Document:

Exhibit 10.2(b)

 

PENN NATIONAL GAMING, INC.

 

INCENTIVE STOCK OPTION
CERTIFICATE

 

This certifies
that an option to purchase shares of Common Stock of Penn National Gaming, Inc.
has been granted pursuant to the Penn National Gaming, Inc. 2003 Long Term
Incentive Compensation Plan, as follows:

 

	
  Name and Address

  of Optionee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date of Grant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Type of Option:

  	
   

  	
  Incentive Stock Option

  
	
   

  	
   

  	
   

  
	
  Number of shares

  subject to Option:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Option Price:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Vesting Date(s):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
   

  

 

The option is
subject to all the terms and conditions of the Penn National Gaming, Inc.
2003 Long Term Incentive Compensation Plan, a copy of which is available upon
request.

 

 

	
  Date: 

  	
   

  	
   

  	
  PENN NATIONAL GAMING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

 

PENN NATIONAL
GAMING, INC.

STOCK OPTION TERMS

 

All
Stock Options are subject to the provisions of the 2003 Long Term Incentive
Compensation Plan and any rules and regulations established by the
Compensation Committee of the Board of Directors of Penn National Gaming, Inc.
(“PNG”).  A copy of the Plan is available
upon request.  Words used herein with
initial capitalized letters are defined in the attached Non-Qualified Stock
Option Certificate or the Plan.

 

The
terms provided here are applicable to the Stock Option specified in the
attached certificate.  Different terms
may apply to any prior or future stock option grants.

 

I.                                         OPTION PERIOD

 

You may
exercise your Stock Options during the Option Period, which begins on the
Vesting Dates and ends on the Expiration Date. 
The Stock Options vest in 25% installments on each Vesting Date.  The Vesting Dates are the first, second,
third and fourth anniversaries of the Date of Grant.  Thus, you may exercise up to 25% of your
Stock Options on the first Vesting Date, up to another 25% of your Stock
Options on the second Vesting Date, and so on. 
The Expiration Date is seven(7) years from the Date of Grant.  However, the Option Period may end sooner if
your employment is terminated under certain circumstances.

 

II.                                     TERMINATION OF EMPLOYMENT

 

A.                                                            Unvested Options. 
If your employment is terminated for any reason, unvested Stock Options
will be forfeited on the termination date.

 

B.                                                            Vested Options.  If you voluntarily resign or your employment
is terminated for Cause before your Retirement, your vested Stock Options will
be forfeited on the 30th day following the date of termination.  If your employment terminates for any other
reason, including Retirement, Reduction in Force, your transfer to a Related
Entity, your Disability or your Death, your vested Stock Options will continue
to be exercisable until the Expiration Date.

 

III.                                 TRANSFERABILITY

 

In general,
Stock Options may be exercised during your lifetime only by you and may not be
assigned or otherwise transferred to anyone else.  Options are transferable upon your death by
will or the laws of distribution and descent.

 

IV.                                PAYMENT

 

When you exercise your Stock Options, you may pay the Option Price in
cash, by check, with previously issued shares of PNG Common Stock (under
certain circumstances), in accordance with a “cashless exercise program” or
with a combination of the foregoing.

 

 

Penn National
Gaming, Inc.

Understanding How Incentive Stock Options Work

 

Congratulations
on receiving a Penn National Gaming, Inc. (“PNG”) Incentive Stock
Option.  These Stock Options are designed
so that you may share in the Company’s success.

 

How Do
Stock Options Work?

 

A stock option
is the right, subject to certain conditions, to purchase shares of PNG Common
Stock at a fixed price.  The per share price
at which Shares of Common Stock may be purchased when the Stock Option is
exercised is referred to as the Option Price. 
The Option Price is fixed on the Date of Grant and does not change for
the life of the Stock Option.  However,
the market price of PNG stock changes and will ultimately determine the gain,
if any, from your Stock Option.  If the
value of PNG stock increases, you will be able to buy PNG stock below the
market price at the time of exercise. 
For example, if you have been granted Stock Options to purchase 100
shares, at an Option Price of $25 and the price of PNG stock has grown to $40
on the date you choose to exercise, you would be able to purchase shares that
are worth $4,000 for only $2,500, a pre-tax gain of $15 per share.  If you exercise your Stock Option and hold
the stock for at least one year after exercise and at least two years
after the Date of Grant, you will not be subject to Federal income tax with
respect to the Stock Option until you sell the stock.  Generally, however, this favorable tax
treatment applies only if you were an employee of PNG at the time of exercise
or had left the Company less than three months before the exercise.  THE TAX
RULES APPLICABLE TO INCENTIVE STOCK OPTIONS ARE COMPLEX.  YOU SHOULD CONSULT WITH YOUR FINANCIAL
ADVISOR FOR MORE INFORMATION.

 

Stock
Option Basics

 

The Option Price is set
at the market price of PNG stock on the date the Stock Option is awarded.

 

The vesting period is the
waiting period from the Date
of Grant to the Vesting Date during which you cannot exercise your Stock
Option.

 

The Option Period is the
time from the Vesting
Date until the Expiration Date, during which you can exercise your
Stock Options, which means you can purchase shares of PNG stock at the Option
Price.

 

Your Stock
Option can no longer be exercised after the Expiration Date, which is seven (7) years
after the Date of Grant.  The Stock
Option will expire sooner if you leave PNG under certain circumstances.  For example, if you were granted a Stock
Option to purchase 100 shares of PNG Common Stock, and you remain employed by
PNG for ten years, the Stock Option is exercisable as follows:

 

	
  Number of
  Shares

  	
   

  	
  Vesting Period

  	
   

  	
  Option Period

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25 shares

  	
   

  	
  Date of Grant -

  First Anniversary

  of Date of Grant

  	
   

  	
  First Anniversary of Date of Grant -

  Seventh Anniversary of Date of Grant

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25 shares

  	
   

  	
  Date of Grant -

  Second Anniversary

  of Date of Grant

  	
   

  	
  Second Anniversary of Date of Grant -

  Seventh Anniversary of Date of Grant

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25 shares

  	
   

  	
  Date of Grant -

  Third Anniversary

  of Date of Grant

  	
   

  	
  Third Anniversary of Date of Grant -

  Seventh Anniversary of Date of Grant

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  25 shares

  	
   

  	
  Date of Grant -

  Fourth Anniversary

  of Date of Grant

  	
   

  	
  Fourth Anniversary of Date of Grant -

  Seventh Anniversary of Date of GrantExhibit 10.12

 

THE CORPORATE
CAMPUS AT SPRING RIDGE

 

SUMMARY OF
LEASE TERMS

 

The terms of
this Lease (the “Lease”) set forth on these summary pages (the “Summary”)
are for convenience and are subject to further explanation in the Lease.  All terms defined on these summary pages are
incorporated by reference into the Lease as if set forth in their entirety
therein.

 

	
   

  	
   

  	
   

  	
   

  	
  Reference

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Landlord’s Name and Address:

  	
   

  	
  ¶ 38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Wyomissing Professional Center II,

  Limited Partnership (the “Landlord”)

  825 Berkshire Boulevard Suite 203

  Wyomissing, Pennsylvania 19610

  Attention: Mr. Stephen J. Najarian

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Tenant’s Name and Address:

  	
   

  	
  ¶ 38

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Penn National Gaming, Inc. (the “Tenant”)

  825 Berkshire Boulevard, Suite 200

  Wyomissing, Pennsylvania 19610

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Leased Premises:

  	
   

  	
  ¶ 1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The area shown on Exhibit “A” attached hereto and made a
  part hereof (the “Premises”), containing approximately 4,388 square feet of
  rentable floor area, situate on the ground floor of a building (the “Building”)
  constructed on the land. The building contains approximately 20,325 square
  feet of rentable floor area. Determination of actual rentable areas will be
  made subsequent to completion of design of Tenant interior layout, and the
  space will be measured in accordance with BOMA standards.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Building Location: 

  	
   

  	
  ¶ 1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The Building will be located on a tract of
  land (the “Land”) consisting of approximately 15 acres, located on the North
  side of Berkshire Boulevard, and the East side of Paper Mill Road in the
  Borough of Wyomissing, Berks County, Pennsylvania.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Building Common Area:

  	
   

  	
  ¶ 4(c)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The area shown on Exhibit “F” attached hereto and made a
  part hereof (the “Building Common Area”).

  	
   

  	
   

  	
   

  

 

 

	
   

  	
   

  	
   

  	
   

  	
  Reference

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Parking Spaces:

  	
   

  	
  ¶ 1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  In connection with its use of the Premises,
  Tenant shall have the right to use 18 undesignated parking spaces
  (collectively, the “Parking Spaces”) in the parking area adjacent to the
  Building.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Date of Lease:

  	
   

  	
  ¶ 2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  January 25, 2002

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Commencement Date:

  	
   

  	
  ¶ 2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  The term of this Lease shall commence on
  the first to occur of (a) the date on which Tenant takes occupancy of or
  commences business at the Premises, or (b) the date of substantial
  completion, being the date when a certificate of occupancy for the Premises
  is issued by the applicable municipal authority (whichever date occurs first,
  the “Commencement Date”). The anticipated Commencement Date is March 30,
  2002,

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Term:

  	
   

  	
  ¶ 2

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ten (10) years from the first day of
  the first full month of occupancy after the Commencement Dale (the “Term”).
  Tenant shall have the ability, with six (6) months prior notice, to
  cancel the lease on the five (5) year anniversary date without penalty.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tenant shall
  have the option to extend this lease for one period of five (5) years
  with rent escalating at 2% annually above the prior year’s rent.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
   

  	
   

  	
  ¶ 3

  	
   

  
	
   

  	
   

  	
  Fixed Annual Minimum Rent:

  Starting rent based on $13.00 per rentable square foot. Rent to be pro rated
  during any partial months. 2% annual increase over prior year’s Annual
  Minimum Rent.

