Tenant’s sole risk and Landlord shall not suffer any reduction in any rent on account thereof.

 

B.              Tenant shall have the sole right to apply for, claim and receive any rebate, reimbursement, credit, or payment from any utility company providing service to the Building resulting from Tenant’s installation of energy saving equipment in or on the Building.

 

16.          SUBORDINATION, NON DISTURBANCE AND ATTORNMENT. This Lease shall become subject and subordinate to the lien of any Fee Mortgagee of the entire fee interest of the Demised Premises, and any renewals, modifications or extensions thereof, provided that a Subordination, Non Disturbance and Attornment Agreement (“SNDA”) substantially in the form annexed hereto as Exhibit D (or a reasonably equivalent form that is reasonably acceptable to Tenant and the applicable Fee Mortgagee) is executed, acknowledged and delivered by such Fee Mortgagee to Tenant. If the Fee Mortgagee requires that this Lease have priority over such mortgage, Tenant shall, upon request of the Fee Mortgagee, execute, acknowledge and deliver to the Fee Mortgagee an agreement acknowledging such priority.

 

17.          TRADE FIXTURES.

 

A.              All trade fixtures and equipment whether owned by Tenant or leased by Tenant from a Lessor/Owner (hereinafter called the “Equipment Lessor”) installed in the

 

205

 

Demised Premises, regardless of the manner or mode of attachment, shall be and remain the property of Tenant or any such Equipment Lessor and may be removed by Tenant or any such Equipment Lessor at any time. In no event (including a default under this Lease) shall Landlord have any liens, rights or claims in Tenant’s or Equipment Lessor’s trade fixtures and equipment and Landlord agrees to execute and deliver to Tenant and Equipment Lessor, within ten (10) days after request therefor, any document reasonably required by Tenant or Equipment Lessor in order to evidence the foregoing, so long as the same is reasonably acceptable to Landlord and any Fee Mortgagee. Tenant shall promptly repair all damage to the Building caused by the removal of any such trade fixtures or equipment. Notwithstanding anything to the contrary in this Lease, the following shall not constitute trade fixtures or equipment for purposes of this Lease and neither Tenant nor any Equipment Lessor shall own or have any right to remove the same (and, without limiting the generality of the foregoing, the following shall not be subject to the provisions of this Paragraph A or Paragraph B of this Section 17): (i) the HVAC system, plumbing, alarm, electric, life safety and other building systems used to operate the Building or maintain the certificate of occupancy, and (ii) any “fixtures” as such term is defined in the applicable Uniform Commercial Code.

 

B.              In the event Tenant shall enter into any arrangement to finance all or any portion of its trade fixtures or equipment either before or after the installation thereof in the Demised Premises and whether such financing shall be in the form of a mortgage, financing agreement, equipment lease, equipment sale leaseback or otherwise and in the event the lessor or secured party thereunder shall provide written notice to Landlord that it requires a copy of any default sent by Landlord to Tenant under this Lease also to be sent to such person (hereinafter called the “Owner/Secured Party”), then Landlord upon receipt of such requirement shall simultaneously send a copy of any default notice to such Owner/Secured Party at the address furnished to Landlord; provided that Landlord’s failure to deliver any such copy to the Owner/Secured Party shall not affect Landlord’s exercise of any right or remedy under this Lease in any way whatsoever. The copy of any such default notice shall be sent to such Owner/Secured Party in the same manner as notices are required to be sent and in the same manner as such notice is being sent to Tenant hereunder. Landlord further agrees that any such Owner/Secured Party shall have the right, but not the obligation, to remedy or cure any default of Tenant under this Lease within the same period of time granted to Tenant to remedy or cure any such default under this Lease.

 

C.              All trade fixtures and other personal property (which term shall include without limitation food and inventory) of any person that is located on the Demised Premises shall be at the sole risk of Tenant. Landlord shall not be liable for any loss or damage to person or property resulting from any accident, theft, vandalism or other occurrence on the Demised Premises, including damage resulting from water, wind, ice, steam, explosion, fire, smoke, chemicals, the rising of water or leaking or bursting of pipes or sprinklers, defect, failure or any other cause.

 

18. ASSIGNMENT.

 

A. Subject to paragraph (B) of this Section, Tenant may sublet all or any part of the Demised Premises, or license the use of any portion thereof or assign this Lease, but Tenant and Guarantor shall nevertheless continue to remain liable hereunder. Any assignee of

 

206

 

the Lease and any sublessee or licensee of all or substantially all of the Demised Premises shall become jointly and severally liable to Landlord, and any such transferee shall upon Landlord’s request execute and deliver an instrument in confirmation thereof. In the case of any assignment of this Lease or any sublease or licensee of all or substantially all of the Demised Premises, Tenant shall promptly deliver to Landlord a true and complete copy of the transfer instruments. No transfer of all or any portion of the Demised Premises or Landlord’s consent thereto shall be deemed a waiver of the provisions of this Section, or a release of Tenant or any Guarantor.

 

B.              So long as the Minimum Credit Test is not met (however the following provisions of this paragraph B shall not apply at any time when the Minimum Credit Test is met), Tenant shall not assign this Lease or sublet or license all or substantially all of the Demised Premises to any transferee unless (x) such transferee (1) operates at least five (5) other grocery stores and (2) has Tangible Net Worth” (as defined in Section 25 below) of at least One Hundred Million Dollars ($100,000,000) or (y) if such transferee does not meet the requirements of (1) and (2) then such transferee must be approved by Landlord, such approval not to be unreasonably withheld, conditioned or delayed. If Tenant desires to so transfer this Lease to a person who does not meet the requirements of (1) and (2) in the preceding sentence, then Tenant shall give notice of such intended transfer to Landlord together with reasonable information on its grocery store business and its audited financial statements for the three most recent years showing the credit of the proposed transferee and the proposed terms of the transfer. Upon receiving such information Landlord shall have thirty (30) days to elect by written notice to Tenant to do one of the following (and any failure of Landlord to affirmatively elect one or the other shall be deemed to be an election by Landlord to consent to such transfer: (a) approve such transfer, (b) disapprove such transfer, or (c) terminate the Term of this Lease on any date which is no sooner than one-hundred twenty (120) days after such election notice and no later than one-hundred eighty (180) days after such election. If Landlord elects to terminate this Lease and thereafter within one-hundred twenty (120) days enters into a lease or other agreement with Tenant’s proposed transferee, any transfer payment that was to have been made to Tenant by such transferee as specifically disclosed in writing as such to Landlord in the proposed terms of the transfer furnished to Landlord as provided above shall be paid by Landlord to Tenant out of the first rent amounts received by Landlord from such transferee until the transfer payment is paid to Tenant in full. For purposes of the previous sentence, a “transfer payment” shall include proposed sublease income in excess of the rent under this Lease, and in such cases Landlord’s payment to Tenant shall be a liquidated amount equal to such excess rent at a discount rate of ten percent (10%).

 

C.              If Tenant assigns this Lease, Landlord, when giving notice to said assignee with respect to any default, shall also give a copy of such notice upon Tenant originally named herein or its successor of whom Landlord shall have been given written notice (being herein called “Original Tenant”), and no notice of default shall be effective as against a Tenant until a copy thereof is given to the Original Tenant. The Original Tenant shall have the same period after the giving of such notice to cure such default as is given to Tenant under this Lease. If this Lease terminates or this Lease and the Term hereof cease and expire because of a default of such assignee, Landlord shall promptly give the Original Tenant notice thereof. The Original Tenant shall have the option, to be exercised by notifying Landlord in writing within thirty (30) days after receipt by the Original Tenant of Landlord’s notice, to cure any default and become Tenant under a new lease for the remainder of the term of this Lease (including any Renewal Periods if

 

207

 

applicable) upon all of the same terms and conditions of this Lease as it may have been amended by agreement between Landlord and Original Tenant, provided, however, that at the time of making any such election Original Tenant cures all defaults under the Lease. In the event Original Tenant assigns this Lease and it shall thereafter be rejected in a bankruptcy or similar proceeding brought by or against such assignee, a new lease identical to this Lease shall be entered into between Landlord and Original Tenant, provided that Original Tenant cures any monetary defaults and any other defaults that are capable of being cured. Any new lease created under this Section shall commence on the date of termination or rejection of this Lease, as applicable. Notwithstanding the foregoing, if Landlord, in its sole discretion delivers to the Original Tenant and Guarantor a release as to all liability under this Lease as theretofore amended, the Original Tenant shall not have the foregoing option.

 

D. In the case of a sublease of all or substantially all of the Demised Premises for the remainder of the Term and so long as the Minimum Credit Test or the requirements of Section 1 8B are met, Landlord shall, within thirty (30) days following Tenant’s request, deliver to Tenant a recognition and attornment agreement following the form attached hereto as Exhibit  D and otherwise subject to Landlord’s reasonable approval, executed and acknowledged by Landlord, for the benefit of such subtenant; provided that such subtenant executes and delivers an instrument reasonably satisfactory to Landlord confirming that such subtenant is jointly and severally liable under this Lease. Further, Landlord shall, within ten (10) days after Tenant’s request, shall request its Fee Mortgagee to deliver to Tenant an SNDA for the benefit of any such subtenant (and Landlord shall reasonably cooperate with Tenant, at no out of pocket cost to Landlord, in connection with obtaining any requisite consent from any Fee Mortgagee).

 

19. TITLE AND AUTHORITY.

 

A.              Landlord warrants and represents that Landlord is the owner of the fee simple of the Demised Premises and that other than any mortgages held by Fee Mortgagees that have provided an SNDA to Tenant in accordance with this Lease or such other liens or encumbrances that do not interfere with Tenant’s use of the Demised Premises or liens or encumbrances arising on account of any act or omission by Tenant or persons acting under Tenant or on account of Tenant’s failure to perform its obligations under this Lease, or matters set forth in Exhibit B 1, Landlord shall not voluntarily impose any other lien or encumbrance on the Demised Premises.

 

B.              Landlord and Tenant each warrant and represent to the other that (a) each is duly organized, validly existing and in good standing under the laws of the jurisdiction in which such entity was organized; (b) each has the authority to own its property and to carry on its business as contemplated under this Lease; (c) each has duly executed and delivered this Lease; (d) the execution, delivery and performance by each of this Lease (i) are within its powers, (ii) have been duly authorized by all requisite action, (iii) will not violate any provision of law or any order of any court or agency of government, or any agreement or other instrument to which it is a party or by which it or any of its property is bound, (iv) will not render it insolvent or (v) will not result in the imposition of any lien or charge on any of its property, except by the provisions of this Lease; and (e) the Lease is a valid and binding obligation of each in accordance with its terms.

 

208

 

C. Landlord and Tenant have executed the Memorandum of Lease (hereinafter called the “Memorandum”) attached hereto as Exhibit E simultaneously with the execution of this Lease. Upon the expiration of the Term each agree to execute and deliver a recordable termination of the Memorandum, which covenant shall survive termination. Tenant irrevocably appoints Landlord its attorney in fact so to execute such termination of the Memorandum if Tenant fails to do so within ten (10) days of written request, which power is coupled with an interest and shall automatically be transferred to any successor or assign of Landlord’s interest in the Demised Premises.

 

20.            QUIET ENJOYMENT. Landlord covenants and agrees that provided no default remains uncured beyond any applicable notice and cure period, Tenant shall peaceably and quietly have, hold and enjoy the Demised Premises and all rights, easements, appurtenances and privileges belonging or in anyway appertaining thereto during the full term of this Lease and any extension thereof subject always to the terms of this Lease, provisions of law, and matters of record to which this Lease is or may become subordinate. This covenant is in lieu of any other so called quiet enjoyment covenant, whether express or implied.

 

21.            UNAVOIDABLE DELAYS. If either party shall be prevented or delayed from punctually performing any obligation or satisfying any condition under this Lease by any strike, lockout, labor dispute, inability to obtain labor or material, Act of God, governmental restriction, regulation or control, enemy or hostile governmental action, civil commotion, insurrection, sabotage, fire or other casualty or by any other event similar to the foregoing and beyond the control of such party, then the time to perform such obligation or to satisfy such condition shall be postponed by the period of time consumed by the delay. Time is of the essence for the performance of all monetary obligations under this Lease and the foregoing shall never apply to the performance of monetary obligations.

 

22. END OF TERM. Upon expiration or other termination of the term of this Lease, Tenant shall peaceably and quietly quit and surrender the Demised Premises and all Alterations in the good order and condition Tenant is required to maintain the same and remove all trade fixtures, equipment and other personal property whether or not bolted or otherwise attached and all of Tenant’s signs wherever located; and in all cases shall repair damage that results from such removal. Any fixtures and equipment that Tenant or Owner/Secured Party does not remove following the expiration or other termination of the Term of this Lease shall be deemed to be abandoned by Tenant, shall at once become the property of Landlord, and may be disposed of in such manner as Landlord shall see fit; and Tenant shall pay the cost of removal and disposal to Landlord within thirty (30) days after demand; provided, however, that if this Lease shall be terminated as the result of a default by Tenant, then trade fixtures and equipment shall not be deemed abandoned until sixty (60) days after notice of such termination is given to Owner/Secured Party. Tenant or Owner/Secured Party shall have the right at any time prior to the date such fixtures and equipment shall be deemed abandoned to remove the same from the Demised Premises. Should Tenant or anyone claiming by, through or under Tenant hold over in possession after the Expiration Date or earlier termination of this Lease, such holding over shall not be deemed to extend the Term or to renew this Lease, but without limiting Landlord’s other rights and remedies on account of such breach the tenancy thereafter shall continue as a tenancy at sufferance from month-to-month upon the terms and conditions herein contained, provided, however that rent shall be charged and paid at one hundred fifty percent (150%) of the Fixed

 

209

 

Annual Rent and Additional Rent in effect during the twelve (12) month period immediately preceding the Expiration Date or earlier termination.

 

23.          LANDLORD’S DEFAULT.

 

A.              Landlord shall be in default hereunder if its fails to comply with any of its express obligations set forth in this Lease within thirty (30) days following written notice and opportunity to cure; provided, however, Landlord will not be in default if said default could not reasonably be cured within such period of thirty (30) days, and Landlord promptly commences and thereafter proceeds with due diligence and in good faith to cure such default.

 

B.              In the event that a Fee Mortgagee shall have given written notice to Tenant that it is the holder of a mortgage covering the Demised Premises, and provided such notice includes the address to which notices to the Fee Mortgagee are to be sent, Tenant agrees that in the event it shall give written notice to Landlord to cure a default of Landlord as provided for in this Section, Tenant shall give a copy of said notice to the Fee Mortgagee. Tenant agrees that the Fee Mortgagee may cure or remedy such default within the time permitted to Landlord pursuant to this Section; provided that in addition the Fee Mortgagee shall be entitled to such further time as may be reasonably necessary for the Fee Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Fee Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion.

 

24. ADDITIONAL CHARGES. If Tenant shall be in default hereunder, Landlord, after thirty (30) days notice that Landlord intends to cure such default (but only ten (10) days notice if such default concerns any breach of Tenant’s insurance obligations under Section 11), shall have the right, but not the obligation, to cure such default and Tenant shall pay to Landlord, upon demand, as Additional Rent, the reasonable cost thereof. Other than such insurance defaults, Landlord shall not commence to cure any default of such a nature that it could not reasonably be cured within such period of thirty (30) days, if Tenant commences to cure same within said period, and thereafter proceeds with reasonable diligence and in good faith to cure such default.

 

25.          TENANT’S DEFAULT.

 

A. If Tenant fails to pay Fixed Annual Rent or Additional Rent when due and such default continues for ten (10) days after written notice; or if a default occurs on account of any asset sale, merger or consolidation on the part of Guarantor in violation of paragraph D of this Section; or if a petition is filed by Tenant (or Guarantor) for insolvency or for appointment of a receiver, trustee or assignee or for adjudication, reorganization or arrangement under any bankruptcy act or other applicable law or if any similar petition is filed against Tenant (or Guarantor) and such petition is not dismissed within sixty (60) days thereafter; or if Tenant fails to perform any other covenant or condition under this Lease, Landlord may give Tenant a written notice specifying the nature of the default of such other covenant or condition and if Tenant does not, within thirty (30) days after receipt of such written notice (but only three (3) days in the case of failure to perform Tenant’s insurance obligations under Section 11), cure such other default

 

210

 

or, if such default is of such a nature that it could not reasonably be cured within such period of thirty (30) days, and Tenant does not commence and proceed with reasonable diligence and in good faith to cure such default then, after the expiration of such thirty (30) day period (or longer period if such default cannot reasonably be cured within said thirty (30) day period), Landlord shall have the right, in addition to the rights set forth in the preceding sentence, to seek damages or an injunction as to such failure to perform, or after the expiration of such thirty (30) day period Landlord may, but only during the continuance of such default, send a notice to Tenant terminating this Lease and reenter the Demised Premises and dispossess Tenant and any other occupants thereof, remove their effects not previously removed by them, and hold the Demised Premises as if this Lease had not been made; and Tenant waives the service of any additional notice of intention to reenter or to institute legal proceedings to that end. If any payment of Fixed Annual Rent, Additional Rent, or other sum owing Landlord is not paid within five (5) days after the same is due, then in addition to all other remedies hereunder Tenant shall pay an administrative late charge to Landlord equal to five percent (5%) of the overdue amount in question, which late charge will be due upon demand as Additional Rent.

 

B. After a termination, dispossess or removal in accordance with this Section, (1) the Fixed Annual Rent and Additional Rent shall be paid up to the date of such dispossess or removal, (2) Landlord may re-let the Demised Premises or any part or parts thereof either in the name of Landlord or otherwise, for a term or terms which may, at the option of Landlord, be less than or exceed the period which would otherwise have constituted the balance of the term of this Lease, and (3) Tenant shall pay to Landlord, as liquidated damages, any deficiency between the Fixed Annual Rent and Additional Rent due hereunder and the amount, if any, of the rents actually collected by Landlord on account of the new lease or leases of the Demised Premises for each month of the period which would otherwise have constituted the balance of the term of this Lease (not including any Renewal Periods, the commencement of which shall not have occurred prior to such dispossess or removal). In computing such liquidated damages there shall be added to said deficiency the expenses which Landlord incurs in connection with re-letting the Demised Premises, including reasonable attorneys’ and brokerage fees, tenant inducements such as free rent, moving expense reimbursements, tenant improvement allowances, brokerage commissions, fees for legal services, and other expenses of preparing the Demised Premises for reletting (“Reletting Expenses”). Such Reletting Expenses shall be paid to Landlord within ten (10) days of demand and all other liquidated damages shall be paid by Tenant in monthly installments on the dates specified in this Lease for payment of Fixed Annual Rent and any suit brought to collect the amount of the deficiency for any month shall not prejudice in any way the rights of Landlord to collect the deficiency for any subsequent month by a similar proceeding. Landlord shall not be liable for failure to re-let the Demised Premises or, in the event that the Demised Premises are re-let, for failure to collect the rent under such re-letting, unless Landlord shall not have used its commercially reasonable efforts to re-let the Demised Premises for the reasonable rental value thereof and to collect the rent under such re-letting. Landlord shall use its commercially reasonable efforts to mitigate damages.

 

C. Landlord hereby expressly waives any and all rights granted by or under any present or future laws to reenter the Demised Premises, to dispossess Tenant or any other occupant thereof or to remove their effects not previously removed by them, or to terminate this Lease for any reason or in any manner other than as set forth in this Section 25. Tenant hereby expressly waives any and all rights granted by or under any present or future laws to remain in

 

211

 

possession, cure any defaults or redeem its leasehold for any reason or in any manner other than as set forth in this Section 25. The provisions of this Section 25 shall survive the early termination of the Term.

 

D.              Any sum due from Tenant under this Lease is not paid within five (5) days after the same is due, such amount shall bear interest from the date due at the rate of one and one-half (11/2%) percent for each month (or ratable portion thereof) the same remains unpaid. Nothing in this Lease shall limit the right of Landlord to prove and obtain in proceedings for bankruptcy or insolvency an amount equal to the maximum allowed by any statute or rule of law in effect at the time; and Tenant agrees that the fair value for occupancy of all or any part of the Demised Premises at all times shall never be less than the Fixed Annual Rent and all Additional Rent payable from time to time.

 

E.              The Guaranty given by Guarantor of this Lease is a material inducement to Landlord’s entering into this Lease. If at any time the Guarantor of this Lease shall sell all or a material portion of its assets or shall merge or consolidate with another entity and, in either case, if (1) Guarantor (including the resulting entity of any merger or consolidation) has a tangible net worth immediately after the transaction that is less than Guarantor’s tangible net worth immediately prior to the transaction, and (2) Guarantor’s tangible net worth immediately after the transaction is less than the Minimum Credit Test, then the transaction shall be a default under this Lease for which there is no cure period entitling Landlord to exercise all of the rights and remedies under this Section. If at any time the existing Guarantor desires to assign the Guaranty to another person and for such person to assume all of the obligations and liabilities under the Guaranty, and if the proposed successor Guarantor’s tangible net worth is greater than the Minimum Credit Test, Tenant may present evidence of such proposed successor Guarantor’s tangible net worth to Landlord in the form of financial statements for (A) the most recent fiscal year of the proposed successor Guarantor audited by a nationally recognized firm of certified public accountants and (B) the most recent fiscal quarters since such fiscal year certified to by Guarantor’s chief financial officer, together with a form of Guaranty identical in form to the form of Guaranty attached to this Lease as Exhibit F to be executed and delivered by the proposed successor Guarantor. Upon Landlord’s written approval of such financial statements as demonstrating a tangible net worth of the proposed successor Guarantor greater than the Minimum Credit Test (which approval will not be unreasonably withheld, conditioned or delayed) and upon the execution and delivery to Landlord of such form of Guaranty by the proposed successor Guarantor, the existing Tenant (if, but only if the Lease is being assigned to a successor Tenant) and Guarantor shall be released from all liability under the Lease and Guaranty and the successor Tenant and Guarantor shall become fully liable to Landlord under the Lease and Guaranty. Thereafter and as an obligation of the then successor Tenant under this Lease, such successor Guarantor shall annually and quarterly continue to provide such financial statements to Landlord demonstrating that it continues to meet the Minimum Credit Test for those provisions of this Lease requiring such as a condition of being relieved from certain Lease obligations otherwise applicable. As used in this Lease “Guarantor” means the Guarantor then fully liable under its Guaranty to Landlord. “Tangible net worth” means the net worth as shown on such financial statements prepared in accordance with generally accepted accounting principles consistently applied and disregarding any value attributable to good will or other intangible assets and amounts owed by shareholders, officers or Affiliates except to the extent such amounts owed by Affiliates would ordinarily and customarily be consolidated on Tenant’s

 

212

 

financial statements. “Minimum Credit Test” means a tangible net worth as shown on such fiscal year and fiscal quarter financial statements of at least Five Hundred Million Dollars ($500,000,000).

 

26. DESTRUCTION.

 

A.             In the event of any damage or destruction by fire, the elements, or casualty (hereinafter called “Destruction”) to all or any part of the Building or any other Improvements in the Demised Premises, Tenant shall commence promptly, and with due diligence continue to restore same to substantially the same condition as existed immediately preceding the Destruction, except as otherwise provided in paragraph B of this Section. If the Destruction is partial, Tenant shall complete the restoration within two hundred seventy (270) days after the Destructions, subject to Unavoidable Delays. If the Destruction is total, Tenant shall complete the restoration within eighteen (18) months following the Destruction, subject to Unavoidable Delays. In no event shall Fixed Annual Rent or any Additional Rent abate on account of any Destruction.

 

B.              If, as a result of any Destruction, fifty percent (50%) or more of the total floor area of the Building is damaged, destroyed or, in Tenant’s reasonable opinion rendered untenantable, during the last two (2) years of the Initial Term or during any Renewal Term (but this shall not apply at any other time), Tenant may elect to terminate this Lease by giving notice to Landlord of such election on or before the date that is ninety (90) days after the Destruction, stating the date of termination, which shall be not more than thirty (30) days after the date on which such notice of termination shall have been given, and (1) upon the date specified in such notice this Lease and the term hereof shall cease and expire and (2) any Fixed Annual Rent and Additional Rent shall be paid until such date of termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant. In the event that Tenant elects to terminate this Lease as a result of the Destruction referenced above, Tenant shall cause all insurance proceeds to be paid to Landlord including business interruption insurance proceeds.

 

C. Except in the case of paragraph B of this Section, Insurance proceeds shall be deposited with a bank or trust company acceptable to Landlord and Tenant and under the control of Landlord and Tenant, as trustees, or, if the Fee Mortgagee shall be a bank, trust company, insurance company or other entity engaged in mortgage lending then such proceeds shall be deposited with such Fee Mortgagee and shall be held and disbursed by it, as trustee, for restoration in accordance with customary construction lending practice and procedures. Any excess insurance proceeds shall be paid to Tenant at the conclusion of the restoration so long as Tenant is not then in default beyond any applicable cure period.

 

27. EMINENT DOMAIN.

 

A. In the event of an actual taking for any public or quasi-public use by any lawful power or authority by exercise of the right of condemnation or of eminent domain or by agreement between Landlord and those having the authority to exercise such right (hereinafter called “Taking”) of the entire Building, then (1) this Lease and the Term shall cease and expire as of the date of vesting of title or transfer of possession, whichever occurs earlier, as a result of

 

213

 

the Taking, and (2) any Fixed Annual Rent and Additional Rent shall be paid until such termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant.

 

B.              (1) In the event of a Taking of twenty (20%) or more of the Demised Premises, or in the event of a Taking resulting in a reduction of twenty (20%) percent or more of the parking spaces (unless Landlord provides adequate and sufficient additional contiguous parking areas in substitution therefor reasonably acceptable to Tenant), or in the event of a Taking resulting in a divided Building or parking area such that passage between the divided portions of the parking area is not possible, or in the event of permanent denial of reasonably adequate access to the Demised Premises or Building on account of a Taking which in Tenant’s reasonable judgment makes it economically unfeasible to operate Tenant’s business at the Demised Premises, then Tenant may elect to terminate this Lease by giving notice of termination to Landlord on or before the date which is ninety (90) days after receipt by Tenant of notice that the Taking in question. Said notice of termination shall state the date of termination, which date of termination shall be not more than thirty (30) days after the date on which such notice of termination is given to Landlord, and (a) upon the date specified in such notice of termination this Lease and the term hereof shall cease and expire, and (b) any Fixed Annual Rent and Additional Rent shall be paid until the date of termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant.

 

(2) If Tenant does not elect to terminate this Lease as aforesaid, then the award or payment for the Taking shall be used by Tenant for restoration as hereinafter set forth and Tenant shall promptly commence and with due diligence continue to restore the portion of the Demised Premises remaining after the Taking to substantially the same condition and tenantability as existed immediately preceding the Taking. Tenant shall complete the restoration within two hundred seventy (270) days after the Destruction, subject to Unavoidable Delays. Taking proceeds shall be paid, held and disbursed in the same manner as insurance proceeds under Section 26C and there shall be no abatement or reduction in Fixed Annual Rent or any Additional Rent. Any taking proceeds remaining after the restoration is complete shall be divided equally between Landlord and Tenant.

 

C.              If this Lease is terminated under any provision of this Section 27, so long as Tenant is not then in breach of this Lease beyond any applicable cure period, any specific damages that are expressly awarded to Tenant on account of its relocation expenses and specifically so designated shall belong to Tenant. Except as provided in the preceding sentence of this paragraph, Landlord reserves to itself, and Tenant releases and assigns to Landlord, all rights to damages accruing on account of any Taking or by reason of any act of any public authority for which damages are payable. Tenant agrees to execute such further instruments of assignment as may be reasonably requested by Landlord, and to turn over to Landlord any damages that may be recovered in any proceeding or otherwise; and Tenant irrevocably appoints Landlord as its attorney-in-fact with full power of substitution so to execute and deliver in Tenant’s name, place and stead all such further instruments if Tenant shall fail to do so after 10 days notice.

 

28.             THIRD PARTY LITIGATION. If Landlord, Landlord’s adviser or its mortgagees are made parties to any litigation commenced by or against Tenant by or against any

 

214

 

person claiming through Tenant with respect to the Demised Premises, Tenant agrees to indemnify Landlord in the manner provided in Section 38 and in addition pay, as Additional Rent, all costs of Landlord in connection with such litigation including reasonable counsel fees and litigation costs, except in the sole instance where Landlord or Tenant have legal claims in the litigation against one another or where Landlord has been adjudicated in any litigation to have acted with gross negligence or willful misconduct. Without limitation, the foregoing includes foreclosure or enforcement of any lien, attachment or mortgage on the Demised Premises resulting from the act or omission of Tenant, but shall not include any Fee Mortgage or other lien created by Landlord.

 

29.            WAIVER OF DISTRAINT. Landlord hereby expressly waives any and all rights granted by or under any present or future laws to levy or distrain for rent, in arrears, in advance or both, upon all goods, merchandise, equipment, trade fixtures, furniture and personal property of Tenant or any nominee of Tenant in the Demised Premises, delivered or to be delivered thereto.

 

30.            ESTOPPEL CERTIFICATES. Upon the request of either party, at any time and from time to time, Landlord and Tenant agree to execute and deliver to the other, within thirty (30) days after such request, a written instrument that may be relied upon by the requesting party, its potential purchasers, lenders, investors, subtenants and/or assignees (and any of their respective successors and assigns), duly executed, (a) certifying if such is the case that this Lease has not been modified and is in full force and effect or, if there has been a modification of this Lease, that this Lease is in full force and effect as modified, stating such modifications, (b) specifying the dates to which the Fixed Annual Rent and Additional Rent have been paid,

(c) stating whether or not, to the knowledge of the party executing such instrument, the other party hereto is in default and, if such party is in default, stating the nature of such default, (d) stating the Commencement Date and Expiration Date, (e) stating which options to renew the term have been exercised, if any; and (f) any other information that may reasonably requested by the requesting party and customarily addressed in an estoppel certificate.

 

31. NOTICES. Any notices, consents, approvals, submissions or demands (“Notices”) given under this Lease or pursuant to any law or governmental regulation, including, without limitation, those by Landlord to Tenant or by Tenant to Landlord shall be in writing. Unless otherwise required by law, governmental regulation or this Lease, any such Notice shall be deemed given if sent by registered or certified mail, return receipt requested, postage prepaid or by nationally recognized overnight delivery service (a) to Landlord, at the address of Landlord as hereinabove set forth and with like copy given to Daniel A. Taylor, Esq. or Primo Fontana, Esq., DLA Piper, 33 Arch Street 26th Floor, Boston MA 02110 and/or such other persons and addresses as Landlord may designate by notice to Tenant; or (b) to Tenant, then one copy shall be delivered to the attention of the General Counsel, another shall be delivered to the attention of the Senior Vice President of Real Estate, and another shall be delivered to the attention of the Senior Director of Properties and Administration, all at 2 Paragon Drive, Montvale, New Jersey 07645 or to such other addresses as Tenant may designate by notice to Landlord. Any such Notice shall be deemed given three (3) business days after being sent by registered or certified mail, return receipt requested, postage prepaid, and one business (1) day when sent by overnight delivery. A party’s attorney may give Notices on behalf of such party.

 

215

 

32.            BROKER. Each party represents and warrants to each other there is no broker, agent, finder or other person with whom it has dealt in connection with the negotiation, execution and delivery of this Lease other than those persons named in that certain Agreement of Sale and Leaseback dated as of November 2, 2010 entered into between Tenant and Landlord (or Affiliates of each) regarding a transaction that led to this Lease.

 

33.            LIENS. Tenant shall keep the Demised Premises (and Landlord’s interest therein) and Tenant’s leasehold (and Tenant’s interest therein) free of, and shall within thirty (30) days discharge, any attachment, lien, security interest or other encumbrance that arises as a result of any act or omission of Tenant or persons acting by, through or under Tenant. Without limitation, Tenant will not permit or suffer any mechanic’s or materialmen’s or other liens to stand against the Demised Premises for any labor or material furnished in connection with work of any character performed, any services provided or any other act, omission or obligation on the part or at the direction of Tenant or persons claiming by, through or under Tenant, and Landlord will not permit any such liens for work or material furnished the Landlord to stand against said premises (the foregoing shall not imply that Landlord has any responsibility to furnish any work or material). However, Landlord and Tenant shall respectively have the right to contest the validity or amount of any such lien, provided that the payment of such amount is bonded during the pendency of such contest, but upon the final determination of such contest the party responsible for such lien shall immediately pay any judgment rendered with all proper costs and charges (including reasonable attorneys’ fees) and shall have the lien released at its own expense. In lieu of bonding either party may obtain other security acceptable to the other party in such party’s sole discretion. Any contest hereunder shall be subject to all requirements set forth in any Fee Mortgage.

 

34.            DEFINITION OF LANDLORD. The term “Landlord” as used herein, means Landlord named herein and any subsequent owner of Landlord’s estate hereunder. Any owner of Landlord’s estate hereunder shall be relieved of all liability under this Lease after the date that it ceases to be the owner of Landlord’s estate (except for any liability arising prior to such date) and the party succeeding to Landlord’s estate shall assume all liability of Landlord arising from and after it becomes owner of Landlord’s estate. The foregoing shall be self-operative but Landlord and Tenant shall upon the request of either execute and deliver an instrument acknowledging the foregoing.

 

35.            ADJOINING OR ADJACENT PROPERTY. Landlord and Tenant shall each promptly forward to the other any notice or other written communication received by it from any owner of property adjoining or adjacent to the Demised Premises or from any municipal or other governmental authority in connection with any hearing or other administrative proceeding relating to the use of the Demised Premises or any adjoining or adjacent property. Tenant may, at its sole cost and expense, in its own name and/or in the name of Landlord, appear in any such proceeding. Landlord shall fully cooperate with Tenant (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and shall, without limitation, make such appearances and furnish such information as may be reasonably required by Tenant. Landlord agrees to execute any instruments reasonably requested by Tenant in connection with any such proceeding.

 

216

 

36. ENVIRONMENTAL LAWS.

 

A. “Environmental Laws” shall mean all federal, state or local laws, ordinances, rules, regulations, or policies, whether now or hereafter enacted, governing the use, clean-up, remediation storage, treatment, transportation, manufacture, refinement, handling, release, production or disposal of Hazardous Materials including, without limitation: (1) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, (42 U.S.C. Sections 9601, et. seq.) as amended by the Superfund Amendments and Reauthorization Act; (2) the Hazardous and Solid Waste Act amendments of 1984 Pub L 98-616 (42 U.S.C. Section 699); (3) the Hazardous Materials Transportation Act, (49 U.S.C. Section 1801, et. seq.); (4)the Resource Conservation and Recovery Act of 1976, (42 U.S.C. Sections 6901, et. seq.); or (5)the Toxic Substances Control Act, and any amendments thereto and any regulations adopted and publications promulgated pursuant thereto, or any other federal, state or local environmental laws, ordinances, rules, or regulations whether now or hereafter enacted. “Hazardous Materials” shall mean any hazardous wastes or hazardous substances as defined in any Environmental Law including, without limitation, any asbestos, PCB, toxic, noxious or radioactive substances, methane, volatile hydrocarbons, petroleum, petroleum by-products, industrial solvents or any other material or substance which could cause or constitute a health, safety or other environmental hazard to any person or property.

 

B. Tenant, at its sole cost and expense, shall until the Expiration Date of this Lease comply with all Environmental Laws and shall be responsible for all Hazardous Materials on or migrating from the Land and Demised Premises prior to, on and after the Commencement Date, it being acknowledged that Tenant or its Affiliate owned the Land and Demised Premises prior to the Commencement Date. Tenant shall provide Landlord with copies of any notices pertaining to any governmental proceedings or actions under any Environmental Law (including requests or demands for entry onto the Demised Premises and/or Land for purposes of inspection regarding the handling, disposal, clean-up or remediation of Hazardous Materials or claims, penalties, fines or assessments) within fifteen (15) days after receipt thereof. Landlord shall cooperate with Tenant (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and provide such documents, affidavits and information as may be reasonably necessary for Tenant to comply with all Environmental Laws.

 

C. If required by governmental authority or if Landlord has a reasonable basis to believe a release of Hazardous Materials may have occurred or a threat of release exists on or from the Land or Demised Premises or Hazardous Materials activities have taken place on the Land or Demised Premises that do not conform to Environmental Laws, then Landlord may, but need not, perform appropriate testing in a commercially reasonable manner and the reasonable costs thereof shall be reimbursed to Landlord by Tenant upon demand as Additional Rent. Tenant shall execute affidavits, representations and the like from time to time at Landlord’s request concerning Tenant’s actual knowledge and belief regarding the presence or absence of Hazardous Materials at the Land and Demised Premises. In all events, and without limitation, Tenant shall indemnify all Indemnitees, expressly including without limitation all Fee Mortgagees, in the manner elsewhere provided in this Lease with respect to Hazardous Materials on or migrating from the Land and Demised Premises prior to, on and after the Commencement Date (and for these purposes, the loss indemnified shall include without limitation any costs of

 

217

 

investigation or remediation, and any claim of personal injury or property damage to any person); provided, however, that such indemnity shall not include and Tenant shall not be responsible for Hazardous Materials migrating on to the Land from the land of third parties. The covenants of this Section shall survive the Term. Tenant shall from time to time upon Landlord’s request confirm all of the foregoing covenants directly to mortgagees.

 

37. LEASEHOLD MORTGAGE.

 

A.             Tenant, and its successors and assigns (including, without limitation, any subtenant of Tenant), may, from time to time and without Landlord’s prior written consent, mortgage all or any portion of its right, title and interest in and to this Lease under one leasehold mortgage at any one time, or two leasehold mortgages given as part of a single financing transaction, to an Institutional Lender (each, a “Leasehold Mortgage”), and assign any or all rights under this Lease and any subleases as collateral security for such Leasehold Mortgage; provided that all rights acquired under such Leasehold Mortgage shall be subject to all of the terms, covenants and conditions of this Lease, and to all rights and interests of Landlord, none of which terms, covenants or conditions is or shall be waived by Landlord by reason of the right given to so mortgage such interest in this Lease. In no event shall Tenant have any right to mortgage or encumber Landlord’s fee interest in the Demised Premises. The term “Leasehold Mortgage” shall include whatever security instruments that may be used in the locale of the Demised Premises, such as, without limitation, deeds of trust, security deeds and conditional deeds, as well as financing statements, assignment of leases and rents, security agreements and other documentation required pursuant to the Uniform Commercial Code. The term “Leasehold Mortgage” shall also include any instruments required in connection with a sale-leaseback transaction. An “Institutional Lender” is a bank, trust company, savings and loan association, pension fund, endowment fund, insurance company, other institutional pool of recognized status or a governmental authority empowered to make loans or issue bonds or any other recognized institution regularly engaged in the making of mortgage loans that has not less than $100,000,000 in assets. The holder of any Leasehold Mortgage shall be called a “Leasehold Mortgagee.”

 

B.              If Tenant and/or Tenant’s successors and assigns (including, but not limited to, any sublessee of Tenant) shall grant a Leasehold Mortgage, and if Tenant shall send to Landlord a true copy thereof, together with a notice specifying the name and address of the Leasehold Mortgagee (“Mortgage Notice”), Landlord agrees that as long as any such Leasehold Mortgage shall remain unsatisfied of record or until a notice of satisfaction is given by the Leasehold Mortgagee to Landlord, the following provisions shall apply:

 

(1)             There shall be no cancellation, surrender or modification of this Lease by joint action of Landlord and Tenant without the prior consent of the Leasehold Mortgagee;

 

(2)             Landlord shall, upon serving Tenant with any notice of default, simultaneously serve a copy of such notice upon the Leasehold Mortgagee. The Leasehold Mortgagee shall thereupon have the same period to remedy or cause to be remedied the defaults complained of, and Landlord shall accept such performance by or at the instigation of such Leasehold Mortgagee as if the same had been done by Tenant; provided that in the case of

 

218

 

defaults that cannot be cured by the payment of money in addition the Leasehold Mortgagee shall be entitled to such further time to remedy or cause to be remedied the defaults complained of as may be reasonably necessary for the Leasehold Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Leasehold Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion.. Nothing herein shall be construed as requiring a Leasehold Mortgagee to cure any default. Landlord’s failure to deliver any such copy to a Leasehold Mortgagee shall not affect the Landlord’s exercise of any right or remedy under the Lease in any way whatsoever;

 

(3)             If any default shall occur which, pursuant to any provision of this Lease, entitles Landlord to terminate this Lease, and if before the expiration of twenty (20) days from the date of the giving of notice of termination upon such Leasehold Mortgagee, such Leasehold Mortgagee shall have notified Landlord of its desire to nullify such notice and shall have paid to Landlord all Fixed Annual Rent and Additional Rent herein provided for which are then in default, and shall have complied (or caused compliance) with all of the other requirements of this Lease, if any are then in default, then, in such event, Landlord shall not be entitled to terminate this Lease and any notice of termination previously given shall be void and of no effect;

 

(4)             Notwithstanding anything in this Lease to the contrary, any sale of Tenant’s leasehold interest in any proceeding for the foreclosure of the Leasehold Mortgage, or the assignment or transfer of Tenant’s leasehold interest in lieu of the foreclosure of any Leasehold Mortgage, shall be deemed to be a permitted sale, transfer or assignment;

 

(5)             If not required to be held by the Fee Mortgagee, the proceeds from any insurance policies or arising from a Taking may be held by any institutional Leasehold Mortgagee and distributed pursuant to the provisions of this Lease;

 

(6)             The Leasehold Mortgagee may be added to the “Loss Payable Endorsement” of any and all insurance policies required to be carried by Tenant hereunder on the condition that the insurance proceeds are to be applied in the manner specified in this Lease and that the Leasehold Mortgage shall so agree; except that the Leasehold Mortgage may provide a manner for disposition of such proceeds as remain after full compliance with the restoration covenants of this Lease, if any, otherwise payable to Tenant (but not such proceeds, if any, payable to Landlord, any Fee Mortgagee or jointly to Landlord or Tenant) pursuant to the terms of this Lease; and

 

(7) Landlord shall provide Leasehold Mortgage with prompt notice of any legal proceeding or arbitration between Landlord and Tenant. Unless the Leasehold Mortgage provided otherwise, Leasehold Mortgagee shall have the right to intervene in any such proceeding and be made a party to such proceeding, and the parties hereby consent to such intervention. Landlord’s failure to deliver any such notice to a Leasehold Mortgagee shall not affect the Landlord’s exercise of any right or remedy under the Lease in any way whatsoever.

 

219

 

Tenant, in any Mortgage Notice served upon Landlord under this Section, may exclude any or more of the above provisions, and if so excluded, such provisions shall not be effective.

 

C. Landlord shall, upon request, execute, acknowledge and deliver to each Leasehold Mortgagee, an agreement prepared at the sole cost and expense of Tenant, in form reasonably satisfactory to such Leasehold Mortgagee and Landlord, between Landlord, Tenant and Leasehold Mortgagee, separately agreeing to all of the provisions of this Section.

 

38.            INDEMNITY. Except as otherwise expressly set forth in this Lease, Tenant shall assume exclusive control of the Demised Premises and all areas pertaining thereto including all appurtenances, improvements, utilities, water bodies, grounds, sidewalks, walkways, driveways and parking facilities, and Tenant shall bear the sole risk of all related tort liabilities. To the greatest extent permitted by applicable law, Tenant shall indemnify, save harmless and defend Landlord, Landlord’s adviser and mortgagees and their respective officers, directors, managers, members, partners, agents and employees, (“Indemnitees”) from all liability, claim, damage, cost or loss (including reasonable fees and litigation costs) arising in whole or in part out of, or in any manner connected with (i) any injury, loss, theft or damage to any person or property while on or about the Demised Premises, or (ii) any condition of the Demised Premises, or the possession and use thereof (including any failure to vacate at the end of the Term) or any activity permitted or suffered on the Demised Premises (including Hazardous Materials), or (iii) any breach of any covenant, representation or certification by Tenant or persons acting under Tenant, or (iv) any negligent act or omission anywhere by Tenant or persons acting under Tenant, in each case paying the same to Landlord on demand as Additional Rent, except to the extent such liability results from the negligence or willful misconduct of Landlord or the other Indemnitees. Without implying that other covenants do not survive, the covenants of this Section shall survive the Term. Tenant shall immediately respond and assume the investigation, defense and expense of all of the foregoing matters. Landlord or any Indemnitee, at its sole cost and expense, may join in such defense with counsel of its choice.

 

39.            LIMITATION OF LANDLORD’S LIABILITY. Notwithstanding anything contained to the contrary in this Lease, whether express or implied, it is agreed that Tenant will look only to Landlord’s fee interest in and to the Demised Premises for the collection of any judgment (or other judicial process) requiring the payment of money by Landlord in the event of a breach or default under this Lease by Landlord with respect to any claim whatsoever related to the Demised Premises, and no other property or assets of Landlord or of Landlord’s adviser or of any Fee Mortgagee or its or their managers, members, directors, officers, trustees, beneficiaries, shareholders, partners, joint venturers (disclosed or undisclosed) shall be subject to suit or to levy, execution or other enforcement procedures for the satisfaction of any such judgment (or other judicial process). No officer, director, manager, member, shareholder, trustee, beneficiary, partner, agent, attorney or employee of Landlord or of Landlord’s adviser or of any Fee Mortgagee shall ever be personally or individually liable; nor shall Landlord, Landlord’s adviser or any Fee Mortgagee or such persons ever be answerable or liable in any equitable judicial proceeding or order beyond the extent of their interest in the Demised Premises. In no event shall Landlord, Landlord’s adviser or any Fee Mortgagee or any such persons ever be liable to Tenant for indirect or consequential damages.

 

220

 

40.            BOOKS AND RECORDS. Tenant shall at all times keep and maintain full and correct records and books of account of the operations of the Demised Premises in accordance with generally accepted accounting principals consistently applied and shall accurately record and preserve the records of such operations in accordance with its customary records retention policy. Notwithstanding that there has been no Percentage Rent Event, Tenant shall report the gross sales from the Demised Premises to Landlord annually for each fiscal year of Tenant no later than thirty (30) days following the end of such fiscal year, such report to be certified by Tenant’s chief financial officer. Landlord shall keep such information confidential at all times in accordance with the terms of Exhibit J and may only release such information to Landlord’s constituent members, and so long as such persons execute and deliver to Tenant a Confidentiality Agreement with Tenant in the form attached hereto as Exhibit J (“Confidentiality Agreement”) whether or not Tenant signs such Confidentiality Agreement, also to its lenders and prospective lenders and to prospective purchasers of Landlord’s interest in the Demised Premises. Upon an Event of Default, Tenant shall permit Landlord, Landlord’s accountants and Fee Mortgagees reasonable access thereto, with the right to make copies and excerpts therefrom upon reasonable advance notice to Tenant.

 

41.            SATELLITE DISH. If permitted by applicable law, Tenant shall have the right to place on the roof or wall of the Demised Premises at Tenant’s sole cost and expense, a satellite dish (hereinafter called the “Dish”) for transmission of data (both receiving and sending) between Tenant’s various operations and its headquarters in accordance with all laws and governmental regulations.

 

42.            NO PRESUMPTION AGAINST DRAFTER. Landlord and Tenant agree and acknowledge that this Lease has been freely negotiated by Landlord and Tenant. In any event of any ambiguity, controversy, dispute or disagreement over the interpretation, validity or enforceability of this Lease or any of its covenants, terms or conditions, no inference, presumption or conclusion whatsoever shall be drawn against Tenant by virtue of Tenant’s having drafted this Lease.

 

43.            SUCCESSORS AND ASSIGNS; AFFILIATES. The covenants and agreements contained in this Lease shall bind and inure to the benefit of the successors and assigns of each party. As used in this Lease “Affiliate” (whether or not capitalized) shall mean, with respect to any person, any person controlled by, controlling, or under common control with such person; and “control” shall mean any direct ownership interest or right through the exercise of voting or approval rights or otherwise, to exercise decision-making authority generally.

 

44.            CAPTIONS. The captions preceding the Sections of this Lease are intended only as a matter of convenience and for reference and in no way define, limit or describe the scope of this Lease or the intent of any provision hereof.

 

45.            INVALIDITY OF CERTAIN PROVISIONS. If any provision of this Lease shall be invalid or unenforceable, the remainder of the provisions of this Lease shall not be affected thereby and each and every provision of this Lease shall be enforceable to the fullest extent permitted by law.

 

221

 

46.            CHOICE OF LAW/JURISDICTION. This Lease, and the rights and obligations of the parties hereto, shall be interpreted and construed in accordance with the laws where the Demised Premises are located (the “State”), without regard to the State’s internal conflict of law principles. Any disputes arising out of this Lease or between Landlord and Tenant shall be subject to the exclusive jurisdiction of the state courts of the State.

 

47.            NO WAIVER. The failure of either party to seek redress for violation of or to insist upon the strict performance of, any term, covenant or condition contained in this Lease shall not prevent a similar subsequent act from constituting a default under this Lease. Without limitation, no written consent by Landlord or Tenant to any act or omission that otherwise would be a default shall be construed to permit other similar acts or omissions. Neither party’s failure to seek redress for violation or to insist upon the strict performance of any covenant, nor the receipt by Landlord of rent with knowledge of any breach of covenant, shall be deemed a consent to or waiver of such breach. No breach of covenant shall be implied to have been waived unless such is in writing, signed by the party benefiting from such covenant and delivered to the other party; and no acceptance by Landlord of a lesser sum than the Fixed Annual Rent, Additional Rent or any other sum due shall be deemed to be other than on account of the installment of such rent or other sum due. Nor shall any endorsement or statement on any check or in any letter accompanying any check or payment be deemed an accord and satisfaction; and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such installment or pursue any other right or remedy. The delivery of keys (or any other act) to Landlord shall not operate as a termination of the Term or an acceptance or surrender of the Demised Premises. The acceptance by Landlord of any rent following the giving of any default and/or termination notice shall not be deemed a waiver of such notice.

 

48.            ATTORNEY’S FEES. In the event that either Landlord or Tenant employ an attorney to enforce or defend any of the conditions, covenants, rights or obligations of this Lease (including, without limitation, a default by either party), then the prevailing party shall be entitled to all reasonable attorney fees and all other reasonable out-of-pocket litigation costs (including, but not limited to filing fees, expert reports and testimony, court costs and other usual costs of litigation of this type) incurred by such prevailing party.

 

49.            WAIVER OF TRIAL BY JURY. To the extent such waiver is permitted by law, the parties waive trial by jury in any action or proceeding brought in connection with this Lease or the Demised Premises.

 

50. MISCELLANEOUS. Other than contemporaneous instruments executed and delivered of even date, if any, this Lease contains all of the agreements between Landlord and Tenant relating in any way to the Demised Premises and supersedes all prior agreements and dealings between them. There are no oral agreements between Landlord and Tenant relating to this Lease or the Demised Premises. This Lease may be amended only by a written instrument executed and delivered by both Landlord and Tenant. The provisions of this Lease shall bind Landlord and Tenant and their respective successors and assigns. Where the phrases “persons acting under” Landlord or Tenant or “persons claiming through” Landlord or Tenant or similar phrases are used, the persons included shall be assignees, sublessees, licensees or other transferees or successors of Landlord or Tenant as well as invitees or independent contractors of

 

222

 

Landlord or Tenant, and all of the respective employees, servants, contractors, agents and invitees of Landlord, Tenant and any of the foregoing. As used herein, “monetary default” shall mean a default that can be substantially cured solely by the payment of money and nothing more and “non-monetary default” shall mean a default that cannot be substantially cured solely by the payment of money and northing more. If either party is granted any extension, election or other option, to be effective the exercise (and notice thereof) shall be unconditional, irrevocable and must be made strictly in accordance with the prescribed terms and times; otherwise its purported exercise shall be void and ineffective. The enumeration of specific examples of a general provisions or use of the word “including” shall not be construed as a limitation of the general provision. Unless a party’s approval or consent is required by the express terms of this Lease not to be unreasonably withheld, such approval or consent may be withheld in the party’s sole discretion. The submission of a form of this Lease or any summary of its terms shall not constitute an offer by Landlord to Tenant; the leasehold shall only be created and the parties bound when this Lease is executed and delivered by both Landlord and Tenant. Nothing herein shall be construed as creating the relationship between Landlord and Tenant of principal and agent, or of partners or joint venturers or any relationship other than landlord and tenant. This Lease and all consents, notices, approvals and all other related documents may be reproduced by any party by any electronic means or by electronic, photographic or other reproduction process and the originals may be destroyed; and each party agrees that any reproductions shall be as admissible in evidence in any proceeding as the original itself (whether or not the original is in existence and whether or not reproduction was made in the regular course of business), and that any further reproduction of such reproduction shall likewise be admissible. If any payment in the nature of interest provided for in this Lease shall exceed the maximum interest permitted under controlling law, as established by final judgment of a court, then such interest shall instead be at the maximum permitted interest rate as established by such judgment. Landlord and Tenant expressly agree that there are and shall be no implied warranties of merchantability, habitability, suitability, fitness for a particular purpose or of any other kind arising out of this Lease, and there are no warranties or representations other than those expressly set forth in this Lease. Without limitation, where Tenant in this Lease indemnifies or covenants for the benefit of present and future Fee Mortgagees, such agreements are for the benefit of present and future Fee Mortgagees as third party beneficiaries; and at the request of Landlord, Tenant from time to time will confirm such matters directly with such Fee Mortgagee.

 

51.            COUNTERPARTS. This Lease may be executed in any number of counterparts, each of which shall be deemed to be one and the same instrument. A facsimile, email, PDF or electronic signature shall be deemed an original signature.

 

52.            INCORPORATION OF STATE LAW PROVISIONS. Certain provisions/ sections of this Lease and certain additional provisions/sections that are applicable or required by laws of the state in which the Demised Premises are located may be amended, described or otherwise set forth in more detail on Exhibit I attached hereto, which such Exhibit by this reference, is incorporated into and made a part of this Lease. In the event of any conflict between such state law provisions and any provision herein, the state law provisions shall control.

 

[SIGNATURE PAGE FOLLOWS]

 

223

 

	
 
    	
IN WITNESS WHEREOF this Lease has been duly   executed under as of the Effective Date.
    
	
 
    	
 
    
	
 
    	
 
    
	
WITNESS:
    	
 
    
	
 
    	
WE APP SEAFORD LLC, a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
WITNESS:
    	
 
    
	
 
    	
PATHMARK STORES, INC., a Delaware   corporation
    
	
 
    	
 
    	
 
    
	
Name:
    	
Craig   H. Feldman
    	
By:
    	
 
    
	
 
    	
Name:
    	
Christopher   W. McGarry
    
	
 
    	
Title: 
    	
Vice   President and Secretary
    
	
 
    	
 
    
						

 

Signature Page to Lease By and Between
 WE APP SEAFOOD LLC and PATHMARK STORES, INC

 

224

 

EXHIBIT A

 

SITE PLAN OF DEMISED PREMISES

 

 

225

 

EXHIBIT B1

 

LEGAL DESCRIPTION OF THE LAND

 

 

226

 

EXHIBIT B2 

 

TITLE MATTERS AND ENCUMBRANCES

 

1.                                       Taxes, tax liens, tax sales, water rates, sewer rents and assessments not yet due and payable.

 

2.                                  Reservations for Easements contained in a deed by Avis A. Bond and Ruth Pine to Shop-Rite of Watchung, Inc., dated 6/1/67 recorded 6/6/67 in Liber 7676 cp 191.

 

3. Agreement for Non-Exclusive easement of ingress and egress by and between Shop-Rite of Watchung, Inc. and Avis A. Bond and Ruth Pine dated as of 10/09/67 recorded 1/26/68 in Liber 7785 cp 277.

 

227

 

EXHIBIT C

 

REMEDIAL WORK

 

(Tenant Performs Construction with Landlord Reimbursement)

 

Reimbursement Cap: $425,000.00

 

Remedial Work Completion Date: the third anniversary of the Effective Date of the Lease

 

C. 1 Construction Documents. Tenant shall prepare, at Tenant’s expense, and deliver to Landlord Construction Documents (meaning plans and specifications prepared by design professionals licensed to prepare such plans and specifications which reasonably fix and describe the work to be performed by Tenant contractors) for roof replacements, parking area repairs and replacements, heating, ventilating and air conditioning upgrades, environmental remediation, asbestos abatement and automation improvements in an amount totaling at least the amount of the Reimbursement Cap, all as Landlord and Tenant shall reasonably and mutually agree. The Construction Documents shall substantially conform to and describe such work as so agreed, and when such Construction Documents are approved by Landlord, such approval not to be unreasonably withheld, conditioned or delayed, the work described therein shall be the “Remedial Work” referred to herein. Tenant shall provide at least 6 copies of the Construction Documents to Landlord. Tenant shall be solely responsible for the liabilities and expenses of all architectural and engineering services relating to the Remedial Work and for the adequacy and completeness of the Construction Documents submitted to Landlord and for the Remedial Work itself, notwithstanding Landlord’s approval thereof.

 

C.2 Remedial Work Reimbursement. Upon Landlord’s approval of the Construction Documents showing the Remedial Work to be performed, Tenant shall cause the Remedial Work to be performed in accordance with all of the terms and requirements of the Lease including Exhibit G, and the reasonable out-of-pocket costs to Tenant of performing the Remedial Work shall be eligible for Reimbursement in the manner provided below up to but not in excess of the Reimbursement Cap listed above. All costs for the Remedial Work in excess of the Reimbursement Cap shall be paid for entirely by Tenant, and Landlord shall not provide any reimbursement therefor. Any Remedial Work not completed by the Remedial Work Completion Date listed above shall be ineligible for reimbursement from Landlord, and such Remedial Work shall be paid for solely by Tenant.

 

Notwithstanding anything in the Lease to the contrary, prior to the Remedial Work Completion Date Tenant shall have no obligation to perform any Remedial Work if the cost of same will exceed the Reimbursement Cap, unless Tenant determines, in its sole, reasonable judgment, that such work is necessary and prudent for the proper maintenance and operation of the Demised Premises.

 

Reimbursement of the reasonable out-of-pocket costs to Tenant of performing Remedial Work up to the Reimbursement Cap and by the Remedial Work Completion Date shall be disbursed to Tenant by Landlord in no more than four disbursements the requests for each of which shall not

 

228

 

be submitted more frequently than monthly. For each disbursement, Tenant shall submit a requisition package to Landlord with (1) an itemization of the costs being requisitioned, (2) a certificate by an officer of Tenant that all such costs are reasonable out-of-pocket costs to Tenant of performing Remedial Work and have been incurred and paid for by Tenant, that to the actual knowledge of Tenant the Remedial Work included within the requisition has been performed substantially in accordance with the Construction Documents and in accordance with the Lease, (3) appropriate back-up documentation including, without limitation, lien releases (in a form reasonably approved by Landlord) and paid invoices and bills and (4) a statement by Tenant’s chief financial officer that such officer knows of no default under the Lease on the part of Tenant nor of any event which with the giving of notice or the passage of time or both could ripen into a default under the Lease. The final requisition package shall further include a copy of all applications for and copies of all governmental permits issued in connection with the Remedial Work and the plans referred to in Section 13 of the Lease for any Alterations. Notwithstanding anything herein or in the Lease to the contrary, Landlord shall not be obligated to reimburse any costs of Remedial Work if a default under the Lease has occurred and is continuing. Landlord shall pay the reimbursement to Tenant within thirty (30) days following Landlord’s receipt of the completed package. In the event that Landlord fails to pay the reimbursement within such thirty (30) day period, Tenant may deduct the reimbursebable amount against Rent due under the Lease.

 

C.3 Performance of Remedial Work by Tenant. No Remedial Work for which reimbursement is sought shall be performed except in accordance with the Construction Documents. In connection with its approval thereof, Landlord may delete from the Construction Documents any items or aspects of Remedial Work which in Landlord’s reasonable judgment (i) would increase the cost of operating the Building or performing any other work in the Building, (ii) are incompatible with the design, quality, equipment or systems of the Building, (iii) would require unusual expense to readapt the Premises to general grocery store use or (iv) otherwise do not comply with the provisions of this Lease. Prior to commencing any Remedial Work, Tenant shall submit to Landlord certificates of insurance on the part of Tenant contractors meeting the requirements of Exhibit G paragraph 1A (4). If any such Tenant contractor or any other person ever makes a claim against any Indemnitee (as such term is defined in Section 38) in connection with any Remedial Work, then Tenant shall indemnify such Indemnitee in the manner provided in the Lease against such claim.

 

C.4 Re-allocation of Reimbursement Cap. Upon the completion of the Remedial Work up to $20,000 of the Reimbursement Cap may be allocated to increase the “Reimbursement Cap” under any other lease between Tenant and any Affiliate of Landlord (except for that certain lease for space at 9210 Atlantic Avenue, Queens (Ozone Park), New York).

 

229

 

EXHIBIT D

 

FORM OF SUBORDINATION, NON-DISTURBANCE AND 
 ATTORNMENT AGREEMENT

 

KEY NO:

 

THIS AGREEMENT, made as of                              2010, by and among                              , a             , and its successors and assigns, having an office at                                           (hereinafter together with its successors and assigns called “Mortgagee”), WE APP Seaford LLC, a Delaware limited liability company, having an office c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 (hereinafter called “Landlord”) and Pathmark Stores, Inc., a Delaware corporation having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”).

 

W I T N E S S E T H:

 

WHEREAS, Mortgagee has made a loan, or is about to make a loan to Landlord in the original principal amount of $                         evidenced by a promissory Note secured by, among other securities, a mortgage or deed of trust (hereinafter, as the same may be amended, supplemented or otherwise modified from time to time, called the “Mortgage”) covering a parcel or parcels of land owned by Landlord and described on Exhibit A annexed hereto and made a part hereof, together with the improvements now or hereafter erected thereon (said parcel or parcels of land and improvements thereon being hereinafter called the “Mortgaged Property”);

 

WHEREAS, by a certain lease heretofore entered into between Landlord and Tenant dated as of November    2010 and amended by [ ] (said lease and amendments being hereinafter collectively called the “Lease”), Landlord leased to Tenant the Mortgaged Premises together with the building now or hereafter erected on all or a portion of said premises (the Mortgaged Premises and the improvements on or to be erected thereon being thereinafter called the “Demised Premises”);

 

WHEREAS, a Memorandum of Lease dated November     2010 was recorded on November     , 2010 in the                 in Book                       , Page                       ;

 

WHEREAS, a copy of the Lease has been delivered to Mortgagee, the receipt of which is hereby acknowledged; and

 

WHEREAS, Mortgagee is unwilling to make said loan to Landlord unless the Lease is subordinate to the lien of the Mortgage; and

 

WHEREAS, Section 16 of the Lease provides that the Lease shall become subject and subordinate to the lien of a mortgage of the fee interest of the Demised Premises if and when a non-disturbance agreement is entered into with respect to such mortgage; and

 

WHEREAS, the parties desire to subordinate the Lease to the lien of the Mortgage, and to provide for the non-disturbance of Tenant by Mortgagee.

 

230

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.               Mortgagee hereby consents to and approves the Lease.

 

2.               Tenant covenants and agrees with Mortgagee that the Lease and any extensions, renewals, replacements or modifications thereof and Tenant’s interest in the premises under the Lease are and at all times shall subject and subordinate to the lien of the Mortgage, without regard to the order of priority of recording of the Mortgage and the Memorandum of the Lease, subject, however, to the provisions of this Agreement.

 

3.               Tenant certifies that the Lease is presently in full force and effect.

 

4.               Mortgagee agrees that so long as the Lease shall be in full force and effect and so long as Tenant is not in default (beyond any applicable notice and cure period) in the payment of fixed rent as set forth in the Lease, or in the performance of any of the terms, covenants or conditions of the Lease on Tenant’s part to be performed:

 

A.             Tenant shall not be named or joined as a party defendant or otherwise in any suit, action or proceeding for the foreclosure of the Mortgage or to enforce any rights under the Mortgage or the bond or note or other obligations secured thereby unless required by law to do so; and

 

B.              The possession by Tenant of the Demised Premises and the Tenant’s rights thereto shall not be disturbed, affected or impaired by, nor will the Lease or the term thereof be terminated or otherwise affected by (i) any suit, action or proceeding upon the Mortgage or the bond or note or other obligation secured thereby, or for the foreclosure of the Mortgage or the enforcement of any rights under the Mortgage or any other documents held by the Mortgagee, or by any judicial sale or execution or other sale of the Mortgaged Property, or by any deed given in lieu of foreclosure, or by the exercise of any other rights given to the Mortgagee by any other documents or as a matter of law, or (ii) any default under the Mortgage or the bond or note or other obligation secured thereby.

 

5.               Mortgagee hereby acknowledges and agrees that all trade fixtures and equipment whether owned by Tenant or any subtenant or leased by Tenant from a Landlord/Owner in the Demised Premises shall be subject to the provisions of Section 17 of the Lease.

 

6.               If the Mortgagee shall become the owner of the Mortgaged Property by reason of foreclosure of the Mortgage or otherwise, or if the Mortgaged Property shall be sold as a result of any action or proceeding to foreclose the Mortgage or by a deed given in lieu of foreclosure, the Lease shall continue in full force and effect, without necessity for executing any new lease, as a direct lease between Tenant, as tenant thereunder, and the then owner of the Mortgaged Property, as landlord thereunder, upon all of the same terms, covenants and provisions contained in the Lease, and in such event:

 

231

 

A.             Tenant shall be bound to such new owner under all of the terms, covenants and provisions of the Lease for the remainder of the term thereof (including the Renewal Periods, if Tenant elects or has elected to exercise its options to extend the term) and Tenant hereby agrees to attorn to such new owner and to recognize such new owner as landlord under the Lease; and

 

B.              Such new owner shall be bound to Tenant under all of the terms, covenants and provisions of the Lease for the remainder of the term thereof (including the Renewal Periods, if Tenant elects or has elected to exercise its options to extend the term) which terms, covenants and provisions such new owner hereby agrees to assume and perform; provided, however, that such new owner shall not be (i) obligated to complete any construction work required to be done by Landlord within or outside of the Demised Premises pursuant to the provisions of the Lease or to reimburse Tenant for any construction work done by Tenant; however this provision shall not relieve such new owner from any repair or maintenance obligations of Landlord expressly set forth in the Lease accruing or arising following new owner’s acquisition of fee title to the Mortgaged Property or impair any express setoff rights of Tenant expressly set forth in the Lease accruing or arising following new owner’s acquisition of fee title to the Mortgaged Property; (ii) required to make any repairs to the Mortgaged Property or to the Demised Premises or to perform any other construction or other work, including without limitation the restoration of the Demised Premises following any casualty or taking; (iii) liable for the return of security deposits or letters of credit, if any, paid or delivered by or on behalf of Tenant to Landlord, except to the extent such sums are actually received by such new owner (or any Mortgagee if such Mortgagee is not the new owner); (iv) bound by any payment of rents, additional rents or other sums which Tenant may have paid more than one (1) month in advance to any prior Landlord unless such sums are actually received by Mortgagee or if such prepayment shall have been expressly approved of in writing by such new owner (or any Mortgagee if such Mortgagee is not the new owner); (v) bound by any agreement amending, modifying or terminating the Lease made without Mortgagee’s prior written consent; (vi) bound by any assignment of the Lease or sublease of the Demised Premises, or any portion thereof, made prior to the time such new owner succeeded to Landlord’s interest other than if made pursuant to the provisions of the Lease; (vii) liable on account of any default on the part of Landlord occurring prior to such new owner’s succeeding to Landlord’s estate; or (viii) subject to any counterclaims, offsets or defenses that Tenant might have against Landlord.

 

7.               If Landlord shall default in the performance of the Lease Tenant shall give written notice thereof to Mortgagee and Mortgagee shall have the right, but not the obligation, to cure such default in accordance with Section 23 of the Lease (and as provided therein the Mortgagee shall be entitled to such further time to cure as may be reasonably necessary for the Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion)

 

8.               Landlord has agreed in the Mortgage and other loan documents that the rents payable under the Lease shall be paid directly by Tenant to Mortgagee upon the occurrence of a default by Landlord under the Mortgage or any other loan document. Accordingly, after notice is given by Mortgagee to Tenant that the rents under the Lease should be paid to or at the

 

232

 

direction of Mortgagee, Tenant shall pay to Mortgagee, or in accordance with the directions of Mortgagee, all rents and other monies thereafter due and to become due under the Lease. Tenant shall have no responsibility to ascertain whether such demand by Lender is permitted under the Mortgage or any other loan document. Landlord hereby waives any right, claim or demand it may have nor or hereafter have against Tenant by reason of such payment to Mortgagee, and any such payment to Mortgagee shall discharge the obligations of Mortgagee to make such payment under the Lease.

 

9.               Any notices or communications given under this Agreement shall be in writing and shall be given by registered or certified mail, return receipt requested, postage prepaid, (a) if to Mortgagee at the address of Mortgagee as hereinabove set forth or at such other address as Mortgagee may designate by notice, or (b) if to Landlord at the address of Landlord as hereinabove, or at such other address as Landlord may designate by notice, or (c) if to Tenant, then one copy shall be delivered to the attention of the Senior Vice President of Real Estate of Tenant, another shall be delivered to the attention of General Counsel of Tenant, and another shall be delivered to the Director of Properties & Administration of Tenant, all at 2 Paragon Drive, Montvale, New Jersey 07645 or at such other addresses as Tenant may designate by notice. During the period of any postal strike or other interference with the mail, personal delivery shall be substituted for registered or certified mail.

 

10.             This Agreement shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective heirs, personal representatives, successors and assigns.

 

11.             This Agreement contains the entire agreement between the parties and cannot be changed, modified, waived or cancelled except by an agreement in writing executed by the party against whom enforcement of such modification, change, waiver or cancellation is sought.

 

12.             This Agreement and the covenants herein contained are intended to run with and bind all lands affected thereby.

 

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

 

	
WITNESS:
    	
 
    
	
 
    	
MORTGAGEE:
    
	
 
    	
                                
    
	
 
    	
, a
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
				

 

233

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
WE   APP SEAFORD LLC, a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PATHMARK   STORES, INC., a Delaware corporation
    
	
 
    	
 
    	
 
    
	
Name:
    	
By:
    	
 
    
	
 
    	
Name:   
    	
Christopher   W. McGarry
    
	
 
    	
Title:   
    	
Vice   President and Secretary
    

 

234

 

	
WITNESS:
    	
LANDLORD:
    

MORTGAGEE ACKNOWLEDGMENT

 

STATE OF                   )

 

SS:              

COUNTY OF              )

 

ON THIS              day of              2010, before me, the subscriber, personally appeared              to me known, who being by me duly sworn, did depose and say that he is              of              the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

LANDLORD ACKNOWLEDGMENT

 

COMMONWEALTH OF MASSACHUSETTS

 

Suffolk, ss.

 

On this                 day of                 2010, before me, the undersigned notary public, personally appeared                 , proved to me through satisfactory evidence of identification, which was a [current driver’s license] [a current U.S. passport] [my personal knowledge], to be the person whose name is signed on the preceding instrument and acknowledged the foregoing instrument to be his/her free act and deed as                 of WE APP Seaford LLC.

	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
My   Commission Expires:
    

 

235

 

TENANT ACKNOWLEDGMENT

 

STATE OF NEW JERSEY)

SS

COUNTY OF BERGEN)

 

ON THIS                 day of                 , 2010, before me, the subscriber, personally came Christopher W. McGarry, to me known, who being by me duly sworn, did depose and say that he is Vice President and Secretary of Pathmark Stores, Inc., the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

236

 

EXHIBIT A

 

LEGAL DESCRIPTION OF MORTGAGED PROPERTY

 

(Attached)

 

237

 

EXHIBIT E 

 

KEY NO:                                        

 

MEMORANDUM OF LEASE

 

THIS MEMORANDUM OF LEASE made as of November          , 2010 by WE APP SEAFORD LLC, a Delaware limited liability company, having an office at c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 Attn: Adam Winstanley (hereinafter called “Landlord”), and PATHMARK STORES, INC., a Delaware corporation, having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”).

 

W I T N E S S E T H:

 

1.              For and in consideration of the sum of TEN and no/100 Dollars ($10.00) and of other valuable considerations paid by Tenant to Landlord, the receipt and sufficiency of which are hereby acknowledged by Landlord, Tenant and Tenant hereby takes from Landlord that certain parcel of land (hereinafter called “Land”) described on Exhibit B and the buildings and other improvements now or hereafter erected on the Land together with the benefit of any and all easements, appurtenances, rights and privileges now or hereafter belonging thereto. The land is currently improved by an existing building consisting of 41,030 square feet of space (the “Building), as more particularly shown on the site plan attached hereto as Exhibit A. The Building and any buildings and improvements now or hereafter erected on the Land shall be hereinafter called “Improvements”. The Land and any Improvements now or hereafter erected thereon are hereinafter collectively called the “Demised Premises.” The Demised Premises have been leased to Tenant upon and subject to the covenants and agreements set forth in a certain agreement between Landlord and Tenant bearing even date herewith (hereinafter called the “Lease”).

 

2.               The Lease is in effect. The original term of the Lease shall continue to and include the date which is twenty (20) years after the day before the Commencement Date if the Commencement Date is the first day of a month, or twenty years (20) years after the last day of the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month.

 

3.               Tenant has the right and option to extend the term of the Lease from the date upon which it would otherwise expire for ten (10) separate renewal periods of five (5) years each (each such period being known as a “Renewal Period”). Said right and option, if exercised by Tenant, shall be in accordance with the terms and conditions of Section 4 of the Lease.

 

4.               The Lease contains the entire agreement between the parties. All persons are hereby put on notice of the existence of the Lease and are referred to the Lease for its terms and conditions. The Lease is on file in the offices of Tenant and the Landlord as hereinabove set forth.

 

5.               This Memorandum of Lease is prepared, signed and acknowledged solely for recording purposes under the laws of the State of New York, and is in no way intended to

 

238

 

change, alter, modify, amend or in any other way affect the rights, duties and obligations of Landlord and Tenant pursuant to the Lease; it being specifically understood and agreed between the parties that each has rights, duties and obligations imposed upon it in the Lease which are not expressly contained herein but are included herein by reference.

 

6. Upon expiration of the Lease term Landlord and its successors and assigns has irrevocably been named attorney-in-fact by Tenant in the Lease to execute, deliver and record a notice of termination of this Memorandum.

 

IN WITNESS WHEREOF this Memorandum of Lease has been duly executed as of the day and year first above written.

 

	
WITNESS:
    	
WE APP SEAFORD LLC, a Delaware limited   liability company
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
WITNESS:
    	
PATHMARK STORES, INC., a Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   Craig H. Feldman
    	
By:
    	
 
    
	
 
    	
Name:   
    	
Christopher   W. McGarry
    
	
 
    	
Title:   
    	
Vice   President and Secretary
    
						

 

239

 

EXHIBIT B

 

DEMISED PREMISES

 

240

 

EXHIBIT B

 

LEGAL DESCRIPTION OF THE LAND

 

241

 

COMMONWEALTH OF MASSACHUSETTS

 

Suffolk, ss.

 

On this            day of November 2010, before me, the undersigned notary public, personally appeared                                                 , proved to me through satisfactory evidence of identification, which was a [current driver’s license] [a current U.S. passport] [my personal knowledge], to be the person whose name is signed on the preceding instrument and acknowledged the foregoing instrument to be his/her free act and deed as                                   of WE APP Seaford LLC.

 

 

	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
My   Commission Expires:
    
	
 
    	
 
    
	
STATE   OF NEW JERSEY)
    	
 
    
	
SS
    	
 
    
	
COUNTY   OF BERGEN)
    	
 
    

 

ON THIS           day of November, 2010, before me, the subscriber, personally came Christopher W. McGarry, to me known, who being by me duly sworn, did depose and say that he is the Vice President and Secretary of Pathmark Stores, Inc., the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

242

 

UNCONDITIONAL GUARANTY

 

WHEREAS, Pathmark Stores, Inc., a Delaware corporation (“Tenant”) desires to enter into a certain lease (“Lease”) of even date concerning Demised Premises known as 4055 Merrick Road, Seaford, New York, with WE APP SEAFORD LLC, a Delaware limited liability company (“Landlord”). (Terms used herein and not otherwise defined will have the meaning given in the Lease.)

 

WHEREAS, as an inducement to entering into the Lease Landlord has required that the undersigned The Great Atlantic & Pacific Tea Company, Inc. (“Guarantor”) unconditionally guarantees the performance of all obligations of Tenant under the Lease.

 

NOW, THEREFORE, for good and valuable consideration, intending to be legally bound hereby, Guarantor agrees as follows:

 

1.               Guarantor unconditionally and absolutely guarantees to Landlord (which shall include its legal representatives, successors and assigns) the due and punctual performance of each and all of the Tenant’s obligations under or related to the Lease, including the timely payment of all sums due therein. Tenant’s obligations hereby guaranteed include, without limitation, those arising under amendments or modifications to the Lease hereafter entered into by Tenant and Landlord, all of which shall be so guaranteed even though Guarantor hereafter does not consent to or approve the same (Guarantor hereby waiving all rights of consent or approval with respect to such amendments or modifications).

 

2.               Guarantor waives presentment for payment or performance, notice of nonpayment or performance, notice of default, demand, protest or notice or acceptance of this Guaranty, any rights Guarantor may have by reason of any forbearance, modification, amendment, extension or any indulgence whatsoever that Landlord may grant or to which Landlord and the Tenant may agree with respect to the Lease, any and all notice of every kind to which Guarantor might otherwise be entitled with respect to the incurring of any further obligation or liability by Tenant to Landlord, demand for payment, the presentment of any instrument for payment, the protest or nonpayment thereof and any and all defenses whatsoever excepting only Tenant’s performance as required by the terms of the Lease. Guarantor also waives, unless and until all of the obligations of Tenant are fully paid and performed, any right to be subrogated in whole or in part to any right or claim of Landlord against Tenant and any right to require the marshalling of any assets of the Tenant, which right of subrogation or marshalling might otherwise arise from any partial payment by the Guarantor. It is expressly understood and agreed that Guarantor’s liability hereunder shall be unaffected by (i) any amendment or modification whatsoever of the provisions of the Lease, (ii) any extension of time for performance under the Lease, (iii) any delay by Landlord in exercising any right under the Lease or this Guaranty (none of which shall ever operate as a waiver of such right), or (iv) the release of Tenant or any other guarantor from performance or observance of any of the agreements or conditions contained in the Lease by operation of law or otherwise, whether made with or without notice to Guarantor, including without limitation any impairment, modification, change, release, rejection, disaffirmance, or limitation of the liability of Tenant, or any other guarantor of the Lease, of their estate in

 

243

 

bankruptcy or insolvency resulting from the operation of any present or future provision of the Federal Bankruptcy Code or other similar or insolvency statute, or from the decision of any court. Guarantor covenants that Guarantor will cause Tenant to maintain and preserve the enforceability of the Lease, as the same may hereafter be modified or amended, and will not permit it to take or to fail to take action of any kind the taking of which or the failure to take might be the basis for a claim that Guarantor has any defense to its obligation hereunder other than timely performance in full of the Lease in accordance with its terms. The joint and several liability of Guarantor hereunder shall exist irrespective of the validity or enforceability of the Lease.

 

3.               This shall be an agreement of suretyship as well as of guaranty, and Landlord, without being required to proceed first against Tenant or any other person or entity, may proceed directly against Guarantor whenever Tenant fails to make any payment due or fails to perform any obligation now or hereafter owed to Landlord without first resorting to or exhausting any other remedy and without first having recourse to the Lease; provided, however, that nothing herein contained shall prevent Landlord from suing on the Lease with or without making Guarantor a party to the suit or from exercising any other rights thereunder and if such suit, or other remedy, is availed of, only the net proceeds therefrom, after deduction of all Landlord’s Costs of Collection (defined below) shall be applied in reduction of the amount then due on this Guaranty.

 

4.               Guarantor agrees to pay to Landlord, on demand, all costs and expenses, including reasonable attorneys’ fees and litigation expenses, which Landlord may incur in the enforcement of Tenant’s obligations under the Lease or the liability of Guarantor hereunder (“Costs of Collection”). “Costs of Collection” includes, without limitation, all out of pocket expenses incurred by the Landlord’s attorneys and all costs incurred by Landlord including, without limitation, costs and expenses associated with travel on behalf of Landlord, which costs and expenses are related to or in respect of Landlord’s efforts to collect and/or to enforce any of the obligations and/or to enforce any of its rights, remedies or powers against or in respect of either or both Tenant or Guarantor (whether or not suit is instituted in connection with such efforts).

 

5. Guarantor represents and warrants to Landlord that (i) it has either examined the Lease or has had an opportunity to examine the Lease and has waived the right to examine; (ii) that it (and the individual acting on its behalf) has the full power, authority and legal right to execute and deliver this Guaranty; (iii) that this Guaranty is a binding legal obligation and is fully enforceable against Guarantor in accordance with its terms; (iv) that there is no action or proceeding pending or, to its knowledge, threatened against Guarantor before any court or administrative agency which might result in any material adverse change in its business or condition or in its assets; (v) that neither the execution nor delivery of this Guaranty nor fulfillment of nor compliance with the terms and provisions thereof will constitute a default under or result in the creation of any lien, charge or encumbrance upon any property or assets of Guarantor under any agreement or instrument to which it is now a party or by which Guarantor may be bound; and (vi) that Guarantor is the sole owner of all the common stock of Tenant and expects to derive financial benefit from the Lease.

 

244

 

6.               This Agreement shall be binding upon Guarantor and its legal representatives, successors and assigns, and shall inure to the benefit of Landlord and its legal representatives, successors and assigns, and is irrevocable until released in writing by Landlord. Each and every right, remedy and power hereby granted to Landlord or allowed it by law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by Landlord at any time and from time to time. The validity, construction and performance of this Guaranty shall be governed by the laws of the State where the Demised Premises are located (the “State”), without regard to conflict of law principles. If any clause or provision of this Guaranty should be held illegal or invalid by any court, the invalidity of such clause or provisions shall not affect any of the remaining clauses or provisions hereof. In case any agreement or obligation contained in this Guaranty should be held to be in violation of law, then such agreement or obligation shall be deemed to be the agreement or obligation of the Guarantor, as the case may be, to the full extent permitted by law. Each and every default hereunder or under the Lease shall give rise to a separate cause of action hereunder. The obligations and liabilities of hereunder shall be joint and several with any other guarantees given to Landlord in connection with the Lease. This Guaranty may be amended only by instrument in writing executed and delivered by both Landlord and Tenant. The provisions of this Guaranty shall bind Guarantor and its respective successors and assigns, and shall inure to the benefit of Landlord and its successors and assigns. This Guaranty and all consents, notices, approvals and all other documents relating hereto may be reproduced by photographic, microfilm, microfiche or other reproduction process and the originals thereof may be destroyed; and each party agrees that any reproductions shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not reproduction was made in the regular course of business) and that any further reproduction of such reproduction shall likewise be admissible in evidence.

 

7.               Guarantor consents to and agrees that the courts of the State shall have personal jurisdiction over Guarantor for any action brought on this Guaranty including the right to grant judgment against Guarantor personally together with interest on any judgment obtained by Landlord at the interest rate set forth in the Lease for late payments (but if the same shall be unlawful for any reason, then at the highest permissible interest rate). Guarantor further agrees and consents that venue, if any, for any such action shall be as set forth in the Lease. Guarantor waives and relinquishes any and all rights to removal of any such action to any other court. Guarantor also waives trial by jury in any judicial proceeding involving any matter in any way arising out of or relating to this Guaranty or the Lease.

 

8. Any notice, communication, request or other document or demand made under this Guaranty shall be in writing and shall be deemed given at the earlier of (i) the date received or (ii) three (3) business days after the date deposited in a United States Postal Service Depository, postage prepaid first class certified or registered mail, return receipt requested, addressed to Guarantor or Landlord, as the case may be, at the respective addresses set forth opposite their names below:

 

245

 

Landlord:

 

WE APP Seaford LLC

c/o Winstanley Enterprises, LLC

150 Baker Avenue Extension, Suite 303 

Concord, MA 01742

Attn. Adam Winstanley

 

with a copy similarly sent to:

 

DLA Piper LLP (US)

33 Arch Street, 26th Floor

Boston, MA 02110

Attention: Daniel A. Taylor, Esq. or Primo Fontana, Esq.

 

Guarantor:

 

The Great Atlantic & Pacific Tea Company, Inc. 

2 Paragon Drive

Montvale, New Jersey 07645

Attn: Senior Vice President of Real Estate

 

with a copy similarly sent to

 

The Great Atlantic & Pacific Tea Company, Inc. 

2 Paragon Drive

Montvale, New Jersey 07645

Attn: General Counsel

 

Either party may change an address to which any such notice, communication, request or other document or demand is to be delivered to it or delivery of copies thereof by furnishing written notice of such change to the other party. Each party shall, when giving notices, send at least one (1) copy by Federal Express, U.S. Express Mail, or other overnight delivery service, to the addressee.

 

IN WITNESS WHEREOF, Guarantor has executed and sealed this Guaranty the day of November         , 2010.

 

	
WITNESS:
    	
 
    	
THE GREAT ATLANTIC & PACIFIC
    
	
 
    	
 
    	
TEA COMPANY, INC., a Maryland corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
 
    	
Name:   Christopher W. McGarry 
    
	
 
    	
 
    	
 
    	
Title:   Senior Vice President
    

 

246

 

EXHIBIT G

 

INSURANCE

 

This Exhibit G shall be incorporated into the Lease, and where terms of this Exhibit conflict with these terms within the Lease, the terms of this Exhibit shall prevail and govern the Lease.

 

1.               INSURANCE.

 

A. Coverage. Tenant shall purchase and maintain insurance during the entire Term of the Lease and any period Tenant (or any party claiming by, through or under Tenant) occupies any portion of the Demised Premises, for the benefit of the Tenant and Landlord (as their interest may appear) with terms and coverages reasonably satisfactory to Landlord, and with insurers having a minimum A.M. Best rating of at least A/X, and with such increases in limits as Landlord may from time to time reasonably request, but initially Tenant shall maintain the following coverages in the following amounts:

 

(1)             Commercial General Liability Insurance naming Landlord, Landlord’s management, leasing and development agents and Landlord’s mortgagee(s) from time to time as additional insureds, with coverage for premises/operations, personal and advertising injury, products/completed operations and contractual liability with combined single limits of liability of not less than $1,000,000 for bodily injury and property damage per occurrence and not less than 2,000,000 in the aggregate and excess liability insurance with a limit not less than $20,000,000 per occurrence and aggregate. Notwithstanding anything to the contrary contained herein, Tenant’s obligation to maintain general liability insurance may be satisfied through a program of self-insurance whereby Tenant self-insures the first $3,000,000.00 per claim as long as the program is supported by an A-rated insurance company and its third party administrator.

 

(2)             Property insurance covering property damage and business interruption for the entire Demised Premises. Covered property shall include the Building, boilers and machinery, all tenant improvements, office furniture, trade fixtures, office equipment, merchandise and all other items Tenant’s property on the Demised Premises. Such insurance shall name Landlord and Fee Mortgagee(s) from time to time as additional loss payees as their interests may appear. Such insurance shall be written on an “all risk” of physical loss or damage basis including but not limited to the perils of fire, extended coverage, windstorm, vandalism, malicious mischief, terrorism, sprinkler leakage, flood, windstorm and earthquake, for the full replacement cost value of the covered items and other endorsements as Landlord shall reasonably request from time to time and in amounts that meet any co insurance clause of the policies of insurance with a deductible amount not to exceed $750,000. Such insurance shall include rent continuation coverage of no less than twelve (12) months. Such policy or policies shall provide that the proceeds of any loss shall be payable to Landlord and Tenant and to the holder (as its interest may appear) of any Fee Mortgage to which this Lease is subordinate so long as such holder and future holders of such Fee Mortgage are obligated to apply proceeds of insurance in the manner provided for in this Lease.

 

247

 

(3)             Workers’ Compensation Insurance and Employers Liability Insurance with statutory limits and automobile liability insurance (coverage must include owned, leased, hired and non owned vehicles) with a limit of at least $1,000,000 Combined Single Limit-Bodily Injury & Property Damage.

 

(4)             Tenant shall purchase or shall cause each Tenant contractor performing work on the Demised Premises to carry insurance protecting against claims set forth below which may arise out of or result from the contractor’s operations on the Premises and naming Landlord, Landlord’s management, leasing and development agents as additional insureds for Premises Operations and Completed Operations. Waiver of Subrogation to apply under all policies.

 

(1)           claims under workers’ or workmen’s compensation, disability benefit and other similar employee benefit acts—in amounts as required by law;

 

(2)           claims for damages because of bodily injury, occupational sickness or disease, or death of his employees or any other person and other personal injury and motor vehicle liability — Public Liability - Single Limit (Combined) Per Occurrence. Bodily Injury/Property Damage $1,000,000 w/ $2,000,000 General/Completed Operations Aggregate. Automobile Liability - Single Limit (Combined) Per Occurrence Bodily Injury and Property Damage $1,000,000. Excess Liability Umbrella covering all above items $5,000,000 per Occurrence; and

 

(3) claims for damages, other than the work of the contractor itself, because of injury to or destruction of tangible property, including loss of use resulting therefrom — $1,000,000 per occurrence.

 

Tenant shall, prior to the commencement of the Term and on each anniversary of the renewal date thereof, furnish to Landlord certificate(s) evidencing such coverage, which certificate(s) shall state that such insurance coverage may not be canceled without at least thirty (30) days’ prior written notice to Landlord and Tenant. The insurance maintained by Tenant shall be deemed to be primary insurance and any insurance maintained by Landlord (acknowledging that Landlord has no obligation to maintain any insurance) shall be deemed secondary thereto. On all liability insurance Landlord, (and if requested, Landlord’s Fee Mortgagees and Landlord’s management, leasing and development agents shall be named as additional insureds with such coverage to be primary. Tenant agrees from time to time to deliver true and complete copies of all policies to Landlord upon request.

 

248

 

EXHIBIT H

 

PERCENTAGE RENT

 

If any Percentage Rent Event occurs as described in Section 5(E) of the Lease, then the following provisions shall immediately take effect, shall become a part of the Lease for the remainder of the Term and Tenant shall, in addition to all other rent provided for in the Lease, also pay Percentage Rent to Landlord in accordance with the following:

 

Section 5(E) Percentage Rent

 

5(E)(1) Percentage Rent - General Covenant. As used in this Section 5(E) the following terms have these meanings:

 

“Percentage Rent Rate” means one percent (1%) of Excess Gross Sales.

“Excess Gross Sales” means Gross Sales above the Gross Sales Benchmark. 

“Gross Sales” has the meaning given below in Section 5 (E)(2).

“Gross Sales Benchmark” means $51,500,000.00, which amount is increased by five (5%) every five years at the same time Fixed Annual Rent increases under Section 5 (A) of the Lease.

 

Tenant covenants and agrees to pay to Landlord, as Additional Rent, the amount, if any, of Tenant’s Excess Gross Sales during any calendar month or part thereof during the Term, multiplied by the Percentage Rent Rate (“Percentage Rent”). (For any period less than a full calendar month the Excess Gross Sales and the Gross Sales Benchmark shall be prorated.) Such amounts payable hereunder are referred to as “Percentage Rent” and are also included in the term “Additional Rent.”

 

5 (E)(2) Gross Sales - Definition. “Gross Sales” means the total amount in dollars of the actual price charged (including finance charges), by Tenant and any sublease, assignee, licensee or other person conducting sales from or with respect to the Demised Premises, whether for cash or on credit, for all sales of merchandise, food, beverages, services, gift or merchandise certificates, and all other receipts of business conducted at, in, on, about or from the Premises, including, but not limited to, all mail or telephone orders, all internet sales, and all catalog sales and all home delivery sales received or filled at, from or with respect to the Premises, and including all deposits not refunded to purchasers, all orders taken in, from or with respect to the Premises, whether or not such orders are filled elsewhere, receipts of sales through any vending machine or other coin or token operated device or otherwise at, in, on, about, from or with respect to the Premises, and sales and receipts occurring or arising as a result of solicitation off the Premises conducted by personnel operating from or reporting to, or under the supervision of any employee of Tenant located at the Demised Premises. Gross Sales shall not, however, include any separately stated sums collected and remitted for any retail sales tax or retail excise tax imposed by any duly constituted governmental authority, nor shall they include any exchange of goods or merchandise between the stores of Tenant where such exchange of goods or merchandise is made solely for the convenient operation of the business of Tenant and neither for the purpose of consummating a sale which has theretofore been made at, in, on, about or from the Premises nor for the purpose of depriving Landlord of the benefits of a sale which otherwise

 

249

 

would be made at, in, on, about, from or with respect to the Premises, nor the amount of any cash or credit refund made upon any sale where the merchandise sold, or some part thereof, is thereafter returned by the purchaser and accepted by Tenant, nor sales of fixtures which are not a part of Tenant’s stock in trade. Each sale upon installment, credit or layaway shall be treated as a sale for the full price in the month during which such sale shall be made, irrespective of the time when Tenant shall receive payments from its customers, and no deduction shall be allowed for uncollectible payment by customer or uncollected or uncollectible credit accounts.

 

5(E)(3) Records and Reporting of Gross Sales. Tenant shall utilize, and cause to be utilized, cash registers equipped with consecutive serialized tapes and/or such other devices for recording sales as are normally used in Tenant’s type of business to record all sales and Tenant shall keep for at least 36 months after expiration of each calendar year or part thereof during the Term, full, true and accurate books of account and records (“books”) conforming to generally accepted accounting principles showing all Gross Sales transacted at, in, from and upon the Premises for such calendar year or part thereof, including all tax reports, dated cash register tapes, sales slips, sales checks, sales books, bank deposit records and other supporting data. Such books shall be kept on the Premises during the Term. Within fifteen (15) days after the end of each calendar month or portion thereof included in the Term, Tenant shall furnish to Landlord a statement of Gross Sales transacted during such previous month or portion thereof; and on or before each February 1 included in the Term and within thirty (30) days after the end of the Term Tenant shall furnish to Landlord a statement (the “Annual Statement”) certified by an independent public accountant of Gross Sales itemized on a calendar month by calendar month basis transacted during the preceding calendar year or part thereof. In the event of Tenant’s failure to furnish any statement of Gross Sales required hereunder, in addition to all other remedies afforded it under this Lease, Landlord shall be entitled to have an accountant of Landlord’s selection conduct an audit of Tenant’s books for such period or periods for which Tenant has failed to furnish such statements. Such audit shall be at Tenant’s expense and Tenant shall promptly reimburse Landlord for the costs of such audit. All such costs shall be deemed additional charges. Notwithstanding the foregoing, Landlord shall have the right from time to time by its accountants or representatives to audit all statements of Gross Sales and in connection with such audits to examine all of Tenant’s books (including all supporting data and any other records from which Gross Sales may be tested or determined) of Gross Sales; and Tenant shall make all books readily available for such examination. Failure of Tenant to make all books readily available for such examination shall be deemed a default under this Lease; and in addition to all other remedies afforded it under this Lease, Tenant shall promptly reimburse Landlord for the costs of such audit. All such costs shall be deemed additional charges. If any such audit discloses that the actual Gross Sales for any month transacted by Tenant exceed those reported by more than two percent, Tenant shall forthwith pay to Landlord the cost of such audit and examination together with any additional Percentage Rent payable to Landlord. Any information obtained by Landlord pursuant to the provisions of this Section shall be treated as confidential, except in any litigation or arbitration proceedings between the parties, and, except further, that Landlord may disclose such information to existing Lenders and to prospective buyers and lenders.

 

5 (E)(4) Payment. On or before the 15th day after the expiration of each full or partial calendar month included in the Term, Tenant shall pay all Percentage Rent due for such prior

 

250

 

month to Landlord without demand, provided that if such amount exceeds the Percentage Rent that would be payable with respect to such month if Percentage Rent were calculated on the basis of Gross Sales for all months elapsed in the then current calendar year, Tenant shall not be required to pay any amount on account of such month unless and until such amount shall later be payable as part of the annual adjustment. Upon receipt by Landlord of each Annual Statement of Gross Sales there shall be an adjustment between Landlord and Tenant to the end that Landlord shall receive the exact amount of Percentage Rent due hereunder. Any overpayments by Tenant hereunder shall be credited against the next payments due under this Section. Any underpayments by Tenant shall be immediately due and payable. With respect to the calendar year in which the Term ends, the adjustments shall be prorated for the portion of the calendar year included in the Term.

 

251

 

 

EXHIBIT I 

 

LOCAL LAW ADDENDUM

 

(Attached)

 

252

 

Lease Addendum (NY)

 

This Lease Addendum (“Addendum”) is supplemental to and made a part of that certain Lease dated as of November     , 2010 (the “Lease”) by and between WE APP Seaford LLC (“Landlord”) and Pathmark Stores, Inc. (“Tenant”). Capitalized terms used in this Addendum without definition shall have the meanings set forth in the Lease. This Addendum is to be construed as supplemental to, and part of, the Lease. In the event of any inconsistency between the Lease and this Addendum, the terms and provisions of this Addendum shall prevail.

 

Notwithstanding the terms and conditions contained in the Lease, and to the limited extent hereof, the parties agree as follows:

 

1.               Construction Lien. Nothing in the Lease shall be deemed to constitute Landlord’s consent or request, express or implied, by inference or otherwise: (a) to any contractor, subcontractor, laborer, or material supplier for the performance of any labor or the furnishing of any materials for any improvement, alteration or repair of the Demised Premises; or (b) to subject the Demised Premises to any mechanic’s lien.

 

2.               Maintenance of Property.

 

A.            To the extent the Lease requires Tenant to maintain or repair any sidewalk, Tenant shall perform all obligations of Landlord (and shall indemnify Landlord in the manner provided in the Lease against any liability of Landlord arising) under New York City Administrative Code §2-710 and -711.

 

B.            Tenant shall not clean any window in or about the Demised Premises (or require, permit, suffer, or allow any window to be cleaned) from the outside in violation of New York Labor Law §202.

 

3.               Landlord’s Remedies.

 

A.            Notwithstanding anything to the contrary in New York Real Property Actions and Proceedings Law (N.Y. RPAPL) §711(2) or any other applicable law or rule of procedure, Landlord’s acceptance of any partial payment on account of rent, even if such payment has been acknowledged or receipted for in writing, shall not be deemed to constitute Landlord’s “express consent in writing to permit Tenant to continue in possession” as referred to in N.Y. RPAPL §711(2) unless Landlord’s written acceptance expressly states that: “Landlord consents to Tenant’s remaining in possession notwithstanding nonpayment of rent.” Any such part payment shall merely constitute a payment on account and nothing more, and shall not limit any rights or remedies of Landlord.

 

B.            Tenant expressly waives and releases, for itself and for any person claiming by, through or under Tenant, any rights that Tenant or such person may have under New York civil practice law and rules §220 1 (or any other law or rule of procedure, including any provisions of the New York real property actions and proceedings law), in connection with any holdover proceedings or other action or proceeding regarding this Lease, Tenant’s rights as a tenant of the Building, or Tenant’s possession of the Demised Premises.

 

253

 

4.               Casualty. The provisions of Article 26 of this Lease on destruction shall be deemed an express agreement as to damage or destruction of the Demised Premises by fire or other casualty. New York Real Property Law §227 (and any similar or successor statute), providing for such a contingency in the absence of an express agreement, shall have no application.

 

5.               Redemption. Tenant specifically waives the right of redemption provided for in New York Real Property Actions and Proceedings Law §761, and any similar or successor statute.

 

6.               Landmarks. Tenant acknowledges and agrees that it shall not seek or support a landmark designation, unless such landmark designation is specifically sought by Landlord, pursuant to the New York City Administrative Code §25-322 for the Demised Premises or any part of the Building.

 

7.               Zoning Lot. Tenant acknowledges that Tenant has no rights to or interest in any development rights, “air rights,” rights to construct additional floor area, or comparable rights appurtenant to the Demised Premises. Tenant consents, without further consideration, to Landlord’s utilization or transfer of such rights in any manner. Tenant shall promptly execute and deliver any instruments that Landlord may reasonably request, including without limitation, instruments merging zoning lots, or waiving Tenant’s right to join in such instruments, to evidence such acknowledgment and consent. The provisions of this paragraph are and shall be deemed to be and shall be construed as Tenant’s express waiver and release of any interest Tenant may have as a “party in interest” (as defined under the definition of “Zoning Lot” in §12- 10 of the New York City Zoning Resolution or any similar or successor statute) in the Demised Premises.

 

254

 

EXHIBIT J 

 

Confidentiality Agreement

 

(Attached)

 

255

 

CONFIDENTIALITY AGREEMENT

 

THIS CONFIDENTIALITY AGREEMENT (this “Agreement”) is entered into as of                   , 2010 (the “Effective Date”) by and between [TENANT], a                             , having an address at                                             (“Company”) and                    , a                          , having an address at                       (“Disclosee”).

 

In connection with Disclosee’s interest in obtaining information concerning the business of Company, Company is furnishing or has furnished Disclosee with certain written information concerning Company’s gross sales that is either non-public, confidential or proprietary in nature. This information furnished to Disclosee or its affiliates, agents, representatives or employees (“Representatives”), together with analyses, compilations, forecasts, studies or other documents prepared by Disclosee or its Representatives that contain or otherwise reflect such information is hereinafter referred to as the “Information.” In consideration of Company furnishing Disclosee with the Information, Disclosee agrees that:

 

1.             The Information is Company’s property and will be kept confidential and shall not, without Company’s prior written consent, be disclosed by Disclosee or Representatives in any manner whatsoever, in whole or in part, and shall not be used by Disclosee or its Representatives in any manner to compete with the business of Company. Moreover, Disclosee may reveal the Information only to its Representatives who need to know the Information, are informed by Disclosee of the confidential nature of the Information and who shall agree to act in accordance with the terms and conditions of this Agreement. Disclosee shall be responsible for any breach of this Agreement by its Representatives.

 

2.             The term Information shall not include such portions of the Information which (i) are or become generally available to the public other than as a result of a disclosure by Disclosee or its Representatives, or (ii) become available to Disclosee on a non-confidential basis from a source (other than Company or its Representatives) that is not prohibited from disclosing such Information to Disclosee by a legal, contractual or fiduciary obligation to Company; or (iii) must be disclosed in order to comply with any applicable law, order, regulation or ruling; (iv) is already known to Disclosee or its Representatives or is already in its or their possession prior to disclosure by Company hereunder, or (v) is independently developed by Disclosee or its Representatives without reference to the Information.

 

3.             In the event that Disclosee or anyone to whom Disclosee transmits the Information pursuant to this Agreement becomes legally compelled to disclose any of the Information, Disclosee will provide Company with prompt notice so that Company may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Agreement. In the event that such protective order or other remedy is not obtained, or that Company waives compliance with the provisions of this Agreement, Disclosee will furnish only that portion of the Information that Disclosee is legally required and will exercise its best efforts to obtain reliable assurance that confidential treatment will be accorded the Information.

 

4.             Disclosee acknowledges that remedies at law may be inadequate or protect against breach of this Agreement, and Disclosee hereby in advance agrees that Company may seek injunctive relief without proof of actual damages. This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey, without regard to conflict of law principles. The exclusive jurisdiction for any disputes concerning this Agreement shall be the Superior Court of New Jersey,

 

256

 

Bergen County, and the parties hereby submit to such jurisdiction and waive all defenses relating to jurisdiction, venue and forum non convenience.

 

5.             Disclosee hereby defends, indemnifies and holds harmless Company and its Representatives and their respective successors and assigns against and from any loss, liability or expense, including attorney’s fees, arising out of any uncured breach by Disclosee or by its Representatives of any of the terms of this Agreement

 

6.             This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and all of which shall constitute the same Agreement. A facsimile, email, pdf or electronic signature shall be deemed an original signature.

 

[SIGNATURE PAGE FOLLOWS]

 

257

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date.

 

	
 
    	
COMPANY:   
    
	
 
    	
 
    
	
 
    	
[TENANT], a
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
DISCLOSEE:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
,   a
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:   
    
	
 
    	
Title:
    	
 
    
					

 

258

 

EXHIBIT B-4

 

LEASE FORM FOR BALDWIN, NY

 

259

 

KEY NO:

 

LEASE

 

BY AND BETWEEN

 

WE APP BALDWIN LLC,
 LANDLORD

 

AND

 

PATHMARK STORES, INC.,
 TENANT

 

DEMISED PREMISES

 

AT

 

1764 GRAND AVENUE, BALDWIN, NEW YORK

 

260

 

TABLE OF CONTENTS

 

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
EXHIBITS
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
DEMISED   PREMISES
    	
1
    
	
 
    	
 
    	
 
    
	
3.
    	
TERM
    	
2
    
	
 
    	
 
    	
 
    
	
4.
    	
RENEWAL   PERIODS
    	
2
    
	
 
    	
 
    	
 
    
	
5.
    	
RENT
    	
3
    
	
 
    	
 
    	
 
    
	
6.
    	
USE   AND OCCUPANCY
    	
5
    
	
 
    	
 
    	
 
    
	
7.
    	
TAXES
    	
7
    
	
 
    	
 
    	
 
    
	
8.
    	
SIGNAGE
    	
8
    
	
 
    	
 
    	
 
    
	
9.
    	
TRUE   LEASE
    	
9
    
	
 
    	
 
    	
 
    
	
10.
    	
REPAIRS
    	
9
    
	
 
    	
 
    	
 
    
	
11.
    	
INSURANCE
    	
9
    
	
 
    	
 
    	
 
    
	
12.
    	
REQUIREMENTS   OF LAW AND FIRE INSURANCE
    	
10
    
	
 
    	
 
    	
 
    
	
13.
    	
ALTERATIONS
    	
10
    
	
 
    	
 
    	
 
    
	
14.
    	
ACCESS   TO DEMISED PREMISES
    	
11
    
	
 
    	
 
    	
 
    
	
15.
    	
UTILITIES
    	
11
    
	
 
    	
 
    	
 
    
	
16.
    	
SUBORDINATION,   NON DISTURBANCE AND ATTORNMENT
    	
11
    
	
 
    	
 
    	
 
    
	
17.
    	
TRADE   FIXTURES
    	
12
    
	
 
    	
 
    	
 
    
	
18.
    	
ASSIGNMENT.
    	
13
    
	
 
    	
 
    	
 
    
	
19.
    	
TITLE   AND AUTHORITY
    	
14
    
	
 
    	
 
    	
 
    
	
20.
    	
QUIET   ENJOYMENT
    	
15
    
	
 
    	
 
    	
 
    
	
21.
    	
UNAVOIDABLE   DELAYS
    	
15
    
	
 
    	
 
    	
 
    
	
22.
    	
END   OF TERM
    	
15
    
	
 
    	
 
    	
 
    
	
23.
    	
LANDLORD’S   DEFAULT
    	
16
    
	
 
    	
 
    	
 
    
	
24.
    	
ADDITIONAL   CHARGES
    	
16
    
	
 
    	
 
    	
 
    
	
25.
    	
TENANT’S   DEFAULT
    	
16
    
	
 
    	
 
    	
 
    
	
26.
    	
DESTRUCTION
    	
19
    
	
 
    	
 
    	
 
    
	
27.
    	
EMINENT   DOMAIN
    	
20
    
	
 
    	
 
    	
 
    
	
28.
    	
THIRD   PARTY LITIGATION
    	
21
    
	
 
    	
 
    	
 
    
	
29.
    	
WAIVER   OF DISTRAINT
    	
21
    
	
 
    	
 
    	
 
    
	
30.
    	
ESTOPPEL   CERTIFICATES
    	
21
    
	
 
    	
 
    	
 
    
	
31.
    	
NOTICES
    	
21
    

 

261

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
32.
    	
BROKER
    	
22
    
	
 
    	
 
    	
 
    
	
33.
    	
LIENS
    	
22
    
	
 
    	
 
    	
 
    
	
34.
    	
DEFINITION   OF LANDLORD
    	
22
    
	
 
    	
 
    	
 
    
	
35.
    	
ADJOINING   OR ADJACENT PROPERTY
    	
22
    
	
 
    	
 
    	
 
    
	
36.
    	
ENVIRONMENTAL   LAWS
    	
23
    
	
 
    	
 
    	
 
    
	
37.
    	
LEASEHOLD   MORTGAGE
    	
24
    
	
 
    	
 
    	
 
    
	
38.
    	
INDEMNITY
    	
26
    
	
 
    	
 
    	
 
    
	
39.
    	
LIMITATION   OF LANDLORD’S LIABILITY
    	
26
    
	
 
    	
 
    	
 
    
	
40.
    	
BOOKS   AND RECORDS
    	
27
    
	
 
    	
 
    	
 
    
	
41.
    	
SATELLITE   DISH
    	
27
    
	
 
    	
 
    	
 
    
	
42.
    	
NO   PRESUMPTION AGAINST DRAFTER
    	
27
    
	
 
    	
 
    	
 
    
	
43.
    	
SUCCESSORS   AND ASSIGNS; AFFILIATES
    	
27
    
	
 
    	
 
    	
 
    
	
44.
    	
CAPTIONS
    	
27
    
	
 
    	
 
    	
 
    
	
45.
    	
INVALIDITY   OF CERTAIN PROVISIONS
    	
27
    
	
 
    	
 
    	
 
    
	
46.
    	
CHOICE   OF LAW/JURISDICTION
    	
28
    
	
 
    	
 
    	
 
    
	
47.
    	
NO   WAIVER
    	
28
    
	
 
    	
 
    	
 
    
	
48.
    	
ATTORNEY’S   FEES
    	
28
    
	
 
    	
 
    	
 
    
	
49.
    	
WAIVER   OF TRIAL BY JURY
    	
28
    
	
 
    	
 
    	
 
    
	
50.
    	
MISCELLANEOUS
    	
28
    
	
 
    	
 
    	
 
    
	
51.
    	
COUNTERPARTS
    	
29
    
	
 
    	
 
    	
 
    
	
52.
    	
INCORPORATION   OF STATE LAW PROVISIONS
    	
29
    

 

262

 

LEASE

 

THIS LEASE (this “Lease”), made as of November           2010 (the “Effective Date”), by and between WE APP BALDWIN LLC, a Delaware limited liability company with an office c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 Attn: Adam Winstanley (hereinafter called “Landlord”), and PATHMARK STORES, INC., a Delaware corporation, having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”). This Lease is guaranteed by The Great Atlantic & Pacific Tea Company, Inc., a Maryland corporation (“Guarantor”) pursuant to a guaranty of even date herewith (as the same may be amended, supplemented or modified from time to time, the “Guaranty”).

 

WITNESSETH:

 

Landlord and Tenant covenant and agree as follows:

 

1.           EXHIBITS. The following Exhibits are annexed hereto and made a part hereof:

 

A.             Exhibit A, Site Plan of the Demised Premises;

 

B.              Exhibit B1, Legal Description of the Land;

 

C.              Exhibit B2, Existing Encumbrances on Land

 

D.              Exhibit C, Remedial Work

 

E.              Exhibit D, Form of Subordination, Non-Disturbance and Attornment Agreement;

 

F.              Exhibit E, Memorandum of Lease;

 

G.              Exhibit F, Form of Guaranty;

 

H.              Exhibit G, Insurance Requirements;

 

I.               Exhibit H, Percentage Rent;

 

J.               Exhibit I, Local Law Addendum; and

 

K.              Exhibit J, Confidentiality Agreement.

 

2.           DEMISED PREMISES.

 

A. Landlord hereby leases to Tenant and Tenant hereby takes from Landlord that certain parcel of land (hereinafter called “Land”) commonly known as 1764 Grand Avenue, Baldwin, New York and more particularly described on Exhibit B1 and the buildings and other improvements now or hereafter erected on the Land together with the benefit of and subject to any and all easements, appurtenances, rights and privileges and other matters of record now or hereafter arising including those described in Exhibit B2. The land is currently improved by an

 

263

 

existing building consisting of approximately 51,798 square feet of space (the “Building”), as more particularly shown on the Site Plan attached hereto as Exhibit A. The Building and any other buildings and improvements now or hereafter erected on the Land shall be hereinafter called “Improvements.” The Land and any Improvements are hereinafter collectively called the “Demised Premises.”

 

B. Tenant or its Affiliates owned or leased the Demised Premises prior to their being purchased by Landlord. Landlord shall have no obligation or risk whatsoever with respect to the condition of the Demised Premises, Tenant taking the Demised Premises “AS IS, WHERE IS, WITH ALL FAULTS”. Tenant acknowledges that it has had full opportunity to inspect the Demised Premises with engineering and other consultants of its choice. Tenant’s commencing possession under this Lease shall be deemed an acknowledgment that the condition of the Demised Premises is satisfactory. Tenant further acknowledges that neither Landlord nor any person acting under Landlord has made or implied any representations or warranties whatsoever concerning the Demised Premises, their condition or this Lease except as set forth in Section 19.

 

3.           TERM.

 

A.             The term of this Lease (“Term”) shall commence (the “Commencement Date”) on the Effective Date and shall continue to and include the date (the “Expiration Date”) that is twenty (20) years after the day before the Commencement Date if the Commencement Date is the first day of a month, or twenty (20) years after the last day of the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month.

 

B.              The term “Lease Year” shall mean the following: the first Lease Year shall be the 12 month period commencing on the Commencement Date if the Commencement Date is the first day of a month, or on the first day of the month immediately following the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month; and each succeeding 12 month period thereafter shall be a Lease Year.

 

4. RENEWAL PERIODS. Tenant shall have the right and option to extend the Term of this Lease from the date upon which it would otherwise expire for ten (10) separate consecutive renewal periods of five (5) years each (each such period being hereinafter called a “Renewal Period”) upon the same terms and conditions as are herein set forth except the rent for such Renewal Period shall be as provided in Section 5 below; provided, however, that at the time of so electing to extend and also at the time any Renewal Period commences Tenant is not in default beyond any applicable notice and cure period, and this Lease is then in full force and effect. If Tenant fails timely so to exercise its option for any Renewal Period, time being of the essence, Tenant shall have no further extension rights hereunder. All references to the Term shall mean the Initial Term as it may be extended by any Renewal Period. If Tenant elects to exercise any one or more of said options to renew, it shall do so by giving written notice (“Renewal Notice”) of such election to Landlord at any time during the term of this Lease (including any Renewal Periods) on or before the date which is three hundred sixty five (365) days before the beginning of the Renewal Period or Renewal Periods for which the term hereof is to be renewed by the exercise of such option or options. If Tenant elects to exercise any one or more of said options to renew by serving a Renewal Notice in accordance with the foregoing, the

 

264

 

Term of this Lease shall be automatically extended for the Renewal Period(s) covered by the Renewal Notice without execution of an extension or renewal lease. If Tenant shall not have given notice of such election to Landlord by such date in respect of any Renewal Period, Landlord shall (unless notice shall have been given as hereinafter specifically permitted) give notice to Tenant that Tenant has failed to give notice of such election to Landlord (hereinafter called the “Option Notice”). Tenant’s time to give notice of such election shall continue until the date which is sixty (60) days after receipt of the Option Notice. Landlord shall not give the Option Notice prior to the date which is four hundred twenty-five (425) days before the Expiration Date. If Landlord shall not have given the Option Notice prior to the date which is four hundred twenty-five (425) days before the beginning of the next succeeding Renewal Period, the term of this Lease shall be extended beyond the Expiration Date to the date which is four hundred twenty-five (425) days after the date on which the Option Notice is given by Landlord.

 

5.           RENT.

 

A. Beginning on the Commencement Date and continuing throughout the Term, Tenant covenants and agrees to pay Landlord for the Demised Premises, without previous demand therefor, fixed annual rent (“Fixed Annual Rent”) as follows:

 

	
Lease Year
    	
 
    	
Fixed Annual Rent
    	
 
    	
Fixed Monthly Rent
    	
 
    
	
1-5
    	
 
    	
$
    	
1,450,344.00
    	
 
    	
$
    	
120,862.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
6-10
    	
 
    	
$
    	
1,522,861.20
    	
 
    	
$
    	
126,905.10
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
11-15
    	
 
    	
$
    	
1,599,004.26
    	
 
    	
$
    	
133,250.36
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
16-20
    	
 
    	
$
    	
1,678,954.47
    	
 
    	
$
    	
139,912.87
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
First Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
21-25
    	
 
    	
$
    	
1,762,902.20
    	
 
    	
$
    	
146,908.52
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Second Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
26-30
    	
 
    	
$
    	
1,851,047.31
    	
 
    	
$
    	
154,253.94
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Third Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
31-35
    	
 
    	
$
    	
1,943,599.67
    	
 
    	
$
    	
161,966.64
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fourth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
36-40
    	
 
    	
$
    	
2,040,779.66
    	
 
    	
$
    	
170,064.97
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
41-45
    	
 
    	
$
    	
2,142,818.64
    	
 
    	
$
    	
178,568.22
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
46-50
    	
 
    	
$
    	
2,249,959.57
    	
 
    	
$
    	
187,496.63
    	
 
    

 

265

 

	
Seventh Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
51-55
    	
 
    	
$
    	
2,362,457.55
    	
 
    	
$
    	
196,871.46
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Eighth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
56-60
    	
 
    	
$
    	
2,480,580.43
    	
 
    	
$
    	
206,715.04
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ninth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
61-65
    	
 
    	
$
    	
2,604,609.45
    	
 
    	
$
    	
217,050.79
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tenth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
66-70
    	
 
    	
$
    	
2,734,839.92
    	
 
    	
$
    	
227,903.33
    	
 
    

 

B.              All Fixed Annual Rent shall be payable by Tenant in equal monthly installments in advance on the first day of every calendar month during the Term of this Lease (and any Renewal Periods), and shall be payable at the office of the Landlord first above set forth or at such other address as Landlord shall have given in a notice to Tenant) in current U.S. currency by check drawn on a clearinghouse bank and payable directly to Landlord (or, if requested by Landlord from time to time by electronic fund transfer, to an account designated by Landlord). Rent for a part of a month shall be prorated on a daily basis and paid on the Commencement Date. Further, the rent for the first full month shall be paid on the Commencement Date.

 

C.              Beginning on the Commencement Date and continuing throughout the Term, Tenant covenants and agrees to pay, without previous demand therefor, all sums other than Fixed Annual Rent due under or required to be paid by this Lease (all of the foregoing being “Additional Rent” regardless of however defined or described in this Lease).

 

D.  It is the intention of the parties hereto that the Fixed Annual Rent payable hereunder shall be net to Landlord free of cost, charge, offset, diminution or other deduction, so that this Lease shall yield to Landlord the net Fixed Annual Rent specified herein during the Term of this Lease. Notwithstanding applicable law to the contrary and with the sole exception of those costs, expenses and obligations expressly stated in this Lease to be the sole responsibility of Landlord (or the responsibility of third parties as provided in Section 36C), all costs, expenses and obligations of every kind and nature whatsoever relating to this Lease, the Demised Premises or imposed on Landlord under applicable law either now existing or hereafter enacted and whether or not within the contemplation of the parties on account of this Lease, the Demised Premises or Landlord’s interest in the Demised Premises are assumed and shall be paid by Tenant when and as due as Additional Rent. Without limiting the generality of the foregoing, Tenant shall at its sole expense (which expense shall be deemed Additional Rent hereunder) be responsible for payment of all Taxes, all electricity, telecommunication service, gas, water, sewer, telephone, refuse disposal, and other charges for utilities and services supplied to the Demised Premises, insurance costs, amounts due under any title encumbrance matter described in Exhibit B2, and all costs of cleaning, maintaining, repairing and replacing the Demised Premises or any portion thereof and of complying with all laws now existing or hereafter enacted

 

266

 

including all Environmental Laws (defined below). Any cost, expense or obligation directly relating to the Demised Premises that is not expressly declared in this Lease to be that of Landlord shall be deemed to be an obligation of Tenant to be performed by Tenant at Tenant’s sole expense, and to the greatest extent permitted by law Tenant shall indemnify and defend Landlord against, and hold Landlord harmless from, the same, and Tenant’s liability for the payment and performance of such amounts and obligations that shall arise during the Term is hereby expressly provided to survive the expiration of the Term or early termination of this Lease. Fixed Annual Rent, Additional Rent, and all other sums payable hereunder by Tenant, shall be paid without notice or demand, and without set off, counterclaim, recoupment, abatement, suspension, deduction, or defense (other than payment) whatsoever. Except as otherwise expressly set forth in this Lease with respect to certain events of casualty in Section 26 or condemnation in Section 27, Tenant shall in no event have any right to terminate this Lease, and any right so to terminate (or to abate, suspend, set off or otherwise deduct from Fixed Annual Rent or Additional Rent) under applicable law is hereby waived to the greatest extent permitted by law. It is the intention of the parties that the obligations of Tenant hereunder shall be separate and independent covenants and shall not be discharged or otherwise affected by any law or regulation now or hereafter applicable to the Demised Premises or any other restriction on Tenant’s use, and that Fixed Annual Rent, Additional Rent, and all other sums payable by Tenant hereunder shall continue to be payable in all events, and that the obligations of Tenant hereunder shall continue unaffected throughout the Term. Landlord, at its sole cost and expense, shall be responsible for the following: (i) payment of any amounts relating to Fee Mortgages or other encumbrances or liens created by Landlord, (ii) management fees, administrative costs, professional fees and any other costs incidental to its fee ownership of the Demised Premises; and (iii) and cost, expense, or liability resulting from the negligent or willful misconduct of Landlord, its employees or agents.

 

E.  If any person (other than an Affiliate of the initial Guarantor (being The Great Atlantic & Pacific Tea Company, Inc.) or a successor by merger of acquisition) becomes an assignee of this Lease or sublets all or substantially all of the Demised Premises or otherwise becomes or is a Tenant under this Lease, such occurrence shall be a Percentage Rent Event and the provisions of Exhibit H shall immediately become applicable for the remainder of the Term.

 

6.         USE AND OCCUPANCY.

 

A. The Demised Premises may be used and occupied for the operation of a supermarket, drugstore, automated teller machine, bank, all other uses customary and incidental to a supermarket and, so long as the Minimum Credit Test (defined in Section 25D) is then met, all other lawful purpose or purposes. Notwithstanding anything to the contrary contained in this Lease, Tenant shall not be obligated to open, to conduct or to remain open for the conduct of any business in the Demised Premises but shall nevertheless pay Fixed Annual Rent and all Additional Rent when and as the same is due. At all times Tenant shall comply with all laws, ordinances and bylaws, regulations, codes, (including, without limitation, the Americans With Disabilities Act of 1990, or “ADA”) permits, orders and conditions of any special permits or other governmental approvals (“law” or “laws”) applicable from time to time to the Demised Premises or Tenant or both, foreseen or unforeseen, and whether or not the same interfere with Tenant’s occupancy. Tenant shall procure all approvals, licenses and permits, in each case promptly giving Landlord true and complete copies of the same and all applications therefor.

 

267

 

Tenant shall never overload any of the Building systems, including the floors and mechanical, electrical and structural systems, and shall also keep the Demised Premises equipped with appropriate safety appliances and comply with all requirements of insurance and of insurance inspection or rating bureaus. Tenant shall not itself, nor shall Tenant permit or suffer persons acting under Tenant to, either with or without negligence, injure, overload, deface, damage or otherwise harm the Demised Premises or any part thereof or use the Demised Premises contrary to any law or in a manner likely to create any nuisance. It is intended that Tenant bear the sole risk of all present or future laws affecting the Demised Premises, and Landlord shall not suffer any reduction in any rent on account of the enforcement of laws.

 

B.              Subject to Landlord’s consent, not to be unreasonably withheld, delayed or conditioned, Tenant shall have the right to enter into agreements with utility companies creating easements in favor of the utility companies as are required in order to service the Demised Premises. Also subject to Landlord’s consent, not to be unreasonably withheld, delayed or conditioned, Tenant may enter into reciprocal parking agreements and easements for ingress and egress as are required in order to service the Demised Premises and any adjoining or adjacent land designated by Tenant. Landlord covenants and agrees to execute any and all documents, instruments or certificates reasonably required in connection with such matters to which it has given its consent, and to take all other action, in order to effectuate the same, all at Tenant’s cost and expense. In no event, however, shall Landlord be required to consent to nor shall Tenant have the power to enter into any easement or reciprocal parking agreement (i) that is for a term in excess of the term of this Lease (as the same may be renewed or extended) except for utility and access easements that may be perpetual or otherwise extend beyond the term of this lease, or (ii) that diminishes the economic value of the Land. Landlord further covenants and agrees, upon request of tenant, to convey without compensation therefor, insubstantial perimeter portions of the Land for highway or roadway purposes, to the state in which the demised premises are situate or any other municipal or governmental body, provided, however, that any such conveyance shall not constitute a taking (as defined in section 28 below) nor constitute grounds for tenant to terminate this Lease. Notwithstanding anything to the contrary or otherwise set forth herein, any encumbrance on the Demised Premises shall be subject to any requirements imposed by any Fee Mortgage (provided that Landlord shall reasonably cooperate with Tenant, at no out of pocket cost to Landlord, in connection with obtaining any requisite consent from any Fee Mortgagee as defined below).

 

C.              The provisions of this paragraph shall only apply if and only if the Minimum Credit Test is not met. If Tenant either gives Landlord written notice of Tenant’s intention to discontinue permanently the operation of its business in the Demised Premises or any part of the Demised Premises or discontinues the operation of its business in the Demised Premises or any part of the Demised Premises for a period of one (1) year for any reason (other than Destruction or Taking that pursuant to the applicable provisions of this Lease entitles Tenant to terminate this Lease), then Landlord may terminate this Lease as to the Demised Premises, or if applicable, the part of the Demised Premises with respect to which Tenant has given notice of its intention to discontinue, or in which Tenant has discontinued, its operations, by thirty (30) days’ written notice to Tenant of Landlord’s election to terminate this Lease (or, if applicable, Landlord’s election to terminate this Lease as to the part of the Demised Premises with respect to which Tenant has given notice of its intention to discontinue, or in which Tenant has discontinued, its operations). Tenant may override Landlord’s election only once by, as

 

268

 

 

applicable, resuming operations of its business in the Demised Premises within twenty-five (25) days after receipt of Landlord’s notice or by rescinding its notice of its intention to discontinue its business in writing to Landlord delivered within twenty-five (25) days after receipt of Landlord’s notice.

 

7.             TAXES.

 

A.             Tenant shall, during the term of this Lease, as Additional Rent, pay and discharge punctually, as and when the same shall become due and payable, all taxes, special and general assessments, water rents, rates and charges, sewer rents and other governmental impositions and charges of every kind and nature whatsoever, extraordinary as well as ordinary, including rent and/or occupancy taxes (hereinafter collectively referred to as “Taxes”), and each and every installment thereof that shall or may during the term of this Lease, become due and payable, or liens upon the Demised Premises or any part thereof, together with all interest and penalties thereon, under or by virtue of all present or future laws, ordinances, requirements, orders, directives, rules or regulations of the Federal, State, County, Town and City Governments and of all other governmental authorities whatsoever (all of which shall also be included in the term “Taxes” as heretofore defined).

 

B.              To the extent permitted by law, Tenant or its designees shall have the right to apply for the conversion of any assessment for local improvements assessed during the term of this Lease in order to cause the same to be payable in annual installments. Landlord agrees to permit the application for the foregoing conversion to be filed in Landlord’s name, if necessary, and shall execute any and all documents, instruments or certificates reasonably requested by Tenant to accomplish the foregoing.

 

C.              Tenant shall be deemed to have complied with the covenants of this Lease if payment of Taxes shall have been made either within any period allowed by law or by the applicable governmental authority during which payment is permitted without penalty so long as the Taxes shall never become subject to a tax sale on the Demised Premises or subject Landlord to any civil or criminal liability. Tenant shall produce and exhibit to Landlord satisfactory evidence of payment prior to the expiration of any such period.

 

D.              All Taxes shall be apportioned pro rata between Landlord and Tenant in accordance with the respective portions of such year during which the Term shall be in effect. Notwithstanding anything to the contrary contained herein, if the Term hereof terminates prior to the date which would have been the expiration thereof but for the earlier termination, then Tenant shall pay those Taxes which would have been paid by Tenant to and including the term expiration date and this obligation shall expressly survive such termination.

 

E. So long as the requirements of Paragraph C of this Section are complied with, Tenant or its designees shall have the right to contest or review all Taxes by legal proceedings, or in such other manner as it may deem suitable. Tenant or its designees shall inform Landlord of any such proceedings and conduct such proceedings promptly at its own cost and expense, and free of any expenses to Landlord, and if necessary, in the name of and with the cooperation of Landlord (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant). Landlord shall

 

269

 

execute all documents, instruments or certificates reasonably necessary and correct to accomplish the foregoing. Notwithstanding anything to the contrary or otherwise set forth herein, any such contest shall be subject to compliance with all applicable provisions of any Fee Mortgage (provided that Landlord shall reasonably cooperate with Tenant, at no material out of pocket cost to Landlord, in connection with such compliance).

 

F.              Landlord covenants and agrees that any refunds or rebates on account of Taxes paid by Tenant pursuant to the provisions of this Lease shall belong to Tenant. Any refunds received by Landlord shall be deemed trust funds and as such are to be received by Landlord in trust and paid to Tenant forthwith. Landlord will, upon the request of Tenant, sign any receipts that may be necessary to secure the payment of any such refund or rebate, directly to Tenant and/or will pay over to Tenant such refund or rebate as received by Landlord. Landlord further covenants and agrees on request of Tenant at any time, and from time to time, but without cost to Landlord, to make application individually (if legally required) or to join in Tenant’s application (if legally required) for separate tax assessments for such portions of the Demised Premises as Tenant shall at any time, and from time to time, reasonably designate. Landlord hereby agrees, upon request of Tenant, to execute all documents, instruments or certificates as shall reasonably be required by Tenant (so long as the same impose no material obligations on Landlord or expose Landlord to any liability).

 

G.              Nothing herein or in this Lease otherwise contained shall require or be construed to require Tenant to pay any inheritance, estate, succession, transfer, gift, franchise, income or profit taxes, that are or may be imposed upon Landlord, its successors or assigns, whether arising out of Landlord’s ownership of the Demised Premises, this Lease or otherwise; provided, however, that if at any time hereafter there is levied any tax on Landlord in lieu of real estate taxes based solely upon the ownership of real property, by property owners, in general, within the tax jurisdiction within which the Demised Premises are located, then such tax shall be considered to be an item of Taxes but for purposes of computing the amount of such tax payable by Tenant, the Demised Premises shall be deemed to be the sole real property owned by Landlord.

 

H. In the event that any fee mortgagee (“Fee Mortgagee”) requires the escrow of Real Estate Taxes or insurance premiums, Tenant shall pay to such Fee Mortgagee in escrow, on the first day of each and every month during the term of this Lease, one twelfth (1/12) of all estimated charges for the ensuing twelve (12) month period as reasonably estimated by the Fee Mortgagee based on current bills for same. Tenant shall deposit at least ten (10) days prior to the first date on which any interest or penalty will accrue such additional amounts as may be necessary so that there shall at all times be sufficient funds in escrow to pay such charges.

 

8. SIGNAGE. Tenant and any assignee or subtenant of Tenant shall have the right to install, maintain and replace in, on or in front of any Improvement or location on the Demised Premises or in any part thereof such signs and advertising matter as Tenant, and with Tenant’s consent, any such assignee or subtenant of Tenant may desire, provided that Tenant shall comply with any applicable requirements of governmental authorities having jurisdiction and shall obtain any necessary permits for such purposes. As used in this Section, the word “sign” shall be construed to include any placard, pylon, logo, light or other advertising symbol or object, irrespective or whether same be temporary or permanent. All signs shall be Tenant’s personal

 

270

 

property and shall be maintained and removed by Tenant upon termination of this Lease at Tenant’s sole expense.

 

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

 

10.            REPAIRS. Tenant shall, at all times during the Term of this Lease, and at its own cost and expense, keep and maintain or cause to be kept and maintained in repair and good condition the Building and improvements at any time erected on the Demised Premises. Without limitation, Tenant shall perform the Remedial Work described in Exhibit C. Landlord shall not be required to furnish services or facilities or to make any improvements, repairs, replacements or alterations in or to the Demised Premises whatsoever during the Term of this Lease. Without limiting the generality of the foregoing, Tenant shall be responsible for the entire Demised Premises and shall manage, maintain, repair, replace, clean, secure, protect, defend and keep in compliance with all governmental requirements, now existing or hereafter enacted, the Demised Premises and all improvements and appurtenances and all utilities, facilities, installations and equipment used in connection therewith, including all walls, all floor coverings, glass, windows, doors, partitions, exterior and interior lighting, signage, elevators, electrical, plumbing, heating, ventilating, fire protection and life safety, security and other building systems, water and sewage systems and other fixtures or equipment serving the Demised Premises, keeping the Demised Premises and all improvements and appurtenances in at least as good condition as on the Commencement Date. Without limitation, Tenant shall provide all cleaning, painting, janitorial services, rubbish disposal, periodic exterior waterproofing treatments to the Building, window caulking, maintenance of all gas, water, electric and other utility lines from public ways to the Demised Premises, and shall repair, maintain and replace all landscaping, roads, parking areas, and walkways appurtenant to the Demised Premises, and shall provide all snowplowing services thereto. Tenant shall provide a copy of all current vendor contracts, if any, relating to the foregoing to Landlord at least annually and from time to time otherwise upon Landlord’s request.

 

11.           INSURANCE.

 

A.             Tenant shall maintain at its own cost and expense insurance policies insuring against loss by fire, lightning, the perils of extended coverage and malicious mischief covering the Demised Premises and the other Improvements in the Demised Premises and other perils as more fully described in Exhibit G.

 

B.              So long as Tenant performs its obligations in Paragraph A of this Section, Landlord hereby waives all rights of recovery against Tenant and any other occupant(s) of the Demised Premises and any of their agents and employees for damage or destruction to any and all of the Improvements, including without limitation, the Building, arising out of fire or other casualty whether or not caused by acts or negligence of the aforementioned persons. Tenant hereby waives all rights of recovery against Landlord, its agents and employees for damage or destruction to any and all of the Improvements, including without limitation, the Building and to

 

271

 

Tenant’s trade fixtures, equipment and inventory arising out of fire or other casualty whether or not caused by the acts or negligence of Landlord, its agents or employees.

 

C.              Tenant shall maintain at its own cost and expense public liability and other insurance in accordance with the requirements of Exhibit G.

 

D.              Any insurance required to be provided by Tenant pursuant to this Lease may be provided by blanket insurance covering the Demised Premises and other locations of Tenant, provided such blanket insurance complies with all of the other requirements of this Lease with respect to the type of insurance covered by blanket policies. If Tenant elects to insure the Demised Premises under any blanket insurance policy, Tenant shall furnish to Landlord a certificate of insurance showing the Demised Premises as a location insured under any such blanket insurance policy to the extent of the limits required in Exhibit G. Tenant shall furnish to Landlord and any Fee Mortgagee as to which Tenant has received a notice containing such mortgagee’s name and address a duplicate original copy or certificate of the policies of insurance required to be carried by Tenant.

 

E.              Notwithstanding anything to the contrary contained herein, Tenant may carry any required insurance on trade fixtures and equipment described in Section 17 under a program of self-insurance or to carry insurance with deductibles in excess of part or all of the amounts of insurance required under Exhibit G hereunder.

 

F.              If Tenant fails to perform any covenant in this Section and such failure continues for more than three (3) days after written notice, then, without limiting any of Landlord’s other rights and notwithstanding any other provision of this Lease concerning notice and cure of defaults, Landlord may but need not obtain such insurance, and Tenant shall pay the cost thereof upon demand as Additional Rent.

 

12.          REQUIREMENTS OF LAW AND FIRE INSURANCE. Tenant shall comply with and shall from time to time conform the Demised Premises to every applicable requirement of law, duly constituted authority, Board of Fire Underwriters having jurisdiction or of the carriers of all insurance on the Demised Premises (all of the foregoing being hereinafter called “Legal Requirements”). Tenant shall have the right upon giving notice to Landlord to contest any obligations imposed upon Tenant pursuant to the provisions of this Section and to defer compliance during the pendency of such contest, if the failure of Tenant to so comply will not subject Landlord to civil or criminal penalty or liability. Landlord shall cooperate with Tenant in such contest (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and shall execute any documents reasonably required in furtherance of such purpose. Tenant shall not apply for any change in zoning applicable to the Land or the Demised Premises without Landlord’s prior written consent, not to be unreasonably withheld, conditioned or delayed.

 

13.          ALTERATIONS. Tenant may at its own expense from time to time, during the term hereof, make such alterations, additions, improvements and changes, structural or otherwise (hereinafter called “Alterations”), in and to the Demised Premises which it may deem necessary or desirable, provided such Alterations shall not reduce the value of the Demised Premises. Tenant, in making any Alterations, shall use materials of equal or better quality than those used

 

272

 

in the construction of the Demised Premises and comply with all Legal Requirements. Tenant shall obtain or cause to be obtained all building permits, licenses, temporary and permanent certificates of occupancy and other governmental approvals that may be required in connection with the making of Alterations. Landlord shall cooperate with Tenant in the obtaining thereof (so long as Landlord’s cooperation does not involve (a) incurring obligations or liability or material expense to Landlord unreimbursed by Tenant or (b) breach of any covenants binding on Landlord or the Demised Premises, including, without limitation, any mortgage) and shall execute any documents required in furtherance of such purpose. Tenant may, but shall not be obligated to, remove any Alteration so long as such removal does not materially and adversely affect any heating, ventilating, mechanical, electrical, structural, roof or life safety elements of the Building and Tenant shall repair all damage that results from such removal and restore the Demised Premises to a functional condition (including the filling of all floor and wall holes, the removal of all disconnected wiring back to junction boxes and the replacement of all damaged ceiling tiles). Upon completion of any Alteration that is not Cosmetic Work, Tenant shall promptly deliver to Landlord plans showing such Alteration as built. “Cosmetic Work” shall mean painting, carpeting and wall coverings and the like and the addition or deletion of interior non structural partitions, provided such work does not materially and adversely affect any roof, structural, mechanical, electrical, utility, fire protection or life safety systems or other systems or equipment of the Building.

 

14.          ACCESS TO DEMISED PREMISES. Tenant shall permit Landlord to enter upon the Demised Premises at all reasonable times approved by Tenant to examine the Demised Premises, and during the six (6) month period preceding the Expiration Date, to exhibit the Demised Premises to prospective tenants, provided that Landlord shall not unreasonably interfere with the conduct of business therein.

 

15.          UTILITIES.

 

A.             Tenant shall arrange and pay for any and all utility services to the Demised Premises, including, without limitation, telecommunications, water, gas, electricity and fuel used by it in the Demised Premises. Tenant shall pay all sewer charges assessed by the municipal authority having jurisdiction. The failure or interruption of any utility services shall be at Tenant’s sole risk and Landlord shall not suffer any reduction in any rent on account thereof.

 

B.              Tenant shall have the sole right to apply for, claim and receive any rebate, reimbursement, credit, or payment from any utility company providing service to the Building resulting from Tenant’s installation of energy saving equipment in or on the Building.

 

16. SUBORDINATION, NON DISTURBANCE AND ATTORNMENT. This Lease shall become subject and subordinate to the lien of any Fee Mortgagee of the entire fee interest of the Demised Premises, and any renewals, modifications or extensions thereof, provided that a Subordination, Non Disturbance and Attornment Agreement (“SNDA”) substantially in the form annexed hereto as Exhibit D (or a reasonably equivalent form that is reasonably acceptable to Tenant and the applicable Fee Mortgagee) is executed, acknowledged and delivered by such Fee Mortgagee to Tenant. If the Fee Mortgagee requires that this Lease

 

273

 

have priority over such mortgage, Tenant shall, upon request of the Fee Mortgagee, execute, acknowledge and deliver to the Fee Mortgagee an agreement acknowledging such priority.

 

17. TRADE FIXTURES.

 

A.             All trade fixtures and equipment whether owned by Tenant or leased by Tenant from a Lessor/Owner (hereinafter called the “Equipment Lessor”) installed in the Demised Premises, regardless of the manner or mode of attachment, shall be and remain the property of Tenant or any such Equipment Lessor and may be removed by Tenant or any such Equipment Lessor at any time. In no event (including a default under this Lease) shall Landlord have any liens, rights or claims in Tenant’s or Equipment Lessor’s trade fixtures and equipment and Landlord agrees to execute and deliver to Tenant and Equipment Lessor, within ten (10) days after request therefor, any document reasonably required by Tenant or Equipment Lessor in order to evidence the foregoing, so long as the same is reasonably acceptable to Landlord and any Fee Mortgagee. Tenant shall promptly repair all damage to the Building caused by the removal of any such trade fixtures or equipment. Notwithstanding anything to the contrary in this Lease, the following shall not constitute trade fixtures or equipment for purposes of this Lease and neither Tenant nor any Equipment Lessor shall own or have any right to remove the same (and, without limiting the generality of the foregoing, the following shall not be subject to the provisions of this Paragraph A or Paragraph B of this Section 17): (i) the HVAC system, plumbing, alarm, electric, life safety and other building systems used to operate the Building or maintain the certificate of occupancy, and (ii) any “fixtures” as such term is defined in the applicable Uniform Commercial Code.

 

B.              In the event Tenant shall enter into any arrangement to finance all or any portion of its trade fixtures or equipment either before or after the installation thereof in the Demised Premises and whether such financing shall be in the form of a mortgage, financing agreement, equipment lease, equipment sale leaseback or otherwise and in the event the lessor or secured party thereunder shall provide written notice to Landlord that it requires a copy of any default sent by Landlord to Tenant under this Lease also to be sent to such person (hereinafter called the “Owner/Secured Party”), then Landlord upon receipt of such requirement shall simultaneously send a copy of any default notice to such Owner/Secured Party at the address furnished to Landlord; provided that Landlord’s failure to deliver any such copy to the Owner/Secured Party shall not affect Landlord’s exercise of any right or remedy under this Lease in any way whatsoever. The copy of any such default notice shall be sent to such Owner/Secured Party in the same manner as notices are required to be sent and in the same manner as such notice is being sent to Tenant hereunder. Landlord further agrees that any such Owner/Secured Party shall have the right, but not the obligation, to remedy or cure any default of Tenant under this Lease within the same period of time granted to Tenant to remedy or cure any such default under this Lease.

 

C. All trade fixtures and other personal property (which term shall include without limitation food and inventory) of any person that is located on the Demised Premises shall be at the sole risk of Tenant. Landlord shall not be liable for any loss or damage to person or property resulting from any accident, theft, vandalism or other occurrence on the Demised Premises, including damage resulting from water, wind, ice, steam, explosion, fire, smoke,

 

274

 

chemicals, the rising of water or leaking or bursting of pipes or sprinklers, defect, failure or any other cause.

 

18. ASSIGNMENT.

 

A.             Subject to paragraph (B) of this Section, Tenant may sublet all or any part of the Demised Premises, or license the use of any portion thereof or assign this Lease, but Tenant and Guarantor shall nevertheless continue to remain liable hereunder. Any assignee of the Lease and any sublessee or licensee of all or substantially all of the Demised Premises shall become jointly and severally liable to Landlord, and any such transferee shall upon Landlord’s request execute and deliver an instrument in confirmation thereof. In the case of any assignment of this Lease or any sublease or licensee of all or substantially all of the Demised Premises, Tenant shall promptly deliver to Landlord a true and complete copy of the transfer instruments. No transfer of all or any portion of the Demised Premises or Landlord’s consent thereto shall be deemed a waiver of the provisions of this Section, or a release of Tenant or any Guarantor.

 

B.              So long as the Minimum Credit Test is not met (however the following provisions of this paragraph B shall not apply at any time when the Minimum Credit Test is met), Tenant shall not assign this Lease or sublet or license all or substantially all of the Demised Premises to any transferee unless (x) such transferee (1) operates at least five (5) other grocery stores and (2) has Tangible Net Worth” (as defined in Section 25 below) of at least One Hundred Million Dollars ($100,000,000) or (y) if such transferee does not meet the requirements of (1) and (2) then such transferee must be approved by Landlord, such approval not to be unreasonably withheld, conditioned or delayed. If Tenant desires to so transfer this Lease to a person who does not meet the requirements of (1) and (2) in the preceding sentence, then Tenant shall give notice of such intended transfer to Landlord together with reasonable information on its grocery store business and its audited financial statements for the three most recent years showing the credit of the proposed transferee and the proposed terms of the transfer. Upon receiving such information Landlord shall have thirty (30) days to elect by written notice to Tenant to do one of the following (and any failure of Landlord to affirmatively elect one or the other shall be deemed to be an election by Landlord to consent to such transfer: (a) approve such transfer, (b) disapprove such transfer, or (c) terminate the Term of this Lease on any date which is no sooner than one-hundred twenty (120) days after such election notice and no later than one-hundred eighty (180) days after such election. If Landlord elects to terminate this Lease and thereafter within one-hundred twenty (120) days enters into a lease or other agreement with Tenant’s proposed transferee, any transfer payment that was to have been made to Tenant by such transferee as specifically disclosed in writing as such to Landlord in the proposed terms of the transfer furnished to Landlord as provided above shall be paid by Landlord to Tenant out of the first rent amounts received by Landlord from such transferee until the transfer payment is paid to Tenant in full. For purposes of the previous sentence, a “transfer payment” shall include proposed sublease income in excess of the rent under this Lease, and in such cases Landlord’s payment to Tenant shall be a liquidated amount equal to such excess rent at a discount rate of ten percent (10%).

 

C. If Tenant assigns this Lease, Landlord, when giving notice to said assignee with respect to any default, shall also give a copy of such notice upon Tenant originally named herein or its successor of whom Landlord shall have been given written notice (being herein

 

275

 

called “Original Tenant”), and no notice of default shall be effective as against a Tenant until a copy thereof is given to the Original Tenant. The Original Tenant shall have the same period after the giving of such notice to cure such default as is given to Tenant under this Lease. If this Lease terminates or this Lease and the Term hereof cease and expire because of a default of such assignee, Landlord shall promptly give the Original Tenant notice thereof. The Original Tenant shall have the option, to be exercised by notifying Landlord in writing within thirty (30) days after receipt by the Original Tenant of Landlord’s notice, to cure any default and become Tenant under a new lease for the remainder of the term of this Lease (including any Renewal Periods if applicable) upon all of the same terms and conditions of this Lease as it may have been amended by agreement between Landlord and Original Tenant, provided, however, that at the time of making any such election Original Tenant cures all defaults under the Lease. In the event Original Tenant assigns this Lease and it shall thereafter be rejected in a bankruptcy or similar proceeding brought by or against such assignee, a new lease identical to this Lease shall be entered into between Landlord and Original Tenant, provided that Original Tenant cures any monetary defaults and any other defaults that are capable of being cured. Any new lease created under this Section shall commence on the date of termination or rejection of this Lease, as applicable. Notwithstanding the foregoing, if Landlord, in its sole discretion delivers to the Original Tenant and Guarantor a release as to all liability under this Lease as theretofore amended, the Original Tenant shall not have the foregoing option.

 

D. In the case of a sublease of all or substantially all of the Demised Premises for the remainder of the Term and so long as the Minimum Credit Test or the requirements of Section 1 8B are met, Landlord shall, within thirty (30) days following Tenant’s request, deliver to Tenant a recognition and attornment agreement following the form attached hereto as Exhibit  D and otherwise subject to Landlord’s reasonable approval, executed and acknowledged by Landlord, for the benefit of such subtenant; provided that such subtenant executes and delivers an instrument reasonably satisfactory to Landlord confirming that such subtenant is jointly and severally liable under this Lease. Further, Landlord shall, within ten (10) days after Tenant’s request, shall request its Fee Mortgagee to deliver to Tenant an SNDA for the benefit of any such subtenant (and Landlord shall reasonably cooperate with Tenant, at no out of pocket cost to Landlord, in connection with obtaining any requisite consent from any Fee Mortgagee).

 

19. TITLE AND AUTHORITY.

 

A.             Landlord warrants and represents that Landlord is the owner of the fee simple of the Demised Premises and that other than any mortgages held by Fee Mortgagees that have provided an SNDA to Tenant in accordance with this Lease or such other liens or encumbrances that do not interfere with Tenant’s use of the Demised Premises or liens or encumbrances arising on account of any act or omission by Tenant or persons acting under Tenant or on account of Tenant’s failure to perform its obligations under this Lease, or matters set forth in Exhibit B 1, Landlord shall not voluntarily impose any other lien or encumbrance on the Demised Premises.

 

B.              Landlord and Tenant each warrant and represent to the other that (a) each is duly organized, validly existing and in good standing under the laws of the jurisdiction in which such entity was organized; (b) each has the authority to own its property and to carry on its business as contemplated under this Lease; (c) each has duly executed and delivered this

 

276

 

Lease; (d) the execution, delivery and performance by each of this Lease (i) are within its powers, (ii) have been duly authorized by all requisite action, (iii) will not violate any provision of law or any order of any court or agency of government, or any agreement or other instrument to which it is a party or by which it or any of its property is bound, (iv) will not render it insolvent or (v) will not result in the imposition of any lien or charge on any of its property, except by the provisions of this Lease; and (e) the Lease is a valid and binding obligation of each in accordance with its terms.

 

C. Landlord and Tenant have executed the Memorandum of Lease (hereinafter called the “Memorandum”) attached hereto as Exhibit E simultaneously with the execution of this Lease. Upon the expiration of the Term each agree to execute and deliver a recordable termination of the Memorandum, which covenant shall survive termination. Tenant irrevocably appoints Landlord its attorney in fact so to execute such termination of the Memorandum if Tenant fails to do so within ten (10) days of written request, which power is coupled with an interest and shall automatically be transferred to any successor or assign of Landlord’s interest in the Demised Premises.

 

20.          QUIET ENJOYMENT. Landlord covenants and agrees that provided no default remains uncured beyond any applicable notice and cure period, Tenant shall peaceably and quietly have, hold and enjoy the Demised Premises and all rights, easements, appurtenances and privileges belonging or in anyway appertaining thereto during the full term of this Lease and any extension thereof subject always to the terms of this Lease, provisions of law, and matters of record to which this Lease is or may become subordinate. This covenant is in lieu of any other so called quiet enjoyment covenant, whether express or implied.

 

21.          UNAVOIDABLE DELAYS. If either party shall be prevented or delayed from punctually performing any obligation or satisfying any condition under this Lease by any strike, lockout, labor dispute, inability to obtain labor or material, Act of God, governmental restriction, regulation or control, enemy or hostile governmental action, civil commotion, insurrection, sabotage, fire or other casualty or by any other event similar to the foregoing and beyond the control of such party, then the time to perform such obligation or to satisfy such condition shall be postponed by the period of time consumed by the delay. Time is of the essence for the performance of all monetary obligations under this Lease and the foregoing shall never apply to the performance of monetary obligations.

 

22. END OF TERM. Upon expiration or other termination of the term of this Lease, Tenant shall peaceably and quietly quit and surrender the Demised Premises and all Alterations in the good order and condition Tenant is required to maintain the same and remove all trade fixtures, equipment and other personal property whether or not bolted or otherwise attached and all of Tenant’s signs wherever located; and in all cases shall repair damage that results from such removal. Any fixtures and equipment that Tenant or Owner/Secured Party does not remove following the expiration or other termination of the Term of this Lease shall be deemed to be abandoned by Tenant, shall at once become the property of Landlord, and may be disposed of in such manner as Landlord shall see fit; and Tenant shall pay the cost of removal and disposal to Landlord within thirty (30) days after demand; provided, however, that if this Lease shall be terminated as the result of a default by Tenant, then trade fixtures and equipment shall not be deemed abandoned until sixty (60) days after notice of such termination is given to

 

277

 

Owner/Secured Party. Tenant or Owner/Secured Party shall have the right at any time prior to the date such fixtures and equipment shall be deemed abandoned to remove the same from the Demised Premises. Should Tenant or anyone claiming by, through or under Tenant hold over in possession after the Expiration Date or earlier termination of this Lease, such holding over shall not be deemed to extend the Term or to renew this Lease, but without limiting Landlord’s other rights and remedies on account of such breach the tenancy thereafter shall continue as a tenancy at sufferance from month-to-month upon the terms and conditions herein contained, provided, however that rent shall be charged and paid at one hundred fifty percent (150%) of the Fixed Annual Rent and Additional Rent in effect during the twelve (12) month period immediately preceding the Expiration Date or earlier termination.

 

23.        LANDLORD’S DEFAULT.

 

A.             Landlord shall be in default hereunder if its fails to comply with any of its express obligations set forth in this Lease within thirty (30) days following written notice and opportunity to cure; provided, however, Landlord will not be in default if said default could not reasonably be cured within such period of thirty (30) days, and Landlord promptly commences and thereafter proceeds with due diligence and in good faith to cure such default.

 

B.              In the event that a Fee Mortgagee shall have given written notice to Tenant that it is the holder of a mortgage covering the Demised Premises, and provided such notice includes the address to which notices to the Fee Mortgagee are to be sent, Tenant agrees that in the event it shall give written notice to Landlord to cure a default of Landlord as provided for in this Section, Tenant shall give a copy of said notice to the Fee Mortgagee. Tenant agrees that the Fee Mortgagee may cure or remedy such default within the time permitted to Landlord pursuant to this Section; provided that in addition the Fee Mortgagee shall be entitled to such further time as may be reasonably necessary for the Fee Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Fee Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion.

 

24. ADDITIONAL CHARGES. If Tenant shall be in default hereunder, Landlord, after thirty (30) days notice that Landlord intends to cure such default (but only ten (10) days notice if such default concerns any breach of Tenant’s insurance obligations under Section 11), shall have the right, but not the obligation, to cure such default and Tenant shall pay to Landlord, upon demand, as Additional Rent, the reasonable cost thereof. Other than such insurance defaults, Landlord shall not commence to cure any default of such a nature that it could not reasonably be cured within such period of thirty (30) days, if Tenant commences to cure same within said period, and thereafter proceeds with reasonable diligence and in good faith to cure such default.

 

25.        TENANT’S DEFAULT.

 

A. If Tenant fails to pay Fixed Annual Rent or Additional Rent when due and such default continues for ten (10) days after written notice; or if a default occurs on account of any asset sale, merger or consolidation on the part of Guarantor in violation of paragraph D of

 

278

 

this Section; or if a petition is filed by Tenant (or Guarantor) for insolvency or for appointment of a receiver, trustee or assignee or for adjudication, reorganization or arrangement under any bankruptcy act or other applicable law or if any similar petition is filed against Tenant (or Guarantor) and such petition is not dismissed within sixty (60) days thereafter; or if Tenant fails to perform any other covenant or condition under this Lease, Landlord may give Tenant a written notice specifying the nature of the default of such other covenant or condition and if Tenant does not, within thirty (30) days after receipt of such written notice (but only three (3) days in the case of failure to perform Tenant’s insurance obligations under Section 11), cure such other default or, if such default is of such a nature that it could not reasonably be cured within such period of thirty (30) days, and Tenant does not commence and proceed with reasonable diligence and in good faith to cure such default then, after the expiration of such thirty (30) day period (or longer period if such default cannot reasonably be cured within said thirty (30) day period), Landlord shall have the right, in addition to the rights set forth in the preceding sentence, to seek damages or an injunction as to such failure to perform, or after the expiration of such thirty (30) day period Landlord may, but only during the continuance of such default, send a notice to Tenant terminating this Lease and reenter the Demised Premises and dispossess Tenant and any other occupants thereof, remove their effects not previously removed by them, and hold the Demised Premises as if this Lease had not been made; and Tenant waives the service of any additional notice of intention to reenter or to institute legal proceedings to that end. If any payment of Fixed Annual Rent, Additional Rent, or other sum owing Landlord is not paid within five (5) days after the same is due, then in addition to all other remedies hereunder Tenant shall pay an administrative late charge to Landlord equal to five percent (5%) of the overdue amount in question, which late charge will be due upon demand as Additional Rent.

 

B. After a termination, dispossess or removal in accordance with this Section, (1) the Fixed Annual Rent and Additional Rent shall be paid up to the date of such dispossess or removal, (2) Landlord may re-let the Demised Premises or any part or parts thereof either in the name of Landlord or otherwise, for a term or terms which may, at the option of Landlord, be less than or exceed the period which would otherwise have constituted the balance of the term of this Lease, and (3) Tenant shall pay to Landlord, as liquidated damages, any deficiency between the Fixed Annual Rent and Additional Rent due hereunder and the amount, if any, of the rents actually collected by Landlord on account of the new lease or leases of the Demised Premises for each month of the period which would otherwise have constituted the balance of the term of this Lease (not including any Renewal Periods, the commencement of which shall not have occurred prior to such dispossess or removal). In computing such liquidated damages there shall be added to said deficiency the expenses which Landlord incurs in connection with re-letting the Demised Premises, including reasonable attorneys’ and brokerage fees, tenant inducements such as free rent, moving expense reimbursements, tenant improvement allowances, brokerage commissions, fees for legal services, and other expenses of preparing the Demised Premises for reletting (“Reletting Expenses”). Such Reletting Expenses shall be paid to Landlord within ten (10) days of demand and all other liquidated damages shall be paid by Tenant in monthly installments on the dates specified in this Lease for payment of Fixed Annual Rent and any suit brought to collect the amount of the deficiency for any month shall not prejudice in any way the rights of Landlord to collect the deficiency for any subsequent month by a similar proceeding. Landlord shall not be liable for failure to re-let the Demised Premises or, in the event that the Demised Premises are re-let, for failure to collect the rent under such re-letting, unless Landlord shall not have used its commercially reasonable efforts to re-let the Demised Premises for the reasonable

 

279

 

rental value thereof and to collect the rent under such re-letting. Landlord shall use its commercially reasonable efforts to mitigate damages.

 

C.              Landlord hereby expressly waives any and all rights granted by or under any present or future laws to reenter the Demised Premises, to dispossess Tenant or any other occupant thereof or to remove their effects not previously removed by them, or to terminate this Lease for any reason or in any manner other than as set forth in this Section 25. Tenant hereby expressly waives any and all rights granted by or under any present or future laws to remain in possession, cure any defaults or redeem its leasehold for any reason or in any manner other than as set forth in this Section 25. The provisions of this Section 25 shall survive the early termination of the Term.

 

D.              Any sum due from Tenant under this Lease is not paid within five (5) days after the same is due, such amount shall bear interest from the date due at the rate of one and one-half (1 1/2%) percent for each month (or ratable portion thereof) the same remains unpaid. Nothing in this Lease shall limit the right of Landlord to prove and obtain in proceedings for bankruptcy or insolvency an amount equal to the maximum allowed by any statute or rule of law in effect at the time; and Tenant agrees that the fair value for occupancy of all or any part of the Demised Premises at all times shall never be less than the Fixed Annual Rent and all Additional Rent payable from time to time.

 

E. The Guaranty given by Guarantor of this Lease is a material inducement to Landlord’s entering into this Lease. If at any time the Guarantor of this Lease shall sell all or a material portion of its assets or shall merge or consolidate with another entity and, in either case, if (1) Guarantor (including the resulting entity of any merger or consolidation) has a tangible net worth immediately after the transaction that is less than Guarantor’s tangible net worth immediately prior to the transaction, and (2) Guarantor’s tangible net worth immediately after the transaction is less than the Minimum Credit Test, then the transaction shall be a default under this Lease for which there is no cure period entitling Landlord to exercise all of the rights and remedies under this Section. If at any time the existing Guarantor desires to assign the Guaranty to another person and for such person to assume all of the obligations and liabilities under the Guaranty, and if the proposed successor Guarantor’s tangible net worth is greater than the Minimum Credit Test, Tenant may present evidence of such proposed successor Guarantor’s tangible net worth to Landlord in the form of financial statements for (A) the most recent fiscal year of the proposed successor Guarantor audited by a nationally recognized firm of certified public accountants and (B) the most recent fiscal quarters since such fiscal year certified to by Guarantor’s chief financial officer, together with a form of Guaranty identical in form to the form of Guaranty attached to this Lease as Exhibit F to be executed and delivered by the proposed successor Guarantor. Upon Landlord’s written approval of such financial statements as demonstrating a tangible net worth of the proposed successor Guarantor greater than the Minimum Credit Test (which approval will not be unreasonably withheld, conditioned or delayed) and upon the execution and delivery to Landlord of such form of Guaranty by the proposed successor Guarantor, the existing Tenant (if, but only if the Lease is being assigned to a successor Tenant) and Guarantor shall be released from all liability under the Lease and Guaranty and the successor Tenant and Guarantor shall become fully liable to Landlord under the Lease and Guaranty. Thereafter and as an obligation of the then successor Tenant under this Lease, such successor Guarantor shall annually and quarterly continue to provide such financial

 

280

 

statements to Landlord demonstrating that it continues to meet the Minimum Credit Test for those provisions of this Lease requiring such as a condition of being relieved from certain Lease obligations otherwise applicable. As used in this Lease “Guarantor” means the Guarantor then fully liable under its Guaranty to Landlord. “Tangible net worth” means the net worth as shown on such financial statements prepared in accordance with generally accepted accounting principles consistently applied and disregarding any value attributable to good will or other intangible assets and amounts owed by shareholders, officers or Affiliates except to the extent such amounts owed by Affiliates would ordinarily and customarily be consolidated on Tenant’s financial statements. “Minimum Credit Test” means a tangible net worth as shown on such fiscal year and fiscal quarter financial statements of at least Five Hundred Million Dollars ($500,000,000).

 

26. DESTRUCTION.

 

A.             In the event of any damage or destruction by fire, the elements, or casualty (hereinafter called “Destruction”) to all or any part of the Building or any other Improvements in the Demised Premises, Tenant shall commence promptly, and with due diligence continue to restore same to substantially the same condition as existed immediately preceding the Destruction, except as otherwise provided in paragraph B of this Section. If the Destruction is partial, Tenant shall complete the restoration within two hundred seventy (270) days after the Destructions, subject to Unavoidable Delays. If the Destruction is total, Tenant shall complete the restoration within eighteen (18) months following the Destruction, subject to Unavoidable Delays. In no event shall Fixed Annual Rent or any Additional Rent abate on account of any Destruction.

 

B.              If, as a result of any Destruction, fifty percent (50%) or more of the total floor area of the Building is damaged, destroyed or, in Tenant’s reasonable opinion rendered untenantable, during the last two (2) years of the Initial Term or during any Renewal Term (but this shall not apply at any other time), Tenant may elect to terminate this Lease by giving notice to Landlord of such election on or before the date that is ninety (90) days after the Destruction, stating the date of termination, which shall be not more than thirty (30) days after the date on which such notice of termination shall have been given, and (1) upon the date specified in such notice this Lease and the term hereof shall cease and expire and (2) any Fixed Annual Rent and Additional Rent shall be paid until such date of termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant. In the event that Tenant elects to terminate this Lease as a result of the Destruction referenced above, Tenant shall cause all insurance proceeds to be paid to Landlord including business interruption insurance proceeds.

 

C. Except in the case of paragraph B of this Section, Insurance proceeds shall be deposited with a bank or trust company acceptable to Landlord and Tenant and under the control of Landlord and Tenant, as trustees, or, if the Fee Mortgagee shall be a bank, trust company, insurance company or other entity engaged in mortgage lending then such proceeds shall be deposited with such Fee Mortgagee and shall be held and disbursed by it, as trustee, for restoration in accordance with customary construction lending practice and procedures. Any excess insurance proceeds shall be paid to Tenant at the conclusion of the restoration so long as Tenant is not then in default beyond any applicable cure period.

 

281

 

27. EMINENT DOMAIN.

 

A.             In the event of an actual taking for any public or quasi-public use by any lawful power or authority by exercise of the right of condemnation or of eminent domain or by agreement between Landlord and those having the authority to exercise such right (hereinafter called “Taking”) of the entire Building, then (1) this Lease and the Term shall cease and expire as of the date of vesting of title or transfer of possession, whichever occurs earlier, as a result of the Taking, and (2) any Fixed Annual Rent and Additional Rent shall be paid until such termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant.

 

B.              (1) In the event of a Taking of twenty (20%) or more of the Demised Premises, or in the event of a Taking resulting in a reduction of twenty (20%) percent or more of the parking spaces (unless Landlord provides adequate and sufficient additional contiguous parking areas in substitution therefor reasonably acceptable to Tenant), or in the event of a Taking resulting in a divided Building or parking area such that passage between the divided portions of the parking area is not possible, or in the event of permanent denial of reasonably adequate access to the Demised Premises or Building on account of a Taking which in Tenant’s reasonable judgment makes it economically unfeasible to operate Tenant’s business at the Demised Premises, then Tenant may elect to terminate this Lease by giving notice of termination to Landlord on or before the date which is ninety (90) days after receipt by Tenant of notice that the Taking in question. Said notice of termination shall state the date of termination, which date of termination shall be not more than thirty (30) days after the date on which such notice of termination is given to Landlord, and (a) upon the date specified in such notice of termination this Lease and the term hereof shall cease and expire, and (b) any Fixed Annual Rent and Additional Rent shall be paid until the date of termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant.

 

(2) If Tenant does not elect to terminate this Lease as aforesaid, then the award or payment for the Taking shall be used by Tenant for restoration as hereinafter set forth and Tenant shall promptly commence and with due diligence continue to restore the portion of the Demised Premises remaining after the Taking to substantially the same condition and tenantability as existed immediately preceding the Taking. Tenant shall complete the restoration within two hundred seventy (270) days after the Destruction, subject to Unavoidable Delays. Taking proceeds shall be paid, held and disbursed in the same manner as insurance proceeds under Section 26C and there shall be no abatement or reduction in Fixed Annual Rent or any Additional Rent. Any taking proceeds remaining after the restoration is complete shall be divided equally between Landlord and Tenant.

 

C. If this Lease is terminated under any provision of this Section 27, so long as Tenant is not then in breach of this Lease beyond any applicable cure period, any specific damages that are expressly awarded to Tenant on account of its relocation expenses and specifically so designated shall belong to Tenant. Except as provided in the preceding sentence of this paragraph, Landlord reserves to itself, and Tenant releases and assigns to Landlord, all rights to damages accruing on account of any Taking or by reason of any act of any public authority for which damages are payable. Tenant agrees to execute such further instruments of assignment as may be reasonably requested by Landlord, and to turn over to Landlord any

 

282

 

damages that may be recovered in any proceeding or otherwise; and Tenant irrevocably appoints Landlord as its attorney-in-fact with full power of substitution so to execute and deliver in Tenant’s name, place and stead all such further instruments if Tenant shall fail to do so after 10 days notice.

 

28.            THIRD PARTY LITIGATION. If Landlord, Landlord’s adviser or its mortgagees are made parties to any litigation commenced by or against Tenant by or against any person claiming through Tenant with respect to the Demised Premises, Tenant agrees to indemnify Landlord in the manner provided in Section 38 and in addition pay, as Additional Rent, all costs of Landlord in connection with such litigation including reasonable counsel fees and litigation costs, except in the sole instance where Landlord or Tenant have legal claims in the litigation against one another or where Landlord has been adjudicated in any litigation to have acted with gross negligence or willful misconduct. Without limitation, the foregoing includes foreclosure or enforcement of any lien, attachment or mortgage on the Demised Premises resulting from the act or omission of Tenant, but shall not include any Fee Mortgage or other lien created by Landlord.

 

29.            WAIVER OF DISTRAINT. Landlord hereby expressly waives any and all rights granted by or under any present or future laws to levy or distrain for rent, in arrears, in advance or both, upon all goods, merchandise, equipment, trade fixtures, furniture and personal property of Tenant or any nominee of Tenant in the Demised Premises, delivered or to be delivered thereto.

 

30. ESTOPPEL CERTIFICATES. Upon the request of either party, at any time and from time to time, Landlord and Tenant agree to execute and deliver to the other, within thirty (30) days after such request, a written instrument that may be relied upon by the requesting party, its potential purchasers, lenders, investors, subtenants and/or assignees (and any of their respective successors and assigns), duly executed, (a) certifying if such is the case that this Lease has not been modified and is in full force and effect or, if there has been a modification of this Lease, that this Lease is in full force and effect as modified, stating such modifications, (b) specifying the dates to which the Fixed Annual Rent and Additional Rent have been paid, (c) stating whether or not, to the knowledge of the party executing such instrument, the other party hereto is in default and, if such party is in default, stating the nature of such default, (d) stating the Commencement Date and Expiration Date, (e) stating which options to renew the term have been exercised, if any; and (f) any other information that may reasonably requested by the requesting party and customarily addressed in an estoppel certificate.

 

31. NOTICES. Any notices, consents, approvals, submissions or demands (“Notices”) given under this Lease or pursuant to any law or governmental regulation, including, without limitation, those by Landlord to Tenant or by Tenant to Landlord shall be in writing. Unless otherwise required by law, governmental regulation or this Lease, any such Notice shall be deemed given if sent by registered or certified mail, return receipt requested, postage prepaid or by nationally recognized overnight delivery service (a) to Landlord, at the address of Landlord as hereinabove set forth and with like copy given to Daniel A. Taylor, Esq. or Primo Fontana, Esq., DLA Piper, 33 Arch Street 26th Floor, Boston MA 02110 and/or such other persons and addresses as Landlord may designate by notice to Tenant; or (b) to Tenant, then one copy shall be delivered to the attention of the General Counsel, another shall be delivered to the attention of

 

283

 

the Senior Vice President of Real Estate, and another shall be delivered to the attention of the Senior Director of Properties and Administration, all at 2 Paragon Drive, Montvale, New Jersey 07645 or to such other addresses as Tenant may designate by notice to Landlord. Any such Notice shall be deemed given three (3) business days after being sent by registered or certified mail, return receipt requested, postage prepaid, and one business (1) day when sent by overnight delivery. A party’s attorney may give Notices on behalf of such party.

 

32.            BROKER. Each party represents and warrants to each other there is no broker, agent, finder or other person with whom it has dealt in connection with the negotiation, execution and delivery of this Lease other than those persons named in that certain Agreement of Sale and Leaseback dated as of November 2, 2010 entered into between Tenant and Landlord (or Affiliates of each) regarding a transaction that led to this Lease.

 

33.            LIENS. Tenant shall keep the Demised Premises (and Landlord’s interest therein) and Tenant’s leasehold (and Tenant’s interest therein) free of, and shall within thirty (30) days discharge, any attachment, lien, security interest or other encumbrance that arises as a result of any act or omission of Tenant or persons acting by, through or under Tenant. Without limitation, Tenant will not permit or suffer any mechanic’s or materialmen’s or other liens to stand against the Demised Premises for any labor or material furnished in connection with work of any character performed, any services provided or any other act, omission or obligation on the part or at the direction of Tenant or persons claiming by, through or under Tenant, and Landlord will not permit any such liens for work or material furnished the Landlord to stand against said premises (the foregoing shall not imply that Landlord has any responsibility to furnish any work or material). However, Landlord and Tenant shall respectively have the right to contest the validity or amount of any such lien, provided that the payment of such amount is bonded during the pendency of such contest, but upon the final determination of such contest the party responsible for such lien shall immediately pay any judgment rendered with all proper costs and charges (including reasonable attorneys’ fees) and shall have the lien released at its own expense. In lieu of bonding either party may obtain other security acceptable to the other party in such party’s sole discretion. Any contest hereunder shall be subject to all requirements set forth in any Fee Mortgage.

 

34.            DEFINITION OF LANDLORD. The term “Landlord” as used herein, means Landlord named herein and any subsequent owner of Landlord’s estate hereunder. Any owner of Landlord’s estate hereunder shall be relieved of all liability under this Lease after the date that it ceases to be the owner of Landlord’s estate (except for any liability arising prior to such date) and the party succeeding to Landlord’s estate shall assume all liability of Landlord arising from and after it becomes owner of Landlord’s estate. The foregoing shall be self-operative but Landlord and Tenant shall upon the request of either execute and deliver an instrument acknowledging the foregoing.

 

35.            ADJOINING OR ADJACENT PROPERTY. Landlord and Tenant shall each promptly forward to the other any notice or other written communication received by it from any owner of property adjoining or adjacent to the Demised Premises or from any municipal or other governmental authority in connection with any hearing or other administrative proceeding relating to the use of the Demised Premises or any adjoining or adjacent property. Tenant may, at its sole cost and expense, in its own name and/or in the name of Landlord, appear in any such

 

284

 

proceeding. Landlord shall fully cooperate with Tenant (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and shall, without limitation, make such appearances and furnish such information as may be reasonably required by Tenant. Landlord agrees to execute any instruments reasonably requested by Tenant in connection with any such proceeding.

 

36. ENVIRONMENTAL LAWS.

 

A. “Environmental Laws” shall mean all federal, state or local laws, ordinances, rules, regulations, or policies, whether now or hereafter enacted, governing the use, clean-up, remediation storage, treatment, transportation, manufacture, refinement, handling, release, production or disposal of Hazardous Materials including, without limitation: (1) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, (42 U.S.C. Sections 9601, et. seq.) as amended by the Superfund Amendments and Reauthorization Act; (2) the Hazardous and Solid Waste Act amendments of 1984 Pub L 98-616 (42 U.S.C. Section 699); (3) the Hazardous Materials Transportation Act, (49 U.S.C. Section 1801, et. seq.); (4) the Resource Conservation and Recovery Act of 1976, (42 U.S.C. Sections 6901, et. seq.); or (5) the Toxic Substances Control Act, and any amendments thereto and any regulations adopted and publications promulgated pursuant thereto, or any other federal, state or local environmental laws, ordinances, rules, or regulations whether now or hereafter enacted. “Hazardous Materials” shall mean any hazardous wastes or hazardous substances as defined in any Environmental Law including, without limitation, any asbestos, PCB, toxic, noxious or radioactive substances, methane, volatile hydrocarbons, petroleum, petroleum by-products, industrial solvents or any other material or substance which could cause or constitute a health, safety or other environmental hazard to any person or property.

 

B. Tenant, at its sole cost and expense, shall until the Expiration Date of this Lease comply with all Environmental Laws and shall be responsible for all Hazardous Materials on or migrating from the Land and Demised Premises prior to, on and after the Commencement Date, it being acknowledged that Tenant or its Affiliate owned the Land and Demised Premises prior to the Commencement Date. Tenant shall provide Landlord with copies of any notices pertaining to any governmental proceedings or actions under any Environmental Law (including requests or demands for entry onto the Demised Premises and/or Land for purposes of inspection regarding the handling, disposal, clean-up or remediation of Hazardous Materials or claims, penalties, fines or assessments) within fifteen (15) days after receipt thereof. Landlord shall cooperate with Tenant (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and provide such documents, affidavits and information as may be reasonably necessary for Tenant to comply with all Environmental Laws.

 

C. If required by governmental authority or if Landlord has a reasonable basis to believe a release of Hazardous Materials may have occurred or a threat of release exists on or from the Land or Demised Premises or Hazardous Materials activities have taken place on the Land or Demised Premises that do not conform to Environmental Laws, then Landlord may, but need not, perform appropriate testing in a commercially reasonable manner and the reasonable costs thereof shall be reimbursed to Landlord by Tenant upon demand as Additional Rent. Tenant shall execute affidavits, representations and the like from time to time at

 

285

 

Landlord’s request concerning Tenant’s actual knowledge and belief regarding the presence or absence of Hazardous Materials at the Land and Demised Premises. In all events, and without limitation, Tenant shall indemnify all Indemnitees, expressly including without limitation all Fee Mortgagees, in the manner elsewhere provided in this Lease with respect to Hazardous Materials on or migrating from the Land and Demised Premises prior to, on and after the Commencement Date (and for these purposes, the loss indemnified shall include without limitation any costs of investigation or remediation, and any claim of personal injury or property damage to any person); provided, however, that such indemnity shall not include and Tenant shall not be responsible for Hazardous Materials migrating on to the Land from the land of third parties. The covenants of this Section shall survive the Term. Tenant shall from time to time upon Landlord’s request confirm all of the foregoing covenants directly to mortgagees.

 

37. LEASEHOLD MORTGAGE.

 

A.             Tenant, and its successors and assigns (including, without limitation, any subtenant of Tenant), may, from time to time and without Landlord’s prior written consent, mortgage all or any portion of its right, title and interest in and to this Lease under one leasehold mortgage at any one time, or two leasehold mortgages given as part of a single financing transaction, to an Institutional Lender (each, a “Leasehold Mortgage”), and assign any or all rights under this Lease and any subleases as collateral security for such Leasehold Mortgage; provided that all rights acquired under such Leasehold Mortgage shall be subject to all of the terms, covenants and conditions of this Lease, and to all rights and interests of Landlord, none of which terms, covenants or conditions is or shall be waived by Landlord by reason of the right given to so mortgage such interest in this Lease. In no event shall Tenant have any right to mortgage or encumber Landlord’s fee interest in the Demised Premises. The term “Leasehold Mortgage” shall include whatever security instruments that may be used in the locale of the Demised Premises, such as, without limitation, deeds of trust, security deeds and conditional deeds, as well as financing statements, assignment of leases and rents, security agreements and other documentation required pursuant to the Uniform Commercial Code. The term “Leasehold Mortgage” shall also include any instruments required in connection with a sale-leaseback transaction. An “Institutional Lender” is a bank, trust company, savings and loan association, pension fund, endowment fund, insurance company, other institutional pool of recognized status or a governmental authority empowered to make loans or issue bonds or any other recognized institution regularly engaged in the making of mortgage loans that has not less than $100,000,000 in assets. The holder of any Leasehold Mortgage shall be called a “Leasehold Mortgagee.”

 

B.              If Tenant and/or Tenant’s successors and assigns (including, but not limited to, any sublessee of Tenant) shall grant a Leasehold Mortgage, and if Tenant shall send to Landlord a true copy thereof, together with a notice specifying the name and address of the Leasehold Mortgagee (“Mortgage Notice”), Landlord agrees that as long as any such Leasehold Mortgage shall remain unsatisfied of record or until a notice of satisfaction is given by the Leasehold Mortgagee to Landlord, the following provisions shall apply:

 

(1) There shall be no cancellation, surrender or modification of this Lease by joint action of Landlord and Tenant without the prior consent of the Leasehold Mortgagee;

 

286

 

(2)           Landlord shall, upon serving Tenant with any notice of default, simultaneously serve a copy of such notice upon the Leasehold Mortgagee. The Leasehold Mortgagee shall thereupon have the same period to remedy or cause to be remedied the defaults complained of, and Landlord shall accept such performance by or at the instigation of such Leasehold Mortgagee as if the same had been done by Tenant; provided that in the case of defaults that cannot be cured by the payment of money in addition the Leasehold Mortgagee shall be entitled to such further time to remedy or cause to be remedied the defaults complained of as may be reasonably necessary for the Leasehold Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Leasehold Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion.. Nothing herein shall be construed as requiring a Leasehold Mortgagee to cure any default. Landlord’s failure to deliver any such copy to a Leasehold Mortgagee shall not affect the Landlord’s exercise of any right or remedy under the Lease in any way whatsoever;

 

(3)           If any default shall occur which, pursuant to any provision of this Lease, entitles Landlord to terminate this Lease, and if before the expiration of twenty (20) days from the date of the giving of notice of termination upon such Leasehold Mortgagee, such Leasehold Mortgagee shall have notified Landlord of its desire to nullify such notice and shall have paid to Landlord all Fixed Annual Rent and Additional Rent herein provided for which are then in default, and shall have complied (or caused compliance) with all of the other requirements of this Lease, if any are then in default, then, in such event, Landlord shall not be entitled to terminate this Lease and any notice of termination previously given shall be void and of no effect;

 

(4)           Notwithstanding anything in this Lease to the contrary, any sale of Tenant’s leasehold interest in any proceeding for the foreclosure of the Leasehold Mortgage, or the assignment or transfer of Tenant’s leasehold interest in lieu of the foreclosure of any Leasehold Mortgage, shall be deemed to be a permitted sale, transfer or assignment;

 

(5)           If not required to be held by the Fee Mortgagee, the proceeds from any insurance policies or arising from a Taking may be held by any institutional Leasehold Mortgagee and distributed pursuant to the provisions of this Lease;

 

(6)           The Leasehold Mortgagee may be added to the “Loss Payable Endorsement” of any and all insurance policies required to be carried by Tenant hereunder on the condition that the insurance proceeds are to be applied in the manner specified in this Lease and that the Leasehold Mortgage shall so agree; except that the Leasehold Mortgage may provide a manner for disposition of such proceeds as remain after full compliance with the restoration covenants of this Lease, if any, otherwise payable to Tenant (but not such proceeds, if any, payable to Landlord, any Fee Mortgagee or jointly to Landlord or Tenant) pursuant to the terms of this Lease; and

 

(7)           Landlord shall provide Leasehold Mortgage with prompt notice of any legal proceeding or arbitration between Landlord and Tenant. Unless the Leasehold Mortgage provided otherwise, Leasehold Mortgagee shall have the right to intervene in any such

 

287

 

proceeding and be made a party to such proceeding, and the parties hereby consent to such intervention. Landlord’s failure to deliver any such notice to a Leasehold Mortgagee shall not affect the Landlord’s exercise of any right or remedy under the Lease in any way whatsoever.

 

Tenant, in any Mortgage Notice served upon Landlord under this Section, may exclude any or more of the above provisions, and if so excluded, such provisions shall not be effective.

 

C. Landlord shall, upon request, execute, acknowledge and deliver to each Leasehold Mortgagee, an agreement prepared at the sole cost and expense of Tenant, in form reasonably satisfactory to such Leasehold Mortgagee and Landlord, between Landlord, Tenant and Leasehold Mortgagee, separately agreeing to all of the provisions of this Section.

 

38.            INDEMNITY. Except as otherwise expressly set forth in this Lease, Tenant shall assume exclusive control of the Demised Premises and all areas pertaining thereto including all appurtenances, improvements, utilities, water bodies, grounds, sidewalks, walkways, driveways and parking facilities, and Tenant shall bear the sole risk of all related tort liabilities. To the greatest extent permitted by applicable law, Tenant shall indemnify, save harmless and defend Landlord, Landlord’s adviser and mortgagees and their respective officers, directors, managers, members, partners, agents and employees, (“Indemnitees”) from all liability, claim, damage, cost or loss (including reasonable fees and litigation costs) arising in whole or in part out of, or in any manner connected with (i) any injury, loss, theft or damage to any person or property while on or about the Demised Premises, or (ii) any condition of the Demised Premises, or the possession and use thereof (including any failure to vacate at the end of the Term) or any activity permitted or suffered on the Demised Premises (including Hazardous Materials), or (iii) any breach of any covenant, representation or certification by Tenant or persons acting under Tenant, or (iv) any negligent act or omission anywhere by Tenant or persons acting under Tenant, in each case paying the same to Landlord on demand as Additional Rent, except to the extent such liability results from the negligence or willful misconduct of Landlord or the other Indemnitees. Without implying that other covenants do not survive, the covenants of this Section shall survive the Term. Tenant shall immediately respond and assume the investigation, defense and expense of all of the foregoing matters. Landlord or any Indemnitee, at its sole cost and expense, may join in such defense with counsel of its choice.

 

39.            LIMITATION OF LANDLORD’S LIABILITY. Notwithstanding anything contained to the contrary in this Lease, whether express or implied, it is agreed that Tenant will look only to Landlord’s fee interest in and to the Demised Premises for the collection of any judgment (or other judicial process) requiring the payment of money by Landlord in the event of a breach or default under this Lease by Landlord with respect to any claim whatsoever related to the Demised Premises, and no other property or assets of Landlord or of Landlord’s adviser or of any Fee Mortgagee or its or their managers, members, directors, officers, trustees, beneficiaries, shareholders, partners, joint venturers (disclosed or undisclosed) shall be subject to suit or to levy, execution or other enforcement procedures for the satisfaction of any such judgment (or other judicial process). No officer, director, manager, member, shareholder, trustee, beneficiary, partner, agent, attorney or employee of Landlord or of Landlord’s adviser or of any Fee Mortgagee shall ever be personally or individually liable; nor shall Landlord, Landlord’s adviser or any Fee Mortgagee or such persons ever be answerable or liable in any equitable judicial

 

288

 

proceeding or order beyond the extent of their interest in the Demised Premises. In no event shall Landlord, Landlord’s adviser or any Fee Mortgagee or any such persons ever be liable to Tenant for indirect or consequential damages.

 

40.            BOOKS AND RECORDS. Tenant shall at all times keep and maintain full and correct records and books of account of the operations of the Demised Premises in accordance with generally accepted accounting principals consistently applied and shall accurately record and preserve the records of such operations in accordance with its customary records retention policy. Notwithstanding that there has been no Percentage Rent Event, Tenant shall report the gross sales from the Demised Premises to Landlord annually for each fiscal year of Tenant no later than thirty (30) days following the end of such fiscal year, such report to be certified by Tenant’s chief financial officer. Landlord shall keep such information confidential at all times in accordance with the terms of Exhibit J and may only release such information to Landlord’s constituent members, and so long as such persons execute and deliver to Tenant a Confidentiality Agreement with Tenant in the form attached hereto as Exhibit J (“Confidentiality Agreement”) whether or not Tenant signs such Confidentiality Agreement, also to its lenders and prospective lenders and to prospective purchasers of Landlord’s interest in the Demised Premises. Upon an Event of Default, Tenant shall permit Landlord, Landlord’s accountants and Fee Mortgagees reasonable access thereto, with the right to make copies and excerpts therefrom upon reasonable advance notice to Tenant.

 

41.            SATELLITE DISH. If permitted by applicable law, Tenant shall have the right to place on the roof or wall of the Demised Premises at Tenant’s sole cost and expense, a satellite dish (hereinafter called the “Dish”) for transmission of data (both receiving and sending) between Tenant’s various operations and its headquarters in accordance with all laws and governmental regulations.

 

42.            NO PRESUMPTION AGAINST DRAFTER. Landlord and Tenant agree and acknowledge that this Lease has been freely negotiated by Landlord and Tenant. In any event of any ambiguity, controversy, dispute or disagreement over the interpretation, validity or enforceability of this Lease or any of its covenants, terms or conditions, no inference, presumption or conclusion whatsoever shall be drawn against Tenant by virtue of Tenant’s having drafted this Lease.

 

43.            SUCCESSORS AND ASSIGNS; AFFILIATES. The covenants and agreements contained in this Lease shall bind and inure to the benefit of the successors and assigns of each party. As used in this Lease “Affiliate” (whether or not capitalized) shall mean, with respect to any person, any person controlled by, controlling, or under common control with such person; and “control” shall mean any direct ownership interest or right through the exercise of voting or approval rights or otherwise, to exercise decision-making authority generally.

 

44.            CAPTIONS. The captions preceding the Sections of this Lease are intended only as a matter of convenience and for reference and in no way define, limit or describe the scope of this Lease or the intent of any provision hereof.

 

45.            INVALIDITY OF CERTAIN PROVISIONS. If any provision of this Lease shall be invalid or unenforceable, the remainder of the provisions of this Lease shall not be

 

289

 

affected thereby and each and every provision of this Lease shall be enforceable to the fullest extent permitted by law.

 

46.            CHOICE OF LAW/JURISDICTION. This Lease, and the rights and obligations of the parties hereto, shall be interpreted and construed in accordance with the laws where the Demised Premises are located (the “State”), without regard to the State’s internal conflict of law principles. Any disputes arising out of this Lease or between Landlord and Tenant shall be subject to the exclusive jurisdiction of the state courts of the State.

 

47.            NO WAIVER. The failure of either party to seek redress for violation of or to insist upon the strict performance of, any term, covenant or condition contained in this Lease shall not prevent a similar subsequent act from constituting a default under this Lease. Without limitation, no written consent by Landlord or Tenant to any act or omission that otherwise would be a default shall be construed to permit other similar acts or omissions. Neither party’s failure to seek redress for violation or to insist upon the strict performance of any covenant, nor the receipt by Landlord of rent with knowledge of any breach of covenant, shall be deemed a consent to or waiver of such breach. No breach of covenant shall be implied to have been waived unless such is in writing, signed by the party benefiting from such covenant and delivered to the other party; and no acceptance by Landlord of a lesser sum than the Fixed Annual Rent, Additional Rent or any other sum due shall be deemed to be other than on account of the installment of such rent or other sum due. Nor shall any endorsement or statement on any check or in any letter accompanying any check or payment be deemed an accord and satisfaction; and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such installment or pursue any other right or remedy. The delivery of keys (or any other act) to Landlord shall not operate as a termination of the Term or an acceptance or surrender of the Demised Premises. The acceptance by Landlord of any rent following the giving of any default and/or termination notice shall not be deemed a waiver of such notice.

 

48.            ATTORNEY’S FEES. In the event that either Landlord or Tenant employ an attorney to enforce or defend any of the conditions, covenants, rights or obligations of this Lease (including, without limitation, a default by either party), then the prevailing party shall be entitled to all reasonable attorney fees and all other reasonable out-of-pocket litigation costs (including, but not limited to filing fees, expert reports and testimony, court costs and other usual costs of litigation of this type) incurred by such prevailing party.

 

49.            WAIVER OF TRIAL BY JURY. To the extent such waiver is permitted by law, the parties waive trial by jury in any action or proceeding brought in connection with this Lease or the Demised Premises.

 

50. MISCELLANEOUS. Other than contemporaneous instruments executed and delivered of even date, if any, this Lease contains all of the agreements between Landlord and Tenant relating in any way to the Demised Premises and supersedes all prior agreements and dealings between them. There are no oral agreements between Landlord and Tenant relating to this Lease or the Demised Premises. This Lease may be amended only by a written instrument executed and delivered by both Landlord and Tenant. The provisions of this Lease shall bind Landlord and Tenant and their respective successors and assigns. Where the phrases “persons

 

290

 

acting under” Landlord or Tenant or “persons claiming through” Landlord or Tenant or similar phrases are used, the persons included shall be assignees, sublessees, licensees or other transferees or successors of Landlord or Tenant as well as invitees or independent contractors of Landlord or Tenant, and all of the respective employees, servants, contractors, agents and invitees of Landlord, Tenant and any of the foregoing. As used herein, “monetary default” shall mean a default that can be substantially cured solely by the payment of money and nothing more and “non-monetary default” shall mean a default that cannot be substantially cured solely by the payment of money and northing more. If either party is granted any extension, election or other option, to be effective the exercise (and notice thereof) shall be unconditional, irrevocable and must be made strictly in accordance with the prescribed terms and times; otherwise its purported exercise shall be void and ineffective. The enumeration of specific examples of a general provisions or use of the word “including” shall not be construed as a limitation of the general provision. Unless a party’s approval or consent is required by the express terms of this Lease not to be unreasonably withheld, such approval or consent may be withheld in the party’s sole discretion. The submission of a form of this Lease or any summary of its terms shall not constitute an offer by Landlord to Tenant; the leasehold shall only be created and the parties bound when this Lease is executed and delivered by both Landlord and Tenant. Nothing herein shall be construed as creating the relationship between Landlord and Tenant of principal and agent, or of partners or joint venturers or any relationship other than landlord and tenant. This Lease and all consents, notices, approvals and all other related documents may be reproduced by any party by any electronic means or by electronic, photographic or other reproduction process and the originals may be destroyed; and each party agrees that any reproductions shall be as admissible in evidence in any proceeding as the original itself (whether or not the original is in existence and whether or not reproduction was made in the regular course of business), and that any further reproduction of such reproduction shall likewise be admissible. If any payment in the nature of interest provided for in this Lease shall exceed the maximum interest permitted under controlling law, as established by final judgment of a court, then such interest shall instead be at the maximum permitted interest rate as established by such judgment. Landlord and Tenant expressly agree that there are and shall be no implied warranties of merchantability, habitability, suitability, fitness for a particular purpose or of any other kind arising out of this Lease, and there are no warranties or representations other than those expressly set forth in this Lease. Without limitation, where Tenant in this Lease indemnifies or covenants for the benefit of present and future Fee Mortgagees, such agreements are for the benefit of present and future Fee Mortgagees as third party beneficiaries; and at the request of Landlord, Tenant from time to time will confirm such matters directly with such Fee Mortgagee.

 

51.            COUNTERPARTS. This Lease may be executed in any number of counterparts, each of which shall be deemed to be one and the same instrument. A facsimile, email, PDF or electronic signature shall be deemed an original signature.

 

52.            INCORPORATION OF STATE LAW PROVISIONS. Certain provisions/ sections of this Lease and certain additional provisions/sections that are applicable or required by laws of the state in which the Demised Premises are located may be amended, described or otherwise set forth in more detail on Exhibit I attached hereto, which such Exhibit by this reference, is incorporated into and made a part of this Lease. In the event of any conflict between such state law provisions and any provision herein, the state law provisions shall control.

 

291

 

[SIGNATURE PAGE FOLLOWS]

 

292

 

	
 
    	
IN WITNESS WHEREOF this Lease has been

duly   executed under as of the Effective Date.
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
 
    
	
 
    	
 
    	
WE APP BALDWIN LLC, a Delaware limited   liability company
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    
	
WITNESS:
    	
 
    	
 
    
	
 
    	
 
    	
PATHMARK STORES, INC., a
    
	
 
    	
 
    	
Delaware   corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   Vice President and Secretary
    

 

Signature Page to Lease By and Between
 WE APP BALDWIN LLC and PATHMARK STORES, INC.

 

293

 

EXHIBIT A

 

SITE PLAN OF DEMISED PREMISES

 

 

294

 

EXHIBIT B2

 

LEGAL DESCRIPTION OF THE LAND

 

 

295

 

EXHIBIT B2

 

TITLE MATTERS AND ENCUMBRANCES

 

1. Taxes, tax liens, tax sales, water rates, sewer rents and assessments not yet due and payable.

 

296

 

EXHIBIT C

 

REMEDIAL WORK

 

(Tenant Performs Construction with Landlord Reimbursement)

 

Reimbursement Cap: $425,000.00

 

Remedial Work Completion Date: the third anniversary of the Effective Date of the Lease

 

C. 1 Construction Documents. Tenant shall prepare, at Tenant’s expense, and deliver to Landlord Construction Documents (meaning plans and specifications prepared by design professionals licensed to prepare such plans and specifications which reasonably fix and describe the work to be performed by Tenant contractors) for roof replacements, parking area repairs and replacements, heating, ventilating and air conditioning upgrades, environmental remediation, asbestos abatement and automation improvements in an amount totaling at least the amount of the Reimbursement Cap, all as Landlord and Tenant shall reasonably and mutually agree. The Construction Documents shall substantially conform to and describe such work as so agreed, and when such Construction Documents are approved by Landlord, such approval not to be unreasonably withheld, conditioned or delayed, the work described therein shall be the “Remedial Work” referred to herein. Tenant shall provide at least 6 copies of the Construction Documents to Landlord. Tenant shall be solely responsible for the liabilities and expenses of all architectural and engineering services relating to the Remedial Work and for the adequacy and completeness of the Construction Documents submitted to Landlord and for the Remedial Work itself, notwithstanding Landlord’s approval thereof.

 

C.2 Remedial Work Reimbursement. Upon Landlord’s approval of the Construction Documents showing the Remedial Work to be performed, Tenant shall cause the Remedial Work to be performed in accordance with all of the terms and requirements of the Lease including Exhibit G, and the reasonable out-of-pocket costs to Tenant of performing the Remedial Work shall be eligible for Reimbursement in the manner provided below up to but not in excess of the Reimbursement Cap listed above. All costs for the Remedial Work in excess of the Reimbursement Cap shall be paid for entirely by Tenant, and Landlord shall not provide any reimbursement therefor. Any Remedial Work not completed by the Remedial Work Completion Date listed above shall be ineligible for reimbursement from Landlord, and such Remedial Work shall be paid for solely by Tenant.

 

Notwithstanding anything in the Lease to the contrary, prior to the Remedial Work Completion Date Tenant shall have no obligation to perform any Remedial Work if the cost of same will exceed the Reimbursement Cap, unless Tenant determines, in its sole, reasonable judgment, that such work is necessary and prudent for the proper maintenance and operation of the Demised Premises.

 

Reimbursement of the reasonable out-of-pocket costs to Tenant of performing Remedial Work up to the Reimbursement Cap and by the Remedial Work Completion Date shall be disbursed to Tenant by Landlord in no more than four disbursements the requests for each of which shall not

 

297

 

be submitted more frequently than monthly. For each disbursement, Tenant shall submit a requisition package to Landlord with (1) an itemization of the costs being requisitioned, (2) a certificate by an officer of Tenant that all such costs are reasonable out-of-pocket costs to Tenant of performing Remedial Work and have been incurred and paid for by Tenant, that to the actual knowledge of Tenant the Remedial Work included within the requisition has been performed substantially in accordance with the Construction Documents and in accordance with the Lease, (3) appropriate back-up documentation including, without limitation, lien releases (in a form reasonably approved by Landlord) and paid invoices and bills and (4) a statement by Tenant’s chief financial officer that such officer knows of no default under the Lease on the part of Tenant nor of any event which with the giving of notice or the passage of time or both could ripen into a default under the Lease. The final requisition package shall further include a copy of all applications for and copies of all governmental permits issued in connection with the Remedial Work and the plans referred to in Section 13 of the Lease for any Alterations. Notwithstanding anything herein or in the Lease to the contrary, Landlord shall not be obligated to reimburse any costs of Remedial Work if a default under the Lease has occurred and is continuing. Landlord shall pay the reimbursement to Tenant within thirty (30) days following Landlord’s receipt of the completed package. In the event that Landlord fails to pay the reimbursement within such thirty (30) day period, Tenant may deduct the reimbursebable amount against Rent due under the Lease.

 

C.3 Performance of Remedial Work by Tenant. No Remedial Work for which reimbursement is sought shall be performed except in accordance with the Construction Documents. In connection with its approval thereof, Landlord may delete from the Construction Documents any items or aspects of Remedial Work which in Landlord’s reasonable judgment (i) would increase the cost of operating the Building or performing any other work in the Building, (ii) are incompatible with the design, quality, equipment or systems of the Building, (iii) would require unusual expense to readapt the Premises to general grocery store use or (iv) otherwise do not comply with the provisions of this Lease. Prior to commencing any Remedial Work, Tenant shall submit to Landlord certificates of insurance on the part of Tenant contractors meeting the requirements of Exhibit G paragraph 1A (4). If any such Tenant contractor or any other person ever makes a claim against any Indemnitee (as such term is defined in Section 38) in connection with any Remedial Work, then Tenant shall indemnify such Indemnitee in the manner provided in the Lease against such claim.