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  	
  Premises Size

  	
   

  	
  4,388

  	
   

  
	
   

  	
   

  	
   

  	
  Starting Rate perSF

  	
   

  	
  $

  	
  13.00

  	
   

  
	
   

  	
   

  	
   

  	
  Annual escalation

  	
   

  	
  2.0

  	
  %

  
								

 

2

 

	
  Time

  	
   

  	
  Rentable

  	
   

  	
  Annual Rent per

  	
   

  	
   

  	
   

  	
  Annual Rent (the “Annual

  	
   

  
	
  Period

  	
   

  	
  Sq. Ft,

  	
   

  	
  SF

  	
   

  	
  Monthly Rent

  	
   

  	
  Minimum Rent”)

  	
   

  
	
  Year l

  	
   

  	
  4,388

  	
   

  	
  $

  	
  13.00

  	
   

  	
  $

  	
  4,753.67

  	
   

  	
  $

  	
  57,044.00

  	
   

  
	
  Year 2

  	
   

  	
  4,388

  	
   

  	
  $

  	
  13.26

  	
   

  	
  $

  	
  4,848.74

  	
   

  	
  $

  	
  58,184.88

  	
   

  
	
  Year 3

  	
   

  	
  4,388

  	
   

  	
  $

  	
  13.53

  	
   

  	
  $

  	
  4,945.71

  	
   

  	
  $

  	
  59,348.58

  	
   

  
	
  Year 4

  	
   

  	
  4,388

  	
   

  	
  $

  	
  13.80

  	
   

  	
  $

  	
  5,044.63

  	
   

  	
  $

  	
  60,535.55

  	
   

  
	
  Year 5

  	
   

  	
  4,388

  	
   

  	
  $

  	
  14.07

  	
   

  	
  $

  	
  5,145.52

  	
   

  	
  $

  	
  61,746.26

  	
   

  
	
  Year 6

  	
   

  	
  4,388

  	
   

  	
  $

  	
  14.35

  	
   

  	
  $

  	
  5,248.43

  	
   

  	
  $

  	
  62,981.19

  	
   

  
	
  Year 7

  	
   

  	
  4,388

  	
   

  	
  $

  	
  14.64

  	
   

  	
  $

  	
  5,353.40

  	
   

  	
  $

  	
  64,240.81

  	
   

  
	
  Year 8

  	
   

  	
  4,388

  	
   

  	
  $

  	
  14.93

  	
   

  	
  $

  	
  5,460.47

  	
   

  	
  $

  	
  65,525.63

  	
   

  
	
  Year 9

  	
   

  	
  4,388

  	
   

  	
  $

  	
  15.23

  	
   

  	
  $

  	
  5.569.68

  	
   

  	
  $

  	
  66,836.14

  	
   

  
	
  Year 10

  	
   

  	
  4,388

  	
   

  	
  $

  	
  15.54

  	
   

  	
  $

  	
  5,681.07

  	
   

  	
  $

  	
  68,172.86

  	
   

  

 

	
  11.

  	
   

  	
  Tenant’s Share of Expenses (“Premises
  Expenses”):

  	
   

  	
  ¶ 4(c)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tenant to pay full pro-rata share of all
  operating expenses.  First Exhibit “B” year budget based on $3.25 per
  SF of rentable floor area not including janitorial expenses.

  	
   

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  	
  Premises Expenses/

  	
   

  	
  Premises Expenses/

  	
   

  
	
  Time Period

  	
   

  	
  Rentable Sq. Ft.

  	
   

  	
  Monthly

  	
   

  	
  Annually

  	
   

  
	
  Year 1

  	
   

  	
  4,388

  	
   

  	
  $

  	
  3.25

  	
   

  	
  $

  	
  14,261.00

  	
   

  
										

 

	
  12.

  	
   

  	
  Building Standard Work Allowance: 

  	
   

  	
  ¶ 10

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $ 0.00 per square foot of usable floor area
  of the Premises (the “Building Standard Work Allowance”).  The entire cost for the Fit-Out to be borne
  by the Tenant.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Security Deposit:

  	
   

  	
  ¶ 5

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Waived

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Use of Premises:

  	
   

  	
  ¶ 6

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  General office uses (the “Permitted Use”).

  	
   

  	
   

  	
   

  

 

3

 

IN WITNESS
WHEREOF, and intending to be legally bound hereby, Landlord and Tenant have
caused this Summary of Lease Terms to be duly executed this 30th day January,
2002.

 

THIS
LEASE MUST BE EXECUTED FOR TENANT, IF A CORPORATION, BY THE PRESIDENT OR VICE
PRESIDENT AND ATTESTED BY THE SECRETARY OR ASSISTANT SECRETARY, UNLESS THE
BY-LAWS OR A RESOLUTION OF THE BOARD OF DIRECTORS SHALL OTHERWISE PROVIDE, IN
WHICH EVENT A CERTIFIED COPY OF THE BY-LAWS OR RESOLUTION, AS THE CASE MAY BE,
MUST BE FURNISHED TO LESSOR.

 

	
   

  	
  WYOMISSING
  PROFESSIONAL CENTER II,

  LIMITED PARTNERSHIP, a Pennsylvania limited

  partnership, by its General Partner, WYOMISSING

  PROFESSIONAL CENTER II, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
  /s/
  Stephen J. Najarian

  
	
   

  	
   

  	
   

  	
  Stephen J.
  Najarian, President

  
	
   

  	
   

  
	
   

  	
  (“Landlord”)

  
	
   

  	
   

  
	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Susan M. Montgomery

  	
   

  	
  By:

  	
  /s/ Robert S. Ippolito

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Susan M. Montgomery

  	
   

  	
  Name:

  	
  Robert S. Ippolito

  
	
   

  	
   

  
	
  Title:

  	
  Asst. to Chairman

  	
   

  	
  Title:

  	
  Vice President, Secretary and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
  January 30, 2002

  
	
   

  	
   

  
	
   

  	
  (“Tenant”)

  
										

 

4

 

TABLE OF
CONTENTS

 

	
  1.

  	
  PREMISES

  	
   

  
	
  2.

  	
  TERM.

  	
   

  
	
  3.

  	
  RENT.

  	
   

  
	
  4.

  	
  TENANT’S SHARE OF EXPENSES.

  	
   

  
	
  5.

  	
  SECURITY DEPOSIT. Waived

  	
   

  
	
  6.

  	
  USE

  	
   

  
	
  7.

  	
  SERVICES AND FACILITIES

  	
   

  
	
  8.

  	
  UTILITIES

  	
   

  
	
  9.

  	
  CONSTRUCTION OF BUILDING.

  	
   

  
	
  10.

  	
  BUILDING STANDARD WORK ALLOWANCE.

  	
   

  
	
  11.

  	
  SIGNS

  	
   

  
	
  12.

  	
  AFFIRMATIVE COVENANTS OF TENANT

  	
   

  
	
  13.

  	
  NEGATIVE COVENANTS OF TENANT

  	
   

  
	
  14.

  	
  NO MECHANICS’ LIENS.

  	
   

  
	
  15.

  	
  LANDLORD’S RIGHT TO ENTER

  	
   

  
	
  16.

  	
  RELEASE OF LANDLORD.

  	
   

  
	
  17.

  	
  ASSIGNMENT AND SUBLETTING.

  	
   

  
	
  18.

  	
  ENVIRONMENTAL COMPLIANCE

  	
   

  
	
  19.

  	
  INDEMNIFICATION

  	
   

  
	
  20.

  	
  LIABILITY INSURANCE.

  	
   

  
	
  21.

  	
  FIRE OR OTHER CASUALTY.

  	
   

  
	
  22.

  	
  WAIVER OF SUBROGATION

  	
   

  
	
  23.

  	
  NO IMPLIED EVICTION

  	
   

  
	
  24.

  	
  CONDEMNATION

  	
   

  
	
  25.

  	
  LANDLORD’S RIGHT TO PAY TENANT EXPENSES

  	
   

  
	
  26.

  	
  EVENTS OF DEFAULT

  	
   

  
	
  27.

  	
  LANDLORD’S REMEDIES.

  	
   

  
	
  28.

  	
  CONFESSION OF JUDGMENT FOR DAMAGES

  	
   

  
	
  29.

  	
  CONFESSION OF JUDGMENT IN EJECTMENT

  	
   

  
	
  30.

  	
  RIGHT OF ASSIGNEE OF LANDLORD

  	
   

  
	
  31.

  	
  REMEDIES CUMULATIVE.

  	
   

  
	
  32.

  	
  TENANT’S WAIVERS.

  	
   

  
	
  33.

  	
  ATTORNMENT

  	
   

  
	
  34.

  	
  SUBORDINATION

  	
   

  
	
  35.

  	
  EXECUTION OF DOCUMENTS

  	
   

  
	
  36.

  	
  ESTOPPEL AGREEMENTS

  	
   

  
	
  37.

  	
  CONDOMINIUM CONVERSION

  	
   

  
	
  38.

  	
  NOTICES

  	
   

  
	
  39.

  	
  BINDING EFFECT

  	
   

  
	
  40.

  	
  SURVIVAL OF VALID TERMS

  	
   

  
	
  41.

  	
  ENTIRE AGREEMENT

  	
   

  
	
  42.

  	
  PROHIBITION AGAINST RECORDING

  	
   

  
	
  43.

  	
  INTERPRETATION

  	
   

  

 

i

 

	
  44.

  	
  LIABILITY OF LANDLORD

  	
   

  
	
  45.

  	
  CAPTIONS AND HEADINGS

  	
   

  
	
  46.

  	
  NO BROKERAGE COMMISSION

  	
   

  
	
  47.

  	
  QUIET ENJOYMENT

  	
   

  
	
  48.

  	
  WAIVER OF TRIAL BY JURY

  	
   

  
	
  49.

  	
  OWNERS’ ASSOCIATION

  	
   

  

 

ii

 

LEASE
AGREEMENT

 

IN
CONSIDERATION of the mutual promises contained herein, and intending to be
legally bound hereby, Landlord and Tenant, in addition to the foregoing
Summary, agree as follows:

 

1.                                       PREMISES.  
Landlord hereby leases to Tenant and Tenant hereby leases from Landlord
the Premises, in connection with its use of the Premises, Tenant shall have the
right to use the Parking Spaces.

 

2.                                       TERM.

 

(a)                                  The Term of this Lease shall
commence on the Commencement Date, unless construction is delayed as provided
in Paragraph 9(b).

 

(b)                                 Within thirty (30) days after
the Commencement Date, Landlord and Tenant shall execute a letter agreement
specifying the Commencement Date. 
Failure to execute such letter agreement shall in no way cause this
Lease not to remain in full force and effect.

 

(c)                                  Tenant shall have the right to
renew this lease for one (1) five (5) year renewal period under the
same terms and conditions of the base lease with the exception that the
starting rent for the period shall be 2% higher than the previous year’s
rent.  Six (6) months written notice
will be required to exercise such options by Tenant.

 

(d)                                 Tenant shall surrender and
deliver up the Premises at the end of the Term of this Lease in good order and
condition as of the date of execution hereof, reasonable use and natural wear
and tear excepted.  If Tenant fails to
surrender the Premises to Landlord on the date as required herein, Tenant shall
hold Landlord harmless from all damages, direct and indirect, resulting from
Tenant’s failure to surrender the Premises as herein provided, including but
not limited to claims made by a succeeding tenant resulting from Landlord’s
inability to deliver the Premises, or any part thereof, due to Tenant’s failure
to surrender the Premises.