 

C.4 Re-allocation of Reimbursement Cap. Upon the completion of the Remedial Work up to $20,000 of the Reimbursement Cap may be allocated to increase the “Reimbursement Cap” under any other lease between Tenant and any Affiliate of Landlord (except for that certain lease for space at 9210 Atlantic Avenue, Queens (Ozone Park), New York).

 

298

 

 

EXHIBIT D

 

FORM OF SUBORDINATION, NON-DISTURBANCE AND 
 ATTORNMENT AGREEMENT

 

KEY NO:

 

THIS AGREEMENT, made as of                      2010, by and among                       , a                        , and its successors and assigns, having an office at                                (hereinafter together with its successors and assigns called “Mortgagee”), WE APP Baldwin LLC, a Delaware limited liability company, having an office c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 (hereinafter called “Landlord”) and Pathmark Stores, Inc., a Delaware corporation having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”).

 

W I T N E S S E T H:

 

WHEREAS, Mortgagee has made a loan, or is about to make a loan to Landlord in the original principal amount of $                     evidenced by a promissory Note secured by, among other securities, a mortgage or deed of trust (hereinafter, as the same may be amended, supplemented or otherwise modified from time to time, called the “Mortgage”) covering a parcel or parcels of land owned by Landlord and described on Exhibit A annexed hereto and made a part hereof, together with the improvements now or hereafter erected thereon (said parcel or parcels of land and improvements thereon being hereinafter called the “Mortgaged Property”);

 

WHEREAS, by a certain lease heretofore entered into between Landlord and Tenant dated as of November    2010 and amended by [ ] (said lease and amendments being hereinafter collectively called the “Lease”), Landlord leased to Tenant the Mortgaged Premises together with the building now or hereafter erected on all or a portion of said premises (the Mortgaged Premises and the improvements on or to be erected thereon being thereinafter called the “Demised Premises”);

 

WHEREAS, a Memorandum of Lease dated November     2010 was recorded on November     , 2010 in the                in Book                   , Page                ;

 

WHEREAS, a copy of the Lease has been delivered to Mortgagee, the receipt of which is hereby acknowledged; and

 

WHEREAS, Mortgagee is unwilling to make said loan to Landlord unless the Lease is subordinate to the lien of the Mortgage; and

 

WHEREAS, Section 16 of the Lease provides that the Lease shall become subject and subordinate to the lien of a mortgage of the fee interest of the Demised Premises if and when a non-disturbance agreement is entered into with respect to such mortgage; and

 

WHEREAS, the parties desire to subordinate the Lease to the lien of the Mortgage, and to provide for the non-disturbance of Tenant by Mortgagee.

 

299

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.               Mortgagee hereby consents to and approves the Lease.

 

2.               Tenant covenants and agrees with Mortgagee that the Lease and any extensions, renewals, replacements or modifications thereof and Tenant’s interest in the premises under the Lease are and at all times shall subject and subordinate to the lien of the Mortgage, without regard to the order of priority of recording of the Mortgage and the Memorandum of the Lease, subject, however, to the provisions of this Agreement.

 

3.               Tenant certifies that the Lease is presently in full force and effect.

 

4.               Mortgagee agrees that so long as the Lease shall be in full force and effect and so long as Tenant is not in default (beyond any applicable notice and cure period) in the payment of fixed rent as set forth in the Lease, or in the performance of any of the terms, covenants or conditions of the Lease on Tenant’s part to be performed:

 

A.            Tenant shall not be named or joined as a party defendant or otherwise in any suit, action or proceeding for the foreclosure of the Mortgage or to enforce any rights under the Mortgage or the bond or note or other obligations secured thereby unless required by law to do so; and

 

B.            The possession by Tenant of the Demised Premises and the Tenant’s rights thereto shall not be disturbed, affected or impaired by, nor will the Lease or the term thereof be terminated or otherwise affected by (i) any suit, action or proceeding upon the Mortgage or the bond or note or other obligation secured thereby, or for the foreclosure of the Mortgage or the enforcement of any rights under the Mortgage or any other documents held by the Mortgagee, or by any judicial sale or execution or other sale of the Mortgaged Property, or by any deed given in lieu of foreclosure, or by the exercise of any other rights given to the Mortgagee by any other documents or as a matter of law, or (ii) any default under the Mortgage or the bond or note or other obligation secured thereby.

 

5.               Mortgagee hereby acknowledges and agrees that all trade fixtures and equipment whether owned by Tenant or any subtenant or leased by Tenant from a Landlord/Owner in the Demised Premises shall be subject to the provisions of Section 17 of the Lease.

 

6.               If the Mortgagee shall become the owner of the Mortgaged Property by reason of foreclosure of the Mortgage or otherwise, or if the Mortgaged Property shall be sold as a result of any action or proceeding to foreclose the Mortgage or by a deed given in lieu of foreclosure, the Lease shall continue in full force and effect, without necessity for executing any new lease, as a direct lease between Tenant, as tenant thereunder, and the then owner of the Mortgaged Property, as landlord thereunder, upon all of the same terms, covenants and provisions contained in the Lease, and in such event:

 

300

 

A.            Tenant shall be bound to such new owner under all of the terms, covenants and provisions of the Lease for the remainder of the term thereof (including the Renewal Periods, if Tenant elects or has elected to exercise its options to extend the term) and Tenant hereby agrees to attorn to such new owner and to recognize such new owner as landlord under the Lease; and

 

B.            Such new owner shall be bound to Tenant under all of the terms, covenants and provisions of the Lease for the remainder of the term thereof (including the Renewal Periods, if Tenant elects or has elected to exercise its options to extend the term) which terms, covenants and provisions such new owner hereby agrees to assume and perform; provided, however, that such new owner shall not be (i) obligated to complete any construction work required to be done by Landlord within or outside of the Demised Premises pursuant to the provisions of the Lease or to reimburse Tenant for any construction work done by Tenant; however this provision shall not relieve such new owner from any repair or maintenance obligations of Landlord expressly set forth in the Lease accruing or arising following new owner’s acquisition of fee title to the Mortgaged Property or impair any express setoff rights of Tenant expressly set forth in the Lease accruing or arising following new owner’s acquisition of fee title to the Mortgaged Property; (ii) required to make any repairs to the Mortgaged Property or to the Demised Premises or to perform any other construction or other work, including without limitation the restoration of the Demised Premises following any casualty or taking; (iii) liable for the return of security deposits or letters of credit, if any, paid or delivered by or on behalf of Tenant to Landlord, except to the extent such sums are actually received by such new owner (or any Mortgagee if such Mortgagee is not the new owner); (iv) bound by any payment of rents, additional rents or other sums which Tenant may have paid more than one (1) month in advance to any prior Landlord unless such sums are actually received by Mortgagee or if such prepayment shall have been expressly approved of in writing by such new owner (or any Mortgagee if such Mortgagee is not the new owner); (v) bound by any agreement amending, modifying or terminating the Lease made without Mortgagee’s prior written consent; (vi) bound by any assignment of the Lease or sublease of the Demised Premises, or any portion thereof, made prior to the time such new owner succeeded to Landlord’s interest other than if made pursuant to the provisions of the Lease; (vii) liable on account of any default on the part of Landlord occurring prior to such new owner’s succeeding to Landlord’s estate; or (viii) subject to any counterclaims, offsets or defenses that Tenant might have against Landlord.

 

7.               If Landlord shall default in the performance of the Lease Tenant shall give written notice thereof to Mortgagee and Mortgagee shall have the right, but not the obligation, to cure such default in accordance with Section 23 of the Lease (and as provided therein the Mortgagee shall be entitled to such further time to cure as may be reasonably necessary for the Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion)

 

8.               Landlord has agreed in the Mortgage and other loan documents that the rents payable under the Lease shall be paid directly by Tenant to Mortgagee upon the occurrence of a default by Landlord under the Mortgage or any other loan document. Accordingly, after notice is given by Mortgagee to Tenant that the rents under the Lease should be paid to or at the

 

301

 

direction of Mortgagee, Tenant shall pay to Mortgagee, or in accordance with the directions of Mortgagee, all rents and other monies thereafter due and to become due under the Lease. Tenant shall have no responsibility to ascertain whether such demand by Lender is permitted under the Mortgage or any other loan document. Landlord hereby waives any right, claim or demand it may have nor or hereafter have against Tenant by reason of such payment to Mortgagee, and any such payment to Mortgagee shall discharge the obligations of Mortgagee to make such payment under the Lease.

 

9.               Any notices or communications given under this Agreement shall be in writing and shall be given by registered or certified mail, return receipt requested, postage prepaid, (a) if to Mortgagee at the address of Mortgagee as hereinabove set forth or at such other address as Mortgagee may designate by notice, or (b) if to Landlord at the address of Landlord as hereinabove, or at such other address as Landlord may designate by notice, or (c) if to Tenant, then one copy shall be delivered to the attention of the Senior Vice President of Real Estate of Tenant, another shall be delivered to the attention of General Counsel of Tenant, and another shall be delivered to the Director of Properties & Administration of Tenant, all at 2 Paragon Drive, Montvale, New Jersey 07645 or at such other addresses as Tenant may designate by notice. During the period of any postal strike or other interference with the mail, personal delivery shall be substituted for registered or certified mail.

 

10.             This Agreement shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective heirs, personal representatives, successors and assigns.

 

11.             This Agreement contains the entire agreement between the parties and cannot be changed, modified, waived or cancelled except by an agreement in writing executed by the party against whom enforcement of such modification, change, waiver or cancellation is sought.

 

12.             This Agreement and the covenants herein contained are intended to run with and bind all lands affected thereby.

 

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

 

	
WITNESS:
    	
 
    	
 
    
	
 
    	
 
    	
MORTGAGEE:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
, a
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

302

 

	
 
    	
 
    	
LANDLORD:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
WE   APP BALDWIN LLC, a Delaware

limited   liability company
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PATHMARK   STORES, INC., a
    
	
 
    	
 
    	
Delaware   corporation
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title: Vice President and Secretary
    

 

303

 

	
WITNESS:
    	
 
    

 

MORTGAGEE ACKNOWLEDGMENT

 

STATE OF                          )

SS:

COUNTY OF                      )

 

ON THIS              day of                     2010, before me, the subscriber, personally appeared                    to me known, who being by me duly sworn, did depose and say that he is               of              the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

LANDLORD ACKNOWLEDGMENT

 

COMMONWEALTH OF MASSACHUSETTS

 

Suffolk, ss.

 

On this              day of                 2010, before me, the undersigned notary public, personally appeared                      , proved to me through satisfactory evidence of identification, which was a [current driver’s license] [a current U.S. passport] [my personal knowledge], to be the person whose name is signed on the preceding instrument and acknowledged the foregoing instrument to be his/her free act and deed as                    of WE APP Baldwin LLC.

 

 

	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
My   Commission Expires:
    

 

304

 

TENANT ACKNOWLEDGMENT

 

STATE OF NEW JERSEY)

SS

COUNTY OF BERGEN)

 

ON THIS               day of                      , 2010, before me, the subscriber, personally came Christopher W. McGarry, to me known, who being by me duly sworn, did depose and say that he is Vice President and Secretary of Pathmark Stores, Inc., the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

305

 

EXHIBIT A

 

LEGAL DESCRIPTION OF MORTGAGED PROPERTY

 

(Attached)

 

306

 

EXHIBIT E 

 

KEY NO:                                            

 

MEMORANDUM OF LEASE

 

THIS MEMORANDUM OF LEASE made as of November          , 2010 by WE APP BALDWIN LLC, a Delaware limited liability company, having an office at c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 Attn: Adam Winstanley (hereinafter called “Landlord”), and PATHMARK STORES, INC., a Delaware corporation, having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”).

 

W I T N E S S E T H:

 

1.              For and in consideration of the sum of TEN and no/100 Dollars ($10.00) and of other valuable considerations paid by Tenant to Landlord, the receipt and sufficiency of which are hereby acknowledged by Landlord, Tenant and Tenant hereby takes from Landlord that certain parcel of land (hereinafter called “Land”) described on Exhibit B and the buildings and other improvements now or hereafter erected on the Land together with the benefit of any and all easements, appurtenances, rights and privileges now or hereafter belonging thereto. The land is currently improved by an existing building consisting of 51,798 square feet of space (the “Building), as more particularly shown on the site plan attached hereto as Exhibit A. The Building and any buildings and improvements now or hereafter erected on the Land shall be hereinafter called “Improvements”. The Land and any Improvements now or hereafter erected thereon are hereinafter collectively called the “Demised Premises.” The Demised Premises have been leased to Tenant upon and subject to the covenants and agreements set forth in a certain agreement between Landlord and Tenant bearing even date herewith (hereinafter called the “Lease”).

 

2.               The Lease is in effect. The original term of the Lease shall continue to and include the date which is twenty (20) years after the day before the Commencement Date if the Commencement Date is the first day of a month, or twenty years (20) years after the last day of the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month.

 

3.               Tenant has the right and option to extend the term of the Lease from the date upon which it would otherwise expire for ten (10) separate renewal periods of five (5) years each (each such period being known as a “Renewal Period”). Said right and option, if exercised by Tenant, shall be in accordance with the terms and conditions of Section 4 of the Lease.

 

4.               The Lease contains the entire agreement between the parties. All persons are hereby put on notice of the existence of the Lease and are referred to the Lease for its terms and conditions. The Lease is on file in the offices of Tenant and the Landlord as hereinabove set forth.

 

5.               This Memorandum of Lease is prepared, signed and acknowledged solely for recording purposes under the laws of the State of New York, and is in no way intended to

 

307

 

change, alter, modify, amend or in any other way affect the rights, duties and obligations of Landlord and Tenant pursuant to the Lease; it being specifically understood and agreed between the parties that each has rights, duties and obligations imposed upon it in the Lease which are not expressly contained herein but are included herein by reference.

 

6. Upon expiration of the Lease term Landlord and its successors and assigns has irrevocably been named attorney-in-fact by Tenant in the Lease to execute, deliver and record a notice of termination of this Memorandum.

 

IN WITNESS WHEREOF this Memorandum of Lease has been duly executed as of the day and year first above written.

 

	
WITNESS:
    	
 
    	
   WE APP BALDWIN LLC, a Delaware

limited   liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
   PATHMARK STORES, INC., a
    
	
 
    	
 
    	
Delaware   corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   Vice President and Secretary
    

 

308

 

EXHIBIT A

 

DEMISED PREMISES

 

309

 

EXHIBIT B

 

LEGAL DESCRIPTION OF THE LAND

 

310

 

COMMONWEALTH OF MASSACHUSETTS

 

Suffolk, ss.

 

On this                day of November 2010, before me, the undersigned notary public, personally appeared                       , proved to me through satisfactory evidence of identification, which was a [current driver’s license] [a current U.S. passport] [my personal knowledge], to be the person whose name is signed on the preceding instrument and acknowledged the foregoing instrument to be his/her free act and deed as                           of WE APP Baldwin LLC.

 

 

	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
My   Commission Expires:
    

 

STATE OF NEW JERSEY)

SS

COUNTY OF BERGEN)

 

ON THIS           day of November, 2010, before me, the subscriber, personally came Christopher W. McGarry, to me known, who being by me duly sworn, did depose and say that he is the Vice President and Secretary of Pathmark Stores, Inc., the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

311

 

EXHIBIT F

 

 

UNCONDITIONAL GUARANTY

 

WHEREAS, Pathmark Stores, Inc., a Delaware corporation (“Tenant”) desires to enter into a certain lease (“Lease”) of even date concerning Demised Premises known as 1764 Grand Avenue, Baldwin, New York, with WE APP Baldwin LLC, a Delaware limited liability company (“Landlord”). (Terms used herein and not otherwise defined will have the meaning given in the Lease.)

 

WHEREAS, as an inducement to entering into the Lease Landlord has required that the undersigned The Great Atlantic & Pacific Tea Company, Inc. (“Guarantor”) unconditionally guarantees the performance of all obligations of Tenant under the Lease.

 

NOW, THEREFORE, for good and valuable consideration, intending to be legally bound hereby, Guarantor agrees as follows:

 

1.               Guarantor unconditionally and absolutely guarantees to Landlord (which shall include its legal representatives, successors and assigns) the due and punctual performance of each and all of the Tenant’s obligations under or related to the Lease, including the timely payment of all sums due therein. Tenant’s obligations hereby guaranteed include, without limitation, those arising under amendments or modifications to the Lease hereafter entered into by Tenant and Landlord, all of which shall be so guaranteed even though Guarantor hereafter does not consent to or approve the same (Guarantor hereby waiving all rights of consent or approval with respect to such amendments or modifications).

 

2.               Guarantor waives presentment for payment or performance, notice of nonpayment or performance, notice of default, demand, protest or notice or acceptance of this Guaranty, any rights Guarantor may have by reason of any forbearance, modification, amendment, extension or any indulgence whatsoever that Landlord may grant or to which Landlord and the Tenant may agree with respect to the Lease, any and all notice of every kind to which Guarantor might otherwise be entitled with respect to the incurring of any further obligation or liability by Tenant to Landlord, demand for payment, the presentment of any instrument for payment, the protest or nonpayment thereof and any and all defenses whatsoever excepting only Tenant’s performance as required by the terms of the Lease. Guarantor also waives, unless and until all of the obligations of Tenant are fully paid and performed, any right to be subrogated in whole or in part to any right or claim of Landlord against Tenant and any right to require the marshalling of any assets of the Tenant, which right of subrogation or marshalling might otherwise arise from any partial payment by the Guarantor. It is expressly understood and agreed that Guarantor’s liability hereunder shall be unaffected by (i) any amendment or modification whatsoever of the provisions of the Lease, (ii) any extension of time for performance under the Lease, (iii) any delay by Landlord in exercising any right under the Lease or this Guaranty (none of which shall ever operate as a waiver of such right), or (iv) the release of Tenant or any other guarantor from performance or observance of any of the agreements or conditions contained in the Lease by operation of law or otherwise, whether made with or without notice to Guarantor, including without limitation any impairment, modification, change, release, rejection, disaffirmance, or limitation of the liability of Tenant, or any other guarantor of the Lease, of their estate in

 

312

 

bankruptcy or insolvency resulting from the operation of any present or future provision of the Federal Bankruptcy Code or other similar or insolvency statute, or from the decision of any court. Guarantor covenants that Guarantor will cause Tenant to maintain and preserve the enforceability of the Lease, as the same may hereafter be modified or amended, and will not permit it to take or to fail to take action of any kind the taking of which or the failure to take might be the basis for a claim that Guarantor has any defense to its obligation hereunder other than timely performance in full of the Lease in accordance with its terms. The joint and several liability of Guarantor hereunder shall exist irrespective of the validity or enforceability of the Lease.

 

3.               This shall be an agreement of suretyship as well as of guaranty, and Landlord, without being required to proceed first against Tenant or any other person or entity, may proceed directly against Guarantor whenever Tenant fails to make any payment due or fails to perform any obligation now or hereafter owed to Landlord without first resorting to or exhausting any other remedy and without first having recourse to the Lease; provided, however, that nothing herein contained shall prevent Landlord from suing on the Lease with or without making Guarantor a party to the suit or from exercising any other rights thereunder and if such suit, or other remedy, is availed of, only the net proceeds therefrom, after deduction of all Landlord’s Costs of Collection (defined below) shall be applied in reduction of the amount then due on this Guaranty.

 

4.               Guarantor agrees to pay to Landlord, on demand, all costs and expenses, including reasonable attorneys’ fees and litigation expenses, which Landlord may incur in the enforcement of Tenant’s obligations under the Lease or the liability of Guarantor hereunder (“Costs of Collection”). “Costs of Collection” includes, without limitation, all out of pocket expenses incurred by the Landlord’s attorneys and all costs incurred by Landlord including, without limitation, costs and expenses associated with travel on behalf of Landlord, which costs and expenses are related to or in respect of Landlord’s efforts to collect and/or to enforce any of the obligations and/or to enforce any of its rights, remedies or powers against or in respect of either or both Tenant or Guarantor (whether or not suit is instituted in connection with such efforts).

 

5.             Guarantor represents and warrants to Landlord that (i) it has either examined the Lease or has had an opportunity to examine the Lease and has waived the right to examine; (ii) that it (and the individual acting on its behalf) has the full power, authority and legal right to execute and deliver this Guaranty; (iii) that this Guaranty is a binding legal obligation and is fully enforceable against Guarantor in accordance with its terms; (iv) that there is no action or proceeding pending or, to its knowledge, threatened against Guarantor before any court or administrative agency which might result in any material adverse change in its business or condition or in its assets; (v) that neither the execution nor delivery of this Guaranty nor fulfillment of nor compliance with the terms and provisions thereof will constitute a default under or result in the creation of any lien, charge or encumbrance upon any property or assets of Guarantor under any agreement or instrument to which it is now a party or by which Guarantor may be bound; and (vi) that Guarantor is the sole owner of all the common stock of Tenant and expects to derive financial benefit from the Lease.

 

313

 

6.               This Agreement shall be binding upon Guarantor and its legal representatives, successors and assigns, and shall inure to the benefit of Landlord and its legal representatives, successors and assigns, and is irrevocable until released in writing by Landlord. Each and every right, remedy and power hereby granted to Landlord or allowed it by law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by Landlord at any time and from time to time. The validity, construction and performance of this Guaranty shall be governed by the laws of the State where the Demised Premises are located (the “State”), without regard to conflict of law principles. If any clause or provision of this Guaranty should be held illegal or invalid by any court, the invalidity of such clause or provisions shall not affect any of the remaining clauses or provisions hereof. In case any agreement or obligation contained in this Guaranty should be held to be in violation of law, then such agreement or obligation shall be deemed to be the agreement or obligation of the Guarantor, as the case may be, to the full extent permitted by law. Each and every default hereunder or under the Lease shall give rise to a separate cause of action hereunder. The obligations and liabilities of hereunder shall be joint and several with any other guarantees given to Landlord in connection with the Lease. This Guaranty may be amended only by instrument in writing executed and delivered by both Landlord and Tenant. The provisions of this Guaranty shall bind Guarantor and its respective successors and assigns, and shall inure to the benefit of Landlord and its successors and assigns. This Guaranty and all consents, notices, approvals and all other documents relating hereto may be reproduced by photographic, microfilm, microfiche or other reproduction process and the originals thereof may be destroyed; and each party agrees that any reproductions shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not reproduction was made in the regular course of business) and that any further reproduction of such reproduction shall likewise be admissible in evidence.

 

7.               Guarantor consents to and agrees that the courts of the State shall have personal jurisdiction over Guarantor for any action brought on this Guaranty including the right to grant judgment against Guarantor personally together with interest on any judgment obtained by Landlord at the interest rate set forth in the Lease for late payments (but if the same shall be unlawful for any reason, then at the highest permissible interest rate). Guarantor further agrees and consents that venue, if any, for any such action shall be as set forth in the Lease. Guarantor waives and relinquishes any and all rights to removal of any such action to any other court. Guarantor also waives trial by jury in any judicial proceeding involving any matter in any way arising out of or relating to this Guaranty or the Lease.

 

8. Any notice, communication, request or other document or demand made under this Guaranty shall be in writing and shall be deemed given at the earlier of (i) the date received or (ii) three (3) business days after the date deposited in a United States Postal Service Depository, postage prepaid first class certified or registered mail, return receipt requested, addressed to Guarantor or Landlord, as the case may be, at the respective addresses set forth opposite their names below:

 

314

 

	
Landlord:
    
	
 
    
	
WE   APP Baldwin LLC
    
	
c/o   Winstanley Enterprises, LLC
    
	
150 Baker Avenue Extension, Suite 303

Concord, MA 01742
    
	
Attn.   Adam Winstanley
    
	
 
    
	
with   a copy similarly sent to:
    
	
 
    
	
DLA   Piper LLP (US)
    
	
33   Arch Street, 26th Floor
    
	
Boston, MA 02110
    
	
Attention: Daniel A. Taylor, Esq. or Primo   Fontana, Esq.
    
	
 
    
	
Guarantor:
    
	
 
    
	
The   Great Atlantic & Pacific Tea Company, Inc.

2   Paragon Drive
    
	
Montvale,   New Jersey 07645
    
	
Attn:   Senior Vice President of Real Estate
    
	
 
    
	
with   a copy similarly sent to
    
	
 
    
	
The   Great Atlantic & Pacific Tea Company, Inc.

2   Paragon Drive
    
	
Montvale,   New Jersey 07645
    
	
Attn:   General Counsel
    

 

Either party may change an address to which any such notice, communication, request or other document or demand is to be delivered to it or delivery of copies thereof by furnishing written notice of such change to the other party. Each party shall, when giving notices, send at least one (1) copy by Federal Express, U.S. Express Mail, or other overnight delivery service, to the addressee.

 

IN WITNESS WHEREOF, Guarantor has executed and sealed this Guaranty the day of November         , 2010.

 

	
WITNESS:
    	
 
    	
  THE GREAT ATLANTIC & PACIFIC
    
	
 
    	
 
    	
 TEA COMPANY, INC., a Maryland   corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
 
    	
Name:   Christopher W. McGarry 
    
	
 
    	
 
    	
 
    	
Title:   Senior Vice President
    

 

315

 

EXHIBIT G

 

INSURANCE

 

This Exhibit G shall be incorporated into the Lease, and where terms of this Exhibit conflict with these terms within the Lease, the terms of this Exhibit shall prevail and govern the Lease.

 

1.               INSURANCE.

 

A. Coverage. Tenant shall purchase and maintain insurance during the entire Term of the Lease and any period Tenant (or any party claiming by, through or under Tenant) occupies any portion of the Demised Premises, for the benefit of the Tenant and Landlord (as their interest may appear) with terms and coverages reasonably satisfactory to Landlord, and with insurers having a minimum A.M. Best rating of at least A/X, and with such increases in limits as Landlord may from time to time reasonably request, but initially Tenant shall maintain the following coverages in the following amounts:

 

(1)             Commercial General Liability Insurance naming Landlord, Landlord’s management, leasing and development agents and Landlord’s mortgagee(s) from time to time as additional insureds, with coverage for premises/operations, personal and advertising injury, products/completed operations and contractual liability with combined single limits of liability of not less than $1,000,000 for bodily injury and property damage per occurrence and not less than 2,000,000 in the aggregate and excess liability insurance with a limit not less than $20,000,000 per occurrence and aggregate. Notwithstanding anything to the contrary contained herein, Tenant’s obligation to maintain general liability insurance may be satisfied through a program of self-insurance whereby Tenant self-insures the first $3,000,000.00 per claim as long as the program is supported by an A-rated insurance company and its third party administrator.

 

(2)             Property insurance covering property damage and business interruption for the entire Demised Premises. Covered property shall include the Building, boilers and machinery, all tenant improvements, office furniture, trade fixtures, office equipment, merchandise and all other items Tenant’s property on the Demised Premises. Such insurance shall name Landlord and Fee Mortgagee(s) from time to time as additional loss payees as their interests may appear. Such insurance shall be written on an “all risk” of physical loss or damage basis including but not limited to the perils of fire, extended coverage, windstorm, vandalism, malicious mischief, terrorism, sprinkler leakage, flood, windstorm and earthquake, for the full replacement cost value of the covered items and other endorsements as Landlord shall reasonably request from time to time and in amounts that meet any co insurance clause of the policies of insurance with a deductible amount not to exceed $750,000. Such insurance shall include rent continuation coverage of no less than twelve (12) months. Such policy or policies shall provide that the proceeds of any loss shall be payable to Landlord and Tenant and to the holder (as its interest may appear) of any Fee Mortgage to which this Lease is subordinate so long as such holder and future holders of such Fee Mortgage are obligated to apply proceeds of insurance in the manner provided for in this Lease.

 

316

 

(3)             Workers’ Compensation Insurance and Employers Liability Insurance with statutory limits and automobile liability insurance (coverage must include owned, leased, hired and non owned vehicles) with a limit of at least $1,000,000 Combined Single Limit-Bodily Injury & Property Damage.

 

(4)             Tenant shall purchase or shall cause each Tenant contractor performing work on the Demised Premises to carry insurance protecting against claims set forth below which may arise out of or result from the contractor’s operations on the Premises and naming Landlord, Landlord’s management, leasing and development agents as additional insureds for Premises Operations and Completed Operations. Waiver of Subrogation to apply under all policies.

 

(1)           claims under workers’ or workmen’s compensation, disability benefit and other similar employee benefit acts—in amounts as required by law;

 

(2)           claims for damages because of bodily injury, occupational sickness or disease, or death of his employees or any other person and other personal injury and motor vehicle liability — Public Liability - Single Limit (Combined) Per Occurrence. Bodily Injury/Property Damage $1,000,000 w/ $2,000,000 General/Completed Operations Aggregate. Automobile Liability - Single Limit (Combined) Per Occurrence Bodily Injury and Property Damage $1,000,000. Excess Liability Umbrella covering all above items $5,000,000 per Occurrence; and

 

(3)           claims for damages, other than the work of the contractor itself, because of injury to or destruction of tangible property, including loss of use resulting therefrom — $1,000,000 per occurrence.

 

Tenant shall, prior to the commencement of the Term and on each anniversary of the renewal date thereof, furnish to Landlord certificate(s) evidencing such coverage, which certificate(s) shall state that such insurance coverage may not be canceled without at least thirty (30) days’ prior written notice to Landlord and Tenant. The insurance maintained by Tenant shall be deemed to be primary insurance and any insurance maintained by Landlord (acknowledging that Landlord has no obligation to maintain any insurance) shall be deemed secondary thereto. On all liability insurance Landlord, (and if requested, Landlord’s Fee Mortgagees and Landlord’s management, leasing and development agents shall be named as additional insureds with such coverage to be primary. Tenant agrees from time to time to deliver true and complete copies of all policies to Landlord upon request.

 

317

 

EXHIBIT H

 

PERCENTAGE RENT

 

If any Percentage Rent Event occurs as described in Section 5(E) of the Lease, then the following provisions shall immediately take effect, shall become a part of the Lease for the remainder of the Term and Tenant shall, in addition to all other rent provided for in the Lease, also pay Percentage Rent to Landlord in accordance with the following:

 

Section 5(E) Percentage Rent

 

5(E)(1) Percentage Rent - General Covenant. As used in this Section 5(E) the following terms have these meanings:

 

“Percentage Rent Rate” means one percent (1%) of Excess Gross Sales.

“Excess Gross Sales” means Gross Sales above the Gross Sales Benchmark.

“Gross Sales” has the meaning given below in Section 5 (E)(2).

“Gross Sales Benchmark” means $45,500,000.00, which amount is increased by five (5%) every five years at the same time Fixed Annual Rent increases under Section 5 (A) of the Lease.

 

Tenant covenants and agrees to pay to Landlord, as Additional Rent, the amount, if any, of Tenant’s Excess Gross Sales during any calendar month or part thereof during the Term, multiplied by the Percentage Rent Rate (“Percentage Rent”). (For any period less than a full calendar month the Excess Gross Sales and the Gross Sales Benchmark shall be prorated.) Such amounts payable hereunder are referred to as “Percentage Rent” and are also included in the term “Additional Rent.”

 

5 (E)(2) Gross Sales - Definition. “Gross Sales” means the total amount in dollars of the actual price charged (including finance charges), by Tenant and any sublease, assignee, licensee or other person conducting sales from or with respect to the Demised Premises, whether for cash or on credit, for all sales of merchandise, food, beverages, services, gift or merchandise certificates, and all other receipts of business conducted at, in, on, about or from the Premises, including, but not limited to, all mail or telephone orders, all internet sales, and all catalog sales and all home delivery sales received or filled at, from or with respect to the Premises, and including all deposits not refunded to purchasers, all orders taken in, from or with respect to the Premises, whether or not such orders are filled elsewhere, receipts of sales through any vending machine or other coin or token operated device or otherwise at, in, on, about, from or with respect to the Premises, and sales and receipts occurring or arising as a result of solicitation off the Premises conducted by personnel operating from or reporting to, or under the supervision of any employee of Tenant located at the Demised Premises. Gross Sales shall not, however, include any separately stated sums collected and remitted for any retail sales tax or retail excise tax imposed by any duly constituted governmental authority, nor shall they include any exchange of goods or merchandise between the stores of Tenant where such exchange of goods or merchandise is made solely for the convenient operation of the business of Tenant and neither for the purpose of consummating a sale which has theretofore been made at, in, on, about or from the Premises nor for the purpose of depriving Landlord of the benefits of a sale which otherwise

 

318

 

would be made at, in, on, about, from or with respect to the Premises, nor the amount of any cash or credit refund made upon any sale where the merchandise sold, or some part thereof, is thereafter returned by the purchaser and accepted by Tenant, nor sales of fixtures which are not a part of Tenant’s stock in trade. Each sale upon installment, credit or layaway shall be treated as a sale for the full price in the month during which such sale shall be made, irrespective of the time when Tenant shall receive payments from its customers, and no deduction shall be allowed for uncollectible payment by customer or uncollected or uncollectible credit accounts.

 

5(E)(3) Records and Reporting of Gross Sales. Tenant shall utilize, and cause to be utilized, cash registers equipped with consecutive serialized tapes and/or such other devices for recording sales as are normally used in Tenant’s type of business to record all sales and Tenant shall keep for at least 36 months after expiration of each calendar year or part thereof during the Term, full, true and accurate books of account and records (“books”) conforming to generally accepted accounting principles showing all Gross Sales transacted at, in, from and upon the Premises for such calendar year or part thereof, including all tax reports, dated cash register tapes, sales slips, sales checks, sales books, bank deposit records and other supporting data. Such books shall be kept on the Premises during the Term. Within fifteen (15) days after the end of each calendar month or portion thereof included in the Term, Tenant shall furnish to Landlord a statement of Gross Sales transacted during such previous month or portion thereof; and on or before each February 1 included in the Term and within thirty (30) days after the end of the Term Tenant shall furnish to Landlord a statement (the “Annual Statement”) certified by an independent public accountant of Gross Sales itemized on a calendar month by calendar month basis transacted during the preceding calendar year or part thereof. In the event of Tenant’s failure to furnish any statement of Gross Sales required hereunder, in addition to all other remedies afforded it under this Lease, Landlord shall be entitled to have an accountant of Landlord’s selection conduct an audit of Tenant’s books for such period or periods for which Tenant has failed to furnish such statements. Such audit shall be at Tenant’s expense and Tenant shall promptly reimburse Landlord for the costs of such audit. All such costs shall be deemed additional charges. Notwithstanding the foregoing, Landlord shall have the right from time to time by its accountants or representatives to audit all statements of Gross Sales and in connection with such audits to examine all of Tenant’s books (including all supporting data and any other records from which Gross Sales may be tested or determined) of Gross Sales; and Tenant shall make all books readily available for such examination. Failure of Tenant to make all books readily available for such examination shall be deemed a default under this Lease; and in addition to all other remedies afforded it under this Lease, Tenant shall promptly reimburse Landlord for the costs of such audit. All such costs shall be deemed additional charges. If any such audit discloses that the actual Gross Sales for any month transacted by Tenant exceed those reported by more than two percent, Tenant shall forthwith pay to Landlord the cost of such audit and examination together with any additional Percentage Rent payable to Landlord. Any information obtained by Landlord pursuant to the provisions of this Section shall be treated as confidential, except in any litigation or arbitration proceedings between the parties, and, except further, that Landlord may disclose such information to existing Lenders and to prospective buyers and lenders.

 

5 (E)(4) Payment. On or before the 15th day after the expiration of each full or partial calendar month included in the Term, Tenant shall pay all Percentage Rent due for such prior

 

319

 

month to Landlord without demand, provided that if such amount exceeds the Percentage Rent that would be payable with respect to such month if Percentage Rent were calculated on the basis of Gross Sales for all months elapsed in the then current calendar year, Tenant shall not be required to pay any amount on account of such month unless and until such amount shall later be payable as part of the annual adjustment. Upon receipt by Landlord of each Annual Statement of Gross Sales there shall be an adjustment between Landlord and Tenant to the end that Landlord shall receive the exact amount of Percentage Rent due hereunder. Any overpayments by Tenant hereunder shall be credited against the next payments due under this Section. Any underpayments by Tenant shall be immediately due and payable. With respect to the calendar year in which the Term ends, the adjustments shall be prorated for the portion of the calendar year included in the Term.

 

320

 

EXHIBIT I

 

LOCAL LAW ADDENDUM

 

(Attached)

 

321

 

Lease Addendum (NY)

 

This Lease Addendum (“Addendum”) is supplemental to and made a part of that certain Lease dated as of November     , 2010 (the “Lease”) by and between WE APP Baldwin LLC (“Landlord”) and Pathmark Stores, Inc. (“Tenant”). Capitalized terms used in this Addendum without definition shall have the meanings set forth in the Lease. This Addendum is to be construed as supplemental to, and part of, the Lease. In the event of any inconsistency between the Lease and this Addendum, the terms and provisions of this Addendum shall prevail.

 

Notwithstanding the terms and conditions contained in the Lease, and to the limited extent hereof, the parties agree as follows:

 

1.               Construction Lien. Nothing in the Lease shall be deemed to constitute Landlord’s consent or request, express or implied, by inference or otherwise: (a) to any contractor, subcontractor, laborer, or material supplier for the performance of any labor or the furnishing of any materials for any improvement, alteration or repair of the Demised Premises; or (b) to subject the Demised Premises to any mechanic’s lien.

 

2.               Maintenance of Property.

 

A.            To the extent the Lease requires Tenant to maintain or repair any sidewalk, Tenant shall perform all obligations of Landlord (and shall indemnify Landlord in the manner provided in the Lease against any liability of Landlord arising) under New York City Administrative Code §2- 710 and -711.

 

B.            Tenant shall not clean any window in or about the Demised Premises (or require, permit, suffer, or allow any window to be cleaned) from the outside in violation of New York Labor Law §202.

 

3.               Landlord’s Remedies.

 

A.            Notwithstanding anything to the contrary in New York Real Property Actions and Proceedings Law (N.Y. RPAPL) §711(2) or any other applicable law or rule of procedure, Landlord’s acceptance of any partial payment on account of rent, even if such payment has been acknowledged or receipted for in writing, shall not be deemed to constitute Landlord’s “express consent in writing to permit Tenant to continue in possession” as referred to in N.Y. RPAPL §711(2) unless Landlord’s written acceptance expressly states that: “Landlord consents to Tenant’s remaining in possession notwithstanding nonpayment of rent.” Any such part payment shall merely constitute a payment on account and nothing more, and shall not limit any rights or remedies of Landlord.

 

B.            Tenant expressly waives and releases, for itself and for any person claiming by, through or under Tenant, any rights that Tenant or such person may have under New York civil practice law and rules §220 1 (or any other law or rule of procedure, including any provisions of the New York real property actions and proceedings law), in connection with any holdover proceedings or other action or proceeding regarding this Lease, Tenant’s rights as a tenant of the Building, or Tenant’s possession of the Demised Premises.

 

322

 

4.               Casualty. The provisions of Article 26 of this Lease on destruction shall be deemed an express agreement as to damage or destruction of the Demised Premises by fire or other casualty. New York Real Property Law §227 (and any similar or successor statute), providing for such a contingency in the absence of an express agreement, shall have no application.

 

5.               Redemption. Tenant specifically waives the right of redemption provided for in New York Real Property Actions and Proceedings Law §761, and any similar or successor statute.

 

6.               Landmarks. Tenant acknowledges and agrees that it shall not seek or support a landmark designation, unless such landmark designation is specifically sought by Landlord, pursuant to the New York City Administrative Code §25-322 for the Demised Premises or any part of the Building.

 

7.               Zoning Lot. Tenant acknowledges that Tenant has no rights to or interest in any development rights, “air rights,” rights to construct additional floor area, or comparable rights appurtenant to the Demised Premises. Tenant consents, without further consideration, to Landlord’s utilization or transfer of such rights in any manner. Tenant shall promptly execute and deliver any instruments that Landlord may reasonably request, including without limitation, instruments merging zoning lots, or waiving Tenant’s right to join in such instruments, to evidence such acknowledgment and consent. The provisions of this paragraph are and shall be deemed to be and shall be construed as Tenant’s express waiver and release of any interest Tenant may have as a “party in interest” (as defined under the definition of “Zoning Lot” in § 12-10 of the New York City Zoning Resolution or any similar or successor statute) in the Demised Premises.

 

323

 

EXHIBIT J 

 

Confidentiality Agreement

 

(Attached)

 

324

 

CONFIDENTIALITY AGREEMENT

 

THIS CONFIDENTIALITY AGREEMENT (this “Agreement”) is entered into as of             , 2010 (the “Effective Date”) by and between [TENANT], a             , having an address at (“Company”) and               , a                          , having an address at                    (“Disclosee”).

 

In connection with Disclosee’s interest in obtaining information concerning the business of Company, Company is furnishing or has furnished Disclosee with certain written information concerning Company’s gross sales that is either non-public, confidential or proprietary in nature. This information furnished to Disclosee or its affiliates, agents, representatives or employees (“Representatives”), together with analyses, compilations, forecasts, studies or other documents prepared by Disclosee or its Representatives that contain or otherwise reflect such information is hereinafter referred to as the “Information.” In consideration of Company furnishing Disclosee with the Information, Disclosee agrees that:

 

1.             The Information is Company’s property and will be kept confidential and shall not, without Company’s prior written consent, be disclosed by Disclosee or Representatives in any manner whatsoever, in whole or in part, and shall not be used by Disclosee or its Representatives in any manner to compete with the business of Company. Moreover, Disclosee may reveal the Information only to its Representatives who need to know the Information, are informed by Disclosee of the confidential nature of the Information and who shall agree to act in accordance with the terms and conditions of this Agreement. Disclosee shall be responsible for any breach of this Agreement by its Representatives.

 

2.             The term Information shall not include such portions of the Information which (i) are or become generally available to the public other than as a result of a disclosure by Disclosee or its Representatives, or (ii) become available to Disclosee on a non-confidential basis from a source (other than Company or its Representatives) that is not prohibited from disclosing such Information to Disclosee by a legal, contractual or fiduciary obligation to Company; or (iii) must be disclosed in order to comply with any applicable law, order, regulation or ruling; (iv) is already known to Disclosee or its Representatives or is already in its or their possession prior to disclosure by Company hereunder, or (v) is independently developed by Disclosee or its Representatives without reference to the Information.

 

3.             In the event that Disclosee or anyone to whom Disclosee transmits the Information pursuant to this Agreement becomes legally compelled to disclose any of the Information, Disclosee will provide Company with prompt notice so that Company may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Agreement. In the event that such protective order or other remedy is not obtained, or that Company waives compliance with the provisions of this Agreement, Disclosee will furnish only that portion of the Information that Disclosee is legally required and will exercise its best efforts to obtain reliable assurance that confidential treatment will be accorded the Information.

 

4.             Disclosee acknowledges that remedies at law may be inadequate or protect against breach of this Agreement, and Disclosee hereby in advance agrees that Company may seek injunctive relief without proof of actual damages. This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey, without regard to conflict of law principles. The exclusive jurisdiction for any disputes concerning this Agreement shall be the Superior Court of New Jersey,

 

325

 

Bergen County, and the parties hereby submit to such jurisdiction and waive all defenses relating to jurisdiction, venue and forum non convenience.

 

5.             Disclosee hereby defends, indemnifies and holds harmless Company and its Representatives and their respective successors and assigns against and from any loss, liability or expense, including attorney’s fees, arising out of any uncured breach by Disclosee or by its Representatives of any of the terms of this Agreement

 

6.             This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and all of which shall constitute the same Agreement. A facsimile, email, pdf or electronic signature shall be deemed an original signature.

 

[SIGNATURE PAGE FOLLOWS]

 

326

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date.

 

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
[TENANT], a
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DISCLOSEE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
                                                     ,   a
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

327

 

EXHIBIT B-5

 

LEASE FORM FOR QUEENS, NY — OZONE PARK

 

328

 

KEY NO:

 

LEASE

 

BY AND BETWEEN

 

WE APP OZONE PARK LLC,
 LANDLORD

 

AND

 

PATHMARK STORES, INC.,

TENANT

 

DEMISED PREMISES

 

AT

 

9210 ATLANTIC AVENUE, QUEENS, NY

 

329

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
EXHIBITS
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
DEMISED   PREMISES
    	
1
    
	
 
    	
 
    	
 
    
	
3.
    	
TERM
    	
2
    
	
 
    	
 
    	
 
    
	
4.
    	
RENEWAL   PERIODS
    	
2
    
	
 
    	
 
    	
 
    
	
5.
    	
RENT
    	
3
    
	
 
    	
 
    	
 
    
	
6.
    	
USE   AND OCCUPANCY
    	
5
    
	
 
    	
 
    	
 
    
	
7.
    	
TAXES
    	
7
    
	
 
    	
 
    	
 
    
	
8.
    	
SIGNAGE
    	
8
    
	
 
    	
 
    	
 
    
	
9.
    	
TRUE   LEASE
    	
9
    
	
 
    	
 
    	
 
    
	
10.
    	
REPAIRS
    	
9
    
	
 
    	
 
    	
 
    
	
11.
    	
INSURANCE
    	
9
    
	
 
    	
 
    	
 
    
	
12.
    	
REQUIREMENTS   OF LAW AND FIRE INSURANCE
    	
10
    
	
 
    	
 
    	
 
    
	
13.
    	
ALTERATIONS
    	
11
    
	
 
    	
 
    	
 
    
	
14.
    	
ACCESS   TO DEMISED PREMISES
    	
11
    
	
 
    	
 
    	
 
    
	
15.
    	
UTILITIES
    	
11
    
	
 
    	
 
    	
 
    
	
16.
    	
SUBORDINATION,   NON DISTURBANCE AND ATTORNMENT
    	
11
    
	
 
    	
 
    	
 
    
	
17.
    	
TRADE   FIXTURES
    	
12
    
	
 
    	
 
    	
 
    
	
18.
    	
ASSIGNMENT
    	
13
    
	
 
    	
 
    	
 
    
	
19.
    	
TITLE   AND AUTHORITY
    	
14
    
	
 
    	
 
    	
 
    
	
20.
    	
QUIET   ENJOYMENT
    	
14
    
	
 
    	
 
    	
 
    
	
21.
    	
UNAVOIDABLE   DELAYS
    	
15
    
	
 
    	
 
    	
 
    
	
22.
    	
END   OF TERM
    	
15
    
	
 
    	
 
    	
 
    
	
23.
    	
LANDLORD’S   DEFAULT
    	
15
    
	
 
    	
 
    	
 
    
	
24.
    	
ADDITIONAL   CHARGES
    	
16
    
	
 
    	
 
    	
 
    
	
25.
    	
TENANT’S   DEFAULT
    	
16
    
	
 
    	
 
    	
 
    
	
26.
    	
DESTRUCTION
    	
18
    
	
 
    	
 
    	
 
    
	
27.
    	
EMINENT   DOMAIN
    	
20
    
	
 
    	
 
    	
 
    
	
28.
    	
THIRD   PARTY LITIGATION
    	
21
    
	
 
    	
 
    	
 
    
	
29.
    	
WAIVER   OF DISTRAINT
    	
21
    
	
 
    	
 
    	
 
    
	
30.
    	
ESTOPPEL   CERTIFICATES
    	
21
    
	
 
    	
 
    	
 
    
	
31.
    	
NOTICES
    	
21
    

 

330

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
32.
    	
BROKER
    	
22
    
	
 
    	
 
    	
 
    
	
33.
    	
LIENS
    	
22
    
	
 
    	
 
    	
 
    
	
34.
    	
DEFINITION   OF LANDLORD
    	
22
    
	
 
    	
 
    	
 
    
	
35.
    	
ADJOINING   OR ADJACENT PROPERTY
    	
22
    
	
 
    	
 
    	
 
    
	
36.
    	
ENVIRONMENTAL   LAWS
    	
23
    
	
 
    	
 
    	
 
    
	
37.
    	
LEASEHOLD   MORTGAGE
    	
24
    
	
 
    	
 
    	
 
    
	
38.
    	
INDEMNITY
    	
26
    
	
 
    	
 
    	
 
    
	
39.
    	
LIMITATION   OF LANDLORD’S LIABILITY
    	
26
    
	
 
    	
 
    	
 
    
	
40.
    	
BOOKS   AND RECORDS
    	
27
    
	
 
    	
 
    	
 
    
	
41.
    	
SATELLITE   DISH
    	
27
    
	
 
    	
 
    	
 
    
	
42.
    	
NO   PRESUMPTION AGAINST DRAFTER
    	
27
    
	
 
    	
 
    	
 
    
	
43.
    	
SUCCESSORS   AND ASSIGNS; AFFILIATES
    	
27
    
	
 
    	
 
    	
 
    
	
44.
    	
CAPTIONS
    	
28
    
	
 
    	
 
    	
 
    
	
45.
    	
INVALIDITY   OF CERTAIN PROVISIONS
    	
28
    
	
 
    	
 
    	
 
    
	
46.
    	
CHOICE   OF LAW/JURISDICTION
    	
28
    
	
 
    	
 
    	
 
    
	
47.
    	
NO   WAIVER
    	
28
    
	
 
    	
 
    	
 
    
	
48.
    	
ATTORNEY’S   FEES
    	
28
    
	
 
    	
 
    	
 
    
	
49.
    	
WAIVER   OF TRIAL BY JURY
    	
28
    
	
 
    	
 
    	
 
    
	
50.
    	
MISCELLANEOUS
    	
29
    
	
 
    	
 
    	
 
    
	
51.
    	
COUNTERPARTS
    	
29
    
	
 
    	
 
    	
 
    
	
52.
    	
EXHIBITS
    	
30
    
	
 
    	
 
    	
 
    
	
53.
    	
INCORPORATION   OF STATE LAW PROVISIONS
    	
30
    

 

331

 

LEASE

 

THIS LEASE (this “Lease”), made as of November           2010 (the “Effective Date”), by and between WE APP OZONE PARK LLC, a Delaware limited liability company with an office c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 Attn: Adam Winstanley (hereinafter called “Landlord”), and PATHMARK STORES, INC., a Delaware corporation, having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”). This Lease is guaranteed by The Great Atlantic & Pacific Tea Company, Inc., a Maryland corporation (“Guarantor”) pursuant to a guaranty of even date herewith (as the same may be amended, supplemented or modified from time to time, the “Guaranty”).

 

WITNESSETH:

 

Landlord and Tenant covenant and agree as follows:

 

1.             EXHIBITS. The following Exhibits are annexed hereto and made a part hereof:

 

A.            Exhibit A, Site Plan of the Demised Premises;

 

B.            Exhibit B1, Legal Description of the Land;

 

C.            Exhibit B2, Existing Encumbrances on Land

 

D.            Exhibit C, Remedial Work

 

E.             Exhibit D, Form of Subordination, Non-Disturbance and Attornment Agreement;

 

F.             Exhibit E, Memorandum of Lease;

 

G.            Exhibit F, Form of Guaranty;

 

H.            Exhibit G, Insurance Requirements;

 

I.              Exhibit H, Percentage Rent;

 

J.             Exhibit I, Special Shopping Center Provisions;

 

K.            Exhibit J, Local Law Addendum; and

 

L.             Exhibit K, Confidentiality Agreement.

 

2.             DEMISED PREMISES.

 

A.            Landlord hereby leases to Tenant and Tenant hereby takes from Landlord certain premises commonly known as 9210 Atlantic Avenue, Queens, New York and labeled

 

332

 

“Demised Premises” and shown crosshatched on Exhibit A and the improvements now or hereafter erected on said premises (said premises and improvements being hereinafter collectively called the “Demised Premises” or “Building”), together with the benefit of and subject to any and all easements or other matters or record, appurtenances, rights and privileges now or hereafter belonging thereto including those described in Exhibit B2. The Demised Premises is located within that certain parcel of land (hereinafter called the “Land”) described on Exhibit B-1 and contains 62,668 square feet of space. Any buildings and improvements now or hereafter erected on the Land, including the Demised Premises, shall be hereinafter called “Improvements”. The Land and the Improvements shall be hereinafter collectively called the “Shopping Center”. Landlord hereby grants to Tenant the right and easement to use, in common with other permitted tenants of the Shopping Center, those portions of the Shopping Center not included within the Improvements shown on Exhibit A and intended for common use, including, without limitation, parking areas, roads, streets, drives, tunnels, passageways, landscaped areas, open and enclosed malls, exterior ramps, walks and arcades (hereinafter collectively called the “Common Area”) for access and egress to and customer parking for the Demised Premises.

 

B. Tenant or its Affiliates owned or leased the Demised Premises prior to their being purchased by Landlord. Landlord shall have no obligation or risk whatsoever with respect to the condition of the Demised Premises, Tenant taking the Demised Premises “AS IS, WHERE IS, WITH ALL FAULTS”. Tenant acknowledges that it has had full opportunity to inspect the Demised Premises with engineering and other consultants of its choice. Tenant’s commencing possession under this Lease shall be deemed an acknowledgment that the condition of the Demised Premises is satisfactory. Tenant further acknowledges that neither Landlord nor any person acting under Landlord has made or implied any representations or warranties whatsoever concerning the Demised Premises, their condition or this Lease except as set forth in Section 19.

 

3.               TERM.

 

A.            The term of this Lease (“Term”) shall commence (the “Commencement Date”) on the Effective Date and shall continue to and include the date (the “Expiration Date”) that is twenty (20) years after the day before the Commencement Date if the Commencement Date is the first day of a month, or twenty (20) years after the last day of the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month.

 

B.            The term “Lease Year” shall mean the following: the first Lease Year shall be the 12 month period commencing on the Commencement Date if the Commencement Date is the first day of a month, or on the first day of the month immediately following the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month; and each succeeding 1 2 month period thereafter shall be a Lease Year.

 

4. RENEWAL PERIODS. Tenant shall have the right and option to extend the Term of this Lease from the date upon which it would otherwise expire for ten (10) separate consecutive renewal periods of five (5) years each (each such period being hereinafter called a “Renewal Period”) upon the same terms and conditions as are herein set forth except the rent for such Renewal Period shall be as provided in Section 5 below; provided, however, that at the time of so electing to extend and also at the time any Renewal Period commences Tenant is not in

 

333

 

default beyond any applicable notice and cure period, and this Lease is then in full force and effect. If Tenant fails timely so to exercise its option for any Renewal Period, time being of the essence, Tenant shall have no further extension rights hereunder. All references to the Term shall mean the Initial Term as it may be extended by any Renewal Period. If Tenant elects to exercise any one or more of said options to renew, it shall do so by giving written notice (“Renewal Notice”) of such election to Landlord at any time during the term of this Lease (including any Renewal Periods) on or before the date which is three hundred sixty five (365) days before the beginning of the Renewal Period or Renewal Periods for which the term hereof is to be renewed by the exercise of such option or options. If Tenant elects to exercise any one or more of said options to renew by serving a Renewal Notice in accordance with the foregoing, the Term of this Lease shall be automatically extended for the Renewal Period(s) covered by the Renewal Notice without execution of an extension or renewal lease. If Tenant shall not have given notice of such election to Landlord by such date in respect of any Renewal Period, Landlord shall (unless notice shall have been given as hereinafter specifically permitted) give notice to Tenant that Tenant has failed to give notice of such election to Landlord (hereinafter called the “Option Notice”). Tenant’s time to give notice of such election shall continue until the date which is sixty (60) days after receipt of the Option Notice. Landlord shall not give the Option Notice prior to the date which is four hundred twenty-five (425) days before the Expiration Date. If Landlord shall not have given the Option Notice prior to the date which is four hundred twenty-five (425) days before the beginning of the next succeeding Renewal Period, the term of this Lease shall be extended beyond the Expiration Date to the date which is four hundred twenty-five (425) days after the date on which the Option Notice is given by Landlord.

 

5.             RENT.

 

A. Beginning on the Commencement Date and continuing throughout the Term, Tenant covenants and agrees to pay Landlord for the Demised Premises, without previous demand therefor, fixed annual rent (“Fixed Annual Rent”) as follows:

 

	
Lease Year
    	
 
    	
Fixed Annual Rent
    	
 
    	
Fixed Monthly Rent
    
	
1-5
    	
 
    	
$
    	
2,820,060.00
    	
 
    	
$
    	
235,005.00
    
	
6-10
    	
 
    	
$
    	
2,961,063.00
    	
 
    	
$
    	
246,755.25
    
	
11-15
    	
 
    	
$
    	
3,109,116.15
    	
 
    	
$
    	
259,093.01
    
	
16-20
    	
 
    	
$
    	
3,264,571.96
    	
 
    	
$
    	
272,047.66
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
First   Renewal Period
    	
 
    	
 
    	
 
    	
 
    
	
21-25
    	
 
    	
$
    	
3,427,800.56
    	
 
    	
$
    	
285,650.05
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Second   Renewal Period
    	
 
    	
 
    	
 
    	
 
    
	
26-30
    	
 
    	
$
    	
3,599,190.58
    	
 
    	
$
    	
299,932.55
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Third   Renewal Period
    	
 
    	
 
    	
 
    	
 
    
	
31-35
    	
 
    	
$
    	
3,779,150.11
    	
 
    	
$
    	
314,929.18
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fourth   Renewal Period
    	
 
    	
 
    	
 
    	
 
    
	
36-40
    	
 
    	
$
    	
3,968,107.62
    	
 
    	
$
    	
330,675.63
    

 

334

 

	
Fifth   Renewal Period
    	
 
    	
 
    	
 
    	
 
    
	
41-45
    	
 
    	
$
    	
4,166,513.00
    	
 
    	
$
    	
347,209.42
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixth   Renewal Period
    	
 
    	
 
    	
 
    	
 
    
	
46-50
    	
 
    	
$
    	
4,374,838.65
    	
 
    	
$
    	
364,569.89
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Seventh   Renewal Period
    	
 
    	
 
    	
 
    	
 
    
	
5   1-55
    	
 
    	
$
    	
4,593,580.58
    	
 
    	
$
    	
382,798.38
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Eighth   Renewal Period
    	
 
    	
 
    	
 
    	
 
    
	
56-60
    	
 
    	
$
    	
4,823,259.61
    	
 
    	
$
    	
401,938.30
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ninth   Renewal Period
    	
 
    	
 
    	
 
    	
 
    
	
61-65
    	
 
    	
$
    	
5,064,422.59
    	
 
    	
$
    	
422,035.22
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tenth   Renewal Period
    	
 
    	
 
    	
 
    	
 
    
	
66-70
    	
 
    	
$
    	
5,317,643.72
    	
 
    	
$
    	
443,136.98
    

 

B.            All Fixed Annual Rent shall be payable by Tenant in equal monthly installments in advance on the first day of every calendar month during the Term of this Lease (and any Renewal Periods), and shall be payable at the office of the Landlord first above set forth or at such other address as Landlord shall have given in a notice to Tenant) in current U.S. currency by check drawn on a clearinghouse bank and payable directly to Landlord (or, if requested by Landlord from time to time by electronic fund transfer, to an account designated by Landlord). Rent for a part of a month shall be prorated on a daily basis and paid on the Commencement Date. Further, the rent for the first full month shall be paid on the Commencement Date.

 

C.            Beginning on the Commencement Date and continuing throughout the Term, Tenant covenants and agrees to pay, without previous demand therefor, all sums other than Fixed Annual Rent due under or required to be paid by this Lease (all of the foregoing being “Additional Rent” regardless of however defined or described in this Lease).

 

D. It is the intention of the parties hereto that the Fixed Annual Rent payable hereunder shall be net to Landlord free of cost, charge, offset, diminution or other deduction, so that this Lease shall yield to Landlord the net Fixed Annual Rent specified herein during the Term of this Lease. Notwithstanding applicable law to the contrary and with the sole exception of those costs, expenses and obligations expressly stated in this Lease to be the sole responsibility of Landlord (or the responsibility of third parties as provided in Section 36C), all costs, expenses and obligations of every kind and nature whatsoever relating to this Lease, the Demised Premises or imposed on Landlord under applicable law either now existing or hereafter enacted and whether or not within the contemplation of the parties on account of this Lease, the Demised Premises or Landlord’s interest in the Demised Premises are assumed and shall be paid by Tenant when and as due as Additional Rent. Without limiting the generality of the foregoing, Tenant shall at its sole expense (which expense shall be deemed Additional Rent hereunder) be responsible for payment of all Taxes, all electricity, telecommunication service, gas, water,

 

335

 

sewer, telephone, refuse disposal, and other charges for utilities and services supplied to the Demised Premises, insurance costs, amounts due under any title encumbrance matter described in Exhibit B2, and all costs of cleaning, maintaining, repairing and replacing the Demised Premises or any portion thereof and of complying with all laws now existing or hereafter enacted including all Environmental Laws (defined below). Any cost, expense or obligation directly relating to the Demised Premises that is not expressly declared in this Lease to be that of Landlord shall be deemed to be an obligation of Tenant to be performed by Tenant at Tenant’s sole expense, and to the greatest extent permitted by law Tenant shall indemnify and defend Landlord against, and hold Landlord harmless from, the same, and Tenant’s liability for the payment and performance of such amounts and obligations that shall arise during the Term is hereby expressly provided to survive the expiration of the Term or early termination of this Lease. Fixed Annual Rent, Additional Rent, and all other sums payable hereunder by Tenant, shall be paid without notice or demand, and without set off, counterclaim, recoupment, abatement, suspension, deduction, or defense (other than payment) whatsoever. Except as otherwise expressly set forth in this Lease with respect to certain events of casualty in Section 26 or condemnation in Section 27, Tenant shall in no event have any right to terminate this Lease, and any right so to terminate (or to abate, suspend, set off or otherwise deduct from Fixed Annual Rent or Additional Rent) under applicable law is hereby waived to the greatest extent permitted by law. It is the intention of the parties that the obligations of Tenant hereunder shall be separate and independent covenants and shall not be discharged or otherwise affected by any law or regulation now or hereafter applicable to the Demised Premises or any other restriction on Tenant’s use, and that Fixed Annual Rent, Additional Rent, and all other sums payable by Tenant hereunder shall continue to be payable in all events, and that the obligations of Tenant hereunder shall continue unaffected throughout the Term. Landlord, at its sole cost and expense, shall be responsible for the following: (i) payment of any amounts relating to Fee Mortgages or other encumbrances or liens created by Landlord, (ii) management fees, administrative costs, professional fees and any other costs incidental to its fee ownership of the Demised Premises; and (iii) and cost, expense, or liability resulting from the negligent or willful misconduct of Landlord, its employees or agents. For the avoidance of doubt, Tenant shall be responsible for all costs, expenses and obligations of Landlord in that certain Lease (as amended or otherwise modified from time to time, the “Ground Lease”) dated as of August 7, 1987 by and between 7 Horizon Corp. and Pathmark Stores, Inc. f/k/a Supermarkets General Corporation, as affected by that certain Declaration of Easement dated August 7, 1987, as further affected by that certain Letter Agreement dated March 28, 1990, as further affected by that certain Assignment of Lessor’s Interest in Lease dated March 29, 1990, as further affected by that certain Renewal Notice dated July 25, 2007, as further amended by that certain First Amendment to Lease dated September 10, 2010.

 

E. If any person (other than an Affiliate of the initial Guarantor (being The Great Atlantic & Pacific Tea Company, Inc.) or a successor by merger of acquisition) becomes an assignee of this Lease or sublets all or substantially all of the Demised Premises or otherwise becomes or is a Tenant under this Lease, such occurrence shall be a Percentage Rent Event and the provisions of Exhibit H shall immediately become applicable for the remainder of the Term.

 

336

 

6.             USE AND OCCUPANCY.

 

A.            The Demised Premises may be used and occupied for the operation of a supermarket, drugstore, automated teller machine, bank, all other uses customary and incidental to a supermarket and, so long as the Minimum Credit Test (defined in Section 25D) is then met, all other lawful purpose or purposes. Notwithstanding anything to the contrary contained in this Lease, Tenant shall not be obligated to open, to conduct or to remain open for the conduct of any business in the Demised Premises but shall nevertheless pay Fixed Annual Rent and all Additional Rent when and as the same is due. At all times Tenant shall comply with all laws, ordinances and bylaws, regulations, codes, (including, without limitation, the Americans With Disabilities Act of 1990, or “ADA”) permits, orders and conditions of any special permits or other governmental approvals (“law” or “laws”) applicable from time to time to the Demised Premises or Tenant or both, foreseen or unforeseen, and whether or not the same interfere with Tenant’s occupancy. Tenant shall procure all approvals, licenses and permits, in each case promptly giving Landlord true and complete copies of the same and all applications therefor. Tenant shall never overload any of the Building systems, including the floors and mechanical, electrical and structural systems, and shall also keep the Demised Premises equipped with appropriate safety appliances and comply with all requirements of insurance and of insurance inspection or rating bureaus. Tenant shall not itself, nor shall Tenant permit or suffer persons acting under Tenant to, either with or without negligence, injure, overload, deface, damage or otherwise harm the Demised Premises or any part thereof or use the Demised Premises contrary to any law or in a manner likely to create any nuisance. It is intended that Tenant bear the sole risk of all present or future laws affecting the Demised Premises, and Landlord shall not suffer any reduction in any rent on account of the enforcement of laws.

 

B.            Subject to Landlord’s consent, not to be unreasonably withheld, delayed or conditioned, Tenant shall have the right to enter into agreements with utility companies creating easements in favor of the utility companies as are required in order to service the Demised Premises. Also subject to Landlord’s consent, not to be unreasonably withheld, delayed or conditioned, Tenant may enter into reciprocal parking agreements and easements for ingress and egress as are required in order to service the Demised Premises and any adjoining or adjacent land designated by Tenant. Landlord covenants and agrees to execute any and all documents, instruments or certificates reasonably required in connection with such matters to which it has given its consent, and to take all other action, in order to effectuate the same, all at Tenant’s cost and expense. In no event, however, shall Landlord be required to consent to nor shall Tenant have the power to enter into any easement or reciprocal parking agreement (i) that is for a term in excess of the term of this Lease (as the same may be renewed or extended) except for utility and access easements that may be perpetual or otherwise extend beyond the term of this lease, or (ii) that diminishes the economic value of the Land, or (iii) materially and adversely affects the Shopping Center including without limitation any other tenant of the Shopping Center. Notwithstanding anything to the contrary or otherwise set forth herein, any encumbrance on the Demised Premises shall be subject to any requirements imposed by any Fee Mortgage (provided that Landlord shall reasonably cooperate with Tenant, at no out of pocket cost to Landlord, in connection with obtaining any requisite consent from any Fee Mortgagee as defined below).

 

C.            The provisions of this paragraph shall only apply if and only if the Minimum Credit Test is not met. If Tenant either gives Landlord written notice of Tenant’s

 

337

 

intention to discontinue permanently the operation of its business in the Demised Premises or any part of the Demised Premises or discontinues the operation of its business in the Demised Premises or any part of the Demised Premises for a period of one (1) year for any reason (other than Destruction or Taking that pursuant to the applicable provisions of this Lease entitles Tenant to terminate this Lease), then Landlord may terminate this Lease as to the Demised Premises, or if applicable, the part of the Demised Premises with respect to which Tenant has given notice of its intention to discontinue, or in which Tenant has discontinued, its operations, by thirty (30) days’ written notice to Tenant of Landlord’s election to terminate this Lease (or, if applicable, Landlord’s election to terminate this Lease as to the part of the Demised Premises with respect to which Tenant has given notice of its intention to discontinue, or in which Tenant has discontinued, its operations). Tenant may override Landlord’s election only once by, as applicable, resuming operations of its business in the Demised Premises within twenty-five (25) days after receipt of Landlord’s notice or by rescinding its notice of its intention to discontinue its business in writing to Landlord delivered within twenty-five (25) days after receipt of Landlord’s notice.

 

7.                                           TAXES.

 

A.                                       Definitions

 

(1)                                       “Taxes” means all taxes, special and general assessments, water rents, rates and charges, sewer rents and other governmental impositions and charges of every kind and nature whatsoever, extraordinary as well as ordinary, including rent and/or occupancy taxes and each and every installment thereof that shall or may during the term of this Lease, become due and payable, or liens upon the Demised Premises or any part thereof, together with all interest and penalties thereon, under or by virtue of all present or future laws, ordinances, requirements, orders, directives, rules or regulations of the Federal, State, County, Town and City Governments and of all other governmental authorities whatsoever (all of which shall also be included in the term “Taxes” as heretofore defined). Taxes shall exclude, without limitation, any income, franchise, gross receipts, corporation, capital levy, excess profits, revenue, rent, rollback, inheritance, devolution, gift, estate, payroll or stamp tax by whatsoever authority imposed or howsoever designated or any tax upon the sale, transfer and/or assignment of Landlord’s title or estate.

 

(2)                                       “Tax Year” shall mean the real estate fiscal tax year designated by the local taxing authorities.

 

(3) “Proportionate Share” as used in this Lease shall be a fraction, the numerator of which shall be the total ground floor area of Tenant’s Demised Premises as set forth in Section 2(A) and the denominator of which shall be the total floor area of such Demised Premises and all other tenant space in the Shopping Center. The parties agree that as of the Commencement Date, Tenant’s Proportionate Share of Taxes is 79.64%.

 

B. Beginning on the Commencement Date, for each Tax Year during the term of this Lease, Tenant shall pay to Landlord Tenant’s Proportionate Share of Taxes monthly in advance in amounts reasonably estimated by Landlord in the same manner as Tenant pays Common Area Costs under Exhibit I. No later than thirty (30) days after the due date for

 

338

 

payment of Taxes, Landlord will send to Tenant a receipted tax bill or other evidence reasonably indicating Taxes have been paid. If any additions or deletions of other tenant space in the Shopping Center have been made, then Landlord will also send Tenant a statement setting forth in reasonable detail the calculation of Tenants Proportionate Share. If, by law, any Taxes may, at the option of the taxpayer, be paid in installments (whether or not interest shall accrue on the unpaid balance thereof), Landlord shall exercise the option to pay the same in installments and any interest charged thereon by the taxing authority shall also then be included in the Taxes for which Tenant is obligated to reimburse Landlord.

 

C.                                          Any Taxes for a real estate fiscal tax period, a part of which is included within the term of this Lease (including any Renewal Periods) and a part of which is included in a period of time before pr after Term shall be equitably adjusted between Landlord and Tenant. Landlord shall timely file for and seek to obtain any and all tax abatements Landlord reasonably determines are available as a result of any subsequent re-development of the Shopping Center. Any such re-development shall be consistent with the terms and provisions of this Lease.

 

D.                                         Landlord shall promptly notify Tenant of any increase in real estate assessment, tax rate and/or Taxes. Tenant may at its option, and at its cost and expense, in its own name and/or in the name of Landlord protest, appeal or institute such other proceedings as it may consider appropriate to effect a reduction or abatement in such real estate assessment, tax rate, or Taxes. Landlord shall fully cooperate with Tenant and in furtherance of the foregoing, shall, without limitation, furnish on a timely basis, such data, documents, information and assistance and make such appearances as may be required by Tenant. Landlord agrees to execute all necessary instruments in connection with any such appeal or other proceedings. If any such proceeding may only be instituted and maintained by Landlord then Landlord shall do so at the request of Tenant. Landlord shall not settle any such appeal or other proceeding without obtaining Tenant’s prior written approval in each instance, such approval not to be unreasonably withheld, conditioned or delayed.

 

E.                                           In the event a refund is obtained for any Tax Year in which Tenant paid Tenant’s Proportionate Share of Taxes, Landlord shall promptly pay Tenant its proportionate share of such refund net of the reasonable expenses incurred in obtaining such refund. If Tenant has filed for and obtains such refund it may also deduct all reasonable expenses incurred in doing so from such refund and pay over the balance of such refund promptly to Landlord.

 

F.                                           In the event that any fee mortgagee (“Fee Mortgagee”) requires the escrow of Taxes or insurance premiums, Tenant shall pay to such Fee Mortgagee in escrow, on the first day of each and every month during the term of this Lease, one twelfth (1/12) of all estimated charges for the ensuing twelve (12) month period as reasonably estimated by the Fee Mortgagee based on current bills for same. Tenant shall deposit at least ten (10) days prior to the first date on which any interest or penalty will accrue such additional amounts as may be necessary so that there shall at all times be sufficient funds in escrow to pay such charges.

 

8. SIGNAGE. Tenant and any assignee or subtenant of Tenant shall have the right to install, maintain and replace in, on or in front of any Improvement or location on the Demised Premises or in any part thereof such signs and advertising matter as Tenant, and with Tenant’s consent, any such assignee or subtenant of Tenant may desire, provided that Tenant shall comply

 

339

 

with any applicable requirements of governmental authorities having jurisdiction and shall obtain any necessary permits for such purposes. As used in this Section, the word “sign” shall be construed to include any placard, pylon, logo, light or other advertising symbol or object, irrespective or whether same be temporary or permanent. All signs shall be Tenant’s personal property and shall be maintained and removed by Tenant upon termination of this Lease at Tenant’s sole expense.

 

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

 

10.                                    REPAIRS. Tenant shall, at all times during the Term of this Lease, and at its own cost and expense, keep and maintain or cause to be kept and maintained in repair and good condition the Building and improvements at any time erected on the Demised Premises, except that Tenant shall not be obligated to make any of the foregoing arising out of or in any way connected with (1) fire or other insured casualty Landlord is required to restore under Section 26, or (2) the negligence of Landlord, its agents, employees, or contractors. Without limitation, Tenant shall perform the Remedial Work described in Exhibit C. Landlord shall not be required to furnish services or facilities or to make any improvements, repairs, replacements or alterations in or to the Demised Premises whatsoever during the Term of this Lease. Without limiting the generality of the foregoing, Tenant shall be responsible for the entire Demised Premises and shall manage, maintain, repair, replace, clean, secure, protect, defend and keep in compliance with all governmental requirements, now existing or hereafter enacted, the Demised Premises and all improvements and appurtenances and all utilities, facilities, installations and equipment used in connection therewith, including all walls, all floor coverings, glass, windows, doors, partitions, exterior and interior lighting, signage, elevators, electrical, plumbing, heating, ventilating, fire protection and life safety, security and other building systems, water and sewage systems and other fixtures or equipment exclusively serving the Demised Premises, keeping the Demised Premises and all improvements and appurtenances in at least as good condition as on the Commencement Date. Without limitation, Tenant shall provide all cleaning, painting, janitorial services, rubbish disposal, periodic exterior waterproofing treatments to the Building, and window caulking. Tenant shall provide a copy of all current vendor contracts, if any, relating to the foregoing to Landlord at least annually and from time to time otherwise upon Landlord’s request.

 

11.                                      INSURANCE.

 

A.                                        Tenant shall maintain at its own cost and expense insurance policies insuring against loss by fire, lightning, the perils of extended coverage and malicious mischief covering the Demised Premises and the other Improvements in the Demised Premises and other perils as more fully described in Exhibit G.

 

B.                                          So long as Tenant performs its obligations in Paragraph A of this Section, Landlord hereby waives all rights of recovery against Tenant and any other occupant(s) of the Demised Premises and any of their agents and employees for damage or destruction to any and

 

340

 

all of the Improvements, including without limitation, the Building, arising out of fire or other casualty whether or not caused by acts or negligence of the aforementioned persons. Tenant hereby waives all rights of recovery against Landlord, its agents and employees for damage or destruction to any and all of the Improvements, including without limitation, the Building and to Tenant’s trade fixtures, equipment and inventory arising out of fire or other casualty whether or not caused by the acts or negligence of Landlord, its agents or employees.

 

C.                                          Tenant shall maintain at its own cost and expense public liability and other insurance in accordance with the requirements of Exhibit G.

 

D.                                         Any insurance required to be provided by Tenant pursuant to this Lease may be provided by blanket insurance covering the Demised Premises and other locations of Tenant, provided such blanket insurance complies with all of the other requirements of this Lease with respect to the type of insurance covered by blanket policies. If Tenant elects to insure the Demised Premises under any blanket insurance policy, Tenant shall furnish to Landlord a certificate of insurance showing the Demised Premises as a location insured under any such blanket insurance policy to the extent of the limits required in Exhibit G. Tenant shall furnish to Landlord and any Fee Mortgagee as to which Tenant has received a notice containing such mortgagee’s name and address a duplicate original copy or certificate of the policies of insurance required to be carried by Tenant.

 

E.                                           Notwithstanding anything to the contrary contained herein, Tenant may carry any required insurance on trade fixtures and equipment described in Section 17 under a program of self-insurance or to carry insurance with deductibles in excess of part or all of the amounts of insurance required under Exhibit G hereunder.

 

F.                                           If Tenant fails to perform any covenant in this Section and such failure continues for more than three (3) days after written notice, then, without limiting any of Landlord’s other rights and notwithstanding any other provision of this Lease concerning notice and cure of defaults, Landlord may but need not obtain such insurance, and Tenant shall pay the cost thereof upon demand as Additional Rent.

 

12. REQUIREMENTS OF LAW AND FIRE INSURANCE. Tenant shall comply with and shall from time to time conform the Demised Premises to every applicable requirement of law, duly constituted authority, Board of Fire Underwriters having jurisdiction or of the carriers of all insurance on the Demised Premises (all of the foregoing being hereinafter called “Legal Requirements”). Tenant shall have the right upon giving notice to Landlord to contest any obligations imposed upon Tenant pursuant to the provisions of this Section and to defer compliance during the pendency of such contest, if the failure of Tenant to so comply will not subject Landlord to civil or criminal penalty or liability. Landlord shall cooperate with Tenant in such contest (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and shall execute any documents reasonably required in furtherance of such purpose. Tenant shall not apply for any change in zoning applicable to the Land or the Demised Premises without Landlord’s prior written consent, not to be unreasonably withheld, conditioned or delayed.

 

341

 

13.                                    ALTERATIONS. Tenant may at its own expense from time to time, during the term hereof, make such alterations, additions, improvements and changes, structural or otherwise (hereinafter called “Alterations”), in and to the Demised Premises which it may deem necessary or desirable, provided such Alterations shall not reduce the value of the Demised Premises. Tenant, in making any Alterations, shall use materials of equal or better quality than those used in the construction of the Demised Premises and comply with all Legal Requirements. Tenant shall obtain or cause to be obtained all building permits, licenses, temporary and permanent certificates of occupancy and other governmental approvals that may be required in connection with the making of Alterations. Landlord shall cooperate with Tenant in the obtaining thereof (so long as Landlord’s cooperation does not involve (a) incurring obligations or liability or material expense to Landlord unreimbursed by Tenant or (b) breach of any covenants binding on Landlord or the Demised Premises, including, without limitation, any mortgage) and shall execute any documents required in furtherance of such purpose. Tenant may, but shall not be obligated to, remove any Alteration so long as such removal does not materially and adversely affect any heating, ventilating, mechanical, electrical, structural, roof or life safety elements of the Building and Tenant shall repair all damage that results from such removal and restore the Demised Premises to a functional condition (including the filling of all floor and wall holes, the removal of all disconnected wiring back to junction boxes and the replacement of all damaged ceiling tiles). Upon completion of any Alteration that is not Cosmetic Work, Tenant shall promptly deliver to Landlord plans showing such Alteration as built. “Cosmetic Work” shall mean painting, carpeting and wall coverings and the like and the addition or deletion of interior non structural partitions, provided such work does not materially and adversely affect any roof, structural, mechanical, electrical, utility, fire protection or life safety systems or other systems or equipment of the Building.

 

14.                                    ACCESS TO DEMISED PREMISES. Tenant shall permit Landlord to enter upon the Demised Premises at all reasonable times approved by Tenant to examine the Demised Premises, and during the six (6) month period preceding the Expiration Date, to exhibit the Demised Premises to prospective tenants, provided that Landlord shall not unreasonably interfere with the conduct of business therein.

 

15.                                      UTILITIES.

 

A.                                        Tenant shall arrange and pay for any and all utility services to the Demised Premises, including, without limitation, telecommunications, water, gas, electricity and fuel used by it in the Demised Premises. Tenant shall pay all sewer charges assessed by the municipal authority having jurisdiction. The failure or interruption of any utility services shall be at Tenant’s sole risk and Landlord shall not suffer any reduction in any rent on account thereof.

 

B.                                          Tenant shall have the sole right to apply for, claim and receive any rebate, reimbursement, credit, or payment from any utility company providing service to the Building resulting from Tenant’s installation of energy saving equipment in or on the Building.

 

16. SUBORDINATION, NON DISTURBANCE AND ATTORNMENT. This Lease shall become subject and subordinate to the lien of any Fee Mortgagee of the entire fee interest of the Demised Premises, and any renewals, modifications or extensions thereof,

 

342

 

provided that a Subordination, Non Disturbance and Attornment Agreement (“SNDA”) substantially in the form annexed hereto as Exhibit D (or a reasonably equivalent form that is reasonably acceptable to Tenant and the applicable Fee Mortgagee) is executed, acknowledged and delivered by such Fee Mortgagee to Tenant. If the Fee Mortgagee requires that this Lease have priority over such mortgage, Tenant shall, upon request of the Fee Mortgagee, execute, acknowledge and deliver to the Fee Mortgagee an agreement acknowledging such priority.

 

17. TRADE FIXTURES.

 

A.                                        All trade fixtures and equipment whether owned by Tenant or leased by Tenant from a Lessor/Owner (hereinafter called the “Equipment Lessor”) installed in the Demised Premises, regardless of the manner or mode of attachment, shall be and remain the property of Tenant or any such Equipment Lessor and may be removed by Tenant or any such Equipment Lessor at any time. In no event (including a default under this Lease) shall Landlord have any liens, rights or claims in Tenant’s or Equipment Lessor’s trade fixtures and equipment and Landlord agrees to execute and deliver to Tenant and Equipment Lessor, within ten (10) days after request therefor, any document reasonably required by Tenant or Equipment Lessor in order to evidence the foregoing, so long as the same is reasonably acceptable to Landlord and any Fee Mortgagee. Tenant shall promptly repair all damage to the Building caused by the removal of any such trade fixtures or equipment. Notwithstanding anything to the contrary in this Lease, the following shall not constitute trade fixtures or equipment for purposes of this Lease and neither Tenant nor any Equipment Lessor shall own or have any right to remove the same (and, without limiting the generality of the foregoing, the following shall not be subject to the provisions of this Paragraph A or Paragraph B of this Section 17): (i) the HVAC system, plumbing, alarm, electric, life safety and other building systems used to operate the Building or maintain the certificate of occupancy, and (ii) any “fixtures” as such term is defined in the applicable Uniform Commercial Code.

 

B.                                          In the event Tenant shall enter into any arrangement to finance all or any portion of its trade fixtures or equipment either before or after the installation thereof in the Demised Premises and whether such financing shall be in the form of a mortgage, financing agreement, equipment lease, equipment sale leaseback or otherwise and in the event the lessor or secured party thereunder shall provide written notice to Landlord that it requires a copy of any default sent by Landlord to Tenant under this Lease also to be sent to such person (hereinafter called the “Owner/Secured Party”), then Landlord upon receipt of such requirement shall simultaneously send a copy of any default notice to such Owner/Secured Party at the address furnished to Landlord; provided that Landlord’s failure to deliver any such copy to the Owner/Secured Party shall not affect Landlord’s exercise of any right or remedy under this Lease in any way whatsoever. The copy of any such default notice shall be sent to such Owner/Secured Party in the same manner as notices are required to be sent and in the same manner as such notice is being sent to Tenant hereunder. Landlord further agrees that any such Owner/Secured Party shall have the right, but not the obligation, to remedy or cure any default of Tenant under this Lease within the same period of time granted to Tenant to remedy or cure any such default under this Lease.

 

C.                                         All trade fixtures and other personal property (which term shall include without limitation food and inventory) of any person that is located on the Demised Premises

 

343

 

shall be at the sole risk of Tenant. Landlord shall not be liable for any loss or damage to person or property resulting from any accident, theft, vandalism or other occurrence on the Demised Premises, including damage resulting from water, wind, ice, steam, explosion, fire, smoke, chemicals, the rising of water or leaking or bursting of pipes or sprinklers, defect, failure or any other cause.

 

18. ASSIGNMENT.

 

A.                                        Subject to paragraph (B) of this Section, Tenant may sublet all or any part of the Demised Premises, or license the use of any portion thereof or assign this Lease, but Tenant and Guarantor shall nevertheless continue to remain liable hereunder. Any assignee of the Lease and any sublessee or licensee of all or substantially all of the Demised Premises shall become jointly and severally liable to Landlord, and any such transferee shall upon Landlord’s request execute and deliver an instrument in confirmation thereof. In the case of any assignment of this Lease or any sublease or licensee of all or substantially all of the Demised Premises, Tenant shall promptly deliver to Landlord a true and complete copy of the transfer instruments. No transfer of all or any portion of the Demised Premises or Landlord’s consent thereto shall be deemed a waiver of the provisions of this Section, or a release of Tenant or any Guarantor.

 

B.                                          So long as the Minimum Credit Test is not met (however the following provisions of this paragraph B shall not apply at any time when the Minimum Credit Test is met), Tenant shall not assign this Lease or sublet or license all or substantially all of the Demised Premises to any transferee.

 

C. If Tenant assigns this Lease, Landlord, when giving notice to said assignee with respect to any default, shall also give a copy of such notice upon Tenant originally named herein or its successor of whom Landlord shall have been given written notice (being herein called “Original Tenant”), and no notice of default shall be effective as against a Tenant until a copy thereof is given to the Original Tenant. The Original Tenant shall have the same period after the giving of such notice to cure such default as is given to Tenant under this Lease. If this Lease terminates or this Lease and the Term hereof cease and expire because of a default of such assignee, Landlord shall promptly give the Original Tenant notice thereof. The Original Tenant shall have the option, to be exercised by notifying Landlord in writing within thirty (30) days after receipt by the Original Tenant of Landlord’s notice, to cure any default and become Tenant under a new lease for the remainder of the term of this Lease (including any Renewal Periods if applicable) upon all of the same terms and conditions of this Lease as it may have been amended by agreement between Landlord and Original Tenant, provided, however, that at the time of making any such election Original Tenant cures all defaults under the Lease. In the event Original Tenant assigns this Lease and it shall thereafter be rejected in a bankruptcy or similar proceeding brought by or against such assignee, a new lease identical to this Lease shall be entered into between Landlord and Original Tenant, provided that Original Tenant cures any monetary defaults and any other defaults that are capable of being cured. Any new lease created under this Section shall commence on the date of termination or rejection of this Lease, as applicable. Notwithstanding the foregoing, if Landlord, in its sole discretion delivers to the Original Tenant and Guarantor a release as to all liability under this Lease as theretofore amended, the Original Tenant shall not have the foregoing option.

 

344

 

D. In the case of a sublease of all or substantially all of the Demised Premises for the remainder of the Term and so long as the Minimum Credit Test is met, Landlord shall, within thirty (30) days following Tenant’s request, deliver to Tenant a recognition and attornment agreement following the form attached hereto as Exhibit D and otherwise subject to Landlord’s reasonable approval, executed and acknowledged by Landlord, for the benefit of such subtenant; provided that such subtenant executes and delivers an instrument reasonably satisfactory to Landlord confirming that such subtenant is jointly and severally liable under this Lease. Further, Landlord shall, within ten (10) days after Tenant’s request, shall request its Fee Mortgagee to deliver to Tenant an SNDA for the benefit of any such subtenant (and Landlord shall reasonably cooperate with Tenant, at no out of pocket cost to Landlord, in connection with obtaining any requisite consent from any Fee Mortgagee).

 

19.                                      TITLE AND AUTHORITY.

 

A.                                        Landlord warrants and represents that Landlord is the owner of the fee simple of the Demised Premises and that other than any mortgages held by Fee Mortgagees that have provided an SNDA to Tenant in accordance with this Lease or such other liens or encumbrances that do not interfere with Tenant’s use of the Demised Premises or liens or encumbrances arising on account of any act or omission by Tenant or persons acting under Tenant or on account of Tenant’s failure to perform its obligations under this Lease, or matters set forth in Exhibit B 1, Landlord shall not voluntarily impose any other lien or encumbrance on the Demised Premises.

 

B.                                          Landlord and Tenant each warrant and represent to the other that (a) each is duly organized, validly existing and in good standing under the laws of the jurisdiction in which such entity was organized; (b) each has the authority to own its property and to carry on its business as contemplated under this Lease; (c) each has duly executed and delivered this Lease; (d) the execution, delivery and performance by each of this Lease (i) are within its powers, (ii) have been duly authorized by all requisite action, (iii) will not violate any provision of law or any order of any court or agency of government, or any agreement or other instrument to which it is a party or by which it or any of its property is bound, (iv) will not render it insolvent or (v) will not result in the imposition of any lien or charge on any of its property, except by the provisions of this Lease; and (e) the Lease is a valid and binding obligation of each in accordance with its terms.

 

C. Landlord and Tenant have executed the Memorandum of Lease (hereinafter called the “Memorandum”) attached hereto as Exhibit E simultaneously with the execution of this Lease. Upon the expiration of the Term each agree to execute and deliver a recordable termination of the Memorandum, which covenant shall survive termination. Tenant irrevocably appoints Landlord its attorney in fact so to execute such termination of the Memorandum if Tenant fails to do so within ten (10) days of written request, which power is coupled with an interest and shall automatically be transferred to any successor or assign of Landlord’s interest in the Demised Premises.

 

20. QUIET ENJOYMENT. Landlord covenants and agrees that provided no default remains uncured beyond any applicable notice and cure period, Tenant shall peaceably and quietly have, hold and enjoy the Demised Premises and all rights, easements, appurtenances and

 

345

 

privileges belonging or in anyway appertaining thereto during the full term of this Lease and any extension thereof subject always to the terms of this Lease, provisions of law, and matters of record to which this Lease is or may become subordinate. This covenant is in lieu of any other so called quiet enjoyment covenant, whether express or implied.

 

21.                                    UNAVOIDABLE DELAYS. If either party shall be prevented or delayed from punctually performing any obligation or satisfying any condition under this Lease by any strike, lockout, labor dispute, inability to obtain labor or material, Act of God, governmental restriction, regulation or control, enemy or hostile governmental action, civil commotion, insurrection, sabotage, fire or other casualty or by any other event similar to the foregoing and beyond the control of such party, then the time to perform such obligation or to satisfy such condition shall be postponed by the period of time consumed by the delay. Time is of the essence for the performance of all monetary obligations under this Lease and the foregoing shall never apply to the performance of monetary obligations.

 

22.                                    END OF TERM. Upon expiration or other termination of the term of this Lease, Tenant shall peaceably and quietly quit and surrender the Demised Premises and all Alterations in the good order and condition Tenant is required to maintain the same and remove all trade fixtures, equipment and other personal property whether or not bolted or otherwise attached and all of Tenant’s signs wherever located; and in all cases shall repair damage that results from such removal. Any fixtures and equipment that Tenant or Owner/Secured Party does not remove following the expiration or other termination of the Term of this Lease shall be deemed to be abandoned by Tenant, shall at once become the property of Landlord, and may be disposed of in such manner as Landlord shall see fit; and Tenant shall pay the cost of removal and disposal to Landlord within thirty (30) days after demand; provided, however, that if this Lease shall be terminated as the result of a default by Tenant, then trade fixtures and equipment shall not be deemed abandoned until sixty (60) days after notice of such termination is given to Owner/Secured Party. Tenant or Owner/Secured Party shall have the right at any time prior to the date such fixtures and equipment shall be deemed abandoned to remove the same from the Demised Premises. Should Tenant or anyone claiming by, through or under Tenant hold over in possession after the Expiration Date or earlier termination of this Lease, such holding over shall not be deemed to extend the Term or to renew this Lease, but without limiting Landlord’s other rights and remedies on account of such breach the tenancy thereafter shall continue as a tenancy at sufferance from month-to-month upon the terms and conditions herein contained, provided, however that rent shall be charged and paid at one hundred fifty percent (150%) of the Fixed Annual Rent and Additional Rent in effect during the twelve (12) month period immediately preceding the Expiration Date or earlier termination.

 

23.                   LANDLORD’S DEFAULT.

 

A. Landlord shall be in default hereunder if its fails to comply with any of its express obligations set forth in this Lease within thirty (30) days following written notice and opportunity to cure; provided, however, Landlord will not be in default if said default could not reasonably be cured within such period of thirty (30) days, and Landlord promptly commences and thereafter proceeds with due diligence and in good faith to cure such default.

 

346

 

B. In the event that a Fee Mortgagee shall have given written notice to Tenant that it is the holder of a mortgage covering the Demised Premises, and provided such notice includes the address to which notices to the Fee Mortgagee are to be sent, Tenant agrees that in the event it shall give written notice to Landlord to cure a default of Landlord as provided for in this Section, Tenant shall give a copy of said notice to the Fee Mortgagee. Tenant agrees that the Fee Mortgagee may cure or remedy such default within the time permitted to Landlord pursuant to this Section; provided that in addition the Fee Mortgagee shall be entitled to such further time as may be reasonably necessary for the Fee Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Fee Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion.

 

24.                                    ADDITIONAL CHARGES. If Tenant shall be in default hereunder, Landlord, after thirty (30) days notice that Landlord intends to cure such default (but only ten (10) days notice if such default concerns any breach of Tenant’s insurance obligations under Section 11), shall have the right, but not the obligation, to cure such default and Tenant shall pay to Landlord, upon demand, as Additional Rent, the reasonable cost thereof. Other than such insurance defaults, Landlord shall not commence to cure any default of such a nature that it could not reasonably be cured within such period of thirty (30) days, if Tenant commences to cure same within said period, and thereafter proceeds with reasonable diligence and in good faith to cure such default.

 

25.                                    TENANT’S DEFAULT.

 

A. If Tenant fails to pay Fixed Annual Rent or Additional Rent when due and such default continues for ten (10) days after written notice; or if a default occurs on account of any asset sale, merger or consolidation on the part of Guarantor in violation of paragraph D of this Section; or if a petition is filed by Tenant (or Guarantor) for insolvency or for appointment of a receiver, trustee or assignee or for adjudication, reorganization or arrangement under any bankruptcy act or other applicable law or if any similar petition is filed against Tenant (or Guarantor) and such petition is not dismissed within sixty (60) days thereafter; or if Tenant fails to perform any other covenant or condition under this Lease, Landlord may give Tenant a written notice specifying the nature of the default of such other covenant or condition and if Tenant does not, within thirty (30) days after receipt of such written notice (but only three (3) days in the case of failure to perform Tenant’s insurance obligations under Section 11), cure such other default or, if such default is of such a nature that it could not reasonably be cured within such period of thirty (30) days, and Tenant does not commence and proceed with reasonable diligence and in good faith to cure such default then, after the expiration of such thirty (30) day period (or longer period if such default cannot reasonably be cured within said thirty (30) day period), Landlord shall have the right, in addition to the rights set forth in the preceding sentence, to seek damages or an injunction as to such failure to perform, or after the expiration of such thirty (30) day period Landlord may, but only during the continuance of such default, send a notice to Tenant terminating this Lease and reenter the Demised Premises and dispossess Tenant and any other occupants thereof, remove their effects not previously removed by them, and hold the Demised Premises as if this Lease had not been made; and Tenant waives the service of any additional notice of intention to reenter or to institute legal proceedings to that end. If any payment of

 

347

 

Fixed Annual Rent, Additional Rent, or other sum owing Landlord is not paid within five (5) days after the same is due, then in addition to all other remedies hereunder Tenant shall pay an administrative late charge to Landlord equal to five percent (5%) of the overdue amount in question, which late charge will be due upon demand as Additional Rent.

 

B.                                          After a termination, dispossess or removal in accordance with this Section, (1) the Fixed Annual Rent and Additional Rent shall be paid up to the date of such dispossess or removal, (2) Landlord may re-let the Demised Premises or any part or parts thereof either in the name of Landlord or otherwise, for a term or terms which may, at the option of Landlord, be less than or exceed the period which would otherwise have constituted the balance of the term of this Lease, and (3) Tenant shall pay to Landlord, as liquidated damages, any deficiency between the Fixed Annual Rent and Additional Rent due hereunder and the amount, if any, of the rents actually collected by Landlord on account of the new lease or leases of the Demised Premises for each month of the period which would otherwise have constituted the balance of the term of this Lease (not including any Renewal Periods, the commencement of which shall not have occurred prior to such dispossess or removal). In computing such liquidated damages there shall be added to said deficiency the expenses which Landlord incurs in connection with re-letting the Demised Premises, including reasonable attorneys’ and brokerage fees, tenant inducements such as free rent, moving expense reimbursements, tenant improvement allowances, brokerage commissions, fees for legal services, and other expenses of preparing the Demised Premises for reletting (“Reletting Expenses”). Such Reletting Expenses shall be paid to Landlord within ten (10) days of demand and all other liquidated damages shall be paid by Tenant in monthly installments on the dates specified in this Lease for payment of Fixed Annual Rent and any suit brought to collect the amount of the deficiency for any month shall not prejudice in any way the rights of Landlord to collect the deficiency for any subsequent month by a similar proceeding. Landlord shall not be liable for failure to re-let the Demised Premises or, in the event that the Demised Premises are re-let, for failure to collect the rent under such re-letting, unless Landlord shall not have used its commercially reasonable efforts to re-let the Demised Premises for the reasonable rental value thereof and to collect the rent under such re-letting. Landlord shall use its commercially reasonable efforts to mitigate damages.

 

C.                                          Landlord hereby expressly waives any and all rights granted by or under any present or future laws to reenter the Demised Premises, to dispossess Tenant or any other occupant thereof or to remove their effects not previously removed by them, or to terminate this Lease for any reason or in any manner other than as set forth in this Section 25. Tenant hereby expressly waives any and all rights granted by or under any present or future laws to remain in possession, cure any defaults or redeem its leasehold for any reason or in any manner other than as set forth in this Section 25. The provisions of this Section 25 shall survive the early termination of the Term.

 

D. Any sum due from Tenant under this Lease is not paid within five (5) days after the same is due, such amount shall bear interest from the date due at the rate of one and one-half (1 1/2%) percent for each month (or ratable portion thereof) the same remains unpaid. Nothing in this Lease shall limit the right of Landlord to prove and obtain in proceedings for bankruptcy or insolvency an amount equal to the maximum allowed by any statute or rule of law in effect at the time; and Tenant agrees that the fair value for occupancy of all or any part of the

 

348

 

Demised Premises at all times shall never be less than the Fixed Annual Rent and all Additional Rent payable from time to time.