 

(i)                                     Should the Tenant, without the
express written consent of the Landlord, continue to hold and occupy the
Premises after the expiration of the Term of this Lease, such holding over
shall be considered a tenancy at sufferance, and not for any other term
whatsoever, which may be terminated by the Landlord at the will of the Landlord
by giving Tenant written notice thereof, and at any time thereafter the
Landlord may re-enter and take possession of the Premises, by force or
otherwise.  Rent during any such holding
over shall be charged and paid by Tenant at the rate of 150% of the monthly
rent reserved herein as the monthly rental due for that month immediately
preceding the holding over.

 

(e)                                  Definition of Lease Year:  A “lease year.” as herein referred to, shall
consist of that full twelve (12) month period commencing on the first day of
the first full month during which this Lease is in full force and effect and of
each full twelve (12) month period thereafter 
If the Commencement Date of this Lease, as provided aforesaid, is a day
not 

 

 

the first day of the month, the first lease year shall consist of the
remainder of that first month and the first full twelve (12) months thereafter.

 

3.                                       RENT.

 

(a)                                  During the term of this Lease,
Tenant shall pay Landlord the Annual Minimum Rent in equal monthly
installments.  To the extent that the
actual rentable floor area of the Premises is different from the area shown on
the Summary, as certified by Landlord’s architect, the Annual Minimum Rent
shall be adjusted accordingly.

 

(b)                                 All rent shall be payable in
advance, without demand, on the first day of each calendar month during the
term of this Lease, except the first monthly installment shall be paid upon the
signing of this Lease.  The first and
last monthly payments shall be prorated on a per diem basis for any period less
than a full calendar month.

 

(c)                                  All rent and additional rent
shall be payable without any deduction, offset or counterclaim.  All rent and additional rent due hereunder
shall be payable in immediately available funds at Landlord’s address set forth
in the Summary or at such other place as may be designated by Landlord.

 

(d)                                 Tenant shall also pay as rent
any sums which may become due by reason of the failure of Tenant to comply with
any covenants of this Lease and any damages, costs, expenses and reasonable
attorneys’ fees which Landlord may incur by reason of any failure on Tenant’s
part to comply with any covenants of this Lease.

 

(e)                                  Tenant shall pay a late charge
at the rate of five percent (5%) on each dollar of rent, or any other sum
collectible as rent under this Lease, which is not paid within ten (10) days
after the same is due.

 

(f)                                    This Lease shall be deemed and
construed to be a “net-net-net” lease, so that the Annual Minimum Rent provided
for herein shall be an absolute net return to Landlord throughout the term of
this Lease, free of any expense, charge or other deduction whatsoever, with
respect to the Premises and/or the ownership, leasing, operation, maintenance,
repair, rebuilding, use or occupation thereof, or of any portion thereof, or
with respect to any interest of Landlord therein, except as may be expressly
provided for otherwise herein.

 

4.                                       TENANT’S SHARE OF EXPENSES.

 

(a)                                  In addition to the payment of
Annual Minimum Rent as provided herein, Tenant shall pay as additional rent
hereunder its proportionate share (as described in Paragraph 4(c)) of all
Expenses (as hereinafter defined) incurred during each calendar year of the
term of this Lease, as provided herein. 
For purposes hereof, “Expenses” shall mean all real estate taxes,
real  estate assessments, insurance
premiums (other than Tenant’s liability insurance), and other costs and
expenses of every type and character incurred by Landlord in operating and
maintaining the Building and the Land (or portion of the Land relating to the
Building), including without limitation, the common areas thereof, all fixtures
and equipment therein or thereon, water and sewer charges as metered, repair
and maintenance of fixtures, equipment and utility systems relating to the
Premises, janitorial services (if any) provided to

 

2

 

Tenant, trash removal costs pertaining to the Building, grass cutting,
landscape maintenance, snow removal and parking area repair, maintenance,
repaving, cleaning and striping, costs of lighting the parking area, and all
fees, charges and expenses imposed or assessed against the Building and its
owner(s) by any applicable owners association. 
Expenses shall be pre-paid on a monthly basis during each calendar year
of the term of this Lease as provided herein. 
Attached hereto as Exhibit “B”
and made a part hereof is the current budget estimate and operating description
for the operation of the Building and the Land. 
All items on the budget shall be included as Expenses, but other
Expenses may be incurred from time to time.

 

(b)                                 For purposes hereof, “Expenses”
shall not include:

 

(i)                                     Costs for which Landlord is
reimbursed or indemnified (either by an insurer, condemnor, tenant, warrantor
or otherwise) or, in the event Landlord fails to properly insure the Building,
then Expenses shall not include expenses for which Landlord would have been
reimbursed if Landlord had adequately insured the Building.

 

(ii)                                  Expenses incurred in leasing or
procuring tenants, including lease commissions, advertising expenses,
management and leasing offices, lease negotiation and review, expenses and
renovating space for tenants, and legal expenses incurred in enforcing the
terms of any tenant leases.

 

(iii)                               Interest or amortization
payments on any mortgages.

 

(iv)                              Costs representing an amount
paid to an affiliate of Landlord which is in excess of the amount which would
have been paid in the absence of such relationship.

 

(v)                                 Costs specifically billed to and
paid by specific tenants, including, without limitation, expenses for work
performed for other tenants in the Building and expenses to be billed to other
tenants for excess utility use or other services that are beyond normal office
use.  There shall be no duplication of
costs or reimbursement.

 

(vi)                              Depreciation and costs incurred
by Landlord for alterations that are considered capital improvements and
replacements under generally accepted accounting principles consistently
applied, except that the annual amortization of these costs shall be included
in the following two instances:

 

(A)                              The annual amortization
over its useful life (not to be less than ten (10) years) with a
reasonable salvage value on a straight line basis of the cost of any
improvement made by Landlord and required by any changes in applicable laws,
rules, or regulations of any governmental authority enacted after the Building
was fully assessed as a completed and occupied unit and the Lease was signed.

 

(B)                                The annual amortization
over its useful life (not to be less than ten (10) years) with a
reasonable salvage value on a straight line basis

 

3

 

of the cost of any equipment or capital improvements made by Landlord
after the Building was fully assessed as a completed and occupied unit and the
Lease was signed, as a labor-saving measure or to accomplish other savings in
operating, repairing, managing, or maintaining of the Building or Land, but
only to the extent of the savings realized.

 

(vii)                           Salaries other than salary for a
building manager and/or maintenance personnel or salary reimbursement to the
Landlord equal to $0.35 per rentable square foot of floor area annually,

 

(viii)                        Landlord’s personal property and
Landlord’s own occupancy costs, if any, in the Building.

 

(c)                                  The portion of Expenses which
are applicable to the Premises (the “Premises Expenses”) shall be determined by
multiplying the Expenses by a fraction, the numerator of which is the rentable
floor area of the Premises as shown on the Summary and the denominator of which
is the aggregate number of rentable floor area in the Building as shown on the
Summary.  In addition, Tenant shall have
responsibility for the entire amount of Expenses relating directly to the cost
of operating the Premises, which does not include any other portion of the
Building Common Area, such as janitorial services or the repair, maintenance,
or Tenant required modification of the heating, ventilating or air-conditioning
(“HVAC”) system relating directly to the Premises.  Tenant shall be responsible for its
proportionate share of the entire amount of janitorial services and maintenance
costs relating directly to the Building Common Area, on an occupied area basis.

 

(d)                                 Tenant agrees to pay Landlord as
additional rent hereunder all Premises Expenses incurred during the term of
this Lease, including any and all increases in the Premises Expenses.

 

(e)                                  Tenant shall pay Landlord
monthly, in advance, on the first day of each calendar month during the term of
this Lease, and pro rata for the fraction of any month, the sum estimated by
Landlord to be one-twelfth 1/12th) of Tenant’s share of all Premises
Expenses.  If at any time and from time
to time it is determined by Landlord that Tenant’s estimated payments will be insufficient
to pay Tenant’s share of such Premises Expenses, the Landlord shall have the
right to adjust the amount of Tenant’s estimated payments upon thirty (30) days
prior written notice, and Tenant agrees lo thereafter pay the adjusted
estimated payment on a monthly basis.

 

(f)                                    Within one hundred twenty (120)
days after the end of each calendar year, Landlord shall deliver to Tenant (i) a
written itemization of Expenses for the prior Lease year and (ii) an
estimate of the then current Lease year’s Expenses and Tenant’s share of the
Premises Expenses.  An adjustment shall
be made between the aggregate total of Tenant’s share of estimated Premises
Expenses actually paid by Tenant during the prior Lease year, and Tenant’s
share of Premises Expenses actually incurred during the prior Lease year, so
that Landlord shall reimburse Tenant for any excess paid by Tenant, and Tenant
shall pay any deficiency to Landlord within ten (10) days of demand.  If Tenant disagrees with the accuracy of the
Expenses as set forth in Landlord’s itemization statement, Tenant shall give
written notice to

 

4

 

Landlord to that effect, but shall nevertheless make payment in
accordance with the terms of this Paragraph.

 

(g)                                 Landlord shall permit Tenant to
inspect its records with respect to the Expenses at a mutually convenient time
and place.  Any information obtained by
Tenant pursuant to the provisions of this Paragraph shall be treated as confidential,
except in any litigation between the parties.

 

(h)                                 If due to a change in the laws
presently governing taxation, any franchise tax or tax on income, profit,
rentals or occupancies from or of the Premises shall be levied or imposed
against the Landlord (other than business privilege tax, which is considered an
Expense) in lieu of any tax or assessment that would otherwise constitute a
real estate tax, such franchise, income, profit tax or tax on rentals shall be
deemed to be a real estate tax and included as part of the Expenses.

 

5.                                       SECURITY DEPOSIT.  WAIVED. 
Waived.

 

6.                                       USE.  The Premises shall be used only for the
Permitted Use and shall not be used for any other purpose.  Tenant will not use, and will not permit the
use of, the Premises for any purpose which is unlawful or in violation of any
statute, ordinance, rule, regulation or restriction governing the use of the
Premises.

 

7.                                       SERVICES AND FACILITIES.  The following services and facilities shall
be supplied by Landlord to Tenant in connection with Tenant’s use of the
Premises, in common (where applicable) with other tenants of the Building:

 

(a)                                  The cost of the services
described in this Paragraph are to be included as part of the Premises
Expenses, except for electricity and gas, which shall be billed directly to the
Tenant from the utility companies.

 

(b)                                 Landlord shall furnish and
maintain HVAC equipment and facilities for the Premises, in accordance with
Tenant’s layout and specifications, for the comfortable occupancy of the
Premises.  Comfortable occupancy shall
mean temperatures of 68°-74°F throughout the Premises on a year-round
basis, provided Tenant does not exceed an electrical load of six (6) watts
per square foot and an occupancy level of one person for each 150 square
feel.  HVAC shall be under Tenant’s
control with respect to the hours of operation, 
Tenant shall pay directly for the electricity and gas it consumes for
HVAC.