 

E. The Guaranty given by Guarantor of this Lease is a material inducement to Landlord’s entering into this Lease. If at any time the Guarantor of this Lease shall sell all or a material portion of its assets or shall merge or consolidate with another entity and, in either case, if (1) Guarantor (including the resulting entity of any merger or consolidation) has a tangible net worth immediately after the transaction that is less than Guarantor’s tangible net worth immediately prior to the transaction, and (2) Guarantor’s tangible net worth immediately after the transaction is less than the Minimum Credit Test, then the transaction shall be a default under this Lease for which there is no cure period entitling Landlord to exercise all of the rights and remedies under this Section. If at any time the existing Guarantor desires to assign the Guaranty to another person and for such person to assume all of the obligations and liabilities under the Guaranty, and if the proposed successor Guarantor’s tangible net worth is greater than the Minimum Credit Test, Tenant may present evidence of such proposed successor Guarantor’s tangible net worth to Landlord in the form of financial statements for (A) the most recent fiscal year of the proposed successor Guarantor audited by a nationally recognized firm of certified public accountants and (B) the most recent fiscal quarters since such fiscal year certified to by Guarantor’s chief financial officer, together with a form of Guaranty identical in form to the form of Guaranty attached to this Lease as Exhibit F to be executed and delivered by the proposed successor Guarantor. Upon Landlord’s written approval of such financial statements as demonstrating a tangible net worth of the proposed successor Guarantor greater than the Minimum Credit Test (which approval will not be unreasonably withheld, conditioned or delayed) and upon the execution and delivery to Landlord of such form of Guaranty by the proposed successor Guarantor, the existing Tenant (if, but only if the Lease is being assigned to a successor Tenant) and Guarantor shall be released from all liability under the Lease and Guaranty and the successor Tenant and Guarantor shall become fully liable to Landlord under the Lease and Guaranty. Thereafter and as an obligation of the then successor Tenant under this Lease, such successor Guarantor shall annually and quarterly continue to provide such financial statements to Landlord demonstrating that it continues to meet the Minimum Credit Test for those provisions of this Lease requiring such as a condition of being relieved from certain Lease obligations otherwise applicable. As used in this Lease “Guarantor” means the Guarantor then fully liable under its Guaranty to Landlord. “Tangible net worth” means the net worth as shown on such financial statements prepared in accordance with generally accepted accounting principles consistently applied and disregarding any value attributable to good will or other intangible assets and amounts owed by shareholders, officers or Affiliates except to the extent such amounts owed by Affiliates would ordinarily and customarily be consolidated on Tenant’s financial statements. “Minimum Credit Test” means a tangible net worth as shown on such fiscal year and fiscal quarter financial statements of at least Five Hundred Million Dollars ($500,000,000).

 

26. DESTRUCTION.

 

A. In the event of any damage or destruction by fire, the elements, or casualty insured under casualty insurance Landlord is obligated to carry under Exhibit G (hereinafter called “Destruction”) to all or any part of the Improvements including but not limited to those portions, if any, of the Common Area as is insurable under such insurance, Landlord shall

 

349

 

commence promptly, and with due diligence continue subject to Section 21, to restore same to substantially the same condition as existed immediately preceding the Destruction to the extent permitted by applicable law, the availability of insurance proceeds (so long as Landlord has maintained the casualty insurance Landlord is obligated to carry under Exhibit G) and except as otherwise provided in this Section. If the Destruction is partial, Landlord shall complete the restoration within two hundred seventy (270) days after the Destruction subject to Section 21. If the Destruction is total, Landlord shall complete the restoration within eighteen (18) months after the Destruction, subject to Section 21. If the Destruction is to the Demised Premises and is total, then Tenant shall have the right to request that Landlord to make changes to the Tenant’s Building within one (1) month after such Destruction as are reasonably and mutually agreed to by Landlord and Tenant (which changes may not expand the footprint of Tenant’s Building unless Landlord and Tenant so agree and agree to such extra rent therefore, such agreement to be in the form of an amendment to this Lease) and provided that Tenant deposits with Landlord at the time of commencement of such restoration work the extra cost reasonably estimated to Landlord of the design and construction of such Tenant requested changes.

 

B.                                          If, as a result of any Destruction, (1) fifty (50%) percent or more of the total floor area of the Tenant’s Building is damaged, destroyed or, in Tenant’s reasonable opinion, rendered untenantable when less than two (2) years remain under the term of this Lease and, if said term shall have been extended, then this provision shall apply only to the last two (2) years of the then existing Renewal Period, or (2) Landlord refuses to restore because of the non-availability of insurance proceeds, then Landlord or Tenant may elect to terminate this Lease by giving notice to the other of such election on or before the date which is ninety (90) days after the Destruction, stating the date of termination, which shall be not more than thirty (30) days after the date on which such notice of termination shall have been given, and (1) upon the date specified in such notice this Lease and the term hereof shall cease and expire and (2) any Fixed Annual Rent and Additional Rent shall be paid until such date of termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant upon demand. Landlord’s notice of termination hereunder shall be null and void if (x) in the case of (1) above, Tenant, within thirty (30) days after receipt of such notice from Landlord, is then permitted by the terms of this Lease to give, and shall give, notice of the exercise of an option to extend the term for the next succeeding Renewal Period; or (y) in the case of (2) above, Tenant, within thirty (30) days after receipt of such notice from Landlord, elects, at its sole option, to receive an assignment of any available insurance proceeds and restore the Demised Premises at Tenant’s sole cost.

 

C.                                          If, as a result of any Destruction, Tenant loses the use of the whole or any part of the Tenant’s Building or the whole or any part of the Common Area, Fixed Annual Rent and Additional Rent shall nevertheless continue to be paid hereunder, it being agreed that Tenant may insure against any such loss of business and Landlord shall have no such insurance obligation.

 

D. Insurance proceeds allocable to any partial or total Destruction of Tenant’s Building shall be deposited in trust with a bank or trust company acceptable to Tenant and under the control of Landlord and Tenant, as trustees, or, if the Fee Mortgagee on the Shopping Center shall be a bank, trust company or insurance company, or other entity engaged in mortgage lending then such proceeds shall be deposited with such Fee Mortgagee and shall be held and

 

350

 

disbursed by it, as trustee, for restoration in accordance with customary construction lending practice and procedures and as otherwise required by this Lease.

 

27. EMINENT DOMAIN.

 

A.                                        In the event of a taking for any public or quasi-public use by any lawful power or authority by exercise of the right of condemnation or of eminent domain or by agreement between Landlord and those having the authority to exercise such right (hereinafter called “Taking”) of the entire Tenant’s Building, then (1) this Lease and the term hereof shall cease and expire as of the date of vesting of title or transfer of possession, whichever occurs earlier, as a result of the Taking, and (2) any Fixed Annual Rent and Additional Rent paid for a period after such date of termination shall be refunded to Tenant upon demand.

 

B.                                          1. In the event of a Taking of any part of the Demised Premises, or in the event of a Taking resulting in a reduction of twenty (20%) percent or more of the parking spaces (unless Landlord provides adequate and sufficient additional contiguous parking areas in substitution therefor reasonably acceptable to Tenant), or in the event of a Taking resulting in a divided Shopping Center or parking area such that passage between the divided portions of the parking area is not possible, or in the event of permanent denial of reasonably adequate access to the Shopping Center on account of a Taking which in Tenant’s reasonable judgment makes it economically unfeasible to operate Tenant’s business at the Demised Premises, then Tenant may elect to terminate this Lease by giving notice of termination to Landlord on or before the date which is ninety (90) days after receipt by Tenant of notice that the Taking in question. Said notice of termination shall state the date of termination, which date of termination shall be not more than thirty (30) days after the date on which such notice of termination is given to Landlord, and (a) upon the date specified in such notice of termination this Lease and the term hereof shall cease and expire, and (b) any Fixed Annual Rent and Additional Rent shall be paid until the date of termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant upon demand.

 

2. If Tenant does not elect to terminate this Lease as aforesaid, then the award or payment for the Taking shall be paid to and used by Landlord for restoration as hereinafter set forth and Landlord shall promptly commence and with due diligence continue to restore the portion of the Common Area and the Demised Premises remaining after the Taking to substantially the same condition and tenantability as existed immediately preceding the Taking, subject to applicable law, Section 21 and the Taking proceeds received by Landlord. If the Taking occurs to Tenant’s Building, Tenant shall have the same right to request changes to the Tenant’s Building in the course of such restoration as Tenant has in Section 26. Landlord shall complete the restoration within two-hundred seventy (270) days after the Taking subject to Section 21. Taking proceeds shall be paid, held and disbursed in the same manner as insurance proceeds under Section 26C and there shall be no abatement or reduction in Fixed Annual Rent or any Additional Rent. Any taking proceeds remaining after the restoration is complete shall be divided equally between Landlord and Tenant.

 

C. If this Lease is terminated under any provision of this Section 27, so long as Tenant is not then in breach of this Lease beyond any applicable cure period, any specific damages that are expressly awarded to Tenant on account of its relocation expenses and

 

351

 

specifically so designated shall belong to Tenant. Except as provided in the preceding sentence of this paragraph, Landlord reserves to itself, and Tenant releases and assigns to Landlord, all rights to damages accruing on account of any Taking or by reason of any act of any public authority for which damages are payable. Tenant agrees to execute such further instruments of assignment as may be reasonably requested by Landlord, and to turn over to Landlord any damages that may be recovered in any proceeding or otherwise; and Tenant irrevocably appoints Landlord as its attorney-in-fact with full power of substitution so to execute and deliver in Tenant’s name, place and stead all such further instruments if Tenant shall fail to do so after 10 days notice.

 

28.                                    THIRD PARTY LITIGATION. If Landlord, Landlord’s adviser or its mortgagees are made parties to any litigation commenced by or against Tenant by or against any person claiming through Tenant with respect to the Demised Premises, Tenant agrees to indemnify Landlord in the manner provided in Section 38 and in addition pay, as Additional Rent, all costs of Landlord in connection with such litigation including reasonable counsel fees and litigation costs, except in the sole instance where Landlord or Tenant have legal claims in the litigation against one another or where Landlord has been adjudicated in any litigation to have acted with gross negligence or willful misconduct. Without limitation, the foregoing includes foreclosure or enforcement of any lien, attachment or mortgage on the Demised Premises resulting from the act or omission of Tenant, but shall not include any Fee Mortgage or other lien created by Landlord.

 

29.                                    WAIVER OF DISTRAINT. Landlord hereby expressly waives any and all rights granted by or under any present or future laws to levy or distrain for rent, in arrears, in advance or both, upon all goods, merchandise, equipment, trade fixtures, furniture and personal property of Tenant or any nominee of Tenant in the Demised Premises, delivered or to be delivered thereto.

 

30. ESTOPPEL CERTIFICATES. Upon the request of either party, at any time and from time to time, Landlord and Tenant agree to execute and deliver to the other, within thirty (30) days after such request, a written instrument that may be relied upon by the requesting party, its potential purchasers, lenders, investors, subtenants and/or assignees (and any of their respective successors and assigns), duly executed, (a) certifying if such is the case that this Lease has not been modified and is in full force and effect or, if there has been a modification of this Lease, that this Lease is in full force and effect as modified, stating such modifications, (b) specifying the dates to which the Fixed Annual Rent and Additional Rent have been paid, (c) stating whether or not, to the knowledge of the party executing such instrument, the other party hereto is in default and, if such party is in default, stating the nature of such default, (d) stating the Commencement Date and Expiration Date, (e) stating which options to renew the term have been exercised, if any; and (f) any other information that may reasonably requested by the requesting party and customarily addressed in an estoppel certificate.

 

31. NOTICES. Any notices, consents, approvals, submissions or demands (“Notices”) given under this Lease or pursuant to any law or governmental regulation, including, without limitation, those by Landlord to Tenant or by Tenant to Landlord shall be in writing. Unless otherwise required by law, governmental regulation or this Lease, any such Notice shall be deemed given if sent by registered or certified mail, return receipt requested, postage prepaid

 

352

 

or by nationally recognized overnight delivery service (a) to Landlord, at the address of Landlord as hereinabove set forth and with like copy given to Daniel A. Taylor, Esq. or Primo Fontana, Esq., DLA Piper, 33 Arch Street 26th Floor, Boston MA 02110 and/or such other persons and addresses as Landlord may designate by notice to Tenant; or (b) to Tenant, then one copy shall be delivered to the attention of the General Counsel, another shall be delivered to the attention of the Senior Vice President of Real Estate, and another shall be delivered to the attention of the Senior Director of Properties and Administration, all at 2 Paragon Drive, Montvale, New Jersey 07645 or to such other addresses as Tenant may designate by notice to Landlord. Any such Notice shall be deemed given three (3) business days after being sent by registered or certified mail, return receipt requested, postage prepaid, and one business (1) day when sent by overnight delivery. A party’s attorney may give Notices on behalf of such party.

 

32.                                    BROKER. Each party represents and warrants to each other there is no broker, agent, finder or other person with whom it has dealt in connection with the negotiation, execution and delivery of this Lease other than those persons named in that certain Agreement of Sale and Leaseback dated as of November 2, 2010 entered into between Tenant and Landlord (or Affiliates of each) regarding a transaction that led to this Lease.

 

33.                                    LIENS. Tenant shall keep the Demised Premises (and Landlord’s interest therein) and Tenant’s leasehold (and Tenant’s interest therein) free of, and shall within thirty (30) days discharge, any attachment, lien, security interest or other encumbrance that arises as a result of any act or omission of Tenant or persons acting by, through or under Tenant. Without limitation, Tenant will not permit or suffer any mechanic’s or materialmen’s or other liens to stand against the Demised Premises for any labor or material furnished in connection with work of any character performed, any services provided or any other act, omission or obligation on the part or at the direction of Tenant or persons claiming by, through or under Tenant, and Landlord will not permit any such liens for work or material furnished the Landlord to stand against said premises (the foregoing shall not imply that Landlord has any responsibility to furnish any work or material). However, Landlord and Tenant shall respectively have the right to contest the validity or amount of any such lien, provided that the payment of such amount is bonded during the pendency of such contest, but upon the final determination of such contest the party responsible for such lien shall immediately pay any judgment rendered with all proper costs and charges (including reasonable attorneys’ fees) and shall have the lien released at its own expense. In lieu of bonding either party may obtain other security acceptable to the other party in such party’s sole discretion. Any contest hereunder shall be subject to all requirements set forth in any Fee Mortgage.

 

34. DEFINITION OF LANDLORD. The term “Landlord” as used herein, means Landlord named herein and any subsequent owner of Landlord’s estate hereunder. Any owner of Landlord’s estate hereunder shall be relieved of all liability under this Lease after the date that it ceases to be the owner of Landlord’s estate (except for any liability arising prior to such date) and the party succeeding to Landlord’s estate shall assume all liability of Landlord arising from and after it becomes owner of Landlord’s estate. The foregoing shall be self-operative but Landlord and Tenant shall upon the request of either execute and deliver an instrument acknowledging the foregoing.

 

353

 

35.                                    ADJOINING OR ADJACENT PROPERTY. Landlord and Tenant shall each promptly forward to the other any notice or other written communication received by it from any owner of property adjoining or adjacent to the Demised Premises or from any municipal or other governmental authority in connection with any hearing or other administrative proceeding relating to the use of the Demised Premises or any adjoining or adjacent property. Tenant may, at its sole cost and expense, in its own name and/or in the name of Landlord, appear in any such proceeding. Landlord shall fully cooperate with Tenant (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and shall, without limitation, make such appearances and furnish such information as may be reasonably required by Tenant. Landlord agrees to execute any instruments reasonably requested by Tenant in connection with any such proceeding.

 

36.                                    ENVIRONMENTAL LAWS.

 

A. “Environmental Laws” shall mean all federal, state or local laws, ordinances, rules, regulations, or policies, whether now or hereafter enacted, governing the use, clean-up, remediation storage, treatment, transportation, manufacture, refinement, handling, release, production or disposal of Hazardous Materials including, without limitation: (1) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, (42 U.S.C. Sections 9601, et. seq.) as amended by the Superfund Amendments and Reauthorization Act; (2) the Hazardous and Solid Waste Act amendments of 1984 Pub L 98-616 (42 U.S.C. Section 699); (3) the Hazardous Materials Transportation Act, (49 U.S.C. Section 1801, et. seq.); (4) the Resource Conservation and Recovery Act of 1976, (42 U.S.C. Sections 6901, et. seq.); or (5) the Toxic Substances Control Act, and any amendments thereto and any regulations adopted and publications promulgated pursuant thereto, or any other federal, state or local environmental laws, ordinances, rules, or regulations whether now or hereafter enacted. “Hazardous Materials” shall mean any hazardous wastes or hazardous substances as defined in any Environmental Law including, without limitation, any asbestos, PCB, toxic, noxious or radioactive substances, methane, volatile hydrocarbons, petroleum, petroleum by-products, industrial solvents or any other material or substance which could cause or constitute a health, safety or other environmental hazard to any person or property.

 

B. Tenant, at its sole cost and expense, shall until the Expiration Date of this Lease comply with all Environmental Laws and shall be responsible for all Hazardous Materials on or migrating from the Shopping Center prior to the Commencement Date, it being acknowledged that Tenant or its Affiliate owned the Shopping Center prior to the Commencement Date; provided, however, that Tenant shall not be responsible for Hazardous Materials migrating on to the Land from the land of third parties.

 

C. Tenant, at its sole cost and expense, shall until the Expiration Date of this Lease comply with all Environmental Laws and shall be responsible for all Hazardous Materials brought on or migrating from the Demised Premises after the Commencement Date, and Tenant shall be responsible for all Hazardous Materials brought onto the Shopping Center after the Commencement Date by Tenant or persons acting by, through or under Tenant. Except to the extent Tenant is required to do so under this Section 36, Landlord, at its sole cost and expense, shall until the Expiration Date of this Lease comply with all Environmental Laws and shall be

 

354

 

responsible for all Hazardous Materials except to the extent Tenant is required to do so under this Section 36.

 

D.                                         Landlord and Tenant shall provide each other with copies of any notices pertaining to any governmental proceedings or actions under any Environmental Law (including requests or demands for entry onto the Demised Premises and/or Land for purposes of inspection regarding the handling, disposal, clean-up or remediation of Hazardous Materials or claims, penalties, fines or assessments) within fifteen (15) days after receipt thereof.

 

E.                                           If required by governmental authority or if Landlord has a reasonable basis to believe a release of Hazardous Materials may have occurred or a threat of release exists on or from the Demised Premises or Hazardous Materials activities have taken place on the Demised Premises that do not conform to Environmental Laws, then Landlord may, but need not, perform appropriate testing in a commercially reasonable manner and the reasonable costs thereof shall be reimbursed to Landlord by Tenant upon demand as Additional Rent. Tenant shall execute affidavits, representations and the like from time to time at Landlord’s request concerning Tenant’s actual knowledge and belief regarding the presence or absence of Hazardous Materials at the Land and Demised Premises. In all events, and without limitation, Tenant shall indemnify all Indemnitees, expressly including without limitation all Fee Mortgagees, in the manner elsewhere provided in this Lease with respect to its obligations under this Section 36 (and for these purposes, the loss indemnified shall include without limitation any costs of investigation or remediation, and any claim of personal injury or property damage to any person);. The covenants of this Section shall survive the Term. Tenant shall from time to time upon Landlord’s request confirm all of the foregoing covenants directly to mortgagees.

 

37. LEASEHOLD MORTGAGE.

 

A. Tenant, and its successors and assigns (including, without limitation, any subtenant of Tenant), may, from time to time and without Landlord’s prior written consent, mortgage all or any portion of its right, title and interest in and to this Lease under one leasehold mortgage at any one time, or two leasehold mortgages given as part of a single financing transaction, to an Institutional Lender (each, a “Leasehold Mortgage”), and assign any or all rights under this Lease and any subleases as collateral security for such Leasehold Mortgage; provided that all rights acquired under such Leasehold Mortgage shall be subject to all of the terms, covenants and conditions of this Lease, and to all rights and interests of Landlord, none of which terms, covenants or conditions is or shall be waived by Landlord by reason of the right given to so mortgage such interest in this Lease. In no event shall Tenant have any right to mortgage or encumber Landlord’s fee interest in the Demised Premises. The term “Leasehold Mortgage” shall include whatever security instruments that may be used in the locale of the Demised Premises, such as, without limitation, deeds of trust, security deeds and conditional deeds, as well as financing statements, assignment of leases and rents, security agreements and other documentation required pursuant to the Uniform Commercial Code. The term “Leasehold Mortgage” shall also include any instruments required in connection with a sale-leaseback transaction. An “Institutional Lender” is a bank, trust company, savings and loan association, pension fund, endowment fund, insurance company, other institutional pool of recognized status or a governmental authority empowered to make loans or issue bonds or any other recognized institution regularly engaged in the making of mortgage loans that has not less than

 

355

 

$100,000,000 in assets. The holder of any Leasehold Mortgage shall be called a “Leasehold Mortgagee.”

 

B. If Tenant and/or Tenant’s successors and assigns (including, but not limited to, any sublessee of Tenant) shall grant a Leasehold Mortgage, and if Tenant shall send to Landlord a true copy thereof, together with a notice specifying the name and address of the Leasehold Mortgagee (“Mortgage Notice”), Landlord agrees that as long as any such Leasehold Mortgage shall remain unsatisfied of record or until a notice of satisfaction is given by the Leasehold Mortgagee to Landlord, the following provisions shall apply:

 

(1)                                       There shall be no cancellation, surrender or modification of this Lease by joint action of Landlord and Tenant without the prior consent of the Leasehold Mortgagee;

 

(2)                                       Landlord shall, upon serving Tenant with any notice of default, simultaneously serve a copy of such notice upon the Leasehold Mortgagee. The Leasehold Mortgagee shall thereupon have the same period to remedy or cause to be remedied the defaults complained of, and Landlord shall accept such performance by or at the instigation of such Leasehold Mortgagee as if the same had been done by Tenant; provided that in the case of defaults that cannot be cured by the payment of money in addition the Leasehold Mortgagee shall be entitled to such further time to remedy or cause to be remedied the defaults complained of as may be reasonably necessary for the Leasehold Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Leasehold Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion.. Nothing herein shall be construed as requiring a Leasehold Mortgagee to cure any default. Landlord’s failure to deliver any such copy to a Leasehold Mortgagee shall not affect the Landlord’s exercise of any right or remedy under the Lease in any way whatsoever;

 

(3)                                       If any default shall occur which, pursuant to any provision of this Lease, entitles Landlord to terminate this Lease, and if before the expiration of twenty (20) days from the date of the giving of notice of termination upon such Leasehold Mortgagee, such Leasehold Mortgagee shall have notified Landlord of its desire to nullify such notice and shall have paid to Landlord all Fixed Annual Rent and Additional Rent herein provided for which are then in default, and shall have complied (or caused compliance) with all of the other requirements of this Lease, if any are then in default, then, in such event, Landlord shall not be entitled to terminate this Lease and any notice of termination previously given shall be void and of no effect;

 

(4)                                       Notwithstanding anything in this Lease to the contrary, any sale of Tenant’s leasehold interest in any proceeding for the foreclosure of the Leasehold Mortgage, or the assignment or transfer of Tenant’s leasehold interest in lieu of the foreclosure of any Leasehold Mortgage, shall be deemed to be a permitted sale, transfer or assignment;

 

356

 

(5)                                       If not required to be held by the Fee Mortgagee, the proceeds from any insurance policies or arising from a Taking may be held by any institutional Leasehold Mortgagee and distributed pursuant to the provisions of this Lease;

 

(6)                                       The Leasehold Mortgagee may be added to the “Loss Payable Endorsement” of any and all insurance policies required to be carried by Tenant hereunder on the condition that the insurance proceeds are to be applied in the manner specified in this Lease and that the Leasehold Mortgage shall so agree; except that the Leasehold Mortgage may provide a manner for disposition of such proceeds as remain after full compliance with the restoration covenants of this Lease, if any, otherwise payable to Tenant (but not such proceeds, if any, payable to Landlord, any Fee Mortgagee or jointly to Landlord or Tenant) pursuant to the terms of this Lease; and

 

(7) Landlord shall provide Leasehold Mortgage with prompt notice of any legal proceeding or arbitration between Landlord and Tenant. Unless the Leasehold Mortgage provided otherwise, Leasehold Mortgagee shall have the right to intervene in any such proceeding and be made a party to such proceeding, and the parties hereby consent to such intervention.            Landlord’s failure to deliver any such notice to a Leasehold Mortgagee shall not affect the Landlord’s exercise of any right or remedy under the Lease in any way whatsoever.

 

Tenant, in any Mortgage Notice served upon Landlord under this Section, may exclude any or more of the above provisions, and if so excluded, such provisions shall not be effective.

 

C. Landlord shall, upon request, execute, acknowledge and deliver to each Leasehold Mortgagee, an agreement prepared at the sole cost and expense of Tenant, in form reasonably satisfactory to such Leasehold Mortgagee and Landlord, between Landlord, Tenant and Leasehold Mortgagee, separately agreeing to all of the provisions of this Section.

 

38. INDEMNITY. Except as otherwise expressly set forth in this Lease, Tenant shall assume exclusive control of the Demised Premises and all areas pertaining thereto including all appurtenances, improvements, utilities, water bodies, grounds, sidewalks, walkways, driveways and parking facilities, and Tenant shall bear the sole risk of all related tort liabilities. To the greatest extent permitted by applicable law, Tenant shall indemnify, save harmless and defend Landlord, Landlord’s adviser and mortgagees and their respective officers, directors, managers, members, partners, agents and employees, (“Indemnitees”) from all liability, claim, damage, cost or loss (including reasonable fees and litigation costs) arising in whole or in part out of, or in any manner connected with (i) any injury, loss, theft or damage to any person or property while on or about the Demised Premises, or (ii) any condition of the Demised Premises, or the possession and use thereof (including any failure to vacate at the end of the Term) or any activity permitted or suffered on the Demised Premises (including Hazardous Materials), or (iii) any breach of any covenant, representation or certification by Tenant or persons acting under Tenant, or (iv) any negligent act or omission anywhere by Tenant or persons acting under Tenant, in each case paying the same to Landlord on demand as Additional Rent, except to the extent such liability results from the negligence or willful misconduct of Landlord or the other Indemnitees. Without implying that other covenants do not survive, the covenants of this Section shall survive the Term. Tenant shall immediately respond and assume the investigation, defense and expense

 

357

 

of all of the foregoing matters. Landlord or any Indemnitee, at its sole cost and expense, may join in such defense with counsel of its choice.

 

39.                                    LIMITATION OF LANDLORD’S LIABILITY. Notwithstanding anything contained to the contrary in this Lease, whether express or implied, it is agreed that Tenant will look only to Landlord’s fee interest in and to the Demised Premises for the collection of any judgment (or other judicial process) requiring the payment of money by Landlord in the event of a breach or default under this Lease by Landlord with respect to any claim whatsoever related to the Demised Premises, and no other property or assets of Landlord or of Landlord’s adviser or of any Fee Mortgagee or its or their managers, members, directors, officers, trustees, beneficiaries, shareholders, partners, joint venturers (disclosed or undisclosed) shall be subject to suit or to levy, execution or other enforcement procedures for the satisfaction of any such judgment (or other judicial process). No officer, director, manager, member, shareholder, trustee, beneficiary, partner, agent, attorney or employee of Landlord or of Landlord’s adviser or of any Fee Mortgagee shall ever be personally or individually liable; nor shall Landlord, Landlord’s adviser or any Fee Mortgagee or such persons ever be answerable or liable in any equitable judicial proceeding or order beyond the extent of their interest in the Demised Premises. In no event shall Landlord, Landlord’s adviser or any Fee Mortgagee or any such persons ever be liable to Tenant for indirect or consequential damages.

 

40.                                    BOOKS AND RECORDS. Tenant shall at all times keep and maintain full and correct records and books of account of the operations of the Demised Premises in accordance with generally accepted accounting principals consistently applied and shall accurately record and preserve the records of such operations in accordance with its customary records retention policy. Notwithstanding that there has been no Percentage Rent Event, Tenant shall report the gross sales from the Demised Premises to Landlord annually for each fiscal year of Tenant no later than thirty (30) days following the end of such fiscal year, such report to be certified by Tenant’s chief financial officer. Landlord shall keep such information confidential at all times in accordance with the terms of Exhibit K and may only release such information to Landlord’s constituent members, and so long as such persons execute and deliver to Tenant a Confidentiality Agreement with Tenant in the form attached hereto as Exhibit K (“Confidentiality Agreement”) whether or not Tenant signs such Confidentiality Agreement, also to its lenders and prospective lenders and to prospective purchasers of Landlord’s interest in the Demised Premises. Upon an Event of Default, Tenant shall permit Landlord, Landlord’s accountants and Fee Mortgagees reasonable access thereto, with the right to make copies and excerpts therefrom upon reasonable advance notice to Tenant.

 

41.                                    SATELLITE DISH. If permitted by applicable law, Tenant shall have the right to place on the roof or wall of the Demised Premises at Tenant’s sole cost and expense, a satellite dish (hereinafter called the “Dish”) for transmission of data (both receiving and sending) between Tenant’s various operations and its headquarters in accordance with all laws and governmental regulations.

 

42.                                    NO PRESUMPTION AGAINST DRAFTER. Landlord and Tenant agree and acknowledge that this Lease has been freely negotiated by Landlord and Tenant. In any event of any ambiguity, controversy, dispute or disagreement over the interpretation, validity or enforceability of this Lease or any of its covenants, terms or conditions, no inference,

 

358

 

presumption or conclusion whatsoever shall be drawn against Tenant by virtue of Tenant’s having drafted this Lease.

 

43.                                    SUCCESSORS AND ASSIGNS; AFFILIATES. The covenants and agreements contained in this Lease shall bind and inure to the benefit of the successors and assigns of each party. As used in this Lease “Affiliate” (whether or not capitalized) shall mean, with respect to any person, any person controlled by, controlling, or under common control with such person; and “control” shall mean any direct ownership interest or right through the exercise of voting or approval rights or otherwise, to exercise decision-making authority generally.

 

44.                                    CAPTIONS. The captions preceding the Sections of this Lease are intended only as a matter of convenience and for reference and in no way define, limit or describe the scope of this Lease or the intent of any provision hereof.

 

45.                                    INVALIDITY OF CERTAIN PROVISIONS. If any provision of this Lease shall be invalid or unenforceable, the remainder of the provisions of this Lease shall not be affected thereby and each and every provision of this Lease shall be enforceable to the fullest extent permitted by law.

 

46.                                    CHOICE OF LAW/JURISDICTION. This Lease, and the rights and obligations of the parties hereto, shall be interpreted and construed in accordance with the laws where the Demised Premises are located (the “State”), without regard to the State’s internal conflict of law principles. Any disputes arising out of this Lease or between Landlord and Tenant shall be subject to the exclusive jurisdiction of the state courts of the State.

 

47.                                    NO WAIVER. The failure of either party to seek redress for violation of or to insist upon the strict performance of, any term, covenant or condition contained in this Lease shall not prevent a similar subsequent act from constituting a default under this Lease. Without limitation, no written consent by Landlord or Tenant to any act or omission that otherwise would be a default shall be construed to permit other similar acts or omissions. Neither party’s failure to seek redress for violation or to insist upon the strict performance of any covenant, nor the receipt by Landlord of rent with knowledge of any breach of covenant, shall be deemed a consent to or waiver of such breach. No breach of covenant shall be implied to have been waived unless such is in writing, signed by the party benefiting from such covenant and delivered to the other party; and no acceptance by Landlord of a lesser sum than the Fixed Annual Rent, Additional Rent or any other sum due shall be deemed to be other than on account of the installment of such rent or other sum due. Nor shall any endorsement or statement on any check or in any letter accompanying any check or payment be deemed an accord and satisfaction; and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such installment or pursue any other right or remedy. The delivery of keys (or any other act) to Landlord shall not operate as a termination of the Term or an acceptance or surrender of the Demised Premises. The acceptance by Landlord of any rent following the giving of any default and/or termination notice shall not be deemed a waiver of such notice.

 

48.                                    ATTORNEY’S FEES. In the event that either Landlord or Tenant employ an attorney to enforce or defend any of the conditions, covenants, rights or obligations of this Lease

 

359

 

(including, without limitation, a default by either party), then the prevailing party shall be entitled to all reasonable attorney fees and all other reasonable out-of-pocket litigation costs (including, but not limited to filing fees, expert reports and testimony, court costs and other usual costs of litigation of this type) incurred by such prevailing party.

 

49.                                    WAIVER OF TRIAL BY JURY. To the extent such waiver is permitted by law, the parties waive trial by jury in any action or proceeding brought in connection with this Lease or the Demised Premises.

 

50.                                    MISCELLANEOUS. Other than contemporaneous instruments executed and delivered of even date, if any, this Lease contains all of the agreements between Landlord and Tenant relating in any way to the Demised Premises and supersedes all prior agreements and dealings between them. There are no oral agreements between Landlord and Tenant relating to this Lease or the Demised Premises. This Lease may be amended only by a written instrument executed and delivered by both Landlord and Tenant. The provisions of this Lease shall bind Landlord and Tenant and their respective successors and assigns. Where the phrases “persons acting under” Landlord or Tenant or “persons claiming through” Landlord or Tenant or similar phrases are used, the persons included shall be assignees, sublessees, licensees or other transferees or successors of Landlord or Tenant as well as invitees or independent contractors of Landlord or Tenant, and all of the respective employees, servants, contractors, agents and invitees of Landlord, Tenant and any of the foregoing. As used herein, “monetary default” shall mean a default that can be substantially cured solely by the payment of money and nothing more and “non-monetary default” shall mean a default that cannot be substantially cured solely by the payment of money and northing more. If either party is granted any extension, election or other option, to be effective the exercise (and notice thereof) shall be unconditional, irrevocable and must be made strictly in accordance with the prescribed terms and times; otherwise its purported exercise shall be void and ineffective. The enumeration of specific examples of a general provisions or use of the word “including” shall not be construed as a limitation of the general provision. Unless a party’s approval or consent is required by the express terms of this Lease not to be unreasonably withheld, such approval or consent may be withheld in the party’s sole discretion. The submission of a form of this Lease or any summary of its terms shall not constitute an offer by Landlord to Tenant; the leasehold shall only be created and the parties bound when this Lease is executed and delivered by both Landlord and Tenant. Nothing herein shall be construed as creating the relationship between Landlord and Tenant of principal and agent, or of partners or joint venturers or any relationship other than landlord and tenant. This Lease and all consents, notices, approvals and all other related documents may be reproduced by any party by any electronic means or by electronic, photographic or other reproduction process and the originals may be destroyed; and each party agrees that any reproductions shall be as admissible in evidence in any proceeding as the original itself (whether or not the original is in existence and whether or not reproduction was made in the regular course of business), and that any further reproduction of such reproduction shall likewise be admissible. If any payment in the nature of interest provided for in this Lease shall exceed the maximum interest permitted under controlling law, as established by final judgment of a court, then such interest shall instead be at the maximum permitted interest rate as established by such judgment. Landlord and Tenant expressly agree that there are and shall be no implied warranties of merchantability, habitability, suitability, fitness for a particular purpose or of any other kind arising out of this Lease, and there are no warranties or representations other than those expressly set forth in this Lease. Without

 

360

 

limitation, where Tenant in this Lease indemnifies or covenants for the benefit of present and future Fee Mortgagees, such agreements are for the benefit of present and future Fee Mortgagees as third party beneficiaries; and at the request of Landlord, Tenant from time to time will confirm such matters directly with such Fee Mortgagee.

 

51.                                    COUNTERPARTS. This Lease may be executed in any number of counterparts, each of which shall be deemed to be one and the same instrument. A facsimile, email, PDF or electronic signature shall be deemed an original signature.

 

52.                                    EXHIBITS. The exhibits attached to the Lease shall be deemed to be incorporated into this Lease as if set forth hereon, and where terms of any Exhibit conflict with the terms within the Lease, the terms of this Exhibit shall prevail and govern the Lease.

 

53. INCORPORATION OF STATE LAW PROVISIONS. Certain provisions/ sections of this Lease and certain additional provisions/sections that are applicable or required by laws of the state in which the Demised Premises are located may be amended, described or otherwise set forth in more detail on Exhibit J attached hereto, which such Exhibit by this reference, is incorporated into and made a part of this Lease. In the event of any conflict between such state law provisions and any provision herein, the state law provisions shall control.

 

[SIGNATURE PAGE FOLLOWS]

 

361

 

 

	
 
    	
 
    	
IN WITNESS WHEREOF this Lease has been duly   executed under as of the Effective Date.
    
	
WITNESS:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
WE APP OZONE PARK LLC, a Delaware limited   liability company
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    	
Title:
    
	
WITNESS:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
PATHMARK STORES, INC., a Delaware corporation
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
 
    	
Title:   Vice President and Secretary
    
						

 

Signature Page to Lease By and Between
 WE APP OZONE PARK LLC and PATHMARK STORES, INC.

 

362

 

EXHIBIT A

 

SITE PLAN OF DEMISED PREMISES

 

 

363

 

EXHIBIT B1

 

LEGAL DESCRIPTION OF THE LAND

 

BLOCK 9027 LOT 11 AND BLOCK 9028 LOT 1 ON THE TAX MAP OF QUEENS COUNTY

 

Parcel 1 and 2 (Composite Description)

 

All that certain plot, piece or parcel of land with the buildings or improvements thereon, erected, situate, lying and being in the Borough and County of Queens, City and State of New York, bounded and described as follows:

 

BEGINNING at the corner formed by the intersection of the northwesterly line of 95th Avenue (a/k/a University Place, f/k/a Chichester Avenue) (60 feet wide) with the southwesterly line of 93rd Street (a/k/a Clinton Place, f/k/a Woodhaven Avenue) (60 feet wide) and from said point of BEGINNING;

 

RUNNING THENCE along said northwesterly line of 95th Avenue, South 40 degrees 26 minutes 58 seconds West, a distance of 299.96 feet to a point;

 

THENCE along the dividing line between Lot 1, Block 9028 and Lot 51 (n/f reputed owner 7 Horizon Corp.), Block 9027, the following three (3) courses and distances:

 

1.               NORTH 49 degrees 33 minutes 02 seconds West, a distance of 74.03 feet to a point;

 

2.               THENCE South 40 degrees 26 minutes 58 seconds West, a distance of 3.85 feet to a point;

 

3. THENCE North 49 degrees 33 minute 02 seconds West, a distance of 24.97 feet to a point;

 

THENCE along the dividing line between Lot 11, Lot 51 and Lot 65 (n/f reputed owner 7 Horizon Corp.), Block 9027, South 40 degrees 26 minutes 58 seconds West, a distance of 466.97 feet to a point;

 

THENCE along the dividing line between Lot 11 and Lot 80 (n/f reputed owner Realex Development Corporation) and Lot 8 (n/f reputed owner Sutton Associates, Inc.), Block 9027, North 49 degrees 33 minutes 02 seconds West, a distance of 301.65 feet the southeasterly line of Atlantic Avenue (LIRR division, 120.01 feet wide);

 

THENCE along said southeasterly line of Atlantic Avenue, North 40 degrees 26 minutes 58 seconds East, a distance of 50.48 feet to a point;

 

 

364

 

THENCE along the dividing line between Lot 11 and Lot 102 (n/f reputed owner Jack Sloane), Block 9027, the following five (5) courses and distances:

 

1.               SOUTH 49 degrees 33 minutes 02 seconds East, a distance of 38.53 feet to a point;

 

2.               THENCE North 40 degrees 26 minutes 58 seconds East, a distance of 19.75 feet to a point;

 

3.               THENCE South 49 degrees 33 minutes 02 seconds East, a distance of 15.00 feet to a point;

 

4.               THENCE North 40 degrees 26 minutes 58 seconds East, a distance of 45.00 feet to a point;

 

5. THENCE North 49 degrees 33 minutes 02 seconds West, a distance of 15.00 feet a point;

 

THENCE continuing along the dividing line between Lot 11, Lot 102 and Lot 12 (n/f reputed owner Plainbridge, Inc.,) Block 9027, North 40 degrees 26 minutes 58 seconds East, a distance of 314.94 feet to a point;

 

THENCE continuing along the dividing line between Lot 11 and Lot 12, Block 9027, the following four (4) courses and distances:

 

1.               SOUTH 49 degrees 33 minutes 02 seconds East, a distance of 11.67 feet to a point;

 

2.               THENCE North 40 degrees 26 minutes 58 seconds East, a distance of 14.00 feet to a point;

 

3.               THENCE North 49 degrees 33 minutes 02 seconds West, a distance of 11.67 feet to a point;

 

4.               THENCE North 40 degrees 26 minutes 58 seconds East, a distance of 66.31 feet to a point;

 

THENCE along the dividing line between Lot 1, Block 9028 and Lot 12, Block 9027, North 49 degrees 33 minutes 02 seconds West, a distance of 38.53 feet to a point of the aforementioned southeasterly line of Atlantic Avenue;

 

THENCE along said southeasterly line of Atlantic Avenue, North 40 degrees 26 minutes 58 seconds East, a distance of 260.30 feet to a point on the aforementioned southwesterly line of 93rd Street;

 

THENCE along said southwesterly line of 93rd Street, South 49 degrees 33 minutes 02 seconds East, a distance of 400.65 feet to the corner aforesaid, the point or place of BEGINNING.

 

365

 

Together with the benefit and burden of that certain Declaration of Easement by Plainbridge, Inc. dated as of 1/11/1996 recorded 2/16/1996 in Reel 4278 Page 358. (affects Parcels 1 and 2)

 

BLOCK 9027, LOT(S) 51 AND 65 ON THE TAX MAP OF QUEENS COUNTY

 

Parcel 3

 

ALL that certain lot, piece or parcel of land, situate, lying and being at Woodhaven in the Fourth Ward of the Borough and County of Queens, City and State of New York, bounded and described as follows:

 

BEGINNING at a point on the northerly side of 95th Avenue, formerly University Place and Chichester Avenue distance 39.66 feet westerly from the corner formed by the intersection of the northerly side of 95th Avenue with the former westerly side of 92nd Street, discontinued and closed, (formerly Bigelow Avenue or Place);

 

RUNNING THENCE northerly at right angles to 95th Avenue, 74.03 feet;

 

THENCE westerly and parallel with 95th Avenue, 3.85 feet;

 

THENCE northerly at right angles to 95th Avenue, 24.97 feet;

 

THENCE westerly parallel with 95th Avenue, 466.97 feet;

 

THENCE southerly at right angles to 95th Avenue and part of the distance through a party wall, 99 feet to the northerly side of 95th Avenue;

 

THENCE easterly along said northerly side of 95th Avenue, 470.82 feet to the point or place of BEGINNING.

 

ALL the herein distances and dimensions being according to the United States Standard of Measurement.

 

Together with the benefit and burden of that certain Declaration of Easement by and between Supermarkets General Corporation and 7 Horizon Corp., dated as of August 7, 1987 and recorded November 17, 1987 in Reel 2494, Page 1380. (affects Parcels 1, 2 and a portion of Parcel 3)

 

366

 

EXHIBIT B2

 

TITLE MATTERS AND ENCUMBRANCES

 

1.                                       Taxes, tax liens, tax sales, water rates, sewer rents and assessments, not yet due and payable.

 

2.                                       Road Closing Waiver and Easement Agreement dated 8/2/84 between Supermarkets General Corporation and the City of New York recorded 10/16/85 in Reel 1942 cp 943.

 

3.                                       Reservation of a permanent perpetual easement contained in a deed between The City of New York and Supermarkets General Corporation dated 1/11/85 recorded 3/25/86 in Reel 2051, Page 235.

 

4.                                       Declaration of Easements by and between Supermarkets General Corporation and 7 Horizon Corp., dated as of 8/7/87 recorded 11/17/87 in Reel 2494, Page 1380.

 

5.                                       Grant of Easement by and between Supermarkets General Corporation and The Consolidated Edison Company dated 8/9/84 recorded 1/13/87 in Reel 2272, Page 2056.

 

6.                                       Declaration of Easement by Plainbridge, Inc., dated as of 1/11/96 recorded 2/16/96 in Reel 4278, Page 358.

 

7.                                       Parking, Ingress and Egress Easement dated as of 11/26/08 by Plainbridge, Inc., converted into Plainbridge LLC on 4/18/01 and Clocknorse Realty LLC recorded 10/27/09 as CRFN 2009000351215.

 

8.                                       Grant of Easement by Supermarkets General Corporation to the Brooklyn Union Gas Company dated 8/9/84 recorded 3/20/86 in Liber 2046 cp 358.

 

9.                                  Terms and Condition of an unrecorded lease dated 8/12/85 and between Supermarkets General Corporation and S.L.G. Burger as amended by the unrecorded First Amendment of Lease dated as of 1/5/99 by and between Pathmark Stores, Inc., (formerly known as Supermarkets General Corporation and Atlantic Restaurant Associates, Inc., (successor by merger to S.L.G. Burger, Inc., as evidenced by a Memorandum of Lease between the same parties dated as of 1/21/99 recorded 3/1/99 in Reel 5130 Page 2052 as amended by an unrecorded Amendment of Lease between the same parties dated as of 5/1/06 as evidenced by a Modification of Memorandum of Lease dated as of 8/28/07, between the same parties, recorded 10/1/07 as CRFN 2007000499568.

 

10.                               UCC Financing Statement with 7 Horizon Corp, as Debtor, New York Community Bank, as Secured Party filed as No. 02Q00781 on 1/25/02 continued by CRFN200600063 1285 on 11/14/06. NOTE: This affects the fee interest in Parcel 3 only.

 

11.                            Terms and conditions of an unrecorded Lease dated as of August 8, 1987 between 7 Horizon Corp., as Landlord and Supermarkets General Corporation, as Tenant as

 

367

 

evidenced by a Memorandum of Lease between the same parties dated as of August 7, 1987 recorded November 17, 1987 in Reel 2949 Page 1373, as amended by an unrecorded First Amendment to Lease dated as of September 10, 2010 by and between 7 Horizon Corp., Landlord and Pathmark Stores, Inc., Tenant, as affected by an Assignment and Assumption of Lease by and between 7 Horizon Corp., as Landlord, Pathmark Stores, Inc., as Assignor and WE APP WILMINGTON LLC, as Assignee dated            and recorded                          in Reel       , Page       .

 

368

 

EXHIBIT C

 

REMEDIAL WORK

 

(Tenant Performs Construction with Landlord Reimbursement)

 

Reimbursement Cap: $325,000.00

 

Remedial Work Completion Date: the third anniversary of the Effective Date of the Lease

 

C. 1 Construction Documents. Tenant shall prepare, at Tenant’s expense, and deliver to Landlord Construction Documents (meaning plans and specifications prepared by design professionals licensed to prepare such plans and specifications which reasonably fix and describe the work to be performed by Tenant contractors) for roof replacements, parking area repairs and replacements, heating, ventilating and air conditioning upgrades, environmental remediation, asbestos abatement and automation improvements in an amount totaling at least the amount of the Reimbursement Cap, all as Landlord and Tenant shall reasonably and mutually agree. The Construction Documents shall substantially conform to and describe such work as so agreed, and when such Construction Documents are approved by Landlord, such approval not to be unreasonably withheld, conditioned or delayed, the work described therein shall be the “Remedial Work” referred to herein. Tenant shall provide at least 6 copies of the Construction Documents to Landlord. Tenant shall be solely responsible for the liabilities and expenses of all architectural and engineering services relating to the Remedial Work and for the adequacy and completeness of the Construction Documents submitted to Landlord and for the Remedial Work itself, notwithstanding Landlord’s approval thereof.

 

C.2 Remedial Work Reimbursement. Upon Landlord’s approval of the Construction Documents showing the Remedial Work to be performed, Tenant shall cause the Remedial Work to be performed in accordance with all of the terms and requirements of the Lease including Exhibit G, and the reasonable out-of-pocket costs to Tenant of performing the Remedial Work shall be eligible for Reimbursement in the manner provided below up to but not in excess of the Reimbursement Cap listed above. All costs for the Remedial Work in excess of the Reimbursement Cap shall be paid for entirely by Tenant, and Landlord shall not provide any reimbursement therefor. Any Remedial Work not completed by the Remedial Work Completion Date listed above shall be ineligible for reimbursement from Landlord, and such Remedial Work shall be paid for solely by Tenant.

 

Notwithstanding anything in the Lease to the contrary, prior to the Remedial Work Completion Date Tenant shall have no obligation to perform any Remedial Work if the cost of same will exceed the Reimbursement Cap, unless Tenant determines, in its sole, reasonable judgment, that such work is necessary and prudent for the proper maintenance and operation of the Demised Premises.

 

Reimbursement of the reasonable out-of-pocket costs to Tenant of performing Remedial Work up to the Reimbursement Cap and by the Remedial Work Completion Date shall be disbursed to Tenant by Landlord in no more than four disbursements the requests for each of which shall not

 

369

 

be submitted more frequently than monthly. For each disbursement, Tenant shall submit a requisition package to Landlord with (1) an itemization of the costs being requisitioned, (2) a certificate by an officer of Tenant that all such costs are reasonable out-of-pocket costs to Tenant of performing Remedial Work and have been incurred and paid for by Tenant, that to the actual knowledge of Tenant the Remedial Work included within the requisition has been performed substantially in accordance with the Construction Documents and in accordance with the Lease, (3) appropriate back-up documentation including, without limitation, lien releases (in a form reasonably approved by Landlord) and paid invoices and bills and (4) a statement by Tenant’s chief financial officer that such officer knows of no default under the Lease on the part of Tenant nor of any event which with the giving of notice or the passage of time or both could ripen into a default under the Lease. The final requisition package shall further include a copy of all applications for and copies of all governmental permits issued in connection with the Remedial Work and the plans referred to in Section 13 of the Lease for any Alterations. Notwithstanding anything herein or in the Lease to the contrary, Landlord shall not be obligated to reimburse any costs of Remedial Work if a default under the Lease has occurred and is continuing. Landlord shall pay the reimbursement to Tenant within thirty (30) days following Landlord’s receipt of the completed package. In the event that Landlord fails to pay the reimbursement within such thirty (30) day period, Tenant may deduct the reimbursebable amount against Rent due under the Lease.

 

C.3 Performance of Remedial Work by Tenant. No Remedial Work for which reimbursement is sought shall be performed except in accordance with the Construction Documents. In connection with its approval thereof, Landlord may delete from the Construction Documents any items or aspects of Remedial Work which in Landlord’s reasonable judgment (i) would increase the cost of operating the Building or performing any other work in the Building, (ii) are incompatible with the design, quality, equipment or systems of the Building, (iii) would require unusual expense to readapt the Premises to general grocery store use or (iv) otherwise do not comply with the provisions of this Lease. Prior to commencing any Remedial Work, Tenant shall submit to Landlord certificates of insurance on the part of Tenant contractors meeting the requirements of Exhibit G paragraph 1A (4). If any such Tenant contractor or any other person ever makes a claim against any Indemnitee (as such term is defined in Section 38) in connection with any Remedial Work, then Tenant shall indemnify such Indemnitee in the manner provided in the Lease against such claim.

 

370

 

EXHIBIT D

 

FORM OF SUBORDINATION, NON-DISTURBANCE AND 
 ATTORNMENT AGREEMENT

 

KEY NO:

 

THIS AGREEMENT, made as of                       2010, by and among                       , a                       , and its successors and assigns, having an office at                                 (hereinafter together with its successors and assigns called “Mortgagee”), WE APP Ozone Park LLC, a Delaware limited liability company, having an office c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 (hereinafter called “Landlord”) and Pathmark Stores, Inc., a Delaware corporation having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”).

 

WITNESSETH:

 

WHEREAS, Mortgagee has made a loan, or is about to make a loan to Landlord in the original principal amount of $                       evidenced by a promissory Note secured by, among other securities, a mortgage or deed of trust (hereinafter, as the same may be amended, supplemented or otherwise modified from time to time, called the “Mortgage”) covering a parcel or parcels of land owned by Landlord and described on Exhibit A annexed hereto and made a part hereof, together with the improvements now or hereafter erected thereon (said parcel or parcels of land and improvements thereon being hereinafter called the “Mortgaged Property”);

 

WHEREAS, by a certain lease heretofore entered into between Landlord and Tenant dated as of November      2010 and amended by [     ] (said lease and amendments being hereinafter collectively called the “Lease”), Landlord leased to Tenant the Mortgaged Premises together with the building now or hereafter erected on all or a portion of said premises (the Mortgaged Premises and the improvements on or to be erected thereon being thereinafter called the “Demised Premises”);

 

WHEREAS, a Memorandum of Lease dated November         2010 was recorded on November       , 2010 in the                       in Book              , Page              ;

 

WHEREAS, a copy of the Lease has been delivered to Mortgagee, the receipt of which is hereby acknowledged; and

 

WHEREAS, Mortgagee is unwilling to make said loan to Landlord unless the Lease is subordinate to the lien of the Mortgage; and

 

WHEREAS, Section 16 of the Lease provides that the Lease shall become subject and subordinate to the lien of a mortgage of the fee interest of the Demised Premises if and when a non-disturbance agreement is entered into with respect to such mortgage; and

 

WHEREAS, the parties desire to subordinate the Lease to the lien of the Mortgage, and to provide for the non-disturbance of Tenant by Mortgagee.

 

371

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.                                            Mortgagee hereby consents to and approves the Lease.

 

2.                                            Tenant covenants and agrees with Mortgagee that the Lease and any extensions, renewals, replacements or modifications thereof and Tenant’s interest in the premises under the Lease are and at all times shall subject and subordinate to the lien of the Mortgage, without regard to the order of priority of recording of the Mortgage and the Memorandum of the Lease, subject, however, to the provisions of this Agreement.

 

3.                                            Tenant certifies that the Lease is presently in full force and effect.

 

4.                                            Mortgagee agrees that so long as the Lease shall be in full force and effect and so long as Tenant is not in default (beyond any applicable notice and cure period) in the payment of fixed rent as set forth in the Lease, or in the performance of any of the terms, covenants or conditions of the Lease on Tenant’s part to be performed:

 

A.                                        Tenant shall not be named or joined as a party defendant or otherwise in any suit, action or proceeding for the foreclosure of the Mortgage or to enforce any rights under the Mortgage or the bond or note or other obligations secured thereby unless required by law to do so; and

 

B.                                          The possession by Tenant of the Demised Premises and the Tenant’s rights thereto shall not be disturbed, affected or impaired by, nor will the Lease or the term thereof be terminated or otherwise affected by (i) any suit, action or proceeding upon the Mortgage or the bond or note or other obligation secured thereby, or for the foreclosure of the Mortgage or the enforcement of any rights under the Mortgage or any other documents held by the Mortgagee, or by any judicial sale or execution or other sale of the Mortgaged Property, or by any deed given in lieu of foreclosure, or by the exercise of any other rights given to the Mortgagee by any other documents or as a matter of law, or (ii) any default under the Mortgage or the bond or note or other obligation secured thereby.

 

5.                                            Mortgagee hereby acknowledges and agrees that all trade fixtures and equipment whether owned by Tenant or any subtenant or leased by Tenant from a Landlord/Owner in the Demised Premises shall be subject to the provisions of Section 17 of the Lease.

 

6.                                            If the Mortgagee shall become the owner of the Mortgaged Property by reason of foreclosure of the Mortgage or otherwise, or if the Mortgaged Property shall be sold as a result of any action or proceeding to foreclose the Mortgage or by a deed given in lieu of foreclosure, the Lease shall continue in full force and effect, without necessity for executing any new lease, as a direct lease between Tenant, as tenant thereunder, and the then owner of the Mortgaged Property, as landlord thereunder, upon all of the same terms, covenants and provisions contained in the Lease, and in such event:

 

372

 

A.                                        Tenant shall be bound to such new owner under all of the terms, covenants and provisions of the Lease for the remainder of the term thereof (including the Renewal Periods, if Tenant elects or has elected to exercise its options to extend the term) and Tenant hereby agrees to attorn to such new owner and to recognize such new owner as landlord under the Lease; and

 

B.                                          Such new owner shall be bound to Tenant under all of the terms, covenants and provisions of the Lease for the remainder of the term thereof (including the Renewal Periods, if Tenant elects or has elected to exercise its options to extend the term) which terms, covenants and provisions such new owner hereby agrees to assume and perform; provided, however, that such new owner shall not be (i) obligated to complete any construction work required to be done by Landlord within or outside of the Demised Premises pursuant to the provisions of the Lease or to reimburse Tenant for any construction work done by Tenant; however this provision shall not relieve such new owner from any repair or maintenance obligations of Landlord expressly set forth in the Lease accruing or arising following new owner’s acquisition of fee title to the Mortgaged Property or impair any express setoff rights of Tenant expressly set forth in the Lease accruing or arising following new owner’s acquisition of fee title to the Mortgaged Property; (ii) required to make any repairs to the Mortgaged Property or to the Demised Premises or to perform any other construction or other work, including without limitation the restoration of the Demised Premises following any casualty or taking; (iii) liable for the return of security deposits or letters of credit, if any, paid or delivered by or on behalf of Tenant to Landlord, except to the extent such sums are actually received by such new owner (or any Mortgagee if such Mortgagee is not the new owner); (iv) bound by any payment of rents, additional rents or other sums which Tenant may have paid more than one (1) month in advance to any prior Landlord unless such sums are actually received by Mortgagee or if such prepayment shall have been expressly approved of in writing by such new owner (or any Mortgagee if such Mortgagee is not the new owner); (v) bound by any agreement amending, modifying or terminating the Lease made without Mortgagee’s prior written consent; (vi) bound by any assignment of the Lease or sublease of the Demised Premises, or any portion thereof, made prior to the time such new owner succeeded to Landlord’s interest other than if made pursuant to the provisions of the Lease; (vii) liable on account of any default on the part of Landlord occurring prior to such new owner’s succeeding to Landlord’s estate; or (viii) subject to any counterclaims, offsets or defenses that Tenant might have against Landlord.

 

7.                                            If Landlord shall default in the performance of the Lease Tenant shall give written notice thereof to Mortgagee and Mortgagee shall have the right, but not the obligation, to cure such default in accordance with Section 23 of the Lease (and as provided therein the Mortgagee shall be entitled to such further time to cure as may be reasonably necessary for the Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion)

 

8.                                            Landlord has agreed in the Mortgage and other loan documents that the rents payable under the Lease shall be paid directly by Tenant to Mortgagee upon the occurrence of a default by Landlord under the Mortgage or any other loan document. Accordingly, after notice is given by Mortgagee to Tenant that the rents under the Lease should be paid to or at the

 

373

 

direction of Mortgagee, Tenant shall pay to Mortgagee, or in accordance with the directions of Mortgagee, all rents and other monies thereafter due and to become due under the Lease. Tenant shall have no responsibility to ascertain whether such demand by Lender is permitted under the Mortgage or any other loan document. Landlord hereby waives any right, claim or demand it may have nor or hereafter have against Tenant by reason of such payment to Mortgagee, and any such payment to Mortgagee shall discharge the obligations of Mortgagee to make such payment under the Lease.

 

9.                                            Any notices or communications given under this Agreement shall be in writing and shall be given by registered or certified mail, return receipt requested, postage prepaid, (a) if to Mortgagee at the address of Mortgagee as hereinabove set forth or at such other address as Mortgagee may designate by notice, or (b) if to Landlord at the address of Landlord as hereinabove, or at such other address as Landlord may designate by notice, or (c) if to Tenant, then one copy shall be delivered to the attention of the Senior Vice President of Real Estate of Tenant, another shall be delivered to the attention of General Counsel of Tenant, and another shall be delivered to the Director of Properties & Administration of Tenant, all at 2 Paragon Drive, Montvale, New Jersey 07645 or at such other addresses as Tenant may designate by notice. During the period of any postal strike or other interference with the mail, personal delivery shall be substituted for registered or certified mail.

 

10.                                      This Agreement shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective heirs, personal representatives, successors and assigns.

 

11.                                      This Agreement contains the entire agreement between the parties and cannot be changed, modified, waived or cancelled except by an agreement in writing executed by the party against whom enforcement of such modification, change, waiver or cancellation is sought.

 

12.                                      This Agreement and the covenants herein contained are intended to run with and bind all lands affected thereby.

 

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

 

	
WITNESS:
    	
 
    	
 
    
	
 
    	
 
    	
MORTGAGEE:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
, a
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

374

 

	
 
    	
 
    	
LANDLORD:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
WE   APP OZONE PARK LLC, a Delaware limited liability company
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PATHMARK   STORES, INC., a Delaware corporation
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   Vice President and Secretary
    

 

375

 

WITNESS:

 

MORTGAGEE ACKNOWLEDGMENT

 

STATE OF                     )

SS:

COUNTY OF                 )

 

ON THIS           day of            2010, before me, the subscriber, personally appeared                    to me known, who being by me duly sworn, did depose and say that he is                of                  the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notary   Public
    

 

LANDLORD ACKNOWLEDGMENT

 

COMMONWEALTH OF MASSACHUSETTS

 

Suffolk, ss.

 

On this         day of                    2010, before me, the undersigned notary public, personally appeared                              , proved to me through satisfactory evidence of identification, which was a [current driver’s license] [a current U.S. passport] [my personal knowledge], to be the person whose name is signed on the preceding instrument and acknowledged the foregoing instrument to be his/her free act and deed as                of WE APP Ozone Park LLC.

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notary   Public
    
	
 
    	
 
    	
My   Commission Expires:
    

 

376

 

TENANT ACKNOWLEDGMENT

 

STATE OF NEW JERSEY)

SS

COUNTY OF BERGEN)

 

ON THIS                   day of                   , 2010, before me, the subscriber, personally came Christopher W. McGarry, to me known, who being by me duly sworn, did depose and say that he is Vice President and Secretary of Pathmark Stores, Inc., the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notary   Public
    

 

377

 

EXHIBIT A

 

LEGAL DESCRIPTION OF MORTGAGED PROPERTY

 

(Attached)

 

378

 

EXHIBIT E 

 

KEY NO:                                                                                                                            

 

MEMORANDUM OF LEASE

 

THIS MEMORANDUM OF LEASE made as of November          , 2010 by WE APP OZONE PARK LLC, a Delaware limited liability company, having an office at c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 Attn: Adam Winstanley (hereinafter called “Landlord”), and PATHMARK STORES, INC., a Delaware corporation, having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”).

 

WITNESSETH:

 

1.                                           For and in consideration of the sum of TEN and no/100 Dollars ($10.00) and of other valuable considerations paid by Tenant to Landlord, the receipt and sufficiency of which are hereby acknowledged by Landlord, Tenant and Tenant hereby takes from Landlord that certain parcel of land (hereinafter called “Land”) described on Exhibit B and the buildings and other improvements now or hereafter erected on the Land together with the benefit of any and all easements, appurtenances, rights and privileges now or hereafter belonging thereto. The land is currently improved by an existing building consisting of 62,668 square feet of space (the “Building), as more particularly shown on the site plan attached hereto as Exhibit A. The Building and any buildings and improvements now or hereafter erected on the Land shall be hereinafter called “Improvements”. The Land and any Improvements now or hereafter erected thereon are hereinafter collectively called the “Demised Premises.” The Demised Premises have been leased to Tenant upon and subject to the covenants and agreements set forth in a certain agreement between Landlord and Tenant bearing even date herewith (hereinafter called the “Lease”).

 

2.                                            The Lease is in effect. The original term of the Lease shall continue to and include the date which is twenty (20) years after the day before the Commencement Date if the Commencement Date is the first day of a month, or twenty years (20) years after the last day of the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month.

 

3.                                            Tenant has the right and option to extend the term of the Lease from the date upon which it would otherwise expire for ten (10) separate renewal periods of five (5) years each (each such period being known as a “Renewal Period”). Said right and option, if exercised by Tenant, shall be in accordance with the terms and conditions of Section 4 of the Lease.

 

4.                                            The Lease contains the entire agreement between the parties. All persons are hereby put on notice of the existence of the Lease and are referred to the Lease for its terms and conditions. The Lease is on file in the offices of Tenant and the Landlord as hereinabove set forth.

 

5.                                           This Memorandum of Lease is prepared, signed and acknowledged solely for recording purposes under the laws of the State of New York, and is in no way intended to

 

379

 

change, alter, modify, amend or in any other way affect the rights, duties and obligations of Landlord and Tenant pursuant to the Lease; it being specifically understood and agreed between the parties that each has rights, duties and obligations imposed upon it in the Lease which are not expressly contained herein but are included herein by reference.

 

6. Upon expiration of the Lease term Landlord and its successors and assigns has irrevocably been named attorney-in-fact by Tenant in the Lease to execute, deliver and record a notice of termination of this Memorandum.

 

IN WITNESS WHEREOF this Memorandum of Lease has been duly executed as of the day and year first above written.

 

	
WITNESS:
    	
 
    	
WE APP OZONE PARK LLC, a
    
	
 
    	
 
    	
Delaware   limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
PATHMARK STORES, INC., a
    
	
 
    	
 
    	
Delaware   corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   Vice President and Secretary
    

 

380

 

EXHIBIT A

 

DEMISED PREMISES

 

381

 

EXHIBIT B

 

LEGAL DESCRIPTION OF THE LAND

 

382

 

COMMONWEALTH OF MASSACHUSETTS

 

Suffolk, ss.

 

On this            day of November 2010, before me, the undersigned notary public, personally appeared                                , proved to me through satisfactory evidence of identification, which was a [current driver’s license] [a current U.S. passport] [my personal knowledge], to be the person whose name is signed on the preceding instrument and acknowledged the foregoing instrument to be his/her free act and deed as                      of WE APP Ozone Park LLC.

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notary   Public
    
	
 
    	
 
    	
My   Commission Expires:
    

 

STATE OF NEW JERSEY)

SS

COUNTY OF BERGEN)

 

ON THIS             day of November, 2010, before me, the subscriber, personally came Christopher W. McGarry, to me known, who being by me duly sworn, did depose and say that he is the Vice President and Secretary of Pathmark Stores, Inc., the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
Notary   Public
    

 

383

 

EXHIBIT F

 

UNCONDITIONAL GUARANTY

 

WHEREAS, Pathmark Stores, Inc., a Delaware corporation (“Tenant”) desires to enter into a certain lease (“Lease”) of even date concerning Demised Premises known as 9210 Atlantic Avenue, Queens, New York, with WE APP Ozone Park LLC, a Delaware limited liability company (“Landlord”). (Terms used herein and not otherwise defined will have the meaning given in the Lease.)

 

WHEREAS, as an inducement to entering into the Lease Landlord has required that the undersigned The Great Atlantic & Pacific Tea Company, Inc. (“Guarantor”) unconditionally guarantees the performance of all obligations of Tenant under the Lease.

 

NOW, THEREFORE, for good and valuable consideration, intending to be legally bound hereby, Guarantor agrees as follows:

 

1.                                            Guarantor unconditionally and absolutely guarantees to Landlord (which shall include its legal representatives, successors and assigns) the due and punctual performance of each and all of the Tenant’s obligations under or related to the Lease, including the timely payment of all sums due therein. Tenant’s obligations hereby guaranteed include, without limitation, those arising under amendments or modifications to the Lease hereafter entered into by Tenant and Landlord, all of which shall be so guaranteed even though Guarantor hereafter does not consent to or approve the same (Guarantor hereby waiving all rights of consent or approval with respect to such amendments or modifications).

 

2.                                            Guarantor waives presentment for payment or performance, notice of nonpayment or performance, notice of default, demand, protest or notice or acceptance of this Guaranty, any rights Guarantor may have by reason of any forbearance, modification, amendment, extension or any indulgence whatsoever that Landlord may grant or to which Landlord and the Tenant may agree with respect to the Lease, any and all notice of every kind to which Guarantor might otherwise be entitled with respect to the incurring of any further obligation or liability by Tenant to Landlord, demand for payment, the presentment of any instrument for payment, the protest or nonpayment thereof and any and all defenses whatsoever excepting only Tenant’s performance as required by the terms of the Lease. Guarantor also waives, unless and until all of the obligations of Tenant are fully paid and performed, any right to be subrogated in whole or in part to any right or claim of Landlord against Tenant and any right to require the marshalling of any assets of the Tenant, which right of subrogation or marshalling might otherwise arise from any partial payment by the Guarantor. It is expressly understood and agreed that Guarantor’s liability hereunder shall be unaffected by (i) any amendment or modification whatsoever of the provisions of the Lease, (ii) any extension of time for performance under the Lease, (iii) any delay by Landlord in exercising any right under the Lease or this Guaranty (none of which shall ever operate as a waiver of such right), or (iv) the release of Tenant or any other guarantor from performance or observance of any of the agreements or conditions contained in the Lease by operation of law or otherwise, whether made with or without notice to Guarantor, including without limitation any impairment, modification, change, release, rejection, disaffirmance, or limitation of the liability of Tenant, or any other guarantor of the Lease, of their estate in

 

384

 

bankruptcy or insolvency resulting from the operation of any present or future provision of the Federal Bankruptcy Code or other similar or insolvency statute, or from the decision of any court. Guarantor covenants that Guarantor will cause Tenant to maintain and preserve the enforceability of the Lease, as the same may hereafter be modified or amended, and will not permit it to take or to fail to take action of any kind the taking of which or the failure to take might be the basis for a claim that Guarantor has any defense to its obligation hereunder other than timely performance in full of the Lease in accordance with its terms. The joint and several liability of Guarantor hereunder shall exist irrespective of the validity or enforceability of the Lease.

 

3.                                            This shall be an agreement of suretyship as well as of guaranty, and Landlord, without being required to proceed first against Tenant or any other person or entity, may proceed directly against Guarantor whenever Tenant fails to make any payment due or fails to perform any obligation now or hereafter owed to Landlord without first resorting to or exhausting any other remedy and without first having recourse to the Lease; provided, however, that nothing herein contained shall prevent Landlord from suing on the Lease with or without making Guarantor a party to the suit or from exercising any other rights thereunder and if such suit, or other remedy, is availed of, only the net proceeds therefrom, after deduction of all Landlord’s Costs of Collection (defined below) shall be applied in reduction of the amount then due on this Guaranty.

 

4.                                            Guarantor agrees to pay to Landlord, on demand, all costs and expenses, including reasonable attorneys’ fees and litigation expenses, which Landlord may incur in the enforcement of Tenant’s obligations under the Lease or the liability of Guarantor hereunder (“Costs of Collection”). “Costs of Collection” includes, without limitation, all out of pocket expenses incurred by the Landlord’s attorneys and all costs incurred by Landlord including, without limitation, costs and expenses associated with travel on behalf of Landlord, which costs and expenses are related to or in respect of Landlord’s efforts to collect and/or to enforce any of the obligations and/or to enforce any of its rights, remedies or powers against or in respect of either or both Tenant or Guarantor (whether or not suit is instituted in connection with such efforts).

 

5. Guarantor represents and warrants to Landlord that (i) it has either examined the Lease or has had an opportunity to examine the Lease and has waived the right to examine; (ii) that it (and the individual acting on its behalf) has the full power, authority and legal right to execute and deliver this Guaranty; (iii) that this Guaranty is a binding legal obligation and is fully enforceable against Guarantor in accordance with its terms; (iv) that there is no action or proceeding pending or, to its knowledge, threatened against Guarantor before any court or administrative agency which might result in any material adverse change in its business or condition or in its assets; (v) that neither the execution nor delivery of this Guaranty nor fulfillment of nor compliance with the terms and provisions thereof will constitute a default under or result in the creation of any lien, charge or encumbrance upon any property or assets of Guarantor under any agreement or instrument to which it is now a party or by which Guarantor may be bound; and (vi) that Guarantor is the sole owner of all the common stock of Tenant and expects to derive financial benefit from the Lease.

 

385

 

6.                                            This Agreement shall be binding upon Guarantor and its legal representatives, successors and assigns, and shall inure to the benefit of Landlord and its legal representatives, successors and assigns, and is irrevocable until released in writing by Landlord. Each and every right, remedy and power hereby granted to Landlord or allowed it by law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by Landlord at any time and from time to time. The validity, construction and performance of this Guaranty shall be governed by the laws of the State where the Demised Premises are located (the “State”), without regard to conflict of law principles. If any clause or provision of this Guaranty should be held illegal or invalid by any court, the invalidity of such clause or provisions shall not affect any of the remaining clauses or provisions hereof. In case any agreement or obligation contained in this Guaranty should be held to be in violation of law, then such agreement or obligation shall be deemed to be the agreement or obligation of the Guarantor, as the case may be, to the full extent permitted by law. Each and every default hereunder or under the Lease shall give rise to a separate cause of action hereunder. The obligations and liabilities of hereunder shall be joint and several with any other guarantees given to Landlord in connection with the Lease. This Guaranty may be amended only by instrument in writing executed and delivered by both Landlord and Tenant. The provisions of this Guaranty shall bind Guarantor and its respective successors and assigns, and shall inure to the benefit of Landlord and its successors and assigns. This Guaranty and all consents, notices, approvals and all other documents relating hereto may be reproduced by photographic, microfilm, microfiche or other reproduction process and the originals thereof may be destroyed; and each party agrees that any reproductions shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not reproduction was made in the regular course of business) and that any further reproduction of such reproduction shall likewise be admissible in evidence.

 

7.                                            Guarantor consents to and agrees that the courts of the State shall have personal jurisdiction over Guarantor for any action brought on this Guaranty including the right to grant judgment against Guarantor personally together with interest on any judgment obtained by Landlord at the interest rate set forth in the Lease for late payments (but if the same shall be unlawful for any reason, then at the highest permissible interest rate). Guarantor further agrees and consents that venue, if any, for any such action shall be as set forth in the Lease. Guarantor waives and relinquishes any and all rights to removal of any such action to any other court. Guarantor also waives trial by jury in any judicial proceeding involving any matter in any way arising out of or relating to this Guaranty or the Lease.

 

8. Any notice, communication, request or other document or demand made under this Guaranty shall be in writing and shall be deemed given at the earlier of (i) the date received or (ii) three (3) business days after the date deposited in a United States Postal Service Depository, postage prepaid first class certified or registered mail, return receipt requested, addressed to Guarantor or Landlord, as the case may be, at the respective addresses set forth opposite their names below:

 

386

 

Landlord:

 

WE APP Ozone Park LLC

c/o Winstanley Enterprises, LLC

150 Baker Avenue Extension, Suite 303 Concord, MA 01742

Attn. Adam Winstanley

 

with a copy similarly sent to:

 

DLA Piper LLP (US)

33 Arch Street, 26th Floor

Boston, MA 02110

Attention: Daniel A. Taylor, Esq. or Primo Fontana, Esq.

 

Guarantor:

 

The Great Atlantic & Pacific Tea Company, Inc.

2 Paragon Drive

Montvale, New Jersey 07645

Attn: Senior Vice President of Real Estate

 

with a copy similarly sent to

 

The Great Atlantic & Pacific Tea Company, Inc.

2 Paragon Drive

Montvale, New Jersey 07645

Attn: General Counsel

 

Either party may change an address to which any such notice, communication, request or other document or demand is to be delivered to it or delivery of copies thereof by furnishing written notice of such change to the other party. Each party shall, when giving notices, send at least one (1) copy by Federal Express, U.S. Express Mail, or other overnight delivery service, to the addressee.

 

IN WITNESS WHEREOF, Guarantor has executed and sealed this Guaranty the day of November         , 2010.

 

	
WITNESS:
    	
 
    	
THE GREAT ATLANTIC & PACIFIC
    
	
 
    	
 
    	
TEA COMPANY, INC., a Maryland corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   Senior Vice President
    

 

387

 

EXHIBIT G

 

INSURANCE

 

1.                                  INSURANCE.

 

A. Tenant Coverage. Tenant shall purchase and maintain insurance during the entire Term of the Lease and any period Tenant (or any party claiming by, through or under Tenant) occupies any portion of the Demised Premises, for the benefit of the Tenant and Landlord (as their interest may appear), and with such increases in limits as Landlord may from time to time reasonably request, but initially Tenant shall maintain the following coverages in the following amounts:

 

(1)                                       Commercial General Liability Insurance naming Landlord, Landlord’s management, leasing and development agents and Landlord’s mortgagee(s) from time to time as additional insureds, with coverage for premises/operations, personal and advertising injury, products/completed operations and contractual liability with combined single limits of liability of not less than $1,000,000 for bodily injury and property damage per occurrence and not less than 2,000,000 in the aggregate and excess liability insurance with a limit not less than $20,000,000 per occurrence and aggregate. Notwithstanding anything to the contrary contained herein, Tenant’s obligation to maintain general liability insurance may be satisfied through a program of self-insurance whereby Tenant self-insures the first $3,000,000.00 per claim as long as the program is supported by an A-rated insurance company and its third party administrator.

 

(2)                                       Workers’ Compensation Insurance and Employers Liability Insurance with statutory limits and automobile liability insurance (coverage must include owned, leased, hired and non owned vehicles) with a limit of at least $1,000,000 Combined Single Limit-Bodily Injury & Property Damage.

 

(3) Tenant shall purchase or shall cause each Tenant contractor performing work on the Demised Premises to carry insurance protecting against claims set forth below which may arise out of or result from the contractor’s operations on the Premises and naming Landlord, Landlord’s management, leasing and development agents as additional insureds for Premises Operations and Completed Operations. Waiver of Subrogation to apply under all policies.

 

(1)                                       claims under workers’ or workmen’s compensation, disability benefit and other similar employee benefit acts—in amounts as required by law;

 

(2)                                       claims for damages because of bodily injury, occupational sickness or disease, or death of his employees or any other person and other personal injury and motor vehicle liability — Public Liability - Single Limit (Combined) Per Occurrence. Bodily Injury/Property Damage $1,000,000 w/ $2,000,000 General/Completed Operations Aggregate. Automobile Liability - Single Limit (Combined) Per Occurrence Bodily Injury and Property Damage $1,000,000. Excess Liability Umbrella covering all above items $5,000,000 per Occurrence; and

 

388

 

(3) claims for damages, other than the work of the contractor itself, because of injury to or destruction of tangible property, including loss of use resulting therefrom — $1,000,000 per occurrence.

 

Tenant shall, prior to the commencement of the Term and on each anniversary of the renewal date thereof, furnish to Landlord certificate(s) evidencing such coverage, which certificate(s) shall state that such insurance coverage may not be canceled without at least thirty (30) days’ prior written notice to Landlord and Tenant. The insurance maintained by Tenant shall be deemed to be primary insurance and any insurance maintained by Landlord (acknowledging that Landlord has no obligation to maintain any insurance) shall be deemed secondary thereto. On all liability insurance Landlord, (and if requested, Landlord’s Fee Mortgagees and Landlord’s management, leasing and development agents shall be named as additional insureds with such coverage to be primary. Tenant agrees from time to time to deliver true and complete copies of all policies to Landlord upon request.

 

B.              Landlord Coverage

 

1. Landlord agrees to maintain insurance policies providing against loss by fire, lightning, the perils of extended coverage and malicious mischief covering the Demised Premises and the other Improvements in the Shopping Center. The policies covering the Demised Premises required under this Section 13 shall contain the following endorsements:

 

(a) An endorsement providing for thirty (30) day notice of cancellation of insurance to all who are or become additional insureds as required under this Lease;

 

(b)             An endorsement naming Tenant [and any future occupant(s) of the Demised Premises designated by Tenant] as an additional insured; and

 

(c) An endorsement whereby insurer acknowledges that Landlord has waived any and all rights of recovery against Tenant and any other occupant(s) of the Demised Premises and their agents and employees for damage or destruction to any or all of the Improvements including, without limitation, Tenant’s Building, whether or not caused by acts or negligence of Tenant or said occupant(s) or any of their agents or employees.

 

All policies of insurance required under this Section shall be for the full replacement value of Tenant’s Building and other Improvements required to be insured hereunder. Such policy or policies shall provide that the proceeds of any loss shall be payable to Landlord and Tenant and to the holder (as its interest may appear) of any mortgage to which this Lease is subordinate so long as such holder and future holders of such mortgage are obligated to apply proceeds of insurance in the manner provided for in this Lease.

 

2. Landlord shall maintain at its own cost and expense public liability insurance for the Common Areas having minimum limits of coverage of Five Million ($5,000,000.00) Dollars per occurrence combined single limit for bodily injury, personal injury and property damage. Tenant shall be named as an additional insured

 

389

 

C. General Requirements. All policies of insurance required under this shall be written and signed by solvent and responsible insurance companies and with insurers having a minimum A.M. Best rating of at least A/X and authorized to do business in the jurisdiction wherein the Shopping Center is located. Each party shall provide the other with certificates of such party’s insurers evidencing the insurance coverage required under this Section. Each party shall deliver to the other renewal policies or certificates thereof not later than thirty (30) days prior to the expiration of any policies which such party is required to carry hereunder. Notwithstanding anything to the contrary contained herein, if any party required to carry insurance hereunder has a Tangible Net Worth in excess of One Hundred Million ($100,000,000.00) Dollars, then such insurance may be carried in whole or in part under a program of self-insurance.

 

390

 

EXHIBIT H

 

PERCENTAGE RENT

 

If any Percentage Rent Event occurs as described in Section 5(E) of the Lease, then the following provisions shall immediately take effect, shall become a part of the Lease for the remainder of the Term and Tenant shall, in addition to all other rent provided for in the Lease, also pay Percentage Rent to Landlord in accordance with the following:

 

Section 5(E) Percentage Rent

 

5(E)(1) Percentage Rent - General Covenant. As used in this Section 5(E) the following terms have these meanings:

 

“Percentage Rent Rate” means one percent (1%) of Excess Gross Sales.

 

“Excess Gross Sales” means Gross Sales above the Gross Sales Benchmark.

 

“Gross Sales” has the meaning given below in Section 5 (E)(2).

 

“Gross Sales Benchmark” means $81,000,000.00, which amount is increased by five (5%) every five years at the same time Fixed Annual Rent increases under Section 5 (A) of the Lease.

 

Tenant covenants and agrees to pay to Landlord, as Additional Rent, the amount, if any, of Tenant’s Excess Gross Sales during any calendar month or part thereof during the Term, multiplied by the Percentage Rent Rate (“Percentage Rent”). (For any period less than a full calendar month the Excess Gross Sales and the Gross Sales Benchmark shall be prorated.) Such amounts payable hereunder are referred to as “Percentage Rent” and are also included in the term “Additional Rent.”

 

5 (E)(2) Gross Sales - Definition. “Gross Sales” means the total amount in dollars of the actual price charged (including finance charges), by Tenant and any sublease, assignee, licensee or other person conducting sales from or with respect to the Demised Premises, whether for cash or on credit, for all sales of merchandise, food, beverages, services, gift or merchandise certificates, and all other receipts of business conducted at, in, on, about or from the Premises, including, but not limited to, all mail or telephone orders, all internet sales, and all catalog sales and all home delivery sales received or filled at, from or with respect to the Premises, and including all deposits not refunded to purchasers, all orders taken in, from or with respect to the Premises, whether or not such orders are filled elsewhere, receipts of sales through any vending machine or other coin or token operated device or otherwise at, in, on, about, from or with respect to the Premises, and sales and receipts occurring or arising as a result of solicitation off the Premises conducted by personnel operating from or reporting to, or under the supervision of any employee of Tenant located at the Demised Premises. Gross Sales shall not, however, include any separately stated sums collected and remitted for any retail sales tax or retail excise tax imposed by any duly constituted governmental authority, nor shall they include any exchange of goods or merchandise between the stores of Tenant where such exchange of goods or merchandise is made solely for the convenient operation of the business of Tenant and neither for the purpose of consummating a sale which has theretofore been made at, in, on, about or from the Premises nor for the purpose of depriving Landlord of the benefits of a sale which otherwise would be made at, in, on, about, from or with respect to the Premises, nor the amount of any cash

 

391

 

or credit refund made upon any sale where the merchandise sold, or some part thereof, is thereafter returned by the purchaser and accepted by Tenant, nor sales of fixtures which are not a part of Tenant’s stock in trade. Each sale upon installment, credit or layaway shall be treated as a sale for the full price in the month during which such sale shall be made, irrespective of the time when Tenant shall receive payments from its customers, and no deduction shall be allowed for uncollectible payment by customer or uncollected or uncollectible credit accounts.

 

5(E)(3) Records and Reporting of Gross Sales. Tenant shall utilize, and cause to be utilized, cash registers equipped with consecutive serialized tapes and/or such other devices for recording sales as are normally used in Tenant’s type of business to record all sales and Tenant shall keep for at least 36 months after expiration of each calendar year or part thereof during the Term, full, true and accurate books of account and records (“books”) conforming to generally accepted accounting principles showing all Gross Sales transacted at, in, from and upon the Premises for such calendar year or part thereof, including all tax reports, dated cash register tapes, sales slips, sales checks, sales books, bank deposit records and other supporting data. Such books shall be kept on the Premises during the Term. Within fifteen (15) days after the end of each calendar month or portion thereof included in the Term, Tenant shall furnish to Landlord a statement of Gross Sales transacted during such previous month or portion thereof; and on or before each February 1 included in the Term and within thirty (30) days after the end of the Term Tenant shall furnish to Landlord a statement (the “Annual Statement”) certified by an independent public accountant of Gross Sales itemized on a calendar month by calendar month basis transacted during the preceding calendar year or part thereof. In the event of Tenant’s failure to furnish any statement of Gross Sales required hereunder, in addition to all other remedies afforded it under this Lease, Landlord shall be entitled to have an accountant of Landlord’s selection conduct an audit of Tenant’s books for such period or periods for which Tenant has failed to furnish such statements. Such audit shall be at Tenant’s expense and Tenant shall promptly reimburse Landlord for the costs of such audit. All such costs shall be deemed additional charges. Notwithstanding the foregoing, Landlord shall have the right from time to time by its accountants or representatives to audit all statements of Gross Sales and in connection with such audits to examine all of Tenant’s books (including all supporting data and any other records from which Gross Sales may be tested or determined) of Gross Sales; and Tenant shall make all books readily available for such examination. Failure of Tenant to make all books readily available for such examination shall be deemed a default under this Lease; and in addition to all other remedies afforded it under this Lease, Tenant shall promptly reimburse Landlord for the costs of such audit. All such costs shall be deemed additional charges. If any such audit discloses that the actual Gross Sales for any month transacted by Tenant exceed those reported by more than two percent, Tenant shall forthwith pay to Landlord the cost of such audit and examination together with any additional Percentage Rent payable to Landlord. Any information obtained by Landlord pursuant to the provisions of this Section shall be treated as confidential, except in any litigation or arbitration proceedings between the parties, and, except further, that Landlord may disclose such information to existing Lenders and to prospective buyers and lenders.

 

5 (E)(4) Payment. On or before the 15th day after the expiration of each full or partial calendar month included in the Term, Tenant shall pay all Percentage Rent due for such prior month to Landlord without demand, provided that if such amount exceeds the Percentage Rent

 

392

 

that would be payable with respect to such month if Percentage Rent were calculated on the basis of Gross Sales for all months elapsed in the then current calendar year, Tenant shall not be required to pay any amount on account of such month unless and until such amount shall later be payable as part of the annual adjustment. Upon receipt by Landlord of each Annual Statement of Gross Sales there shall be an adjustment between Landlord and Tenant to the end that Landlord shall receive the exact amount of Percentage Rent due hereunder. Any overpayments by Tenant hereunder shall be credited against the next payments due under this Section. Any underpayments by Tenant shall be immediately due and payable. With respect to the calendar year in which the Term ends, the adjustments shall be prorated for the portion of the calendar year included in the Term.

 

393

 

EXHIBIT I

 

SPECIAL SHOPPING CENTER PROVISIONS

 

1. REMAINDER OF THE IMPROVEMENTS.

 

A.             Landlord has induced Tenant to execute and deliver this Lease by making the following warranties, representations and agreements: (1) the Shopping Center, as shown on Exhibit A, shall not be modified in any material manner whatsoever without first obtaining Tenant’s consent thereto which consent shall not be unreasonably withheld, conditioned or delayed if such modification does not materially and adversely affect Tenant; (2) all buildings in the Shopping Center shall at all times be located entirely within the building sites shown on Exhibit A and the perimeter lines of such building sites shall be deemed to represent maximum building limits and no buildings shall extend beyond said limits or be constructed in whole or in part on any other portion of the Shopping Center without Tenant’s consent, which consent shall not be unreasonably withheld, conditioned or delayed if such modification does not materially and adversely affect Tenant; (3) the exterior of buildings for other tenants in the Shopping Center shall be similar in appearance to and harmonious with the exterior of the Tenant’s Building to the extent existing on the Commencement Date; and (4) except for the Tenant’s Building, no improvement or structure in the Shopping Center shall contain more than one (1) story or contain a basement or mezzanine from which retail sales are conducted to the public.

 

B.              Landlord shall use commercially reasonable efforts not permit the Common Area to be used for parking or any other purpose by any occupant or occupants of adjacent or contiguous property (which includes property which would be adjacent or contiguous to the Common Area but for any intervening road, street, highway or waterway) or by customers or invitees of such occupant or occupants, and upon request of Tenant, Landlord shall erect (and maintain as part of the Common Area and as a Common Area Charge) a fence or fences or any other barriers meeting Tenant’s reasonable requirements to separate the Common Area from any such adjacent or contiguous property. Tenant shall pay its Proportionate Share of the cost of constructing said fence, fences or other barrier.

 

C.              There shall be no flashing or animated sign, roof or free-standing sign or exposed neon sign in the Shopping Center other than any signs which exist on the Commencement Date or may be permitted under any Shopping Center leases existing on the Commencement Date. Except for signs which exist on the Commencement Date or may be permitted under any Shopping Center leases existing on the Commencement Date, all exterior signs shall be affixed parallel to, and shall not project more than twelve (12) inches from any building or canopy, except that Tenant shall have a free-standing sign or signs as hereinafter provided and any other sign provided for in the Criteria Drawings. There shall be no restrictions with respect to Tenant’s interior signs. Tenant may remove any or all of its signs at or prior to the Expiration Date.

 

D.              All portions of water, gas, electricity, sewage and other utility lines within the Shopping Center and not within the exterior walls of any structure or enclosed area may be installed above ground provided Landlord first obtains Tenant’s consent to the location and height thereof such consent not to be unreasonably withheld, conditioned or delayed.

 

394

 

2. COMMON AREA.

 

A.             Landlord shall, at its sole cost and expense but as a Common Area Charge, keep and maintain the Common Area in good condition and repair, including but not limited to, re-striping; repairing and replacing paving and the sub-strata thereof; keeping the Common Area properly policed, drained, free of snow, ice, water, rubbish and obstructions, and in a neat, clean, orderly, and sanitary condition; keeping the Common Area suitably lighted in accordance with the lighting facilities existing on the Commencement Date during and for appropriate periods [in any event not less than one (1) hour] before and after Tenant’s business hours; maintaining signs, markers and other means and methods of pedestrian and vehicular traffic control; and maintaining any existing plantings and landscaped areas.

 

B.              Except as otherwise expressly provided herein, the parking spaces in the Common Area shall be used only for the parking of private vehicles of customers, invitees and employees of tenants of the Shopping Center and for no other purpose. The roads, streets and drives shall be used for pedestrian and vehicular traffic serving the Shopping Center and for no other purpose. Employees of the tenants of the Shopping Center shall not park their automobiles in the Common Area except in that portion thereof designated as Employee Parking and Landlord shall require all other tenants of the Shopping Center to use their best efforts to prevent any violation of this provision. Tenant shall use its best efforts to prevent any such violation by its employees.

 

C.              Landlord shall not exact any charge or permit others to exact any charge for use of the Common Area from Tenant or its customers, invitees or employees or of any other tenant or from any other parties using the Shopping Center in accordance with the terms of this Lease.

 

D.              There shall be no advertisements or signs in the Common Area except the sign pylon or pylons and/or the announcement signs hereinbefore provided for and traffic control signs and any other signs existing on the Commencement Date. No merchandise shall be sold or displayed in the Common Area. Notwithstanding the foregoing, any occupant of the Demised Premises may use the sidewalk within the Shopping Center and immediately adjacent to the Demised Premises for selling and for the storage of shopping carts, may erect a cart corral or similar device thereon and may use said sidewalk for any other lawful purpose or purposes.

 

E. Landlord shall indemnify and hold harmless Tenant, its employees and agents from any and all claims, causes of action, damages, expenses and liability, including reasonable attorney’s fees, sustained or incurred by any persons (other than Tenant, its employees and agents) which are based upon or arise out of illness or injury, including death of any person or property damage to any property and which arise from, or in any manner grow out of, any negligent act or omission of Landlord, its agents, partners or employees in the Common Area to the extent not due to the negligence of Tenant, its agents, partners or employees. Landlord shall promptly respond to and assume the investigation, defense and expense of all claims and causes of action arising out of or in connection with occurrences within the Common Area as provided above. Tenant may, at its sole cost and expense, join in such defense with counsel of its choosing.

 

395

 

3. COMMON AREA COSTS.

 

A.             “Common Area Costs” shall mean all amounts paid or incurred by Landlord and its designees for maintenance and repair of the Common Areas (meaning all parking areas, walkways and driveways of the Shopping Center and related lighting fixtures, drainage and other facilities), including, without limitation, cleaning, snow and ice removal, planting, replanting and replacing flowers and landscaping, maintenance, repair and replacement of such areas, lighting, premiums for insurance and workers’ compensation insurance, unemployment, social security and salaries (including employee benefits) of any property management personnel directly and actually performing services in connection with the Common Areas (but there shall be excluded salaries of other office personnel such as secretaries and accountants, and the cost of all work done at Landlord’s main office), sales and use taxes on material, equipment, supplies and services purchased for maintenance of the common areas, fees for required licenses and permits, supplies, operation of loudspeakers and any other equipment supplying music to the common areas or any part thereof, operation of public toilets, if any, policing the Common Areas (including costs relating to controlling traffic thereto and therefrom) and affording protection thereof, reasonable depreciation of movable equipment used in the operation, reasonable rental of movable equipment used in the operation, repair and maintenance of the common areas (but in any such case without duplication as to depreciation charges on any such movable equipment), and all other similar direct costs properly chargeable to operation of the common areas. Common Area Costs shall not include the cost of maintaining, repairing or replacing any building in the Shopping Center. If Landlord, in its reasonable discretion, installs a new or replacement capital item to the common areas, the cost of such item together with an interest factor at three percentage points above the then “Prime Rate” (as published in the Wall Street Journal or comparable financial publication reasonably selected by Landlord) at the time such cost is incurred, shall be considered as though such cost and interest comprised a direct reduction loan amortizing over the useful life of such item, and the annual amortization amount shall be included in Common Area Costs. In addition, there shall be a five (5%) percent administrative fee payable to Landlord multiplied by all other Common Area Costs (excluding insurance and capital items) included within Common Area Costs.

 

B.              Tenant’s annual pro-rata share of Common Area Costs (herein called “Tenant’s Common Area Charge”) shall be the product of Common Area Costs and Tenant’s Proportionate Share.

 

C. Landlord shall estimate Tenant’s Common Area Charge each year and l/12th of the amount so estimated shall be payable as Additional Rent on the first day of each calendar month in advance. Within 90 days after the end of each calendar year, Landlord shall furnish Tenant a statement (“CAM Statement”) in reasonable detail of the actual amount of Tenant’s Common Area Charge prepared in accordance with GAAP, and there shall be an adjustment between Landlord and Tenant, with payment as Additional Rent to, or repayment by, Landlord, as the case may be within thirty (30) days of Landlord’s statement, so that Landlord shall receive the entire amount of Tenant’s Common Area Charge for such period. All CAM Statements shall be accompanied by copies of all third party invoices and other supporting documentation.

 

396

 

D.              If Tenant is open for business during the period commencing at 1:00 P.M. and ending at 7:00 A.M. (herein called “Extended Period”), Tenant shall pay its proportionate share of the additional costs of operating the Common Area arising out of and directly attributable to the operation of the Common Area during the Extended Period. If any other tenants are operating during all or any part of the Extended Period, Tenant shall be responsible for payment of an amount equal to the product of (a) said additional costs and (b) a fraction, the numerator of which shall be the gross floor area of the Demised Premises, and the denominator of which shall be the total gross floor area of all premises (including the Demised Premises) open during all or any part of the Extended Period, appropriately adjusted to reflect the number of hours that each business remains open during the Extended Period. Tenant’s share of said additional costs shall be paid to Landlord as Additional Rent together with the payment of Tenant’s Common Area Charge as set forth in this Exhibit, but none of said additional costs shall be included in Common Area Costs or Tenant’s Common Area Charge.

 

E.              Tenant may at any time during the twelve (12) month period after the CAM Statement in question audit Landlord’s books and records pertaining to Common Area Costs. Landlord shall cooperate with Tenant and shall make all such books and records available to Tenant at Landlord’s offices or another place within the municipality where the Demised Premises are located. If any audit discloses that Tenant paid in excess of its Common Area Charge, Landlord shall pay such excess to Tenant within fifteen (15) days after Landlord’s receipt of Tenant’s demands therefor. If any error is in excess of three (3%) percent of the amount actually payable by Tenant, then Landlord shall pay Tenant the reasonable out-of-pocket cost of such audit within ten (10) days after Landlord’s receipt of Tenant’s demand therefore. As a condition of auditing Landlord’s books and records, Tenant shall represent to Landlord that the person conducting such audit is not being compensated on any contingency of percentage basis whereby the amount of such compensation is determined in whole or in part by any excess payments made by Tenant.

 

F. In the event that Landlord is required to maintain, repair or replace any gas, water, electric and other utility lines in the Common Area that exclusively serve the Demised Premises, then the cost of the maintenance, repair or replacement shall not be a Common Area Charge, but rather Tenant shall pay reimburse Landlord for all of such costs (i.e. one hundred percent (100%)) as Additional Rent within thirty (30) days following Tenant’s receipt of the invoice for same.

 

4. RESTRICTIVE COVENANT.

 

A. Subject to the leases of the existing tenants in the Shopping Center and all extensions or renewals thereof, and subject also to the exclusion of the Burger King premises immediately adjacent to the Demised Premises which shall not be subject to the provisions of this sentence prohibiting the sale of food including beverages and food for off-premises consumption, Landlord covenants and agrees that, except for the Demised Premises (and the foregoing), it shall not lease, rent or occupy or permit any premises in the Shopping Center to be occupied for the sale of food, including, but not limited to, beverages and pet food, for off-premises consumption, the sale of health and beauty aids and/or the sale of prescription drugs. Landlord further covenants and agrees that it shall not lease, rent or occupy or permit any premises in the Shopping Center to be occupied for any noxious or offensive use, for

 

397

 

manufacturing or for use as a restaurant, theater, bowling alley, funeral parlor, warehouse, office (except for such office or warehouse use as shall be incidental to a permitted retail use) or non-retail use (nothing herein intended to characterize the uses listed in this sentence as retail uses).

 

B. Landlord expressly agrees that the covenants contained in this Article shall run with the Land during the Term of the Lease, and Landlord agrees that the covenants contained above may be included in any memorandum of lease in form for recording.

 

398

 

EXHIBIT J 

LOCAL LAW ADDENDUM

 

(Attached)

 

399

 

Lease Addendum (NY)

 

This Lease Addendum (“Addendum”) is supplemental to and made a part of that certain Lease dated as of November     , 2010 (the “Lease”) by and between WE APP Ozone Park LLC (“Landlord”) and Pathmark Stores, Inc. (“Tenant”). Capitalized terms used in this Addendum without definition shall have the meanings set forth in the Lease. This Addendum is to be construed as supplemental to, and part of, the Lease. In the event of any inconsistency between the Lease and this Addendum, the terms and provisions of this Addendum shall prevail.

 

Notwithstanding the terms and conditions contained in the Lease, and to the limited extent hereof, the parties agree as follows:

 

1.               Construction Lien. Nothing in the Lease shall be deemed to constitute Landlord’s consent or request, express or implied, by inference or otherwise: (a) to any contractor, subcontractor, laborer, or material supplier for the performance of any labor or the furnishing of any materials for any improvement, alteration or repair of the Demised Premises; or (b) to subject the Demised Premises to any mechanic’s lien.

 

2.               Maintenance of Property.

 

A.             To the extent the Lease requires Tenant to maintain or repair any sidewalk, Tenant shall perform all obligations of Landlord (and shall indemnify Landlord in the manner provided in the Lease against any liability of Landlord arising) under New York City Administrative Code §2- 710 and -711.