 

(c)                                  Landlord shall maintain and
repair the HVAC. electrical and plumbing systems servicing the Premises, the
ceiling and lighting in the Premises, and the Building, its common areas,
exterior, and all of the Building systems in a first class manner.  The costs of this maintenance shall be
included as part of the Expenses.

 

(d)                                 Landlord shall provide lamping
of all lighting fixtures in the Premises.

 

(e)                                  Landlord shall have no
responsibility or liability to Tenant, nor shall there be any abatement in
rent, for any failure to supply any services or facilities as

 

5

 

provided herein during such period as Landlord deems advisable or
necessary in order to make repairs, alternations or improvements or because of
labor disturbances, strikes, accidents or any other causes beyond Landlord’s
control.

 

(f)                                    Landlord shall be responsible,
at Landlord’s sole cost and expense, for structural repairs and replacement of
HVAC units installed in the Building. 
Except as otherwise provided in Paragraph 7(c) hereof, these
repairs shall not be included as part of the Expenses,

 

8.                                       UTILITIES. 
Landlord shall install meters for measuring Tenant’s electric and gas
usage and all other utility services to the Premises, and Tenant shall pay the
utility company directly for such usage, which shall be in addition to the
Expenses as defined herein.

 

9.                                       CONSTRUCTION OF BUILDING.

 

(a)                                  Landlord shall construct the
Building on the Land in accordance with its plans and specifications for the
Building.

 

(b)                                 If the Landlord is delayed at
any time in the progress of constructing the Building by changes requested by
Tenant, by labor disputes, unavailability of materials or supplies, fire, war
or civil disobedience, unusual delay in transportation, unavoidable casualties,
acts of God, or any other cause beyond the Landlord’s control, the Commencement
Date shall be extended for a period of time equal to the period of such delay.

 

(c)                                  Landlord warrants and represents
to Tenant that no part of the Premises or Building (including the walls,
ceilings, structural steel, flooring and pipes) shall be wrapped, insulated or
fireproofed with any asbestos, asbestos-containing material or other hazardous
material.

 

(d)                                 Landlord agrees to deliver
possession of the Premises to Tenant in compliance with all zoning and all
other municipal, county, state and federal governmental laws, codes and
requirements, including the Americans with Disabilities Act.

 

10.                                 BUILDING STANDARD WORK ALLOWANCE.

 

(a)                                  Tenant will be entirely
responsible for interior improvements to be made to the Premises.  All such improvements shall be made in
accordance with Tenant’s plans and specifications, marked as Exhibits “A”
and “E” attached hereto and made a part hereof, subject to Landlord’s
review and approval from an engineering standpoint.  All such work shall be performed by Landlord’s
contractors and billed at the rate of the subcontractor’s or supplier’s cost
plus a total of 15% for construction management fee, overhead, and builder’s
profit.

 

(b)                                 The cost of the work performed
in the Premises “interior improvements”. 
Tenant agrees to pay for this entire amount promptly upon billing
therefor.

 

11.                                 SIGNS.  Landlord agrees to provide or allow exterior
signage as follows: Exterior signage consisting of a building directional sign
on the interior campus road frontage, and a building tenant directory at the
exterior of the building.

 

6

 

12.                                 AFFIRMATIVE COVENANTS OF TENANT.  Tenant covenants and agrees that it will
without demand:

 

(a)                                  Comply with all requirements of
any governmental authorities which apply to Tenant’s use of the Premises.  Promptly comply, or cause compliance, with
all laws and ordinances and the orders, rules, regulations and requirements of
all federal, state, county and municipal governments and appropriate
departments, commissions, boards and officers thereof, foreseen or unforeseen,
ordinary or extraordinary, and whether or not within the present contemplation
of the parties hereto or involving any change of governmental policy and
irrespective of the cost thereof, which may be applicable to the Premises,
including, without limitation, the fixtures and equipment thereof and the use
or manner of use of the Premises.

 

(b)                                 Comply with the rules and
regulations from time to time made by Landlord for the safety, care, upkeep and
cleanliness of the Premises, the Building and the Land, Tenant agrees that such
rules and regulations shall, when written notice thereof is given to
Tenant, form a part of this Lease.

 

(c)                                  Keep the Premises and Building
Common Area in good order and condition, excepting only ordinary wear and tear
and damage by accidental fire or other casualty not occurring through the
action or negligence of Tenant or its agents, employees and invitees.

 

(d)                                 Peaceably deliver up and
surrender possession of the Premises to Landlord at the expiration or sooner
termination of this Lease, in the same condition in which Tenant has agreed to
keep the Premises during the term of this Lease, and promptly deliver to
Landlord at its office all keys for the Premises.

 

(e)                                  Give to Landlord prompt written
notice of any accident, fire or damage occurring on or to the Premises within
twenty-four (24) hours of occurrence thereof.

 

(f)                                    Give to Landlord a copy of any
written notice concerning the Premises within twenty-four (24) hours of Tenant’s
receipt thereof.

 

(g)                                 Cause its employees and visitors
to park their cars only in those portions of the parking area as may be
designated for that purpose by Landlord, and not use or permit the use of any
more parking spaces in the parking area than are permitted in Paragraph 1
herein.

 

(h)                                 Promptly upon Landlord’s
request, deliver to Landlord’s lender copies of Tenant’s annual financial
statements for the past two (2) years.

 

13.                                 NEGATIVE COVENANTS OF TENANT.  Tenant covenants and agrees that it will do
none of the following without the prior written consent of Landlord:

 

(a)                                  Place or allow to be placed any
sign, projection or device upon the Premises or on the inside or outside of the
Building contrary to the provisions of this Lease.

 

(b)                                 Make any alterations,
improvements or additions to the Premises. 
AH alterations, improvements, additions or fixtures, whether installed
before or after the

 

7

 

execution of this Lease, shall remain upon the Premises at the
expiration or sooner termination of this Lease and become the property of
Landlord, unless Landlord, prior to the termination of this Lease, shall have
given written notice to Tenant to remove the same, in which event Tenant shall
remove such alterations, improvements and additions or fixtures, and restore the
Premises to the same good order and condition in which they were upon initial
occupancy.

 

(c)                                  Do or suffer to be done any act
objectionable to any insurance company whereby the insurance or any other
insurance now in force or hereafter placed on the Premises or the Building
shall become void or suspended, or whereby the same shall be rated as a more
hazardous risk than at the date of the signing of this Lease- In case of a
breach of this covenant (in addition to all other remedies herein given to
Landlord) Tenant agrees to pay Landlord as additional rent any and all
increases of premiums on insurance reasonably carried by Landlord on the
Premises or the Building caused in any way by the use or occupancy of the
Premises by the Tenant.

 

14.                                 NO MECHANICS’ LIENS.

 

(a)                                  Subsequent to the Commencement
Date, any construction work performed by or at the direction of Tenant within
the Premises shall be performed in a good and workmanlike manner, and in
accordance with the requirements of all applicable laws.  Tenant, at its sole cost and expense, shall
apply for and provide with reasonable diligence all necessary permits and
licenses required for any such construction work.  Prior to the commencement of any work or
delivery of any materials to the Premises, Building or Land, Tenant shall cause
each contractor to sign a Waiver of Right to File Mechanics’ Liens and
Mechanics’ Lien Claims, which shall be filed in the Office of the Prothonotary
in the Court of Common Pleas of Berks County, Pennsylvania.  Tenant shall keep the Premises, Building and
Land free from any and all liens arising out of any work performed, materials
furnished or obligations incurred by or for Tenant, and agrees to bond against
or discharge any mechanic’s or materialmen’s lien within ten (10) days after
the filing or recording of any such lien- Tenant shall reimburse Landlord for
any and all costs and expenses which may be incurred by Landlord by reason of
the filing of any such liens and/or the removal of same, such reimbursement to
be made within ten (10) days after Landlord has given Tenant a statement
setting forth the amount of such costs and expenses.  The failure of Tenant to pay any such amount
to Landlord within such 10-day period shall carry with it the same
consequences as failure to pay any installment of rent hereunder.

 

(b)                                 Prior to the commencement of any
work hereunder, Tenant shall cause each of its contractors to indemnify
Landlord and hold it harmless from and against all personal injury and property
damage liability incurred during the course of its work and to provide a
builder’s “all-risk” insurance policy, which policy will be in force during the
entire term of the work being performed on the Premises.  The insurance shall be in an amount
acceptable to the Landlord and the Tenant, and shall name the Tenant, the
Landlord and the Landlord’s lender, as their respective interests may appear,
as additional insureds.  The insurance
coverage shall provide for at least thirty (30) days’ notice of cancellation,
non-renewal or change.  A certificate of
insurance satisfactory to the Tenant, Landlord and Landlord’s lender, shall be
submitted to the Landlord and the Landlord’s lender prior to the commencement
of any work in the Premises.

 

8

 

(c)                                  Within thirty (30) days after
completion of any construction in the Premises, Tenant shall deliver to
Landlord a complete set of “as built” plans of such work, including without
limitation, architectural, mechanical plumbing and electrical plans, certified
to Landlord by a duly licensed Pennsylvania engineer.

 

15.                                 LANDLORD’S RIGHT TO ENTER.  Tenant shall permit Landlord, Landlord’s
agents, servants, employees, and prospective buyers or any other persons
authorized by Landlord, to inspect the Premises at any time, and to enter the
Premises for the purposes of cleaning and, if Landlord shall so elect, for
making reasonable alterations, improvements or repairs to the Building, or for
any reasonable purpose in connection with the operation and maintenance of the
Building, and during the last one (1) year of the term of this Lease, for
the purpose of exhibiting the same for sale or lease.  Landlord or its agents shall have the right
(but shall not be obligated) to enter the Premises in any emergency at any time
without prior notice to Tenant, but Landlord shall notify Tenant by telephone
of such entry either during or immediately following such emergency.

 

16.                                 RELEASE OF LANDLORD.

 

(a)                                  Unless caused by the negligence
of Landlord, or unless Landlord fails to perform its duties under this lease,
Tenant shall be responsible for and hereby relieves Landlord from any and all
liability by reason of any injury, loss, or damage to any person or property in
the Premises, whether the same be due to fire, breakage, leakage, water flow,
gas, use, misuse, or defects therein, or condition anywhere in the Premises,
failure of water supply or light or power or electricity, wind, lightning,
storm, or any other cause whatsoever, whether the loss, injury or damage be to
the person or property of Tenant or any other persons.

 

(b)                                 Tenant acknowledges that Tenant
has inspected the Premises and that the Premises are being leased  “AS IS” as a result of such inspection and
not as a result of any representations made by Landlord.  Landlord makes no representation or warranty
to Tenant, express or implied, that the Premises are free from hazardous or
toxic substances, materials or wastes which are or become regulated by any
federal, state or local governmental authority or that the Premises are in
compliance with any federal, state or local environmental laws or
regulations.  Tenant acknowledges that
the Premises are in a reasonable and acceptable condition of habitability for
their intended use, and the agreed rental payments are fair and reasonable.

 

OR FOR NEW
CONSTRUCTION

 

Landlord makes no warranty to Tenant, express or implied, that the
Premises are free from hazardous or toxic substances, materials or wastes which
are or become regulated by any federal, state or local governmental authority or
that the Premises are in compliance with any federal, state or local
environmental laws or regulations. 
However, to the best of its knowledge. 
Landlord represents that the building and/or premises are free of
hazardous substances upon execution of a Commencement Agreement, Tenant will
acknowledge that the Premises are in a reasonable and acceptable condition of
habitability for their intended use, and the agreed rental payments are fair
and reasonable.

 

9

 

(c)                                  Tenant acknowledges and agrees
that Landlord shall not be liable to Tenant for any loss to Tenant or injury to
its property or to the property of any other person by reason of the
construction of the Building and other improvements located upon the Premises,
the materials used in said construction, the design thereof, the condition
thereof, any defects therein, or any alterations, additions, improvements,
changes or replacements thereto and thereof.

 

(d)                                 Landlord shall not be liable to
Tenant for any damages, compensation, or claim by reason of the inconvenience
or annoyance arising from the necessity of repairing any portion of the
Premises or the Building or improvements erected thereon, interruption in the
use or occupancy thereof, or the termination of this Lease by reason of the
partial or total destruction of the Premises or the Building and improvements
erected thereon.

 

(e)                                  Without limiting the effect of
the release stated in Paragraphs 16(a) through (d) above,
Landlord shall not be deemed in breach of this Lease for any reason whatsoever
unless (i) Tenant shall have delivered to Landlord written notice setting
forth the specific details of all facts, events or occurrences upon which
Tenant relies in asserting such breach, and (ii) Landlord shall have
failed to cure the alleged breach within thirty (30) days of receipt of such
written notice, it being agreed that any breach which is of a type that
reasonably requires longer than thirty (30) days to cure shall be deemed cured
within such 30-day period if Landlord commences to cure such breach
within such 30-day period and diligently proceeds to complete the cure of
such breach thereafter.

 

17.                                 ASSIGNMENT AND SUBLETTING.

 

(a)                                  Except as otherwise provided in
the immediately following sentence, Tenant shall not assign, mortgage or pledge
this Lease, or sublet the Premises or any part thereof, or permit any other
person to occupy the Premises or any part thereof, without the prior written
consent of Landlord.  Such prior consent
shall not be required if Tenant makes an assignment or sublease to (i) any
corporation or other legal entity which owns directly or indirectly all or
substantially all of the stock of Tenant, (ii) any corporation or other
legal entity of which more than one-half the stock is owned by Tenant, or (iii) any
corporation into which Tenant may be converted or with which Tenant may be
merged, provided that prior to taking possession of any part of the Premises,
such corporation or other legal entity shall sign an assumption agreement in form
satisfactory to Landlord, whereby such corporation or other legal entity agrees
to be bound by the terms and conditions of this Lease.

 

(b)                                 Landlord shall not withhold its
consent to any assignment or subletting to any corporation or other legal
entity having financial strength the same as or greater than the present
financial strength of Tenant.

 

(c)                                  Any assignment or subletting,
even with the consent of Landlord, shall not release Tenant from liability for
payment of rent or any oilier charges hereunder or from any of the other
obligations under this Lease, and any additional consideration resulting from
such assignment or subletting in excess of the rent specified herein shall be
additional rent hereunder, due and payable to Landlord   The acceptance of rent from any other person
shall not be deemed to be a waiver of any of the provisions of this Lease or to
be a consent to any assignment or subletting. 
Upon any assignment of this Lease or subletting of the Premises, a

 

10

 

change in any respect of the use of the Premises from the use actually
employed by the original Tenant shall require the prior written consent of
Landlord.

 

18.                                 ENVIRONMENTAL COMPLIANCE.  Tenant shall not cause or permit any
hazardous substance, material or waste (as defined in any applicable
environmental law, rule or regulation) to be brought upon or used in or
about the Premises.  Tenant shall cause
the Premises to be used at all times in compliance with all applicable
environmental laws, rules and regulations. 
Any failure of Tenant to comply with the covenants contained in this
Paragraph shall be covered by the indemnification provisions of
Paragraph 19 herein and shall be subject to all other rights and remedies
available to Landlord.  In no event shall
Landlord be responsible for any damage resulting from any contamination to the
Premises or otherwise, unless caused by Landlord.

 

19.                                 INDEMNIFICATION.  Tenant agrees to indemnify Landlord against
loss and save Landlord harmless from and against (a) any breach or default
in the performance of any covenant or agreement to be performed by Tenant under
the terms of this Lease, (b) any and all claims, damages, and liabilities
arising from anything done in or about the Premises during the term of this
Lease by Tenant or any of its agents, contractors, servants, employees,
invitees or licensees, (c) any act or negligence of Tenant or any of its
agents, contractors, servants, employees, invitees or licensees, including any
accident, injury or damage whatsoever caused to any person, in or about the
Premises, and (d) all costs, reasonable counsel fees, expenses and
liabilities incurred in connection with any such claim for which
indemnification has been provided under this Paragraph.  In case any action or proceeding shall be
brought against Landlord by reason of any such claim, Tenant, upon notice from
Landlord, shall reimburse Landlord for its counsel fees incurred in defending
such action or proceeding.  Tenant shall,
within ten (10) days following notice to it of any claim of a third party
relating to Tenant’s use or occupancy of the Premises or to the performance or
non-performance by Tenant of its obligations under this Lease, give written
notice to the Landlord of such claim. 
The provisions of this Paragraph shall survive the expiration or
termination of this Lease.

 

20.                                 LIABILITY INSURANCE.

 

(a)                                  Tenant, at its own cost and
expense, shall obtain during the term of this Lease, and any renewals or
extensions thereof, commercial general liability insurance in companies
acceptable to Landlord, naming Landlord and Tenant as the insureds, in an
amount not less than One Million Dollars ($1,000,000.00), and providing for at
least thirty (30) days’ prior written notice to Landlord of cancellation, nonrenewal,
or modification.

 

(b)                                 Upon the signing of this Lease,
Tenant shall deliver to Landlord a copy of the policy evidencing such
insurance.  At least thirty (30) days
before the expiration of such policy and any renewal policies, Tenant shall deliver
to Landlord a copy of the renewal policy.

 

21.                                 FIRE OR OTHER CASUALTY.

 

(a)                                  If during the term of this Lease
or any renewal or extension thereof, the Premises or the Building is totally
destroyed or is so damaged by fire or other

 

11

 

casualty not occurring through the fault or negligence of Tenant or
those employed by or acting for Tenant to the extent that the same cannot be
repaired or restored within one hundred eighty (180) days from the date of the
happening of such damage, or if such damage or casualty is not included in the
risks covered by Landlord’s fire insurance, then Landlord shall have the option
to terminate this Lease upon written notice to Tenant, whereupon this Lease
shall absolutely cease and terminate and the rent shall abate for the balance
of the term.  In such case, Tenant shall
pay the rent apportioned to the date of damage and Landlord may enter upon and
repossess the Premises without further notice.

 

(b)                                 If Landlord chooses to restore
the Premises, Landlord shall repair whatever portion of the Premises that may
have been damaged by fire or other casualty insured as aforesaid, and the rent
shall be apportioned during the time Landlord is in possession, taking into
account the proportion of the Premises rendered untenantable and the duration
of Landlord’s possession.

 

(c)                                  If said damage by fire or other
casualty was caused by the action or negligence of Tenant or its agents,
employees or invitees, Tenant shall not be entitled to any abatement or
apportionment of the rent.

 

(d)                                 Tenant, at its own cost and
expense, shall obtain during the term of this Lease, and any renewals or
extensions thereof, content insurance for the full replacement value of its
personalty used in Tenant’s daily operations of the Permitted Use.

 

22.                                 WAIVER OF SUBROGATION.  Landlord and Tenant shall each endeavor to
procure an appropriate clause in, or endorsement on, any fire and extended
coverage insurance covering the Premises and Building and personal property,
fixtures, and equipment located thereon or therein, pursuant to which the
insurance companies waive subrogation or consent to a waiver of right of
recovery.  Each party hereto hereby
agrees that it will not make any claim against or seek to recover from the
other for any loss or damage to its property or the property of others
resulting from fire or other hazards covered by such fire and extended coverage
insurance except as expressly provided in this Lease; provided, however, that
the release, discharge, exoneration, and covenant not to sue herein contained
shall be limited by the terms and provisions of the waiver of subrogation
clauses and/or endorsements consenting to a waiver of right of recovery and
shall be coextensive therewith.

 

23.                                 NO IMPLIED EVICTION.  Notwithstanding any inference to the contrary
herein contained, it is understood that the exercise by Landlord of any of its
rights hereunder, including (without limitation) cessation of services as
described in Paragraph 27(c)(ii), shall never be deemed an eviction
(constructive or otherwise) of Tenant, or a disturbance of its use of the
Premises, and shall in no event render Landlord liable to Tenant or any other
person, so long as such exercise of rights is in accordance with the foregoing
terms and conditions.

 

24.                                 CONDEMNATION. 
If the whole of the Premises shall be acquired or condemned by eminent
domain, then the term of this Lease shall cease and terminate as of the dale on
which possession of the Premises is required to be surrendered to the condemning
authority.  All rent shall be paid up to
the date of termination.  A partial
condemnation shall not be cause for termination of this Lease.  Tenant hereby expressly waives any right or
claim to any

 

12

 

part of any condemnation award or damages and hereby assigns to
Landlord any such right or claim to which Tenant might become entitled.