 

B.              Tenant shall not clean any window in or about the Demised Premises (or require, permit, suffer, or allow any window to be cleaned) from the outside in violation of New York Labor Law §202.

 

3.               Landlord’s Remedies.

 

A.             Notwithstanding anything to the contrary in New York Real Property Actions and Proceedings Law (N.Y. RPAPL) §711(2) or any other applicable law or rule of procedure, Landlord’s acceptance of any partial payment on account of rent, even if such payment has been acknowledged or receipted for in writing, shall not be deemed to constitute Landlord’s “express consent in writing to permit Tenant to continue in possession” as referred to in N.Y. RPAPL §711(2) unless Landlord’s written acceptance expressly states that: “Landlord consents to Tenant’s remaining in possession notwithstanding nonpayment of rent.” Any such part payment shall merely constitute a payment on account and nothing more, and shall not limit any rights or remedies of Landlord.

 

B.              Tenant expressly waives and releases, for itself and for any person claiming by, through or under Tenant, any rights that Tenant or such person may have under New York civil practice law and rules §220 1 (or any other law or rule of procedure, including any provisions of the New York real property actions and proceedings law), in connection with any holdover proceedings or other action or proceeding regarding this Lease, Tenant’s rights as a tenant of the Building, or Tenant’s possession of the Demised Premises.

 

400

 

4.               Casualty. The provisions of Article 26 of this Lease on destruction shall be deemed an express agreement as to damage or destruction of the Demised Premises by fire or other casualty. New York Real Property Law §227 (and any similar or successor statute), providing for such a contingency in the absence of an express agreement, shall have no application.

 

5.               Redemption. Tenant specifically waives the right of redemption provided for in New York Real Property Actions and Proceedings Law §761, and any similar or successor statute.

 

6.               Landmarks. Tenant acknowledges and agrees that it shall not seek or support a landmark designation, unless such landmark designation is specifically sought by Landlord, pursuant to the New York City Administrative Code §25-322 for the Demised Premises or any part of the Building.

 

7.               Zoning Lot. Tenant acknowledges that Tenant has no rights to or interest in any development rights, “air rights,” rights to construct additional floor area, or comparable rights appurtenant to the Demised Premises. Tenant consents, without further consideration, to Landlord’s utilization or transfer of such rights in any manner. Tenant shall promptly execute and deliver any instruments that Landlord may reasonably request, including without limitation, instruments merging zoning lots, or waiving Tenant’s right to join in such instruments, to evidence such acknowledgment and consent. The provisions of this paragraph are and shall be deemed to be and shall be construed as Tenant’s express waiver and release of any interest Tenant may have as a “party in interest” (as defined under the definition of “Zoning Lot” in § 12-10 of the New York City Zoning Resolution or any similar or successor statute) in the Demised Premises.

 

401

 

EXHIBIT K

Confidentiality Agreement

 

(Attached)

 

402

 

CONFIDENTIALITY AGREEMENT

 

THIS CONFIDENTIALITY AGREEMENT (this “Agreement”) is entered into as of             , 2010 (the “Effective Date”) by and between [TENANT], a                            , having an address at                                                        (“Company”) and                            , a                            , having an address at                            (“Disclosee”).

 

In connection with Disclosee’s interest in obtaining information concerning the business of Company, Company is furnishing or has furnished Disclosee with certain written information concerning Company’s gross sales that is either non-public, confidential or proprietary in nature. This information furnished to Disclosee or its affiliates, agents, representatives or employees (“Representatives”), together with analyses, compilations, forecasts, studies or other documents prepared by Disclosee or its Representatives that contain or otherwise reflect such information is hereinafter referred to as the “Information.” In consideration of Company furnishing Disclosee with the Information, Disclosee agrees that:

 

1.             The Information is Company’s property and will be kept confidential and shall not, without Company’s prior written consent, be disclosed by Disclosee or Representatives in any manner whatsoever, in whole or in part, and shall not be used by Disclosee or its Representatives in any manner to compete with the business of Company. Moreover, Disclosee may reveal the Information only to its Representatives who need to know the Information, are informed by Disclosee of the confidential nature of the Information and who shall agree to act in accordance with the terms and conditions of this Agreement. Disclosee shall be responsible for any breach of this Agreement by its Representatives.

 

2.             The term Information shall not include such portions of the Information which (i) are or become generally available to the public other than as a result of a disclosure by Disclosee or its Representatives, or (ii) become available to Disclosee on a non-confidential basis from a source (other than Company or its Representatives) that is not prohibited from disclosing such Information to Disclosee by a legal, contractual or fiduciary obligation to Company; or (iii) must be disclosed in order to comply with any applicable law, order, regulation or ruling; (iv) is already known to Disclosee or its Representatives or is already in its or their possession prior to disclosure by Company hereunder, or (v) is independently developed by Disclosee or its Representatives without reference to the Information.

 

3.             In the event that Disclosee or anyone to whom Disclosee transmits the Information pursuant to this Agreement becomes legally compelled to disclose any of the Information, Disclosee will provide Company with prompt notice so that Company may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Agreement. In the event that such protective order or other remedy is not obtained, or that Company waives compliance with the provisions of this Agreement, Disclosee will furnish only that portion of the Information that Disclosee is legally required and will exercise its best efforts to obtain reliable assurance that confidential treatment will be accorded the Information.

 

4.             Disclosee acknowledges that remedies at law may be inadequate or protect against breach of this Agreement, and Disclosee hereby in advance agrees that Company may seek injunctive relief without proof of actual damages. This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey, without regard to conflict of law principles. The exclusive jurisdiction for any disputes concerning this Agreement shall be the Superior Court of New Jersey,

 

403

 

Bergen County, and the parties hereby submit to such jurisdiction and waive all defenses relating to jurisdiction, venue and forum non convenience.

 

5.             Disclosee hereby defends, indemnifies and holds harmless Company and its Representatives and their respective successors and assigns against and from any loss, liability or expense, including attorney’s fees, arising out of any uncured breach by Disclosee or by its Representatives of any of the terms of this Agreement

 

6.             This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and all of which shall constitute the same Agreement. A facsimile, email, pdf or electronic signature shall be deemed an original signature.

 

[SIGNATURE PAGE FOLLOWS]

 

404

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date.

 

 

	
 
    	
COMPANY:   
    
	
 
    	
 
    
	
 
    	
[TENANT], a
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DISCLOSEE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
                                             ,   a
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

405

 

EXHIBIT B-6

 

LEASE FORM FOR WILMINGTON, DE

 

406

 

KEY NO:

 

LEASE

 

 

BY AND BETWEEN

 

 

WE APP WILMINGTON LLC,
 LANDLORD

 

AND

 

 

PATHMARK STORES, INC.,
 TENANT

 

 

DEMISED PREMISES

 

 

AT

 

 

3901 LANCASTER PIKE, WILMINGTON, DELAWARE

 

407

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
1.
    	
EXHIBITS
    	
1
    
	
 
    	
 
    	
 
    
	
2.
    	
DEMISED   PREMISES
    	
1
    
	
 
    	
 
    	
 
    
	
3.
    	
TERM
    	
2
    
	
 
    	
 
    	
 
    
	
4.
    	
RENEWAL   PERIODS
    	
2
    
	
 
    	
 
    	
 
    
	
5.
    	
RENT
    	
3
    
	
 
    	
 
    	
 
    
	
6.
    	
USE   AND OCCUPANCY
    	
5
    
	
 
    	
 
    	
 
    
	
7.
    	
TAXES
    	
7
    
	
 
    	
 
    	
 
    
	
8.
    	
SIGNAGE
    	
8
    
	
 
    	
 
    	
 
    
	
9.
    	
TRUE   LEASE
    	
9
    
	
 
    	
 
    	
 
    
	
10.
    	
REPAIRS
    	
9
    
	
 
    	
 
    	
 
    
	
11.
    	
INSURANCE
    	
9
    
	
 
    	
 
    	
 
    
	
12.
    	
REQUIREMENTS   OF LAW AND FIRE INSURANCE
    	
10
    
	
 
    	
 
    	
 
    
	
13.
    	
ALTERATIONS
    	
11
    
	
 
    	
 
    	
 
    
	
14.
    	
ACCESS   TO DEMISED PREMISES
    	
11
    
	
 
    	
 
    	
 
    
	
15.
    	
UTILITIES
    	
11
    
	
 
    	
 
    	
 
    
	
16.
    	
SUBORDINATION,   NON DISTURBANCE AND ATTORNMENT
    	
11
    
	
 
    	
 
    	
 
    
	
17.
    	
TRADE   FIXTURES
    	
12
    
	
 
    	
 
    	
 
    
	
18.
    	
ASSIGNMENT
    	
13
    
	
 
    	
 
    	
 
    
	
19.
    	
TITLE   AND AUTHORITY
    	
14
    
	
 
    	
 
    	
 
    
	
20.
    	
QUIET   ENJOYMENT
    	
15
    
	
 
    	
 
    	
 
    
	
21.
    	
UNAVOIDABLE   DELAYS
    	
15
    
	
 
    	
 
    	
 
    
	
22.
    	
END   OF TERM
    	
15
    
	
 
    	
 
    	
 
    
	
23.
    	
LANDLORD’S   DEFAULT
    	
16
    
	
 
    	
 
    	
 
    
	
24.
    	
ADDITIONAL   CHARGES
    	
16
    
	
 
    	
 
    	
 
    
	
25.
    	
TENANT’S   DEFAULT
    	
17
    
	
 
    	
 
    	
 
    
	
26.
    	
DESTRUCTION
    	
19
    
	
 
    	
 
    	
 
    
	
27.
    	
EMINENT   DOMAIN
    	
20
    
	
 
    	
 
    	
 
    
	
28.
    	
THIRD   PARTY LITIGATION
    	
21
    
	
 
    	
 
    	
 
    
	
29.
    	
WAIVER   OF DISTRAINT
    	
21
    
	
 
    	
 
    	
 
    
	
30.
    	
ESTOPPEL   CERTIFICATES
    	
21
    
	
 
    	
 
    	
 
    
	
31.
    	
NOTICES
    	
21
    

 

408

 

TABLE OF CONTENTS

(continued)

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
32.
    	
BROKER
    	
22
    
	
 
    	
 
    	
 
    
	
33.
    	
LIENS
    	
22
    
	
 
    	
 
    	
 
    
	
34.
    	
DEFINITION   OF LANDLORD
    	
22
    
	
 
    	
 
    	
 
    
	
35.
    	
ADJOINING   OR ADJACENT PROPERTY
    	
22
    
	
 
    	
 
    	
 
    
	
36.
    	
ENVIRONMENTAL   LAWS
    	
23
    
	
 
    	
 
    	
 
    
	
37.
    	
LEASEHOLD   MORTGAGE
    	
24
    
	
 
    	
 
    	
 
    
	
38.
    	
INDEMNITY
    	
26
    
	
 
    	
 
    	
 
    
	
39.
    	
LIMITATION   OF LANDLORD’S LIABILITY
    	
26
    
	
 
    	
 
    	
 
    
	
40.
    	
BOOKS   AND RECORDS
    	
27
    
	
 
    	
 
    	
 
    
	
41.
    	
SATELLITE   DISH
    	
27
    
	
 
    	
 
    	
 
    
	
42.
    	
NO   PRESUMPTION AGAINST DRAFTER
    	
27
    
	
 
    	
 
    	
 
    
	
43.
    	
SUCCESSORS   AND ASSIGNS; AFFILIATES
    	
27
    
	
 
    	
 
    	
 
    
	
44.
    	
CAPTIONS
    	
27
    
	
 
    	
 
    	
 
    
	
45.
    	
INVALIDITY   OF CERTAIN PROVISIONS
    	
27
    
	
 
    	
 
    	
 
    
	
46.
    	
CHOICE   OF LAW/JURISDICTION
    	
28
    
	
 
    	
 
    	
 
    
	
47.
    	
NO   WAIVER
    	
28
    
	
 
    	
 
    	
 
    
	
48.
    	
ATTORNEY’S   FEES
    	
28
    
	
 
    	
 
    	
 
    
	
49.
    	
WAIVER   OF TRIAL BY JURY
    	
28
    
	
 
    	
 
    	
 
    
	
50.
    	
MISCELLANEOUS
    	
28
    
	
 
    	
 
    	
 
    
	
51.
    	
COUNTERPARTS
    	
29
    
	
 
    	
 
    	
 
    
	
52.
    	
INCORPORATION   OF STATE LAW PROVISIONS
    	
29
    

 

409

 

LEASE

 

THIS LEASE (this “Lease”), made as of November           2010 (the “Effective Date”), by and between WE APP WILMINGTON LLC, a Delaware limited liability company with an office c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 Attn: Adam Winstanley (hereinafter called “Landlord”), and PATHMARK STORES, INC., a Delaware corporation, having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”). This Lease is guaranteed by The Great Atlantic & Pacific Tea Company, Inc., a Maryland corporation (“Guarantor”) pursuant to a guaranty of even date herewith (as the same may be amended, supplemented or modified from time to time, the “Guaranty”).

 

WITNESSETH:

 

Landlord and Tenant covenant and agree as follows:

 

1.           EXHIBITS. The following Exhibits are annexed hereto and made a part hereof:

 

A.             Exhibit A, Site Plan of the Demised Premises;

 

B.              Exhibit B1, Legal Description of the Land;

 

C.              Exhibit B2, Existing Encumbrances on Land

 

D.              Exhibit C, Remedial Work

 

E.              Exhibit D, Form of Subordination, Non-Disturbance and Attornment Agreement;

 

F.              Exhibit E, Memorandum of Lease;

 

G.              Exhibit F, Form of Guaranty;

 

H.              Exhibit G, Insurance Requirements;

 

I.               Exhibit H, Percentage Rent;

 

J.               Exhibit I, Local Law Addendum; and

 

K.              Exhibit J, Confidentiality Agreement.

 

2.           DEMISED PREMISES.

 

A. Landlord hereby leases to Tenant and Tenant hereby takes from Landlord that certain parcel of land (hereinafter called “Land”) commonly known as 3901 Lancaster Pike Wilmington, Delaware and more particularly described on Exhibit B1 and the buildings and other improvements now or hereafter erected on the Land together with the benefit of and subject to any and all easements, appurtenances, rights and privileges and other matters of record now or hereafter arising including those described in Exhibit B2. The land is currently improved by an

 

410

 

existing building consisting of approximately 48,622 square feet of space (the “Building”), as more particularly shown on the Site Plan attached hereto as Exhibit A. The Building and any other buildings and improvements now or hereafter erected on the Land shall be hereinafter called “Improvements.” The Land and any Improvements are hereinafter collectively called the “Demised Premises.”

 

B. Tenant or its Affiliates owned or leased the Demised Premises prior to their being purchased by Landlord. Landlord shall have no obligation or risk whatsoever with respect to the condition of the Demised Premises, Tenant taking the Demised Premises “AS IS, WHERE IS, WITH ALL FAULTS”. Tenant acknowledges that it has had full opportunity to inspect the Demised Premises with engineering and other consultants of its choice. Tenant’s commencing possession under this Lease shall be deemed an acknowledgment that the condition of the Demised Premises is satisfactory. Tenant further acknowledges that neither Landlord nor any person acting under Landlord has made or implied any representations or warranties whatsoever concerning the Demised Premises, their condition or this Lease except as set forth in Section 19.

 

3.           TERM.

 

A.             The term of this Lease (“Term”) shall commence (the “Commencement Date”) on the Effective Date and shall continue to and include the date (the “Expiration Date”) that is twenty (20) years after the day before the Commencement Date if the Commencement Date is the first day of a month, or twenty (20) years after the last day of the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month.

 

B.              The term “Lease Year” shall mean the following: the first Lease Year shall be the 12 month period commencing on the Commencement Date if the Commencement Date is the first day of a month, or on the first day of the month immediately following the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month; and each succeeding 12 month period thereafter shall be a Lease Year.

 

4. RENEWAL PERIODS. Tenant shall have the right and option to extend the Term of this Lease from the date upon which it would otherwise expire for ten (10) separate consecutive renewal periods of five (5) years each (each such period being hereinafter called a “Renewal Period”) upon the same terms and conditions as are herein set forth except the rent for such Renewal Period shall be as provided in Section 5 below; provided, however, that at the time of so electing to extend and also at the time any Renewal Period commences Tenant is not in default beyond any applicable notice and cure period, and this Lease is then in full force and effect. If Tenant fails timely so to exercise its option for any Renewal Period, time being of the essence, Tenant shall have no further extension rights hereunder. All references to the Term shall mean the Initial Term as it may be extended by any Renewal Period. If Tenant elects to exercise any one or more of said options to renew, it shall do so by giving written notice (“Renewal Notice”) of such election to Landlord at any time during the term of this Lease (including any Renewal Periods) on or before the date which is three hundred sixty five (365) days before the beginning of the Renewal Period or Renewal Periods for which the term hereof is to be renewed by the exercise of such option or options. If Tenant elects to exercise any one or more of said options to renew by serving a Renewal Notice in accordance with the foregoing, the

 

411

 

Term of this Lease shall be automatically extended for the Renewal Period(s) covered by the Renewal Notice without execution of an extension or renewal lease. If Tenant shall not have given notice of such election to Landlord by such date in respect of any Renewal Period, Landlord shall (unless notice shall have been given as hereinafter specifically permitted) give notice to Tenant that Tenant has failed to give notice of such election to Landlord (hereinafter called the “Option Notice”). Tenant’s time to give notice of such election shall continue until the date which is sixty (60) days after receipt of the Option Notice. Landlord shall not give the Option Notice prior to the date which is four hundred twenty-five (425) days before the Expiration Date. If Landlord shall not have given the Option Notice prior to the date which is four hundred twenty-five (425) days before the beginning of the next succeeding Renewal Period, the term of this Lease shall be extended beyond the Expiration Date to the date which is four hundred twenty-five (425) days after the date on which the Option Notice is given by Landlord.

 

5.               RENT.

 

A. Beginning on the Commencement Date and continuing throughout the Term, Tenant covenants and agrees to pay Landlord for the Demised Premises, without previous demand therefor, fixed annual rent (“Fixed Annual Rent”) as follows:

 

	
Lease Year
    	
 
    	
Fixed Annual Rent
    	
 
    	
Fixed Monthly Rent
    	
 
    
	
1-5
    	
 
    	
$
    	
777,952.00
    	
 
    	
$
    	
64,829.33
    	
 
    
	
6-10
    	
 
    	
$
    	
816,849.60
    	
 
    	
$
    	
68,070.80
    	
 
    
	
11-15
    	
 
    	
$
    	
857,692.08
    	
 
    	
$
    	
71,474.34
    	
 
    
	
16-20
    	
 
    	
$
    	
900,576.68
    	
 
    	
$
    	
75,048.06
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
First Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
21-25
    	
 
    	
$
    	
945,605.52
    	
 
    	
$
    	
78,800.46
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Second Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
26-30
    	
 
    	
$
    	
992,885.79
    	
 
    	
$
    	
82,740.48
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Third Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
31-35
    	
 
    	
$
    	
1,042,530.08
    	
 
    	
$
    	
86,877.51
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fourth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
36-40
    	
 
    	
$
    	
1,094,656.59
    	
 
    	
$
    	
91,221.38
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Fifth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
41-45
    	
 
    	
$
    	
1,149,389.42
    	
 
    	
$
    	
95,782.45
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Sixth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
46-50
    	
 
    	
$
    	
1,206,858.89
    	
 
    	
$
    	
100,571.57
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Seventh Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
51-55
    	
 
    	
$
    	
1,267,201.83
    	
 
    	
$
    	
105,600.15
    	
 
    

 

412

 

	
Eighth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
56-60
    	
 
    	
$
    	
1,330,561.92
    	
 
    	
$
    	
110,880.16
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ninth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
61-65
    	
 
    	
$
    	
1,397,090.02
    	
 
    	
$
    	
116,424.17
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Tenth Renewal Period
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
66-70
    	
 
    	
$
    	
1,466,944.52
    	
 
    	
$
    	
122,245.38
    	
 
    

 

B.              All Fixed Annual Rent shall be payable by Tenant in equal monthly installments in advance on the first day of every calendar month during the Term of this Lease (and any Renewal Periods), and shall be payable at the office of the Landlord first above set forth or at such other address as Landlord shall have given in a notice to Tenant) in current U.S. currency by check drawn on a clearinghouse bank and payable directly to Landlord (or, if requested by Landlord from time to time by electronic fund transfer, to an account designated by Landlord). Rent for a part of a month shall be prorated on a daily basis and paid on the Commencement Date. Further, the rent for the first full month shall be paid on the Commencement Date.

 

C.              Beginning on the Commencement Date and continuing throughout the Term, Tenant covenants and agrees to pay, without previous demand therefor, all sums other than Fixed Annual Rent due under or required to be paid by this Lease (all of the foregoing being “Additional Rent” regardless of however defined or described in this Lease).

 

D. It is the intention of the parties hereto that the Fixed Annual Rent payable hereunder shall be net to Landlord free of cost, charge, offset, diminution or other deduction, so that this Lease shall yield to Landlord the net Fixed Annual Rent specified herein during the Term of this Lease. Notwithstanding applicable law to the contrary and with the sole exception of those costs, expenses and obligations expressly stated in this Lease to be the sole responsibility of Landlord (or the responsibility of third parties as provided in Section 36C), all costs, expenses and obligations of every kind and nature whatsoever relating to this Lease, the Demised Premises or imposed on Landlord under applicable law either now existing or hereafter enacted and whether or not within the contemplation of the parties on account of this Lease, the Demised Premises or Landlord’s interest in the Demised Premises are assumed and shall be paid by Tenant when and as due as Additional Rent. Without limiting the generality of the foregoing, Tenant shall at its sole expense (which expense shall be deemed Additional Rent hereunder) be responsible for payment of all Taxes, all electricity, telecommunication service, gas, water, sewer, telephone, refuse disposal, and other charges for utilities and services supplied to the Demised Premises, insurance costs, amounts due under any title encumbrance matter described in Exhibit B2, and all costs of cleaning, maintaining, repairing and replacing the Demised Premises or any portion thereof and of complying with all laws now existing or hereafter enacted including all Environmental Laws (defined below). Any cost, expense or obligation directly relating to the Demised Premises that is not expressly declared in this Lease to be that of Landlord shall be deemed to be an obligation of Tenant to be performed by Tenant at Tenant’s sole expense, and to the greatest extent permitted by law Tenant shall indemnify and defend Landlord against, and hold Landlord harmless from, the same, and Tenant’s liability for the payment and performance of such amounts and obligations that shall arise during the Term is

 

413

 

hereby expressly provided to survive the expiration of the Term or early termination of this Lease. Fixed Annual Rent, Additional Rent, and all other sums payable hereunder by Tenant, shall be paid without notice or demand, and without set off, counterclaim, recoupment, abatement, suspension, deduction, or defense (other than payment) whatsoever. Except as otherwise expressly set forth in this Lease with respect to certain events of casualty in Section 26 or condemnation in Section 27, Tenant shall in no event have any right to terminate this Lease, and any right so to terminate (or to abate, suspend, set off or otherwise deduct from Fixed Annual Rent or Additional Rent) under applicable law is hereby waived to the greatest extent permitted by law. It is the intention of the parties that the obligations of Tenant hereunder shall be separate and independent covenants and shall not be discharged or otherwise affected by any law or regulation now or hereafter applicable to the Demised Premises or any other restriction on Tenant’s use, and that Fixed Annual Rent, Additional Rent, and all other sums payable by Tenant hereunder shall continue to be payable in all events, and that the obligations of Tenant hereunder shall continue unaffected throughout the Term. Landlord, at its sole cost and expense, shall be responsible for the following: (i) payment of any amounts relating to Fee Mortgages or other encumbrances or liens created by Landlord, (ii) management fees, administrative costs, professional fees and any other costs incidental to its fee ownership of the Demised Premises; and (iii) and cost, expense, or liability resulting from the negligent or willful misconduct of Landlord, its employees or agents. For the avoidance of doubt, Tenant shall be responsible for all costs, expenses and obligations of Landlord in that certain Lease (as amended or otherwise modified from time to time, the “Ground Lease”) dated as of September 8, 1997 by and between Commonwealth Trust Co. and 909 Group, L.P., as amended by that certain Amendment of Lease dated February 28, 1979, as further amended by that certain Amendment of Lease dated December 11, 1979, as further affected by that certain Assignment of Lease dated November 29, 1994, as further affected by that certain Assignment of Lease dated June 11, 1980, as further affected by that certain Renewal Notice dated March 3, 1997, as further affected by that certain Renewal Notice dated January 31, 2002, as further affected by that certain Notice dated August 9, 2007, as further affected by that certain Notice dated February 6, 2009.

 

E. If any person (other than an Affiliate of the initial Guarantor (being The Great Atlantic & Pacific Tea Company, Inc.) or a successor by merger of acquisition) becomes an assignee of this Lease or sublets all or substantially all of the Demised Premises or otherwise becomes or is a Tenant under this Lease, such occurrence shall be a Percentage Rent Event and the provisions of Exhibit H shall immediately become applicable for the remainder of the Term.

 

6.               USE AND OCCUPANCY.

 

A. The Demised Premises may be used and occupied for the operation of a supermarket, drugstore, automated teller machine, bank, all other uses customary and incidental to a supermarket and, so long as the Minimum Credit Test (defined in Section 25D) is then met, all other lawful purpose or purposes. Notwithstanding anything to the contrary contained in this Lease, Tenant shall not be obligated to open, to conduct or to remain open for the conduct of any business in the Demised Premises but shall nevertheless pay Fixed Annual Rent and all Additional Rent when and as the same is due. At all times Tenant shall comply with all laws, ordinances and bylaws, regulations, codes, (including, without limitation, the Americans With Disabilities Act of 1990, or “ADA”) permits, orders and conditions of any special permits or other governmental approvals (“law” or “laws”) applicable from time to time to the Demised

 

414

 

Premises or Tenant or both, foreseen or unforeseen, and whether or not the same interfere with Tenant’s occupancy. Tenant shall procure all approvals, licenses and permits, in each case promptly giving Landlord true and complete copies of the same and all applications therefor. Tenant shall never overload any of the Building systems, including the floors and mechanical, electrical and structural systems, and shall also keep the Demised Premises equipped with appropriate safety appliances and comply with all requirements of insurance and of insurance inspection or rating bureaus. Tenant shall not itself, nor shall Tenant permit or suffer persons acting under Tenant to, either with or without negligence, injure, overload, deface, damage or otherwise harm the Demised Premises or any part thereof or use the Demised Premises contrary to any law or in a manner likely to create any nuisance. It is intended that Tenant bear the sole risk of all present or future laws affecting the Demised Premises, and Landlord shall not suffer any reduction in any rent on account of the enforcement of laws.

 

B.              Subject to Landlord’s consent, not to be unreasonably withheld, delayed or conditioned, Tenant shall have the right to enter into agreements with utility companies creating easements in favor of the utility companies as are required in order to service the Demised Premises. Also subject to Landlord’s consent, not to be unreasonably withheld, delayed or conditioned, Tenant may enter into reciprocal parking agreements and easements for ingress and egress as are required in order to service the Demised Premises and any adjoining or adjacent land designated by Tenant. Landlord covenants and agrees to execute any and all documents, instruments or certificates reasonably required in connection with such matters to which it has given its consent, and to take all other action, in order to effectuate the same, all at Tenant’s cost and expense. In no event, however, shall Landlord be required to consent to nor shall Tenant have the power to enter into any easement or reciprocal parking agreement (i) that is for a term in excess of the term of this Lease (as the same may be renewed or extended) except for utility and access easements that may be perpetual or otherwise extend beyond the term of this lease, or (ii) that diminishes the economic value of the Land. Landlord further covenants and agrees, upon request of tenant, to convey without compensation therefor, insubstantial perimeter portions of the Land for highway or roadway purposes, to the state in which the demised premises are situate or any other municipal or governmental body, provided, however, that any such conveyance shall not constitute a taking (as defined in section 28 below) nor constitute grounds for tenant to terminate this Lease. Notwithstanding anything to the contrary or otherwise set forth herein, any encumbrance on the Demised Premises shall be subject to any requirements imposed by any Fee Mortgage (provided that Landlord shall reasonably cooperate with Tenant, at no out of pocket cost to Landlord, in connection with obtaining any requisite consent from any Fee Mortgagee as defined below).

 

C.              The provisions of this paragraph shall only apply if and only if the Minimum Credit Test is not met. If Tenant either gives Landlord written notice of Tenant’s intention to discontinue permanently the operation of its business in the Demised Premises or any part of the Demised Premises or discontinues the operation of its business in the Demised Premises or any part of the Demised Premises for a period of one (1) year for any reason (other than Destruction or Taking that pursuant to the applicable provisions of this Lease entitles Tenant to terminate this Lease), then Landlord may terminate this Lease as to the Demised Premises, or if applicable, the part of the Demised Premises with respect to which Tenant has given notice of its intention to discontinue, or in which Tenant has discontinued, its operations, by thirty (30) days’ written notice to Tenant of Landlord’s election to terminate this Lease (or, if

 

415

 

applicable, Landlord’s election to terminate this Lease as to the part of the Demised Premises with respect to which Tenant has given notice of its intention to discontinue, or in which Tenant has discontinued, its operations). Tenant may override Landlord’s election only once by, as applicable, resuming operations of its business in the Demised Premises within twenty-five (25) days after receipt of Landlord’s notice or by rescinding its notice of its intention to discontinue its business in writing to Landlord delivered within twenty-five (25) days after receipt of Landlord’s notice.

 

7.               TAXES.

 

A.             Tenant shall, during the term of this Lease, as Additional Rent, pay and discharge punctually, as and when the same shall become due and payable, all taxes, special and general assessments, water rents, rates and charges, sewer rents and other governmental impositions and charges of every kind and nature whatsoever, extraordinary as well as ordinary, including rent and/or occupancy taxes (hereinafter collectively referred to as “Taxes”), and each and every installment thereof that shall or may during the term of this Lease, become due and payable, or liens upon the Demised Premises or any part thereof, together with all interest and penalties thereon, under or by virtue of all present or future laws, ordinances, requirements, orders, directives, rules or regulations of the Federal, State, County, Town and City Governments and of all other governmental authorities whatsoever (all of which shall also be included in the term “Taxes” as heretofore defined).

 

B.              To the extent permitted by law, Tenant or its designees shall have the right to apply for the conversion of any assessment for local improvements assessed during the term of this Lease in order to cause the same to be payable in annual installments. Landlord agrees to permit the application for the foregoing conversion to be filed in Landlord’s name, if necessary, and shall execute any and all documents, instruments or certificates reasonably requested by Tenant to accomplish the foregoing.

 

C.              Tenant shall be deemed to have complied with the covenants of this Lease if payment of Taxes shall have been made either within any period allowed by law or by the applicable governmental authority during which payment is permitted without penalty so long as the Taxes shall never become subject to a tax sale on the Demised Premises or subject Landlord to any civil or criminal liability. Tenant shall produce and exhibit to Landlord satisfactory evidence of payment prior to the expiration of any such period.

 

D.              All Taxes shall be apportioned pro rata between Landlord and Tenant in accordance with the respective portions of such year during which the Term shall be in effect. Notwithstanding anything to the contrary contained herein, if the Term hereof terminates prior to the date which would have been the expiration thereof but for the earlier termination, then Tenant shall pay those Taxes which would have been paid by Tenant to and including the term expiration date and this obligation shall expressly survive such termination.

 

E. So long as the requirements of Paragraph C of this Section are complied with, Tenant or its designees shall have the right to contest or review all Taxes by legal proceedings, or in such other manner as it may deem suitable. Tenant or its designees shall inform Landlord of any such proceedings and conduct such proceedings promptly at its own cost

 

416

 

and expense, and free of any expenses to Landlord, and if necessary, in the name of and with the cooperation of Landlord (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant). Landlord shall execute all documents, instruments or certificates reasonably necessary and correct to accomplish the foregoing. Notwithstanding anything to the contrary or otherwise set forth herein, any such contest shall be subject to compliance with all applicable provisions of any Fee Mortgage (provided that Landlord shall reasonably cooperate with Tenant, at no material out of pocket cost to Landlord, in connection with such compliance).

 

F.              Landlord covenants and agrees that any refunds or rebates on account of Taxes paid by Tenant pursuant to the provisions of this Lease shall belong to Tenant. Any refunds received by Landlord shall be deemed trust funds and as such are to be received by Landlord in trust and paid to Tenant forthwith. Landlord will, upon the request of Tenant, sign any receipts that may be necessary to secure the payment of any such refund or rebate, directly to Tenant and/or will pay over to Tenant such refund or rebate as received by Landlord. Landlord further covenants and agrees on request of Tenant at any time, and from time to time, but without cost to Landlord, to make application individually (if legally required) or to join in Tenant’s application (if legally required) for separate tax assessments for such portions of the Demised Premises as Tenant shall at any time, and from time to time, reasonably designate. Landlord hereby agrees, upon request of Tenant, to execute all documents, instruments or certificates as shall reasonably be required by Tenant (so long as the same impose no material obligations on Landlord or expose Landlord to any liability).

 

G.              Nothing herein or in this Lease otherwise contained shall require or be construed to require Tenant to pay any inheritance, estate, succession, transfer, gift, franchise, income or profit taxes, that are or may be imposed upon Landlord, its successors or assigns, whether arising out of Landlord’s ownership of the Demised Premises, this Lease or otherwise; provided, however, that if at any time hereafter there is levied any tax on Landlord in lieu of real estate taxes based solely upon the ownership of real property, by property owners, in general, within the tax jurisdiction within which the Demised Premises are located, then such tax shall be considered to be an item of Taxes but for purposes of computing the amount of such tax payable by Tenant, the Demised Premises shall be deemed to be the sole real property owned by Landlord.

 

H. In the event that any fee mortgagee (“Fee Mortgagee”) requires the escrow of Real Estate Taxes or insurance premiums, Tenant shall pay to such Fee Mortgagee in escrow, on the first day of each and every month during the term of this Lease, one twelfth (1/12) of all estimated charges for the ensuing twelve (12) month period as reasonably estimated by the Fee Mortgagee based on current bills for same. Tenant shall deposit at least ten (10) days prior to the first date on which any interest or penalty will accrue such additional amounts as may be necessary so that there shall at all times be sufficient funds in escrow to pay such charges.

 

8. SIGNAGE. Tenant and any assignee or subtenant of Tenant shall have the right to install, maintain and replace in, on or in front of any Improvement or location on the Demised Premises or in any part thereof such signs and advertising matter as Tenant, and with Tenant’s consent, any such assignee or subtenant of Tenant may desire, provided that Tenant shall comply with any applicable requirements of governmental authorities having jurisdiction and shall obtain

 

417

 

any necessary permits for such purposes. As used in this Section, the word “sign” shall be construed to include any placard, pylon, logo, light or other advertising symbol or object, irrespective or whether same be temporary or permanent. All signs shall be Tenant’s personal property and shall be maintained and removed by Tenant upon termination of this Lease at Tenant’s sole expense.

 

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

 

10.            REPAIRS. Tenant shall, at all times during the Term of this Lease, and at its own cost and expense, keep and maintain or cause to be kept and maintained in repair and good condition the Building and improvements at any time erected on the Demised Premises. Without limitation, Tenant shall perform the Remedial Work described in Exhibit C. Landlord shall not be required to furnish services or facilities or to make any improvements, repairs, replacements or alterations in or to the Demised Premises whatsoever during the Term of this Lease. Without limiting the generality of the foregoing, Tenant shall be responsible for the entire Demised Premises and shall manage, maintain, repair, replace, clean, secure, protect, defend and keep in compliance with all governmental requirements, now existing or hereafter enacted, the Demised Premises and all improvements and appurtenances and all utilities, facilities, installations and equipment used in connection therewith, including all walls, all floor coverings, glass, windows, doors, partitions, exterior and interior lighting, signage, elevators, electrical, plumbing, heating, ventilating, fire protection and life safety, security and other building systems, water and sewage systems and other fixtures or equipment serving the Demised Premises, keeping the Demised Premises and all improvements and appurtenances in at least as good condition as on the Commencement Date. Without limitation, Tenant shall provide all cleaning, painting, janitorial services, rubbish disposal, periodic exterior waterproofing treatments to the Building, window caulking, maintenance of all gas, water, electric and other utility lines from public ways to the Demised Premises, and shall repair, maintain and replace all landscaping, roads, parking areas, and walkways appurtenant to the Demised Premises, and shall provide all snowplowing services thereto. Tenant shall provide a copy of all current vendor contracts, if any, relating to the foregoing to Landlord at least annually and from time to time otherwise upon Landlord’s request.

 

11.             INSURANCE.

 

A.             Tenant shall maintain at its own cost and expense insurance policies insuring against loss by fire, lightning, the perils of extended coverage and malicious mischief covering the Demised Premises and the other Improvements in the Demised Premises and other perils as more fully described in Exhibit G.

 

B.              So long as Tenant performs its obligations in Paragraph A of this Section, Landlord hereby waives all rights of recovery against Tenant and any other occupant(s) of the Demised Premises and any of their agents and employees for damage or destruction to any and all of the Improvements, including without limitation, the Building, arising out of fire or other casualty whether or not caused by acts or negligence of the aforementioned persons. Tenant

 

418

 

hereby waives all rights of recovery against Landlord, its agents and employees for damage or destruction to any and all of the Improvements, including without limitation, the Building and to Tenant’s trade fixtures, equipment and inventory arising out of fire or other casualty whether or not caused by the acts or negligence of Landlord, its agents or employees.

 

C.              Tenant shall maintain at its own cost and expense public liability and other insurance in accordance with the requirements of Exhibit G.

 

D.              Any insurance required to be provided by Tenant pursuant to this Lease may be provided by blanket insurance covering the Demised Premises and other locations of Tenant, provided such blanket insurance complies with all of the other requirements of this Lease with respect to the type of insurance covered by blanket policies. If Tenant elects to insure the Demised Premises under any blanket insurance policy, Tenant shall furnish to Landlord a certificate of insurance showing the Demised Premises as a location insured under any such blanket insurance policy to the extent of the limits required in Exhibit G. Tenant shall furnish to Landlord and any Fee Mortgagee as to which Tenant has received a notice containing such mortgagee’s name and address a duplicate original copy or certificate of the policies of insurance required to be carried by Tenant.

 

E.              Notwithstanding anything to the contrary contained herein, Tenant may carry any required insurance on trade fixtures and equipment described in Section 17 under a program of self-insurance or to carry insurance with deductibles in excess of part or all of the amounts of insurance required under Exhibit G hereunder.

 

F.              If Tenant fails to perform any covenant in this Section and such failure continues for more than three (3) days after written notice, then, without limiting any of Landlord’s other rights and notwithstanding any other provision of this Lease concerning notice and cure of defaults, Landlord may but need not obtain such insurance, and Tenant shall pay the cost thereof upon demand as Additional Rent.

 

12.            REQUIREMENTS OF LAW AND FIRE INSURANCE. Tenant shall comply with and shall from time to time conform the Demised Premises to every applicable requirement of law, duly constituted authority, Board of Fire Underwriters having jurisdiction or of the carriers of all insurance on the Demised Premises (all of the foregoing being hereinafter called “Legal Requirements”). Tenant shall have the right upon giving notice to Landlord to contest any obligations imposed upon Tenant pursuant to the provisions of this Section and to defer compliance during the pendency of such contest, if the failure of Tenant to so comply will not subject Landlord to civil or criminal penalty or liability. Landlord shall cooperate with Tenant in such contest (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and shall execute any documents reasonably required in furtherance of such purpose. Tenant shall not apply for any change in zoning applicable to the Land or the Demised Premises without Landlord’s prior written consent, not to be unreasonably withheld, conditioned or delayed.

 

13.            ALTERATIONS. Tenant may at its own expense from time to time, during the term hereof, make such alterations, additions, improvements and changes, structural or otherwise (hereinafter called “Alterations”), in and to the Demised Premises which it may deem necessary

 

419

 

or desirable, provided such Alterations shall not reduce the value of the Demised Premises. Tenant, in making any Alterations, shall use materials of equal or better quality than those used in the construction of the Demised Premises and comply with all Legal Requirements. Tenant shall obtain or cause to be obtained all building permits, licenses, temporary and permanent certificates of occupancy and other governmental approvals that may be required in connection with the making of Alterations. Landlord shall cooperate with Tenant in the obtaining thereof (so long as Landlord’s cooperation does not involve (a) incurring obligations or liability or material expense to Landlord unreimbursed by Tenant or (b) breach of any covenants binding on Landlord or the Demised Premises, including, without limitation, any mortgage) and shall execute any documents required in furtherance of such purpose. Tenant may, but shall not be obligated to, remove any Alteration so long as such removal does not materially and adversely affect any heating, ventilating, mechanical, electrical, structural, roof or life safety elements of the Building and Tenant shall repair all damage that results from such removal and restore the Demised Premises to a functional condition (including the filling of all floor and wall holes, the removal of all disconnected wiring back to junction boxes and the replacement of all damaged ceiling tiles). Upon completion of any Alteration that is not Cosmetic Work, Tenant shall promptly deliver to Landlord plans showing such Alteration as built. “Cosmetic Work” shall mean painting, carpeting and wall coverings and the like and the addition or deletion of interior non structural partitions, provided such work does not materially and adversely affect any roof, structural, mechanical, electrical, utility, fire protection or life safety systems or other systems or equipment of the Building.

 

14.            ACCESS TO DEMISED PREMISES. Tenant shall permit Landlord to enter upon the Demised Premises at all reasonable times approved by Tenant to examine the Demised Premises, and during the six (6) month period preceding the Expiration Date, to exhibit the Demised Premises to prospective tenants, provided that Landlord shall not unreasonably interfere with the conduct of business therein.

 

15.            UTILITIES.

 

A.             Tenant shall arrange and pay for any and all utility services to the Demised Premises, including, without limitation, telecommunications, water, gas, electricity and fuel used by it in the Demised Premises. Tenant shall pay all sewer charges assessed by the municipal authority having jurisdiction. The failure or interruption of any utility services shall be at Tenant’s sole risk and Landlord shall not suffer any reduction in any rent on account thereof.

 

B.              Tenant shall have the sole right to apply for, claim and receive any rebate, reimbursement, credit, or payment from any utility company providing service to the Building resulting from Tenant’s installation of energy saving equipment in or on the Building.

 

16. SUBORDINATION, NON DISTURBANCE AND ATTORNMENT. This Lease shall become subject and subordinate to the lien of any Fee Mortgagee of the entire fee interest of the Demised Premises, and any renewals, modifications or extensions thereof, provided that a Subordination, Non Disturbance and Attornment Agreement (“SNDA”) substantially in the form annexed hereto as Exhibit D (or a reasonably equivalent form that is reasonably acceptable to Tenant and the applicable Fee Mortgagee) is executed, acknowledged

 

420

 

and delivered by such Fee Mortgagee to Tenant. If the Fee Mortgagee requires that this Lease have priority over such mortgage, Tenant shall, upon request of the Fee Mortgagee, execute, acknowledge and deliver to the Fee Mortgagee an agreement acknowledging such priority.

 

17. TRADE FIXTURES.

 

A.             All trade fixtures and equipment whether owned by Tenant or leased by Tenant from a Lessor/Owner (hereinafter called the “Equipment Lessor”) installed in the Demised Premises, regardless of the manner or mode of attachment, shall be and remain the property of Tenant or any such Equipment Lessor and may be removed by Tenant or any such Equipment Lessor at any time. In no event (including a default under this Lease) shall Landlord have any liens, rights or claims in Tenant’s or Equipment Lessor’s trade fixtures and equipment and Landlord agrees to execute and deliver to Tenant and Equipment Lessor, within ten (10) days after request therefor, any document reasonably required by Tenant or Equipment Lessor in order to evidence the foregoing, so long as the same is reasonably acceptable to Landlord and any Fee Mortgagee. Tenant shall promptly repair all damage to the Building caused by the removal of any such trade fixtures or equipment. Notwithstanding anything to the contrary in this Lease, the following shall not constitute trade fixtures or equipment for purposes of this Lease and neither Tenant nor any Equipment Lessor shall own or have any right to remove the same (and, without limiting the generality of the foregoing, the following shall not be subject to the provisions of this Paragraph A or Paragraph B of this Section 17): (i) the HVAC system, plumbing, alarm, electric, life safety and other building systems used to operate the Building or maintain the certificate of occupancy, and (ii) any “fixtures” as such term is defined in the applicable Uniform Commercial Code.

 

B.              In the event Tenant shall enter into any arrangement to finance all or any portion of its trade fixtures or equipment either before or after the installation thereof in the Demised Premises and whether such financing shall be in the form of a mortgage, financing agreement, equipment lease, equipment sale leaseback or otherwise and in the event the lessor or secured party thereunder shall provide written notice to Landlord that it requires a copy of any default sent by Landlord to Tenant under this Lease also to be sent to such person (hereinafter called the “Owner/Secured Party”), then Landlord upon receipt of such requirement shall simultaneously send a copy of any default notice to such Owner/Secured Party at the address furnished to Landlord; provided that Landlord’s failure to deliver any such copy to the Owner/Secured Party shall not affect Landlord’s exercise of any right or remedy under this Lease in any way whatsoever. The copy of any such default notice shall be sent to such Owner/Secured Party in the same manner as notices are required to be sent and in the same manner as such notice is being sent to Tenant hereunder. Landlord further agrees that any such Owner/Secured Party shall have the right, but not the obligation, to remedy or cure any default of Tenant under this Lease within the same period of time granted to Tenant to remedy or cure any such default under this Lease.

 

C. All trade fixtures and other personal property (which term shall include without limitation food and inventory) of any person that is located on the Demised Premises shall be at the sole risk of Tenant. Landlord shall not be liable for any loss or damage to person or property resulting from any accident, theft, vandalism or other occurrence on the Demised Premises, including damage resulting from water, wind, ice, steam, explosion, fire, smoke,

 

421

 

chemicals, the rising of water or leaking or bursting of pipes or sprinklers, defect, failure or any other cause.

 

18. ASSIGNMENT.

 

A.             Subject to paragraph (B) of this Section, Tenant may sublet all or any part of the Demised Premises, or license the use of any portion thereof or assign this Lease, but Tenant and Guarantor shall nevertheless continue to remain liable hereunder. Any assignee of the Lease and any sublessee or licensee of all or substantially all of the Demised Premises shall become jointly and severally liable to Landlord, and any such transferee shall upon Landlord’s request execute and deliver an instrument in confirmation thereof. In the case of any assignment of this Lease or any sublease or licensee of all or substantially all of the Demised Premises, Tenant shall promptly deliver to Landlord a true and complete copy of the transfer instruments. No transfer of all or any portion of the Demised Premises or Landlord’s consent thereto shall be deemed a waiver of the provisions of this Section, or a release of Tenant or any Guarantor.

 

B.              So long as the Minimum Credit Test is not met (however the following provisions of this paragraph B shall not apply at any time when the Minimum Credit Test is met), Tenant shall not assign this Lease or sublet or license all or substantially all of the Demised Premises to any transferee unless (x) such transferee (1) operates at least five (5) other grocery stores and (2) has Tangible Net Worth” (as defined in Section 25 below) of at least One Hundred Million Dollars ($100,000,000) or (y) if such transferee does not meet the requirements of (1) and (2) then such transferee must be approved by Landlord, such approval not to be unreasonably withheld, conditioned or delayed. If Tenant desires to so transfer this Lease to a person who does not meet the requirements of (1) and (2) in the preceding sentence, then Tenant shall give notice of such intended transfer to Landlord together with reasonable information on its grocery store business and its audited financial statements for the three most recent years showing the credit of the proposed transferee and the proposed terms of the transfer. Upon receiving such information Landlord shall have thirty (30) days to elect by written notice to Tenant to do one of the following (and any failure of Landlord to affirmatively elect one or the other shall be deemed to be an election by Landlord to consent to such transfer: (a) approve such transfer, (b) disapprove such transfer, or (c) terminate the Term of this Lease on any date which is no sooner than one-hundred twenty (120) days after such election notice and no later than one-hundred eighty (180) days after such election. If Landlord elects to terminate this Lease and thereafter within one-hundred twenty (120) days enters into a lease or other agreement with Tenant’s proposed transferee, any transfer payment that was to have been made to Tenant by such transferee as specifically disclosed in writing as such to Landlord in the proposed terms of the transfer furnished to Landlord as provided above shall be paid by Landlord to Tenant out of the first rent amounts received by Landlord from such transferee until the transfer payment is paid to Tenant in full. For purposes of the previous sentence, a “transfer payment” shall include proposed sublease income in excess of the rent under this Lease, and in such cases Landlord’s payment to Tenant shall be a liquidated amount equal to such excess rent at a discount rate of ten percent (10%).

 

C. If Tenant assigns this Lease, Landlord, when giving notice to said assignee with respect to any default, shall also give a copy of such notice upon Tenant originally named herein or its successor of whom Landlord shall have been given written notice (being herein

 

422

 

called “Original Tenant”), and no notice of default shall be effective as against a Tenant until a copy thereof is given to the Original Tenant. The Original Tenant shall have the same period after the giving of such notice to cure such default as is given to Tenant under this Lease. If this Lease terminates or this Lease and the Term hereof cease and expire because of a default of such assignee, Landlord shall promptly give the Original Tenant notice thereof. The Original Tenant shall have the option, to be exercised by notifying Landlord in writing within thirty (30) days after receipt by the Original Tenant of Landlord’s notice, to cure any default and become Tenant under a new lease for the remainder of the term of this Lease (including any Renewal Periods if applicable) upon all of the same terms and conditions of this Lease as it may have been amended by agreement between Landlord and Original Tenant, provided, however, that at the time of making any such election Original Tenant cures all defaults under the Lease. In the event Original Tenant assigns this Lease and it shall thereafter be rejected in a bankruptcy or similar proceeding brought by or against such assignee, a new lease identical to this Lease shall be entered into between Landlord and Original Tenant, provided that Original Tenant cures any monetary defaults and any other defaults that are capable of being cured. Any new lease created under this Section shall commence on the date of termination or rejection of this Lease, as applicable. Notwithstanding the foregoing, if Landlord, in its sole discretion delivers to the Original Tenant and Guarantor a release as to all liability under this Lease as theretofore amended, the Original Tenant shall not have the foregoing option.

 

D. In the case of a sublease of all or substantially all of the Demised Premises for the remainder of the Term and so long as the Minimum Credit Test or the requirements of Section 1 8B are met, Landlord shall, within thirty (30) days following Tenant’s request, deliver to Tenant a recognition and attornment agreement following the form attached hereto as Exhibit  D and otherwise subject to Landlord’s reasonable approval, executed and acknowledged by Landlord, for the benefit of such subtenant; provided that such subtenant executes and delivers an instrument reasonably satisfactory to Landlord confirming that such subtenant is jointly and severally liable under this Lease. Further, Landlord shall, within ten (10) days after Tenant’s request, shall request its Fee Mortgagee to deliver to Tenant an SNDA for the benefit of any such subtenant (and Landlord shall reasonably cooperate with Tenant, at no out of pocket cost to Landlord, in connection with obtaining any requisite consent from any Fee Mortgagee).

 

19. TITLE AND AUTHORITY.

 

A.             Landlord warrants and represents that Landlord is the owner of the fee simple of the Demised Premises and that other than any mortgages held by Fee Mortgagees that have provided an SNDA to Tenant in accordance with this Lease or such other liens or encumbrances that do not interfere with Tenant’s use of the Demised Premises or liens or encumbrances arising on account of any act or omission by Tenant or persons acting under Tenant or on account of Tenant’s failure to perform its obligations under this Lease, or matters set forth in Exhibit B 1, Landlord shall not voluntarily impose any other lien or encumbrance on the Demised Premises.

 

B.              Landlord and Tenant each warrant and represent to the other that (a) each is duly organized, validly existing and in good standing under the laws of the jurisdiction in which such entity was organized; (b) each has the authority to own its property and to carry on its business as contemplated under this Lease; (c) each has duly executed and delivered this

 

423

 

Lease; (d) the execution, delivery and performance by each of this Lease (i) are within its powers, (ii) have been duly authorized by all requisite action, (iii) will not violate any provision of law or any order of any court or agency of government, or any agreement or other instrument to which it is a party or by which it or any of its property is bound, (iv) will not render it insolvent or (v) will not result in the imposition of any lien or charge on any of its property, except by the provisions of this Lease; and (e) the Lease is a valid and binding obligation of each in accordance with its terms.

 

C. Landlord and Tenant have executed the Memorandum of Lease (hereinafter called the “Memorandum”) attached hereto as Exhibit E simultaneously with the execution of this Lease. Upon the expiration of the Term each agree to execute and deliver a recordable termination of the Memorandum, which covenant shall survive termination. Tenant irrevocably appoints Landlord its attorney in fact so to execute such termination of the Memorandum if Tenant fails to do so within ten (10) days of written request, which power is coupled with an interest and shall automatically be transferred to any successor or assign of Landlord’s interest in the Demised Premises.

 

20.            QUIET ENJOYMENT. Landlord covenants and agrees that provided no default remains uncured beyond any applicable notice and cure period, Tenant shall peaceably and quietly have, hold and enjoy the Demised Premises and all rights, easements, appurtenances and privileges belonging or in anyway appertaining thereto during the full term of this Lease and any extension thereof subject always to the terms of this Lease, provisions of law, and matters of record to which this Lease is or may become subordinate. This covenant is in lieu of any other so called quiet enjoyment covenant, whether express or implied.

 

21.            UNAVOIDABLE DELAYS. If either party shall be prevented or delayed from punctually performing any obligation or satisfying any condition under this Lease by any strike, lockout, labor dispute, inability to obtain labor or material, Act of God, governmental restriction, regulation or control, enemy or hostile governmental action, civil commotion, insurrection, sabotage, fire or other casualty or by any other event similar to the foregoing and beyond the control of such party, then the time to perform such obligation or to satisfy such condition shall be postponed by the period of time consumed by the delay. Time is of the essence for the performance of all monetary obligations under this Lease and the foregoing shall never apply to the performance of monetary obligations.

 

22. END OF TERM. Upon expiration or other termination of the term of this Lease, Tenant shall peaceably and quietly quit and surrender the Demised Premises and all Alterations in the good order and condition Tenant is required to maintain the same and remove all trade fixtures, equipment and other personal property whether or not bolted or otherwise attached and all of Tenant’s signs wherever located; and in all cases shall repair damage that results from such removal. Any fixtures and equipment that Tenant or Owner/Secured Party does not remove following the expiration or other termination of the Term of this Lease shall be deemed to be abandoned by Tenant, shall at once become the property of Landlord, and may be disposed of in such manner as Landlord shall see fit; and Tenant shall pay the cost of removal and disposal to Landlord within thirty (30) days after demand; provided, however, that if this Lease shall be terminated as the result of a default by Tenant, then trade fixtures and equipment shall not be deemed abandoned until sixty (60) days after notice of such termination is given to

 

424

 

Owner/Secured Party. Tenant or Owner/Secured Party shall have the right at any time prior to the date such fixtures and equipment shall be deemed abandoned to remove the same from the Demised Premises. Should Tenant or anyone claiming by, through or under Tenant hold over in possession after the Expiration Date or earlier termination of this Lease, such holding over shall not be deemed to extend the Term or to renew this Lease, but without limiting Landlord’s other rights and remedies on account of such breach the tenancy thereafter shall continue as a tenancy at sufferance from month-to-month upon the terms and conditions herein contained, provided, however that rent shall be charged and paid at one hundred fifty percent (150%) of the Fixed Annual Rent and Additional Rent in effect during the twelve (12) month period immediately preceding the Expiration Date or earlier termination.

 

23.         LANDLORD’S DEFAULT.

 

A.             Landlord shall be in default hereunder if its fails to comply with any of its express obligations set forth in this Lease within thirty (30) days following written notice and opportunity to cure; provided, however, Landlord will not be in default if said default could not reasonably be cured within such period of thirty (30) days, and Landlord promptly commences and thereafter proceeds with due diligence and in good faith to cure such default.

 

B.              In the event that a Fee Mortgagee shall have given written notice to Tenant that it is the holder of a mortgage covering the Demised Premises, and provided such notice includes the address to which notices to the Fee Mortgagee are to be sent, Tenant agrees that in the event it shall give written notice to Landlord to cure a default of Landlord as provided for in this Section, Tenant shall give a copy of said notice to the Fee Mortgagee. Tenant agrees that the Fee Mortgagee may cure or remedy such default within the time permitted to Landlord pursuant to this Section; provided that in addition the Fee Mortgagee shall be entitled to such further time as may be reasonably necessary for the Fee Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Fee Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion.

 

24. ADDITIONAL CHARGES. If Tenant shall be in default hereunder, Landlord, after thirty (30) days notice that Landlord intends to cure such default (but only ten (10) days notice if such default concerns any breach of Tenant’s insurance obligations under Section 11), shall have the right, but not the obligation, to cure such default and Tenant shall pay to Landlord, upon demand, as Additional Rent, the reasonable cost thereof. Other than such insurance defaults, Landlord shall not commence to cure any default of such a nature that it could not reasonably be cured within such period of thirty (30) days, if Tenant commences to cure same within said period, and thereafter proceeds with reasonable diligence and in good faith to cure such default.

 

25.         TENANT’S DEFAULT.

 

A. If Tenant fails to pay Fixed Annual Rent or Additional Rent when due and such default continues for ten (10) days after written notice; or if a default occurs on account of any asset sale, merger or consolidation on the part of Guarantor in violation of paragraph D of

 

425

 

this Section; or if a petition is filed by Tenant (or Guarantor) for insolvency or for appointment of a receiver, trustee or assignee or for adjudication, reorganization or arrangement under any bankruptcy act or other applicable law or if any similar petition is filed against Tenant (or Guarantor) and such petition is not dismissed within sixty (60) days thereafter; or if Tenant fails to perform any other covenant or condition under this Lease, Landlord may give Tenant a written notice specifying the nature of the default of such other covenant or condition and if Tenant does not, within thirty (30) days after receipt of such written notice (but only three (3) days in the case of failure to perform Tenant’s insurance obligations under Section 11), cure such other default or, if such default is of such a nature that it could not reasonably be cured within such period of thirty (30) days, and Tenant does not commence and proceed with reasonable diligence and in good faith to cure such default then, after the expiration of such thirty (30) day period (or longer period if such default cannot reasonably be cured within said thirty (30) day period), Landlord shall have the right, in addition to the rights set forth in the preceding sentence, to seek damages or an injunction as to such failure to perform, or after the expiration of such thirty (30) day period Landlord may, but only during the continuance of such default, send a notice to Tenant terminating this Lease and reenter the Demised Premises and dispossess Tenant and any other occupants thereof, remove their effects not previously removed by them, and hold the Demised Premises as if this Lease had not been made; and Tenant waives the service of any additional notice of intention to reenter or to institute legal proceedings to that end. If any payment of Fixed Annual Rent, Additional Rent, or other sum owing Landlord is not paid within five (5) days after the same is due, then in addition to all other remedies hereunder Tenant shall pay an administrative late charge to Landlord equal to five percent (5%) of the overdue amount in question, which late charge will be due upon demand as Additional Rent.

 

B. After a termination, dispossess or removal in accordance with this Section, (1) the Fixed Annual Rent and Additional Rent shall be paid up to the date of such dispossess or removal, (2) Landlord may re-let the Demised Premises or any part or parts thereof either in the name of Landlord or otherwise, for a term or terms which may, at the option of Landlord, be less than or exceed the period which would otherwise have constituted the balance of the term of this Lease, and (3) Tenant shall pay to Landlord, as liquidated damages, any deficiency between the Fixed Annual Rent and Additional Rent due hereunder and the amount, if any, of the rents actually collected by Landlord on account of the new lease or leases of the Demised Premises for each month of the period which would otherwise have constituted the balance of the term of this Lease (not including any Renewal Periods, the commencement of which shall not have occurred prior to such dispossess or removal). In computing such liquidated damages there shall be added to said deficiency the expenses which Landlord incurs in connection with re-letting the Demised Premises, including reasonable attorneys’ and brokerage fees, tenant inducements such as free rent, moving expense reimbursements, tenant improvement allowances, brokerage commissions, fees for legal services, and other expenses of preparing the Demised Premises for reletting (“Reletting Expenses”). Such Reletting Expenses shall be paid to Landlord within ten (10) days of demand and all other liquidated damages shall be paid by Tenant in monthly installments on the dates specified in this Lease for payment of Fixed Annual Rent and any suit brought to collect the amount of the deficiency for any month shall not prejudice in any way the rights of Landlord to collect the deficiency for any subsequent month by a similar proceeding. Landlord shall not be liable for failure to re-let the Demised Premises or, in the event that the Demised Premises are re-let, for failure to collect the rent under such re-letting, unless Landlord shall not have used its commercially reasonable efforts to re-let the Demised Premises for the reasonable

 

426

 

rental value thereof and to collect the rent under such re-letting. Landlord shall use its commercially reasonable efforts to mitigate damages.

 

C.              Landlord hereby expressly waives any and all rights granted by or under any present or future laws to reenter the Demised Premises, to dispossess Tenant or any other occupant thereof or to remove their effects not previously removed by them, or to terminate this Lease for any reason or in any manner other than as set forth in this Section 25. Tenant hereby expressly waives any and all rights granted by or under any present or future laws to remain in possession, cure any defaults or redeem its leasehold for any reason or in any manner other than as set forth in this Section 25. The provisions of this Section 25 shall survive the early termination of the Term.

 

D.      Any sum due from Tenant under this Lease is not paid within five (5) days after the same is due, such amount shall bear interest from the date due at the rate of one and one-half (11/2%) percent for each month (or ratable portion thereof) the same remains unpaid. Nothing in this Lease shall limit the right of Landlord to prove and obtain in proceedings for bankruptcy or insolvency an amount equal to the maximum allowed by any statute or rule of law in effect at the time; and Tenant agrees that the fair value for occupancy of all or any part of the Demised Premises at all times shall never be less than the Fixed Annual Rent and all Additional Rent payable from time to time.

 

E. The Guaranty given by Guarantor of this Lease is a material inducement to Landlord’s entering into this Lease. If at any time the Guarantor of this Lease shall sell all or a material portion of its assets or shall merge or consolidate with another entity and, in either case, if (1) Guarantor (including the resulting entity of any merger or consolidation) has a tangible net worth immediately after the transaction that is less than Guarantor’s tangible net worth immediately prior to the transaction, and (2) Guarantor’s tangible net worth immediately after the transaction is less than the Minimum Credit Test, then the transaction shall be a default under this Lease for which there is no cure period entitling Landlord to exercise all of the rights and remedies under this Section. If at any time the existing Guarantor desires to assign the Guaranty to another person and for such person to assume all of the obligations and liabilities under the Guaranty, and if the proposed successor Guarantor’s tangible net worth is greater than the Minimum Credit Test, Tenant may present evidence of such proposed successor Guarantor’s tangible net worth to Landlord in the form of financial statements for (A) the most recent fiscal year of the proposed successor Guarantor audited by a nationally recognized firm of certified public accountants and (B) the most recent fiscal quarters since such fiscal year certified to by Guarantor’s chief financial officer, together with a form of Guaranty identical in form to the form of Guaranty attached to this Lease as Exhibit F to be executed and delivered by the proposed successor Guarantor. Upon Landlord’s written approval of such financial statements as demonstrating a tangible net worth of the proposed successor Guarantor greater than the Minimum Credit Test (which approval will not be unreasonably withheld, conditioned or delayed) and upon the execution and delivery to Landlord of such form of Guaranty by the proposed successor Guarantor, the existing Tenant (if, but only if the Lease is being assigned to a successor Tenant) and Guarantor shall be released from all liability under the Lease and Guaranty and the successor Tenant and Guarantor shall become fully liable to Landlord under the Lease and Guaranty. Thereafter and as an obligation of the then successor Tenant under this Lease, such successor Guarantor shall annually and quarterly continue to provide such financial

 

427

 

statements to Landlord demonstrating that it continues to meet the Minimum Credit Test for those provisions of this Lease requiring such as a condition of being relieved from certain Lease obligations otherwise applicable. As used in this Lease “Guarantor” means the Guarantor then fully liable under its Guaranty to Landlord. “Tangible net worth” means the net worth as shown on such financial statements prepared in accordance with generally accepted accounting principles consistently applied and disregarding any value attributable to good will or other intangible assets and amounts owed by shareholders, officers or Affiliates except to the extent such amounts owed by Affiliates would ordinarily and customarily be consolidated on Tenant’s financial statements. “Minimum Credit Test” means a tangible net worth as shown on such fiscal year and fiscal quarter financial statements of at least Five Hundred Million Dollars ($500,000,000).

 

26. DESTRUCTION.

 

A.             In the event of any damage or destruction by fire, the elements, or casualty (hereinafter called “Destruction”) to all or any part of the Building or any other Improvements in the Demised Premises, Tenant shall commence promptly, and with due diligence continue to restore same to substantially the same condition as existed immediately preceding the Destruction, except as otherwise provided in paragraph B of this Section. If the Destruction is partial, Tenant shall complete the restoration within two hundred seventy (270) days after the Destructions, subject to Unavoidable Delays. If the Destruction is total, Tenant shall complete the restoration within eighteen (18) months following the Destruction, subject to Unavoidable Delays. In no event shall Fixed Annual Rent or any Additional Rent abate on account of any Destruction.

 

B.              If, as a result of any Destruction, fifty percent (50%) or more of the total floor area of the Building is damaged, destroyed or, in Tenant’s reasonable opinion rendered untenantable, during the last two (2) years of the Initial Term or during any Renewal Term (but this shall not apply at any other time), Tenant may elect to terminate this Lease by giving notice to Landlord of such election on or before the date that is ninety (90) days after the Destruction, stating the date of termination, which shall be not more than thirty (30) days after the date on which such notice of termination shall have been given, and (1) upon the date specified in such notice this Lease and the term hereof shall cease and expire and (2) any Fixed Annual Rent and Additional Rent shall be paid until such date of termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant. In the event that Tenant elects to terminate this Lease as a result of the Destruction referenced above, Tenant shall cause all insurance proceeds to be paid to Landlord including business interruption insurance proceeds.

 

C. Except in the case of paragraph B of this Section, Insurance proceeds shall be deposited with a bank or trust company acceptable to Landlord and Tenant and under the control of Landlord and Tenant, as trustees, or, if the Fee Mortgagee shall be a bank, trust company, insurance company or other entity engaged in mortgage lending then such proceeds shall be deposited with such Fee Mortgagee and shall be held and disbursed by it, as trustee, for restoration in accordance with customary construction lending practice and procedures. Any excess insurance proceeds shall be paid to Tenant at the conclusion of the restoration so long as Tenant is not then in default beyond any applicable cure period.

 

428

 

27. EMINENT DOMAIN.

 

A.             In the event of an actual taking for any public or quasi-public use by any lawful power or authority by exercise of the right of condemnation or of eminent domain or by agreement between Landlord and those having the authority to exercise such right (hereinafter called “Taking”) of the entire Building, then (1) this Lease and the Term shall cease and expire as of the date of vesting of title or transfer of possession, whichever occurs earlier, as a result of the Taking, and (2) any Fixed Annual Rent and Additional Rent shall be paid until such termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant.

 

B.              (1) In the event of a Taking of twenty (20%) or more of the Demised Premises, or in the event of a Taking resulting in a reduction of twenty (20%) percent or more of the parking spaces (unless Landlord provides adequate and sufficient additional contiguous parking areas in substitution therefor reasonably acceptable to Tenant), or in the event of a Taking resulting in a divided Building or parking area such that passage between the divided portions of the parking area is not possible, or in the event of permanent denial of reasonably adequate access to the Demised Premises or Building on account of a Taking which in Tenant’s reasonable judgment makes it economically unfeasible to operate Tenant’s business at the Demised Premises, then Tenant may elect to terminate this Lease by giving notice of termination to Landlord on or before the date which is ninety (90) days after receipt by Tenant of notice that the Taking in question. Said notice of termination shall state the date of termination, which date of termination shall be not more than thirty (30) days after the date on which such notice of termination is given to Landlord, and (a) upon the date specified in such notice of termination this Lease and the term hereof shall cease and expire, and (b) any Fixed Annual Rent and Additional Rent shall be paid until the date of termination and any such amounts paid for a period after such date of termination shall be promptly refunded to Tenant.

 

(2) If Tenant does not elect to terminate this Lease as aforesaid, then the award or payment for the Taking shall be used by Tenant for restoration as hereinafter set forth and Tenant shall promptly commence and with due diligence continue to restore the portion of the Demised Premises remaining after the Taking to substantially the same condition and tenantability as existed immediately preceding the Taking. Tenant shall complete the restoration within two hundred seventy (270) days after the Destruction, subject to Unavoidable Delays. Taking proceeds shall be paid, held and disbursed in the same manner as insurance proceeds under Section 26C and there shall be no abatement or reduction in Fixed Annual Rent or any Additional Rent. Any taking proceeds remaining after the restoration is complete shall be divided equally between Landlord and Tenant.

 

C. If this Lease is terminated under any provision of this Section 27, so long as Tenant is not then in breach of this Lease beyond any applicable cure period, any specific damages that are expressly awarded to Tenant on account of its relocation expenses and specifically so designated shall belong to Tenant. Except as provided in the preceding sentence of this paragraph, Landlord reserves to itself, and Tenant releases and assigns to Landlord, all rights to damages accruing on account of any Taking or by reason of any act of any public authority for which damages are payable. Tenant agrees to execute such further instruments of assignment as may be reasonably requested by Landlord, and to turn over to Landlord any

 

429

 

damages that may be recovered in any proceeding or otherwise; and Tenant irrevocably appoints Landlord as its attorney-in-fact with full power of substitution so to execute and deliver in Tenant’s name, place and stead all such further instruments if Tenant shall fail to do so after 10 days notice.

 

28.            THIRD PARTY LITIGATION. If Landlord, Landlord’s adviser or its mortgagees are made parties to any litigation commenced by or against Tenant by or against any person claiming through Tenant with respect to the Demised Premises, Tenant agrees to indemnify Landlord in the manner provided in Section 38 and in addition pay, as Additional Rent, all costs of Landlord in connection with such litigation including reasonable counsel fees and litigation costs, except in the sole instance where Landlord or Tenant have legal claims in the litigation against one another or where Landlord has been adjudicated in any litigation to have acted with gross negligence or willful misconduct. Without limitation, the foregoing includes foreclosure or enforcement of any lien, attachment or mortgage on the Demised Premises resulting from the act or omission of Tenant, but shall not include any Fee Mortgage or other lien created by Landlord.

 

29.            WAIVER OF DISTRAINT. Landlord hereby expressly waives any and all rights granted by or under any present or future laws to levy or distrain for rent, in arrears, in advance or both, upon all goods, merchandise, equipment, trade fixtures, furniture and personal property of Tenant or any nominee of Tenant in the Demised Premises, delivered or to be delivered thereto.

 

30. ESTOPPEL CERTIFICATES. Upon the request of either party, at any time and from time to time, Landlord and Tenant agree to execute and deliver to the other, within thirty (30) days after such request, a written instrument that may be relied upon by the requesting party, its potential purchasers, lenders, investors, subtenants and/or assignees (and any of their respective successors and assigns), duly executed, (a) certifying if such is the case that this Lease has not been modified and is in full force and effect or, if there has been a modification of this Lease, that this Lease is in full force and effect as modified, stating such modifications, (b) specifying the dates to which the Fixed Annual Rent and Additional Rent have been paid, (c) stating whether or not, to the knowledge of the party executing such instrument, the other party hereto is in default and, if such party is in default, stating the nature of such default, (d) stating the Commencement Date and Expiration Date, (e) stating which options to renew the term have been exercised, if any; and (f) any other information that may reasonably requested by the requesting party and customarily addressed in an estoppel certificate.

 

31. NOTICES. Any notices, consents, approvals, submissions or demands (“Notices”) given under this Lease or pursuant to any law or governmental regulation, including, without limitation, those by Landlord to Tenant or by Tenant to Landlord shall be in writing. Unless otherwise required by law, governmental regulation or this Lease, any such Notice shall be deemed given if sent by registered or certified mail, return receipt requested, postage prepaid or by nationally recognized overnight delivery service (a) to Landlord, at the address of Landlord as hereinabove set forth and with like copy given to Daniel A. Taylor, Esq. or Primo Fontana, Esq., DLA Piper, 33 Arch Street 26th Floor, Boston MA 02110 and/or such other persons and addresses as Landlord may designate by notice to Tenant; or (b) to Tenant, then one copy shall be delivered to the attention of the General Counsel, another shall be delivered to the attention of

 

430

 

the Senior Vice President of Real Estate, and another shall be delivered to the attention of the Senior Director of Properties and Administration, all at 2 Paragon Drive, Montvale, New Jersey 07645 or to such other addresses as Tenant may designate by notice to Landlord. Any such Notice shall be deemed given three (3) business days after being sent by registered or certified mail, return receipt requested, postage prepaid, and one business (1) day when sent by overnight delivery. A party’s attorney may give Notices on behalf of such party.

 

32.            BROKER. Each party represents and warrants to each other there is no broker, agent, finder or other person with whom it has dealt in connection with the negotiation, execution and delivery of this Lease other than those persons named in that certain Agreement of Sale and Leaseback dated as of November 2, 2010 entered into between Tenant and Landlord (or Affiliates of each) regarding a transaction that led to this Lease.

 

33.            LIENS. Tenant shall keep the Demised Premises (and Landlord’s interest therein) and Tenant’s leasehold (and Tenant’s interest therein) free of, and shall within thirty (30) days discharge, any attachment, lien, security interest or other encumbrance that arises as a result of any act or omission of Tenant or persons acting by, through or under Tenant. Without limitation, Tenant will not permit or suffer any mechanic’s or materialmen’s or other liens to stand against the Demised Premises for any labor or material furnished in connection with work of any character performed, any services provided or any other act, omission or obligation on the part or at the direction of Tenant or persons claiming by, through or under Tenant, and Landlord will not permit any such liens for work or material furnished the Landlord to stand against said premises (the foregoing shall not imply that Landlord has any responsibility to furnish any work or material). However, Landlord and Tenant shall respectively have the right to contest the validity or amount of any such lien, provided that the payment of such amount is bonded during the pendency of such contest, but upon the final determination of such contest the party responsible for such lien shall immediately pay any judgment rendered with all proper costs and charges (including reasonable attorneys’ fees) and shall have the lien released at its own expense. In lieu of bonding either party may obtain other security acceptable to the other party in such party’s sole discretion. Any contest hereunder shall be subject to all requirements set forth in any Fee Mortgage.

 

34.            DEFINITION OF LANDLORD. The term “Landlord” as used herein, means Landlord named herein and any subsequent owner of Landlord’s estate hereunder. Any owner of Landlord’s estate hereunder shall be relieved of all liability under this Lease after the date that it ceases to be the owner of Landlord’s estate (except for any liability arising prior to such date) and the party succeeding to Landlord’s estate shall assume all liability of Landlord arising from and after it becomes owner of Landlord’s estate. The foregoing shall be self-operative but Landlord and Tenant shall upon the request of either execute and deliver an instrument acknowledging the foregoing.

 

35.            ADJOINING OR ADJACENT PROPERTY. Landlord and Tenant shall each promptly forward to the other any notice or other written communication received by it from any owner of property adjoining or adjacent to the Demised Premises or from any municipal or other governmental authority in connection with any hearing or other administrative proceeding relating to the use of the Demised Premises or any adjoining or adjacent property. Tenant may, at its sole cost and expense, in its own name and/or in the name of Landlord, appear in any such

 

431

 

proceeding. Landlord shall fully cooperate with Tenant (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and shall, without limitation, make such appearances and furnish such information as may be reasonably required by Tenant. Landlord agrees to execute any instruments reasonably requested by Tenant in connection with any such proceeding.

 

36. ENVIRONMENTAL LAWS.

 

A. “Environmental Laws” shall mean all federal, state or local laws, ordinances, rules, regulations, or policies, whether now or hereafter enacted, governing the use, clean-up, remediation storage, treatment, transportation, manufacture, refinement, handling, release, production or disposal of Hazardous Materials including, without limitation: (1) the Comprehensive Environmental Response, Compensation and Liability Act of 1980, (42 U.S.C. Sections 9601, et. seq.) as amended by the Superfund Amendments and Reauthorization Act; (2) the Hazardous and Solid Waste Act amendments of 1984 Pub L 98-616 (42 U.S.C. Section 699); (3) the Hazardous Materials Transportation Act, (49 U.S.C. Section 1801, et. seq.); (4) the Resource Conservation and Recovery Act of 1976, (42 U.S.C. Sections 6901, et. seq.); or (5) the Toxic Substances Control Act, and any amendments thereto and any regulations adopted and publications promulgated pursuant thereto, or any other federal, state or local environmental laws, ordinances, rules, or regulations whether now or hereafter enacted. “Hazardous Materials” shall mean any hazardous wastes or hazardous substances as defined in any Environmental Law including, without limitation, any asbestos, PCB, toxic, noxious or radioactive substances, methane, volatile hydrocarbons, petroleum, petroleum by-products, industrial solvents or any other material or substance which could cause or constitute a health, safety or other environmental hazard to any person or property.

 

B. Tenant, at its sole cost and expense, shall until the Expiration Date of this Lease comply with all Environmental Laws and shall be responsible for all Hazardous Materials on or migrating from the Land and Demised Premises prior to, on and after the Commencement Date, it being acknowledged that Tenant or its Affiliate owned the Land and Demised Premises prior to the Commencement Date. Tenant shall provide Landlord with copies of any notices pertaining to any governmental proceedings or actions under any Environmental Law (including requests or demands for entry onto the Demised Premises and/or Land for purposes of inspection regarding the handling, disposal, clean-up or remediation of Hazardous Materials or claims, penalties, fines or assessments) within fifteen (15) days after receipt thereof. Landlord shall cooperate with Tenant (so long as Landlord’s cooperation does not involve incurring obligations or liability or material expense to Landlord unreimbursed by Tenant) and provide such documents, affidavits and information as may be reasonably necessary for Tenant to comply with all Environmental Laws.

 

C. If required by governmental authority or if Landlord has a reasonable basis to believe a release of Hazardous Materials may have occurred or a threat of release exists on or from the Land or Demised Premises or Hazardous Materials activities have taken place on the Land or Demised Premises that do not conform to Environmental Laws, then Landlord may, but need not, perform appropriate testing in a commercially reasonable manner and the reasonable costs thereof shall be reimbursed to Landlord by Tenant upon demand as Additional Rent. Tenant shall execute affidavits, representations and the like from time to time at

 

432

 

Landlord’s request concerning Tenant’s actual knowledge and belief regarding the presence or absence of Hazardous Materials at the Land and Demised Premises. In all events, and without limitation, Tenant shall indemnify all Indemnitees, expressly including without limitation all Fee Mortgagees, in the manner elsewhere provided in this Lease with respect to Hazardous Materials on or migrating from the Land and Demised Premises prior to, on and after the Commencement Date (and for these purposes, the loss indemnified shall include without limitation any costs of investigation or remediation, and any claim of personal injury or property damage to any person); provided, however, that such indemnity shall not include and Tenant shall not be responsible for Hazardous Materials migrating on to the Land from the land of third parties. The covenants of this Section shall survive the Term. Tenant shall from time to time upon Landlord’s request confirm all of the foregoing covenants directly to mortgagees.

 

37. LEASEHOLD MORTGAGE.

 

A.             Tenant, and its successors and assigns (including, without limitation, any subtenant of Tenant), may, from time to time and without Landlord’s prior written consent, mortgage all or any portion of its right, title and interest in and to this Lease under one leasehold mortgage at any one time, or two leasehold mortgages given as part of a single financing transaction, to an Institutional Lender (each, a “Leasehold Mortgage”), and assign any or all rights under this Lease and any subleases as collateral security for such Leasehold Mortgage; provided that all rights acquired under such Leasehold Mortgage shall be subject to all of the terms, covenants and conditions of this Lease, and to all rights and interests of Landlord, none of which terms, covenants or conditions is or shall be waived by Landlord by reason of the right given to so mortgage such interest in this Lease. In no event shall Tenant have any right to mortgage or encumber Landlord’s fee interest in the Demised Premises. The term “Leasehold Mortgage” shall include whatever security instruments that may be used in the locale of the Demised Premises, such as, without limitation, deeds of trust, security deeds and conditional deeds, as well as financing statements, assignment of leases and rents, security agreements and other documentation required pursuant to the Uniform Commercial Code. The term “Leasehold Mortgage” shall also include any instruments required in connection with a sale-leaseback transaction. An “Institutional Lender” is a bank, trust company, savings and loan association, pension fund, endowment fund, insurance company, other institutional pool of recognized status or a governmental authority empowered to make loans or issue bonds or any other recognized institution regularly engaged in the making of mortgage loans that has not less than $100,000,000 in assets. The holder of any Leasehold Mortgage shall be called a “Leasehold Mortgagee.”

 

B.              If Tenant and/or Tenant’s successors and assigns (including, but not limited to, any sublessee of Tenant) shall grant a Leasehold Mortgage, and if Tenant shall send to Landlord a true copy thereof, together with a notice specifying the name and address of the Leasehold Mortgagee (“Mortgage Notice”), Landlord agrees that as long as any such Leasehold Mortgage shall remain unsatisfied of record or until a notice of satisfaction is given by the Leasehold Mortgagee to Landlord, the following provisions shall apply:

 

(1) There shall be no cancellation, surrender or modification of this Lease by joint action of Landlord and Tenant without the prior consent of the Leasehold Mortgagee;

 

433

 

(2)             Landlord shall, upon serving Tenant with any notice of default, simultaneously serve a copy of such notice upon the Leasehold Mortgagee. The Leasehold Mortgagee shall thereupon have the same period to remedy or cause to be remedied the defaults complained of, and Landlord shall accept such performance by or at the instigation of such Leasehold Mortgagee as if the same had been done by Tenant; provided that in the case of defaults that cannot be cured by the payment of money in addition the Leasehold Mortgagee shall be entitled to such further time to remedy or cause to be remedied the defaults complained of as may be reasonably necessary for the Leasehold Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Leasehold Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion.. Nothing herein shall be construed as requiring a Leasehold Mortgagee to cure any default. Landlord’s failure to deliver any such copy to a Leasehold Mortgagee shall not affect the Landlord’s exercise of any right or remedy under the Lease in any way whatsoever;

 

(3)             If any default shall occur which, pursuant to any provision of this Lease, entitles Landlord to terminate this Lease, and if before the expiration of twenty (20) days from the date of the giving of notice of termination upon such Leasehold Mortgagee, such Leasehold Mortgagee shall have notified Landlord of its desire to nullify such notice and shall have paid to Landlord all Fixed Annual Rent and Additional Rent herein provided for which are then in default, and shall have complied (or caused compliance) with all of the other requirements of this Lease, if any are then in default, then, in such event, Landlord shall not be entitled to terminate this Lease and any notice of termination previously given shall be void and of no effect;

 

(4)             Notwithstanding anything in this Lease to the contrary, any sale of Tenant’s leasehold interest in any proceeding for the foreclosure of the Leasehold Mortgage, or the assignment or transfer of Tenant’s leasehold interest in lieu of the foreclosure of any Leasehold Mortgage, shall be deemed to be a permitted sale, transfer or assignment;

 

(5)             If not required to be held by the Fee Mortgagee, the proceeds from any insurance policies or arising from a Taking may be held by any institutional Leasehold Mortgagee and distributed pursuant to the provisions of this Lease;

 

(6)             The Leasehold Mortgagee may be added to the “Loss Payable Endorsement” of any and all insurance policies required to be carried by Tenant hereunder on the condition that the insurance proceeds are to be applied in the manner specified in this Lease and that the Leasehold Mortgage shall so agree; except that the Leasehold Mortgage may provide a manner for disposition of such proceeds as remain after full compliance with the restoration covenants of this Lease, if any, otherwise payable to Tenant (but not such proceeds, if any, payable to Landlord, any Fee Mortgagee or jointly to Landlord or Tenant) pursuant to the terms of this Lease; and

 

(7)             Landlord shall provide Leasehold Mortgage with prompt notice of any legal proceeding or arbitration between Landlord and Tenant. Unless the Leasehold Mortgage provided otherwise, Leasehold Mortgagee shall have the right to intervene in any such

 

434

 

proceeding and be made a party to such proceeding, and the parties hereby consent to such intervention. Landlord’s failure to deliver any such notice to a Leasehold Mortgagee shall not affect the Landlord’s exercise of any right or remedy under the Lease in any way whatsoever.

 

Tenant, in any Mortgage Notice served upon Landlord under this Section, may exclude any or more of the above provisions, and if so excluded, such provisions shall not be effective.

 

C. Landlord shall, upon request, execute, acknowledge and deliver to each Leasehold Mortgagee, an agreement prepared at the sole cost and expense of Tenant, in form reasonably satisfactory to such Leasehold Mortgagee and Landlord, between Landlord, Tenant and Leasehold Mortgagee, separately agreeing to all of the provisions of this Section.

 

38.            INDEMNITY. Except as otherwise expressly set forth in this Lease, Tenant shall assume exclusive control of the Demised Premises and all areas pertaining thereto including all appurtenances, improvements, utilities, water bodies, grounds, sidewalks, walkways, driveways and parking facilities, and Tenant shall bear the sole risk of all related tort liabilities. To the greatest extent permitted by applicable law, Tenant shall indemnify, save harmless and defend Landlord, Landlord’s adviser and mortgagees and their respective officers, directors, managers, members, partners, agents and employees, (“Indemnitees”) from all liability, claim, damage, cost or loss (including reasonable fees and litigation costs) arising in whole or in part out of, or in any manner connected with (i) any injury, loss, theft or damage to any person or property while on or about the Demised Premises, or (ii) any condition of the Demised Premises, or the possession and use thereof (including any failure to vacate at the end of the Term) or any activity permitted or suffered on the Demised Premises (including Hazardous Materials), or (iii) any breach of any covenant, representation or certification by Tenant or persons acting under Tenant, or (iv) any negligent act or omission anywhere by Tenant or persons acting under Tenant, in each case paying the same to Landlord on demand as Additional Rent, except to the extent such liability results from the negligence or willful misconduct of Landlord or the other Indemnitees. Without implying that other covenants do not survive, the covenants of this Section shall survive the Term. Tenant shall immediately respond and assume the investigation, defense and expense of all of the foregoing matters. Landlord or any Indemnitee, at its sole cost and expense, may join in such defense with counsel of its choice.

 

39.            LIMITATION OF LANDLORD’S LIABILITY. Notwithstanding anything contained to the contrary in this Lease, whether express or implied, it is agreed that Tenant will look only to Landlord’s fee interest in and to the Demised Premises for the collection of any judgment (or other judicial process) requiring the payment of money by Landlord in the event of a breach or default under this Lease by Landlord with respect to any claim whatsoever related to the Demised Premises, and no other property or assets of Landlord or of Landlord’s adviser or of any Fee Mortgagee or its or their managers, members, directors, officers, trustees, beneficiaries, shareholders, partners, joint venturers (disclosed or undisclosed) shall be subject to suit or to levy, execution or other enforcement procedures for the satisfaction of any such judgment (or other judicial process). No officer, director, manager, member, shareholder, trustee, beneficiary, partner, agent, attorney or employee of Landlord or of Landlord’s adviser or of any Fee Mortgagee shall ever be personally or individually liable; nor shall Landlord, Landlord’s adviser or any Fee Mortgagee or such persons ever be answerable or liable in any equitable judicial

 

435

 

proceeding or order beyond the extent of their interest in the Demised Premises. In no event shall Landlord, Landlord’s adviser or any Fee Mortgagee or any such persons ever be liable to Tenant for indirect or consequential damages.

 

40.            BOOKS AND RECORDS. Tenant shall at all times keep and maintain full and correct records and books of account of the operations of the Demised Premises in accordance with generally accepted accounting principals consistently applied and shall accurately record and preserve the records of such operations in accordance with its customary records retention policy. Notwithstanding that there has been no Percentage Rent Event, Tenant shall report the gross sales from the Demised Premises to Landlord annually for each fiscal year of Tenant no later than thirty (30) days following the end of such fiscal year, such report to be certified by Tenant’s chief financial officer. Landlord shall keep such information confidential at all times in accordance with the terms of Exhibit J and may only release such information to Landlord’s constituent members, and so long as such persons execute and deliver to Tenant a Confidentiality Agreement with Tenant in the form attached hereto as Exhibit J (“Confidentiality Agreement”) whether or not Tenant signs such Confidentiality Agreement, also to its lenders and prospective lenders and to prospective purchasers of Landlord’s interest in the Demised Premises. Upon an Event of Default, Tenant shall permit Landlord, Landlord’s accountants and Fee Mortgagees reasonable access thereto, with the right to make copies and excerpts therefrom upon reasonable advance notice to Tenant.

 

41.            SATELLITE DISH. If permitted by applicable law, Tenant shall have the right to place on the roof or wall of the Demised Premises at Tenant’s sole cost and expense, a satellite dish (hereinafter called the “Dish”) for transmission of data (both receiving and sending) between Tenant’s various operations and its headquarters in accordance with all laws and governmental regulations.

 

42.            NO PRESUMPTION AGAINST DRAFTER. Landlord and Tenant agree and acknowledge that this Lease has been freely negotiated by Landlord and Tenant. In any event of any ambiguity, controversy, dispute or disagreement over the interpretation, validity or enforceability of this Lease or any of its covenants, terms or conditions, no inference, presumption or conclusion whatsoever shall be drawn against Tenant by virtue of Tenant’s having drafted this Lease.

 

43.            SUCCESSORS AND ASSIGNS; AFFILIATES. The covenants and agreements contained in this Lease shall bind and inure to the benefit of the successors and assigns of each party. As used in this Lease “Affiliate” (whether or not capitalized) shall mean, with respect to any person, any person controlled by, controlling, or under common control with such person; and “control” shall mean any direct ownership interest or right through the exercise of voting or approval rights or otherwise, to exercise decision-making authority generally.

 

44.            CAPTIONS. The captions preceding the Sections of this Lease are intended only as a matter of convenience and for reference and in no way define, limit or describe the scope of this Lease or the intent of any provision hereof.

 

45.            INVALIDITY OF CERTAIN PROVISIONS. If any provision of this Lease shall be invalid or unenforceable, the remainder of the provisions of this Lease shall not be

 

436

 

affected thereby and each and every provision of this Lease shall be enforceable to the fullest extent permitted by law.

 

46.                                    CHOICE OF LAW/JURISDICTION. This Lease, and the rights and obligations of the parties hereto, shall be interpreted and construed in accordance with the laws where the Demised Premises are located (the “State”), without regard to the State’s internal conflict of law principles. Any disputes arising out of this Lease or between Landlord and Tenant shall be subject to the exclusive jurisdiction of the state courts of the State.

 

47.                                    NO WAIVER. The failure of either party to seek redress for violation of or to insist upon the strict performance of, any term, covenant or condition contained in this Lease shall not prevent a similar subsequent act from constituting a default under this Lease. Without limitation, no written consent by Landlord or Tenant to any act or omission that otherwise would be a default shall be construed to permit other similar acts or omissions. Neither party’s failure to seek redress for violation or to insist upon the strict performance of any covenant, nor the receipt by Landlord of rent with knowledge of any breach of covenant, shall be deemed a consent to or waiver of such breach. No breach of covenant shall be implied to have been waived unless such is in writing, signed by the party benefiting from such covenant and delivered to the other party; and no acceptance by Landlord of a lesser sum than the Fixed Annual Rent, Additional Rent or any other sum due shall be deemed to be other than on account of the installment of such rent or other sum due. Nor shall any endorsement or statement on any check or in any letter accompanying any check or payment be deemed an accord and satisfaction; and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such installment or pursue any other right or remedy. The delivery of keys (or any other act) to Landlord shall not operate as a termination of the Term or an acceptance or surrender of the Demised Premises. The acceptance by Landlord of any rent following the giving of any default and/or termination notice shall not be deemed a waiver of such notice.

 

48.                                    ATTORNEY’S FEES. In the event that either Landlord or Tenant employ an attorney to enforce or defend any of the conditions, covenants, rights or obligations of this Lease (including, without limitation, a default by either party), then the prevailing party shall be entitled to all reasonable attorney fees and all other reasonable out-of-pocket litigation costs (including, but not limited to filing fees, expert reports and testimony, court costs and other usual costs of litigation of this type) incurred by such prevailing party.

 

49.                                    WAIVER OF TRIAL BY JURY. To the extent such waiver is permitted by law, the parties waive trial by jury in any action or proceeding brought in connection with this Lease or the Demised Premises.

 

50.                                      MISCELLANEOUS. Other than contemporaneous instruments executed and delivered of even date, if any, this Lease contains all of the agreements between Landlord and Tenant relating in any way to the Demised Premises and supersedes all prior agreements and dealings between them. There are no oral agreements between Landlord and Tenant relating to this Lease or the Demised Premises. This Lease may be amended only by a written instrument executed and delivered by both Landlord and Tenant. The provisions of this Lease shall bind Landlord and Tenant and their respective successors and assigns. Where the phrases “persons

 

437

 

acting under” Landlord or Tenant or “persons claiming through” Landlord or Tenant or similar phrases are used, the persons included shall be assignees, sublessees, licensees or other transferees or successors of Landlord or Tenant as well as invitees or independent contractors of Landlord or Tenant, and all of the respective employees, servants, contractors, agents and invitees of Landlord, Tenant and any of the foregoing. As used herein, “monetary default” shall mean a default that can be substantially cured solely by the payment of money and nothing more and “non-monetary default” shall mean a default that cannot be substantially cured solely by the payment of money and northing more. If either party is granted any extension, election or other option, to be effective the exercise (and notice thereof) shall be unconditional, irrevocable and must be made strictly in accordance with the prescribed terms and times; otherwise its purported exercise shall be void and ineffective. The enumeration of specific examples of a general provisions or use of the word “including” shall not be construed as a limitation of the general provision. Unless a party’s approval or consent is required by the express terms of this Lease not to be unreasonably withheld, such approval or consent may be withheld in the party’s sole discretion. The submission of a form of this Lease or any summary of its terms shall not constitute an offer by Landlord to Tenant; the leasehold shall only be created and the parties bound when this Lease is executed and delivered by both Landlord and Tenant. Nothing herein shall be construed as creating the relationship between Landlord and Tenant of principal and agent, or of partners or joint venturers or any relationship other than landlord and tenant. This Lease and all consents, notices, approvals and all other related documents may be reproduced by any party by any electronic means or by electronic, photographic or other reproduction process and the originals may be destroyed; and each party agrees that any reproductions shall be as admissible in evidence in any proceeding as the original itself (whether or not the original is in existence and whether or not reproduction was made in the regular course of business), and that any further reproduction of such reproduction shall likewise be admissible. If any payment in the nature of interest provided for in this Lease shall exceed the maximum interest permitted under controlling law, as established by final judgment of a court, then such interest shall instead be at the maximum permitted interest rate as established by such judgment. Landlord and Tenant expressly agree that there are and shall be no implied warranties of merchantability, habitability, suitability, fitness for a particular purpose or of any other kind arising out of this Lease, and there are no warranties or representations other than those expressly set forth in this Lease. Without limitation, where Tenant in this Lease indemnifies or covenants for the benefit of present and future Fee Mortgagees, such agreements are for the benefit of present and future Fee Mortgagees as third party beneficiaries; and at the request of Landlord, Tenant from time to time will confirm such matters directly with such Fee Mortgagee.

 

51.                                    COUNTERPARTS. This Lease may be executed in any number of counterparts, each of which shall be deemed to be one and the same instrument. A facsimile, email, PDF or electronic signature shall be deemed an original signature.

 

52.                                    INCORPORATION OF STATE LAW PROVISIONS. Certain provisions/ sections of this Lease and certain additional provisions/sections that are applicable or required by laws of the state in which the Demised Premises are located may be amended, described or otherwise set forth in more detail on Exhibit I attached hereto, which such Exhibit by this reference, is incorporated into and made a part of this Lease. In the event of any conflict between such state law provisions and any provision herein, the state law provisions shall control.

 

438

 

[SIGNATURE PAGE FOLLOWS]

 

439

 

 

 

	
IN WITNESS WHEREOF this Lease has been 
   duly executed under as of the Effective
    	
 
    	
 
    
	
Date.
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
 
    
	
 
    	
 
    	
WE APP WILMINGTON LLC, a
    
	
 
    	
 
    	
Delaware   limited liability company
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
WITNESS:
    	
 
    	
 
    
	
 
    	
 
    	
PATHMARK STORES, INC., a
    
	
 
    	
 
    	
Delaware   corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
Name:
    	
Christopher   W. McGarry
    
	
 
    	
 
    	
Title:
    	
Vice   President and Secretary
    
					

 

Signature Page to Lease By and Between

WE APP WILMINGTON LLC and PATHMARK STORES, INC.

 

440

 

EXHIBIT A

 

SITE PLAN OF DEMISED PREMISES

 

 

441

 

EXHIBIT B1

 

LEGAL DESCRIPTION OF THE LAND

 

Premises A:

 

ALL that certain lot, piece or parcel of land with the improvements erected thereon, situate in Christiana Hundred, New Castle County and State of Delaware, being more particularly bounded and described in accordance with that certain ALTA/ACSM Land Title Survey prepared by Van DeMark & Lynch, Inc. for Pathmark Stores, Inc. dated July 6, 1998, as revised (File No 333l6-L) as follows to wit:

 

BEGINNING at a monument found on the northeasterly side of the Lancaster Pike, (S.R. 48) said point being a corner for lands now or formerly of Penn mark Real Estate Group, L.LC. (Deed Record 1848, Page 87), leased by Supermarkets General Corporation Deed Record X, Volume 110, Page 272, said northeasterly side of Lancaster Pike being distant northeasterly 53 feet therefrom at right angles thereto the centerline, said point Beginning distant the three following described courses and distances measured along the sides of the said Lancaster Pike from a corner of lands now or formerly of E.I. DuPont DeNemours & Company:

 

(1) North 62 degrees 13 minutes 60 seconds West, 242.24 feet to a point;

(2) North 27 degrees 08 minutes 30 seconds East, 5.63 feet to a set drill hole; and

(3) North 48 degrees 21 minutes 59 seconds West, 51.64 feet to the point of Beginning

 

THENCE from said point of Beginning and continuing along the various courses of the said northeast side of Lancaster Pike, the three following described courses and distances:

 

(1) North 62 degrees 13 minutes 50 seconds West, 197.03 feet to a found monument;

(2) North 70 degrees 23 minutes 36 seconds West, 53.52 feet to a found monument; and

(3) North 64 degrees 24 minutes 10 seconds West, 141.71 feet to a found monument in the line of lands said point being distant northeasterly 40.10 feet therefrom measured at right angles thereto the said centerline of the Lancaster Pike;

 

THENCE partially along the southeasterly line and along the northeasterly line of said lands now or formerly of Shellhorn & Hill Incorporated, the two following courses and distances:

 

(1) North 18 degrees 18 minutes 30 seconds East, 106.42 feet to a set iron pin; and

(2) North 62 degrees 13 minutes 50 seconds West 130.35 feet to a found monument in the line of lands now or formerly of Mother African UFCMP Church (Deed Record 1649, Page 27);

 

THENCE along lines of said lands now or formerly of Mother African UFCMP Church the three following described courses and distances;

 

(1) North 28 degrees 21 minutes 00 seconds East, 40.00 feet to a found monument;

(2) North 62 degrees 13 minutes 50 seconds West, 3.02 feet to a found monument; and

(3) North 27 degrees 35 minutes 03 seconds East, 250.00 feet to a point, a corner for lands now or formerly of Bellevue Office Plaza as shown on a Record Land Development Plan recorded in the Office of the Recorder of Deeds in and for New Castle County on Microfilm No. 6686;

 

442

 

THENCE, partially along the southwesterly line of said lands now or formerly of Bellevue Office Plaza, South 62 degrees 13 minutes 50 seconds East, 538.93 feet to a set nail, a corner for said lands leased by Supermarkets General Corporation;

 

THENCE THEREBY, South 27 degrees 08 minutes 30 seconds West, 382.02 feet to a point on the said northeasterly side of Lancaster Pike and the point and place of Beginning.