 

25.                                 LANDLORD’S RIGHT TO PAY TENANT
EXPENSES.  If Tenant shall at any
time fail to pay any utility or other charges or to take out, pay for, maintain
or deliver any of the insurance policies provided for herein, or shall fail to
make any other payment or perform any other act which Tenant is obligated to
make or perform under this Lease, then without waiving, or releasing Tenant
from, any obligations of Tenant contained in this Lease, Landlord may, but
shall not be obligated to, pay any such charge, effect any such insurance
coverage and pay premiums therefor, and may make any other payment or perform
any other act which Tenant is obligated to perform under this Lease, in such
manner and to such extent as shall be necessary.  In exercising any such rights, Landlord may
pay any necessary and incidental costs and expenses, employ counsel and incur
and pay reasonable attorneys’ fees.  All
sums so paid by Landlord and all necessary and incidental costs and expenses in
connection with the performance of any such act by Landlord, together with
interest thereon at the rate of twelve percent (12%) per annum from the date of
the making of such expenditure by Landlord, shall be deemed additional rent
hereunder and, except as otherwise expressly provided in this Lease, shall be
payable to Landlord after ten (10) days’ written notice thereof.  Tenant covenants to pay any such sum or sums
with interest as aforesaid and Landlord shall have (in addition to any other
right or remedy of the Landlord) the same rights and remedies in the event of
nonpayment thereof by Tenant as in the case of default by Tenant in the payment
of rent.

 

26.                                 EVENTS OF DEFAULT.  The occurrence of each of the following
events shall be an “Event of Default” hereunder:

 

(a)                                  Tenant does not pay in full when
due any installment of rent, additional rent or any other charges, expenses or
costs herein agreed to be paid by Tenant for a period of five (5) days
after receipt of notice that same has not been paid when due; provided that in
the event Tenant shall have received three (3) such written notices within
any period of twelve (12) consecutive months, then during the remainder of the
twelve (12) consecutive month period after Tenant shall have received its first
written notice from Landlord, Tenant shall thereafter be in default hereunder
whenever Tenant shall fail to pay any sum owing under this Lease when due,
without the necessity of sending any written notice of nonpayment;

 

(b)                                 Tenant violates or fails to
perform or comply with any nonmonetary term, covenant, condition, or agreement
herein contained and fails to cure such default within thirty (30) days of
notice thereof from Landlord, provided, however, if such default cannot be
cured with reasonable diligence within such thirty (30) day period, the time
for cure of same shall be deemed extended for such additional time as is
reasonably necessary to cure same with due diligence for an additional period
not to exceed thirty (30) days;

 

(c)                                  Tenant vacates the Premises;

 

(d)                                 Tenant shall file a voluntary
petition in bankruptcy or shall be adjudicated a bankrupt or insolvent or shall
file any petition or answer seeking any reorganization, arrangement,
recapitalization, readjustment, liquidation or dissolution or similar relief
under any present or future bankruptcy laws of the United States or any other
country or

 

13

 

political subdivision thereof, or shall seek or consent to or acquiesce
in the appointment of any trustee, receiver, or liquidator of all or any
substantial part of Tenant’s properties, or shall make an assignment for the
benefit of creditors, or shall admit in writing Tenant’s inability to pay
Tenant’s debts generally as they become due; or

 

(e)                                  If an involuntary petition in
bankruptcy shall be filed against Tenant seeking any reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar relief
under any present or future bankruptcy laws of the United States or any other
state or political subdivision thereof, and if within sixty (60) days after the
commencement of any such proceeding against Tenant, such proceedings shall not
have been dismissed, or if, within sixty (60) days after the appointment,
without the consent or acquiescence of Tenant, or any trustee, receiver or
liquidator of the Tenant or of all or any substantial part of Tenant’s
properly, such appointment shall not have been vacated or stayed on appeal or
otherwise, or if, within sixty (60) days after the expiration of any such stay,
such appointment shall not have been vacated.

 

27.                                 LANDLORD’S REMEDIES.

 

(a)                                  Upon the occurrence of any Event
of Default, Landlord may, at its option and without any further notice to
Tenant, terminate this Lease, whereupon the estate hereby vested in Tenant
shall cease and any and all other right, title and interest of Tenant hereunder
shall likewise cease without notice or lapse of time, as fully and with like
effect as if the entire term of this Lease had elapsed, but Tenant shall
continue to be liable to Landlord as hereinafter provided.

 

(b)                                 Upon the occurrence of any Event
of Default, or at any time thereafter, Landlord, in addition to and without
prejudice to any other rights and remedies Landlord shall have at low or in
equity, shall have the right, without terminating this Lease, to change the
locks on the doors to the Premises and exclude Tenant therefrom until all of
such defaults shall have been completely cured.

 

(c)                                  Upon the occurrence of any Event
of Default, or at any time thereafter, Landlord, in addition to and without
prejudice to any other rights and remedies Landlord shall have at law or in
equity, shall have the right to re-enter the Premises, either by force or
otherwise, and recover possession thereof and dispossess any or all occupants
of the Premises in the manner prescribed by the statute relating to summary
proceedings, or similar statutes, but Tenant in such case shall remain liable
to Landlord as hereinafter provided.

 

(d)                                 In case of any Event of Default,
re-entry, expiration and/or dispossession by summary proceedings, whether or
not this Lease shall have been terminated as aforesaid:

 

(i)                                     All delinquent rent, additional
rent and all other sums required to be paid by Tenant hereunder shall become
payable thereupon and shall be paid up to the time of such reentry, expiration
and/or dispossession, and all accelerated payments due under
subparagraphs 10(a) and (b) hereof shall become immediately due
and payable;

 

14

 

(ii)                                  Landlord shall have the right,
in its sole discretion, to terminate immediately and without any notice to
Tenant, all services which are to be supplied by Landlord pursuant to the terms
of this Lease, including without limitation, all janitor service and the
maintenance and repair responsibilities described in Paragraph 7 hereof;

 

(iii)                               Landlord shall have the right,
but not the obligation, to relet the Premises or any part or parts thereof for
the account of Tenant, either in the name of Landlord or otherwise, for a term
or terms which may, at Landlord’s option, be less than or exceed the period
which would otherwise have constituted the balance of the term of this Lease
and on such conditions (which may include concessions or free rent) as
Landlord, in its reasonable discretion, may determine and may collect and
receive the rents therefor; Landlord shall in no way be responsible or liable
for any failure to relet the Premises or any part thereof, or for any failure
to collect any rent due upon any such reletting; and

 

(iv)                              Tenant shall reimburse Landlord
for any expenses that Landlord may incur in connection with recovering
possession of the Premises and any reletting thereof, such as court costs,
attorneys’ fees, brokerage fees, and the costs of advertising and the costs of
any alterations, repairs, replacements and/or decorations in or to the Premises
as Landlord, in Landlord’s sole judgment, considers advisable and necessary for
the purpose of such reletting of the Premises; and the making of such
alterations, repairs, replacements and/or decorations shall not operate or be
construed to release Tenant from liability hereunder as aforesaid.

 

(e)                                  If this Lease is terminated by
Landlord pursuant to Paragraph 27(a) hereof, Tenant nevertheless
shall remain liable for all rent and damages which may be due or sustained
prior to such termination, together with additional damages (the “Liquidated
Damages”) which, at Landlord’s option, shall be either:

 

(i)                                     an amount equal to (A) the
rent and all other sums required to be paid by Tenant hereunder during the
period which would otherwise have constituted the balance of the term of this
Lease, and all damages, costs, fees and expenses incurred by Landlord as a
result of such Event of Default, including without limitation, reasonable
attorneys’ fees, costs and expenses incurred by Landlord in pursuit of its
remedies hereunder, less (B) the rent, if any, received by Landlord,
pursuant to any reletting of the Premises during the period which would
otherwise have constituted the balance of the term of this Lease; such amount
calculated pursuant to this Paragraph 27(d)(i) shall be payable in
monthly installments, in advance, on the first day of each calendar month
following the occurrence of such Event of Default and continuing during the
period which would otherwise have constituted the balance of the term of this
Lease; or

 

(ii)                                  an amount equal to the Annual
Minimum Rent, Premises Expenses, and all other additional rent which was due
and payable for the two (2) year period immediately preceding Tenant’s
default.

 

15

 

(f)                                    In the event Tenant commits a
default, or suffers a default to exist, within ten (10) days after written
demand, Tenant shall reimburse Landlord for Landlord’s attorneys’ fees incurred
by Landlord in the enforcement of this Lease, regardless whether legal
proceedings are or are not instituted, which fees shall include any actions
taken in connection with any bankruptcy proceeding filed by or against Tenant.

 

(g)                                 Tenant shall pay Landlord
interest at twelve percent (12%) per annum on all failures lo pay timely the
rent, additional rent or any other sums required to be paid by Tenant hereunder
from the date such payment is due until the date such payment is made to
Landlord.  Any judgment obtained by the
Landlord as a result of the exercise of its rights and remedies under this
Lease shall bear interest at the rate of twelve percent (12%) per annum from
the date of entry of such judgment through the date such judgment is paid in
full.

 

(h)                                 Upon any termination of this
Lease, whether by lapse of time, by the exercise of any option by Landlord to
terminate the same, or in any other manner whatsoever, or upon any termination
of Tenant’s right to possession without termination of this Lease, Tenant shall
immediately surrender possession of the Premises to Landlord and immediately
vacate the same, and remove all effects therefrom, except such as may not be
removed under other provisions of this Lease. 
If Tenant fails to surrender and vacate as aforesaid, Landlord may
forthwith re-enter the Premises, with or without process of law, and repossess
itself thereof as in its former estate and expel and remove Tenant and any
other persons and property therefrom, using such force as may be necessary,
without being deemed guilty of trespass, eviction, conversion or forcible entry
and without thereby waiving Landlord’s rights to rent or any other rights given
Landlord under this Lease or at law or in equity.  If Tenant shall not remove all effects from
the Premises as hereinabove provided, Landlord may, at its option, remove any
or all of said effects in any manner it shall choose and either dispose of the
same at Landlord’s sole discretion, or store the same without liability for
loss thereof, and Tenant shall pay Landlord, on demand, any and all expenses
incurred in such removal and also storage on said effects, if applicable, for
any length of time during which the same shall be in Landlord’s possession or
in storage.