 

Premises B:

 

ALL that certain parcel of land situate in Christiana Hundred, New Castle County and State of Delaware, being more particularly bounded and described as follows, to wit:

 

Beginning at a point on the northeasterly side of Lancaster Turnpike, at 70 feet wide, said point of Beginning being North 62 degrees 13 minutes 50 seconds West 242.24 feet measured along the said northeasterly side of Lancaster Turnpike from a corner common to lands of Commonwealth Trust Co., and lands now or formerly of E.I. DuPont deNemours & Co.; thence from said point of Beginning and along said northeasterly side of the Lancaster Turnpike, North 62 degrees 13 minutes 50 seconds West, 50.00 feet to a point, a corner for lands now or formerly of Lancaster Investments, Inc.; thence thereby North 27 degrees 08 minutes 30 seconds East 400.02 feet to a corner; thence continuing along the said line of lands of Lancaster Investments, Inc., South 62 degrees 13 minutes 50 seconds East 50.00 feet to a point; thence by a new line through lands of Commonwealth Trust Co. South 27 degrees 08 minutes 30 seconds West 400.02 feet to the first mentioned point and place of Beginning. Be the contents thereof what they may.

 

443

 

EXHIBIT B2

 

TITLE MATTERS AND ENCUMBRANCES

 

1.          Subject to sanitary sewer assessment and rent, not yet due and payable.

 

2.          Right of Way Agreements recorded in Deed Record M, Vol. 98, Page 39, Deed Record K, Vol. 113, Page 270 and Deed Record W, Vol. 122, Page 75

 

444

 

EXHIBIT C

 

REMEDIAL WORK

 

(Tenant Performs Construction with Landlord Reimbursement)

 

Reimbursement Cap: $375,000.00

 

Remedial Work Completion Date: the third anniversary of the Effective Date of the Lease

 

C. 1 Construction Documents. Tenant shall prepare, at Tenant’s expense, and deliver to Landlord Construction Documents (meaning plans and specifications prepared by design professionals licensed to prepare such plans and specifications which reasonably fix and describe the work to be performed by Tenant contractors) for roof replacements, parking area repairs and replacements, heating, ventilating and air conditioning upgrades, environmental remediation, asbestos abatement and automation improvements in an amount totaling at least the amount of the Reimbursement Cap, all as Landlord and Tenant shall reasonably and mutually agree. The Construction Documents shall substantially conform to and describe such work as so agreed, and when such Construction Documents are approved by Landlord, such approval not to be unreasonably withheld, conditioned or delayed, the work described therein shall be the “Remedial Work” referred to herein. Tenant shall provide at least 6 copies of the Construction Documents to Landlord. Tenant shall be solely responsible for the liabilities and expenses of all architectural and engineering services relating to the Remedial Work and for the adequacy and completeness of the Construction Documents submitted to Landlord and for the Remedial Work itself, notwithstanding Landlord’s approval thereof.

 

C.2 Remedial Work Reimbursement. Upon Landlord’s approval of the Construction Documents showing the Remedial Work to be performed, Tenant shall cause the Remedial Work to be performed in accordance with all of the terms and requirements of the Lease including Exhibit G, and the reasonable out-of-pocket costs to Tenant of performing the Remedial Work shall be eligible for Reimbursement in the manner provided below up to but not in excess of the Reimbursement Cap listed above. All costs for the Remedial Work in excess of the Reimbursement Cap shall be paid for entirely by Tenant, and Landlord shall not provide any reimbursement therefor. Any Remedial Work not completed by the Remedial Work Completion Date listed above shall be ineligible for reimbursement from Landlord, and such Remedial Work shall be paid for solely by Tenant.

 

Notwithstanding anything in the Lease to the contrary, prior to the Remedial Work Completion Date Tenant shall have no obligation to perform any Remedial Work if the cost of same will exceed the Reimbursement Cap, unless Tenant determines, in its sole, reasonable judgment, that such work is necessary and prudent for the proper maintenance and operation of the Demised Premises.

 

Reimbursement of the reasonable out-of-pocket costs to Tenant of performing Remedial Work up to the Reimbursement Cap and by the Remedial Work Completion Date shall be disbursed to Tenant by Landlord in no more than four disbursements the requests for each of which shall not

 

445

 

be submitted more frequently than monthly. For each disbursement, Tenant shall submit a requisition package to Landlord with (1) an itemization of the costs being requisitioned, (2) a certificate by an officer of Tenant that all such costs are reasonable out-of-pocket costs to Tenant of performing Remedial Work and have been incurred and paid for by Tenant, that to the actual knowledge of Tenant the Remedial Work included within the requisition has been performed substantially in accordance with the Construction Documents and in accordance with the Lease, (3) appropriate back-up documentation including, without limitation, lien releases (in a form reasonably approved by Landlord) and paid invoices and bills and (4) a statement by Tenant’s chief financial officer that such officer knows of no default under the Lease on the part of Tenant nor of any event which with the giving of notice or the passage of time or both could ripen into a default under the Lease. The final requisition package shall further include a copy of all applications for and copies of all governmental permits issued in connection with the Remedial Work and the plans referred to in Section 13 of the Lease for any Alterations. Notwithstanding anything herein or in the Lease to the contrary, Landlord shall not be obligated to reimburse any costs of Remedial Work if a default under the Lease has occurred and is continuing. Landlord shall pay the reimbursement to Tenant within thirty (30) days following Landlord’s receipt of the completed package. In the event that Landlord fails to pay the reimbursement within such thirty (30) day period, Tenant may deduct the reimbursebable amount against Rent due under the Lease.

 

C.3 Performance of Remedial Work by Tenant. No Remedial Work for which reimbursement is sought shall be performed except in accordance with the Construction Documents. In connection with its approval thereof, Landlord may delete from the Construction Documents any items or aspects of Remedial Work which in Landlord’s reasonable judgment (i) would increase the cost of operating the Building or performing any other work in the Building, (ii) are incompatible with the design, quality, equipment or systems of the Building, (iii) would require unusual expense to readapt the Premises to general grocery store use or (iv) otherwise do not comply with the provisions of this Lease. Prior to commencing any Remedial Work, Tenant shall submit to Landlord certificates of insurance on the part of Tenant contractors meeting the requirements of Exhibit G paragraph 1A (4). If any such Tenant contractor or any other person ever makes a claim against any Indemnitee (as such term is defined in Section 38) in connection with any Remedial Work, then Tenant shall indemnify such Indemnitee in the manner provided in the Lease against such claim.

 

C.4 Re-allocation of Reimbursement Cap. Upon the completion of the Remedial Work up to $20,000 of the Reimbursement Cap may be allocated to increase the “Reimbursement Cap” under any other lease between Tenant and any Affiliate of Landlord (except for that certain lease for space at 9210 Atlantic Avenue, Queens (Ozone Park), New York).

 

446

 

EXHIBIT D

 

FORM OF SUBORDINATION, NON-DISTURBANCE AND 

ATTORNMENT AGREEMENT

 

KEY NO:

 

THIS AGREEMENT, made as of                                     2010, by and among                                                      , a                                       , and its successors and assigns, having an office at                    (hereinafter together with its successors and assigns called “Mortgagee”), WE APP Wilmington LLC, a Delaware limited liability company, having an office c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 (hereinafter called “Landlord”) and Pathmark Stores, Inc., a Delaware corporation having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”).

 

W I T N E S S E T H:

 

WHEREAS, Mortgagee has made a loan, or is about to make a loan to Landlord in the original principal amount of $                   evidenced by a promissory Note secured by, among other securities, a mortgage or deed of trust (hereinafter, as the same may be amended, supplemented or otherwise modified from time to time, called the “Mortgage”) covering a parcel or parcels of land owned by Landlord and described on Exhibit A annexed hereto and made a part hereof, together with the improvements now or hereafter erected thereon (said parcel or parcels of land and improvements thereon being hereinafter called the “Mortgaged Property”);

 

WHEREAS, by a certain lease heretofore entered into between Landlord and Tenant dated as of November    2010 and amended by [   ] (said lease and amendments being hereinafter collectively called the “Lease”), Landlord leased to Tenant the Mortgaged Premises together with the building now or hereafter erected on all or a portion of said premises (the Mortgaged Premises and the improvements on or to be erected thereon being thereinafter called the “Demised Premises”);

 

WHEREAS, a Memorandum of Lease dated November     2010 was recorded on November     , 2010 in the           in Book                      , Page              ;

 

WHEREAS, a copy of the Lease has been delivered to Mortgagee, the receipt of which is hereby acknowledged; and

 

WHEREAS, Mortgagee is unwilling to make said loan to Landlord unless the Lease is subordinate to the lien of the Mortgage; and

 

WHEREAS, Section 16 of the Lease provides that the Lease shall become subject and subordinate to the lien of a mortgage of the fee interest of the Demised Premises if and when a non-disturbance agreement is entered into with respect to such mortgage; and

 

WHEREAS, the parties desire to subordinate the Lease to the lien of the Mortgage, and to provide for the non-disturbance of Tenant by Mortgagee.

 

447

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

 

1.                                            Mortgagee hereby consents to and approves the Lease.

 

2.                                            Tenant covenants and agrees with Mortgagee that the Lease and any extensions, renewals, replacements or modifications thereof and Tenant’s interest in the premises under the Lease are and at all times shall subject and subordinate to the lien of the Mortgage, without regard to the order of priority of recording of the Mortgage and the Memorandum of the Lease, subject, however, to the provisions of this Agreement.

 

3.                                            Tenant certifies that the Lease is presently in full force and effect.

 

4.                                            Mortgagee agrees that so long as the Lease shall be in full force and effect and so long as Tenant is not in default (beyond any applicable notice and cure period) in the payment of fixed rent as set forth in the Lease, or in the performance of any of the terms, covenants or conditions of the Lease on Tenant’s part to be performed:

 

A.                                        Tenant shall not be named or joined as a party defendant or otherwise in any suit, action or proceeding for the foreclosure of the Mortgage or to enforce any rights under the Mortgage or the bond or note or other obligations secured thereby unless required by law to do so; and

 

B.                                          The possession by Tenant of the Demised Premises and the Tenant’s rights thereto shall not be disturbed, affected or impaired by, nor will the Lease or the term thereof be terminated or otherwise affected by (i) any suit, action or proceeding upon the Mortgage or the bond or note or other obligation secured thereby, or for the foreclosure of the Mortgage or the enforcement of any rights under the Mortgage or any other documents held by the Mortgagee, or by any judicial sale or execution or other sale of the Mortgaged Property, or by any deed given in lieu of foreclosure, or by the exercise of any other rights given to the Mortgagee by any other documents or as a matter of law, or (ii) any default under the Mortgage or the bond or note or other obligation secured thereby.

 

5.                                            Mortgagee hereby acknowledges and agrees that all trade fixtures and equipment whether owned by Tenant or any subtenant or leased by Tenant from a Landlord/Owner in the Demised Premises shall be subject to the provisions of Section 17 of the Lease.

 

6.                                            If the Mortgagee shall become the owner of the Mortgaged Property by reason of foreclosure of the Mortgage or otherwise, or if the Mortgaged Property shall be sold as a result of any action or proceeding to foreclose the Mortgage or by a deed given in lieu of foreclosure, the Lease shall continue in full force and effect, without necessity for executing any new lease, as a direct lease between Tenant, as tenant thereunder, and the then owner of the Mortgaged Property, as landlord thereunder, upon all of the same terms, covenants and provisions contained in the Lease, and in such event:

 

448

 

A.                                        Tenant shall be bound to such new owner under all of the terms, covenants and provisions of the Lease for the remainder of the term thereof (including the Renewal Periods, if Tenant elects or has elected to exercise its options to extend the term) and Tenant hereby agrees to attorn to such new owner and to recognize such new owner as landlord under the Lease; and

 

B.                                          Such new owner shall be bound to Tenant under all of the terms, covenants and provisions of the Lease for the remainder of the term thereof (including the Renewal Periods, if Tenant elects or has elected to exercise its options to extend the term) which terms, covenants and provisions such new owner hereby agrees to assume and perform; provided, however, that such new owner shall not be (i) obligated to complete any construction work required to be done by Landlord within or outside of the Demised Premises pursuant to the provisions of the Lease or to reimburse Tenant for any construction work done by Tenant; however this provision shall not relieve such new owner from any repair or maintenance obligations of Landlord expressly set forth in the Lease accruing or arising following new owner’s acquisition of fee title to the Mortgaged Property or impair any express setoff rights of Tenant expressly set forth in the Lease accruing or arising following new owner’s acquisition of fee title to the Mortgaged Property; (ii) required to make any repairs to the Mortgaged Property or to the Demised Premises or to perform any other construction or other work, including without limitation the restoration of the Demised Premises following any casualty or taking; (iii) liable for the return of security deposits or letters of credit, if any, paid or delivered by or on behalf of Tenant to Landlord, except to the extent such sums are actually received by such new owner (or any Mortgagee if such Mortgagee is not the new owner); (iv) bound by any payment of rents, additional rents or other sums which Tenant may have paid more than one (1) month in advance to any prior Landlord unless such sums are actually received by Mortgagee or if such prepayment shall have been expressly approved of in writing by such new owner (or any Mortgagee if such Mortgagee is not the new owner); (v) bound by any agreement amending, modifying or terminating the Lease made without Mortgagee’s prior written consent; (vi) bound by any assignment of the Lease or sublease of the Demised Premises, or any portion thereof, made prior to the time such new owner succeeded to Landlord’s interest other than if made pursuant to the provisions of the Lease; (vii) liable on account of any default on the part of Landlord occurring prior to such new owner’s succeeding to Landlord’s estate; or (viii) subject to any counterclaims, offsets or defenses that Tenant might have against Landlord.

 

7.                                            If Landlord shall default in the performance of the Lease Tenant shall give written notice thereof to Mortgagee and Mortgagee shall have the right, but not the obligation, to cure such default in accordance with Section 23 of the Lease (and as provided therein the Mortgagee shall be entitled to such further time to cure as may be reasonably necessary for the Mortgagee to remove any stay in bankruptcy and/or to commence and complete foreclosure proceedings or remove any cause beyond the Mortgagee’s reasonable control impairing its ability to cure or remedy, to obtain possession of the Demised Premises and thereafter to commence and diligently prosecute such cure or remedy to completion)

 

8.                                            Landlord has agreed in the Mortgage and other loan documents that the rents payable under the Lease shall be paid directly by Tenant to Mortgagee upon the occurrence of a default by Landlord under the Mortgage or any other loan document. Accordingly, after notice is given by Mortgagee to Tenant that the rents under the Lease should be paid to or at the

 

449

 

direction of Mortgagee, Tenant shall pay to Mortgagee, or in accordance with the directions of Mortgagee, all rents and other monies thereafter due and to become due under the Lease. Tenant shall have no responsibility to ascertain whether such demand by Lender is permitted under the Mortgage or any other loan document. Landlord hereby waives any right, claim or demand it may have nor or hereafter have against Tenant by reason of such payment to Mortgagee, and any such payment to Mortgagee shall discharge the obligations of Mortgagee to make such payment under the Lease.

 

9.                                            Any notices or communications given under this Agreement shall be in writing and shall be given by registered or certified mail, return receipt requested, postage prepaid, (a) if to Mortgagee at the address of Mortgagee as hereinabove set forth or at such other address as Mortgagee may designate by notice, or (b) if to Landlord at the address of Landlord as hereinabove, or at such other address as Landlord may designate by notice, or (c) if to Tenant, then one copy shall be delivered to the attention of the Senior Vice President of Real Estate of Tenant, another shall be delivered to the attention of General Counsel of Tenant, and another shall be delivered to the Director of Properties & Administration of Tenant, all at 2 Paragon Drive, Montvale, New Jersey 07645 or at such other addresses as Tenant may designate by notice. During the period of any postal strike or other interference with the mail, personal delivery shall be substituted for registered or certified mail.

 

10.                                      This Agreement shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective heirs, personal representatives, successors and assigns.

 

11.                                      This Agreement contains the entire agreement between the parties and cannot be changed, modified, waived or cancelled except by an agreement in writing executed by the party against whom enforcement of such modification, change, waiver or cancellation is sought.

 

12.                                      This Agreement and the covenants herein contained are intended to run with and bind all lands affected thereby.

 

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

 

	
WITNESS:
    	
 
    	
 
    
	
 
    	
 
    	
MORTGAGEE:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
, a
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

450

 

	
 
    	
 
    	
LANDLORD:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
WE   APP WILMINGTON LLC, a 
    
	
 
    	
 
    	
Delaware   limited liability company
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
TENANT:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
PATHMARK   STORES, INC., a 
    
	
 
    	
 
    	
Delaware   corporation
    
	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
Christopher   W. McGarry
    
	
 
    	
 
    	
Title:   
    	
Vice   President and Secretary
    

 

451

 

	
WITNESS:
    	
 
    	
 
    
	
MORTGAGEE ACKNOWLEDGMENT
    

 

 

STATE OF                      )

SS:

COUNTY OF                  )

 

ON THIS                day of                 2010, before me, the subscriber, personally appeared                 to me known, who being by me duly sworn, did depose and say that he is               of                 the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

LANDLORD ACKNOWLEDGMENT

 

COMMONWEALTH OF MASSACHUSETTS

 

Suffolk, ss.

 

On this                    day of                           2010, before me, the undersigned notary public, personally appeared                                            , proved to me through satisfactory evidence of identification, which was a [current driver’s license] [a current U.S. passport] [my personal knowledge], to be the person whose name is signed on the preceding instrument and acknowledged the foregoing instrument to be his/her free act and deed as                 of WE APP Wilmington LLC.

 

 

	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
My   Commission Expires:
    

 

452

 

TENANT ACKNOWLEDGMENT

 

STATE OF NEW JERSEY)

SS

COUNTY OF BERGEN)

 

ON THIS                               day of                  , 2010, before me, the subscriber, personally came Christopher W. McGarry, to me known, who being by me duly sworn, did depose and say that he is Vice President and Secretary of Pathmark Stores, Inc., the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

453

 

EXHIBIT A

 

LEGAL DESCRIPTION OF MORTGAGED PROPERTY

 

(Attached)

 

454

 

EXHIBIT E 

 

KEY NO:                                                    

 

MEMORANDUM OF LEASE

 

THIS MEMORANDUM OF LEASE made as of November          , 2010 by WE APP WILMINGTON LLC, a Delaware limited liability company, having an office at c/o Winstanley Enterprises, LLC, 150 Baker Avenue Extension, Suite 303 Concord, Massachusetts 01742 Attn: Adam Winstanley (hereinafter called “Landlord”), and PATHMARK STORES, INC., a Delaware corporation, having an office at 2 Paragon Drive, Montvale, New Jersey 07645 (hereinafter called “Tenant”).

 

W I T N E S S E T H:

 

1.                                           For and in consideration of the sum of TEN and no/100 Dollars ($10.00) and of other valuable considerations paid by Tenant to Landlord, the receipt and sufficiency of which are hereby acknowledged by Landlord, Tenant and Tenant hereby takes from Landlord that certain parcel of land (hereinafter called “Land”) described on Exhibit B and the buildings and other improvements now or hereafter erected on the Land together with the benefit of any and all easements, appurtenances, rights and privileges now or hereafter belonging thereto. The land is currently improved by an existing building consisting of 48,622 square feet of space (the “Building), as more particularly shown on the site plan attached hereto as Exhibit A. The Building and any buildings and improvements now or hereafter erected on the Land shall be hereinafter called “Improvements”. The Land and any Improvements now or hereafter erected thereon are hereinafter collectively called the “Demised Premises.” The Demised Premises have been leased to Tenant upon and subject to the covenants and agreements set forth in a certain agreement between Landlord and Tenant bearing even date herewith (hereinafter called the “Lease”).

 

2.                                            The Lease is in effect. The original term of the Lease shall continue to and include the date which is twenty (20) years after the day before the Commencement Date if the Commencement Date is the first day of a month, or twenty years (20) years after the last day of the month in which the Commencement Date occurs if the Commencement Date is not the first day of a month.

 

3.                                            Tenant has the right and option to extend the term of the Lease from the date upon which it would otherwise expire for ten (10) separate renewal periods of five (5) years each (each such period being known as a “Renewal Period”). Said right and option, if exercised by Tenant, shall be in accordance with the terms and conditions of Section 4 of the Lease.

 

4.                                            The Lease contains the entire agreement between the parties. All persons are hereby put on notice of the existence of the Lease and are referred to the Lease for its terms and conditions. The Lease is on file in the offices of Tenant and the Landlord as hereinabove set forth.

 

5.                                           This Memorandum of Lease is prepared, signed and acknowledged solely for recording purposes under the laws of the State of Delaware, and is in no way intended to change,

 

455

 

alter, modify, amend or in any other way affect the rights, duties and obligations of Landlord and Tenant pursuant to the Lease; it being specifically understood and agreed between the parties that each has rights, duties and obligations imposed upon it in the Lease which are not expressly contained herein but are included herein by reference.

 

6. Upon expiration of the Lease term Landlord and its successors and assigns has irrevocably been named attorney-in-fact by Tenant in the Lease to execute, deliver and record a notice of termination of this Memorandum.

 

IN WITNESS WHEREOF this Memorandum of Lease has been duly executed as of the day and year first above written.

 

	
WITNESS:
    	
 
    	
WE APP WILMINGTON LLC, a
    
	
 
    	
 
    	
Delaware   limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
PATHMARK STORES, INC., a
    
	
 
    	
 
    	
Delaware   corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   Vice President and Secretary
    
					

 

456

 

EXHIBIT A

 

DEMISED PREMISES

 

457

 

EXHIBIT B

 

LEGAL DESCRIPTION OF THE LAND

 

458

 

COMMONWEALTH OF MASSACHUSETTS

 

Suffolk, ss.

 

On this           day of November 2010, before me, the undersigned notary public, personally appeared                                                , proved to me through satisfactory evidence of identification, which was a [current driver’s license] [a current U.S. passport] [my personal knowledge], to be the person whose name is signed on the preceding instrument and acknowledged the foregoing instrument to be his/her free act and deed as                                       of WE APP Wilmington LLC.

 

 

	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
My   Commission Expires:
    

 

 

STATE OF NEW JERSEY)

SS

COUNTY OF BERGEN)

 

ON THIS           day of November, 2010, before me, the subscriber, personally came Christopher W. McGarry, to me known, who being by me duly sworn, did depose and say that he is the Vice President and Secretary of Pathmark Stores, Inc., the corporation described in and which executed the within instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by order of the Board of Directors of said corporation and that he signed his name thereto by like order.

 

IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal the day and year first above written.

 

 

	
 
    	
 
    
	
 
    	
Notary   Public
    

 

459

 

EXHIBIT F

 

UNCONDITIONAL GUARANTY

 

WHEREAS, Pathmark Stores, Inc., a Delaware corporation (“Tenant”) desires to enter into a certain lease (“Lease”) of even date concerning Demised Premises known as 3901 Lancaster Pike, Wilmington, Delaware, with WE APP Wilmington LLC, a Delaware limited liability company (“Landlord”). (Terms used herein and not otherwise defined will have the meaning given in the Lease.)

 

WHEREAS, as an inducement to entering into the Lease Landlord has required that the undersigned The Great Atlantic & Pacific Tea Company, Inc. (“Guarantor”) unconditionally guarantees the performance of all obligations of Tenant under the Lease.

 

NOW, THEREFORE, for good and valuable consideration, intending to be legally bound hereby, Guarantor agrees as follows:

 

1.             Guarantor unconditionally and absolutely guarantees to Landlord (which shall include its legal representatives, successors and assigns) the due and punctual performance of each and all of the Tenant’s obligations under or related to the Lease, including the timely payment of all sums due therein. Tenant’s obligations hereby guaranteed include, without limitation, those arising under amendments or modifications to the Lease hereafter entered into by Tenant and Landlord, all of which shall be so guaranteed even though Guarantor hereafter does not consent to or approve the same (Guarantor hereby waiving all rights of consent or approval with respect to such amendments or modifications).

 

2.             Guarantor waives presentment for payment or performance, notice of nonpayment or performance, notice of default, demand, protest or notice or acceptance of this Guaranty, any rights Guarantor may have by reason of any forbearance, modification, amendment, extension or any indulgence whatsoever that Landlord may grant or to which Landlord and the Tenant may agree with respect to the Lease, any and all notice of every kind to which Guarantor might otherwise be entitled with respect to the incurring of any further obligation or liability by Tenant to Landlord, demand for payment, the presentment of any instrument for payment, the protest or nonpayment thereof and any and all defenses whatsoever excepting only Tenant’s performance as required by the terms of the Lease. Guarantor also waives, unless and until all of the obligations of Tenant are fully paid and performed, any right to be subrogated in whole or in part to any right or claim of Landlord against Tenant and any right to require the marshalling of any assets of the Tenant, which right of subrogation or marshalling might otherwise arise from any partial payment by the Guarantor. It is expressly understood and agreed that Guarantor’s liability hereunder shall be unaffected by (i) any amendment or modification whatsoever of the provisions of the Lease, (ii) any extension of time for performance under the Lease, (iii) any delay by Landlord in exercising any right under the Lease or this Guaranty (none of which shall ever operate as a waiver of such right), or (iv) the release of Tenant or any other guarantor from performance or observance of any of the agreements or conditions contained in the Lease by operation of law or otherwise, whether made with or without notice to Guarantor, including without limitation any impairment, modification, change, release, rejection, disaffirmance, or limitation of the liability of Tenant, or any other guarantor of the Lease, of their estate in

 

460

 

bankruptcy or insolvency resulting from the operation of any present or future provision of the Federal Bankruptcy Code or other similar or insolvency statute, or from the decision of any court. Guarantor covenants that Guarantor will cause Tenant to maintain and preserve the enforceability of the Lease, as the same may hereafter be modified or amended, and will not permit it to take or to fail to take action of any kind the taking of which or the failure to take might be the basis for a claim that Guarantor has any defense to its obligation hereunder other than timely performance in full of the Lease in accordance with its terms. The joint and several liability of Guarantor hereunder shall exist irrespective of the validity or enforceability of the Lease.

 

3.             This shall be an agreement of suretyship as well as of guaranty, and Landlord, without being required to proceed first against Tenant or any other person or entity, may proceed directly against Guarantor whenever Tenant fails to make any payment due or fails to perform any obligation now or hereafter owed to Landlord without first resorting to or exhausting any other remedy and without first having recourse to the Lease; provided, however, that nothing herein contained shall prevent Landlord from suing on the Lease with or without making Guarantor a party to the suit or from exercising any other rights thereunder and if such suit, or other remedy, is availed of, only the net proceeds therefrom, after deduction of all Landlord’s Costs of Collection (defined below) shall be applied in reduction of the amount then due on this Guaranty.

 

4.             Guarantor agrees to pay to Landlord, on demand, all costs and expenses, including reasonable attorneys’ fees and litigation expenses, which Landlord may incur in the enforcement of Tenant’s obligations under the Lease or the liability of Guarantor hereunder (“Costs of Collection”). “Costs of Collection” includes, without limitation, all out of pocket expenses incurred by the Landlord’s attorneys and all costs incurred by Landlord including, without limitation, costs and expenses associated with travel on behalf of Landlord, which costs and expenses are related to or in respect of Landlord’s efforts to collect and/or to enforce any of the obligations and/or to enforce any of its rights, remedies or powers against or in respect of either or both Tenant or Guarantor (whether or not suit is instituted in connection with such efforts).

 

5.             Guarantor represents and warrants to Landlord that (i) it has either examined the Lease or has had an opportunity to examine the Lease and has waived the right to examine; (ii) that it (and the individual acting on its behalf) has the full power, authority and legal right to execute and deliver this Guaranty; (iii) that this Guaranty is a binding legal obligation and is fully enforceable against Guarantor in accordance with its terms; (iv) that there is no action or proceeding pending or, to its knowledge, threatened against Guarantor before any court or administrative agency which might result in any material adverse change in its business or condition or in its assets; (v) that neither the execution nor delivery of this Guaranty nor fulfillment of nor compliance with the terms and provisions thereof will constitute a default under or result in the creation of any lien, charge or encumbrance upon any property or assets of Guarantor under any agreement or instrument to which it is now a party or by which Guarantor may be bound; and (vi) that Guarantor is the sole owner of all the common stock of Tenant and expects to derive financial benefit from the Lease.

 

461

 

6.             This Agreement shall be binding upon Guarantor and its legal representatives, successors and assigns, and shall inure to the benefit of Landlord and its legal representatives, successors and assigns, and is irrevocable until released in writing by Landlord. Each and every right, remedy and power hereby granted to Landlord or allowed it by law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by Landlord at any time and from time to time. The validity, construction and performance of this Guaranty shall be governed by the laws of the State where the Demised Premises are located (the “State”), without regard to conflict of law principles. If any clause or provision of this Guaranty should be held illegal or invalid by any court, the invalidity of such clause or provisions shall not affect any of the remaining clauses or provisions hereof. In case any agreement or obligation contained in this Guaranty should be held to be in violation of law, then such agreement or obligation shall be deemed to be the agreement or obligation of the Guarantor, as the case may be, to the full extent permitted by law. Each and every default hereunder or under the Lease shall give rise to a separate cause of action hereunder. The obligations and liabilities of hereunder shall be joint and several with any other guarantees given to Landlord in connection with the Lease. This Guaranty may be amended only by instrument in writing executed and delivered by both Landlord and Tenant. The provisions of this Guaranty shall bind Guarantor and its respective successors and assigns, and shall inure to the benefit of Landlord and its successors and assigns. This Guaranty and all consents, notices, approvals and all other documents relating hereto may be reproduced by photographic, microfilm, microfiche or other reproduction process and the originals thereof may be destroyed; and each party agrees that any reproductions shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not reproduction was made in the regular course of business) and that any further reproduction of such reproduction shall likewise be admissible in evidence.

 

7.             Guarantor consents to and agrees that the courts of the State shall have personal jurisdiction over Guarantor for any action brought on this Guaranty including the right to grant judgment against Guarantor personally together with interest on any judgment obtained by Landlord at the interest rate set forth in the Lease for late payments (but if the same shall be unlawful for any reason, then at the highest permissible interest rate). Guarantor further agrees and consents that venue, if any, for any such action shall be as set forth in the Lease. Guarantor waives and relinquishes any and all rights to removal of any such action to any other court. Guarantor also waives trial by jury in any judicial proceeding involving any matter in any way arising out of or relating to this Guaranty or the Lease.

 

8.             Any notice, communication, request or other document or demand made under this Guaranty shall be in writing and shall be deemed given at the earlier of (i) the date received or (ii) three (3) business days after the date deposited in a United States Postal Service Depository, postage prepaid first class certified or registered mail, return receipt requested, addressed to Guarantor or Landlord, as the case may be, at the respective addresses set forth opposite their names below:

 

462

 

Landlord:

 

WE APP Wilmington LLC

c/o Winstanley Enterprises, LLC

150 Baker Avenue Extension, Suite 303 

Concord, MA 01742

Attn. Adam Winstanley

 

 

with a copy similarly sent to:

 

DLA Piper LLP (US)

33 Arch Street, 26th Floor

Boston, MA 02110

Attention: Daniel A. Taylor, Esq. or Primo Fontana, Esq.

 

Guarantor:

 

The Great Atlantic & Pacific Tea Company, Inc. 

2 Paragon Drive

Montvale, New Jersey 07645

Attn: Senior Vice President of Real Estate

 

 

with a copy similarly sent to

 

The Great Atlantic & Pacific Tea Company, Inc. 

2 Paragon Drive

Montvale, New Jersey 07645

Attn: General Counsel

 

Either party may change an address to which any such notice, communication, request or other document or demand is to be delivered to it or delivery of copies thereof by furnishing written notice of such change to the other party. Each party shall, when giving notices, send at least one (1) copy by Federal Express, U.S. Express Mail, or other overnight delivery service, to the addressee.

 

IN WITNESS WHEREOF, Guarantor has executed and sealed this Guaranty the day of November         , 2010.

 

	
WITNESS:
    	
 
    	
THE GREAT ATLANTIC & PACIFIC
    
	
 
    	
 
    	
TEA COMPANY, INC., a Maryland corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
 
    	
Name:   Christopher W. McGarry 
    
	
 
    	
 
    	
 
    	
Title:   Senior Vice President
    

 

463

 

EXHIBIT G

 

INSURANCE

 

This Exhibit G shall be incorporated into the Lease, and where terms of this Exhibit conflict with these terms within the Lease, the terms of this Exhibit shall prevail and govern the Lease.

 

1.               INSURANCE.

 

A. Coverage. Tenant shall purchase and maintain insurance during the entire Term of the Lease and any period Tenant (or any party claiming by, through or under Tenant) occupies any portion of the Demised Premises, for the benefit of the Tenant and Landlord (as their interest may appear) with terms and coverages reasonably satisfactory to Landlord, and with insurers having a minimum A.M. Best rating of at least A/X, and with such increases in limits as Landlord may from time to time reasonably request, but initially Tenant shall maintain the following coverages in the following amounts:

 

(1)             Commercial General Liability Insurance naming Landlord, Landlord’s management, leasing and development agents and Landlord’s mortgagee(s) from time to time as additional insureds, with coverage for premises/operations, personal and advertising injury, products/completed operations and contractual liability with combined single limits of liability of not less than $1,000,000 for bodily injury and property damage per occurrence and not less than 2,000,000 in the aggregate and excess liability insurance with a limit not less than $20,000,000 per occurrence and aggregate. Notwithstanding anything to the contrary contained herein, Tenant’s obligation to maintain general liability insurance may be satisfied through a program of self-insurance whereby Tenant self-insures the first $3,000,000.00 per claim as long as the program is supported by an A-rated insurance company and its third party administrator.

 

(2)             Property insurance covering property damage and business interruption for the entire Demised Premises. Covered property shall include the Building, boilers and machinery, all tenant improvements, office furniture, trade fixtures, office equipment, merchandise and all other items Tenant’s property on the Demised Premises. Such insurance shall name Landlord and Fee Mortgagee(s) from time to time as additional loss payees as their interests may appear. Such insurance shall be written on an “all risk” of physical loss or damage basis including but not limited to the perils of fire, extended coverage, windstorm, vandalism, malicious mischief, terrorism, sprinkler leakage, flood, windstorm and earthquake, for the full replacement cost value of the covered items and other endorsements as Landlord shall reasonably request from time to time and in amounts that meet any co insurance clause of the policies of insurance with a deductible amount not to exceed $750,000. Such insurance shall include rent continuation coverage of no less than twelve (12) months. Such policy or policies shall provide that the proceeds of any loss shall be payable to Landlord and Tenant and to the holder (as its interest may appear) of any Fee Mortgage to which this Lease is subordinate so long as such holder and future holders of such Fee Mortgage are obligated to apply proceeds of insurance in the manner provided for in this Lease.

 

464

 

(3)             Workers’ Compensation Insurance and Employers Liability Insurance with statutory limits and automobile liability insurance (coverage must include owned, leased, hired and non owned vehicles) with a limit of at least $1,000,000 Combined Single Limit-Bodily Injury & Property Damage.

 

(4)             Tenant shall purchase or shall cause each Tenant contractor performing work on the Demised Premises to carry insurance protecting against claims set forth below which may arise out of or result from the contractor’s operations on the Premises and naming Landlord, Landlord’s management, leasing and development agents as additional insureds for Premises Operations and Completed Operations. Waiver of Subrogation to apply under all policies.

 

(1)           claims under workers’ or workmen’s compensation, disability benefit and other similar employee benefit acts—in amounts as required by law;

 

(2)           claims for damages because of bodily injury, occupational sickness or disease, or death of his employees or any other person and other personal injury and motor vehicle liability — Public Liability - Single Limit (Combined) Per Occurrence. Bodily Injury/Property Damage $1,000,000 w/ $2,000,000 General/Completed Operations Aggregate. Automobile Liability - Single Limit (Combined) Per Occurrence Bodily Injury and Property Damage $1,000,000. Excess Liability Umbrella covering all above items $5,000,000 per Occurrence; and

 

(3)           claims for damages, other than the work of the contractor itself, because of injury to or destruction of tangible property, including loss of use resulting therefrom — $1,000,000 per occurrence.

 

Tenant shall, prior to the commencement of the Term and on each anniversary of the renewal date thereof, furnish to Landlord certificate(s) evidencing such coverage, which certificate(s) shall state that such insurance coverage may not be canceled without at least thirty (30) days’ prior written notice to Landlord and Tenant. The insurance maintained by Tenant shall be deemed to be primary insurance and any insurance maintained by Landlord (acknowledging that Landlord has no obligation to maintain any insurance) shall be deemed secondary thereto. On all liability insurance Landlord, (and if requested, Landlord’s Fee Mortgagees and Landlord’s management, leasing and development agents shall be named as additional insureds with such coverage to be primary. Tenant agrees from time to time to deliver true and complete copies of all policies to Landlord upon request.

 

465

 

EXHIBIT H

 

PERCENTAGE RENT

 

If any Percentage Rent Event occurs as described in Section 5(E) of the Lease, then the following provisions shall immediately take effect, shall become a part of the Lease for the remainder of the Term and Tenant shall, in addition to all other rent provided for in the Lease, also pay Percentage Rent to Landlord in accordance with the following:

 

Section 5(E) Percentage Rent

 

5(E)(1) Percentage Rent - General Covenant. As used in this Section 5(E) the following terms have these meanings:

 

“Percentage Rent Rate” means one percent (1%) of Excess Gross Sales.

“Excess Gross Sales” means Gross Sales above the Gross Sales Benchmark. 

“Gross Sales” has the meaning given below in Section 5 (E)(2).

“Gross Sales Benchmark” means $32,500,000.00, which amount is increased by five (5%) every five years at the same time Fixed Annual Rent increases under Section 5 (A) of the Lease.

 

Tenant covenants and agrees to pay to Landlord, as Additional Rent, the amount, if any, of Tenant’s Excess Gross Sales during any calendar month or part thereof during the Term, multiplied by the Percentage Rent Rate (“Percentage Rent”). (For any period less than a full calendar month the Excess Gross Sales and the Gross Sales Benchmark shall be prorated.) Such amounts payable hereunder are referred to as “Percentage Rent” and are also included in the term “Additional Rent.”

 

5 (E)(2) Gross Sales - Definition. “Gross Sales” means the total amount in dollars of the actual price charged (including finance charges), by Tenant and any sublease, assignee, licensee or other person conducting sales from or with respect to the Demised Premises, whether for cash or on credit, for all sales of merchandise, food, beverages, services, gift or merchandise certificates, and all other receipts of business conducted at, in, on, about or from the Premises, including, but not limited to, all mail or telephone orders, all internet sales, and all catalog sales and all home delivery sales received or filled at, from or with respect to the Premises, and including all deposits not refunded to purchasers, all orders taken in, from or with respect to the Premises, whether or not such orders are filled elsewhere, receipts of sales through any vending machine or other coin or token operated device or otherwise at, in, on, about, from or with respect to the Premises, and sales and receipts occurring or arising as a result of solicitation off the Premises conducted by personnel operating from or reporting to, or under the supervision of any employee of Tenant located at the Demised Premises. Gross Sales shall not, however, include any separately stated sums collected and remitted for any retail sales tax or retail excise tax imposed by any duly constituted governmental authority, nor shall they include any exchange of goods or merchandise between the stores of Tenant where such exchange of goods or merchandise is made solely for the convenient operation of the business of Tenant and neither for the purpose of consummating a sale which has theretofore been made at, in, on, about or from the Premises nor for the purpose of depriving Landlord of the benefits of a sale which otherwise

 

466

 

would be made at, in, on, about, from or with respect to the Premises, nor the amount of any cash or credit refund made upon any sale where the merchandise sold, or some part thereof, is thereafter returned by the purchaser and accepted by Tenant, nor sales of fixtures which are not a part of Tenant’s stock in trade. Each sale upon installment, credit or layaway shall be treated as a sale for the full price in the month during which such sale shall be made, irrespective of the time when Tenant shall receive payments from its customers, and no deduction shall be allowed for uncollectible payment by customer or uncollected or uncollectible credit accounts.

 

5(E)(3) Records and Reporting of Gross Sales. Tenant shall utilize, and cause to be utilized, cash registers equipped with consecutive serialized tapes and/or such other devices for recording sales as are normally used in Tenant’s type of business to record all sales and Tenant shall keep for at least 36 months after expiration of each calendar year or part thereof during the Term, full, true and accurate books of account and records (“books”) conforming to generally accepted accounting principles showing all Gross Sales transacted at, in, from and upon the Premises for such calendar year or part thereof, including all tax reports, dated cash register tapes, sales slips, sales checks, sales books, bank deposit records and other supporting data. Such books shall be kept on the Premises during the Term. Within fifteen (15) days after the end of each calendar month or portion thereof included in the Term, Tenant shall furnish to Landlord a statement of Gross Sales transacted during such previous month or portion thereof; and on or before each February 1 included in the Term and within thirty (30) days after the end of the Term Tenant shall furnish to Landlord a statement (the “Annual Statement”) certified by an independent public accountant of Gross Sales itemized on a calendar month by calendar month basis transacted during the preceding calendar year or part thereof. In the event of Tenant’s failure to furnish any statement of Gross Sales required hereunder, in addition to all other remedies afforded it under this Lease, Landlord shall be entitled to have an accountant of Landlord’s selection conduct an audit of Tenant’s books for such period or periods for which Tenant has failed to furnish such statements. Such audit shall be at Tenant’s expense and Tenant shall promptly reimburse Landlord for the costs of such audit. All such costs shall be deemed additional charges. Notwithstanding the foregoing, Landlord shall have the right from time to time by its accountants or representatives to audit all statements of Gross Sales and in connection with such audits to examine all of Tenant’s books (including all supporting data and any other records from which Gross Sales may be tested or determined) of Gross Sales; and Tenant shall make all books readily available for such examination. Failure of Tenant to make all books readily available for such examination shall be deemed a default under this Lease; and in addition to all other remedies afforded it under this Lease, Tenant shall promptly reimburse Landlord for the costs of such audit. All such costs shall be deemed additional charges. If any such audit discloses that the actual Gross Sales for any month transacted by Tenant exceed those reported by more than two percent, Tenant shall forthwith pay to Landlord the cost of such audit and examination together with any additional Percentage Rent payable to Landlord. Any information obtained by Landlord pursuant to the provisions of this Section shall be treated as confidential, except in any litigation or arbitration proceedings between the parties, and, except further, that Landlord may disclose such information to existing Lenders and to prospective buyers and lenders.

 

5 (E)(4) Payment. On or before the 15th day after the expiration of each full or partial calendar month included in the Term, Tenant shall pay all Percentage Rent due for such prior

 

467

 

month to Landlord without demand, provided that if such amount exceeds the Percentage Rent that would be payable with respect to such month if Percentage Rent were calculated on the basis of Gross Sales for all months elapsed in the then current calendar year, Tenant shall not be required to pay any amount on account of such month unless and until such amount shall later be payable as part of the annual adjustment. Upon receipt by Landlord of each Annual Statement of Gross Sales there shall be an adjustment between Landlord and Tenant to the end that Landlord shall receive the exact amount of Percentage Rent due hereunder. Any overpayments by Tenant hereunder shall be credited against the next payments due under this Section. Any underpayments by Tenant shall be immediately due and payable. With respect to the calendar year in which the Term ends, the adjustments shall be prorated for the portion of the calendar year included in the Term.

 

468

 

EXHIBIT I

 

LOCAL LAW ADDENDUM

 

(Attached)

 

469

 

Lease Addendum (DE)

 

This Lease Addendum (“Addendum”) is supplemental to and made a part of that certain Lease dated as of November     , 2010 (the “Lease”) by and between WE APP Wilmington LLC (“Landlord”) and Pathmark Stores, Inc. (“Tenant”). Capitalized terms used in this Addendum without definition shall have the meanings set forth in the Lease. This Addendum is to be construed as supplemental to, and part of, the Lease. In the event of any inconsistency between the Lease and this Addendum, the terms and provisions of this Addendum shall prevail.

 

Notwithstanding the terms and conditions contained in the Lease, and to the limited extent hereof, the parties agree as follows:

 

1.               Notwithstanding any provision contained in Section 7(G) of the Lease to the contrary, the term “Taxes” as it is used in the Lease shall include, without limitation, any and all taxes and license fees required to be paid by Landlord under 30 Del. C. § 2301(a)(6) and 30 Del. C. § 2301(d).

 

2.                In addition to all other remedies of Landlord provided in the Lease, Landlord may maintain an action for summary possession under 25 Del. C. § 5702 for any default of Tenant as provided in Section 25 of the Lease or for any other breach by Tenant of the terms, covenants and conditions contained in the Lease, including, without limitation, the holding over in possession of Tenant after the Expiration Date or earlier termination of the Lease.

 

3.               Notwithstanding any provision contained in Section 22 of the Lease to the contrary, Tenant’s holding over in possession of the Demised Premises after the Expiration Date or earlier termination of the Lease, including, without limitation, the collection of rent by Landlord during the period of such holding over, shall in no way constitute Landlord’s permission to Tenant to hold over in possession of the Demised Premises after the Expiration Date or earlier termination of the Lease.

 

470

 

EXHIBIT J

 

Confidentiality Agreement

 

(Attached)

 

471

 

CONFIDENTIALITY AGREEMENT

 

THIS CONFIDENTIALITY AGREEMENT (this “Agreement”) is entered into as of                                   , 2010 (the “Effective Date”) by and between [TENANT], a                              , having an address at                                           (“Company”) and                              , a                              , having an address at                                   (“Disclosee”).

 

In connection with Disclosee’s interest in obtaining information concerning the business of Company, Company is furnishing or has furnished Disclosee with certain written information concerning Company’s gross sales that is either non-public, confidential or proprietary in nature. This information furnished to Disclosee or its affiliates, agents, representatives or employees (“Representatives”), together with analyses, compilations, forecasts, studies or other documents prepared by Disclosee or its Representatives that contain or otherwise reflect such information is hereinafter referred to as the “Information.” In consideration of Company furnishing Disclosee with the Information, Disclosee agrees that:

 

1.             The Information is Company’s property and will be kept confidential and shall not, without Company’s prior written consent, be disclosed by Disclosee or Representatives in any manner whatsoever, in whole or in part, and shall not be used by Disclosee or its Representatives in any manner to compete with the business of Company. Moreover, Disclosee may reveal the Information only to its Representatives who need to know the Information, are informed by Disclosee of the confidential nature of the Information and who shall agree to act in accordance with the terms and conditions of this Agreement. Disclosee shall be responsible for any breach of this Agreement by its Representatives.

 

2.             The term Information shall not include such portions of the Information which (i) are or become generally available to the public other than as a result of a disclosure by Disclosee or its Representatives, or (ii) become available to Disclosee on a non-confidential basis from a source (other than Company or its Representatives) that is not prohibited from disclosing such Information to Disclosee by a legal, contractual or fiduciary obligation to Company; or (iii) must be disclosed in order to comply with any applicable law, order, regulation or ruling; (iv) is already known to Disclosee or its Representatives or is already in its or their possession prior to disclosure by Company hereunder, or (v) is independently developed by Disclosee or its Representatives without reference to the Information.

 

3.             In the event that Disclosee or anyone to whom Disclosee transmits the Information pursuant to this Agreement becomes legally compelled to disclose any of the Information, Disclosee will provide Company with prompt notice so that Company may seek a protective order or other appropriate remedy and/or waive compliance with the provisions of this Agreement. In the event that such protective order or other remedy is not obtained, or that Company waives compliance with the provisions of this Agreement, Disclosee will furnish only that portion of the Information that Disclosee is legally required and will exercise its best efforts to obtain reliable assurance that confidential treatment will be accorded the Information.

 

4.             Disclosee acknowledges that remedies at law may be inadequate or protect against breach of this Agreement, and Disclosee hereby in advance agrees that Company may seek injunctive relief without proof of actual damages. This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey, without regard to conflict of law principles. The exclusive jurisdiction for any disputes concerning this Agreement shall be the Superior Court of New Jersey,

 

472

 

Bergen County, and the parties hereby submit to such jurisdiction and waive all defenses relating to jurisdiction, venue and forum non convenience.

 

5.             Disclosee hereby defends, indemnifies and holds harmless Company and its Representatives and their respective successors and assigns against and from any loss, liability or expense, including attorney’s fees, arising out of any uncured breach by Disclosee or by its Representatives of any of the terms of this Agreement

 

6.             This Agreement may be executed in counterparts, each of which shall be deemed to be an original, and all of which shall constitute the same Agreement. A facsimile, email, pdf or electronic signature shall be deemed an original signature.

 

[SIGNATURE PAGE FOLLOWS]

 

473

 

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date.

 

 

	
 
    	
COMPANY:
    
	
 
    	
 
    
	
 
    	
[TENANT], a
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
DISCLOSEE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
, a                               
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

474

 

EXHIBIT C-1

 

RENT ROLL FOR SHOPPING CENTER PROPERTY

 

RENT ROLL FOR SHOPPING CENTER PROPERTY

 

	
LEASE ENTITY / TENANT NAME
    	
 
    	
MONTHLY RENT
    	
 
    	
ANNUAL RENT
    	
 
    	
START
    	
 
    	
END
    	
 
    	
SIZE - S.F.
    	
 
    	
RENT/ S.F.
    	
 
    	
SECURITY
   DEPOSIT
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
*Aj PET DISTRIBUTORS
    	
 
    	
$8,002.13
    	
 
    	
$96,025.56
    	
 
    	
4/1/2005
    	
 
    	
3/31/2008
    	
 
    	
2,480
    	
 
    	
$38.72
    	
 
    	
 
    	
 
    
	
*Tenant   is M-to-M
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
ATLANTIC   RESTAURANT (BURGER KING)
    	
 
    	
$10,416.67
    	
 
    	
$125,000.04
    	
 
    	
5/1/2006
    	
 
    	
4/30/2011
    	
 
    	
2,996
    	
 
    	
$41.72
    	
 
    	
$5,000.00
    	
 
    
	
 
    	
STEP
    	
 
    	
$12,083.33
    	
 
    	
$144,999.96
    	
 
    	
5/1/2011
    	
 
    	
4/30/2016
    	
 
    	
2,996
    	
 
    	
$48.40
    	
 
    	
 
    	
 
    
	
 
    	
STEP
    	
 
    	
$14,166.67
    	
 
    	
$170,000.04
    	
 
    	
5/1/2016
    	
 
    	
4/30/2020
    	
 
    	
2,996
    	
 
    	
$56.74
    	
 
    	
 
    	
 
    
	
 
    	
STEP
    	
 
    	
$15,833.33
    	
 
    	
$189,999.96
    	
 
    	
5/1/2020
    	
 
    	
4/30/2024
    	
 
    	
2,996
    	
 
    	
$63.42
    	
 
    	
 
    	
 
    
	
 
    	
STEP
    	
 
    	
$17,083.33
    	
 
    	
$204,999.96
    	
 
    	
5/1/2024
    	
 
    	
4/30/2026
    	
 
    	
2,996
    	
 
    	
$68.42
    	
 
    	
 
    	
 
    
	
 
    	
%   Rent: 6% over 5% break point
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
COACH   NAILS & SKIN CARE
    	
 
    	
$1,975.00
    	
 
    	
$23,700.00
    	
 
    	
1   1/1/2006
    	
 
    	
10/31/2011
    	
 
    	
600
    	
 
    	
$39.50
    	
 
    	
$5,000.00
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
EYEGLASS   SERVICE INDUSTRY
    	
 
    	
$5,370.56
    	
 
    	
$64,446.72
    	
 
    	
1   1/1/2008
    	
 
    	
10/31/2011
    	
 
    	
1,323
    	
 
    	
$48.71
    	
 
    	
$10,425.38
    	
 
    
	
 
    	
STEP
    	
 
    	
$5,639.09
    	
 
    	
$67,669.08
    	
 
    	
11/1/2011
    	
 
    	
10/31/2014
    	
 
    	
1,323
    	
 
    	
$51.15
    	
 
    	
 
    	
 
    
	
 
    	
STEP
    	
 
    	
$5,751.87
    	
 
    	
$69,022.44
    	
 
    	
11/1/2014
    	
 
    	
10/31/2015
    	
 
    	
1,323
    	
 
    	
$52.17
    	
 
    	
 
    	
 
    
	
 
    	
OPTION
    	
 
    	
$5,866.91
    	
 
    	
$70,402.92
    	
 
    	
11/1/2015
    	
 
    	
10/31/2016
    	
 
    	
1,323
    	
 
    	
$53.21
    	
 
    	
 
    	
 
    
	
 
    	
STEP
    	
 
    	
$5,984.25
    	
 
    	
$71,811.00
    	
 
    	
11/1/2016
    	
 
    	
10/31/2017
    	
 
    	
1,323
    	
 
    	
$54.28
    	
 
    	
 
    	
 
    
	
 
    	
STEP
    	
 
    	
$6,163.78
    	
 
    	
$73,965.36
    	
 
    	
11/1/2017
    	
 
    	
10/31/2018
    	
 
    	
1,323
    	
 
    	
$55.91
    	
 
    	
 
    	
 
    
	
 
    	
STEP
    	
 
    	
$6,348.69
    	
 
    	
$76,184.28
    	
 
    	
11/1/2018
    	
 
    	
10/31/2019
    	
 
    	
1,323
    	
 
    	
$57.58
    	
 
    	
 
    	
 
    
	
 
    	
STEP
    	
 
    	
$6,539.15
    	
 
    	
$78,469.80
    	
 
    	
11/1/2019
    	
 
    	
10/31/2020
    	
 
    	
1,323
    	
 
    	
$59.31
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
FASHION   BUG
    	
 
    	
$16,893.33
    	
 
    	
$202,720.00
    	
 
    	
11/01/2010   
    	
 
    	
10/31/2015
    	
 
    	
5,068
    	
 
    	
$40.00
    	
 
    	
 
    	
 
    
	
 
    	
%   rent of 4% over $5,068,000
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
GAMESTOP
    	
 
    	
$5,685.63
    	
 
    	
$68,227.56
    	
 
    	
8/1/2008
    	
 
    	
7/31/2013
    	
 
    	
2,481
    	
 
    	
$27.50
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
OZONE   PARK WINES & LIQUORS
    	
 
    	
$4,198.06
    	
 
    	
$50,376.72
    	
 
    	
11/1/2007   
    	
 
    	
10/31/2012
    	
 
    	
1,204
    	
 
    	
$41.84
    	
 
    	
$7,800.00
    	
 
    
	
 
    	
STEP
    	
 
    	
$4,827.77
    	
 
    	
$57,933.24
    	
 
    	
11/1/2012   
    	
 
    	
10/31/2017
    	
 
    	
1,204
    	
 
    	
$48.12
    	
 
    	
 
    	
 
    

 

475

 

Rent and CAM Prorations

 

	
 
    	
 
    	
 
    	
Rent
    	
 
    	
Cam
    	
 
    	
Tax
    	
 
    	
Total
    	
 
    	
Nov 1 - 3
    	
 
    	
Nov 4 - 30
    	
 
    	
 
    	
 
    	
Open Bal
   as of Nov.3
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
072-6626 
    	
All Pet Distributors, Inc.
    	
 
    	
$8,002.13
    	
 
    	
$423.75
    	
 
    	
$1,299.06
    	
 
    	
$9,724.94
    	
 
    	
$972.49
    	
 
    	
$8,752.45
    	
 
    	
A
    	
 
    	
$9,724.94
    	
 
    
	
 
    	
Atlantic   Restaurant Assoc., Inc.
    	
 
    	
$10,416.67
    	
 
    	
$511.29
    	
 
    	
$1,567.12
    	
 
    	
$12,495.08
    	
 
    	
$1,249.51
    	
 
    	
$11,245.57
    	
 
    	
B
    	
 
    	
$13,024.49
    	
 
    
	
 
    	
Coach   Nails & Skin Care, Inc.
    	
 
    	
$1,975.00
    	
 
    	
$182.57
    	
 
    	
$313.42
    	
 
    	
$2,470.99
    	
 
    	
$247.10
    	
 
    	
$2,223.89
    	
 
    	
A
    	
 
    	
$2,470.99
    	
 
    
	
 
    	
Eyeglass   Service Industries
    	
 
    	
$5,370.56
    	
 
    	
$226.01
    	
 
    	
$692.83
    	
 
    	
$6,289.40
    	
 
    	
$628.94
    	
 
    	
$5,660.46
    	
 
    	
A
    	
 
    	
$6,289.40
    	
 
    
	
 
    	
Fashion   Bug of Ozone Park, Inc.
    	
 
    	
$16,893.33
    	
 
    	
$847.55
    	
 
    	
$2,598.12
    	
 
    	
$20,339.00
    	
 
    	
$2,033.90
    	
 
    	
$18,305.10
    	
 
    	
A
    	
 
    	
$20,339.00
    	
 
    
	
 
    	
Gamestop, Inc.
    	
 
    	
$5,685.63
    	
 
    	
$423.77
    	
 
    	
$1,299.06
    	
 
    	
$7,408.46
    	
 
    	
$740.85
    	
 
    	
$6,667.61
    	
 
    	
C
    	
 
    	
$46,586.10
    	
 
    
	
 
    	
Ozone   Park Wines & Liquors
    	
 
    	
$4,198.06
    	
 
    	
$205.81
    	
 
    	
$630.97
    	
 
    	
$5,034.84
    	
 
    	
$503.48
    	
 
    	
$4,531.36
    	
 
    	
D
    	
 
    	
$10,273.52
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
A
    	
Representing   Nov. 2010 rent, cam and tax.
    	
 
    	
 
    	
 
    	
 
    	
C
    	
Nov. 2010 rent, cam & tax
    	
 
    	
$7,408.46
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2009   Cam Adj.
    	
 
    	
$419.03
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
B
    	
Nov. 2010   rent, cam & tax
    	
 
    	
$12,495.08
    	
 
    	
 
    	
 
    	
Rent   arrears from June-Oct. 2010
    	
 
    	
$38,758.61
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
2009   Cam Adj.
    	
 
    	
$505.35
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$46,586.10
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
Oct. 2010   cam
    	
 
    	
$24.06
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
$13,024.49
    	
 
    	
 
    	
D
    	
Oct. 2010   rent, cam & tax
    	
 
    	
$5,034.84
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Nov. 2010   rent, cam & tax
    	
 
    	
$5,034.84
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
2009   Cam Adj.
    	
 
    	
$203.84
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
$10,273.52
    	
 
    	
 
    	
 
    	
 
    	
 
    
																					

 

476

 

EXHIBIT C-2

 

GROUND LEASES

 

1.   That certain Lease between Commonwealth Trust Co. (Lessor) and 909 Group, L.P. (Lessee) dated as of September 8, 1977, as amended or otherwise modified by the documents listed below:

 

(a)           Amendment of Lease dated February 28, 1979

 

(b)           Amendment of Lease dated December 11, 1979

 

(c)           Assignment of Lease date November 29, 1994

 

(d)           Assignment of Lease dated June 11, 1980

 

(e)           Renewal Notice [9/8/97 — 9/7/02] dated March 3, 1997

 

(f)            Renewal Notice [9/8/02 — 9/7/07] dated January 31, 2002

 

(g)           Notice [Transfer of Ownership] dated August 9, 2007

 

(h)           Notice [Transfer of Ownership] dated February 6, 2009

 

(i)            Assignment and Assumption of Lease dated September 3, 2009

 

2.   That certain Lease between 7 Horizon Corp. (Landlord) and Pathmark Stores, Inc. formerly known as Supermarkets General Corporation (Tenant) dated as of August 7, 1987, as amended or otherwise modified by the documents listed below:

 

(a)           Declaration of Easement dated August 7, 1987

 

(b)           Letter Agreement dated March 28, 1990

 

(c)           Assignment of Lessor’s Interest in Lease date March 29, 1990

 

(e)           Renewal Notice [6/1/8 — 5/31/13] dated July 25, 2007

 

(f)            First Amendment to Lease dated September 10, 2010

 

477

 

EXHIBIT C-3

 

SURVEYS

 

The Great Atlantic & Pacific Tea Company, Inc. 

Sixty Ninth Street

Upper Darby Township, Delaware County 

Commonwealth of Pennsylvania

Dated: 9/1/10, Revised 10/4/10

by Control Point Associates, Inc.

 

The Great Atlantic & Pacific Tea Company, Inc. 

Gloucester Pike & White Horse Pike

Borough of Lawnside

Camden County, State of New Jersey

Dated: 11/20/07, Revised 10/4/10

by Control Point Associates, Inc.

 

The Great Atlantic & Pacific Tea Company, Inc. 

4055 Merrick Road

Seaford, Town of Hempstead, Nassau County 

State of New York

Dated: 9/8/10, Revised 10/5/10

by Control Point Associates, Inc.

 

The Great Atlantic & Pacific Tea Company, Inc. 

1764 Grand Avenue

Lots 580, 592, 593, 594, 595, 597, 598 & 600 

Baldwin, Town of Hempstead, Nassau County 

State of New York

Dated: 9/8/10, Revised 10/29/10

by Control Point Associates, Inc.

 

The Great Atlantic & Pacific Tea Company, Inc. 

92-10 Atlantic Avenue

Ozone Park, Borough and County of Queens 

City and State of New York

Dated: 12/6/07, Revised 11/4/2010

by Control Point Associates, Inc.

 

The Great Atlantic & Pacific Tea Company, Inc. 

3901 Lancaster Pike

Christiana Hundred Township, New Castle County 

State of Delaware

Dated: 9/1/10; Revised 10/7/10

by Control Point Associates, Inc.

 

478

 

EXHIBIT C-4

 

TITLE CONDITIONS

 

I.              Standard Requirements

 

1              Title Affidavits in a form reasonably acceptable to Title Company

 

2              Gap Indemnity

 

3              Updated rent rolls, as required

 

II.            Authority Requirements

 

1              For the entities on the attached Schedule A or their successor entities, as the case may be, the following authority documents:

 

a.             a copy of the Certificate of Formation (or equivalent) from the jurisdiction of formation;

 

b.             a current Certificate of Good Standing from the jurisdiction of formation;

 

c.             if state of formation is different than where the property is located, a current Certificate of Registration (or equivalent) from the state where the property is located, evidencing authority to conduct business in that jurisdiction (foreign entity only);

 

d.             the Operating Agreement (for a Limited Liability Company (“LLC”)) or Partnership Agreement (for a Limited Partnership (“LP”)) or Articles of Organization (for a Corporation), and any and all amendments thereto;

 

e.             a Resolution and Incumbency Certificate authorizing the transaction which is the subject of the applicable commitment and identifying and directing the necessary persons to execute and deliver the documents necessary to consummate the transaction.

 

2              For the entities on the attached Schedule B, the following authority documents:

 

a.             a copy of the Certificate of Formation (or equivalent) from the jurisdiction of formation;

 

b.             a current Certificate of Good Standing from the jurisdiction of formation;

 

c.             the Operating Agreement, Partnership Agreement or Articles of Organization, as applicable, and any and all amendments thereto;

 

479

 

d.                                      Resolution and Incumbency Certificate authorizing the transaction which is the subject of the applicable commitment and identifying and directing the necessary persons to make, execute and deliver the documents necessary to consummate the transaction

 

III.           Discharge of Existing Financing — Funds and/or documentation sufficient to obtain discharges for the financing documents listed on Schedule C attached hereto.

 

IV.           Termination of Affiliate Ground Leases — Termination of the following Pathmark/A&P affiliate ground leases, as well as documentation sufficient to terminate any recorded notice or memorandum of lease related thereto:

 

1                                          421 South 69th Blvd, Upper Darby, PA — Lease between Upper Darby Stuart, Inc., a Delaware corporation and Pathmark Stores, Inc., a Delaware corporation, and Memorandum of Lease recorded in Volume 1787 Page 71

 

2                                          130 White Horse Pike, Lawnside, NJ — Lease between Plainbridge, Inc. and Pathmark Stores, Inc. recorded in Deed Book 5114, Page 746.

 

3                                          4055 Merrick Road, Seaford, NY — Lease between Delaware Stuart, Inc., as Lessor and Supermarkets General Corporation, as Lessee, dated as of June 1, 1968, as evidenced by a memorandum of lease between same parties dated June 1, 1968, recorded June 14, 1968 in Liber 7838, cp 109.

 

4                                          1764 Grand Avenue, Baldwin, NY — Lease between Delaware Stuart, Inc., as Landlord and Supermarkets General Corporation as Tenant dated as of October 1, 1966, as evidenced by a memorandum of lease dated October 13, 1966 between the same parties recorded October 19, 1966 in Liber 7590, cp 56.

 

5                                          92-10 Atlantic Avenue, Queens, NY — Unrecorded Lease between Plainbridge LLC, as successor by conversion from Plainbridge Inc., as Landlord and Pathmark Stores, Inc., as Tenant, as referred to in a mortgage by Plainbridge, LLC to Bank of America, N.A. as collateral agent for the secured parties, dated 12/27/2007 recorded 05/14/2008 as CRFN 2008000193420.

 

6                                          3901 Lancaster Pike, Wilmington, DE — Lease between Lancaster Pike Stuart, Inc., as Landlord, and Pathmark Stores, Inc., as Tenant, as evidenced by Memorandum of Lease dated September 21, 1998 and recorded in Book 2528, Page 158.

 

V.            Property- and State-Specific Requirements

 

1                                          421 South 69th Blvd, Upper Darby, PA

 

a.                                       Deed of Correction from Upper Darby Stuart, Inc. to Upper Darby Stuart, LLC as referenced as Exception No. 22 in Schedule B, Section 1.

 

2                                          130 White Horse Pike, Lawnside, NJ — N/A

 

480

 

3                                          4055 Merrick Road, Seaford, NY

 

a.                                       Statement in an affidavit sufficient to remove Exceptions No. 9 and 22 of Schedule B.

 

4                                          1764 Grand Avenue, Baldwin, NY

 

a.                                       Statement in an affidavit sufficient to remove Exception No. 8 from Schedule B.

 

b.                                      Proof of payment of Franchise Tax and/or license fees on Plainbridge, Inc. from date of incorporation to date of closing.

 

5                                          92-10 Atlantic Avenue, Queens, NY

 

a.                                       Pathmark Stores, Inc., (formerly known as Supermarkets General Corporation) must join in the conveyance documents in order to remove Exception No. 14 from Schedule B.

 

b.                                      Ground Lease estoppel from 7 Horizon Corp. (Exception No. 19, Schedule B)

 

c.                                       Indemnity Agreement sufficient to remove Exception No. 24 from Schedule B

 

d.                                      Statement in an affidavit sufficient to remove Exception No. 34 from Schedule B

 

6                                          3901 Lancaster Pike, Wilmington, DE

 

a.                                       Statements in an affidavit sufficient to remove the following exceptions:

 

Judgment between Luraleen Lutz (Plaintiff) vs. Lancaster Pike Stuart, LLC and Pathmark Stores, Inc. recorded October 30, 2007 in Judgment Record S, Volume 24, Page 171

 

Judgment between James Hackett (Plaintiff) vs. Pathmark Stores, Inc. recorded December 8, 2007 in Judgment Record H, Volume 24, Page 406

 

481

 

Schedule A to Exhibit C-4

 

	
Upper   Darby, PA
    	
 
    	
·                  Upper Darby Stuart, Inc.   — (Fee “A”)

·                  Upper Darby Stuart, LLC —   (Fee “B”)
    
	
 
    	
 
    	
 
    
	
Lawnside,   NJ
    	
 
    	
·                  Plainbridge, LLC — Fee
    
	
 
    	
 
    	
 
    
	
Seaford,   NY
    	
 
    	
·                  Plainbridge, LLC   (Successor to Plainbridge, Inc.)
    
	
 
    	
 
    	
 
    
	
Baldwin,   NY
    	
 
    	
·                  Plainbridge, LLC   (Successor to Plainbridge, Inc.)
    
	
 
    	
 
    	
 
    
	
Ozone   Park
    	
 
    	
·                  Plainbridge, LLC — Parcels   1 & 2 (Fee)

·                  Pathmark Stores, Inc.   — Lease, Parcel 3
    
	
 
    	
 
    	
 
    
	
Wilmington,   DE
    	
 
    	
·                  Lancaster Pike Stuart, LLC   (Fee)

·                  Supermarkets General   Corporation n/k/a/ Pathmark Stores, Inc. (Leasehold)
    

 

1

 

Schedule B to Exhibit C-4

 

Any management or upper tier entities for the parties listed on Schedule A, as required by the Title Company.

 

2

 

Schedule C to Exhibit C-4

 

A.                               421 South 69th Blvd, Upper Darby, PA

 

1.                                            Fee Mortgage dated 1.26.1989, recorded 2.2.1989 in Vol. 643/Page 1995 which also covers other property

 

Mortgagor:                                       Supermarkets General Corporation

Mortgagee:                                      The Prudential Insurance Company of America

Amount:                                                     $1,710,000

 

2.                                            Fee Mortgage dated 1.26.1989, recorded 2.2.1989 in Vol. 643/Page 2069

 

Mortgagor:                                       Supermarkets General Corporation

Mortgagee:                                      The Prudential Insurance Company of America

Amount:                                                     $41,268,000 Collateral Assignment of Rents and Leases recorded 2.2.1989 in Vol. 643/Page 2144

 

3.                                            Leasehold Mortgage dated 9/19/2000, recorded 11.17.2000 in Vol. 2091/1575

 

Mortgagor:                                       Pathmark Stores, Inc.

Mortgagee:                                      The Chase Manhattan Bank

Amount:                                                     $425,000

First Amendment and Spreader Agreement recorded 10.27.2004, Vol. 3328/Page 722

 

4.                                            Fee Mortgage dated 12.3.2007, recorded 1.22.08 in Vol. 4282/Page 2132

 

Mortgagor:                                       Upper Darby Stuart, LLC

Mortgagee:                                      Bank of America

Amount:                                                     $775,000,000
 Also covers other property

 

5.                                            Leasehold Mortgage dated 12.3.07, recorded 1.22.08, Vol. 4282/223 1

 

Mortgagor:                                       Pathmark Stores, Inc

Mortgagee:                                      Bank of America Amount: $775,000,000
 Also covers other property

 

6.                                            Leasehold Mortgage dated 7.3 1.09, recorded 8.10.09 in Vol. 4604/Page 54

 

Mortgagor:                                       Pathmark Stores, Inc.

Mortgagee:                                      Wilmington Trust Company

Amount:                                                     $260,000,000
 Also covers other property

 

7.                                          Fee Mortgage dated 7.3 1.09, recorded 8.10.09 in Vol. 4604/Page 92

 

Mortgagor:                                       Upper Darby Stuart, LLC

Mortgagee:                                      Wilmington Trust Company

Amount:                                                     $260,000,000
 Also covers other property

 

3

 

B.                               130 White Horse Pike, Lawnside, NJ

 

1.                                       Mortgage dated 12.27.07 recorded 1.15.08 in Book 8747/Page 1553

 

Mortgagor:                                      Plainbridge, LLC

Mortgagee:                                     Bank of America

Amount:                                                    775,000,000

 

2.                                       Mortgage dated 12.27.07 recorded 1.15.08 in Book 8747/Page 1592

 

Mortgagor:                                      Pathmark Stores, Inc.

Mortgagee:                                     Bank of America

Amount:                                                    775,000,000

SNDA recorded October 20, 2008, in Book 8923/Page 587

 

3.                                          Mortgage dated 8.4.09 recorded 8.17.09 in Book 9084/Page 278

 

Mortgagor:                                   The Great Atlantic & Pacific Tea Company, Inc., Plainbridge, LLC and Bergen Street Pathmark, Inc.

Mortgagee:                                  Wilmington Trust Company

Amount:                                                 260,000,000

Assignment of Leases and Rents recorded 8.17.09 in 9084/Page 462

 

C.                               4055 Merrick Road, Seaford, NY

 

1.                                       Mortgage and Security Agreement held by The Chase Manhattan Bank, As Collateral Agent for the Administrative Agent, the lenders and the Issuing Bank from Plainbridge, Inc., dated July 9, 1997, recorded July 29, 1998 in the Nassau County Register’s Office in Liber 18054, MP 752.

 

2.                                       Mortgage and Security Agreement held by The Chase Manhattan Bank, As Collateral Agent for the Administrative Agent, the lenders and the Issuing Bank, from Plainbridge, Inc., dated September 19, 2000, recorded October 20, 2000 in the Nassau County Register’s Office in Liber 20595, MP 50.

 

3.                                       Mortgage and Security Agreement held by The Chase Manhattan Bank, dated September 19, 2000, from Supermarkets Oil Company, Inc., recorded November 2, 2000 in the Nassau County Register’s Office in Liber 20602, MP 1.

 

4.                                       Mortgage and Security Agreement held by The Chase Manhattan Bank, dated September 19, 2000, from Pathmark Stores, Inc., recorded November 3, 2000 in the Nassau County Register’s Office in Liber 20604, MP 52.

 

5.                                       Mortgage and Security Agreement held by Fleet Retail Group, Inc., from Pathmark Stores Inc., Plainbridge LLC, Bridge Stuart, Inc. and Supermarkets Oil Company, Inc. dated October 1, 2004, recorded October 27, 2004 in the Nassau County Register’s Office in Liber 27797, MP 501.

 

6.                                       Mortgage and Security Agreement held by Bank of America, NA, as Collateral Agent, from Pathmark Stores Inc., Plainbridge LLC, Bridge Stuart, Inc. and Shopwell

 

4

 

Inc. dated December 3, 2007, recorded May 2, 2007 in the Nassau County Register’s Office in Liber 32940, MP 1.

 

D.                               1764 Grand Avenue, Baldwin, NY

 

1.                                            Mortgage and Security Agreement from Plainbridge, Inc to The Chase Manhattan Bank, as Collateral Agent, dated July 9, 1997, recorded in Liber 18074, MP 752; Assignment to Fleet Retail Group, Inc as Collateral Agent, dated October 2, 2004, recorded in Liber 27797, MP 440. (Original Amount: A= $16,275,000).

 

2.                                            Mortgage Assignment of Leases and Rents, Security Agreement and Financing Statement from Plainbridge, Inc to The Chase Manhattan Bank, as Collateral Agent, dated September 19, 2000, recorded in Liber 20595, MP 50; Assignment to Fleet Retail Group, Inc as Collateral Agent, dated October 1, 2004, recorded in Liber 27797, MP 447; Assignment Bank of America, as Collateral Agent, dated May 2, 2008, recorded in Liber 32939, MP 978; (Original Amount: B= $425,000,000).

 

3.                                            Spreader Agreement between Pathmark Stores, Inc and Fleet Retail Group, Inc, dated October 1, 2004, recorded in Liber 277976, MP 454; “Gap” Agreement by Pathmark Stores, Inc, Plainbridge LLC, Bridge Stuart Inc., Supermarkets Oil Company Inc., and Fleet Retail Group, Inc., dated October 1, 2004, recorded in Liber 22797, MP 501; (Original Amount: $84,277,805.02) Additional Agreement by Pathmark Stores, Inc, Plainbridge LLC, Bridge Stuart Inc., Supermarkets Oil Company Inc., and Fleet Retail Group, Inc., dated October 1, 2004, recorded in Liber 22798, MP 1; (Consolidates Mortgages recorded in Liber 20595 MP 5 and Liber 27797 MP 501 into (Amended Amount: $130,000,000).

 

4.                                            Mortgage from Pathmark Stores, Inc., Plainbridge, Inc., Bridge Stuart Inc., and Shopwell, Inc to Bank of America, N. A., as Collateral Agent, dated December 3, 2007, recorded in Liber 32940, MP 1; (Original Amount: D= $170,000,000);Mortgage Assumption, Consolidation, Modification and Spreader Agreement between Bank of America, N. A., as Collateral Agent, and Pathmark Stores, Inc., Plainbridge, Inc., Bridge Stuart Inc., and Shopwell, Inc, dated December 3, 2007, recorded in Liber 32940, MP 125; (Consolidates Mortgages “A”, “B”, “C” and “D” into one lien for $545,000,000 and spreads to other properties).

 

5

 

E.                                 92-10 Atlantic Avenue, Queens, NY

 

Mortgage “A” Mortgage, Assignment of Leases and Rents, Security Agreement and Financing Statement dated as of 09/19/2000 by Plainbridge, Inc. to The Chase Manhattan Bank, as Collateral Agent, in the sum of $425,000,000.00, recorded 10/18/2000 in Reel 5700 Page 1096 (covers premises and more)(Tax Paid: Exempt). The maximum principal amount which is or under any contingency may be secured by the Mortgage is $425,000,000.00, plus interest thereon and all additional interest and late payment and prepayment charges in respect thereof, plus all amounts expended by Mortgagee following a default thereunder in respect of insurance premiums and real estate taxes, and all legal costs or expenses of collection of the note (s) secured thereby or of the defense or prosecution of the rights and lien created thereby; The mortgage secures the outstanding principal balance of $45,722,194.79, as of the date hereof, and $0 remains to be advanced thereunder. (Covers premises and more)

 

Assignment of Mortgage by JPMorgan Chase Bank f/k/a The Chase Manhattan Bank, as Collateral Agent, to Fleet Retail Group, Inc. as Collateral Agent dated as of 10/01/2004 recorded 11/04/2004 as CRFN 2004000680726. (Assigns Mortgage “A”) (Covers premises and more)

 

Mortgage Spreader Agreement by and between Fleet Retail Group, Inc. as Collateral Agent and Plainbridge LLC f/k/a Plainbridge, Inc. dated 10/01/2004 recorded 11/04/2004 as CRFN 2004000680727, spreads lien Mortgage “A” to additional property.

 

Mortgage “B” Mortgage, Assignment of Leases and Rents and Security Agreement by Pathmark Stores, Inc. to The Chase Manhattan Bank, as Collateral Agent, in the sum of $425,000,000.00 dated 09/19/2000, recorded 11/17/2000 in Reel 5723 Page 2391 (Mortgage Tax Paid: Exempt from mortgage tax.) (Covers premises and more)

 

Assignment of Mortgage by JPMorgan Chase Bank f/k/a The Chase Manhattan Bank, as Collateral Agent to Fleet Retail Group, Inc., as Collateral Agent, as of dated 10/01/2004 and recorded 11/04/2004, as CRFN 2004000680728. (Assigns Mortgage “B”)

 

Mortgage Spreader Agreement by and between Fleet Retail Group, Inc., as Collateral Agent and Pathmark Stores, Inc., dated as of 10/01/2004 recorded 11/04/2004 as CRFN 2004000680729. (Spread Mortgages “A” and “B” to cover additional premises)

 

6

 

Mortgage “C” Gap Mortgage by Pathmark Stores, Inc. to Fleet Retail Group, Inc. as Collateral Agent, dated 10/01/2004 in the sum of $84,277,805.21, recorded 11/04/2004 as CRFN 2004000680731.(Mortgage Tax Paid: $1,881,459.71, which is the total amount of mortgage tax paid for all counties in which said Gap Mortgage was recorded; Nassau County collected the total mortgage tax distributed the mortgage tax among the counties; plus an additional mortgage tax of $13,007.51 was paid to the City of Yonkers)

 

Mortgage Consolidation and Modification Agreement by and between Pathmark Stores, Inc., Plainbridge LLC, f/k/a Plainbridge, Inc., Bridge Stuart Inc. and Supermarkets Oil Company, Inc. and Fleet Retail Group, Inc., as Collateral Agent dated as of 10/01/2004 recorded 11/04/2004 as CRFN 2004000680732, which by its terms consolidates Mortgages “A”, “B” and “C” to form a single lien of $130,000,000.00.

 

Note: Parcel 2 released from this mortgage by Fleet Retail Group, LLC f/k/a Fleet Retail Group, Inc. as Collateral Agent, dated 01/25/2008 recorded 05/14/2008 as CRFN 2008000193521.

 

Assignment of Mortgage by Fleet Retail Group, LLC, (f/k/a Fleet Retail Group, Inc.), as Collateral Agent to Bank of America, N.A., As Collateral Agent, dated as of 12/03/2007 record as CRFN 2008000193517. (Assigns Mortgages “A”, “B” and “C” as consolidated, with an outstanding principal balance of $130,000,0000.00) Note: Additional Mortgage Tax $1,334,029.71 paid by Pathmark Stores, Inc., recorded 11/21/2008 as CRFN 200800451490. (copy attached)

 

Mortgage “D”

Mortgage Assumption, Consolidation Modification and Spreader Agreement by and between Bank of America, N.A., as Collateral Agent and Pathmark Stores, Inc., Plainbridge LLC (as successors by conversion from Plainbridge, Inc.) Bridge Stuart, Inc. and Shopwell, Inc., dated as of 12/03/2007 recorded 05/14/2008 as CRFN 2008000193519 consolidates mortgages covering numerous properties and spreads same to cover numerous other properties and to secure a maximum amount of $130,000,000.00. 

 

Note: Additional mortgage tax $1,334,029.71 by Pathmark Stores, Inc. on 11/21/2008 as CRFN 2008000451490.

 

Mortgage “E”

Mortgage, Assignment of Leases and Rents, Security Agreement and Financing Statement, dated as of 12/27/2007 to be effective as of 12/03/2007 by Plainbridge LLC. (as successor by conversion from Plainbridge, Inc.) to Bank of America, N.A. as Collateral Agent for the benefit of the Secured Parties in the sum of $28,300,000.00 recorded 05/14/2008 as CRFN 2008000193520 Tax Paid: $792,400.00 (Covers Parcel 2)

 

F.                                 3901 Lancaster Pike, Wilmington, DE

 

1. Mortgage and Security Agreement from Lancaster Pike Stuart, LLC to Bank of America, N.A., dated December 27, 2007 and recorded January 14, 2008 in Document No. 20080114-0003002.

 

7

 

2.                                                 Mortgage and Security Agreement from Lancaster Pike Stuart, LLC to Wilmington Trust Company, dated August 4, 2009 and recorded August 7, 2009 in Document No. 20090807-0052487.

 

3.                                                 Leasehold Mortgage and Security Agreement from Pathmark Stores, Inc. to Wilmington Trust Company, dated August 4, 2009 and recorded August 7, 2009 in Document No. 20090807-0052488.

 

8

 

EXHIBIT C-5

 

PARTIAL LIST OF PERMITTED ENCUMBRANCES

 

A.                               421 South 69th Blvd, Upper Darby, PA

 

Exception No. 5:                                  Real estate taxes for the current and prior tax years which are hereafter assessed and are not yet due and payable.

 

Exception No. 6:                                  Public and private rights in and to that portion of the premises lying in the bed of Heather Road and Marshall Road.

 

Exception No. 7:                                  Easement and proportionate part of expense of maintenance of driveway on Northwest and alley on North (Premises A).

 

B.                               130 White Horse Pike, Lawnside, NJ

 

Exception No. 6:                                  Payment of all taxes, water, sewer, rents and assessments, if any, to and including the current installment of 2010, not yet due and payable.

 

Exception No. 7:                                  Any unpaid municipal property taxes for the year 2010, not yet due and payable. NOTE: Taxes are paid to and including the third quarter of 2010.

 

Exception No. 8:                                  Possible additional taxes and assessments assessed or levied under R.S.54:4-653.1 et seq, not yet due and payable.

 

Exception No. 15:                            Subject to restrictions as contained in Deed Book 2881/Page 207.

 

Exception No. 16:                            Subject to terms of party wall agreement as contained in Deed Book 3 117/1150.

 

Exception No. 17:                            Grants and easements in Deed Book 3138/Page 565 to Public Service Electric and Gas Company.

 

Exception No. 18:                            Subject to terms and provisions of agreements as contained in Deed Book 3164/1194, Modification of Cross-Easement Agreement in Deed Book 3791/418, and Amendment of Cross-Easement Agreement in Deed Book 5113/168 made by Plainbridge, Inc.

 

Exception No. 19:                            Subject to Real Property Waiver as contained in Deed Book 4242/Page 574.

 

Exception No. 21:                            Subject to temporary access and construction easement as contained in Deed Book 5114/Page 771

 

C.                               4055 Merrick Road, Seaford, NY

 

Exception No. 1:                                  Taxes, tax liens, tax sales, water rates, sewer rents and assessments not yet due and payable.

 

Exception No. 5A.                        Reservations for Easements contained in a deed by Avis A. Bond and Ruth Pine to Shop-Rite of Watchung, Inc., dated 6/1/67 recorded 6/6/67 in Liber 7676 cp 191.

 

9

 

Exception No. 5B. Agreement for Non-Exclusive easement of ingress and egress by and between Shop-Rite of Watchung, Inc. and Avis A. Bond and Ruth Pine dated as of 10/09/67 recorded 1/26/68 in Liber 7785 cp 277.

 

23.                            The tax search reveals that there are exemptions from real estate taxes. The exemptions will terminate upon a conveyance of the property and taxes restored to the date of such conveyance.

 

D.                               1764 Grand Avenue, Baldwin, NY

 

Exception No. 1:                                  Taxes, tax liens, tax sales, water rates, sewer rents and assessments not yet due and payable.

 

24.                            Premises are subject to a tax lot exemption which may terminate upon a transfer of title and taxes readjusted to the date of such transfer.

 

E.                                 92-10 Atlantic Avenue, Queens, NY

 

Exception No 1:                                     Taxes, tax liens, tax sales, water rates, sewer rents and assessments, not yet due and payable.

 

Exception No. 5:                                  Road Closing Waiver and Easement Agreement dated 8/2/84 between Supermarkets General Corporation and the City of New York recorded 10/16/85 in Reel 1942 cp 943.

 

Exception No. 6:                                  Reservation of a permanent perpetual easement contained in a deed between The City of New York and Supermarkets General Corporation dated 1/11/85 recorded 3/25/86 in Reel 2051, Page 235.

 

Exception No. 7:                                  Declaration of Easements by and between Supermarkets General Corporation and 7 Horizon Corp., dated as of 8/7/87 recorded 11/17/87 in Reel 2494, Page 1380.

 

Exception No. 8:                                  Grant of Easement by and between Supermarkets General Corporation and The Consolidated Edison Company dated 8/9/84 recorded 1/13/87 in Reel 2272, Page 2056.

 

Exception No. 9:                                  Declaration of Easement by Plainbridge, Inc., dated as of 1/11/96 recorded 2/16/96 in Reel 4278, Page 358.

 

Exception No. 11:                            Parking, Ingress and Egress Easement dated as of 11/26/08 by Plainbridge, Inc., converted into Plainbridge LLC on 4/18/01 and Clocknorse Realty LLC recorded 10/27/09 as CRFN 2009000351215.

 

Exception No. 12:                            Grant of Easement by Supermarkets General Corporation to the Brooklyn Union Gas Company dated 8/9/84 recorded 3/20/86 in Liber 2046 cp 358.

 

Exception No. 13                               Terms and Condition of an unrecorded lease dated 8/12/85 and between Supermarkets General Corporation and S.L.G. Burger as amended by the unrecorded First Amendment of Lease dated as of 1/5/99 by and between Pathmark Stores, Inc., (formerly known as Supermarkets General Corporation and Atlantic Restaurant Associates, Inc., (successor by merger to S.L.G. Burger, Inc., as evidenced by a Memorandum of Lease between the same parties dated as of 1/21/99 recorded 3/1/99 in Reel 5130 Page 2052 as amended by an

 

10

 

unrecorded Amendment of Lease between the same parties dated as of 5/1/06 as evidenced by a Modification of Memorandum of Lease dated as of 8/28/07, between the same parties, recorded 10/1/07 as CRFN 2007000499568.

 

Exception No. 36:                            UCC Financing Statement with 7 Horizon Corp, as Debtor, New York Community Bank, as Secured Party filed as No. 02Q00781 on 1/25/02 continued by CRFN200600063 1285 on 11/14/06. NOTE: This affects the fee interest in Parcel 3 only.

 

Exception No. 37:                            Terms and conditions of an unrecorded Lease dated as of August 8, 1987 between 7 Horizon Corp., as Landlord and Supermarkets General Corporation, as Tenant as evidenced by a Memorandum of Lease between the same parties dated as of August 7, 1987 recorded November 17, 1987 in Reel 2949 Page 1373, as amended by an unrecorded First Amendment to Lease dated as of September 10, 2010 by and between 7 Horizon Corp., Landlord and Pathmark Stores, Inc., Tenant, as affected by an Assignment and Assumption of Lease by and between 7 Horizon Corp., as Landlord, Pathmark Stores, Inc., as Assignor and WE APP WILMINGTON LLC, as Assignee dated            and recorded                                                in Reel       , Page       . NOTE: Title Insurance Company to certify that the insured has succeeded to the interests of Tenant under such lease and has a valid leasehold interest in the premises described therein.

 

Exception No. 38:                            The following mortgages affect the fee interest to Parcel 3:

 

1.                                       Mortgage by 7 Horizon Corp. to Metlife Capital Credit Corporation in the sum of $700,000,000.00 dated as of 3/29/90, recorded 4/20/90 in reel 2984, Page 1271.

 

Assigned by MetLife Capital Corporation (successor by merger to Metlife Capital Credit Corporation) to Greenpoint Bank dated 11/26/96, recorded 3/5/97 in Reel 4537 Page 808.

 

2.                                       Mortgage by 7 Horizon Corp. to Greenpoint Bank in the sum of $6,697.25 dated 11/27/96, recorded 3/5/97 in Reel 4537, Page 811.

 

Subordination Nondisturbance and Attornment Agreement dated as of 10/09/96 among Greenpoint Bank, 7 Horizon Corp and Pathmark Stores, Inc. recorded 11/5/97 subordinates lease, a memo of which was recorded in Reel 2494, cp 1373 to consolidated mortgages set forth in 1 and 2.

 

Assignment of Mortgage by Greenpoint Bank, successor by name change from The Greenpoint Savings Bank to New York Community Bank dated 10/02/0 1 recorded 2/12/02 assigns Mortgages set forth in 1 and 2.

 

3.                                         Mortgage by 7 Horizon Corp. to New York Community Bank in the sum of $91,761.54 dated 11/1/01, recorded 2/12/02 in Reel 6207, Page 1336.

 

Subordination Nondisturbance and Attornment Agreement dated as of 11/01/01 among New York Community Bank, 7 Horizon Corp and Pathmark Stores, Inc. recorded 2/12/02 in Reel 6207, cp 1362.

 

11

 

Consolidation Modification and Extension Agreement between New York Community Bank and 7 Horizon Park dated 11/1/01, recorded 2/12/02 in Reel 6207, Page 1346 consolidates Mortgages set forth in 1, 2, and 3.

 

Mortgage Modification Agreement between 7 Horizon Corp. and New York Community Bank effective as of 12/22/08, recorded 11/13/08 as CRFN 200800044006.

 

F.                                 3901 Lancaster Pike, Wilmington, DE

 

Subject to sanitary sewer assessment and rent, not yet due and payable.

 

Right of Way Agreements recorded in Deed Record M, Vol. 98, Page 39, Deed Record K, Vol. 113, Page 270 and Deed Record W, Vol. 122, Page 75

 

The following mortgage affects the fee interest in Premises B only:

 

MORTGAGE: $5,175,000.00 from 3801 Wilmington Corporation to DCFS USA LLC, dated 9/1/09 and recorded 9/8/09 in Document No. 20090908-0058597.

 

LEASE SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT as set forth in Document No. 20090908-0058599.

 

ASSIGNMENT OF LEASES AND RENTS as set forth in Document No. 20090908-0058598.

 

12

 

EXHIBIT D-1

 

FORM OF NEW JERSEY DEED

 

[see attached]

 

13

 

DEED - BARGAIN AND SALE (COVENANT AS TO GRANTOR’S ACTS) 

Plain Language

 

	
 
    	
Prepared   by:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    

 

DEED

 

This Deed is made as of the              day of                    , 20      ,

BETWEEN ,

 

whose address is

referred to as the Grantor,

 

AND

 

whose address is *

referred to as the Grantee. The words “Grantor” and “Grantee” shall mean all Grantors and all Grantees listed above.

 

Transfer of Ownership. The Grantor grants and conveys (transfers ownership of) the property described below  to the Grantee. This transfer is made for                                                              the sum of                                        DOLLARS. The Grantor acknowledges receipt of this money.

 

Tax Map Reference. (N.J.S.A. 46:15-2.1) Municipality of                                                               Block No.                                       *                                           Lot No.                                 Account No.                                

 

14

 

[ ] No property tax identification number is available on the date of this deed. (Check box if applicable).

 

Property. The property consists of the land and all the buildings and structures on the land in the County of                                                            and State of New Jersey. The legal description is:

 

See Schedule A-Description attached.

 

Being the same premises conveyed to Grantor by deed from                                             dated                                           and recorded office of the Clerk/Register of                                                           County in Deed Book                   , Page       .

 

Promises by Grantor. The Grantor promises that the Grantor has done no act to encumber the property. This promise is called a “covenant as to grantor’s acts” (N.J.S.A. 46:4-6). This promise means that the Grantor has not allowed anyone else to obtain any legal rights which affect the property (such as by making a mortgage or allowing a judgment to be entered against the Grantor).

 

Signatures. The Grantor signs this Deed as of the date at the top of the first page.

 

 

	
Witnessed   by:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 *
    	
 
    	
 *
    
	
 
    	
 
    	
 
    

 

15

 

STATE OF NEW JERSEY, COUNTY OF MIDDLESEX SS.:

 

I CERTIFY that on                                                , 20      ,                                                          personally came before me and this person acknowledged under oath, to my satisfaction, that:

 

(a)                                  this person is the                                                     of                                                     , the                             named in this Deed;

 

(b)                                 this Deed was signed and delivered by the said person on behalf of said                              as its                                  voluntary act duly authorized by                                               ; and

 

(c)                                                  the full and actual consideration paid or to be paid for the transfer of title is $                               . (Such consideration is defined in N.J.S.A. 46:15-5.).

 

 

	
 
    	
 
    
	
 
    	
 
    
	
 
    	
NOTARY PUBLIC 

 

My Commission Expires:
    

 

16

 

EXHIBIT D-2

 

FORM OF NEW YORK DEED

 

[see attached]

 

17

 

BARGAIN AND SALE DEED

 

With Covenant Against Grantor’s Acts

 

THIS INDENTURE, made the        of                                      , 2010

 

BETWEEN

 

                     , a                                              existing                                           under the laws of GRANTOR, having an address of                                              ,

 

AND

 

                                                   a                                                   existing under the laws of                                                     , GRANTEE, having an address of                                                ,

 

WITNESSETH, THAT GRANTOR, in consideration of $                                       dollars, lawful money of the United States, paid by Grantee,

 

DOES HEREBY GRANT AND RELEASE UNTO GRANTEE, its successors and assigns forever,

 

ALL THAT CERTAIN PLOT, PIECE OR PARCEL OF LAND, with the buildings and improvements thereon erected, more particularly described on Exhibit “A” annexed to this indenture,

 

BEING THE SAME PREMISES CONVEYED TO GRANTOR by deed dated                                 recorded                                 in [***] [***],

 

TOGETHER WITH all right, title and interest, if any, of Grantor of, in and to any streets and roads abutting said premises to the center lines thereof,

 

TOGETHER WITH the appurtenances and all the estate and rights of Grantor in and to said premises,

 

SUBJECT TO the encumbrances and reservations described on Exhibit “B” annexed to this indenture,

 

TO HAVE AND TO HOLD the said premises herein granted unto Grantee, its successors and assigns forever.

 

AND GRANTOR COVENANTS that it has not done or suffered anything whereby the said premises have been encumbered in any way whatever, except as aforesaid.

 

AND GRANTOR COVENANTS that it will receive the consideration for such conveyance and will hold the right to receive such consideration as a trust fund to be applied first

 

18

 

for the purpose of paying the cost of the improvement and will apply the same first to the payment of cost of the improvement before using any part of the total of the same for any other purpose.

 

IN WITNESS WHEREOF, Grantor has caused these presents to be signed by its duly authorized officer the day and year first above written.

 

	
 
    	
GRANTOR:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    
	
 
    	
Name:   
    
	
 
    	
Title:
    

 

19

 

SIGNATORY ACKNOWLEDGEMENT:

 

	
STATE OF NEW YORK
    	
}
    
	
COUNTY OF
    	
}
    

 

On the                day of                                    , 2010, before me, the undersigned, personally appeared                                       personally known to me or proved to me to on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

 

	
 
    	
 
    
	
Notary   Public
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Section:   
   Block:
    
	
 
    	
Lot:
    
	
 
    	
County:   
   Address:
    
	
 
    	
 
    
	
 
    	
RETURN BY MAIL TO:
    
	
 
    	
 
    
	
 
    	
Daniel   A. Taylor
    
	
 
    	
DLA   Piper LLP (US)
    
	
 
    	
33   Arch Street, 26th Floor 
   Boston, MA 02110-1447
    

 

20

 

EXHIBIT “A”

 

21

 

EXHIBIT “B”

 

22

 

EXHIBIT D-3

 

FORM OF PENNSYLVANIA DEED

[see attached]

 

23

 

PREPARED BY:

 

RECORD & RETURN TO:

CHICAGO TITLE INSURANCE COMPANY 

1515 Market Street, Suite #1 325

Philadelphia, PA 19102

 

Parcel No.:

 

NAME OF DOCUMENT

 

(INSERT NAME OF PARTY OF THE FIRST PART) 

 

(INSERT NAME OF PARTY OF THE SECOND PART)

 

24

 

Record & Return to:

Chicago Title Insurance Company 

1515 Market Street, Suite 1325 

Philadelphia, PA 19102

 

Parecel No.

 

S P E C I A L W A R R A N T Y D E E D

 

Made this          day of                      , 2010

 

BETWEEN

 

           , a                 [corporation] (the “Grantor”);

AND

 

, a                          [corporation] (the “Grantee”);

 

WITNESSETH, that intending to be legally bound and in consideration of the sum of                                    AND 00/100 DOLLARS ($                                    .00) in hand paid, the receipt and sufficiency of which are hereby acknowledged, the Grantor hereby grants, sells and conveys to the Grantee, [its successors and assigns] [his/her/their heirs, personal representatives and assigns], forever:

 

All that certain lot or piece of ground situate in the                                                  , County of                            and Commonwealth of Pennsylvania, more particularly described on Exhibit A attached hereto and made a part hereof.