 

28.                                 CONFESSION OF JUDGMENT FOR DAMAGES.  THIS PARAGRAPH SETS FORTH A WARRANT OF
ATTORNEY FOR AN ATTORNEY TO CONFESS JUDGMENT AGAINST THE TENANT.  IN GRANTING THIS WARRANT OF ATTORNEY TO
CONFESS JUDGMENT AGAINST THE TENANT, TENANT HEREBY KNOWINGLY, INTELLIGENTLY AND
VOLUNTARILY, AND, ON THE ADVICE OF SEPARATE COUNSEL OF TENANT, UNCONDITIONALLY
WAIVES ANY AND ALL RIGHTS TENANT HAS OR MAY HAVE TO PRIOR NOTICE AND AN
OPPORTUNITY FOR HEARING UNDER THE RESPECTIVE CONSTITUTIONS AND LAWS OF THE
UNITED STATES AND THE COMMONWEALTH OF PENNSYLVANIA,

 

TENANT HEREBY
AUTHORIZES ANY ATTORNEY OF ANY COURT OF RECORD, UPON THE OCCURRENCE OF ANY
EVENT OF DEFAULT, TO APPEAR IMMEDIATELY THEREAFTER AS ATTORNEY FOR THE TENANT
AND ALL PERSONS CLAIMING UNDER THE TENANT IN ANY COMPETENT COURT AND TO CONFESS
JUDGMENT OR JUDGMENTS AND SUCCESSIVE JUDGMENTS BY CONFESSION (WITHOUT STAY OF
EXECUTION OR APPEAL) IN FAVOR OF THE LANDLORD AND

 

16

 

ALL PERSONS CLAIMING UNDER THE LANDLORD AND AGAINST THE TENANT AND ALL
PERSONS CLAIMING UNDER THE TENANT FOR ALL AMOUNTS THEN DUE UNDER THIS LEASE,
TOGETHER WITH AN ATTORNEY’S COLLECTION COMMISSION EQUAL TO TEN PERCENT (10%) OF
THE TOTAL OF SUCH AMOUNTS, WITHOUT ANY LIABILITY ON THE PART OF THE SAID
ATTORNEY, FOR WHICH THIS SHALL BE A SUFFICIENT WARRANT, AND THEREUPON A WRIT OF
EXECUTION WITH CLAUSE FOR COSTS, OR OTHER PROCESS FOR SIMILAR PURPOSES, MAY ISSUE
FORTHWITH WITHOUT ANY PRIOR WRIT OR PROCEEDING WHATSOEVER, AND THE TENANT AND
ALL PERSONS CLAIMING UNDER THE TENANT HEREBY WAIVE ALL EXEMPTION LAWS AND
INQUISITION ON REAL PROPERTY AND RELEASE TO THE LANDLORD AND ALL PERSONS
CLAIMING UNDER THE LANDLORD ALL ERRORS AND DEFECTS WHATSOEVER IN ENTERING SUCH
ACTION OR JUDGMENT, OR IN CAUSING SUCH WRIT OF EXECUTION OR OTHER PROCESS TO BE
ISSUED, OR IN ANY PROCEEDING THEREON OR CONCERNING THE SAME, AND HEREBY AGREE
THAT NO WRIT OF ERROR OR OBJECTION OR EXCEPTION SHALL BE MADE OR TAKEN THERETO.  IF A COPY OF THIS LEASE, VERIFIED BY
AFFIDAVIT, IS FILED IN SAID ACTION, IT SHALL NOT BE NECESSARY TO FILE THE
ORIGINAL AS A WARRANT OF ATTORNEY, ANY LAW OR RULE OF COURT TO THE CONTRARY
NOTWITHSTANDING.  THIS WARRANT OF
ATTORNEY SHALL.  NOT BE EXHAUSTED BY ONE
EXERCISE THEREOF, AND SHALL REMAIN IN FORCE AND SHALL BE OPERATIVE FOR
SUCCESSIVE EXERCISES THEREOF, FROM TIME TO TIME AS THE NEED MAY ARISE, NOT
ONLY WITH RESPECT TO THE TENANT BUT ALSO WITH RESPECT TO ALL PERSONS CLAIMING
UNDER THE TENANT.

 

29.                                 CONFESSION OF JUDGMENT IN EJECTMENT.  THIS PARAGRAPH SETS FORTH A WARRANT OF
ATTORNEY FOR AN ATTORNEY TO CONFESS JUDGMENT AGAINST THE TENANT.  IN GRANTING THIS WARRANT OF ATTORNEY TO
CONFESS JUDGMENT AGAINST THE TENANT, TENANT HEREBY KNOWINGLY, INTELLIGENTLY AND
VOLUNTARILY, AND, ON THE ADVICE OF SEPARATE COUNSEL OF TENANT, UNCONDITIONALLY
WAIVES ANY AND AIL RIGHTS TENANT HAS OR MAY HAVE TO PRIOR NOTICE AND AN
OPPORTUNITY FOR HEARING UNDER THE RESPECTIVE CONSTITUTIONS AND LAWS OF THE
UNITED STATES AND THE COMMONWEALTH OF PENNSYLVANIA.

 

TENANT HEREBY
AUTHORIZES THE PROTHONOTARY, CLERK OF COURT OR ANY ATTORNEY OF ANY COURT OF
RECORD, UPON THE OCCURRENCE OF AN EVENT OF DEFAULT, OR IN THE EVENT THAT TENANT
FAILS TO SURRENDER POSSESSION OF ALL OR ANY PART OF THE PREMISES AS
REQUIRED HEREIN, TO APPEAR FOR THE TENANT AND ALL PERSONS CLAIMING UNDER THE
TENANT IN ANY COMPETENT COURT AND CONFESS JUDGMENT IN EJECTMENT (WITHOUT STAY
OF EXECUTION OR APPEAL) IN FAVOR OF THE LANDLORD AND ALL PERSONS CLAIMING UNDER
THE LANDLORD AND AGAINST THE TENANT AND ALL PERSONS CLAIMING UNDER THE TENANT
FOR POSSESSION OF THE PREMISES, WITHOUT ANY LIABILITY ON THE PART OF THE
SAID ATTORNEY, FOR WHICH THIS SHALL BE A SUFFICIENT WARRANT, AND THEREUPON A
WRIT OF POSSESSION WITH CLAUSE FOR COSTS, OR OTHER PROCESS FOR SIMILAR

 

17

 

PURPOSES, MAY ISSUE FORTHWITH WITHOUT ANY PRIOR WRIT OR PROCEEDING
WHATSOEVER, AND THE TENANT AND ALL PERSONS CLAIMING UNDER THE TENANT HEREBY
RELEASE TO THE LANDLORD AND ALL PERSONS CLAIMING UNDER THE LANDLORD ALL ERRORS
AND DEFECTS WHATSOEVER IN ENTERING SUCH ACTION OR JUDGMENT, OR IN CAUSING SUCH
WRIT OF POSSESSION OR OTHER PROCESS TO BE ISSUED, OR IN ANY PROCEEDING THEREON
OR CONCERNING THE SAME, AND HEREBY AGREE THAT NO WRIT OF ERROR OR OBJECTION OR
EXCEPTION SHALL BE MADE OR TAKEN THERETO. 
IF A COPY OF THIS LEASE, VERIFIED BY AFFIDAVIT, IS FILED IN SAID ACTION,
IT SHALL NOT BE NECESSARY TO FILE THE ORIGINAL AS A WARRANT OF ATTORNEY.  ANY LAW OR RULE OF COURT TO THE CONTRARY
NOTWITHSTANDING THIS WARRANT OF ATTORNEY SHALL NOT BE EXHAUSTED BY ONE EXERCISE
THEREOF, AND SHALL REMAIN IN FORCE AND SHALL BE OPERATIVE FOR SUCCESSIVE
EXERCISES THEREOF, FROM TIME TO TIME AS THE NEED MAY ARISE, NOT ONLY WITH
RESPECT TO THE TENANT BUT ALSO WITH RESPECT TO ALL PERSONS CLAIMING UNDER THE
TENANT.

 

30.                                 RIGHT OF ASSIGNEE OF LANDLORD.  The right to enforce all of the provisions of
this Lease may be exercised by any assignee of the Landlord’s right, title and
interest in this Lease in its, his, her or their own name, and Tenant hereby
expressly waives the requirements of any and all laws regulating the manner
and/or form in which such assignments shall be executed and witnessed.

 

31.                                 REMEDIES CUMULATIVE.  All remedies given to Landlord herein and all
rights and remedies given to Landlord by law and equity shall be cumulative and
concurrent.  No termination of this
Lease, or taking or recovering of possession of the Premises, or entry of any
judgment either for possession or for any money claimed to be due Landlord,
shall deprive Landlord of any other action against Tenant for possession, or
for any money due Landlord hereunder, or for damages hereunder.  The exercise of or failure to exercise any remedy
shall not bar or delay the exercise of any other remedy.

 

32.                                 TENANT’S WAIVERS.

 

(a)                                  If proceedings shall be
commenced by Landlord to recover possession of the Premises, either at the end
of the term hereof or by reason of an Event of Default or otherwise, Tenant
expressly waives all rights to notice in excess of five (5) days required
by any Act of Assembly, including the Act of April 6, 1951, P.L. 69, Art
V, Sec. 501, as amended, and agrees that in either or any such case five (5) days’
notice shall be sufficient.  Without
limitation of or by the foregoing, Tenant hereby waives any and all demands,
notices of intention, and notice of action or proceedings which may be required
by law to be given or taken prior to any entry or re-entry by summary
proceedings, ejectment or otherwise, by Landlord, except as hereinbefore
expressly provided with respect to five (5) days’ notice

 

(b)                                 Any notice to quit required by
law previous to proceedings to recover possession of the Premises or any notice
of demand for rent on the day when such is due and the benefit of all laws
granting stay of execution, appeal, inquisition and exemption are

 

18

 

hereby waived by Tenant; provided, however, that nothing in this
paragraph shall be construed as a waiver of any notice specifically mentioned
or required by any other part of this Lease.

 

(c)                                  In the event of a termination of
this Lease prior to the date of expiration herein originally fixed, Tenant
hereby waives all right to recover or regain possession of the Premises, to
save forfeiture by payment of rent due or by other performance of the
conditions, terms or provisions hereof, and, without limitation of or by the
foregoing, Tenant waives all right to reinstate or redeem this Lease
notwithstanding any provisions of any statute, law or decision now or hereafter
in force or effect and Tenant waives all right to any second or further trial
in summary proceedings, ejectment or in any other action provided by any
statute or decision now or hereafter in force or effect.

 

33.                                 ATTORNMENT.  In the event of the sale or assignment of
Landlord’s interest in the Premises or in the event of a foreclosure under any
mortgage made by Landlord covering the Premises, Tenant shall attorn to the
purchaser and recognize such purchaser as Landlord under this Lease.

 

34.                                 SUBORDINATION. 
At the option of Landlord or Landlord’s lender, or both of them, this
Lease and the Tenant’s interest hereunder shall be subject and subordinate at
all times to any mortgage or mortgages, deed or deeds of trust, or such other
security instrument or instruments, including all renewals, extensions,
consolidations, assignments and refinances of the same, as well as all advances
made upon the security thereof, which now or hereafter become liens upon the
Landlord’s fee and/or leasehold interest in the Premises, and/or any and all of
the buildings now or hereafter erected or to be erected and/or any and all of
the Premises, provided, however, that in each such case, the holder of such
other security, the trustee of such deed of trust or holder of such other
security instrument shall agree that this Lease shall not be divested or in any
way affected by foreclosure or other default proceedings under said mortgage,
deed of trust, or other instrument or other obligations secured thereby, so
long as Tenant shall not be in default under the terms of this Lease; and shall
agree that this Lease shall remain in full force and effect notwithstanding any
such default proceedings.