 

SUBJECT to coal and mining rights and oil and gas leases, rights-of-way; building restrictions; and other easements, covenants, reservations, restrictions, exceptions, rights, agreements and other matters of public record and other matters which would be apparent upon an accurate survey and/or upon inspection of the property.

 

TOGETHER with all and singular ways, waters, water-courses, rights, liberties, privileges, hereditaments and appurtenances whatsoever thereunto belonging or in anywise appertaining, and the reversions and remainders, rents, issues and profits thereof, and all the estate, right, title, interest, use, trust, property, possession, claim and demand whatsoever, of the Grantor in law, equity, or otherwise howsoever, of, in, to or out of the same, and every part thereof.

 

25

 

Prepard by:

 

TO HAVE AND TO HOLD the said buildings, improvements, hereditaments and premises hereby granted and released, or mentioned and intended so to be, with the appurtenances, unto the said Grantee, [its successors and assigns] [his/her/their heirs, personal representatives and assigns], and the said Grantor, for [itself/and its] [himself/herself/themselves and his/her/their heirs, personal representatives] and assigns does covenant, promise and agree to and with the said Grantee, [its successors] [his/her/their heirs, personal representatives] and assigns, by these presents, that it/he/she/they will WARRANT [GENERALLY] [SPECIALLY] the property hereby conveyed.

 

26

 

NOTICE: THIS DOCUMENT MAY NOT SELL, CONVEY, TRANSFER, INCLUDE OR INSURE THE TITLE TO THE COAL AND RIGHT OF SUPPORT UNDERNEATH THE SURFACE LAND DESCRIBED OR REFERRED TO HEREIN, AND THE OWNER OR OWNERS OF SUCH COAL MAY HAVE THE COMPLETE LEGAL RIGHT TO REMOVE ALL OF SUCH COAL AND, IN THAT CONNECTION, DAMAGE MAY RESULT TO THE SURFACE OF THE LAND AND ANY HOUSE, BUILDING OR OTHER STRUCTURE ON OR IN SUCH LAND. THE INCLUSION OF THIS NOTICE DOES NOT ENLARGE, RESTRICT OR MODIFY ANY LEGAL RIGHTS OR ESTATES OTHERWISE CREATED, TRANSFERRED, EXCEPTED OR RESERVED BY THIS INSTRUMENT. (This notice is set forth in the manner provided in Section 1 of the Act of July 17, 1957, P.L. 984, as amended, and is not intended as notice of unrecorded instruments, if any).

 

WITNESS the due execution hereof as of the day and year first written above.

 

	
WITNESS/ATTEST:
    	
 
    	
GRANTOR:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

	
COMMONWEALTH   OF PENNSYLVANIA
    	
 )
    
	
 
    	
)   SS:
    
	
COUNTY   OF
    	
 
    	
 )
    
			

 

On this        day of                            , 2010 before me, a Notary Public, personally appeared                              , who acknowledged himself/herself to be the                     of                               , and that he/she, as such officer, being authorized to do so, executed the foregoing instrument for the purposes therein contained by signing the name of said corporation by himself/herself as such officer.

 

IN WITNESS WHEREOF, I hereunto set my hand and official seal the day and year first above written.

 

 

	
 
    	
 
    
	
 
    	
Notary   Public
    
	
 
    	
 
    
	
 
    	
My   commission expires:
    

 

27

 

NOTICE: THE UNDERSIGNED, AS EVIDENCED BY THE SIGNATURE TO THIS NOTICE AND THE ACCEPTANCE AND RECORDING OF THIS DEED, IS/ARE FULLY COGNIZANT OF THE FACT THAT THE UNDERSIGNED MAY NOT BE OBTAINING THE RIGHT OF PROTECTION AGAINST SUBSIDENCE, AS TO THE PROPERTY HEREIN CONVEYED, RESULTING FROM COAL MINING OPERATIONS AND THAT THE PURCHASED PROPERTY, HEREIN CONVEYED, MAY BE PROTECTED FROM DAMAGE DUE TO MINE SUBSIDENCE BY A PRIVATE CONTRACT WITH THE OWNERS OF THE ECONOMIC INTEREST IN THE COAL. THIS NOTICE IS INSERTED HEREIN TO COMPLY WITH THE BITUMINOUS MINE SUBSIDENCE AND LAND CONSERVATION ACT OF 1966, AS AMENDED.

 

 

	
WITNESS/ATTEST:
    	
 
    	
GRANTEE:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

CERTIFICATE OF RESIDENCE

 

The undersigned hereby certifies that the Grantee’s precise address is

.

 

	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Agent
    

 

[If more than one notice address is applicable:

I hereby certify that (1) FOR THE PURPOSE OF DELIVERY OF TAX STATEMENTS ONLY the precise residence of the Grantees is

 

and (2) FOR ALL OTHER PURPOSES (including delivery of assessment change notices) the precise residence of Grantees is
                                                                                                             .]

 

28

 

EXHIBIT A

 

Legal Description

 

29

 

EXHIBIT D-4

 

FORM OF DELAWARE DEED

 

[see attached]

 

30

 

	
 
    	
Tax   Parcel No.
    
	
 
    	
 
    
	
 
    	
Prepared   by and return to: 
    
	
 
    	
[Name]
    
	
 
    	
[Address]
    
	
 
    	
 
    
	
 
    	
[Note:   header appears in upper right-hand corner for New Castle and Sussex Counties   and upper left-hand corner for Kent County]
    

 

THIS DEED, MADE this          day of                          , 20        ,

BETWEEN                                  , a                                  , party of the first part,

                                                                                             -AND-

 

, a                                          , party of the second part,

 

WITNES SETH, that the said party of the first part, for and in consideration of                          Dollars ($                       ) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, hereby grants and conveys unto the said party of the second part, its successors and assigns,

 

ALL that certain lot, piece or parcel of land, together with the improvements thereon, situate in                        Hundred,                      County, Delaware, and described on Exhibit “A” attached hereto and made a part hereof.

 

SUBJECT to all easements, covenants, restrictions, reservations, agreements and other matters of record, to the extent valid and enforceable:

 

BEING a part of the same lands and premises which                                             , by deed dated                              and recorded in the Office of the Recorder of Deeds in and for                                         County, State of Delaware, in Deed Book          , page         , did grant and convey unto                             , a                             and grantor herein, in fee.

 

	
GRANTEE(S) ADDRESS:
    	
 
    
	
 
    	
 
    

 

IN WITNESS WHEREOF, the said party of the first part has caused this Deed to be duly executed as a sealed instrument the day and year aforesaid.

 

	
Signed,   sealed and delivered in the presence of:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
(SEAL)
    
	
Witness
    	
 
    	
 
    	
[Name]
    
	
 
    	
 
    	
 
    	
[Title]
    

 

31

 

	
 
    	
 
    	
 
    	
Attest:
    	
 
    
	
 
    	
 
    	
 
    	
[Name]   [Title]
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
[Corporate   Seal]
    

 

	
STATE   OF
    	
 )
    	
 
    	
 
    
	
 
    	
 ) SS.
    	
 
    	
 
    
	
COUNTY   OF
    	
)
    	
 
    	
 
    

 

Be It Remembered, That on this                           day of                           , 20      , personally came before me, the Subscriber, a Notary Public for the State and County aforesaid,                                                         , the                                                             of                                               , party to this Deed, known to me to be such, and he acknowledged before me this Indenture to be his act; that the signature thereto is in his own proper handwriting and that his act of sealing, executing, acknowledging and delivering said Deed was duly authorized by resolution.

 

GIVEN under my hand and seal of office, the day and year aforesaid.

 

	
 
    	
 
    
	
 
    	
Notary   Public, Delaware
    
	
 
    	
Print   Name:
    
	
[Notary   Seal]
    	
  My   commission expires:
    

 

32

 

EXHIBIT E

 

FORM OF ASSIGNMENT

 

ASSIGNMENT AND ASSUMPTION OF EXISTING LEASES

 

THIS ASSIGNMENT AND ASSUMPTION OF LEASES (the “Assignment”) is made as of November          , 2010 between                                              LLC, a Delaware corporation, having an address at Two Paragon Drive, Montvale, New Jersey 07645 (“Assignor”), and WE APP           , a Delaware limited liability company, having an address at 150 Baker Avenue Extension, Suite 303, Concord, Massachusetts 07142 (“Assignee”).

 

R E C I T A L S :

 

A.    Assignor is the owner of certain property commonly known as                                and more particularly described on Schedule A attached hereto and made a part hereof (the “Premises”).

 

B.    The Property is subject to certain leases and agreements, as more fully set forth in the rent roll attached hereto as Schedule B (collectively, the “Leases”).

 

C.    Assignor, on the date hereof, has conveyed the Property to Assignee.

 

D.    In connection with the conveyance of the Property, Assignor has agreed to assign its interest in the Leases, and Assignee has agreed to assume Assignor’s interest therein from and after such conveyance.

 

NOW, THEREFORE, in consideration of the sum of Ten Dollars ($10.00) and other good and valuable consideration paid by Assignee to Assignor, the receipt and sufficiency of which are hereby acknowledged, the parties agrees as follows:

 

ASSIGNOR HEREBY ASSIGNS, transfers and delivers all of the Assignor’s right, title and interest in and to the Leases.

 

ASSIGNEE HEREBY ACCEPTS the foregoing assignment and assumes all of the obligations of Assignor under the Leases arising or to be performed by Assignor under the Leases on and after the date hereof; and

 

ASSIGNEE FURTHER AGREES to indemnify assignor against and to hold Assignor harmless from any liabilities, losses, damages, claims, costs and expenses, including, without limitation, reasonable attorneys’ fees and disbursements incurred by Assignor and arising from or as a result of the failure of Assignee to perform the obligations of lessor under the Leases applicable to the period occurring from and after the date as of which this Assignment has been executed and delivered to Assignee, including without limitation, claims for the return of any security deposit listed on Schedule B.

 

ASSIGNOR AGREES to indemnify Assignee against and to hold Assignee harmless from any liabilities, losses, damages, claims, costs and expenses, including, without limitation, reasonable attorneys’ fees and disbursements incurred by Assignee and arising from or as a result

 

33

 

of the failure of Assignor to perform the Assignor’s obligations under the Leases, applicable to the period occurring prior to the date as of which this Assignment has been executed and during the period of Assignor’s ownership of the Property, including without limitation, claims for the return of any security deposit not listed on Schedule B.

 

IN WITNESS WHEREOF, this Assignment has been executed by the duly authorized officers of Assignor and Assignee as of the day and year first above written.

 

	
WITNESS:
    	
 
    	
ASSIGNOR:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
                               LLC,   a Delaware limited
    
	
 
    	
 
    	
liability   company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
BY:
    	
 
    
	
Name:   Craig H. Feldman
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
WITNESS:
    	
 
    	
ASSIGNEE:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
WE   APP            ,   a Delaware limited liability
    
	
 
    	
 
    	
company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name:
    	
Name:
    
	
 
    	
 
    	
Title:
    
						

 

34

 

EXHIBIT F 

 

FORM OF GROUND LEASE ASSIGNMENTS

 

[see attached]

 

35

 

ASSIGNMENT AND ASSUMPTION OF LEASE

 

FOR VALUABLE CONSIDERATION,                                         , a                                         , with an address of                                         (“Assignor”), does hereby sell, transfer, and assign unto                                         , a                             with an address of                                         (“Assignee”), all of its right, title and interest as Tenant in and to that certain Lease Agreement dated September 8, 1977, with Commonwealth Trust Co., Trustee for Lancaster Trust, as said Lease appears of record in the Office for the Recording of Deeds in and for New Castle County, Delaware, in Deed Record M, Volume 98, Page 32, as amended, for certain parcel of land situate on Lancaster Turnpike, Christiana Hundred, New Castle County and State of Delaware, more particularly bounded and described therein.

 

Assignee does hereby accept said assignment and covenants and agrees to perform all obligations of Tenant as set forth in said Lease, as amended.

 

[remainder of page intentionally left blank – signature page follows]

 

36

 

IN WITNESS WHEREOF, the parties hereto have executed these presents, this        day of November, 2010.

 

	
SIGNED,   SEALED AND DELIVERED IN THE PRESENCE OF:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
[ASSIGNOR]
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
 
    
	
 
    	
 
    	
 
    	
President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attest
    	
 
    
	
 
    	
 
    	
 
    	
Secretary
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
[ASSIGNEE]
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Attest
    	
 
    
	
 
    	
 
    	
 
    	
 
    

 

37

 

	
STATE   OF DELAWARE
    	
 )
    
	
 
    	
)   SS.
    
	
NEW   CASTLE COUNTY
    	
 )
    

 

BE IT REMEMBERED, That on this      day of November, 2010, personally came before me, the Subscriber, a Notary Public for the State of Delaware,                                                                       ,                              of                              , a                                                  , party to this Instrument, known to me personally to be such, and acknowledged this Instrument to be his act and deed and the act and deed of said                                 , that the signature of the                                 thereto is in his own proper handwriting and the seal affixed is the common and corporate seal of said                                          , and that his act of sealing, executing, acknowledging and delivering said Instrument was duly authorized.

 

GIVEN under my Hand and Seal of office, the day and year aforesaid.

 

 

	
 
    	
 
    
	
 
    	
Notary Public
    

 

	
STATE   OF DELAWARE
    	
 )
    
	
 
    	
)   SS.
    
	
NEW   CASTLE COUNTY
    	
 )
    

 

BE IT REMEMBERED, That on this      day of November, 2010, personally came before me, the Subscriber, a Notary Public for the State of Delaware,                                 ,                    of                                               , a                                 , party to this Instrument, known to me personally to be such, and acknowledged this Instrument to be his act and deed and the act and deed of said                                 , that the signature of the                                 thereto is in his own proper handwriting and the seal affixed is the common and corporate seal of said                                 , and that his act of sealing, executing, acknowledging and delivering
 said Instrument was duly authorized.

 

GIVEN under my Hand and Seal of office, the day and year aforesaid.

 

 

	
 
    	
 
    
	
 
    	
Notary Public
    

 

38

 

EXHIBIT G

FORM OF EXISTING TENANT ATTORNMENT LETTER

 

PATHMARK STORES, INC
 Legal Department
 2 Paragon Drive
 Montvale, NJ 07645

 

As of November    , 2010

 

Certified Mail, RRR

 

Re: Lease between Pathmark Stores, Inc., as “Landlord”, and                                 , a                                 , as “Tenant”, dated as of                                 (the “Lease”) for premises located at 92 [10] Atlantic Avenue, Queens, NY (“Demised Premises”).

 

Dear Sir/Madam:

 

Please be advised that Pathmark Stores, Inc. has sold all of its right, title and interest in the Demised Premises and the Lease to WE APP                                 , a Delaware limited liability company (“New Landlord”) effective November        , 2010.

 

All payments and all inquiries and notices concerning rent should be directed as follows: All property management related inquiries should be directed to New Landlord at:

 

Your security deposit in the amount of $                                 has been transferred to New Landlord, and you are to look to                                 for the return of same.

 

Please update your records and best of luck in the future.

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    
	
 
    	
 
    

 

39

 

	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Title:   [Vice President and Secretary]
    

 

CC: WE APP          LLC

 

40

 

EXHIBIT H -FORM OF FIRPTA CERTIFICATE

 

	
STATE   OF NEW JERSEY)
    	
 
    
	
 
    	
)   ss
    
	
COUNTY   OF BERGEN)
    	
 
    

 

Christopher W. McGarry, being first duly sworn deposes and states under penalty of perjury:

 

1.               That he is the President of                                      LLC, the transferor of the Property located on Schedule 1 attached hereto.

 

2.               That the transferor’s office address is Two Paragon Drive, Montvale, New Jersey 07645.

 

3.               That the United States taxpayer identification number for the transferor is [22-2879612].

 

4.             That the transferor is not a “foreign person” as that term is defined in Section 1445(f) of the United States Internal Revenue Code of 1986, as amended (the “Code”).

 

5.             This affidavit is given to WE APP                                      LLC, a Delaware limited liability company, the transferee of the property described in Paragraph 1 above, for the purpose of establishing and documenting the non-foreign affidavit exemption to the withholding requirement of Section 1445 of the Code. The transferor understands that this affidavit may be disclosed to the Internal Revenue Service by the transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.

 

 

	
 
    	
 
    	
Very   truly yours,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
                                    ,   LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:   Christopher W. McGarry
    
	
 
    	
 
    	
Title:   President
    

 

41

 

	
Subscribed   and sworn to before me this              day of November,   2010
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    

 

42

 

EXHIBIT I - ENVIRONMENTAL REPORTS

 

1.             Environmental Assessment Report prepared for Supermarkets General Corporation, 301 Blair Road, Woodbridge, NJ, BCM Project No. 06-7554-0 1, Pathmark Supermarket, Rickels Home Center and Satellite Stores, 130 White Horse Pike, Lawnside, NJ, prepared by BCM Engineers, Inc., December 1989

 

2.             Phase I Environmental Site Assessment, Existing Pathmark Supermarket & Shopping Center Site, 130 White Horse Pike and Gloucester Pike, Lawnside Borough, Camden County, New Jersey, prepared for The Great Atlantic & Pacific Tea Co., Inc., 2 Paragon Drive, Montvale, NJ, prepared by Whitestone Associates, Inc., 35 Technology Drive, Warren, NJ, Whitestone Project #WP07-0023, dated October 10, 2007

 

3.             Environmental Assessment prepared for Supermarkets General Corporation, 301 Blair Road, Woodbridge, NJ, BCM Project No. 06-7554-01, Pathmark Supercenter, 1764 Grand Avenue, Baldwin, NY, prepared by BCM Engineers, Inc., December 1989

 

4.             Phase I Environmental Site Assessment, Existing Pathmark Supermarket, 1764 Grand Avenue, Section 36, Block 409, Lots 580, 592-595, 598 and 600, Baldwin, Town of Hempstead, Nassau County, NY, prepared for The Great Atlantic & Pacific Tea Co., Inc., 2 Paragon Drive, Montvale, NJ, prepared by Whitestone Associates, Inc., 35 Technology Drive, Warren, NJ, Whitestone Project #WJ07-9914, dated October 4, 2007

 

5.             Environmental Assessment prepared for Supermarkets General Corporation, 301 Blair Road, Woodbridge, NJ, BCM Project No. 06-7554-01, Pathmark Supercenter, 4055 Merrick Rd., Seaford, NY, prepared by BCM Engineers, Inc., December 1989

 

6.             Phase I Environmental Site Assessment, Existing Pathmark Supermarket, 4055 Merrick Road, Section 57, Block G, Lot 323, Seaford, Town of Hempstead, Nassau County, NY, prepared for The Great Atlantic & Pacific Tea Co., Inc., 2 Paragon Drive, Montvale, NJ, prepared by Whitestone Associates, Inc., 35 Technology Drive, Warren, NJ, Whitestone Project #WJ07-99 18, dated October 4, 2007

 

7.             Environmental Assessment Report prepared for Supermarkets General Corporation, 301 Blair Road, Woodbridge, NJ, BCM Project No. 06-7554-0 1, Clocktower Plaza, 92-10 Atlantic Ave., Ozone Park, NY, prepared by BCM Engineers, Inc., December 1989

 

8.             Phase I Environmental Site Assessment, Existing Pathmark Supermarket and Retail Stores, 92-10 Atlantic Avenue, Block 9027, Lot 11 and Block 9028, Lot 1, Ozone Park, Queens County, NY, prepared for The Great Atlantic & Pacific Tea Co., Inc., 2 Paragon Drive, Montvale, NJ, prepared by Whitestone Associates, Inc., 35 Technology Drive, Warren, NJ, Whitestone Project #WJ07-9912, dated October 11, 2007

 

43

 

9.             Phase II Site Investigation, Existing Pathmark Supermarket and Retail Stores, 92-10 Atlantic Avenue, Ozone Park, Queens, NY, prepared for The Great Atlantic & Pacific Tea Co., Inc., 2 Paragon Drive, Montvale, NJ, prepared by Whitestone Associates, Inc., 35 Technology Drive, Warren, NJ, Whitestone Project #WJ07-99 12, dated January 18, 2008

 

10.           Phase I Environmental Site Assessment, Existing Pathmark Supermarket, 421 South 69th Street, Upper Darby, Delaware County, PA, prepared for The Great Atlantic & Pacific Tea Co., Inc., 2 Paragon Drive, Montvale, NJ, prepared by Whitestone Associates, Inc., 35 Technology Drive, Warren, NJ, Whitestone Project #WP07-9926, dated October 5, 2007

 

11.           Phase I Environmental Site Assessment, Existing Pathmark Supermarket, 3901 Lancaster Pike, Wilmington, New Castle County, DE, prepared for The Great Atlantic & Pacific Tea Co., Inc., 2 Paragon Drive, Montvale, NJ, prepared by Whitestone Associates, Inc., 35 Technology Drive, Warren, NJ, Whitestone Project #WP07-9924, dated October 9, 2007

 

44

 

EXHIBIT J - SALES AND EBITDA INFORMATION

 

	
Location(s):
    	
 
    	
Pathmark 2009
   Sales
    	
 
    	
Pathmark 2009
   EBITDA
    	
 
    
	
421 South 69th Blvd., Upper Darby, PA
    	
 
    	
$
    	
32,642,502
    	
 
    	
$
    	
1,243,921
    	
 
    
	
130 White Horse Pike, Lawnside, NJ
    	
 
    	
$
    	
25,177,038
    	
 
    	
$
    	
733,730
    	
 
    
	
4055 Merrick Road, Seaford, NY
    	
 
    	
$
    	
38,816,306
    	
 
    	
$
    	
4,171,857
    	
 
    
	
1764 Grand Avenue, Baldwin, NY
    	
 
    	
$
    	
34,067,154
    	
 
    	
$
    	
2,005,495
    	
 
    
	
9210 Atlantic Avenue, Queens, NY
    	
 
    	
$
    	
62,742,162
    	
 
    	
$
    	
5,841,968
    	
 
    
	
3901 Lancaster Pike, Wilmington, DE
    	
 
    	
$
    	
21,387,807
    	
 
    	
$
    	
131,536
    	
 
    
	
Total(s) / Average(s)
    	
 
    	
$
    	
214,832,969
    	
 
    	
$
    	
14,128,507
    	
 
    

 

45

 

EXHIBIT K

 

FORM OF EXISTING TENANT ESTOPPEL

 

ESTOPPEL CERTIFICATE

 

2010

PATHMARK STORES, INC.

Two Paragon Drive

Montvale, New Jersey 07645

 

[PURCHASER]

 

	
RE:
    	
 
    	
 
    
	
 
    	
Store   # (if any)
    	
 
    
	
 
    	
Lease   Dated:
    	
 
    
	
 
    	
Landlord:
    	
 
    
	
 
    	
Tenant:
    	
 
    
	
 
    	
Term   Ending:
    	
 
    
	
 
    	
Options:
    	
 
    
	
 
    	
Purchaser:
    	
 
    

 

Gentlemen:

 

             (“Landlord”) has notified                                              (“Tenant”) that it is under contract to sell the Premises to                                              , a                                              limited liability company (“Purchaser”). This certificate will be delivered to Purchaser, any party providing financing or equity funding to Purchaser or any successor or assign thereof in connection with such sale, and all such parties may rely upon the certifications set forth herein with respect to such sale and/or financing. Tenant hereby certifies as follows:

 

1.             A true and complete copy of the lease, including all amendments, modifications, and extensions (as amended, modified, and extended, the “Lease”), is annexed hereto and made a part hereof. The Lease, including all amendments, modifications, and extensions consists of the following documents:

 

(a)

 

(b)

 

46

 

2.               The Lease is in full force and effect and is valid and enforceable according to its terms.

 

3.               The Landlord is not in default under any of the terms of the Lease, nor has any event occurred which with the passage of time or the giving of notice would constitute a default under the Lease.

 

4.               All rent, charges or other payments due the Landlord under the Lease have been paid as of the date of this certification.

 

5.               Tenant has not paid any of the rents, charges or other payments due under the Lease more than one (1) month in advance as of the date of this certification. The fixed annual or base rent currently payable under the Lease is $                                              per annum payable in advance in fixed monthly installments of $                                              each per month and is due to be increased to $                                              on                                              . In addition, Tenant is currently paying $                                              monthly, which is Tenant’s pro rata share of common area charges; $                       monthly, which is Tenant’s pro rate share of taxes, and $       monthly, which is Tenant’s pro rata share of insurance premiums.

 

6.               Landlord is holding a security deposit in the amount of $                                              . If such blank is left blank, then Landlord is not holding any security deposit.

 

7.               Tenant has no claims, counterclaims, defenses or set-offs against the Landlord arising from the Lease as of the date hereof.

 

8.               All required construction has been completed to the Tenant’s satisfaction and Tenant is occupying the Premises. Tenant has been paid all sums (if any) with respect to allowances for construction performed at the premises under the Lease or any other allowances or other tenant inducements provided for in the Lease.

 

9.               Tenant’s interest in the premises under the Lease has not been assigned or encumbered, and no portion of such premises has been encumbered.

 

10.           Any notices which may or shall be given to Tenant under the terms of the Lease are to be sent to Tenant at the following address:

 

47

 

11. Tenant has not requested any rent relief or other concessions from Landlord concerning any Lease obligation. Tenant does not presently perceive any reason it can not continue to meets its Lease obligations as same accrue in the ordinary course.

 

The undersigned has all requisite authority to execute this certificate on behalf of Tenant. The undersigned acknowledges that the parties entitled to rely on this certificate will rely on this certificate in connection with the decision to purchase the Property and/or provide financing in connection therewith.

 

 

	
Very   truly yours,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
TENANT:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    
	
Name:
    	
 
    
	
Title:
    	
 
    

 

48

 

EXHIBIT L

 

FORMS OF GROUND LANDLORD CONSENT AND ESTOPPEL

 

[see attached]

 

49

 

GROUND LESSOR ESTOPPEL (WILMINGTON, DE)

 

[GROUND LESSOR ENTITY AND ADDRESS INFO]

 

November           , 2010

 

WE APP Wilmington LLC (“Assignee”)

c/o Winstanley Enterprises LLC

130 Baker Avenue Extension, Suite 303

Concord, Massachusetts 01742

 

	
RE:
    	
Pathmark Key #:
    	
72-589B
    
	
 
    	
Ground Lease Dated:
    	
September 8,   1977
    
	
 
    	
Ground Lessor:
    	
3801   Wilmington Corporation.
    
	
 
    	
Ground Lessee:
    	
Pathmark   Stores, Inc.
    
	
 
    	
Demised Premises:
    	
4001   Lancaster Pike
    
	
 
    	
 
    	
Wilmington,   DE
    

 

Ladies and Gentlemen:

 

Ground Lessor hereby certifies as follows:

 

1. That certain Lease between Commonwealth Trust Co., your predecessor in interest, (Lessor) and 909 Group, L.P., our predecessor in interest (Lessee) dated as of September 8, 1977 (as amended or otherwise modified by the documents listed below, the “Ground Lease”) has not been modified either orally or in writing except as follows:

 

(a)             Amendment of Lease dated February 28, 1979

(b)             Amendment of Lease dated December 11, 1979

(c)             Assignment of Lease date November 29, 1994

(f)              Assignment of Lease dated June 11, 1980

(e)             Renewal Notice [9/8/97 – 9/7/02] dated March 3, 1997

(f)              Renewal Notice [9/8/02 – 9/7/07] dated January 31, 2002

(g)             Notice [Transfer of Ownership] dated August 9, 2007

(h)             Notice [Transfer of Ownership] dated February 6, 2009

(i)              Assignment and Assumption of Lease dated September 3, 2009

 

The Ground Lease is in full force and effect and is valid and enforceable according to its terms. A true and complete copy of the Ground Lease (including all documents listed above) is attached hereto and made a part hereof.

 

2.                                  The term of the Ground Lease expires on September 7, 2012. Ground Lessee has six (6) remaining renewal options of five (5) ears each.

 

50

 

3.                                  Neither Ground Lessee nor Ground Lessor is in default of its obligations under the Ground Lease and, to the best of Ground Lessor’s knowledge, there is no state of facts that with the giving of notice, the passage of time, or both, could ripen into such a default.

 

4.                                  All rent, charges or other payments due the Ground Lessor under the Ground Lessee have been paid as of the date of this Ground Lessor Estoppel.

 

5.                                  Ground Lessee has not paid any of the rents, charges or other payments due under the Ground Lease more than one (1) month in advance as of the date of this Ground Lessor Estoppel. The fixed annual or base rent currently payable under the Ground Lease is $3,500.04 pr annum payable in advance in fixed monthly installments of $291.67 each per month.

 

6.                                  There is no security deposit under the Ground Lease.

 

7.                                  Ground Lessor confirms that its address for purposes of notice under the Ground Lease is as follows:                  .

 

8.                                  Ground Lessor’s consent is not required in connection with the assignment of Ground Lessee’s interest in the Ground Lease to Assignee.

 

9.                                  Ground Lessor has not assigned the Ground Lease or any of its interests therein.

 

10.                            Ground Lessor has no claims, counterclaims, defenses or set-offs against Ground Lessee arising from the Ground Lease as of the date hereof.

 

This Ground Lessor’s Estoppel shall be binding upon Ground Lessor and its successors and assigns (if any). Ground Lessor understands and agrees that this Ground Lessor’s Estoppel may be relied upon by (i) Assignee and its successors or assigns, (ii) each lender of Assignee that finances all or any portion of the price paid in connection with the assignment of the Ground Lessee’s interest in the Ground Lease to Assignee or otherwise provides debt financing to Assignee (and any successor or assign of any of the foregoing) and (iii) any title insurance provider of any of the foregoing. The person executing this Ground Lessor’s Estoppel on behalf of Ground Lessor represents and warrants that he or she has full power and authority to execute this Ground Lessor’s Estoppel on the Ground Lessor’s behalf. The Ground Lessor shall cooperate in recording a memorandum of this Ground Lessor’s Estoppel upon Assignee’s request.

 

	
 
    	
 
    	
Very   truly yours,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
GROUND   LESSOR:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
3801   WILMINGTON CORPORATION, a Delaware corporation
    

 

51

 

	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

52

 

GROUND LESSOR ESTOPPEL (OZONE PARK, NY)

 

[GROUND LESSOR ENTITY AND ADDRESS INFO]

 

October           , 2010

 

WE APP Ozone Park LLC (“Assignee”)

c/o Winstanley Enterprises LLC

130 Baker Avenue Extension, Suite 303

Concord, Massachusetts 01742

 

	
RE:
    	
Pathmark Key #:
    	
72-626B
    
	
 
    	
Ground Lease Dated:
    	
August 7,   1987
    
	
 
    	
Ground Lessor:
    	
7   Horizon Corp.
    
	
 
    	
Ground Lessee:
    	
Pathmark   Stores, Inc.
    
	
 
    	
Demised Premises:
    	
92-10   Atlantic Avenue
    
	
 
    	
 
    	
Ozone   Park, NY
    

 

Ladies and Gentlemen:

 

Ground Lessor hereby certifies as follows:

 

1. That certain Lease between 7 Horizon Corp. (Landlord) and Pathmark Stores, Inc. formerly known as Supermarkets General Corporation (Tenant) dated as of August 7, 1987 (as amended or otherwise modified by the documents listed below, the “Ground Lease”) has not been modified either orally or in writing except as follows:

 

(a)             Declaration of Easement dated August 7, 1987

 

(b)             Letter Agreement dated March 28, 1990

 

(c)             Assignment of Lessor’s Interest in Lease date March 29, 1990

 

(g)            Renewal Notice {6/1/8 – 5/31/13] dated July 25, 2007

 

(e)             First Amendment to Lease dated September 10, 2010

 

The Ground Lease is in full force and effect and is valid and enforceable according to its terms. A true and complete copy of the Ground Lease (including all documents listed above) is attached hereto and made a part hereof.

 

11.         The term of the Ground Lease expires on May 31, 2013. Ground Lessee has five (5) remaining renewal options of five (5) ears each.

 

53

 

12.                            Neither Ground Lessee nor Ground Lessor is in default of its obligations under the Ground Lease and, to the best of Ground Lessor’s knowledge, there is no state of facts that with the giving of notice, the passage of time, or both, could ripen into such a default.

 

13.                            All rent, charges or other payments due the Ground Lessor under the Ground Lessee have been paid as of the date of this Ground Lessor Estoppel.

 

14.                            Ground Lessee has not paid any of the rents, charges or other payments due under the Ground Lease more than one (1) month in advance as of the date of this Ground Lessor Estoppel. The fixed annual or base rent currently payable under the Ground Lease is $57,500 per annum payable in advance in fixed monthly installments of $4,791.60 each per month.

 

15.                            There is no security deposit under the Ground Lease.

 

16.                            Ground Lessor confirms that its address for purposes of notice under the Ground Lease is as follows:       

 

17.                            Ground Lessor’s consent is not required in connection with the assignment of Ground Lessee’s interest in the Ground Lease to Assignee.

 

18.                            Ground Lessor has not assigned the Ground Lease or any of its interests therein.

 

19.                            Ground Lessor has no claims, counterclaims, defenses or set-offs against Ground Lessee arising from the Ground Lease as of the date hereof.

 

This Ground Lessor’s Estoppel shall be binding upon Ground Lessor and its successors and assigns (if any). Ground Lessor understands and agrees that this Ground Lessor’s Estoppel may be relied upon by (i) Assignee and its successors or assigns, (ii) each lender of Assignee that finances all or any portion of the price paid in connection with the assignment of the Ground Lessee’s interest in the Ground Lease to Assignee or otherwise provides debt financing to Assignee (and any successor or assign of any of the foregoing) and (iii) any title insurance provider of any of the foregoing. The person executing this Ground Lessor’s Estoppel on behalf of Ground Lessor represents and warrants that he or she has full power and authority to execute this Ground Lessor’s Estoppel on the Ground Lessor’s behalf. The Ground Lessor shall cooperate in recording a memorandum of this Ground Lessor’s Estoppel upon Assignee’s request.

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
GROUND   LESSOR:
    
	
 
    	
 
    
	
 
    	
7 HORIZON CORP., a New York corporation
    

 

54

 

	
 
    	
By:
    	
 
    
	
 
    	
Name:
    
	
 
    	
Title:
    

 

55

 

EXHIBIT M 

 

FORM OF SECRETARY’S CERTIFICATE

 

[see attached]

 

56

 

PLAINBRIDGE LLC
 (a Delaware limited liability company)

 

Written Consent of
 the Board of Managers in Lieu of a Meeting

 

The undersigned, being all the members of the Board of Managers (the “Board”) of Plainbridge, LLC, a Delaware limited liability company (the “Company”), do hereby consent to the following actions and do hereby adopt the following resolutions by unanimous written consent in lieu of a meeting pursuant to the laws of the state in which the Company is organized, as the act of and for the Company in the same manner as if duly presented to and approved at a meeting of the Board duly called and held for such purposes:

 

RESOLVED, that the Board of Managers hereby ratifies, authorizes and approves the following: that Plainbridge, LLC sell all of its right, title and interest in and to certain plots, pieces or parcels of land, with the buildings and improvements thereon erected, situate, lying and related to certain premises, known as: 130 White Horse Pike, Lawnside, NJ; 4055 Merrick Road, Seaford, New York; 1764 Grand Avenue, Baldwin, New York and 9210 Atlantic Avenue, Queens, New York to Winstanley, LLC or its assigns, as Buyer, and it is further

 

RESOLVED, that the officers of the Company are hereby authorized and empowered to do and perform all acts, matters and things and to execute and deliver and cause to be executed and delivered all certifications, instruments and documents deemed by them to be necessary, proper, convenient or advisable to carryout the purposes and intent of the foregoing resolutions; and it is further

 

RESOLVED, that the following officer of the Company is hereby authorized to sign agreements, closing statements, certifications and other documents in furtherance of these resolutions - Christopher McGarry as President.

 

	
 
    	
 
    	
Board   of Managers:
    
	
 
    	
 
    	
 
    
	
.                                :
    	
 
    	
 
    
	
 
    	
 
    	
Brenda   Galgano
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Michael   Gualtieri
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Christopher   McGarry
    
	
 
    	
 
    	
 
    
	
Dated:   November 1, 2010
    	
 
    	
 
    

 

57

 

UPPER DARBY STUART, LLC
 (a Delaware limited liability company)

 

Written Consent of
 the Board of Managers in Lieu of a Meeting

 

The undersigned, being all the members of the Board of Managers (the “Board”) of Upper Darby Stuart, LLC, a Delaware limited liability company (the “Company”), do hereby consent to the following actions and do hereby adopt the following resolutions by unanimous written consent in lieu of a meeting pursuant to the laws of the state in which the Company is organized, as the act of and for the Company in the same manner as if duly presented to and approved at a meeting of the Board duly called and held for such purposes:

 

RESOLVED, that the Board of Managers hereby ratifies, authorizes and approves the following: that Upper Darby Stuart, LLC sell all of its right, title and interest in and to that certain plot, piece or parcel of land, with the buildings and improvements thereon erected, situate, lying and related to that certain premise, known as: 421 South 69th Boulevard, Upper Darby, PA to Winstanley, LLC or its assigns, as Buyer, and it is further

 

RESOLVED, that the officers of the Company are hereby authorized and empowered to do and perform all acts, matters and things and to execute and deliver and cause to be executed and delivered all certifications, instruments and documents deemed by them to be necessary, proper, convenient or advisable to carryout the purposes and intent of the foregoing resolutions; and it is further

 

RESOLVED, that the following officer of the Company is hereby authorized to sign agreements, closing statements, certifications and other documents in furtherance of these resolutions - Christopher McGarry as President.

 

	
 
    	
 
    	
Board   of Managers:
    
	
 
    	
 
    	
 
    
	
.                             :
    	
 
    	
 
    
	
 
    	
 
    	
Brenda   Galgano
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Michael   Gualtieri
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Christopher   McGarry
    
	
 
    	
 
    	
 
    
	
Dated:   November 1, 2010
    	
 
    	
 
    

 

58

 

LANCASTER PIKE STUART LLC
 (a Delaware limited liability company)

 

Written Consent of
 the Board of Managers in Lieu of a Meeting

 

The undersigned, being all the members of the Board of Managers (the “Board”) of Lancaster Pike Stuart, LLC, a Delaware limited liability company (the “Company”), do hereby consent to the following actions and do hereby adopt the following resolutions by unanimous written consent in lieu of a meeting pursuant to the laws of the state in which the Company is organized, as the act of and for the Company in the same manner as if duly presented to and approved at a meeting of the Board duly called and held for such purposes:

 

RESOLVED, that the Board of Managers hereby ratifies, authorizes and approves the following: that Lancaster Pike Stuart, LLC sell all of its right, title and interest in and to certain plots, pieces or parcels of land, with the buildings and improvements thereon erected, situate, lying and related to certain premises, known as: 3901 Lancaster Pike, Wilmington, DE to Winstanley, LLC or its assigns, as Buyer, and it is further

 

RESOLVED, that the officers of the Company are hereby authorized and empowered to do and perform all acts, matters and things and to execute and deliver and cause to be executed and delivered all certifications, instruments and documents deemed by them to be necessary, proper, convenient or advisable to carryout the purposes and intent of the foregoing resolutions; and it is further

 

RESOLVED, that the following officer of the Company is hereby authorized to sign agreements, closing statements, certifications and other documents in furtherance of these resolutions - Christopher McGarry as President.

 

	
 
    	
 
    	
Board   of Managers:
    
	
 
    	
 
    	
 
    
	
.                              :
    	
 
    	
 
    
	
 
    	
 
    	
Brenda   Galgano
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Michael   Gualtieri
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Christopher   McGarry
    
	
 
    	
 
    	
 
    
	
Dated:   November 1, 2010
    	
 
    	
 
    

 

59

 

PATHMARK STORES, INC.

 

UNANIMOUS WRITTEN CONSENT
 OF DIRECTORS IN LIEU OF MEETING

 

The undersigned, being all of the Directors of Pathmark Stores, Inc., a Delaware corporation (the “Company”) in lieu of a meeting of the Board of Directors, hereby consents to and adopts the following resolutions with the full force and effect as if the same has been duly adopted at a meeting of the Board of Directors held pursuant to notice duly given:

 

RESOLVED, that the Board of Directors hereby ratifies, authorizes and approves the following: that Pathmark Stores, Inc. agrees to lease the properties listed on Exhibit A from the respective companies, and it is further

 

RESOLVED, that the President, and any Vice President be and hereby is, authorized and directed to execute and deliver contracts for the purchase and/or sale of real and personal property, mortgages and/or deeds in connection therewith, leases, lease assignments, assumption agreements, estoppel certificates, lease terminations, lease amendments and other forms of contracts or agreements in connection with any of the foregoing for the Company or any of its subsidiaries, on such occasion and in such form as he in his discretion shall determine.

 

RESOLVED, that the President or any Vice President be, and each of them acting alone hereby is, authorized to take all such action and to prepare, execute, deliver and file all such agreements, instruments, documents and certificates in the name and on behalf of the Company, under its corporate seal or otherwise, and to incur and to pay all such fees and expenses as they, or any on of them, shall deem necessary, proper or advisable in order to carry out the intent and effectuate the purpose of the foregoing resolution.

 

 

	
.                          Directors:
    	
 
    	
 
    
	
 
    	
 
    	
Brenda   Galgano
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Michael   Gualtieri
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Christopher   McGarry
    

 

 

Dated: November 1, 2010

 

60

 

Exhibit A

 

	
PROPERTY:
    	
421   South 69th Blvd.
    
	
 
    	
Upper   Darby, PA
    
	
 
    	
 
    
	
 
    	
130   White Horse Pike
    
	
 
    	
Lawnside,   NJ
    
	
 
    	
 
    
	
 
    	
4055   Merrick Road
    
	
 
    	
Seaford,   NY
    
	
 
    	
 
    
	
 
    	
1764   Grand Avenue
    
	
 
    	
Baldwin,   NY
    
	
 
    	
 
    
	
 
    	
9210   Atlantic Avenue
    
	
 
    	
Queens,   NY
    
	
 
    	
 
    
	
 
    	
3901   Lancaster Pike
    
	
 
    	
Wilmington,   DE
    
	
 
    	
 
    
	
LESSORS:
    	
 
    
	
 
    	
WE   APP Baldwin LLC
    
	
 
    	
WE   APP Lawnside LLC
    
	
 
    	
WE   APP Ozone Park LLC
    
	
 
    	
WE   APP Seaford LLC
    
	
 
    	
WE   APP Upper Darby LLC
    
	
 
    	
WE   APP Wilmington LLC
    

 

61

 

CERTIFICATION

 

THE GREAT ATLANTIC & PACIFIC TEA COMPANY, INC.

 

I, Christopher W. McGarry, do hereby certify that I am the Senior Vice President, General Counsel and Secretary of THE GREAT ATLANTIC & PACIFIC TEA COMPANY, INC., a Maryland corporation, and that the following is a true and correct copy of a resolution duly adopted by the Board of Directors of The Great Atlantic & Pacific Tea Company, Inc. at a meeting held on December 4, 1990 at which a quorum was present and acting throughout; and that said resolution has not been amended, revoked or rescinded and is now in full force and effect:

 

“RESOLVED, that this Corporation is hereby authorized and empowered to enter into guarantees of obligations due to suppliers, lenders, mortgagees, lessors or any other person, providing for the prompt payment when due, whether by acceleration or otherwise, of all debts, rents and other amounts whatsoever payable by Waldbaum, Inc., or any wholly owned subsidiary of the Corporation or payable by any subsidiary of Waldbaum, Inc. or payable by any subsidiary of any other wholly owned subsidiary of the Corporation, to such a person, its successors and assigns, in such form as the Chairman and Chief Executive Officer, any Vice Chairman, the Executive Vice President and Chief Financial Officer, or the Senior Vice President and General Counsel shall deem appropriate, and each such officer is authorized and empowered to execute and deliver such guaranty in the name of and on behalf of this Corporation, and such officer is further authorized to affix the seal of this Corporation to such guaranty and to furnish such certificates and instruments as such officer deems appropriate in connection therewith.”

 

I FURTHER CERTIFY that Pathmark Stores, Inc., a Delaware corporation, is a subsidiary of The Great Atlantic & Pacific Tea Company, Inc.

 

AND I FURTHER CERTIFY that the following individual has been duly elected to the office indicated in said Company and holds the same as of the date hereof, that he is authorized pursuant to the foregoing resolution to execute and deliver contracts, agreements, leases, deeds, mortgages and other instruments and that his true and correct signature appears below:

 

	
NAME
    	
 
    	
OFFICE
    	
 
    	
SIGNATURE
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
David   Kelly
    	
 
    	
Vice   President
    	
 
    	
 
    
	
 
    	
 
    	
Pathmark   Stores, Inc.
    	
 
    	
 
    

 

62

 

IN WITNESS WHEREOF, I have set my hand and affixed the official seal of the Corporation this 3rd day of November, 2010.

 

 

	
 
    	
 
    
	
 
    	
Christopher   W. McGarry
    
	
 
    	
Senior   Vice President,
    
	
 
    	
  General   Counsel & Secretary
    

 

63Exhibit 10.1

 

Execution Version

 

 

HELEN OF TROY LIMITED (BERMUDA)

HELEN OF TROY L.P.

HELEN OF TROY LIMITED (BARBADOS)

 

 

$100,000,000 3.90% Senior Notes

due January 12, 2018

 

 

 

NOTE PURCHASE AGREEMENT

 

 

 

DATED AS OF JANUARY 12, 2011

 

 

 

 

TABLE OF CONTENTS

 

	
SECTION
    	
 
    	
HEADING
    	
 
    	
PAGE
    
	
 
    	
 
    	
 
    
	
SECTION 1.   AUTHORIZATION OF NOTES
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
Section 1.1.
    	
Description of Notes
    	
 
    	
1
    
	
Section 1.2.
    	
Interest Rate
    	
 
    	
1
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 2.   SALE AND PURCHASE OF   NOTES; SUBSIDIARY GUARANTY
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
Section 2.1.
    	
Sale and Purchase of Notes
    	
 
    	
2
    
	
Section 2.2.
    	
Subsidiary Guaranty
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 3.   CLOSING
    	
 
    	
2
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 4.   CONDITIONS TO CLOSING
    	
 
    	
3
    
	
 
    	
 
    	
 
    	
 
    
	
Section 4.1.
    	
Representations and Warranties
    	
 
    	
3
    
	
Section 4.2.
    	
Performance; No Default
    	
 
    	
3
    
	
Section 4.3.
    	
Compliance Certificates
    	
 
    	
3
    
	
Section 4.4.
    	
Opinions of Counsel
    	
 
    	
4
    
	
Section 4.5.
    	
Purchase Permitted by Applicable Law, Etc.
    	
 
    	
4
    
	
Section 4.6.
    	
Related Transactions
    	
 
    	
4
    
	
Section 4.7.
    	
Payment of Special Counsel Fees
    	
 
    	
5
    
	
Section 4.8.
    	
Private Placement Number
    	
 
    	
5
    
	
Section 4.9.
    	
Changes in Corporate Structure
    	
 
    	
5
    
	
Section 4.10.
    	
Funding Instructions
    	
 
    	
5
    
	
Section 4.11.
    	
Subsidiary Guaranty
    	
 
    	
5
    
	
Section 4.12.
    	
Proceedings and Documents
    	
 
    	
5
    
	
Section 4.13.
    	
Evidence of Consent to Receive Service of Process
    	
 
    	
5
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 5.   REPRESENTATIONS AND   WARRANTIES OF THE OBLIGORS
    	
 
    	
6
    
	
 
    	
 
    	
 
    	
 
    
	
Section 5.1.
    	
Organization; Power and Authority
    	
 
    	
6
    
	
Section 5.2.
    	
Authorization, Etc.
    	
 
    	
6
    
	
Section 5.3.
    	
Disclosure
    	
 
    	
6
    
	
Section 5.4.
    	
Organization and Ownership of Shares of Subsidiaries
    	
 
    	
7
    
	
Section 5.5.
    	
Financial Statements
    	
 
    	
7
    
	
Section 5.6.
    	
Compliance with Laws, Other Instruments, Etc.
    	
 
    	
8
    
	
Section 5.7.
    	
Governmental Authorizations, Etc.
    	
 
    	
8
    
	
Section 5.8.
    	
Litigation; Observance of Statutes and Orders
    	
 
    	
8
    
	
Section 5.9.
    	
Taxes
    	
 
    	
8
    
	
Section 5.10.
    	
Title to Property; Leases
    	
 
    	
9
    
	
Section 5.11.
    	
Licenses, Permits, Etc.
    	
 
    	
9
    
	
Section 5.12.
    	
Compliance with ERISA
    	
 
    	
9
    
	
Section 5.13.
    	
Private Offering by the Obligors
    	
 
    	
10
    
	
Section 5.14.
    	
Use of Proceeds; Margin Regulations
    	
 
    	
10
    

 

i

 

	
Section 5.15.
    	
Existing Debt; Future Liens
    	
 
    	
10
    
	
Section 5.16.
    	
Foreign Assets Control Regulations, Etc.
    	
 
    	
11
    
	
Section 5.17.
    	
Status under Certain Statutes
    	
 
    	
11
    
	
Section 5.18.
    	
Environmental Matters
    	
 
    	
11
    
	
Section 5.19.
    	
Notes Rank Pari Passu
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 6.   REPRESENTATIONS OF THE PURCHASER
    	
 
    	
12
    
	
 
    	
 
    	
 
    	
 
    
	
Section 6.1.
    	
Purchase for Investment
    	
 
    	
12
    
	
Section 6.2.
    	
Accredited Investor
    	
 
    	
12
    
	
Section 6.3.
    	
Source of Funds
    	
 
    	
13
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 7.   INFORMATION   AS TO COMPANY
    	
 
    	
14
    
	
 
    	
 
    	
 
    	
 
    
	
Section 7.1.
    	
Financial and Business Information
    	
 
    	
14
    
	
Section 7.2.
    	
Officer’s Certificate
    	
 
    	
17
    
	
Section 7.3.
    	
Inspection
    	
 
    	
17
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 8.   PAYMENT   OF THE NOTES
    	
 
    	
18
    
	
 
    	
 
    	
 
    	
 
    
	
Section 8.1.
    	
Required Prepayments
    	
 
    	
18
    
	
Section 8.2.
    	
Optional Prepayments
    	
 
    	
18
    
	
Section 8.3.
    	
Allocation of Partial Prepayments
    	
 
    	
18
    
	
Section 8.4.
    	
Maturity; Surrender, Etc.
    	
 
    	
18
    
	
Section 8.5.
    	
Purchase of Notes
    	
 
    	
19
    
	
Section 8.6.
    	
Make-Whole Amount
    	
 
    	
19
    
	
Section 8.7.
    	
Withholding Taxes
    	
 
    	
20
    
	
Section 8.8.
    	
Change in Control
    	
 
    	
22
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 9.   AFFIRMATIVE   COVENANTS
    	
 
    	
23
    
	
 
    	
 
    	
 
    	
 
    
	
Section 9.1.
    	
Compliance with Law
    	
 
    	
23
    
	
Section 9.2.
    	
Insurance
    	
 
    	
23
    
	
Section 9.3.
    	
Maintenance of Properties
    	
 
    	
23
    
	
Section 9.4.
    	
Payment of Taxes and Claims
    	
 
    	
23
    
	
Section 9.5.
    	
Corporate Existence, Etc.
    	
 
    	
24
    
	
Section 9.6.
    	
Additional Subsidiary Guarantors
    	
 
    	
24
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 10.   NEGATIVE   COVENANTS
    	
 
    	
25
    
	
 
    	
 
    	
 
    	
 
    
	
Section 10.1.
    	
Consolidated Net Worth
    	
 
    	
25
    
	
Section 10.2.
    	
Leverage Ratio
    	
 
    	
25
    
	
Section 10.3.
    	
Interest Coverage Ratio
    	
 
    	
25
    
	
Section 10.4.
    	
Priority Debt
    	
 
    	
25
    
	
Section 10.5.
    	
Limitation on Liens
    	
 
    	
25
    
	
Section 10.6.
    	
Sales of Asset
    	
 
    	
27
    
	
Section 10.7.
    	
Merger and Consolidation
    	
 
    	
28
    
	
Section 10.8.
    	
Nature of Business
    	
 
    	
29
    
	
Section 10.9.
    	
Transactions with Affiliates
    	
 
    	
29
    

 

ii

 

	
Section 10.10.
    	
Terrorism Sanctions Regulations
    	
 
    	
30
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 11.   EVENTS   OF DEFAULT
    	
 
    	
30
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 12.   REMEDIES   ON DEFAULT, ETC.
    	
 
    	
32
    
	
 
    	
 
    	
 
    	
 
    
	
Section 12.1.
    	
Acceleration
    	
 
    	
32
    
	
Section 12.2.
    	
Other Remedies
    	
 
    	
33
    
	
Section 12.3.
    	
Rescission
    	
 
    	
33
    
	
Section 12.4.
    	
No Waivers or Election of Remedies, Expenses, Etc.
    	
 
    	
33
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 13.   REGISTRATION;   EXCHANGE; SUBSTITUTION OF NOTES
    	
 
    	
33
    
	
 
    	
 
    	
 
    	
 
    
	
Section 13.1.
    	
Registration of Notes
    	
 
    	
33
    
	
Section 13.2.
    	
Transfer and Exchange of Notes
    	
 
    	
34
    
	
Section 13.3.
    	
Replacement of Notes
    	
 
    	
34
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 14.   GUARANTY
    	
 
    	
35
    
	
 
    	
 
    	
 
    	
 
    
	
Section 14.1.
    	
Guaranty
    	
 
    	
35
    
	
Section 14.2.
    	
Guaranty of Payment and Performance
    	
 
    	
35
    
	
Section 14.3.
    	
General Provisions Relating to the Guaranty
    	
 
    	
35
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 15.   PAYMENTS   ON NOTES
    	
 
    	
40
    
	
 
    	
 
    	
 
    	
 
    
	
Section 15.1.
    	
Place of Payment
    	
 
    	
40
    
	
Section 15.2.
    	
Home Office Payment
    	
 
    	
40
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 16.   EXPENSES,   ETC.
    	
 
    	
40
    
	
 
    	
 
    	
 
    	
 
    
	
Section 16.1.
    	
Transaction Expenses
    	
 
    	
40
    
	
Section 16.2.
    	
Survival
    	
 
    	
41
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 17.   SURVIVAL   OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT
    	
 
    	
41
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 18.   AMENDMENT   AND WAIVER
    	
 
    	
41
    
	
 
    	
 
    	
 
    	
 
    
	
Section 18.1.
    	
Requirements
    	
 
    	
41
    
	
Section 18.2.
    	
Solicitation of Holders of Notes
    	
 
    	
41
    
	
Section 18.3.
    	
Binding Effect, Etc.
    	
 
    	
42
    
	
Section 18.4.
    	
Notes Held by Company, Etc.
    	
 
    	
42
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 19.   NOTICES
    	
42
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 20.   REPRODUCTION   OF DOCUMENTS
    	
 
    	
43
    

 

iii

 

	
SECTION 21.   CONFIDENTIAL   INFORMATION
    	
 
    	
43
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 22.   SUBSTITUTION   OF PURCHASER
    	
 
    	
44
    
	
 
    	
 
    	
 
    	
 
    
	
SECTION 23.   MISCELLANEOUS
    	
 
    	
45
    
	
 
    	
 
    	
 
    	
 
    
	
Section 23.1.
    	
Successors and Assigns
    	
 
    	
45
    
	
Section 23.2.
    	
Payments Due on Non-Business Days
    	
 
    	
45
    
	
Section 23.3.
    	
Accounting Terms
    	
 
    	
45
    
	
Section 23.4.
    	
Severability
    	
 
    	
45
    
	
Section 23.5.
    	
Construction
    	
 
    	
45
    
	
Section 23.6.
    	
Counterparts
    	
 
    	
45
    
	
Section 23.7.
    	
Governing Law
    	
 
    	
46
    
	
Section 23.8.
    	
Consent to Jurisdiction; Service of Process; Judgment   Currency; Waiver of Jury Trial
    	
 
    	
46
    
	
Section 23.9.
    	
Process Agent
    	
 
    	
47
    
	
Section 23.10.
    	
Maximum Interest Payable
    	
 
    	
47
    

 

iv

 

	
SCHEDULE A
    	
—
    	
INFORMATION   RELATING TO PURCHASERS
    
	
 
    	
 
    	
 
    
	
SCHEDULE B
    	
—
    	
DEFINED   TERMS
    
	
 
    	
 
    	
 
    
	
SCHEDULE 4.9
    	
—
    	
Changes   in Corporate Structure
    
	
 
    	
 
    	
 
    
	
SCHEDULE 5.4
    	
—
    	
Subsidiaries   of the Parent Guarantor, Ownership of Subsidiary Stock
    
	
 
    	
 
    	
 
    
	
SCHEDULE 5.5
    	
—
    	
Financial   Statements
    
	
 
    	
 
    	
 
    
	
SCHEDULE 5.11
    	
—
    	
Licenses,   Permits, Etc.
    
	
 
    	
 
    	
 
    
	
SCHEDULE 5.15
    	
—
    	
Existing   Debt
    
	
 
    	
 
    	
 
    
	
SCHEDULE 10.1
    	
—
    	
Existing   Investments
    
	
 
    	
 
    	
 
    
	
SCHEDULE 10.5
    	
—
    	
Existing   Liens
    
	
 
    	
 
    	
 
    
	
EXHIBIT 1
    	
—
    	
Form of   3.90% Senior Notes due January 12, 2018
    
	
 
    	
 
    	
 
    
	
EXHIBIT 2.2(a)
    	
—
    	
Form of   Subsidiary Guaranty
    
	
 
    	
 
    	
 
    
	
EXHIBIT 4.4(a)
    	
—
    	
Form of   Opinion of Special U.S. Counsel to the Obligors
    
	
 
    	
 
    	
 
    
	
EXHIBIT 4.4(b)
    	
—
    	
Form of   Opinion of Special Barbados Counsel to the Obligors
    
	
 
    	
 
    	
 
    
	
EXHIBIT 4.4(c)
    	
—
    	
Form of   Opinion of Special Bermuda Counsel to the Obligors
    
	
 
    	
 
    	
 
    
	
EXHIBIT 4.4(d)
    	
—
    	
Form of   Opinion of Special U.S. Counsel to the Purchasers
    
	
 
    	
 
    	
 
    
	
EXHIBIT 4.4(e)
    	
—
    	
Form of   Opinion of Special Barbados Counsel to the Purchasers
    
	
 
    	
 
    	
 
    
	
EXHIBIT 4.4(f)
    	
—
    	
Form of   Opinion of Special Bermuda Counsel to the Purchasers
    

 

v

 

HELEN OF TROY LIMITED (BERMUDA)

HELEN OF TROY L.P.

HELEN OF TROY LIMITED (BARBADOS)

 

$100,000,000 3.90% SENIOR NOTES

DUE JANUARY 12, 2018

 

	
 
    	
Dated as of
    
	
 
    	
January 12, 2011
    

 

TO THE PURCHASERS LISTED IN

THE ATTACHED SCHEDULE A:

 

Ladies and Gentlemen:

 

Each of HELEN OF TROY LIMITED, a Bermuda company (the “Parent Guarantor”), Helen of Troy L.P., a Texas limited partnership (the “Company”), and Helen of Troy Limited, a Barbados company (“Troy Barbados” and, together with the Parent Guarantor, the “Guarantors”), agrees with the Purchasers listed in the attached Schedule A (the “Purchasers”) to this Note Purchase Agreement (this “Agreement”) as follows:

 

SECTION 1.                                                 AUTHORIZATION OF NOTES.

 

Section 1.1.                                           Description of Notes.  The Company will authorize the issue and sale of $100,000,000 3.90% Senior Notes due January 12, 2018 (the “Notes”, such term shall also include any such notes issued in substitution therefor pursuant to Section 13 of this Agreement).  The Notes shall be substantially in the form set out in Exhibit 1 with such changes therefrom, if any, as may be approved by the Purchasers and the Company.  The payment of all amounts to become due under the Notes shall at all times be unconditionally and absolutely guaranteed by the Guarantors pursuant to the terms and provisions of Section 14 hereof (the Parent Guarantor, the Company and Troy Barbados are each individually referred to as an “Obligor” and collectively referred to as the “Obligors”).  Certain capitalized terms used in this Agreement are defined in Schedule B; references to a “Schedule” or an “Exhibit” are, unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement.

 

Section 1.2.                                           Interest Rate.  (a) The Notes shall bear interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid principal thereof from the date of issuance at their respective stated rate of interest payable semi-annually in arrears on the 12th day of January and July in each year and at maturity commencing on July 12, 2011, until such principal sum shall have become due and payable (whether at maturity, upon notice of prepayment or otherwise) and, to the extent permitted by law, at the applicable Default Rate on overdue payment of interest and, during the continuance of an Event of Default, on such unpaid principal balance and on any overdue payment of any Make-Whole Amount until paid.

 

 

SECTION 2.                                                 SALE AND PURCHASE OF NOTES; SUBSIDIARY GUARANTY.

 

Section 2.1.                                           Sale and Purchase of Notes.  Subject to the terms and conditions of this Agreement, the Company will issue and sell to each Purchaser and each Purchaser will purchase from the Company, at the Closing provided for in Section 3, the Notes in the principal amount specified opposite such Purchaser’s name in Schedule A at the purchase price of 100% of the principal amount thereof.  The obligations of each Purchaser hereunder are several and not joint obligations and each Purchaser shall have no obligation and no liability to any Person for the performance or nonperformance by any other Purchaser hereunder.

 

Section 2.2.                                           Subsidiary Guaranty.  (a) The payment by the Company of all amounts due with respect to the Notes and the performance by the Company of its obligations under this Agreement will be absolutely and unconditionally guaranteed by the Subsidiary Guarantors pursuant to the Subsidiary Guaranty Agreement dated as of even date herewith, which shall be substantially in the form of Exhibit 2.2(a) attached hereto, and otherwise in accordance with the provisions of Section 9.6 hereof (the “Subsidiary Guaranty”).

 

(b)                                 The holders of the Notes agree to discharge and release any Subsidiary Guarantor from the Subsidiary Guaranty upon the written request of the Company, provided that (i) such Subsidiary Guarantor has been released and discharged (or will be released and discharged concurrently with the release of such Subsidiary Guarantor under the Subsidiary Guaranty) as an obligor and guarantor under and in respect of each Bank Credit Agreement and the Company so certifies to the holders of the Notes in a certificate of a Responsible Officer, (ii) at the time of such release and discharge, the Company shall deliver a certificate of a Responsible Officer to the holders of the Notes stating that no Default or Event of Default exists, and (iii) if any fee or other form of consideration is given to any holder of Debt of the Company as consideration for or as an inducement to consenting to the release and discharge of such Subsidiary Guarantor as an obligor or guarantor of such Debt, the holders of the Notes shall receive equivalent consideration for granting their consent to the release and discharge of such Subsidiary Guarantor from the Subsidiary Guaranty (a “Collateral Release”).

 

SECTION 3.                                                 CLOSING.

 

The sale and purchase of the Notes to be purchased by each Purchaser shall occur at the offices of Chapman and Cutler LLP, 111 West Monroe Street, Chicago, Illinois 60603 at 10:00 a.m. Chicago time, at a closing (the “Closing Date”) on January 12, 2011 or such other Business Day thereafter or prior to January 31, 2011 as may be agreed upon by the Company and the Purchasers.  On the Closing Date, the Company will deliver to each Purchaser the Notes to be purchased by such Purchaser in the form of a single Note (or such greater number of Notes in denominations of at least $100,000 as such Purchaser may request) dated the date of the Closing Date and registered in such Purchaser’s name (or in the name of such Purchaser’s nominee), against delivery by such Purchaser to the Company or its order of immediately available funds in the amount of the purchase price therefor by wire transfer of immediately available funds for the account of the Company to Account Number 478-324-1250, at Bank of America, N.A., Houston, Texas, ABA Number 026-009-593, in the Account Name of “Helen of Troy L.P.” If, on the Closing Date, the Company shall fail to tender such Notes to any Purchaser as provided above in

 

2

 

this Section 3, or any of the conditions specified in Section 4 shall not have been fulfilled to any Purchaser’s satisfaction, such Purchaser shall, at such Purchaser’s election, be relieved of all further obligations under this Agreement, without thereby waiving any rights such Purchaser may have by reason of such failure or such nonfulfillment.

 

SECTION 4.                                                 CONDITIONS TO CLOSING.

 

The obligation of each Purchaser to purchase and pay for the Notes to be sold to such Purchaser at the Closing Date is subject to the fulfillment to such Purchaser’s satisfaction, prior to or on the Closing Date, of the following conditions applicable to the Closing Date:

 

Section 4.1.                                           Representations and Warranties.

 

(a)                                  Representations and Warranties of the Obligors.  The representations and warranties of each Obligor in this Agreement shall be correct when made and at the time of the Closing Date.

 

(b)                                 Representations and Warranties of the Subsidiary Guarantors. The representations and warranties of the Subsidiary Guarantors in the Subsidiary Guaranty shall be correct when made and at the time of the Closing Date.

 

Section 4.2.                                           Performance; No Default.   The Obligors and each Subsidiary Guarantor shall have performed and complied with all agreements and conditions contained in this Agreement and the Subsidiary Guaranty required to be performed or complied with by the Obligors and each such Subsidiary Guarantor prior to or on the Closing Date, and after giving effect to the issue and sale of the Notes (and the application of the proceeds thereof as contemplated by Section 5.14), no Default or Event of Default shall have occurred and be continuing.  None of the Obligors or any Subsidiary shall have entered into any transaction since the date of the Memorandum that would have been prohibited by Section 10 hereof had such Section applied since such date.

 

Section 4.3.                                           Compliance Certificates.

 

(a)                                      Officer’s Certificate of the Obligors.  Each Obligor shall have delivered to such Purchaser an Officer’s Certificate, dated the Closing Date, certifying that the conditions specified in Sections 4.1(a), 4.2 and 4.9 have been fulfilled.

 

(b)                                      Secretary’s Certificate of the Obligors.   Each Obligor shall have delivered to such Purchaser a certificate, dated the Closing Date, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Notes and this Agreement.

 

(c)                                      Officer’s Certificate of the Subsidiary Guarantors.  Each Subsidiary Guarantor shall have delivered to such Purchaser an Officer’s Certificate, dated the Closing Date, certifying that the conditions specified in Sections 4.1(b), 4.2 and 4.9 have been fulfilled.

 

3

 

(d)                                      Secretary’s Certificate of the Subsidiary Guarantors.  Each Subsidiary Guarantor shall have delivered to such Purchaser a certificate, dated the Closing Date, certifying as to the resolutions attached thereto and other corporate proceedings relating to the authorization, execution and delivery of the Subsidiary Guaranty.

 

Section 4.4.                                           Opinions of Counsel.  Such Purchaser shall have received opinions in form and substance satisfactory to such Purchaser, dated the Closing Date (a) from Baker & McKenzie LLP, special counsel for the Obligors, covering the matters set forth in Exhibit 4.4(a) and covering such other matters incident to the transactions contemplated hereby as such Purchaser or such Purchaser’s counsel may reasonably request (and the Parent Guarantor hereby instructs its counsel to deliver such opinion to such Purchaser), (b) from Clark, Gittens & Farmer, special Barbados counsel for Troy Barbados, covering the matters set forth in Exhibit 4.4(b) and covering such other matters incident to the transactions contemplated hereby as such Purchaser or such Purchaser’s counsel may reasonably request (and Troy Barbados hereby instructs its Barbados counsel to deliver such opinion to such Purchaser), (c) from Conyers Dill & Pearman Limited, special Bermuda counsel for the Parent Guarantor, covering the matters set forth in Exhibit 4.4(c) and covering such other matters incident to the transactions contemplated hereby as such Purchaser or such Purchaser’s counsel may reasonably request (and the Parent Guarantor hereby instructs its Bermuda counsel to deliver such opinion to such Purchaser), (d) from Chapman and Cutler LLP, the Purchasers’ special counsel in connection with such transactions, substantially in the form set forth in Exhibit 4.4(d) and covering such other matters incident to such transactions as such Purchaser may reasonably request, (e) from Chancery Chambers, the Purchasers’ special Barbados counsel in connection with such transactions, substantially in the form set forth in Exhibit 4.4(e) and covering such other matters incident to such transactions as such Purchaser may reasonably request, and (f) from Appleby, the Purchasers’ special Bermuda counsel in connection with such transactions, substantially in the form set forth in Exhibit 4.4(f) and covering such other matters incident to such transactions as such Purchaser may reasonably request.

 

Section 4.5.                                           Purchase Permitted by Applicable Law, Etc.  On the Closing each purchase of Notes shall (a) be permitted by the laws and regulations of each jurisdiction to which each Purchaser is subject, without recourse to provisions (such as Section 1405(a)(8) of the New York Insurance Law) permitting limited investments by insurance companies without restriction as to the character of the particular investment, (b) not violate any applicable law or regulation (including, without limitation, Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject any Purchaser to any tax, penalty or liability under or pursuant to any applicable law or regulation, which law or regulation was not in effect on the date hereof.  If requested by any Purchaser, such Purchaser shall have received an Officer’s Certificate certifying as to such matters of fact as such Purchaser may reasonably specify to enable such Purchaser to determine whether such purchase is so permitted.

 

Section 4.6.                                           Related Transactions.   The Company shall have consummated the sale of the entire principal amount of the Notes scheduled to be sold on the Closing Date pursuant to this Agreement.

 

4

 

Section 4.7.                                           Payment of Special Counsel Fees.  Without limiting the provisions of Section 16.1, the Company shall have paid on or before the Closing Date, the reasonable fees, reasonable charges and reasonable disbursements of the Purchasers’ special counsel and special Bermuda and Barbados counsel referred to in Section 4.4 to the extent reflected in a statement of such counsel rendered to the Company at least one Business Day prior to the Closing Date.

 

Section 4.8.                                           Private Placement Number.  A Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation with the Securities Valuation Office of the National Association of Insurance Commissioners) shall have been obtained for the Notes.

 

Section 4.9.                                           Changes in Corporate Structure.   None of the Obligors nor any Subsidiary Guarantor shall have changed its jurisdiction of organization or, except as reflected in Schedule 4.9, been a party to any merger or consolidation, or shall have succeeded to all or any substantial part of the liabilities of any other entity, at any time following the date of the most recent financial statements referred to in Schedule 5.5.

 

Section 4.10.                                            Funding Instructions.  At least three Business Days prior to the date of the Closing, each Purchaser shall have received written instructions signed by a Responsible Officer on letterhead of the Company confirming the wire payment information specified in Section 3 including (i) the name and address of the transferee bank, (ii) such transferee bank’s ABA number and (iii) the account name and number into which the purchase price for the Notes is to be deposited.

 

Section 4.11.                                            Subsidiary Guaranty.  The Subsidiary Guaranty shall have been duly authorized, executed and delivered by each Subsidiary Guarantor, shall constitute the legal, valid and binding contract and agreement of each Subsidiary Guarantor and such Purchaser shall have received a true, correct and complete copy thereof.

 

Section 4.12.                                            Proceedings and Documents.  All corporate or other organizational proceedings in connection with the transactions contemplated by this Agreement and all documents and instruments incident to such transactions shall be satisfactory to such Purchaser and such Purchaser’s special counsel, and such Purchaser and such Purchaser’s special counsel shall have received all such counterpart originals or certified or other copies of such documents as such Purchaser or such Purchaser’s special counsel may reasonably request.

 

Section 4.13.                                            Evidence of Consent to Receive Service of Process.  Such Purchaser shall have received evidence, in form and substance satisfactory to it, of the consent of CT Corporation System in New York, New York to the appointment and designation provided for by Section 23.9 hereof and Section 27 of the Subsidiary Guaranty  for the period from the date of Closing through January 12, 2019  (and the prepayment in full of all fees in respect thereof).

 

5

 

SECTION 5.                                                 REPRESENTATIONS AND WARRANTIES OF THE OBLIGORS.

 

Each Obligor represents and warrants to each Purchaser that:

 

Section 5.1.                                           Organization; Power and Authority.  Each Obligor is a business entity (or, in the case of the Company, a partnership) duly organized, validly existing and, for each Obligor that is a business entity, good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign entity and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Each Obligor has the requisite power and authority to own or hold under lease the properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement and the Notes and to perform the provisions hereof and thereof.

 

Section 5.2.                                           Authorization, Etc.  This Agreement has been duly authorized by all requisite action on the part of each Obligor, and this Agreement constitutes a legal, valid and binding obligation of each Obligor enforceable against each Obligor in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).  The Notes have been duly authorized by all necessary partnership action on the part of the Company and, upon execution and delivery thereof, each Note will constitute, a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by (i) applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

Section 5.3.                                           Disclosure.  The Obligors, through their agent, Merrill Lynch, Pierce, Fenner & Smith Incorporated, have delivered to each Purchaser a copy of a Private Placement Memorandum, dated December, 2010 (the “Memorandum”), relating to the transactions contemplated hereby.  The financial statements listed in Schedule 5.5, the Memorandum, SEC Reports and the documents, certificates or other writings delivered to you by or on behalf of the Obligors fairly describe, in all material respects, the general nature of the business and principal properties of the Obligors and their Subsidiaries.  This Agreement, the Memorandum, SEC Reports and the documents, certificates or other writings delivered to you by or on behalf of the Obligors in connection with the transactions contemplated hereby and the financial statements listed in Schedule 5.5 (this Agreement, the Memorandum and such documents, certificates or other writings and such financial statements delivered to each Purchaser prior to December 20, 2010 being referred to, collectively, as the “Disclosure Documents”), taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading in light of the circumstances under which they were made; provided that any information or financial statements relating to Kaz, Inc. and its subsidiaries shall be to the knowledge of the Obligors.  Since February 28, 2010, except as described and disclosed in the Disclosure Documents, in SEC Reports, there has been no change

 

6

 

in the financial condition, operations, business or properties of the Obligors or any of their Subsidiaries except changes that individually or in the aggregate could not reasonably be expected to have a Material Adverse Effect.  There is no fact known to any Obligor that could reasonably be expected to have a Material Adverse Effect that has not been set forth herein or in the Disclosure Documents.

 

Section 5.4.                                           Organization and Ownership of Shares of Subsidiaries.  (a) Schedule 5.4 contains (except as noted therein) complete and correct lists of the Parent Guarantor’s Subsidiaries, showing, as to each Subsidiary, the correct name thereof, the jurisdiction of its organization, and the percentage of shares of each class of its capital stock or similar equity interests outstanding owned by the Parent Guarantor and each other Subsidiary, and all other Investments of the Parent Guarantor and its Subsidiaries.

 

(b)                                      All of the outstanding shares of capital stock or similar equity interests of each Subsidiary shown in Schedule 5.4 as being owned by the Parent Guarantor and its Subsidiaries have been validly issued, are fully paid and nonassessable and are owned by the Parent Guarantor or another Subsidiary free and clear of any Lien (except as otherwise disclosed in Schedule 5.4).

 

(c)                                      Each Subsidiary identified in Schedule 5.4 is a corporation or other legal entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified as a foreign corporation or other legal entity and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.  Each such Subsidiary has the corporate or other power and authority to own or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact.

 

(d)                                      No Subsidiary is a party to, or otherwise subject to, any Material legal restriction or any agreement (other than this Agreement, the restrictions or agreements listed on Schedule 5.4 and customary limitations imposed by corporate law statutes) restricting the ability of such Subsidiary to pay dividends out of profits or make any other similar distributions of profits to the Obligors or any of their Subsidiaries that owns outstanding shares of capital stock or similar equity interests of such Subsidiary.

 

Section 5.5.                                           Financial Statements.  The Obligors have delivered to each Purchaser copies of the financial statements of the Parent Guarantor and its Subsidiaries listed on Schedule 5.5.  All of said financial statements (including in each case the related schedules and notes) fairly present in all material respects the consolidated financial position of the Parent Guarantor and its Subsidiaries as of the respective dates specified in such financial statements and the consolidated results of their operations and cash flows for the respective periods so specified and have been prepared in accordance with GAAP consistently applied throughout the periods involved except as set forth in the notes thereto (subject, in the case of any interim financial statements, to normal year-end adjustments).  As of the date hereof, the Company and its Subsidiaries do not have any Material liabilities that are not disclosed on such financial statements or otherwise disclosed in the Disclosure Documents.

 

7

 

Section 5.6.                                           Compliance with Laws, Other Instruments, Etc.  The execution, delivery and performance by each Obligor of this Agreement and the issue and sale of the Notes by the Company will not, except where such has no Material Adverse Affect,  (a) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of any property of any Obligor under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or by-laws, or any other agreement or instrument to which any Obligor is bound or by which any Obligor or any of their respective properties may be bound or affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority applicable to any Obligor, or (c) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to any Obligor.

 

Section 5.7.                                           Governmental Authorizations, Etc.  No consent, approval or authorization of, or registration, filing or declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by any Obligor of this Agreement or the Notes by the Company.

 

Section 5.8.                                           Litigation; Observance of Statutes and Orders.  (a) There are no actions, suits or proceedings pending or, to the knowledge of any Obligor, threatened against or affecting any Obligor or any Subsidiary or any property of any Obligor or any Subsidiary in any court or before any arbitrator of any kind or before or by any Governmental Authority that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

(b)                                      None of the Obligors nor any Subsidiary is in default under any term of any agreement or instrument to which it is a party or by which it is bound, or any order, judgment, decree or ruling of any court, arbitrator or Governmental Authority or is in violation of any applicable law, ordinance, rule or regulation (including without limitation Environmental Laws or the USA Patriot Act) of any Governmental Authority, which default or violation, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

 

Section 5.9.                                           Taxes.  The Obligors and their Subsidiaries have filed all tax returns that are required to have been filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and all other taxes and assessments levied upon them or their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent, except for any taxes and assessments (a) the amount of which is not individually or in the aggregate Material or (b) the amount, applicability or validity of which is currently being contested in good faith by appropriate proceedings and with respect to which the Obligors or a Subsidiary, as the case may be, has established adequate reserves in accordance with GAAP.  None of the Obligors knows of any basis for any other tax or assessment that could reasonably be expected to have a Material Adverse Effect.  The charges, accruals and reserves on the books of the Parent Guarantor and its Subsidiaries in respect of federal, state or other taxes for all fiscal periods are adequate.  The federal income tax liabilities of the Parent Guarantor and its Subsidiaries have been determined by the Internal Revenue Service and paid for all fiscal years up to and including the fiscal year ended February 28, 2008.

 

8

 

Section 5.10.                                            Title to Property; Leases.  The Obligors and their Subsidiaries have good and sufficient title to their respective properties which the Obligors and their Subsidiaries own or purport to own that individually or in the aggregate are Material, including all such properties reflected in the most recent audited balance sheet referred to in Section 5.5 or purported to have been acquired by the Obligors or any Subsidiary after said date (except as sold or otherwise disposed of in the ordinary course of business), in each case free and clear of Liens prohibited by this Agreement.  All leases that individually or in the aggregate are Material are valid and subsisting and are in full force and effect in all material respects.

 

Section 5.11.                                            Licenses, Permits, Etc.  Except as disclosed in Schedule 5.11:

 

(a)                             the Obligors and their Subsidiaries own or possess all licenses, permits, franchises, authorizations, patents, copyrights, service marks, trademarks and trade names, or rights thereto, that individually or in the aggregate are Material, without known conflict with the Material rights of others;

 

(b)                            to the best knowledge of the Obligors, no product of any Obligor or any of its Subsidiaries infringes in any Material respect any license, permit, franchise, authorization, patent, copyright, service mark, trademark, trade name or other right owned by any other Person; and

 

(c)                             to the best knowledge of the Obligors, there is no Material violation by any Person of any right of any Obligor or any of its Subsidiaries with respect to any patent, copyright, service mark, trademark, trade name or other right owned or used by any Obligor or any of its Subsidiaries.

 

Section 5.12.                                            Compliance with ERISA.  (a) The Obligors and each ERISA Affiliate have operated and administered each Plan in compliance with all applicable laws except for such instances of noncompliance as have not resulted in and could not reasonably be expected to result in a Material Adverse Effect.  None of the Obligors or any ERISA Affiliate has incurred any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or condition has occurred or exists that could reasonably be expected to result in the incurrence of any such liability by the Obligors or any ERISA Affiliate, or in the imposition of any Lien on any of the rights, properties or assets of the Obligors or any ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty or excise tax provisions or to section 401(a)(29) or 412 of the Code, other than such liabilities or Liens as would not be individually or in the aggregate Material.

 

(b)                                      The present value of the aggregate benefit liabilities under each of the Plans (other than Multiemployer Plans), determined as of the end of such Plan’s most recently ended plan year on the basis of the actuarial assumptions specified for funding purposes in such Plan’s most recent actuarial valuation report, did not exceed the aggregate current value of the assets of such Plan allocable to such benefit liabilities by more than $2,000,000 in the aggregate for all Plans.  The term “benefit liabilities” has the meaning specified in section 4001 of ERISA and the terms “current value” and “present value” have the meaning specified in section 3 of ERISA.

 

9

 

(c)                                      The Obligors and their ERISA Affiliates have not incurred any withdrawal liabilities (and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of ERISA in respect of Multiemployer Plans that individually or in the aggregate are Material.

 

(d)                                      The expected post-retirement benefit obligation (determined as of the last day of the Parent Guarantor’s most recently ended fiscal year in accordance with Financial Accounting Standards Board Statement No. 106, without regard to liabilities attributable to continuation coverage mandated by section 4980B of the Code) of the Parent Guarantor’s and its Subsidiaries is not Material.

 

(e)                                      The execution and delivery of this Agreement and the issuance and sale of the Notes hereunder will not involve any transaction that is subject to the prohibitions of Section 406 of ERISA or in connection with which a tax could be imposed pursuant to Section 4975(c)(1)(A)-(D) of the Code.  The representation by the Obligors in the first sentence of this Section 5.12(e) is made in reliance upon and subject to the accuracy of each Purchaser’s representation in Section 6.2 as to the sources of the funds to be used to pay the purchase price of the Notes to be purchased by such Purchaser.

 

Section 5.13.                                            Private Offering by the Obligors.  None of the Obligors or anyone acting on the Obligors’ behalf has offered the Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or otherwise approached or negotiated in respect thereof with, any Person other than the Purchasers and not more than 39 other Institutional Investors, each of which has been offered the Notes in connection with a private sale for investment.  None of the Obligors or anyone acting on its behalf has taken, or will take, any action that would subject the issuance or sale of the Notes to the registration requirements of Section 5 of the Securities Act or to the registration requirements of any securities or blue sky laws of any applicable jurisdiction.

 

Section 5.14.                                            Use of Proceeds; Margin Regulations.  The Company will apply the proceeds of the sale of the Notes to finance, or refinance indebtedness incurred in connection with the acquisition of Kaz, Inc., to refinance existing indebtedness or for general corporate purposes of the Company.  No part of the proceeds from the sale of the Notes hereunder will be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or for the purpose of buying or carrying or trading in any securities under such circumstances as to involve the Obligors in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board (12 CFR 220).  Margin stock does not constitute more than 5% of the value of the consolidated assets of the Parent Guarantor and its Subsidiaries and the Parent Guarantor does not have any present intention that margin stock will constitute more than 5% of the value of such assets.  As used in this Section, the terms “margin stock” and “purpose of buying or carrying” shall have the meanings assigned to them in said Regulation U.

 

Section 5.15.                                            Existing Debt; Future Liens.  (a) Except as described therein, Schedule 5.15 sets forth a complete and correct list of all outstanding Debt of the Parent Guarantor and its Subsidiaries as of August 31, 2010, since which date there has been no Material change in the amounts, interest rates, sinking funds, installment payments or maturities of the Debt of the

 

10

 

Parent Guarantor or its Subsidiaries.  None of the Obligors or any Subsidiary is in default and no waiver of default is currently in effect, in the payment of any principal or interest on any Debt of any Obligor or such Subsidiary, and no event or condition exists with respect to any Debt of any Obligor or any Subsidiary, that would permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Debt to become due and payable before its stated maturity or before its regularly scheduled dates of payment.

 

(b)                                      Except as disclosed in Schedule 5.15, none of the Obligors or any Subsidiary has agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter acquired, to be subject to a Lien not permitted by Section 10.5.

 

(c)                                      Neither the Company nor any Subsidiary is a party to, or otherwise subject to any provision contained in, any instrument evidencing Indebtedness of the Company or such Subsidiary, any agreement relating thereto or any other agreement (including, but not limited to, its charter or other organizational document) which limits the amount of, or otherwise imposes restrictions on the incurring of, Indebtedness of the Company, except as specifically indicated in Schedule 5.15.

 

Section 5.16.                                            Foreign Assets Control Regulations, Etc.  (a) Neither the sale of the Notes by the Company hereunder nor its use of the proceeds thereof will violate the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto.

 

(b)                                      Neither the Company nor any Subsidiary (i) is a Person described or designated in the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the Anti-Terrorism Order or (ii) engages in any dealings or transactions with any such Person.  The Company and its Subsidiaries are in compliance, in all material respects, with the USA Patriot Act.

 

(c)                                      No part of the proceeds from the sale of the Notes hereunder will knowingly be used, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended, assuming in all cases that such Act applies to the Company.

 

Section 5.17.                                            Status under Certain Statutes.  None of the Obligors or any Subsidiary is subject to regulation the Investment Company Act of 1940, as amended, under the Public Utility Holding Company Act of 2005, as amended, the ICC Termination Act of 1995, as amended, or the Federal Power Act, as amended.

 

Section 5.18.                                            Environmental Matters.  None of the Obligors or any Subsidiary has knowledge of any claim or has received any notice of any claim, and no proceeding has been instituted raising any claim against any Obligor or any of its Subsidiaries or any of their

 

11

 

respective real properties now or formerly owned, leased or operated by any of them, or other assets, alleging damage to the environment or any violation of any Environmental Laws, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect.  Except as otherwise disclosed to each Purchaser in writing:

 

(a)                             none of the Obligors or any Subsidiary has knowledge of any facts which would give rise to any claim, public or private, for violation of Environmental Laws or damage to the environment emanating from, occurring on or in any way related to real properties or to other assets now or formerly owned, leased or operated by any of them or their use, except, in each case, such as could not reasonably be expected to result in a Material Adverse Effect;

 

(b)                            none of the Obligors or any of its Subsidiaries has stored any Hazardous Materials on real properties now or formerly owned, leased or operated by any of them or has disposed of any Hazardous Materials in each case in a manner contrary to any Environmental Laws and in any manner that could reasonably be expected to result in a Material Adverse Effect; and

 

(c)                             all buildings on all real properties now owned, leased or operated by the Obligors or any of their Subsidiaries are in compliance with applicable Environmental Laws, except where failure to comply could not reasonably be expected to result in a Material Adverse Effect.

 

Section 5.19.                                            Notes Rank Pari Passu.  The respective obligations of the Obligors under this Agreement and the Notes rank pari passu in right of payment with all other senior unsecured Debt (actual or contingent) of the Obligors, including, without limitation, all senior unsecured Debt of the Obligors described in Schedule 5.15 hereto.

 

SECTION 6.                                                 REPRESENTATIONS OF THE PURCHASER.

 

Section 6.1.                                           Purchase for Investment.  Each Purchaser represents that it is purchasing the Notes for its own account or for one or more separate accounts maintained by it or for the account of one or more pension or trust funds and not with a view to the distribution thereof (other than any Notes purchased by Banc of America Securities LLC on the Closing Date which are intended to be resold to a “qualified institutional buyer” pursuant to Rule 144A of the Securities Act), provided that the disposition of such Purchaser’s or such pension or trust funds’ property shall at all times be within such Purchaser’s or such pension or trust funds’ control.  Each Purchaser understands that the Notes have not been registered under the Securities Act and may be resold only if registered pursuant to the provisions of the Securities Act or if an exemption from registration is available, except under circumstances where neither such registration nor such an exemption is required by law, and that the Company is not required to register the Notes.

 

Section 6.2.                                           Accredited Investor.  Each Purchaser represents that it is an “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act

 

12

 

acting for its own account (and not for the account of others) or as a fiduciary or agent for others (which others are also “accredited investors”).

 

Section 6.3.                                           Source of Funds.  Each Purchaser severally represents that at least one of the following statements is an accurate representation as to each source of funds (a “Source”) to be used by such Purchaser to pay the purchase price of the Notes to be purchased by such Purchaser hereunder:

 

(a)                             the Source is an “insurance company general account” (as the term is defined in the United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60) in respect of which the reserves and liabilities (as defined by the annual statement for life insurance companies approved by the National Association of Insurance Commissioners (the “NAIC Annual Statement”)) for the general account contract(s) held by or on behalf of any employee benefit plan together with the amount of the reserves and liabilities for the general account contract(s) held by or on behalf of any other employee benefit plans maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the same employee organization in the general account do not exceed 10% of the total reserves and liabilities of the general account (exclusive of separate account liabilities) plus surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of domicile; or

 

(b)                            the Source is a separate account that is maintained solely in connection with such Purchaser’s fixed contractual obligations under which the amounts payable, or credited, to any employee benefit plan (or its related trust) that has any interest in such separate account (or to any participant or beneficiary of such plan (including any annuitant)) are not affected in any manner by the investment performance of the separate account; or

 

(c)                             the Source is either (i) an insurance company pooled separate account, within the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of the PTE 91-38 and, except as disclosed by such Purchaser to the Company in writing pursuant to this clause (c), no employee benefit plan or group of plans maintained by the same employer or employee organization beneficially owns more than 10% of all assets allocated to such pooled separate account or collective investment fund; or

 

(d)                            the Source constitutes assets of an “investment fund” (within the meaning of Part V of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset manager” or “QPAM” (within the meaning of Part V of the QPAM Exemption), no employee benefit plan’s assets that are included in such investment fund, when combined with the assets of all other employee benefit plans established or maintained by the same employer or by an affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of such employer or by the same employee organization and managed by such QPAM, exceed 20% of the total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the QPAM (applying the definition of “control” in Section V(e) of the QPAM Exemption) owns a 5% or more interest in the Company

 

13

 

and (i) the identity of such QPAM and (ii) the names of all employee benefit plans whose assets are included in such investment fund have been disclosed to the Company in writing pursuant to this clause (d); or

 

(e)                             the Source constitutes assets of a “plan(s)” (within the meaning of Section IV of PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM” (within the meaning of Part IV of the INHAM Exemption), the conditions of Part I(a), (g) and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a person controlling or controlled by the INHAM (applying the definition of “control” in Section IV(d) of the INHAM Exemption) owns a 5% or more interest in the Company and (i) the identity of such INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the Source have been disclosed to the Company in writing pursuant to this clause (e); or

 

(f)                            the Source is a governmental plan; or

 

(g)                            the Source is one or more employee benefit plans, or a separate account or trust fund comprised of one or more employee benefit plans, each of which has been identified to the Company in writing pursuant to this clause (g); or

 

(h)                            the Source does not include assets of any employee benefit plan, other than a plan exempt from the coverage of ERISA.

 

As used in this Section 6.2, the terms “employee benefit plan,”  “governmental plan,” and “separate account” shall have the respective meanings assigned to such terms in section 3 of ERISA.

 

SECTION 7.                                                 INFORMATION AS TO COMPANY.

 

Section 7.1.                                           Financial and Business Information.  The Obligors shall deliver to each holder of Notes that is an Institutional Investor:

 

(a)                             Quarterly Statements — within 60 days after the end of each quarterly fiscal period in each fiscal year of the Parent Guarantor (other than the last quarterly fiscal period of each such fiscal year), duplicate copies of,

 

(i)                            a consolidated balance sheet of the Parent Guarantor and its Subsidiaries as at the end of such quarter, and

 

(ii)                              consolidated statements of income, changes in shareholders’ equity and cash flows of the Parent Guarantor and its Subsidiaries, for such quarter and (in the case of the second and third quarters) for the portion of the fiscal year ending with such quarter,

 

setting forth in each case in comparative form the figures for the corresponding periods in the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP

 

14

 

applicable to quarterly financial statements generally, and certified by a Senior Financial Officer as fairly presenting, in all material respects, the financial position of the companies being reported on and their results of operations and cash flows, subject to changes resulting from year-end adjustments, provided that delivery within the time period specified above of copies of the Parent Guarantor’s Quarterly Report on Form 10-Q prepared in compliance with the requirements therefor and filed with the Securities and Exchange Commission shall be deemed to satisfy the requirements of this Section 7.1(a);

 

(b)         Annual Statements — within 105 days after the end of each fiscal year of the Parent Guarantor, duplicate copies of,

 

(i)        a consolidated balance sheet of the Parent Guarantor and its Subsidiaries, as at the end of such year, and

 

(ii)       consolidated statements of income, changes in shareholders’ equity and cash flows of the Parent Guarantor and its Subsidiaries, for such year,

 

setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP, and accompanied by an opinion thereon of independent certified public accountants of recognized national standing, which opinion shall state that such financial statements present fairly, in all material respects, the financial position of the companies being reported upon and their results of operations and cash flows and have been prepared in conformity with GAAP, and that the examination of such accountants in connection with such financial statements has been made in accordance with generally accepted auditing standards, and that such audit provides a reasonable basis for such opinion in the circumstances, provided that the delivery within the time period specified above of the Parent Guarantor’s Annual Report on Form 10-K for such fiscal year (together with the Parent Guarantor’s annual report to shareholders, if any, prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in accordance with the requirements therefor and filed with the Securities and Exchange Commission shall be deemed to satisfy the requirements of this Section 7.1(b);

 

(c)          SEC and Other Reports — promptly upon their becoming available, one copy of (i) each financial statement, report, notice or proxy statement sent by the Company or any Subsidiary to its principal lending banks as a whole (excluding information sent to such banks in the ordinary course of administration of a bank facility, such as information relating to pricing and borrowing availability) or to its Obligors or any Subsidiary to public securities holders generally, and (ii) each regular or periodic report, each registration statement (without exhibits except as expressly requested by such holder), and each prospectus and all amendments thereto filed by the Obligors or any Subsidiary with the Securities and Exchange Commission and of all press releases and other statements made available generally by the Obligors or any Subsidiary to the public concerning developments that are Material; provided that any documents required to be delivered pursuant to this Section 7.1(c) shall be deemed to have been delivered on the

 

15

 

date on which the Company posts such documents, or provides a link thereto on the Company’s website;

 

(d)         Notice of Default or Event of Default — promptly, and in any event within five Business Days after a Responsible Officer becomes aware of the existence of any Default or Event of Default or that any Person has given any notice or taken any action with respect to a claimed default hereunder or that any Person has given any notice or taken any action with respect to a claimed default of the type referred to in Section 11(g), a written notice specifying the nature and period of existence thereof and what action the Obligors are taking or propose to take with respect thereto;

 

(e)          ERISA Matters — promptly, and in any event within five Business Days after a Responsible Officer becomes aware of any of the following, a written notice setting forth the nature thereof and the action, if any, that the Obligors or an ERISA Affiliate propose to take with respect thereto:

 

(i)         with respect to any Plan, any reportable event, as defined in Section 4043(c) of ERISA and the regulations thereunder, for which notice thereof has not been waived pursuant to such regulations as in effect on the date thereof; or

 

(ii)          the taking by the PBGC of steps to institute, or the threatening by the PBGC of the institution of, proceedings under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or the receipt by any Obligor or any ERISA Affiliate of a notice from a Multiemployer Plan that such action has been taken by the PBGC with respect to such Multiemployer Plan; or

 

(iii)          any event, transaction or condition that could result in the incurrence of any liability by any Obligor or any ERISA Affiliate pursuant to Title I or IV of ERISA or the imposition of a penalty or excise tax under the provisions of the Code relating to employee benefit plans, or the imposition of any Lien on any of the rights, properties or assets of any Obligor or any ERISA Affiliate pursuant to Title I or IV of ERISA or such penalty or excise tax provisions, if such liability or Lien, taken together with any other such liabilities or Liens then existing, could reasonably be expected to have a Material Adverse Effect;

 

(f)         Notices from Governmental Authority — promptly, and in any event within 30 days of receipt thereof, copies of any notice to any Obligor or any Subsidiary from any federal or state Governmental Authority relating to any order, ruling, statute or other law or regulation that could reasonably be expected to have a Material Adverse Effect; and

 

(g)         Requested Information — with reasonable promptness, such other data and information relating to the business, operations, affairs, financial condition, assets or

 

16

 

properties of any Obligor or any of its Subsidiaries or relating to the ability of any Obligor to perform its obligations hereunder and under the Notes as from time to time may be reasonably requested by any such holder of Notes.

 

Section 7.2.        Officer’s Certificate.  Each set of financial statements delivered to a holder of Notes pursuant to Section 7.1(a) or Section 7.1(b) hereof shall be accompanied by a certificate of a Senior Financial Officer setting forth:

 

(a)          Covenant Compliance — the information (including detailed calculations) required in order to establish whether the Obligors were in compliance with the requirements of Section 10.1 through Section 10.6  hereof, inclusive, during the quarterly or annual period covered by the statements then being furnished (including with respect to each such Section, where applicable, the calculations of the maximum or minimum amount, ratio or percentage, as the case may be, permissible under the terms of such Sections, and the calculation of the amount, ratio or percentage then in existence); and

 

(b)         Event of Default — a statement that such officer has reviewed the relevant terms hereof and has made, or caused to be made, under his or her supervision, a review of the transactions and conditions of the Obligors and their Subsidiaries from the beginning of the quarterly or annual period covered by the statements then being furnished to the date of the certificate and that such review shall not have disclosed the existence during such period of any condition or event that constitutes a Default or an Event of Default or, if any such condition or event existed or exists (including, without limitation, any such event or condition resulting from the failure of any Obligor or any Subsidiary to comply with any Environmental Law), specifying the nature and period of existence thereof and what action the Obligors shall have taken or propose to take with respect thereto.

 

Section 7.3.        Inspection.  The Obligors shall permit the representatives of each holder of Notes that is an Institutional Investor:

 

(a)          No Default — if no Default or Event of Default then exists, at the expense of such holder and upon reasonable prior notice to any Obligor, to visit the principal executive offices of the Obligors, to discuss the affairs, finances and accounts of the Obligors and their Subsidiaries with the Obligors’ officers, and (with the consent of the Obligors, which consent will not be unreasonably withheld) their independent public accountants) and (with the consent of the Obligors, which consent will not be unreasonably withheld) to visit the other offices and properties of the Obligors and each Subsidiary, all at such reasonable times and as often as may be reasonably requested in writing; and

 

(b)         Default — if a Default or Event of Default then exists, at the expense of the Obligors, to visit and inspect any of the offices or properties of the Obligors or any Subsidiary, to examine all their respective books of account, records, reports and other papers, to make copies and extracts therefrom, and to discuss their respective affairs, finances and accounts with their respective officers and independent public accountants

 

17

 

(and by this provision the Obligors authorize said accountants to discuss the affairs, finances and accounts of the Obligors and their Subsidiaries), all at such times and as often as may be requested.

 

SECTION 8.                                                 PAYMENT OF THE NOTES.

 

Section 8.1.        Required Prepayments.  (a)   On January 12, 2014 and on each January 12 thereafter to and including January 12, 2017 the Company will prepay $20,000,000 of the principal amount (or such lesser principal amount as shall then be outstanding) of the Notes at par and without payment of the Make-Whole Amount or any premium.  The entire unpaid principal amount of the Notes shall become due and payable on January 12, 2018.