 

Notwithstanding
anything herein to the contrary, any holder of any mortgage may at any time
subordinate its mortgage to this Lease, by notice in writing to Tenant, and
thereupon this Lease shall be deemed prior to such mortgage without regard to
their respective dates of execution and delivery and in that even such mortgage
shall have the same rights with respect to this Lease as though this Lease had
been executed and delivered prior to the execution and delivery of the
mortgage.

 

35.                                 EXECUTION OF DOCUMENTS.  The above subordination shall be self-executing,
but Tenant agrees upon demand to execute such other document or documents as
may be required by a mortgagee, trustee under any deed of trust, or holder of a
similar security interest, or any party to the types of documents enumerated
herein for the purpose of subordinating this Lease in accordance with the
foregoing.  Upon the expiration often (10) days
after a formal written notice, Tenant shall be deemed to have appointed
Landlord and Landlord may execute and deliver the required documents for and on
behalf of Tenant.

 

19

 

36.                                 ESTOPPEL AGREEMENTS.  Tenant shall execute an estoppel agreement in
favor of any mortgagee or purchaser of Landlord’s interest herein, within ten (10) days
after requested to do so by Landlord or any such mortgagee or purchaser.  Such estoppel agreement shall be in the form
requested by Landlord or such mortgagee or purchaser.

 

37.                                 CONDOMINIUM CONVERSION.  Tenant acknowledges that Landlord has
informed Tenant that Landlord, at any time in Landlord’s sole discretion, may
by recorded declaration, convert the fee ownership of the Building and the Land
to a condominium in accordance with the provisions of the Pennsylvania Uniform
Condominium Act (the “Act”).  In such
event, the common areas of the Building and the Land shall become Common
Elements and/or Limited Common Elements, as defined in the Act and as
designated by Landlord, and the Common Expenses pertaining thereto (as defined
in the Act), as applicable, shall be included as part of the Premises
Expenses.  Tenant agrees upon demand to
execute such document or documents as may be required by Landlord in connection
with any such condominium conversion.

 

38.                                 NOTICES.  All notices required to be given by either
party to the other shall be in writing All such notices shall be deemed to have
been given upon delivery in person, or upon depositing in the United States
mail, by certified mail, return receipt requested, postage prepaid, or by
delivery by telefax, facsimile or telegraph, or by Federal Express or other
nationally recognized overnight delivery service, addressed to the parties at
the addresses shown in the summary pages al the front of this Lease or to
such other address which either party may hereafter designate in writing by notice
given in a like manner.

 

39.                                 BINDING EFFECT.  All rights and liabilities herein given to,
or imposed upon the respective parties hereto, shall extend to and bind the
several and respective heirs, personal representatives, successors and
permitted assigns of said parties.

 

40.                                 SURVIVAL OF VALID TERMS.  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.

 

41.                                 ENTIRE AGREEMENT.  This Lease and any exhibit, rider or addendum
that may be attached hereto set forth all the promises, agreements, conditions
and understandings between Landlord and Tenant relative to the Premises, and
there are no promises, agreements, conditions or understandings, either oral or
written, between them other than are herein set forth.  Except as herein otherwise provided, no
subsequent alteration, amendment, change or addition to this Lease shall be
binding upon Landlord or Tenant unless reduced to writing and signed by them.

 

42.                                 PROHIBITION AGAINST RECORDING.  This Lease shall not be recorded and any
attempted recording of this Lease shall constitute an Event of Default
hereunder.

 

43.                                 INTERPRETATION.  As used in this Lease and when required by
context, each number (singular or plural) shall include all numbers, and each
gender shall include

 

20

 

all genders.  Time is and shall
be of essence of each term and provision of this Lease.  The term “person” as used herein means
person, firm, association or corporation, as the case may be.  If Tenant is more than one person, all
agreements, conditions, obligations, covenants, warrants of attorney, waivers
and releases made by Tenant shall be joint and several, and shall bind and
affect all persons who are defined as “Tenant” herein.

 

44.                                 LIABILITY OF LANDLORD.  The term “Landlord” as used herein means the
fee owner of the Premises from time to time. 
In the event of the voluntary or involuntary transfer of such ownership
to a successor-in-interest of the Landlord, the Landlord shall be automatically
discharged and relieved of and from all liability and obligations hereunder
which shall thereafter accrue, and Tenant shall look solely to such
successor-in-interest for the performance and obligations of the Landlord
hereunder which shall thereafter accrue. 
The liability of Landlord and its successors-in-interest under or with
respect to this Lease shall be strictly limited to and enforceable solely out
of its or their interest in the Premises and shall not be enforceable out of
any other assets.

 

45.                                 CAPTIONS AND HEADINGS.  The captions and headings of the paragraphs
contained herein are for convenience of reference only and in no way define,
limit, describe, modify or amplify the interpretation, construction or meaning
of any provision of or the scope or intent of this Lease nor in any way affect
this Lease.  All Exhibits are an integral
part of this Lease and are attached hereto,

 

46.                                 NO BROKERAGE COMMISSION.  Landlord and Tenant represent and warrant
that no brokerage commission or similar compensation is due to any party by
reason of this Lease.  Each party hereby
agrees to indemnify and hold the other party harmless from and against any and
all claims, costs, damages, expenses, judgments or liability resulting from any
claim for brokerage commissions or similar compensation made by any party in
connection with this Lease.

 

47.                                 QUIET ENJOYMENT.  Upon Tenant’s compliance with the provisions
of this Lease, including the payment of all rent hereunder, Tenant shall
peaceably hold and enjoy the Premises during the term hereof without hindrance
or interruption by Landlord or any person claiming under Landlord.

 

48.                                 WAIVER OF TRIAL BY JURY.  Each party to this Lease agrees that any
suit, action, or proceeding, whether claim or counterclaim, brought or
instituted by any party hereto or any successor or assign of any party hereto
or with respect to this Lease or which in any way relates, directly or
indirectly, to the Premises or any event, transaction, or occurrence arising
out of or in any way in connection with the Premises, or the dealings of the
parties with respect thereto, shall be tried only by a court and not by a
jury.  EACH PARTY HEREBY EXPRESSLY WAIVES
ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH SUIT, ACTION OR PROCEEDING.  TENANT ACKNOWLEDGES AND AGREES THAT THIS
PARAGRAPH 48 IS A SPECIFIC AND MATERIAL ASPECT TO THIS LEASE BETWEEN THE
PARTIES AND THAT LANDLORD WOULD NOT LEASE THE PREMISES TO THE TENANT IF THIS
WAIVER OF JURY TRIAL SECTION WERE NOT A PART OF THIS LEASE.

 

21

 

49.                                 OWNERS’ ASSOCIATION.  This Lease and all terms and provisions
hereof shall be under and subject, in all respects, to: (a) the
Declaration of Covenants, Easements, Conditions and Restrictions for The Owner’s
Association Of Wyomissing Professional Center, Inc., which is recorded in
the Recorder of Deeds Office of Berks County, Pennsylvania, and (b) the
Articles of Incorporation and the Bylaws of The Owners Association Of
Wyomissing Professional Center, Inc., copies of which are available upon
request Tenant covenants and agrees to comply with the terms of such written
instruments insofar as they pertain to any tenant of the Building and such
tenant’s agents, servants, employees, invitees, and business visitors.

 

TENANT
ACKNOWLEDGES THAT THIS LEASE CONTAINS, AT PARAGRAPHS 28 AND 29 HEREOF,
PROVISIONS FOR THE CONFESSION OF JUDGMENT AGAINST TENANT FOR MONEY AND FOR
POSSESSION OF REAL PROPERTY AND HAS REVIEWED AND UNDERSTANDS THE CONTENTS
THEREOF.

 

IN WITNESS
WHEREOF, the parties hereto, intending to be legally bound to the terms of this
Lease, have caused this Lease to be duly executed this 30th day of June, 2001.

 

THIS
LEASE MUST BE EXECUTED FOR TENANT, IF A CORPORATION, BY THE PRESIDENT OR VICE
PRESIDENT AND ATTESTED BY THE SECRETARY OR ASSISTANT SECRETARY, UNLESS THE
BY-LAWS OR A RESOLUTION OF THE BOARD OF DIRECTORS SHALL OTHERWISE PROVIDE, IN
WHICH EVENT A CERTIFIED COPY OF THE BY-LAWS OR RESOLUTION, AS THE CASE MAY BE,
MUST BE FURNISHED TO LESSOR.

 

	
   

  	
  WYOMISSING
  PROFESSIONAL CENTER II,

  LIMITED PARTNERSHIP, a Pennsylvania limited

  partnership, by its General Partner, WYOMISSING

  PROFESSIONAL, CENTER II, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Stephen
  J. Najarian

  	
   

  
	
   

  	
   

  	
  Stephen J.
  Najarian, President

  
	
   

  	
   

  
	
   

  	
   

  	
  (“Landlord”)

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Susan M. Montgomery

  	
   

  	
  By:

  	
  /s/ Robert S. Ippolito

  	
   

  
	
   

  	
   

  
	
  Name:

  	
    Susan M Montgomery

  	
   

  	
  Name:

  	
  Robert S. Ippolito

  	
   

  
	
   

  	
   

  
	
  Title:

  	
      Asst.  to Chairman

  	
   

  	
  Title:

  	
  Vice President, Secretary and Treasurer

  	
   

  
	
   

  	
   

  
	
   

  	
  Date:

  	
  January 30, 2002

  	
   

  
	
   

  	
   

  
	
   

  	
  (“Tenant”)

  
															

 

22

 

CONSENT

 

INTENDING to be legally bound hereby, The Owners’ Association Of
Wyomissing Professional Center, Inc. (or
The Owners’ Association of Wyomissing Professional Center, Inc. or The
Owner’s Association of Wyomissing Professional Center, West Campus, Inc.)
hereby joins in and consents to the above Lease insofar as any of the above
provisions concern the parking area and any other common areas maintained by
it.

 

	
   

  	
  OWNER’S
  ASSOCIATION OF WYOMISSING PROFESSIONAL CENTER, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Stephen J. Najarian

  	
   

  

 

Exhibits

 

	
  “A” - Leased
  Premises

  
	
   

  
	
  “B” -
  Expense Budget

  
	
   

  
	
  “C” -
  Building Location

  
	
   

  
	
  “D” - Left
  Blank Intentionally

  
	
   

  
	
  “E” - Tenant
  Plans and Specifications

  
	
   

  
	
  “F” -
  Building Common Area

  
	
   

  
	
  “G” - Left
  Blank Intentionally

  

 

 

23

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