 

(b)     Upon any partial prepayment of the Notes pursuant to Section 8.2 or Section 8.8, the principal amount of each required prepayment of the Notes  becoming due under this Section 8.1 on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount of the Notes is reduced as a result of such prepayment or purchase.

 

Section 8.2.        Optional Prepayments. The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the Notes, in an amount not less than $2,000,000 in the aggregate principal amount of the Notes to be prepaid in the case of a partial prepayment (or such lesser amount as shall be required to effect a partial prepayment resulting from an offer of prepayment pursuant to Section 10.6), at 100% of the principal amount so prepaid, together with interest accrued thereon to the date of such prepayment, plus the Make-Whole Amount determined for the prepayment date with respect to such principal amount of each Note then outstanding. The Company will give each holder of Notes written notice of each optional prepayment under this Section 8.2 not less than 20 days and not more than 60 days prior to the date fixed for such prepayment.  Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the Notes to be prepaid on such date, the principal amount of each Note held by such holder to be prepaid (determined in accordance with Section 8.3), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a Senior Financial Officer as to the estimated respective Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation.  Two Business Days prior to such prepayment, the Company shall deliver to each holder of Notes to be prepaid a certificate of a Senior Financial Officer specifying the calculation of each such Make-Whole Amount as of the specified prepayment date.

 

Section 8.3.        Allocation of Partial Prepayments.  In the case of each partial prepayment of the Notes, the principal amount of the Notes to be prepaid shall be allocated among all of the Notes at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof.

 

Section 8.4.        Maturity; Surrender, Etc.  In the case of each prepayment of Notes pursuant to this Section 8, the principal amount of each Note to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with

 

18

 

interest on such principal amount accrued to such date and the applicable Make-Whole Amount.  From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount as aforesaid, interest on such principal amount shall cease to accrue.  Any Note paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal amount of any Note.

 

Section 8.5.        Purchase of Notes.  The Obligors will not and will not permit any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding Notes except (a) upon the payment or prepayment of the Notes in accordance with the terms of this Agreement and the Notes or (b) pursuant to a written offer to purchase any outstanding Notes made by any Obligor or an Affiliate pro rata to the holders of all Notes at the time outstanding upon the same terms and conditions.  If the holders of more than 33% of the principal amount of the Notes then outstanding accept such offer, the Obligors shall promptly notify the remaining holders of such fact and the expiration date for the acceptance by holders of Notes of such offer shall be extended by the number of days necessary to give each such remaining holder at least three (3) Business Days from its receipt of such notice to accept such offer.  The Obligors will promptly cancel all Notes acquired by them or any Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant to any provision of this Agreement and no Notes may be issued in substitution or exchange for any such Notes.

 

Section 8.6.        Make-Whole Amount.  The term “Make-Whole Amount” means with respect to any Note an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such Note minus the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than zero.  For the purposes of determining the Make-Whole Amount, the following terms have the following meanings with respect to the Called Principal of such Note:

 

“Called Principal” means, the principal of the Note that is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.

 

“Discounted Value” means, the amount obtained by discounting all Remaining Scheduled Payments from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on such Note is payable) equal to the Reinvestment Yield.

 

“Reinvestment Yield” means, 0.50% plus the yield to maturity calculated by using (i) the yields reported, as of 10:00 A.M. (New York City time) on the second Business Day preceding the Settlement Date on screen “PX-1” on the Bloomberg Financial Market Service (or such other display as may replace Page PX1) on Bloomberg for the most recently issued actively traded on the run U.S. Treasury securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date, or (ii) if such yields are not reported as of such time or the yields reported as of such time are not ascertainable (including by way of interpolation), the Treasury Constant Maturity

 

19

 

Series Yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date, in Federal Reserve Statistical Release H.15 (519) (or any comparable successor publication) for actively traded U.S. Treasury securities having a constant maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date.

 

In the case of each determination under clause (i) or clause (ii), as the case may be, of the preceding paragraph, such implied yield will be determined, if necessary, by (a) converting U.S. Treasury bill quotations to bond-equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between (1) the applicable U.S. Treasury security with the maturity closest to and greater than such Remaining Average Life and (2) the applicable U.S. Treasury security with the maturity closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the applicable Note.

 

“Remaining Average Life” means, the number of years (calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment by (b) the number of years (calculated to the nearest one-twelfth year) that will elapse between the Settlement Date and the scheduled due date of such Remaining Scheduled Payment.

 

“Remaining Scheduled Payments” means, all payments of such Called Principal and interest thereon that would be due after the Settlement Date if no payment of such Called Principal were made prior to its scheduled due date, provided that if such Settlement Date is not a date on which interest payments are due to be made under the terms of such Note, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 8.2 or 12.1.

 

“Settlement Date” means, the date on which such Called Principal is to be prepaid pursuant to Section 8.2 or has become or is declared to be immediately due and payable pursuant to Section 12.1, as the context requires.

 

Section 8.7.        Withholding Taxes.  (a) Any and all payments required to be made hereunder or under the Notes by any Obligor shall be made in United States Dollars, free and clear of and without deduction for any and all present and future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto (excluding (A) taxes imposed on, or measured by reference to, the net income of, and franchise taxes imposed on, the holder of any Note by any of (i) the United States or any political subdivision thereof, (ii) the state jurisdiction under the laws of which such holder is organized or in which it is otherwise doing business or (iii) any political subdivision thereof and (B) taxes imposed by deduction or withholding by the United States if a holder does not comply with Section 8.7(f) hereof) (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities being hereinafter referred to as “Taxes”).  Subject to Section 8.7(d), if any Obligor shall be required by law to deduct any Taxes from or in respect of any sum required to be paid hereunder or under the

 

20

 

Notes to or for the benefit of the holder of any Note, (A) such sum shall be increased as may be necessary so that after making all required deductions (including deductions applicable to additional sums required to be paid under this Section 8.7) the amount received by such holder shall be equal to the sum which have been so received had no such deductions been made, (B) the Obligors shall make such deductions and (C) the Obligors shall pay the full amount of such deductions to the relevant taxation authority or other authority in accordance with applicable law.  Notwithstanding anything to the contrary in this Section 8.7(a), if a holder of a Note shall not be a U.S. Person, the Obligors shall only be required to indemnify such holder for the amount of Taxes it would pay if such holder were a U.S. Person.

 

(b)           In addition, each Obligor agrees to pay any Taxes which arise from any payment made hereunder or under any Note or from the execution, delivery or registration of, or otherwise with respect to, this Agreement or any Note (including, without limitation, any Taxes imposed on amounts payable under this Section 8.7).

 

(c)           Each Obligor shall jointly and severally indemnify each holder of a Note for the full amount of Taxes (including, without limitation, any Taxes imposed by any jurisdiction on amounts payable under this Section 8.7) paid by such holder and any liability (including penalties, interest and expenses) arising therefrom or required to be paid with respect thereto.  The holder of any Note agrees to notify the Obligors promptly of any payment of Taxes made by such holder and, if practicable, any request, demand or notice received in respect thereof prior to such payment.  Each holder of a Note shall be entitled to payment of this indemnification within 30 days from the date such holder makes written demand therefor to the Obligors.  A certificate as to the amount of such indemnification submitted to the Obligors by such holder, setting forth the calculation thereof, shall (absent manifest error) be conclusive and binding for all purposes.

 

(d)           In the event any Obligor desires to contest its liability for payment of any Taxes which it otherwise would be required to pay pursuant to Sections 8.7(a) or (b), an Obligor may elect not to make such payment, provided (i) such nonpayment is lawful and such Obligor has a reasonable basis, as set forth in an Officer’s Certificate delivered to the holder of the relevant Note, for such nonpayment, (ii) such Obligor promptly commences and continues to pursue diligently a contest of such liability, (iii) such Obligor keeps the holder of the relevant Note fully informed about the progress of such contest, (iv) such nonpayment does not result in any danger of sale, forfeiture or loss of, or the creation of any Lien on, any asset of any Obligor thereof, and (v) such nonpayment does not continue past the earliest date on which such Taxes are determined by a court or administrative body of competent jurisdiction to be due and payable by an Obligor and such determination is not stayed pending appeal.

 

(e)           Within 30 days after the date of any payment of Taxes, the Obligors shall furnish to the applicable holder or holders of Notes the original or a certified copy of a receipt evidencing payment thereof.

 

(f)            Each holder shall, if required by law to avoid withholding taxes imposed by the United States, provide to an Obligor a U.S. Form W-8BEN, Form W-8ECI, Form W-9 or any successor form thereto as requested and provided by such Obligor.

 

21

 

Section 8.8.        Change in Control.   (a) Notice of Change in Control.  The Company will, within 15 Business Days after any Responsible Officer has knowledge of the occurrence of any Change in Control, give written notice of such Change in Control to each holder of Notes and such notice shall contain and constitute an offer to prepay the Notes as described in subparagraph (b) of this Section 8.8 and shall be accompanied by the certificate described in subparagraph (e) of this Section 8.8.

 

(b)           Offer to Prepay Notes.  The offer to prepay Notes contemplated by subparagraph (a) of this Section 8.8 shall be an offer to prepay, in accordance with and subject to this Section 8.8, all, but not less than all, the Notes held by each holder (in this case only, “holder” in respect of any Note registered in the name of a nominee for a disclosed beneficial owner shall mean such beneficial owner) on a date specified in such offer (the “Proposed Prepayment Date”), which shall be not less than 20 days and not more than 30 days after the date of such offer (if the Proposed Prepayment Date shall not be specified in such offer, the Proposed Prepayment Date shall be the 20th day after the date of such offer).

 

(c)           Acceptance; Rejection.  A holder of Notes may accept the offer to prepay made pursuant to this Section 8.8 by causing a notice of such acceptance or rejection to be delivered to the Company at least 5 Business Days prior to the Proposed Prepayment Date.   A failure by a holder of Notes to respond to an offer to prepay made pursuant to this Section 8.8 shall be deemed to constitute a rejection of such offer by such holder.

 

(d)           Prepayment.  Prepayment of the Notes to be prepaid pursuant to this Section 8.8 shall be at 100% of the principal amount of such Notes, together with interest on such Notes accrued to the date of prepayment (without the payment of any Make-Whole Amount).  The prepayment shall be made on the Proposed Prepayment Date.

 

(e)           Officer’s Certificate.  Each offer to prepay the Notes pursuant to this Section 8.8 shall be accompanied by a certificate, executed by a Senior Financial Officer of the Company and dated the date of such offer, specifying: (i) the Proposed Prepayment Date; (ii) that such offer is made pursuant to this Section 8.8; (iii) the principal amount of each Note offered to be prepaid; (iv) the interest that would be due on each Note offered to be prepaid, accrued to the Proposed Prepayment Date; (v) that the conditions of this Section 8.8 have been fulfilled; and (vi) in reasonable detail, the nature and date or proposed date of the Change in Control.

 

(f)            Effect on Required Payments.  The amount of each payment of the principal of the Notes made pursuant to this Section 8.8 shall be applied against and reduce each of the then remaining principal payments due pursuant to Section 8.1 by a percentage equal to the aggregate principal amount of the Notes so paid divided by the aggregate principal amount of the Notes outstanding immediately prior to such payment.

 

(g)           “Change in Control” Defined.  “Change in Control” means any event or series of events by which:

 

any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such person

 

22

 

or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the ultimate “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934)), directly or indirectly, of more than 50% of the total voting power of the Voting Equity Interests of the Parent Guarantor, the Company or HOT-Nevada, as the case may be, provided that in determining whether such beneficial ownership has been acquired by any such “person” or “group”, all members of, or Affiliates of any of, the Current Control Group, shall be deemed not to be persons or members of such acquiring group.

 

SECTION 9.                                                 AFFIRMATIVE COVENANTS.

 

Each Obligor covenants that so long as any of the Notes are outstanding:

 

Section 9.1.        Compliance with Law.  Each Obligor will, and will cause each of its Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations to which each of them is subject, including, without limitation, Environmental Laws, and will obtain and maintain in effect all licenses, certificates, permits, franchises and other governmental authorizations necessary to the ownership of their respective properties or to the conduct of their respective businesses, in each case to the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules or regulations or failures to obtain or maintain in effect such licenses, certificates, permits, franchises and other governmental authorizations could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

Section 9.2.        Insurance.  Each Obligor will, and will cause each of its Subsidiaries to, maintain, with financially sound and reputable insurers, insurance with respect to their respective properties and businesses against such casualties and contingencies, of such types, on such terms and in such amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are maintained with respect thereto) as is customary in the case of entities of established reputations engaged in the same or a similar business and similarly situated except for any non-maintenance that would not reasonably be expected to have a Material Adverse Effect.

 

Section 9.3.        Maintenance of Properties.  Each Obligor will, and will cause each of its Subsidiaries to, maintain and keep, or cause to be maintained and kept, their respective properties in good repair, working order and condition (other than ordinary wear and tear), so that the business carried on in connection therewith may be properly conducted at all times, provided that this Section shall not prevent any Obligor or any Subsidiary from discontinuing the operation and the maintenance of any of its properties if such discontinuance is desirable in the conduct of its business and each Obligor has concluded that such discontinuance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

Section 9.4.        Payment of Taxes and Claims.  Each Obligor will, and will cause each of its Subsidiaries to, file all tax returns required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and payable on such returns and all other taxes, assessments, governmental charges, or levies imposed on them or any of their properties, assets, income or franchises, to the extent such taxes and assessments have become due and payable and before they have become delinquent and all claims for which sums have become due and payable that

 

23

 

have or might become a Lien on properties or assets of any Obligor or any Subsidiary not permitted by Section 10.5, provided that neither any Obligor nor any Subsidiary need pay any such tax or assessment or claims if (i) the amount, applicability or validity thereof is contested by any Obligor or such Subsidiary on a timely basis in good faith and in appropriate proceedings, and such Obligor or Subsidiary has established adequate reserves therefor in accordance with GAAP on the books of such Obligor or such Subsidiary or (ii) the non-filing or nonpayment, as the case may be, of all such taxes and assessments in the aggregate could not reasonably be expected to have a Material Adverse Effect.

 

Section 9.5.        Corporate Existence, Etc.  Subject to Sections 10.6 and 10.7, each Obligor will at all times preserve and keep in full force and effect its corporate or partnership existence, as the case may be, and will at all times preserve and keep in full force and effect such corporate or partnership existence, as the case may be, of each of its Subsidiaries (unless merged into an Obligor or a Subsidiary) and all rights and franchises of such Obligor and its Subsidiaries unless, in the good faith judgment of such Obligor, the termination of or failure to preserve and keep in full force and effect such corporate or partnership existence, as the case may be, right or franchise could not, individually or in the aggregate be expected, to have a Material Adverse Effect.

 

Section 9.6.        Additional Subsidiary Guarantors.  The Parent Guarantor will cause any Subsidiary which pursuant to either Bank Credit Agreement becomes a party to as a borrower or obligor, or otherwise guarantees, Debt in respect of either Bank Credit Agreement, to enter into the Subsidiary Guaranty and deliver to each of the holders of the Notes (concurrently with the incurrence of any such obligation pursuant to such Bank Credit Agreement) the following items:

 

(a)          a joinder agreement in respect of the Subsidiary Guaranty;

 

(b)         a certificate signed by the President, a Vice President or another authorized Responsible Officer of the Parent Guarantor making representations and warranties to the effect of those contained in Sections 5.4, 5.6 and 5.7 and in the Subsidiary Guaranty, with respect to such Subsidiary and the Subsidiary Guaranty, as applicable; and

 

(c)          an opinion of counsel (who may be in-house counsel for the Parent Guarantor) addressed to each of the holders of the Notes satisfactory to the Required Holders, to the effect that the Subsidiary Guaranty by such Person has been duly authorized, executed and delivered and that the Subsidiary Guaranty constitutes the legal, valid and binding contract and agreement of such Person enforceable in accordance with its terms, except as an enforcement of such terms may be limited by bankruptcy, insolvency, fraudulent conveyance and similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles.

 

Section 9.7.        Notes to Rank Pari Passu. The Notes and all other respective obligations under this Agreement of the Obligors are and at all times shall remain direct and unsecured obligations of the Obligors ranking pari passu as against the assets of the Obligors with all other Notes from time to time issued and outstanding hereunder without any preference among

 

24

 

themselves and pari passu with all other present and future unsecured Debt (actual or contingent) of the Obligors which is not expressed to be subordinate or junior in rank to any other unsecured Debt of the Obligors.

 

SECTION 10.                                           NEGATIVE COVENANTS.

 

Each Obligor covenants that so long as any of the Notes are outstanding:

 

Section 10.1.      Consolidated Net Worth.  The Obligors will not, at any time, permit Consolidated Net Worth to be less than the sum of (a) $500,000,000, plus (b) 25% of Consolidated Net Income (but only if a positive number) for each completed fiscal quarter, beginning with the fiscal quarter ending on November 30, 2010.

 

Section 10.2.      Leverage Ratio. The Obligors will not at any time permit the Leverage Ratio to exceed 3.25 to 1.00.

 

Section 10.3.      Interest Coverage Ratio.  The Obligors will not permit the Interest Coverage Ratio for each period of four consecutive fiscal quarters (calculated as at the end of each fiscal quarter for the four consecutive fiscal quarters then ended) to be less than 2.50 to 1.00.

 

Section 10.4.      Priority Debt. The Obligors will not, at any time, permit the aggregate amount of all Priority Debt to exceed 20% of Consolidated Net Worth (Consolidated Net Worth to be determined as of the end of the then most recently ended fiscal quarter of the Parent Guarantor).

 

Section 10.5.      Limitation on Liens.  The Obligors will not, and will not permit any of their Subsidiaries to, directly or indirectly create, incur, assume or permit to exist (upon the happening of a contingency or otherwise) any Lien on or with respect to any property or asset (including, without limitation, any document or instrument in respect of goods or accounts receivable) of any Obligor or any such Subsidiary, whether now owned or held or hereafter acquired, or any income or profits therefrom, or assign or otherwise convey any right to receive income or profits except:

 

(a)          Liens for taxes, assessments or other governmental charges that are not yet due and payable or the payment of which is not at the time required by Section 9.4;

 

(b)         Liens incidental to the conduct of business or the ownership of properties and assets (including landlords’, carriers’, warehousemen’s, mechanics’, materialmen’s and other similar Liens for sums not yet due and payable) and Liens to secure the performance of bids, tenders, leases, or trade contracts, or to secure statutory obligations (including obligations under workers compensation, unemployment insurance and other social security legislation), surety or appeal bonds or other Liens incurred in the ordinary course of business and not in connection with the borrowing of money;

 

(c)          leases or subleases granted to others, easements, rights-of-way, restrictions and other similar charges or encumbrances, in each case incidental to the ownership of property or assets or the ordinary conduct of the business of any Obligor or any of its

 

25

 

Subsidiaries, or Liens incidental to minor survey exceptions and the like, provided that such Liens do not, in the aggregate, materially detract from the value of such property;

 

(d)         any attachment or judgment Lien, unless the judgment it secures shall not, within 60 days after the entry thereof, have been discharged or execution thereof stayed pending appeal, or shall not have been discharged within 60 days after the expiration of any such stay;

 

(e)          Liens securing Debt of a Subsidiary (other than the Company or Troy Barbados) to an Obligor or to a Subsidiary;

 

(f)          Liens existing as of the date of Closing and reflected in Schedule 10.5;

 

(g)         Liens incurred after the date of Closing given to secure the payment of the purchase price incurred in connection with the acquisition, construction or improvement of property (other than accounts receivable or inventory) useful and intended to be used in carrying on the business of an Obligor or a Subsidiary, including Liens existing on such property at the time of acquisition or construction thereof or Liens incurred within 365 days of such acquisition or completion of such construction or improvement, provided that (i) the Lien shall attach solely to the property acquired, purchased, constructed or improved; (ii) at the time of acquisition, construction or improvement of such property, the aggregate amount remaining unpaid on all Debt secured by Liens on such property, whether or not assumed by an Obligor or a Subsidiary, shall not exceed the lesser of (y) the cost of such acquisition, construction or improvement or (z) the Fair Market Value of such property (as determined in good faith by one or more officers of an Obligor to whom authority to enter into the transaction has been delegated by the board of directors of such Obligor); and (iii) at the time of such incurrence and after giving effect thereto, no Default or Event of Default would exist;

 

(h)         any Lien existing on property of a Person immediately prior to its being consolidated with or merged into an Obligor or a Subsidiary or its becoming a Subsidiary, or any Lien existing on any property acquired by an Obligor or any Subsidiary at the time such property is so acquired (whether or not the Debt secured thereby shall have been assumed), provided that (i) no such Lien shall have been created or assumed in contemplation of such consolidation or merger or such Person’s becoming a Subsidiary or such acquisition of property, (ii) each such Lien on any acquired property shall extend solely to the item or items of property so acquired and, if required by the terms of the instrument originally creating such Lien, other property which is an improvement to or is acquired for specific use in connection with such acquired property, and (iii) at the time of such incurrence and after giving effect thereto, no Default or Event of Default would exist;

 

(i)           Liens securing Debt on property or assets of any Obligor or its Subsidiaries which Liens were given after the Closing Date, provided such Obligor makes, or causes to be made, effective provision whereby the Notes will be equally and ratably secured with any and all other obligations thereby secured, such security to be

 

26

 

pursuant to an agreement reasonably satisfactory to the Required Holders and, in any such case, the Notes shall have the benefit, to the fullest extent that, and with such priority as, the holders of the Notes may be entitled under applicable law, of an equitable Lien on such property;

 

(j)         any extensions, renewals or replacements of any Lien permitted by the preceding subparagraphs (f), (g) and (h) of this Section 10.5, provided that (i) no additional property shall be encumbered by such Liens, (ii) the unpaid principal amount of the Debt or other obligations secured thereby shall not be increased on or after the date of any extension, renewal or replacement, and (iii) at such time and immediately after giving effect thereto, no Default or Event of Default shall have occurred and be continuing; or

 

(k)        Liens securing Priority Debt of any Obligor or any Subsidiary, provided that the aggregate principal amount of any such Priority Debt shall be permitted by Section 10.4 and, provided  further that no such Liens under this Section 10.5(k) may secure any obligations under the Bank Credit Agreements.

 

Section 10.6.        Sales of Assets.  The Obligors will not, and will not permit any Subsidiary to, sell, lease or otherwise dispose of any substantial part (as defined below) of the assets of the Obligors and their Subsidiaries (including without limitation the sale or transfer of assets in a sale and leaseback transaction or a securitization transaction or a sale of equity interest in any Subsidiary); provided, however, that any Obligor or any Subsidiary may sell, lease or otherwise dispose of assets constituting a substantial part of the assets of the Obligors and its Subsidiaries if such assets are sold in an arms length transaction and, at such time and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing and an amount equal to the net proceeds received from such sale, lease or other disposition shall be used within 365 days of such sale, lease or disposition, in any combination:

 

(1)        to acquire productive assets used or useful in carrying on the business of the Obligors and their Subsidiaries and having a value at least equal to the value of such assets sold, leased or otherwise disposed of; or

 

(2)        to prepay or retire Senior Debt of the Parent Guarantor and/or its Subsidiaries, provided that  (i) the Parent Guarantor shall offer to prepay each outstanding Note in a principal amount which equals the Ratable Portion for such Note, and (ii) any such prepayment of the Notes shall be made at par, together with accrued interest thereon to the date of such prepayment, but without the payment of the Make-Whole Amount.  Any offer of prepayment of the Notes pursuant to this Section 10.6 shall be given to each holder of the Notes by written notice that shall be delivered not less than fifteen (15) days and not more than sixty (60) days prior to the proposed prepayment date.  Each such notice shall state that it is given pursuant to this Section and that the offer set forth in such notice must be accepted by such holder in writing and shall also set forth (i) the prepayment date, (ii) a description of the circumstances which give rise to the proposed prepayment and (iii) a calculation of the Ratable Portion for such holder’s Notes.  Each holder of the Notes which desires to have its Notes prepaid shall notify the Parent

 

27

 

Guarantor in writing delivered not less than five (5) Business Days prior to the proposed prepayment date of its acceptance of such offer of prepayment.  Prepayment of Notes pursuant to this Section 10.6 shall be made in accordance with Section 8.2 (but without payment of the Make-Whole Amount).

 

As used in this Section 10.6, a sale, lease or other disposition of assets shall be deemed to be a “substantial part” of the assets of the Parent Guarantor and its Subsidiaries if the book value of such assets, when added to the book value of all other assets sold, leased or otherwise disposed of by the Parent Guarantor and its Subsidiaries during the period of 12 consecutive months ending on the date of such sale, lease or other disposition, exceeds 10% of the book value of Consolidated Total Assets, determined as of the end of the fiscal year immediately preceding such sale, lease or other disposition; provided that there shall be excluded from any determination of a “substantial part” any (i) sale or disposition of assets in the ordinary course of business of the Obligors and their Subsidiaries, (ii) any transfer of assets from any Obligor to any other Obligor or any Subsidiary or from any Subsidiary to any Obligor or a Subsidiary, provided that, in each case, if the transferor is an Obligor or a Subsidiary Guarantor and the transferee is not another Obligor or another Subsidiary Guarantor, such transfer shall be deemed to be included in any determination of a “substantial part” unless such transferee shall have become obligated as a Subsidiary Guarantor under the Subsidiary Guaranty in accordance with the provisions of Section 9.6, and (iii) any sale or transfer of property acquired by any Obligor or any Subsidiary after the date of this Agreement to any Person within 365 days following the acquisition or construction of such property by any Obligor or any Subsidiary if such Obligor or such Subsidiary shall concurrently with such sale or transfer, lease such property, as lessee.

 

Section 10.7.        Merger and Consolidation.  The Obligors will not, and will not permit any of their Subsidiaries to, consolidate with or merge with any other Person or convey, transfer or lease substantially all of their assets in a single transaction or series of transactions to any Person; provided that:

 

(1)          any Subsidiary of an Obligor may (x) consolidate with or merge with, or convey, transfer or lease substantially all of its assets in a single transaction or series of transactions to, (i) an Obligor or a Subsidiary so long as in any merger or consolidation involving an Obligor, the Obligor shall be the surviving or continuing corporation or (ii) any other Person so long as the survivor is a Subsidiary, or (y) convey, transfer or lease all of its assets in compliance with the provisions of Section 10.6;

 

(2)        any Obligor may consolidate with or merge with, or convey, transfer or lease substantially all of its assets in a single transaction or series of transactions to, any other Obligor so long as (i) in any merger or consolidation involving the Parent Guarantor, the Parent Guarantor shall be the surviving or continuing corporation, and (ii) in any merger or consolidation involving the Company, if the Company is not the surviving or continuing corporation, such surviving or continuing corporation shall have executed and delivered to each holder of Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement of the Company and the Notes (pursuant to such agreements and instruments as shall be reasonably satisfactory to the Required Holders), and such surviving or continuing

 

28

 

corporation shall have caused to be delivered to each holder of Notes (A) an opinion of nationally recognized independent counsel, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and (B) an acknowledgment from each Guarantor and Subsidiary Guarantor that its respective Guaranty continues in full force and effect; and

 

(3)          the foregoing restriction does not apply to the consolidation or merger of the Parent Guarantor with, or the conveyance, transfer or lease of substantially all of the assets of the Parent Guarantor in a single transaction or series of transactions to, any Person so long as:

 

(a)          the successor formed by such consolidation or the survivor of such merger or the Person that acquires by conveyance, transfer or lease substantially all of the assets of the Parent Guarantor as an entirety, as the case may be (the “Successor Corporation”), shall be a solvent entity organized and existing under the laws of the United States of America, any State thereof or the District of Columbia;

 

(b)         if the Parent Guarantor is not the Successor Corporation, such Successor Corporation shall have executed and delivered to each holder of Notes its assumption of the due and punctual performance and observance of each covenant and condition of this Agreement (pursuant to such agreements and instruments as shall be reasonably satisfactory to the Required Holders), and the Successor Corporation shall have caused to be delivered to each holder of Notes (A) an opinion of nationally recognized independent counsel, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and (B) an acknowledgment from Troy Barbados and each Subsidiary Guarantor that its respective Guaranty continues in full force and effect; and

 

(c)          immediately after giving effect to such transaction no Default or Event of Default would exist.

 

Section 10.8.        Nature of Business.  The Obligors and their Subsidiaries will not engage in any business, if, as a result, when taken as a whole, the general nature of the business of the Obligors and their Subsidiaries would be substantially changed from the general nature of the business conducted by the Obligors and their Subsidiaries on the date of this Agreement as described in the Memorandum.

 

Section 10.9.        Transactions with Affiliates.  The Obligors will not and will not permit any Subsidiary to enter into directly or indirectly any Material transaction or Material group of related transactions (including without limitation the purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with any Affiliate (other than an Obligor or another Subsidiary), except in the ordinary course and upon fair and reasonable terms that are not materially less favorable to such Obligor or such Subsidiary than would be obtainable in a comparable arm’s-length transaction with a Person not an Affiliate.

 

29

 

Section 10.10.      Terrorism  Sanctions  Regulations.  The Company will not and will not permit any Subsidiary to (a) become a Person described or designated in the Specially Designated Nationals and Blocked Persons List of the Office of Foreign Assets Control or in Section 1 of the Anti-Terrorism Order or (b) knowingly engage in any dealings or transactions with any such Person

 

SECTION 11.                                           EVENTS OF DEFAULT.

 

An “Event of Default” shall exist if any of the following conditions or events shall occur and be continuing:

 

(a)          any Obligor defaults in the payment of any principal or Make-Whole Amount, if any, on any Note when the same becomes due and payable, whether at maturity or at a date fixed for prepayment or by declaration or otherwise; or

 

(b)         any Obligor defaults in the payment of any interest on any Note for more than five Business Days after the same becomes due and payable; or

 

(c)          any Obligor defaults in the performance of or compliance with any term contained in Section 10 or any Subsidiary Guarantor defaults in the performance of or compliance with any term of the Subsidiary Guaranty beyond any period of grace or cure period provided with respect thereto; or

 

(d)         any Obligor defaults in the performance of or compliance with any term contained herein (other than those referred to in paragraphs (a), (b) and (c) of this Section 11) and such default is not remedied within 30 days after the earlier of (i) a Responsible Officer obtaining actual knowledge of such default or (ii) any Obligor receiving written notice of such default from any holder of a Note (any such written notice to be identified as a “notice of default” and to refer specifically to this paragraph (d) of Section 11); or

 

(e)          any Subsidiary Guaranty or the guarantee in Section 14 hereof ceases to be a legally valid, binding and enforceable obligation or contract of the guarantor thereunder (other than upon a release of any Subsidiary Guarantor from a Subsidiary Guaranty in accordance with the terms of Section 2.2(b) hereof), or any guarantor thereunder or any Affiliate by, through or on account of any such Person, challenges the validity, binding nature or enforceability of any such guaranty; or

 

(f)          any representation or warranty made in writing by or on behalf of any Obligor or any Subsidiary Guarantor or by any officer of any Obligor or any Subsidiary Guarantor in any writing furnished in connection with the transactions contemplated hereby or by any Subsidiary Guaranty proves to have been false or incorrect in any material respect on the date as of which made; or

 

(g)         (i) any Obligor or any Subsidiary is in default (as principal or as guarantor or other surety) in the payment of any principal of or prepayment premium or interest (in

 

30

 

the payment amount of at least $100,000) on any Debt other than the Notes that is outstanding in an aggregate principal amount of at least $20,000,000 beyond any period of grace provided with respect thereto, or (ii) any Obligor or any Subsidiary is in default in the performance of or compliance with any term of any instrument, mortgage, indenture or other agreement relating to any Debt other than the Notes in an aggregate principal amount of at least $20,000,000 or any other condition exists, and as a consequence of such default or condition such Debt has become, or has been declared, due and payable or one or more Persons has the right to declare such Debt to be due and payable before its stated maturity or before its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or continuation of any event or condition (other than the passage of time or the right of the holder of Debt to convert such Debt into equity interests), any Obligor or any Subsidiary has become obligated to purchase or repay Debt other than the Notes before its regular maturity or before its regularly scheduled dates of payment in an aggregate outstanding principal amount of at least $20,000,000 or one or more Persons have the right to require any Obligor or any Subsidiary to purchase or repay such Debt; or

 

(h)         any Obligor, any Material Subsidiary or any Subsidiary Guarantor (i) is generally not paying, or admits in writing its inability to pay, its debts as they become due, (ii) files, or consents by answer or otherwise to the filing against it of, a petition for relief or reorganization or arrangement or any other petition in bankruptcy, for liquidation or to take advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv) consents to the appointment of a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate action for the purpose of any of the foregoing; or

 

(i)           a court or governmental authority of competent jurisdiction enters an order appointing, without consent by any Obligor, any of its Material Subsidiaries or any Subsidiary Guarantor, a custodian, receiver, trustee or other officer with similar powers with respect to it or with respect to any substantial part of its property, or constituting an order for relief or approving a petition for relief or reorganization or any other petition in bankruptcy or for liquidation or to take advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the dissolution, winding-up or liquidation of any Obligor, any of its Material Subsidiaries or any Subsidiary Guarantor, or any such petition shall be filed against any Obligor, any of its Material Subsidiaries or any Subsidiary Guarantor and such petition shall not be dismissed within 60 days; or

 

(j)           a final judgment or judgments at any one time outstanding for the payment of money aggregating in excess of $20,000,000 are rendered against one or more of any Obligor, its Subsidiaries or any Subsidiary Guarantor and which judgments are not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or are not discharged within 60 days after the expiration of such stay; or

 

31

 

(k)          if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or the Code for any plan year or part thereof or a waiver of such standards or extension of any amortization period is sought or granted under Section 412 of the Code, (ii) a notice of intent to terminate any Plan shall have been or is reasonably expected to be filed with the PBGC or the PBGC shall have instituted proceedings under Section 4042 of ERISA to terminate or appoint a trustee to administer any Plan or the PBGC shall have notified any Obligor or any ERISA Affiliate that a Plan may become a subject of any such proceedings, (iii) the aggregate “amount of unfunded benefit liabilities” (within the meaning of Section 4001(a)(18) of ERISA) under all Plans, determined in accordance with Title IV of ERISA, shall exceed $20,000,000, (iv) any Obligor or any ERISA Affiliate shall have incurred or is reasonably expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to employee benefit plans, (v) any Obligor or any ERISA Affiliate withdraws from any Multiemployer Plan, or (vi) any Obligor or any Subsidiary establishes or amends any employee welfare benefit plan that provides post-employment welfare benefits in a manner that could increase the liability of any Obligor or any Subsidiary thereunder; and any such event or events described in clauses (i) through (vi) above, either individually or together with any other such event or events, could reasonably be expected to have a Material Adverse Effect.

 

As used in Section 11(k), the terms “employee benefit plan” and “employee welfare benefit plan” shall have the respective meanings assigned to such terms in Section 3 of ERISA.

 

SECTION 12.              REMEDIES ON DEFAULT, ETC.

 

Section 12.1.        Acceleration.  (a) If an Event of Default with respect to any Obligor described in paragraph (h) or (i) of Section 11 (other than an Event of Default described in clause (i) of paragraph (h) or described in clause (vi) of paragraph (h) by virtue of the fact that such clause encompasses clause (i) of paragraph (h)) has occurred, all the Notes then outstanding shall automatically become immediately due and payable.

 

(b)             If any other Event of Default has occurred and is continuing, any holder or holders of more than 50% in aggregate principal amount of the Notes at the time outstanding may at any time at its or their option, by notice or notices to any Obligor, declare all the Notes then outstanding to be immediately due and payable.

 

(c)             If any Event of Default described in paragraph (a) or (b) of Section 11 has occurred and is continuing with respect to any Note, any holder or holders of Note at the time outstanding affected by such Event of Default may at any time, at its or their option, by notice or notices to any Obligor, declare all the Notes held by such holder or holders to be immediately due and payable.

 

Upon any Note’s becoming due and payable under this Section 12.1, whether automatically or by declaration, such Note will forthwith mature and the entire unpaid principal amount of such Note, plus (i) all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the Default Rate) and (ii) the Make-Whole Amount determined in

 

32

 

respect of such principal amount (to the full extent permitted by applicable law), shall all be immediately due and payable, in each and every case without presentment, demand, protest or further notice, all of which are hereby waived.  The Company acknowledges, and the parties hereto agree, that each holder of a Note has the right to maintain its investment in the Notes free from repayment by the Company (except as herein specifically provided for) and that the provision for payment of a Make-Whole Amount by the Company in the event that the Notes are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances.

 

Section 12.2.        Other Remedies.  If any Default or Event of Default has occurred and is continuing, and irrespective of whether any Notes have become or have been declared immediately due and payable under Section 12.1, the holder of any Note at the time outstanding may proceed to protect and enforce the rights of such holder by an action at law, suit in equity or other appropriate proceeding, whether for the specific performance of any agreement contained herein or in any Note, or for an injunction against a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted hereby or thereby or by law or otherwise.

 

Section 12.3.        Rescission.  At any time after the Notes have been declared due and payable pursuant to clause (b) or (c) of Section 12.1, the holders of not less than 51% in aggregate principal amount of the Notes then outstanding, by written notice to the Company, may rescind and annul any such declaration and its consequences if (a) the Company has paid all overdue interest on the Notes and all principal of and Make-Whole Amount, if any, on any Notes that are due and payable and are unpaid other than by reason of such declaration, and all interest on such overdue principal and Make-Whole Amount and (to the extent permitted by applicable law) any overdue interest in respect of the Notes, at the Default Rate, (b) all Events of Default and Defaults, other than non-payment of amounts that have become due solely by reason of such declaration, have been cured or have been waived pursuant to Section 18, and (c) no judgment or decree has been entered for the payment of any monies due pursuant hereto or to any Notes.  No rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of Default or Default or impair any right consequent thereon.

 

Section 12.4.        No Waivers or Election of Remedies, Expenses, Etc.  No course of dealing and no delay on the part of any holder of any Note in exercising any right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s rights, powers or remedies.  No right, power or remedy conferred by this Agreement or by any Note upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein or therein or now or hereafter available at law, in equity, by statute or otherwise.  Without limiting the obligations of the Company under Section 16, the Company will pay to the holder of each Note on demand such further amount as shall be sufficient to cover all costs and expenses of such holder incurred in any enforcement or collection under this Section 12, including, without limitation, reasonable attorneys’ fees, expenses and disbursements.

 

SECTION 13.                                           REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

 

Section 13.1.        Registration of Notes.  The Company shall keep at its principal executive office a register for the registration and registration of transfers of Notes.  The name and address

 

33

 

of each holder of one or more Notes, each transfer thereof and the name and address of each transferee of one or more Notes shall be registered in such register.  Prior to due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary.  The Company shall give to any holder of a Note that is an Institutional Investor promptly upon request therefor, a complete and correct copy of the names and addresses of all registered holders of Notes.

 

Section 13.2.        Transfer and Exchange of Notes.  Upon surrender of any Note at the principal executive office of the Company for registration of transfer or exchange (and in the case of a surrender for registration of transfer, duly endorsed or accompanied by a written instrument of transfer duly executed by the registered holder of such Note or its attorney duly authorized in writing and accompanied by the address for notices of each transferee of such Note or part thereof), the Company shall execute and deliver not more than 5 Business Days following surrender of such Note, at the Company’ expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered Note.  Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of the Note originally issued hereunder.  Each such new Note shall be dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon.  The Company may require payment of a sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such transfer of Notes.  Notes shall not be transferred in denominations of less than $100,000, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $100,000.  Any transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representation set forth in Section 6.2, provided that such holder may (in reliance upon information provided by the Company, which shall not be unreasonably withheld) make a representation to the effect that the purchase by such holder of any Note will not constitute a non-exempt prohibited transaction under Section 406(a) of ERISA.

 

The Notes have not been registered under the Securities Act or under the securities laws of any state and may not be transferred or resold unless registered under the Securities Act and all applicable state securities laws or unless an exemption from the requirement for such registration is available.

 

Section 13.3.        Replacement of Notes.  Upon receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation), and

 

(a)          in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $50,000,000, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or

 

34

 

(b)         in the case of mutilation, upon surrender and cancellation thereof,

 

the Company at its own expense shall execute and deliver not more than five Business Days following satisfaction of such conditions, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

 

SECTION 14.                                           GUARANTY

 

Section 14.1.        Guaranty.  Each Guarantor hereby irrevocably, absolutely, unconditionally, jointly and severally, guarantees unto the holders of the Notes (i) the full and prompt payment of the principal of, Make-Whole Amount, if any, interest and all other amounts due with respect to the Notes from time to time outstanding, as and when such amounts shall become due and payable, whether by lapse of time, upon redemption, prepayment or purchase, by extension or by acceleration or declaration or otherwise (including (to the extent legally enforceable) interest due on overdue payments of principal, Make-Whole Amount, if any, or interest at the rate set forth in the Notes or any other amounts due thereunder) in coin or currency of the United States of America which at the time of payment or demand therefor shall be legal tender for the payment of public and private debts, (ii) the full and prompt performance and observance by the Company of each and all of the obligations, covenants and agreements required to be performed or owed by the Company under the terms of the Notes and this Agreement, and (iii) the full and prompt payment, upon demand by any holder of any Note of all costs and expenses, legal or otherwise (including reasonable attorneys’ fees), if any, as shall have been expended or incurred in the protection or enforcement of any right or privilege under the Notes or this Agreement or in the protection or enforcement of any rights, privileges or liabilities under this guaranty or in any consultation or action in connection therewith or herewith.

 

Section 14.2.        Guaranty of Payment and Performance.  This is a guaranty of payment and performance and not a guaranty of collection, and each Guarantor hereby waives, to the fullest extent permitted by law, any right to require that any action on or in respect of any Note or this Agreement be brought against the Company or that resort be had to any direct or indirect security for the Notes or for this guaranty or any other remedy.  Any holder of any Note may, at its option, proceed hereunder against any Guarantor in the first instance to collect monies when due, the payment of which is guaranteed hereby, without first proceeding against the Company or any other Person and without first resorting to any direct or indirect security for the Notes, or for this guaranty or any other remedy.  The liability of each Guarantor hereunder shall in no way be affected or impaired by any acceptance by any holder of any Note of any direct or indirect security for, or other guaranties of, any indebtedness, liability or obligation of the Company or any other Person to any holder of any Note or by any failure, delay, neglect or omission by any holder of any Note to realize upon or protect any such indebtedness, liability or obligation or any notes or other instruments evidencing the same or any direct or indirect security therefor or by any approval, consent, waiver, or other action taken, or omitted to be taken, by any such holder.

 

Section 14.3.        General Provisions Relating to the Guaranty.  (a) Each Guarantor hereby consents and agrees that any holder or holders of any Notes from time to time, with or without

 

35

 

any further notice to or assent from any Guarantor may, without in any manner affecting the liability of any Guarantor under this guaranty, and upon such terms and conditions as any such holder or holders may deem advisable:

 

(i)           extend in whole or in part (by renewal or otherwise), modify, change, compromise, release or extend the duration of the time for the performance or payment of any indebtedness, liability or obligation of the Company or of any other Person secondarily or otherwise liable for any indebtedness, liability or obligations of the Company on the Notes, or waive any default with respect thereto, or waive, modify, amend or change any provision of any other instruments; provided that the procedures, if any, contained in such instruments to extend, modify, change, compromise, release, waive or amend the provisions of the relevant instruments relating to any such indebtedness shall be complied with; or

 

(ii)          sell, release, surrender, modify, impair, exchange or substitute any and all property, of any nature and from whomsoever received, held by, or for the benefit of, any such holder as direct or indirect security for the payment or performance of any indebtedness, liability or obligation of the Company or of any other Person secondarily or otherwise liable for any indebtedness, liability or obligation of the Company on the Notes; or

 

(iii)         settle, adjust or compromise any claim of the Company against any other Person secondarily or otherwise liable for any indebtedness, liability or obligation of the Company on the Notes.

 

Each Guarantor hereby ratifies and confirms any such extension, renewal, change, sale, release, waiver, surrender, exchange, modification, amendment, impairment, substitution, settlement, adjustment or compromise and that the same shall be binding upon them, and hereby waives, to the fullest extent permitted by law, any and all defenses, counterclaims or offsets which it might or could have by reason thereof, it being understood that each Guarantor shall at all times be bound by this guaranty and remain liable hereunder.

 

(b)             Each Guarantor hereby waives, to the fullest extent permitted by law: (i) notice of acceptance of this guaranty by the holders of the Notes or of the creation, renewal or accrual of any liability of the Company present or future, or of the reliance of such holders upon this guaranty (it being understood that every indebtedness, liability and obligation arising under the Notes or this Agreement shall conclusively be presumed to have been created, contracted or incurred in reliance upon the execution of this guaranty); (ii) demand of payment by any holder of any Note from the Company or any other Person indebted in any manner on or for any of the indebtedness, liabilities or obligations hereby guaranteed; and (iii) presentment for the payment by any holder of any Note or any other Person of the Notes or any other instrument, protest thereof and notice of its dishonor to any party thereto and to the Guarantors.  The obligations of each Guarantor under this guaranty and the rights of any holder of any Note to enforce such obligations by any proceedings, whether by action at law, suit in equity or otherwise, shall not be subject to any reduction, limitation, impairment or termination, whether by reason of any claim

 

36

 

of any character whatsoever or otherwise and shall not be subject to any defense, set-off, counterclaim (other than any compulsory counterclaim), recoupment or termination whatsoever.

 

(c)             The obligations of each Guarantor hereunder shall be binding upon such Guarantor and its respective successors and assigns, and shall remain in full force and effect irrespective of:

 

(i)         the genuineness, validity, regularity or enforceability of the Notes or this Agreement, or any of the terms of any thereof, the continuance of any obligation on the part of the Company or any other Person on the Notes or under this Agreement, or the power or authority or the lack of power or authority of the Company to issue the Notes or execute and deliver this Agreement, or to perform any of its obligations thereunder or the existence or continuance of the Company or any other Person as a legal entity; or

 

(ii)        any default, failure or delay, willful or otherwise, in the performance by the Company or any other Person of any obligations of any kind or character whatsoever of the Company or any other Person (including, without limitation, the obligations and undertakings of the Company or any other Person under the Notes or this Agreement); or

 

(iii)       any creditors’ rights, bankruptcy, receivership or other insolvency proceeding of the Company or any other Person or in respect of the property of the Company or any other Person or any merger, consolidation, reorganization, dissolution, liquidation, the sale of all or substantially all of the assets of or winding up of the Company or any other Person; or

 

(iv)       impossibility or illegality of performance on the part of the Company or any other Person of its obligations under the Notes, this Agreement, or any other instruments; or

 

(v)        in respect of the Company or any other Person, any change of circumstances, whether or not foreseen or foreseeable, whether or not imputable to the Company or any other Person, or other impossibility of performance through fire, explosion, accident, labor disturbance, floods, droughts, embargoes, wars (whether or not declared), civil commotion, acts of God or the public enemy, delays or failure of suppliers or carriers, inability to obtain materials, action of any Federal or state regulatory body or agency, change of law or any other causes affecting performance, or any other force majeure, whether or not beyond the control of the Company or any other Person and whether or not of the kind hereinbefore specified; or

 

(vi)       any attachment, claim, demand, charge, lien, order, process, encumbrance or any other happening or event or reason, similar or dissimilar to the foregoing, or any withholding or diminution at the source, by reason of any taxes, assessments, expenses, indebtedness, obligations or liabilities of any character, foreseen or unforeseen, and whether or not valid, incurred by or against any Person, or any claims, demands, charges or liens of any nature, foreseen or unforeseen, incurred by any Person, or against any sums payable under this guaranty, so that such sums would be rendered inadequate or would be unavailable to make the payments herein provided; or

 

 

37

 

(vii)      any order, judgment, decree, ruling or regulation (whether or not valid) of any court of any nation or of any political subdivision thereof or any body, agency, department, official or administrative or regulatory agency of any thereof or any other action, happening, event or reason whatsoever which shall delay, interfere with, hinder or prevent, or in any way adversely affect, the performance by any party of its respective obligations under the Notes, this Agreement or any instrument relating thereto; or

 

(viii)     the failure of any Guarantor to receive any benefit from or as a result of its execution, delivery and performance of this Agreement, including this Section 14;  or

 

(ix)        any failure or lack of diligence in collection or protection, failure in presentment or demand for payment, protest, notice of protest, notice of default and of nonpayment, any failure to give notice to a Guarantor of failure of the Company or any other Person to keep and perform any obligation, covenant or agreement under the terms of the Notes or this Agreement, or failure to resort for payment to the Company or to any other Person or to any other guaranty or to any property, security, liens or other rights or remedies; or

 

(x)         the acceptance of any additional security or other guaranty, the advance of additional money to the Company or any other Person, the renewal or extension of the Notes or amendments, modifications, consents or waivers with respect to the Notes or this Agreement, or the sale, release, substitution or exchange of any security for the Notes; or

 

(xi)        any defense whatsoever that the Company or any other Person might have to the payment of the Notes (principal, Make-Whole Amount, if any, or interest or any other amounts due thereunder, other than payment in cash thereof, or to the performance or observance of any of the provisions of this Agreement, whether through the satisfaction or purported satisfaction by the Company or any other Person of its debts due to any cause such as bankruptcy, insolvency, receivership, merger, consolidation, reorganization, dissolution, liquidation, winding-up or otherwise; or

 

(xii)       any act or failure to act with regard to the Notes or this Agreement, or anything which might vary the risk of any Guarantor; or

 

(xiii)      any other circumstance which might otherwise constitute a defense available to, or a discharge of, any Guarantor in respect of the obligations of the Guarantors under this guaranty;

 

provided that the specific enumeration of the above-mentioned acts, failures or omissions shall not be deemed to exclude any other acts, failures or omissions, though not specifically mentioned above, it being the purpose and intent of this guaranty that the obligations of each Guarantor shall be absolute and unconditional and shall not be discharged, impaired or varied except by the payment of (x) the principal of, Make-Whole Amount, if any, and interest on the Notes in accordance with their respective terms whenever the same shall become due and payable as in the Notes provided and at the place specified in and all in the manner and with the effect provided in

 

38

 

the Notes and this Agreement, as amended or modified from time to time.  Without limiting the foregoing, it is understood that repeated and successive demands may be made and recoveries may be had hereunder as and when, from time to time, the Company shall default under the terms of the Notes or this Agreement and that notwithstanding recovery hereunder for or in respect of any given default or defaults by the Company under the Notes or this Agreement, this guaranty shall remain in full force and effect and shall apply to each and every subsequent default.

 

(d)            All rights of any holder of any Note may be transferred or assigned at any time and shall be considered to be transferred or assigned at any time or from time to time upon the transfer of such Note whether with or without the consent of or notice to a Guarantor under this guaranty or to the Company

 

(e)             Each Guarantor hereby subordinates to the rights of the holders of Notes under this Agreement and the Notes and agrees to defer any assertion, until such time as the Notes have been indefeasibly paid in cash in full, of any claim or other rights that it may now or hereafter acquire against the Company that arise from the existence, payment, performance or enforcement of a Guarantor’s obligations under this guaranty, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of any holder or holders of Notes against the Company, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from the Company, directly or indirectly, in cash or other property or by set off or in any other manner, payment or security on account of such claim, remedy or right.  If any amount shall be paid to a Guarantor in violation of the preceding sentence at any time prior to the indefeasible cash payment in full of the Notes and all other amounts payable under this Agreement and this guaranty, such amount shall be held in trust for the benefit of the holders of the Notes and shall forthwith be paid to the holders of the Notes to be credited and applied to the amounts due or to become due with respect to the Notes and all other amounts payable under this Agreement and this guaranty, whether matured or unmatured.  Each Guarantor acknowledges that it will receive material direct and indirect benefits from the financing arrangements contemplated by this Agreement and that the agreement set forth in this paragraph is knowingly made in contemplation of such benefits.

 

(f)             Each Guarantor agrees that, to the extent the Company or any other Person makes any payment on any Note, which payment or any part thereof is subsequently invalidated, voided, declared to be fraudulent or preferential, set aside, recovered, rescinded or is required to be retained by or repaid to a trustee, receiver, or any other Person under any bankruptcy code, common law, or equitable cause, then and to the extent of such payment, the obligation or the part thereof intended to be satisfied shall be revived and continued in full force and effect with respect to each Guarantor’s obligations hereunder, as if said payment had not been made.  The liability of each Guarantor hereunder shall not be reduced or discharged, in whole or in part, by any payment to any holder of any Note from any source that is thereafter paid, returned or refunded in whole or in part by reason of the assertion of a claim of any kind relating thereto, including, but not limited to, any claim for breach of contract, breach of warranty, preference, illegality, invalidity, or fraud asserted by any account debtor or by any other Person.

 

39

 

SECTION 15.              PAYMENTS ON NOTES.

 

Section 15.1.             Place of Payment.  Subject to Section 15.2, payments of principal, Make-Whole Amount, if any, and interest becoming due and payable on the Notes shall be made in New York, New York at the principal office of Banc of America N.A. in such jurisdiction.  The Company may at any time, by notice to each holder of a Note, change the place of payment of the Notes so long as such place of payment shall be either the principal office of the Company in such jurisdiction or the principal office of a bank or trust company in such jurisdiction.

 

Section 15.2.             Home Office Payment.  So long as any Purchaser or such Purchaser’s nominee shall be the holder of any Note, and notwithstanding anything contained in Section 15.1 or in such Note to the contrary, the Company will pay all sums becoming due on such Note for principal, Make-Whole Amount, if any, and interest by the method and at the address specified for such purpose for such Purchaser on Schedule A hereto or by such other method or at such other address as such Purchaser shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Company made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Company at its principal executive office or at the place of payment most recently designated by the Company pursuant to Section 15.1.  Prior to any sale or other disposition of any Note held by any Purchaser or such Person’s nominee, such Person will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Company in exchange for a new Note or Notes pursuant to Section 13.2.  The Company will afford the benefits of this Section 15.2 to any Institutional Investor that is the direct or indirect transferee of any Note.

 

SECTION 16.              EXPENSES, ETC.

 

Section 16.1.             Transaction Expenses.  Whether or not the transactions contemplated hereby are consummated, the Company will pay all reasonable costs and expenses (including reasonable attorneys’ fees of one special counsel for the Purchasers and, if reasonably required, local or other counsel) incurred by each Purchaser and each other holder of a Note in connection with such transactions and in connection with any amendments, waivers or consents under or in respect of this Agreement or the Notes (whether or not such amendment, waiver or consent becomes effective), including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or determining whether or how to enforce or defend) any rights under this Agreement or the Notes or in responding to any subpoena or other legal process or informal investigative demand by any Governmental Authority issued in connection with this Agreement or the Notes, or by reason of being a holder of any Note, and (b) the costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency or bankruptcy of any Obligor or any Subsidiary or in connection with any work-out or restructuring of the transactions contemplated hereby and by the Notes.  The Company will pay, and will save each Purchaser and each other holder of a Note harmless from, all claims in respect of any reasonable fees, costs or expenses if any, of brokers and finders (other than those retained by the Purchasers).

 

40

 

Section 16.2.             Survival.  The obligations of the Company under this Section 16 will survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and the termination of this Agreement.

 

SECTION 17.              SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

 

All representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes, the purchase or transfer by any Purchaser of any such Note or portion thereof or interest therein and the payment of any Note may be relied upon by any subsequent holder of any such Note, regardless of any investigation made at any time by or on behalf of any Purchaser or any other holder of any such Note.  All statements contained in any certificate or other instrument delivered by or on behalf of any Obligor pursuant to this Agreement shall be deemed representations and warranties of the Obligors under this Agreement.  Subject to the preceding sentence, this Agreement and the Notes embody the entire agreement and understanding between the Purchasers and the Company and supersede all prior agreements and understandings relating to the subject matter hereof.

 

SECTION 18.              AMENDMENT AND WAIVER.

 

Section 18.1.             Requirements.  (a) This Agreement and the Notes may be amended, and the observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent of the Obligors and the Required Holders, except that (i) no amendment or waiver of any of the provisions of Section 1, 2, 3, 4, 5, 6, 14 or 22 hereof, or any defined term (as it is used in any such Section), will be effective as to any holder of Notes unless consented to by such holder of Notes in writing, and (ii) no such amendment or waiver may, without the written consent of all of the holders of Notes at the time outstanding affected thereby, (A) subject to the provisions of Section 12 relating to acceleration or rescission, change the amount or time of any prepayment or payment of principal of, or reduce the rate or change the time of payment or method of computation of interest or of the Make-Whole Amount on, the Notes, (B) change the percentage of the principal amount of the Notes the holders of which are required to consent to any such amendment or waiver, or (C) amend any of Sections 8, 11(a), 11(b), 12, 14, 18 or 21.

 

Section 18.2.             Solicitation of Holders of Notes.

 

(a)             Solicitation.  The Company will provide each holder of the Notes (irrespective of the amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the date a decision is required, to enable such holder to make an informed and considered decision with respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof or of the Notes.  The Company will deliver executed or true and correct copies of each amendment, waiver or consent effected pursuant to the provisions of this Section 18 to each holder of outstanding Notes promptly following the date on which it is executed and delivered by, or receives the consent or approval of, the requisite holders of Notes.

 

(b)             Payment.  The Company will not directly or indirectly pay or cause to be paid any remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant 

 

41

 

any security, to any holder of Notes as consideration for or as an inducement to the entering into by such holder of Notes of any waiver or amendment of any of the terms and provisions hereof unless such remuneration is concurrently paid, or security is concurrently granted, on the same terms, ratably to each holder of Notes then outstanding even if such holder did not consent to such waiver or amendment.

 

(c)             Consent in Contemplation of Transfer.  Any consent made pursuant to this Section 18 by a holder of Notes that has transferred or has agreed to transfer its Notes to the Company, any Subsidiary or any Affiliate of the Company and has provided or has agreed to provide such written consent as a condition to such transfer shall be void and of no force or effect except solely as to such holder, and any amendments effected or waivers granted or to be effected or granted that would not have been or would not be so effected or granted but for such consent (and the consents of all other holders of Notes that were acquired under the same or similar conditions) shall be void and of no force or effect except solely as to such holder.

 

Section 18.3.             Binding Effect, Etc.  Any amendment or waiver consented to as provided in this Section 18 applies equally to all holders of Notes and is binding upon them and upon each future holder of any Note and upon the Company without regard to whether such Note has been marked to indicate such amendment or waiver.  No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon.  No course of dealing between the Company and the holder of any Note nor any delay in exercising any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of such Note.  As used herein, the term “this Agreement” and references thereto shall mean this Agreement as it may from time to time be amended or supplemented.

 

Section 18.4.             Notes Held by Company, Etc.  Solely for the purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement or the Notes, or have directed the taking of any action provided herein or in the Notes to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly or indirectly owned by any Obligor or any of its Affiliates shall be deemed not to be outstanding.

 

SECTION 19.              NOTICES.

 

All notices and communications provided for hereunder shall be in writing and sent (a) by telefacsimile if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by a recognized overnight delivery service (with charges prepaid).  Any such notice must be sent:

 

(i)         if to a Purchaser or such Purchaser’s nominee, to such Purchaser or such Purchaser’s nominee at the address specified for such communications in Schedule A to this Agreement, or at such other address as such Purchaser or such Purchaser’s nominee shall have specified to the Company in writing pursuant to this Section 19;

 

42

 

(ii)        if to any other holder of any Note, to such holder at such address as such other holder shall have specified to the Company in writing pursuant to this Section 19, or

 

(iii)         if to any Obligor, to such Obligor at its address set forth at the beginning hereof to the attention of Chief Financial Officer, with a copy to the General Counsel, or at such other address as such Obligor shall have specified to the holder of each Note in writing.

 

Notices under this Section 19 will be deemed given only when actually received.

 

SECTION 20.              REPRODUCTION OF DOCUMENTS.

 

This Agreement and all documents relating thereto, including, without limitation, (a) consents, waivers and modifications that may hereafter be executed, (b) documents received by each Purchaser at the Closing (except the Notes themselves), and (c) financial statements, certificates and other information previously or hereafter furnished to each Purchaser, may be reproduced by such Purchaser by any photographic, photostatic, microfilm, microcard, miniature photographic or other similar process and such Purchaser may destroy any original document so reproduced.  Each Obligor agrees and stipulates that, to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and whether or not such reproduction was made by such Purchaser in the regular course of business) and any enlargement, facsimile or further reproduction of such reproduction shall likewise be admissible in evidence.  This Section 20 shall not prohibit any Obligor or any other holder of Notes from contesting any such reproduction to the same extent that it could contest the original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

 

SECTION 21.              CONFIDENTIAL INFORMATION.

 

For the purposes of this Section 21, “Confidential Information” means information delivered to any Purchaser by or on behalf of any Obligor or any Subsidiary in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature and that was clearly marked or labeled or otherwise adequately identified when received by such Purchaser as being confidential information of any Obligor or such Subsidiary, provided that such term does not include information that (a) was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser or any Person acting on such Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through disclosure by any Obligor or any Subsidiary or any other Person who the Purchaser knows is bound by a confidentiality agreement with any Obligor or any Subsidiary, or (d) constitutes financial statements delivered to such Purchaser under Section 7.1 that are otherwise publicly available.  Each Purchaser will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by such Purchaser in good faith to protect confidential information of third parties delivered to such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to (i) such Purchaser’s directors, trustees, officers, employees, agents, attorneys and 

 

43

 

affiliates (to the extent such disclosure reasonably relates to the administration of the investment represented by such Purchaser’s Notes), (ii) such Purchaser’s financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 21, (iii) any other holder of any Note, (iv) any Institutional Investor to which such Purchaser sells or offers to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 21), (v) any Person from which such Purchaser offers to purchase any security of any Obligor (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions of this Section 21), (vi) any federal or state regulatory authority having jurisdiction over such Purchaser, (vii) the National Association of Insurance Commissioners or any similar organization, or any nationally recognized rating agency that requires access to information about such Purchaser’s investment portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such Purchaser, (x) in response to any subpoena or other legal process and prior to such disclosure the Purchaser will endeavor to provide the Obligors prior written notice of such disclosure to the extent permitted by law, although the failure to so provide any Obligor with such prior written notice of such disclosure of Confidential Information will not subject such Purchaser to any liability, (y) in connection with any litigation to which such Purchaser is a party or (z) if an Event of Default has occurred and is continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies under such Purchaser’s Notes and this Agreement.  Each holder of a Note, by its acceptance of a Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this Section 21 as though it were a party to this Agreement.  On reasonable request by any Obligor in connection with the delivery to any holder of a Note of information required to be delivered to such holder under this Agreement or requested by such holder (other than a holder that is a party to this Agreement or its nominee), such holder will enter into an agreement with the Obligors embodying the provisions of this Section 21.

 

SECTION 22.              SUBSTITUTION OF PURCHASER.

 

Each Purchaser shall have the right to substitute any one of such Purchaser’s Affiliates as the purchaser of the Notes that such Purchaser has agreed to purchase hereunder, by written notice to the Company, which notice shall be signed by both such Purchaser and such Purchaser’s Affiliate, shall contain such Affiliate’s agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the accuracy with respect to it of the representations set forth in Section 6.  Upon receipt of such notice, wherever the word “Purchaser” is used in this Agreement (other than in this Section 22), such word shall be deemed to refer to such Affiliate in lieu of such Purchaser.  In the event that such Affiliate is so substituted as a purchaser hereunder and such Affiliate thereafter transfers to such Purchaser all of the Notes then held by such Affiliate, upon receipt by the Company of notice of such transfer, wherever the word “Purchaser” is used in this Agreement (other than in this Section 22), such word shall no longer be deemed to refer to such Affiliate, but shall refer to such Purchaser, and such Purchaser shall have all the rights of an original holder of the Notes under this Agreement.

 

44

 

SECTION 23.              MISCELLANEOUS.

 

Section 23.1.             Successors and Assigns.  All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any subsequent holder of a Note) whether so expressed or not.

 

Section 23.2.             Payments Due on Non-Business Days.  Anything in this Agreement or the Notes to the contrary notwithstanding (but without limiting the requirement in Section 8.4 that the notice of any optional prepayment specify a Business Day as the date fixed for such prepayment), any payment of principal of or Make-Whole Amount or interest on any Note that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; provided that if the maturity date of any Note is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.

 

Section 23.3.             Accounting Terms.  All accounting terms used herein which are not expressly defined in this Agreement have the meanings respectively given to them in accordance with GAAP.  Except as otherwise specifically provided herein, (i) all computations made pursuant to this Agreement shall be made in accordance with GAAP, and (ii) all financial statements shall be prepared in accordance with GAAP.  For purposes of determining compliance with the covenants set out in this Agreement, any election by the Company to measure an item of Debt using fair value (as permitted by Statement of Financial Accounting Standards Nos. 157 or 159) shall be disregarded and such determination shall be made by valuing indebtedness at 100% of the outstanding principal thereof.

 

Section 23.4.             Severability.  Any provision of this Agreement that 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 (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction.

 

Section 23.5.             Construction.  Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant.  Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person.

 

Section 23.6.             Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument.  Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto.

 

45

 

Section 23.7.             Governing Law.  This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other than such State.

 

Section 23.8.             Consent to Jurisdiction; Service of Process; Judgment Currency; Waiver of Jury Trial.  (a) Each Obligor irrevocably submits to the nonexclusive in personam jurisdiction of any New York State or federal court sitting in New York City, over any suit, action or proceeding arising out of or relating to this Agreement or the Notes.  To the fullest extent it may effectively do so under applicable law, each Obligor irrevocably waives and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it is not subject to the in personam jurisdiction of any such court, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum.

 

(b)             Each Obligor agrees, to the fullest extent it may effectively do so under applicable law, that a final judgment in any suit, action or proceeding of the nature referred to in paragraph (a) of this Section 23.8 brought in any such court shall be conclusive and binding upon such party, subject to rights of appeal and may be enforced in the courts of the United States of America or the State of New York (or any other courts to the jurisdiction of which such party is or may be subject) by a suit upon such judgment.

 

(c)             Each Obligor consents to process being served in any suit, action or proceeding of the nature referred to in paragraph (a) of this Section 23.8 by mailing a copy thereof by registered or certified mail, postage prepaid, return receipt requested, to the address of each Obligor specified in Section 19 or at such other address of which any holder shall then have been notified pursuant to said Section or to any agent for service of process appointed pursuant to the provisions of Section 23.9.  Each Obligor agrees that such service upon receipt (i) shall be deemed in every respect effective service of process upon it in any such suit, action or proceeding and (ii) shall, to the full extent permitted by law, be taken and held to be valid personal service upon and personal delivery to such party.  Notices hereunder shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United States Postal Service or any reputable commercial delivery service.

 

(d)             Nothing in this Section 23.8 shall affect the right of any holder of Notes to serve process in any manner permitted by law, or limit any right that the holders of any of the Notes may have to bring proceedings against any Obligor in the courts of any appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one jurisdiction in any other jurisdiction.

 

(e)             Any payment on account of an amount that is payable hereunder or under the Notes by any Obligor in United States Dollars which is made to or for the account of any holder of Notes in currency of any other jurisdiction, or in the lawful currency of any other country, whether as a result of any judgment or order or the enforcement thereof or the realization of any security or the liquidation of such party, shall constitute a discharge of such Person’s obligations under this Agreement or the Notes only to the extent of the amount of United States Dollars which such holder could purchase in the foreign exchange markets with the amount of the 

 

46

 

currency of such other jurisdiction, or other currency, as the case may be, in accordance with normal banking procedures at the rate of exchange prevailing on the Business Day following receipt of the payment first referred to above.  If the amount of United States Dollars that could be so purchased is less than the amount of United States Dollars originally due to such holder, each Obligor, as the case may be, agrees, to the full extent permitted by law, to indemnify and save harmless such holder from and against all loss or damage arising out of or as a result of such deficiency.  This indemnity shall, to the fullest extent permitted by law, constitute an obligation separate and independent from the other obligations contained in this Agreement and the Notes, shall give rise to a separate and independent cause of action, shall apply irrespective of any indulgence granted by such holder from time to time and, shall continue in full force and effect notwithstanding any judgment or order for a liquidated sum in respect of an amount due hereunder or the Notes or under any judgment or order.

 

(f)              Each Obligor waives to the fullest extent permitted by law trial by jury in any action brought on or with respect to this Agreement or the Notes or any other document executed in connection herewith or therewith.

 

Section 23.9.       Process Agent.  Each Obligor hereby designates and appoints CT Corporation System (or any successor corporation), at its office at 111 Eighth Avenue, New York, New York 10011, as its authorized agent to accept and acknowledge, on its behalf or on behalf of any other Obligor, service of any and all process which may be served in any such action, suit or proceeding with respect to any matter as to which it or any other Obligor has submitted to jurisdiction as set forth in this Section 23.9, and agrees that service upon such authorized agent shall be deemed in every respect service of process upon any Obligor, or their respective successors or assigns, and, to the extent permitted by applicable law, shall be taken and held to be valid personal service upon such Obligor on its behalf or on behalf of any other Obligor.  Such designation and appointment shall be irrevocable.  Each Obligor represents and warrants that CT Corporation System has agreed to act as such agent for service of process.  Each Obligor will take all action, including the filing of any and all documents and instruments, as may be necessary to continue in full force and effect the designation and appointment as such agent of CT Corporation System or any successor corporation or such other corporation as shall be satisfactory to the Required Holders, so that each Obligor shall at all times have an agent for service of process for the above purposes in the County of New York, State of New York.

 

Section 23.10.       Maximum Interest Payable.  Each Obligor, each Purchaser and each other holder of Notes specifically intends and agrees to limit contractually the amount of interest payable under this Agreement, the Notes and all other instruments and agreements relating hereto and thereto to the maximum amount of interest lawfully permitted to be charged under applicable law.  Therefore, none of the terms of this Agreement, the Notes or any instrument pertaining to or relating to this Agreement or the Notes shall ever be construed to create a contract to pay interest at a rate in excess of the maximum rate permitted to be charged under applicable law, and none of the Obligors or any other party liable or to become liable hereunder, under the Notes, and Guaranty or under any other instruments and agreements related hereto and thereto shall ever be liable for interest in excess of the amount determined at such maximum rate, and the provisions of this Section 23.10 shall control over all other provisions of this Agreement, any Notes, any Guaranty or any other instrument pertaining to or relating to the transactions herein 

 

47

 

contemplated.  If any amount of interest taken or received by a Purchaser or holder of a Note shall be in excess of said maximum amount of interest which, under applicable law, could lawfully have been collected by such Purchaser or holder incident to such transactions, then such excess shall be deemed to have been the result of a mathematical error by all parties hereto and shall be refunded promptly by the Person receiving such amount to the party paying such amount, or, at the option of the recipient, credited ratably against the unpaid principal amount of the Note or Notes held by such Purchaser or holder, respectively.  All amounts paid or agreed to be paid in connection with such transactions which would under applicable law be deemed “interest” shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the stated term of this Agreement and the Notes.  As used in this Section 23.10, “applicable law” means the law in effect from time to time which permits the charging and collection of the highest permissible lawful, nonusurious rate of interest on the transactions herein contemplated, and “maximum rate” means, with respect to each of the Notes, the maximum lawful, nonusurious rates of interest (if any) which under applicable law may be charged to the Company from time to time with respect to such Notes.

 

48

 

The execution hereof by the Purchasers shall constitute a contract among the Obligors and the Purchasers for the uses and purposes hereinabove set forth.  This Agreement may be executed in any number of counterparts, each executed counterpart constituting an original but all together only one agreement.

 

 

	
 
    	
Very   truly yours,
    
	
 
    	
 
    
	
 
    	
HELEN OF TROY LIMITED, A BERMUDA COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By 
    	
/s/ Gerald J. Rubin
    
	
 
    	
 
    	
Name: Gerald J. Rubin
    
	
 
    	
 
    	
Title:   Chairman, Chief Executive Officer and President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HELEN OF TROY L.P., A TEXAS LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
By:
    	
Helen   of Troy Nevada Corporation,
    
	
 
    	
 
    	
a   Nevada corporation, Its General Partner
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By 
    	
/s/ Gerald J. Rubin
    
	
 
    	
 
    	
Name:   Gerald J. Rubin
    
	
 
    	
 
    	
Title:   Chairman, Chief Executive Officer and President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HELEN OF TROY LIMITED, A BARBADOS COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By 
    	
/s/ Gerald J. Rubin
    
	
 
    	
 
    	
Name: Gerald J. Rubin
    
	
 
    	
 
    	
Title:   Chairman, Chief Executive Officer and President
    
				

 

49

 

Accepted as of the date first written above.

 

	
 
    	
ING   LIFE INSURANCE AND ANNUITY COMPANY
    
	
 
    	
ING   USA ANNUITY AND LIFE INSURANCE COMPANY
    
	
 
    	
RELIASTAR   LIFE INSURANCE COMPANY
    
	
 
    	
RELIASTAR LIFE INSURANCE COMPANY OF NEW
   YORK
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
ING   Investment Management LLC, as Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By   
    	
/s/   Christopher P. Lyons
    
	
 
    	
 
    	
Name: Christopher P. Lyons
    
	
 
    	
 
    	
Title: Senior Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ALLSTATE   LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By   
    	
/s/   Breege Farrell
    
	
 
    	
 
    	
Name: Breege Farrell
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By   
    	
/s/   Jerry D. Zinkula
    
	
 
    	
 
    	
Name: Jerry D. Zinkula
    
	
 
    	
 
    	
Authorized   Signatories
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
THE   LINCOLN NATIONAL LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Delaware   Investment Advisers, a series of Delaware Management Business Trust, Attorney   in Fact
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By   
    	
/s/   Alexander Alston
    
	
 
    	
 
    	
Name: Alexander Alston
    
	
 
    	
 
    	
Title: Vice President
    
				

 

50

 

Accepted as of the date first written above.

 

	
 
    	
THE   UNION CENTRAL LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
Summit   Investment Advisors, Inc., as Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Andrew S. White
    
	
 
    	
 
    	
 
    	
Name: Andrew S. White
    
	
 
    	
 
    	
 
    	
Title: Managing Director-Private Placements
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AMERITAS   LIFE INSURANCE CORP.
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
Summit   Investment Advisors, Inc., as Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Andrew S. White
    
	
 
    	
 
    	
 
    	
Name: Andrew S. White
    
	
 
    	
 
    	
 
    	
Title: Managing Director-Private Placements
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
ACACIA   LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
Summit   Investment Advisors, Inc., as Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Andrew S. White
    
	
 
    	
 
    	
 
    	
Name: Andrew S. White
    
	
 
    	
 
    	
 
    	
Title: Managing Director-Private Placements
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
FIRST AMERITAS LIFE INSURANCE CORP. OF
   NEW YORK
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Summit   Investment Advisors, Inc., as Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By
    	
/s/ Andrew S. White
    
	
 
    	
 
    	
 
    	
Name: Andrew S. White
    
	
 
    	
 
    	
 
    	
Title: Managing Director-Private Placements
    
							

 

51

 

Accepted as of the date first written above.

 

	
 
    	
PHOENIX   LIFE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Christopher M. Wilkos
    
	
 
    	
 
    	
Name:   Christopher M. Wilkos
    
	
 
    	
 
    	
Title:   Executive Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PHL   VARIABLE INSURANCE COMPANY
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By
    	
/s/   Christopher M. Wilkos
    
	
 
    	
 
    	
Name:   Christopher M. Wilkos
    
	
 
    	
 
    	
Title:   Executive Vice President
    

 

52

 

DEFINED TERMS

 

As used herein, the following terms have the respective meanings set forth below or set forth in the Section hereof following such term:

 

“Administrative Agent” means Bank of America, N.A. in its capacity as administrative agent under the Bank Credit Agreements, together with its successors and assigns in such capacity.

 

“Affiliate” means, at any time, and with respect to any Person, (a) any other Person that at such time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person, and (b) any Person beneficially owning or holding, directly or indirectly, 10% or more of any class of voting or equity interests of the Parent Guarantor or any Subsidiary or any Person of which the Parent Guarantor and/or its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 10% or more of any class of voting or equity interests.  As used in this definition, “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.  Unless the context otherwise clearly requires, any reference to an “Affiliate” is a reference to an Affiliate of any Obligor.

 

“Bank Credit Agreements” means, collectively, the Credit Agreement dated as of December 30, 2010 and the Term Loan Credit Agreement dated as of December 30, 2010, each among the Company, the Parent Guarantor, Bank of America, N.A., as administrative agent, and the other financial institutions party thereto, as amended, restated, joined, supplemented, increased or otherwise modified from time to time, and any renewals, extensions, increases or replacements thereof.

 

“Bank Lenders” means the banks and financial institutions party to a Bank Credit Agreement.

 

“Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required or authorized to be closed.

 

“Capital Lease” means, at any time, a lease with respect to which the lessee is required concurrently to recognize the acquisition of an asset and the incurrence of a liability in accordance with GAAP.

 

“Capital Lease Obligation” means, with respect to any Person and a Capital Lease, the amount of the obligation of such Person as the lessee under such Capital Lease which would, in accordance with GAAP, appear as a liability on a balance sheet of such Person.

 

“Closing” is defined in Section 3.

 

“Closing Date” is defined in Section 3.

 

SCHEDULE B
 (to Note Purchase Agreement)

 

 

“Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations promulgated thereunder from time to time.

 

“Company” means Helen of Troy, L.P., a Texas limited partnership.

 

“Confidential Information” is defined in Section 21.

 

“Consolidated Debt” means as of any date of determination the total amount of all Debt of the Parent Guarantor and its Subsidiaries determined on a consolidated basis in accordance with GAAP.

 

“Consolidated EBIT” means for any period the sum of Consolidated Net Income for such period, plus to the extent deducted in calculating Consolidated Net Income for such period: the total of (a) Consolidated Interest Expense for such period, (b) income tax expense for such period for Parent Guarantor and its Subsidiaries, all determined in accordance with GAAP, (c) any asset impairment charges incurred during such period, and (d) any write-downs of goodwill or other intangibles during such period.

 

“Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such period, plus, to the extent deducted in computing such Consolidated Net Income and without duplication, (a) depreciation and amortization expense for such period, (b) Consolidated Interest Expense for such period, (c) income tax expense for such period, and (d) other non cash charges for such period, all as determined in accordance with GAAP.  For purposes of calculating Consolidated EBITDA for any period of four consecutive quarters, if during such period the Parent Guarantor or any Subsidiary shall have acquired or disposed of any Person or acquired or disposed of all or substantially all of the operating assets of any Person, Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such transaction occurred on the first day of such period.

 

“Consolidated Interest Expense” shall mean, for any period, the gross interest expense of the Parent Guarantor and its Subsidiaries deducted in the calculation of Consolidated Net Income for such period, determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Net Income” shall mean, for any period, the consolidated net income (or loss) of the Parent Guarantor and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP consistently applied.

 

“Consolidated Net Worth” shall mean the consolidated stockholder’s equity of the Parent Guarantor and its Subsidiaries, as defined according to GAAP, less the sum of (i) minority interests and (ii) Restricted Investments in excess of 10% of stockholders’ equity of the Parent Guarantor and its Subsidiaries.

 

“Consolidated Total Assets” means, as of any date of determination, the total amount of all assets of the Parent Guarantor and its Subsidiaries, determined on a consolidated basis in accordance with GAAP.

 

B-2

 

“Current Control Group” means (a) Gerald J. Rubin, (b) the spouse, children and lineal descendants of Gerald J. Rubin or (c) the estate of, or any trust for the benefit of Gerald J. Rubin or any of the persons described in clause (b).

 

“Debt”  means, with respect to any Person, without duplication,

 

(a)      its liabilities for borrowed money;

 

(b)      its liabilities for the deferred purchase price of property acquired by such Person (excluding accounts payable and other accrued liabilities arising in the ordinary course of business but including, without limitation, all liabilities created or arising under any conditional sale or other title retention agreement with respect to any such property);

 

(c)      its Capital Lease Obligations;

 

(d)      all liabilities for borrowed money secured by any Lien with respect to any property owned by such Person (whether or not it has assumed or otherwise become liable for such liabilities); and

 

(e)      Guaranties of such Person with respect to liabilities of a type described in any of clauses (a) through (d) hereof.

 

Debt of any Person shall include all obligations of such Person of the character described in clauses (a) through (e) to the extent such Person remains legally liable in respect thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP.

 

“Default” means an event or condition the occurrence or existence of which would, with the lapse of time or the giving of notice or both, become an Event of Default.

 

“Default Rate” as of any date means that rate of interest that is the greater of (i) 2.0% per annum above the stated rate of interest for the Notes for which a determination is then being made or (ii) 2.0% per annum over the rate of interest publicly announced by Bank of America, N.A. in New York, NY as its “base” or “prime” rate.

 

“Disclosure Documents” is defined in Section 5.3.

 

“Environmental Laws” means any and all federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials into the environment, including but not limited to those related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

 

“Equity Interest” means:

 

(a)        in the case of a corporation, corporate stock;

 

B-3

 

(b)        in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock;

 

(c)        in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited); and

 

(d)        any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person.

 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the rules and regulations promulgated thereunder from time to time in effect.

 

“ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated as a single employer together with the Parent Guarantor under section 414 of the Code.

 

“Event of Default” is defined in Section 11.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Fair Market Value” means, at any time and with respect to any property, the sale value of such property that would be realized in an arm’s-length sale at such time between an informed and willing buyer and an informed and willing seller (neither being under a compulsion to buy or sell), as reasonably determined in the good faith opinion of the Parent Guarantor’s board of directors.

 

“GAAP” means generally accepted accounting principles as in effect from time to time in the United States of America.

 

“Governmental Authority” means

 

(a)      the government of

 

(i)        the United States of America or any state or other political subdivision thereof, or

 

(ii)       any jurisdiction in which the Parent Guarantor or any Subsidiary conducts all or any part of its business, or which has jurisdiction over any properties of the Parent Guarantor or any Subsidiary, or

 

(b)      any entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government.

 

B-4

 

“Guaranty” means, with respect to any Person, any obligation (except the endorsement in the ordinary course of business of negotiable instruments for deposit or collection) of such Person guaranteeing or in effect guaranteeing any Debt, dividend or other obligation of any other Person in any manner, whether directly or indirectly, including (without limitation) obligations incurred through an agreement, contingent or otherwise, by such Person:

 

(a)      to purchase such Debt or obligation or any property constituting security therefor primarily for the purpose of assuring the owner of such Debt or obligation of the ability of any other Person to make payment of the Debt or obligation;

 

(b)      to advance or supply funds (i) for the purchase or payment of such Debt or obligation, or (ii) to maintain any working capital or other balance sheet condition or any income statement condition of any other Person or otherwise to advance or make available funds for the purchase or payment of such Debt or obligation;

 

(c)      to lease properties or to purchase properties or services primarily for the purpose of assuring the owner of such Debt or obligation of the ability of any other Person to make payment of the Debt or obligation; or

 

(d)      otherwise to assure the owner of such Debt or obligation against loss in respect thereof.

 

In any computation of the Debt or other liabilities of the obligor under any Guaranty, the Debt or other obligations that are the subject of such Guaranty shall be assumed to be direct obligations of such obligor, provided that the amount of such Debt outstanding for purposes of this Agreement shall not exceed the maximum amount of Debt that is the subject of such Guaranty.

 

“Hazardous Material” means any and all pollutants, toxic or hazardous wastes or any other substances that might pose a hazard to health or safety, the removal of which may be required or the generation, manufacture, refining, production, processing, treatment, storage, handling, transportation, transfer, use, disposal, release, discharge, spillage, seepage, or filtration of which is or shall be restricted, prohibited or penalized by any applicable law (including, without limitation, asbestos, urea formaldehyde foam insulation and polychlorinated biphenyls).

 

“holder” means, with respect to any Note, the Person in whose name such Note is registered in the register maintained by the Parent Guarantor pursuant to Section 13.1.

 

“HOT-Nevada” means Helen of Troy Nevada Corporation, a Nevada corporation and general partner of the Company.

 

“Institutional Investor” means (a) any original purchaser of a Note, (b) any holder of more than $2,000,000 of the aggregate principal amount of the Notes then outstanding, and (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company, any broker or dealer, or any other similar financial institution or entity, regardless of legal form.

 

B-5

 

“Interest Coverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated EBIT for such period of the Parent Guarantor and its Subsidiaries, to (b) Consolidated Interest Expense for such period of the Parent Guarantor and its Subsidiaries, in each case for the items set forth in clauses (a) and (b) for the period of four consecutive fiscal quarters ending on such date.

 

“Investments” shall mean all investments, in cash or by delivery of property made, directly or indirectly in any Person, whether by acquisition of shares of capital stock, Debt or other obligations or securities or by loan, advance, capital contribution or otherwise.

 

“Leverage Ratio” means, as of any date of determination, the ratio of (a) Consolidated Debt on such date to (b) Consolidated EBITDA for the period of the four consecutive fiscal quarters most recently ended.

 

“Lien” means, with respect to any Person, any mortgage, lien, pledge, charge, security interest or other encumbrance, or any interest or title of any vendor, lessor, lender or other secured party to or of such Person under any conditional sale or other title retention agreement (other than an operating lease) or Capital Lease, upon or with respect to any property or asset of such Person (including, in the case of stock, shareholder agreements, voting trust agreements and all similar arrangements).

 

“Make-Whole Amount” shall have the meaning set forth in Section 8.6 with respect to any Note.

 

“Material” means material in relation to the business, operations, affairs, financial condition, assets or properties of the Parent Guarantor and its Subsidiaries taken as a whole.

 

“Material Adverse Effect” means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or properties of the Parent Guarantor and its Subsidiaries taken as a whole, or (b) the ability of each of the Parent Guarantor or the Obligors to perform its respective obligations under this Agreement and the Notes, as applicable, (c) the ability of any Subsidiary Guarantor to perform its obligations under the Subsidiary Guaranty or (d) the validity or enforceability of this Agreement, the Notes or the Subsidiary Guaranty.

 

“Material Subsidiary” means, at any time, any Subsidiary of the Parent Guarantor which, together with all other Subsidiaries of such Subsidiary, accounts for more than (i) 5% of the consolidated assets of the Parent Guarantor and its Subsidiaries or (ii) 5% of consolidated revenue of the Parent Guarantor and its Subsidiaries.

 

“Memorandum” is defined in Section 5.3.

 

“Moody’s” shall mean Moody Investors Service, Inc.

 

“Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in Section 4001(a)(3) of ERISA).

 

B-6

 

“Notes” is defined in Section 1.

 

“Obligor” means the Company, Troy Barbados or the Parent Guarantor and “Obligors” means, collectively, the Company, Troy Barbados and the Parent Guarantor.

 

“Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other officer of the Parent Guarantor whose responsibilities extend to the subject matter of such certificate.

 

“Parent Guarantor” is defined in the introductory paragraph of this Agreement.

 

“PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any successor thereto.

 

“Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, or a government or agency or political subdivision thereof.

 

“Plan” means an “employee benefit plan” (as defined in Section 3(3) of ERISA) that is or, within the preceding five years, has been established or maintained, or to which contributions are or, within the preceding five years, have been made or required to be made, by the Parent Guarantor or any ERISA Affiliate or with respect to which the Parent Guarantor or any ERISA Affiliate may have any liability.

 

“Priority Debt” means (without duplication), as of the date of any determination thereof, the sum of (i) all unsecured Debt of Subsidiaries (including all Guaranties of Debt of the Obligors but excluding (x) Debt owing to any Obligor or any other Subsidiary, (y) Debt outstanding at the time such Person became a Subsidiary, provided that such Debt shall have not been incurred in contemplation of such person becoming a Subsidiary, and (z) all Guaranties of Debt of the Obligors by any Subsidiary which has also guaranteed the Notes), and (ii) all Debt of the Obligors and its Subsidiaries secured by Liens other than Debt secured by Liens permitted by subparagraphs (a) through (j), inclusive, of Section 10.5.

 

“property” or “properties” means, unless otherwise specifically limited, real or personal property of any kind, tangible or intangible, choate or inchoate.

 

“Purchasers” means the purchasers of the Notes named in Schedule A hereto.

 

“QPAM Exemption” means Prohibited Transaction Class Exemption 84-14 issued by the United States Department of Labor.

 

“Qualified Institutional Buyer” means any Person who is a qualified institutional buyer within the meaning of such term as set forth in Rule 144(a)(1) under the Securities Act.

 

“Ratable Portion” means, with respect to any Note, an amount equal to the product of (x) the amount equal to the net proceeds being so applied to the prepayment of Senior Debt in

 

B-7

 

accordance with Section 10.6(2), multiplied by (y) a fraction the numerator of which is the outstanding principal amount of such Note and the denominator of which is the aggregate principal amount of Senior Debt of the Company and its Subsidiaries being prepaid pursuant to Section 10.6(2).

 

“Required Holders” means, at any time, the holders of not less than 51% in principal amount of the Notes at the time outstanding (exclusive of Notes then owned by the Parent Guarantor or any of its Affiliates).

 

“Responsible Officer” means any Senior Financial Officer and any other officer of the Parent Guarantor with responsibility for the administration of the relevant portion of this Agreement.

 

“Restricted Investments” shall mean all Investments except the following:

 

(a)      current assets arising from the sale of goods and services in the ordinary course of business of the Parent Guarantor;

 

(b)      property to be used in the ordinary course of business;

 

(c)      Investments existing on the date of the Closing and described in Schedule 10.1;

 

(d)      Investments in obligations issued by the United States of America or an agency thereof, or Canada (or any province thereof), so long as such agency obligations have been unconditionally guaranteed by the United States of America or Canada, as the case may be, provided that such obligations mature within 365 days from the date of acquisition thereof;

 

(e)      Investments in certificates of deposit or banker’s acceptances issued by an Acceptable Bank, provided that such obligations mature within 365 days from the date of acquisition thereof;

 

(f)      Investments in commercial paper which shall have been given one of the highest two ratings by S&P or Moody’s and maturing not more than 270 days from the date of creation thereof;

 

(g)      Investments in Repurchase Agreements;

 

(h)      Investments in one or more Subsidiaries or any Person that becomes a Subsidiary;

 

(i)      Investments in tax-exempt obligations of any state of the United States of America, or any municipality of any such state, in each case which shall have been given one of the highest two ratings by S&P or by Moody’s, provided that such obligations mature within 365 days from the date of acquisition thereof;

 

B-8

 

(j)      Investments in treasury stock or common stock of the Parent Guarantor; and

 

(k)      Investments in money market instrument programs which are classified as current assets in accordance with GAAP, which money market instrument programs are administered by an “investment company” regulated under the Investment Company Act of 1940 and which money market instrument programs hold only Investments satisfying the criteria set forth in clauses (d), (e), (f) and (g) above.

 

As used in this definition of “Restricted Investments”:

 

“Repurchase Agreement” shall mean any written agreement:

 

(a)       that provides for (1) the transfer of one or more United States Governmental Securities in an aggregate principal amount at least equal to the amount of the Transfer Price (defined below) to the Parent Guarantor or any of its Subsidiaries from an Acceptable Bank or an Acceptable Broker-Dealer against a transfer of funds (the “Transfer Price”) by the Parent Guarantor to such Acceptable Bank or Acceptable Broker-Dealer, and (2) a simultaneous agreement by the Parent Guarantor, in connection with such transfer of funds, to transfer to such Acceptable Bank or Acceptable Broker-Dealer the same or substantially similar United States Governmental Securities for a price not less than the Transfer Price plus a reasonable return thereon at a date certain not later than 365 days after such transfer of funds,

 

(b)      in respect of which the Parent Guarantor shall have the right, whether by contract or pursuant to applicable law, to liquidate such agreement upon the occurrence of any default thereunder, and

 

(c)       in connection with which the Parent Guarantor, or an agent thereof, shall have taken all action required by applicable law or regulations to perfect a Lien in such United States Governmental Securities.

 

“Acceptable Bank” shall mean any bank or trust company (i) which is organized under the laws of the United States of America or any state thereof, (ii) which has capital, surplus and undivided profits aggregating at least $250,000,000, and (iii) whose long-term unsecured debt obligations (or the long-term unsecured debt obligations of the bank holding company owning all of the capital stock of such bank or trust company) shall have been given a rating of “A” or better by S&P, “A2” or better by Moody’s or an equivalent rating by any other credit rating agency of recognized national standing.

 

“Acceptable Broker-Dealer” shall mean any Person other than a natural person (i) which is registered as a broker or dealer pursuant to the Exchange Act and (ii) whose long-term unsecured debt obligations shall have been given a rating of “A” or better by S&P, “A2” or better by Moody’s or an equivalent rating by any other credit rating agency of recognized national standing.

 

B-9

 

“S&P” means Standard & Poor’s Ratings Group, a division of The McGraw-Hill Companies, Inc.

 

“SEC Reports” means (i) each financial statement, report, notice or proxy statement sent by the Obligors or any Subsidiary to public securities holders generally, (ii) each regular or periodic report, each registration statement, and each prospectus and all amendments thereto filed by the Obligors or any Subsidiary with the Securities and Exchange Commission, and (iii) all press releases and other statements made available generally by the Obligors or any Subsidiary to the public concerning developments that relate to the Obligors or any Subsidiary.

 

“Securities Act” means the Securities Act of 1933, as amended from time to time.

 

“Senior Debt” means, as of the date of any determination thereof, all Consolidated Debt, other than Subordinated Debt.

 

“Senior Financial Officer” means the chief financial officer, principal accounting officer, treasurer or comptroller of the Parent Guarantor.

 

“Subordinated Debt” means all unsecured Debt of any Obligor or any Subsidiary which shall contain or have applicable thereto subordination provisions providing for the subordination thereof to other Debt of such Person (including, without limitation, being subordinated to the obligations of the Obligors or their Subsidiary under this Agreement or the Notes).

 

“Subsidiary” means, as to any Person, any corporation, association or other business entity in which such Person or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries owns sufficient equity or voting interests to enable it or them (as a group) ordinarily, in the absence of contingencies, to elect a majority of the directors (or Persons performing similar functions) of such entity, and any partnership or joint venture if more than a 50% interest in the profits or capital thereof is owned by such Person or one or more of its Subsidiaries or such Person and one or more of its Subsidiaries (unless such partnership can and does ordinarily take major business actions without the prior approval of such Person or one or more of its Subsidiaries).  Unless the context otherwise clearly requires, any reference to a “Subsidiary” is a reference to a Subsidiary of the Parent Guarantor.

 

“Subsidiary Guarantor” means each Subsidiary which is party to the Subsidiary Guaranty.

 

“Subsidiary Guaranty” is defined in Section 2.2 of this Agreement.

 

“Taxes” is defined in Section 8.7(a).

 

“Troy Barbados” is defined in the introductory paragraph of this Agreement.

 

“U.S. Person” has the meaning given thereto in Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended.

 

B-10

 

“Voting Equity Interests” of any Person means Equity Interests of any class or classes having ordinary voting power for the election of at least a majority of the members of the board of directors, managing general partners or the equivalent governing body of such Person, irrespective of whether, at the time, Equity Interests of any other class or classes or such entity shall have or might have voting power by reason of the happening of any contingency.

 

B-11

 

[FORM OF NOTE]

 

HELEN OF TROY L.P.

3.90% SENIOR NOTE DUE JANUARY 12, 2018

 

	
No.    [              ]
    	
 
    	
[Date]
    
	
$[                    ]
    	
 
    	
PPN 42308# AE7
    

 

FOR VALUE RECEIVED, HELEN OF TROY L.P. (herein called “the “Company”), a limited partnership organized and existing under the laws of the State of Texas hereby promises to pay to [                                          ] or registered assigns, the principal sum of [                            ] DOLLARS on January 12, 2018 with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid balance hereof at the rate of 3.90% per annum from the date hereof, payable semi-annually, on the 12th day of January and July in each year and at maturity, commencing on July 12, 2011, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, at a rate per annum from time to time equal to the Default Rate during the continuance of an Event of Default, on the unpaid balance hereof and on any overdue payment of any Make-Whole Amount, payable semiannually as aforesaid (or, at the option of the registered holder hereof, on demand).

 

Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are to be made in lawful money of the United States of America at the principal office of Bank of America, N.A. in New York, New York or at such other place as the holder of this Note shall have designated to the Company by written notice as provided in Section 15.2 of the Note Purchase Agreement referred to below.

 

This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to the Note Purchase Agreement, dated as of January 12, 2011 (as from time to time amended, supplemented or modified, the “Note Purchase Agreement”), between the Company, Helen of Troy Limited, a Bermuda company (the “Parent Guarantor”), Helen of Troy Limited, a Barbados company (“Troy Barbados”), and the respective Purchasers named therein and is entitled to the benefits thereof.  Any initially capitalized terms used in this Note and not otherwise defined herein shall have the meanings given to them in the Note Purchase Agreement.  Each holder of this Note will be deemed, by its acceptance hereof, (i) to have agreed to the confidentiality provisions set forth in Section 21 of the Note Purchase Agreement and (ii) to have made the representation set forth in Section 6.2 of the Note Purchase Agreement, provided, that such holder may (in reliance upon information provided by the Company, which shall not be unreasonably withheld) make a representation to the effect that the purchase by any holder of any Note will not constitute a non-exempt prohibited transaction under section 406(a) of ERISA.

 

This Note is a registered Note and, as provided in the Note Purchase Agreement, upon surrender of this Note for registration of transfer, duly endorsed, or accompanied by

 

EXHIBIT 1
 (to Note Purchase Agreement)

 

 

a written instrument of transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized in writing, a new Note for a like principal amount will be issued to, and registered in the name of, the transferee.  Prior to due presentment for registration of transfer, the Company may treat the person in whose name this Note is registered as the owner hereof for the purpose of receiving payment and for all other purposes, and the Company will not be affected by any notice to the contrary.

 

The Company will make required prepayments of principal on the date and in the amounts specified in the Note Agreement.  This Note is subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Note Purchase Agreement, but not otherwise.

 

Pursuant to Section 14 of the Note Purchase Agreement referred to above, each of the Parent Guarantor and Troy Barbados has absolutely and unconditionally guaranteed payment in full of the principal of, Make-Whole Amount, if any, and interest on this Note and the performance by the Company of its obligations contained in the Note Purchase Agreement all as more fully set forth therein.

 

Pursuant to the Subsidiary Guaranty Agreement dated as of January 12, 2011 (as amended, restated or otherwise modified from time to time, the “Subsidiary Guaranty”), and subject to certain terms and provisions set forth in the Note Purchase Agreement, certain Subsidiaries of the Company have absolutely and unconditionally guaranteed payment in full of the principal of, Make-Whole Amount, if any, and interest on this Note and the performance by the Company of its obligations contained in the Note Purchase Agreement all as more fully set forth in said Subsidiary Guaranty.

 

If an Event of Default occurs and is continuing, the principal of this Note may be declared or otherwise become due and payable in the manner, at the price (including any applicable Make-Whole Amount) and with the effect provided in the Note Purchase Agreement.

 

This Note shall be construed and enforced in accordance with, and the rights of the issuer and holder hereof shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other than such State.

 

 

	
 
    	
HELEN OF TROY L.P., A TEXAS LIMITED PARTNERSHIP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

E-1-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}]]